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

Second Straight Year of Recognition

June 18, 1999, Ft. Lauderdale, FL -- For the second straight year, MODCOMP, Inc., a subsidiary of CSP Inc. (NASDAQ: CSPI), 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 95,700 network/system integrators, value-added resellers (VARs), software developers, value-added dealers, corporate resellers and IT consultants in the United States and Canada. With 1998 revenues of $50 million, MODCOMP was ranked No. 298 on the list.

The ranking was published in a June 14, 1999 special issue of VARBusiness. This year's analysis also evaluates the expanding options that VARs have for funding growth, profiles integrators that are tackling the small and midsize business market and explores how the industry is redefining outsourcing. The companies on the VARBusiness 500 have aggregate revenue of $191 billion, up 24% from last year, an indication of the economic power wielded by the leading VARs and integrators.

Mark Kindley, the magazine's editor, who spearheads the annual compilation, noted that the cumulative sales of the 500 companies would rank first on the Fortune 500, eclipsing General Motors by a margin of $30 billion. "You had to be even larger to make the VARBusiness 500 this year." The entire industry looks to these companies to set the direction, Kindley added. "Everyone aspires to be on this list, regardless of size."

VARBusiness, the channel's leading magazine, goes behind the headlines, looking to provide perspective, in-depth analysis, proprietary researcgh and tools to help resellers and solution sproviders grow their business. The American Business Press recently ohnored VARBusiness with a prestigious 1999 Jesse H. Neal Editorial Achievement Award. 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.

CSP, Inc.
Based in Billerica, Massachusetts, CSP Inc., and its subsidiaries develop and market Internet software for e-commerce, image processing software and systems, systems integration and network management outsourcing, and high performance computer systems.

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 future growth of CSP Inc., and the success of the Company's and its subsidiary's 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 filed November 25, 1998 with the Securities and Exchange Commission.

To learn more about CSP Inc., consult www.cspi.com.
To learn more about MODCOMP, Inc., consult www.modcomp.com.
To learn more about Scanalytics, Inc., consult www.scanalytics.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.

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