Ann Desrochers
CSP Inc. MultiComputer Division
1 (800) 325-3110 ext. 2200
adesroch@cspi.com

BILLERICA, Massachusetts, August 03, 2004 - CSP Inc. (NASDAQ: CSPI) MultiComputer Division, a leading supplier of embedded high-performance cluster computing systems, today announced the release of its FastCluster 2942 blade. Radar, sonar and surveillance signal processing applications will benefit from the superior processing density provided by the 2942. A 9U high chassis, with twenty FastCluster 2942 6U blades, delivers 640 GFLOPS of performance in less than 4 cubic feet with a compute density of 160 GFLOPS per cubic foot. The new 2942 blade is fully compatible with previous FastCluster systems and delivers scalable performance while preserving all the benefits of the FastCluster open systems architecture.

The peak performance of the new FastCluster 2942 blade is double that of the previous generation product, delivering 32 GFLOPS per 6U slot while maintaining a similar power consumption level in order to satisfy the most stringent demands of our defense customers. Designed with four 1 GHz Motorola 7457 high performance, low power, 32-bit PowerPC microprocessors directly on the motherboard, the FastCluster 2942 6U VME blade eliminates the use of mezzanine cards to optimize compute density, airflow and cooling. The 2942 blade includes the standard high availability features of the FastCluster product line with fast booting from a cold start, error-correcting memory, hot-swappable hardware and power on self-test.

The FastCluster 2942 blade’s open systems architecture offers all of the advantages of CSPI's industry standard software development environment based on VxWorks™ or Linux, the ISSPL-ALT and VSIPL math libraries, MPI for interprocessor communication and the high-speed, scalable Myrinet-2000™ cluster interconnect. The release of the FastCluster 2942 blade extends CSPI’s commitment to delivering the products and technology required for 21st century mission critical defense applications.

The new 2942 FastCluster blade is currently in production and available for delivery 60 days after receipt of order (ARO).

More information on the 2942 blade is available in a data sheet on the CSPI web site at http://www.cspi.com/multicomputer/products/2000_SERIES/2942.pdf.

About CSP Inc.

Based in Billerica, Massachusetts and founded in 1968, CSP Inc. (NASDAQ: CSPI) and its subsidiaries develop and market best of breed IT solutions, image-processing software, network management, storage systems and security integration services and high-performance computer systems for commercial, scientific, and defense customers worldwide

The MultiComputer Division helps its customers solve high-performance computing problems in the medical imaging and defense markets by supplying very dense multiprocessing systems with powerful real-time I/O capabilities that require minimal physical space or power. These systems are used in a broad array of applications, including software defined radio, radar, sonar and surveillance signal processing.

For more information about CSP Inc., visit http://www.cspi.com or call us at 1 (800) 325-3110.

‘Safe Harbor Provision’
The Company 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 under the Act. Such forward-looking statements may include, but are not limited to, statements regarding the success of the Company 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 with the Securities and Exchange Commission.