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Ann Desrochers
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Computing Devices Canada Selects The CSPI MultiComputer 2000 SERIES System for Hydra Project

Architecture, Product Roadmap, and Integrated System Solution Drive 2000 SERIES Win

BILLERICA, Massachusetts, October 13, 1998, -- CSP Inc. (NASDAQ:CSPI) MultiComputer Division, a leading provider of high-performance signal processing system solutions, announced that Computing Devices Canada Ltd. (CDC), a General Dynamics Company (NYSE:GD), has selected the 2000 SERIES system as the DSP component of the sonar signal processor for CDC's Hydra Program. The selection of the 2000 SERIES by CDC is another major design win from within the international defense community.

An International Defense Application Win
The Hydra Program, an integrated coastal sonar defense system requiring very high-performance computation, was recently awarded to Computing Devices Canada by FMV, the Swedish Defense Materiel Administration. Initial Hydra sonar systems will be incorporated into the Swedish Navy's Visby class ships, and fitted as an upgrade to four of the existing Göteborg class ships.

"2000 SERIES system solutions are now being applied to many different computation problems globally," stated Alex Lupinetti, CSP Inc. President, CEO & Chairman of the Board. "The Hydra Program application clearly shows how the performance and scalability characteristics of our MultiComputer Systems architecture provides our domestic and international defense customers with an unmatched solution for their compute-intensive problems."

A Long-Term Program
The initial Hydra design will utilize a single 2000 SERIES platform to handle current and future operational sonar signal processing requirements. When operationally deployed over the next several years Hydra systems will incorporate scores of 2641 MultiComputers interconnected by Myrinet networking technology. Each 2641 MultiComputer is equipped with four 300 MHz PowerPCs capable of processing signals at a rate over 2.4 GFLOPS.

CSPI's 2000 SERIES provides CDC an integrated system solution based on an architecture designed for continuous insertion of new technology. It offers application developers an easy upgrade path for continuous improvement in computation, power and communication speed.

About 2000 SERIES systems
The 2000 SERIES is a family of high-performance multicomputer systems, designed for use in a variety of compute-intensive applications, including radar, sonar, simulation and surveillance signal processing. 2000 SERIES systems use the Myrinet networking technology, Message Passing Interface (MPI) software for interprocessor communications, and the VxWorks real-time operating system. Computational nodes based upon PowerPCs and SHARCs provide a heterogeneous processor architecture.

Within 2000 SERIES systems, all processors and I/O devices communicate with each other over Myrinet, whether on boards, between boards or between chassis. It offers a combination of scalable, high-performance computing to 100s of GFlops and provides high-speed, system-wide communication to tens of GigaBytes/sec in an uniform, open software/hardware architecture. The 2000 SERIES is based on a two-level multicomputer, which provides a dual functionality on each of the processing nodes, a powerful compute node and an independent network node based on the high-speed Myrinet technology. This provides users with a system where the processing power scales linearly with the processor connectivity, alleviating the bottlenecks found in other high-performance computers. Software for the 2000 SERIES systems is based upon the industry-standard TORNADO development tools, the ISSPL math library, and industry-standard MPI library.

About CSPI's MultiComputer Division
With decades of application experience, CSPI understands the needs of high-performance computing and real-time I/O applications. Application expertise, product innovation, technical support and proven dedication to customer support make CSPI the industry's premier provider of high-performance computing systems. The CSPI MultiComputer Division helps customers solve high-performance computing problems by supplying multiprocessing systems with powerful real-time I/O capabilities that require minimum physical space or power. The Company's unique commitments to open system designs, seamless upgradability of software and superior scalable multiprocessing architectures provide unparalleled price performance products that are needed to solve complex real-time problems.

About CSP Inc.
CSP Inc. (NASDAQ:CSPI) was founded in 1968 with specific strengths in digital signal processing and in the design and manufacture of high-performance multiprocessing systems for real-time applications in defense and commercial markets. CSP Inc. also serves the material handling industry with its product line of over-the-belt bar-code readers. Scanalytics Inc., a wholly owned subsidiary of CSP Inc., is focused on hardware and software products for scientific imaging. MODCOMP Inc., a wholly owned subsidiary of CSP Inc., integrates and sells real-time process control systems, Internet software solutions, systems integration, and network services.

About Computing Devices Canada LTD
CDC has a global reputation for delivering innovative and high value systems, software and hardware to industry and the armed forces of over 20 countries, from NATO to the Pacific Rim. Throughout its 50-year history, the company has produced a number of world firsts and exciting technological breakthroughs including the world's first digital fire control system, leading militarized Electroluminescent Flat Panel displays and MESHnet-a state-of-the-art, integrated, secure tactical communications technology. Computing Devices Canada is a wholly-owned subsidiary of General Dynamics of Falls Church, Virginia. Computing Devices Canada employs over 1,400 people with revenues of $405 M. CDC is a defense company with a broad range of products in surveillance, underwater acoustics, flat panel displays, communications, command and control, and combat electronics.

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 statements under the Act. Such forward-looking statements may include, but are not limited to, statements regarding the liquidity of the Company's Common Stock, 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 dated November 26, 1997 with the Securities and Exchange Commission.

To learn more about CSP Inc., consult www.cspi.com

To learn more about Computing Devices Canada, consult www.gdcanada.com