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

BILLERICA, Massachusetts, October 26, 2004 - CSP Inc. (NASDAQ: CSPI) MultiComputer Division, a leading supplier of embedded high-performance cluster computing systems, today announced it has shipped FastCluster 2942 blades to Lockheed Martin for the System Development and Demonstration (SD&D) phase of the Advanced Hawkeye (AHE)) program.

The Advanced Hawkeye will have computerized radar, Identification Friend or Foe and electronic surveillance sensors to provide early warning, threat analysis against potentially hostile air and surface targets. The AHE team will use the FastCluster 2942 blades in their next generation radar, which will begin to replace the current AN/APS-145 airborne radar in 2010. During the SD&D phase the Navy will use five radar systems for qualification, reliability and flight-testing.

The FastCluster 2942 blade was selected for this program because of the outstanding performance provided by the system design. Utilizing a 1 GHz Motorola 7457 high performance, low power, 32-bit PowerPC microprocessor with a full 128-bit implementation of AltiVec™ technology and a 1 GB memory subsystem the blade delivers 32 GFLOPS of computational power, twice that of previous generation FastCluster products. Maintaining a compact 6U VME footprint, the FastCluster 2942 blade is designed with four processors directly on the motherboard, eliminating mezzanines, in order to maximize airflow and cooling. This dense packaging is ideal for space conscious military applications. In collaboration with Lockheed Martin, CSPI will produce a rugged version of this product to meet the environmental conditions required for airborne radar.

Available with a choice of system software the FastCluster 2942 blade can be configured to take advantage of the open source Linux operating system complete with GNU toolkit or the industry standard VxWorks™ real-time operating system and the Tornado II development tools suite. Both software environments include CSPI’s highly optimized ISSPL-ALT and VSIPL math libraries and the Message Passing Interface (MPI) library for interprocessor communications. The FastCluster software environment promotes cross-platform compatibility as well as the design of portable code for rapid development and improved time to deployment. "Supporting a design strategy that draws upon open source software, conformance to standards and enabling technologies is key to reducing the cost of ownership for our defense customers", stated William E. Bent, Jr., General Manager and Vice President of CSPI MultiComputer Division.

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

More information on the FastCluster 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 Lockheed Martin

Headquartered in Bethesda, MD, Lockheed Martin employs about 125,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services.

About CSP Inc.

Based in Billerica, Massachusetts, 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.