Smith has advised the Board that his increasingly demanding business travel schedule has forced him to curtail his outside board commitments. Smith holds the position of president, international therapeutics, at Genzyme Therapeutics International and has been a member of the CSP Board since 1993. CSP Chairman, President and Chief Executive Officer Alexander R. Lupinetti said, "In view of his many years of outstanding service and wise counsel, the Board of Directors has accepted Sandford Smith's resignation with regret. We extend Sandy our thanks and our best wishes for the future."

About CSP Inc.
Based in Billerica, Massachusetts and founded in 1968, CSP Inc. (NASDAQ:CSPI) and its subsidiaries develop and market Internet software for e-commerce solutions, image processing software, network management integration services, and high-performance computer systems. The MultiComputer Division supplies high-performance Linux cluster systems for a broad array of defense applications, including radar, sonar and surveillance signal processing. The Company's MODCOMP, Inc. subsidiary, founded in 1970, is a leading provider of Internet software solutions and systems integration. MODCOMP works with third parties to develop customized application solutions in the global e-commerce markets and has offices in the U.S., U.K., and Germany.

More information about CSP is available on the company's Web site at www.cspi.com

To learn more about MODCOMP, Inc., consult www.modcomp.com

More information about Scanalytics, Inc., is available at www.scanalytics.com