COMPUTATIONAL SYSTEMS, INCORPORATED REPORTS GAINS IN FOURTH QUARTER RESULTS; NET INCOME UP 64% FOR THE YEAR.

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Jan. 29, 1996--Computational Systems, Incorporated (Nasdaq/NM:CSIN) today reported higher sales, net income and net income per share for the fourth quarter and year ended December 31, 1995.

For the year ended December 31, 1995, net sales rose 34% to $41,772,000 compared with net sales of $31,165,000 for 1994. Net income for the year increased 64% to $2,947,000 compared with $1,798,000 for 1994. Net income amounted to $0.72 per share on 4,117,251 weighted average shares outstanding in 1995, compared with $0.51 per share on 3,503,329 weighted average shares outstanding in 1994.

For the fourth quarter, net sales rose 28% to $12,312,000 compared with $9,610,000 for the same period a year ago. Net income rose 41% to $1,431,000, or $0.29 per share on 5,012,481 shares outstanding, compared with net income of $1,015,000, or $0.29 per share on 3,481,650 shares outstanding in the prior-year period.

Commenting on the results, Ronald G. Canada, Chairman and Chief Executive Officer, said, "We are pleased with the results for both the fourth quarter and the full year which reflect our continued success in promoting the Reliability-Based Maintenance(R) concept in our target market worldwide. We are focused on meeting the changing needs of today's marketplace through the continuous development of new and improved products and services. We remain committed to the goal of becoming the leading supplier of predictive maintenance products and services."

Computational Systems, Incorporated designs, produces and markets an integrated family of advanced predictive maintenance products and services for use in large-scale, continuous-run manufacturing facilities. The Company's Reliability-Based Maintenance(R) products and services help customers detect potentially disruptive conditions in the operation of their machinery before damage or complete mechanical failure occurs, thereby allowing maintenance to be scheduled at the most appropriate time. -0-

               COMPUTATIONAL SYSTEMS, INCORPORATED
                  Unaudited Financial Highlights

                                  Three Months Ended December 31,
Operating Highlights:                 1995                 1994
Total sales                       $12,312,484          $ 9,610,642
Net earnings                      $ 1,431,286          $ 1,015,323
Earnings per share                $      0.29          $      0.29
Average shares outstanding          5,012,481            3,481,650

                                       Year Ended December 31,
                                      1995                 1994
Total sales                       $41,772,483          $31,165,277
Net earnings                      $ 2,947,302          $ 1,798,267
Earnings per share                $      0.72          $      0.51
Average shares outstanding          4,117,251            3,503,329

                                  December 31,         December 31,
Balance Sheet Highlights:             1995                 1994
ASSETS
  Current assets                  $23,529,831          $11,461,858
  Property, plant and
   equipment, net                   7,938,241          $ 7,116,238
  Other non-current assets            682,701            1,147,015
    Total assets                  $32,150,773          $19,725,111

LIABILITIES AND SHAREHOLDERS'
 EQUITY
  Current liabilities             $ 7,097,991          $ 9,044,897
  Long-term debt                       13,172            3,457,501
  Deferred revenue                    512,159              352,875
  Total shareholders' equity       24,527,451            6,869,838
    Total liabilities and
     shareholders' equity         $32,150,773          $19,725,111

CONTACT: Computational Systems, Inc., Knoxville

Bryan J. Collier, 423/675-2110