BILLERICA, Massachusetts, August 8, 2006 - CSP Inc., a provider of IT solutions, systems integration services and dense cluster computing systems, today reported a contract award, worth between $17 and $18 million, to provide Raytheon Company with FastCluster 220R systems. Initial system deliveries will begin in late 2006 and continue over the next year.

"This award is the result of working successfully together on a proprietary development program over the last several years and reflects Raytheon's confidence in our ability to meet critical schedules and deliver high quality products," noted William E. Bent, Jr., General Manager and Vice President of CSPI's MultiComputer Division.

The FastCluster 220R system features the compute processing density, rugged packaging, outstanding performance, scalable open architecture and clustering technology required to support sonar, radar, C ommand, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) applications intended for deployment in the harsh and confined environments of shipboard, airborne, and land-mobile platforms.

About Raytheon Company

Raytheon Company (NYSE: RTN), with 2005 sales of $21.9 billion, is an industry leader in defense and government electronics, space, information technology, technical services and special-mission aircraft. With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.

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, systems integration services, and high-performance computer systems. CSP's Systems segment includes the MultiComputer Division, which 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, part of its Service and Systems Integration segment founded in 1970 and which includes the fiscal 2003 acquisition of Technisource, is a leading provider of IT solutions and systems integration services. MODCOMP works with third parties to develop customized solutions in the global IT markets and has offices in the U.S., U.K. and Germany.

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

‘Safe Harbor Provision’
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 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.