CSPIE Csp Inc. (MM)

BILLERICA, Mass., Feb. 10 /PRNewswire-FirstCall/ -- CSP Inc. (NASDAQ:CSPIE), a provider of IT Solutions, systems integration services and dense cluster computing systems, announced that on February 7, 2006, the Company determined that its audited financial statements for the fiscal years ended September 30, 2004 and 2003 (the "Relevant Years") should be restated for certain amounts that were incorrectly classified in the consolidated statements of cash flows. Pending the finalization of the restatements of the consolidated statements of cash flows for the Relevant Years, the previously issued consolidated financial statements for these periods should not be relied upon. The Company is also assessing potential restatement of the statement of cash flows for the 2005 and 2004 quarters. The restatements are expected to affect the subtotals of cash flows from operating and investing activities and the effects of exchange rates on cash. They are not expected to have any impact on the net increase (decrease) in cash and cash equivalents. The restatements are also expected not to have any effect on previously reported net income (loss), earnings per share or the consolidated balance sheets. For more information on the restatement, please refer to our Current Report on Form 8-K filed today. The Company plans to file the applicable restated financial statements as soon as practicable. This process has delayed the filing of the Company's Form 10-K annual report for its fiscal year ended September 30, 2005. When the Company is able to determine the filing date for its Form 10-K, the Company will make a further announcement. About CSP Inc. Based in Billerica, Massachusetts, and founded in 1968, CSP Inc. (NASDAQ:CSPIE) and its subsidiaries develop and market best-of-breed IT solutions, image processing software, systems integration services, and high- performance computer systems. Its 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, also part of its Service and System Integration segment, was 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. More information about CSP is available on the Company's website at http://www.cspi.com/. To learn more about MODCOMP, Inc., please consult http://www.modcomp.com/. Contact: Gary Levine, CFO 978-663-7598 x1200 First Call Analyst: FCMN Contact: DATASOURCE: CSP Inc. CONTACT: Gary Levine, CFO of CSP Inc., +1-978-663-7598 ext. 1200 Web site: http://www.cspi.com/

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