Union Investment Utilizes MODCOMP Integration Solution To Streamline Data Operations

Multinational Investment Group Provides Local Data Access While Maintaining Compliance with Strict Data Security Regulations

FORT LAUDERDALE, Fla., and COLOGNE, Germany, October 8, 2002 -- MODCOMP®, Inc. (www.modcomp.com), a leading architect of legacy extension solutions and a subsidiary of CSP Inc. (NASDAQ: CSPI), ), announced today that its German subsidiary Modular Computer Systems, GMBH has installed a new centralized data management application for Union Investment Group. Utilizing a customized ViewMax® integration solution, the fund management group will realize dramatic long term cost reductions while maintaining data security and a consistent interface for its data specialists throughout Europe.

Strict international financial data security regulations prohibit the use of non-anonymous customer data outside national boundaries, and these regulations previously required Union Investment to maintain separate regional data centers in each of its seven European offices. By utilizing the ViewMax legacy integration engine, TN3270 emulators, and advanced dynamic data filtering techniques to ensure the data is anonymous when being transported across borders, MODCOMP developed a centralized data center solution that enables Union Investment to streamline operations, reduce costs and standardize its IT systems and inventory - while staying in accordance with local and international regulations.

Utilizing PC-based TN3270 emulators, Union Investment operators gain access to data through an interface that is virtually identically to the terminals with which they are accustomed. Behind the scenes, the ViewMax legacy integration engine manages each session with the centralized data repository, limiting access for each data specialist to local records only.

This UNIX server -based solution has eliminated the need for complex regional databases and affords Union Investment all the benefits of centralized data management including: cost reduction, system and data standardization, streamlined operations, and improved management reporting. The use of TN3270 emulators as the interface eliminates any need for new training the company's data operators throughout Europe.

"No one else could provide a solution that met all our requirements," said Markus Weller, Union Investment project leader. " MODCOMP's cooperation was excellent, especially during critical phases of development, problems were met head-on with constructive solutions quickly implement by MODCOMP's skilled engineers."

"Every company has a unique set of challenges," said Alexander R. Lupinetti, president and CEO of MODCOMP, Inc. "MODCOMP thrives on creating practical solutions that leverage the re-use of our customers' existing technology to produce a rapid return on investment. We believe that this approach is applicable to Financial Services firms throughout Europe."

About Union Investment
Founded in 1956, today the Union Investment Group is Germany's third largest investment group, with asset funds of about 100 billion Euro at end of June 2002. Union Investment manages mutual funds and restricted funds. The mutual fund palette contains share-, pension-, finance market- and mixed bonds and real estate investment trusts as well as open real estate investment trusts. Investors get these products in Germany at all Volksbanks, Raiffeisenbanks, Sparda-Banks and PSD-Banks.

Besides investment funds the Union Investment Group also offers depot services that are used by over three and a half million investors throughout Europe. There are subsidiaries or branch offices in Hamburg as well as outside Germany in Luxembourg, Zurich, Madrid, Milan, Rome, Warsaw and Budapest.

About MODCOMP, Inc.
MODCOMP, Inc., is an international leader in eCommerce integration software and services. For over 30 years, MODCOMP has consistently helped its customers utilize emerging technologies to further mission critical business objectives. The company’s eCommerce division is committed to helping its customers take full advantage of rapidly emerging eBusiness and mBusiness opportunities. MODCOMP combines its ViewMax® integration software with its consulting and support services to help clients leverage and extend their existing information technology investments to the Web and beyond. A subsidiary of CSP, Inc., MODCOMP, Inc. is headquartered in Ft. Lauderdale, FL and has offices in the U.S., U.K., and Germany. For more information about the company and its products and services, phone MODCOMP headquarters at (800) 322-3287, email info@modcomp.com, or visit MODCOMP on the Web at www.modcomp.com.

About CSP Inc.
Based in Billerica, Mass., CSP Inc. (CSPI) and its subsidiaries develop and market software for eCommerce solutions and image processing, network management and storage system integration services and high performance computer systems. For more information about CSP Inc., call (800) 325-3110 or visit http://www.cspi.com.

CSP Inc. wishes to take advantage of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking statements under the Act. Such forward-looking statements may include, but are not limited to, statements regarding the success of the Company and its subsidiaries' products and services. The Company cautions that numerous factors could cause actual results to differ materially from any forward-looking statements made by the Company. Please refer to the section on forward-looking statements included in the Company's Form 10-K dated November 27, 2001, with the Securities and Exchange Commission.

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Note to Editors: MODCOMP and ViewMax are registered trademarks of MODCOMP, Inc. All product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

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MODCOMP, Inc. contact: Robert Crigler, (678) 417-1731, crigler@modcomp.com

Press contact: Michelle Peloquin Riess, (408) 230-2268, michelle.riess@attbi.com