COMPUTATIONAL SYSTEMS, INC. REVIEWS ANTICIPATED SECOND QUARTER RESULTS.

KNOXVILLE, Tenn.--(BUSINESS WIRE)--June 2, 1997--Computational Systems, Inc. (Nasdaq/NM:CSIN) announced certain anticipated second quarter results given its level of sales in the first two months of the quarter. CSI Chairman and Chief Executive Officer Ron Canada said, "We anticipate that CSI's second quarter sales and earnings will be adversely affected by the level of sales in the first two months of the quarter and current levels of bookings for the remainder of the quarter. Sales have been negatively impacted by weaker than anticipated business levels in the international arena and the domestic activities of two divisions; M&D and MachineView."

Mr. Canada continued, "Although we anticipate that our level of sales will exceed revenues in the second quarter of last year, the level of sales and earnings will not meet analysts' consensus estimates for the quarter. We have incurred significant costs to support the expansion of our business, and the shortfall in sales this quarter will affect the Company's results of operations. We do expect the Company to be slightly profitable for the second quarter."

Mr. Canada continued, "While we are disappointed with the results of the second quarter to date, we are taking certain actions immediately to improve the anticipated results. First, we are taking immediate steps to reduce expenses. We will today reduce our staff by approximately 10% and take certain other steps to reduce general and administrative expense. In addition, we are refocusing our marketing efforts both internationally and domestically. We have taken steps in the past few weeks to build a stronger international team. This team is now working with our distributors in 44 countries to immediately reaccelerate sales growth as well as putting in place the structural changes which will allow CSI to fully leverage its international potential. For MachineView, we are concentrating on exploiting niche opportunities which are already well underway, while developing the new product line which eventually will enable the division to better serve its entire market. Finally, we are positioning the M&D unit to successfully leverage Reliability Based Maintenance consulting opportunities beyond its traditional electric utilities market.

"We are confident that these steps and the planned new product introductions will provide CSI the opportunity to improve its results of operations in coming quarters. We remain excited about our products and services and remain committed to expanding our customer base."

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by CSI with the Securities and Exchange Commission, including its Annual Report on Form 10-K.

CONTACT: Computational Systems, Inc., Knoxville

Bryan Collier, 423/675-2110