MODCOMP Ranked Among Top Providers of Information Technology Products and Services by VARBusiness Magazine

July 30, 1998, Ft. Lauderdale, FL -- MODCOMP, Inc., a subsidiary of CSP Inc. (NASDAQ: CSPI), announced today that the company has been named to the VARBusiness 500, the annual ranking of North America's largest providers of information technology (IT) solutions, published by VARBusiness magazine. The list represents the most successful companies of more than 108,000 value-added resellers (VARs), systems integrators and technology consulting organizations in the United States and Canada. With 1997 revenues of $45 million, MODCOMP was ranked No. 254 on the list.

"Our recognition by this industry leading publication is evidence of MODCOMP's continued efforts to strengthen our businesses through value-added products and services," stated John Clary, President and CEO of MODCOMP. "We are indeed pleased to be recognized as one of the top 500 IT providers as ranked by VARBusiness."

The ranking was published in a July 6, 1998 special issue of VARBusiness after a comprehensive research project in which the editors studied a universe of value-added channel organizations. The list was narrowed to the 500 companies with the greatest revenues coming from the sale of hardware, software and services -- such as consulting, training and programming. The companies on the VARBusiness 500 have aggregate revenue of $155 billion, an indication of the economic power wielded by the leading VARs and integrators.

"Being named to the VARBusiness 500 is a strong measure of success, a distinction that any IT company should be proud of," said Leslie Jeffery, the magazine's publisher. "Listed companies are the leaders in information technology solutions and customer satisfaction and play major roles in setting the direction of the computer industry."

Published twice each month by CMP Media, VARBusiness goes behind the headlines to provide in-depth market intelligence and perspective about the business trends, product and technology issues, and supplier activities impacting value-added resellers of computer products and services. VARBusiness provides a unique blend of information to help VARs manage and grow their businesses and provide solutions to their customers. Visit VARBusiness at http://www.varbusiness.com.

MODCOMP, Inc.
Founded in 1970, MODCOMP supplies high-performance, real-time computer systems, products and services for leading worldwide industrial and government organizations for their real-time applications -- such as government/aerospace, communications, process control and industrial automation. MODCOMP systems operate in exceptionally critical and demanding applications, where reliability and real-time performance are essential.

MODCOMP's host-to-web products provide business-critical solutions for extending the functionality of legacy systems. By integrating standard worldwide web products and technology with existing IT infrastructures, MODCOMP rapidly enables intranet, extranet, Internet, electronic commerce, and business process reengineering applications.

MODCOMP is a wholly-owned subsidiary of CSP Inc., (NASDAQ: CSPI). To learn more about CSP Inc., consult http://www.cspi.com. To learn more about MODCOMP, Inc., consult http://www.modcomp.com.

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

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For more information regarding this press release contact: Ellen Rowley, PH: 954-977-1655, E-mail: rowleye@modcomp.com.