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

BILLERICA, Massachusetts, September 23, 2003 - CSP Inc. (NASDAQ: CSPI) announced today that its MultiComputer Division, a leading supplier of high-performance cluster computing systems, has been awarded a contract from Lockheed Martin [NYSE: LMT] to provide its advanced 2000 SERIES MultiComputer products and technology for use in the next-generation radar in the U.S. Navy’s advanced E-2C Hawkeye aircraft. The System Development and Demonstration (SD&D) contract value is expected to reach approximately $6 million.

As part of the full SD&D phase of the Advanced Hawkeye (AHE) program, Lockheed Martin will license technology from CSPI, and the companies will collaborate on the design and development of ruggedized versions of the CSPI 2000 SERIES MultiComputers.

"I am proud that our most advanced MultiComputer technology has been selected for the SD&D phase of the Advanced Hawkeye program," said Chairman, President and Chief Executive Officer, Alexander R. Lupinetti. "Our participation in the AHE program speaks to the energy, dedication and commitment of each of our employees and the quality of our products. CSPI’s 2000 SERIES MultiComputers deliver high-speed processing and mission-critical performance ideally suited to the U.S. Navy’s exacting specifications. We are excited about teaming with Lockheed Martin on this major program."

Lockheed Martin is leading an AHE team responsible for design and development of the Hawkeye’s next-generation radar, which is slated to replace the current AN/APS-145 airborne radar system by 2010. In the SD&D phase, Lockheed Martin is scheduled to produce five radar systems the Navy will use for qualification, reliability and flight-testing. This is scheduled to be followed by a full-scale production program to outfit all 75 aircraft in the E-2C fleet by 2020 according to the Lockheed Martin press release, dated August 5, 2003.

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 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.

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 contract award and licensing agreement between CSP and Lockheed Martin Systems Integration. The Company cautions that numerous factors could cause actual results to differ materially from any forward-looking statements made by the Company. Such risks include general economic conditions, market factors, competitive factors and pricing pressures, and others described in the Company's filings with the SEC. Please refer to the section on forward-looking statements included in the Company's filings with the Securities and Exchange Commission.