PADUCAH, Ky. (July 2, 2008) -- Computer Services, Inc. (CSI)
(OTCQX: CSVI) today reported record revenues and net income for the first quarter ended May 31, 2008.

First quarter revenues rose 4.1% to $35.7 million in fiscal 2009 compared with $34.3 million in the first quarter of fiscal 2008. Net income rose 5.2% to $4.5 million, and net income per diluted share increased 7.8% to $0.55 compared with the prior year.

"CSI's record results reflected higher sales from CSI Data Services, ATTUS Technologies, McCoy Myers and Heartland Communications," stated President and Chief Executive Officer Steven A. Powless. "We also experienced growth in margins due to improved
product mix that benefited net income. The acquisitions completed over the past few years have significantly expanded our client base and have been major contributors to our growth in sales and margins."

First Quarter Results

First quarter consolidated revenues rose 4.1% to $35.7 million compared with $34.3 million for the first quarter ended May 31, 2007.
Processing revenues increased 1.8% to $25.3 million compared with $24.9 million in the first quarter of last year. Other revenues rose 9.9% to $10.4 million in the first quarter of fiscal 2009 compared with $9.5 million in the same quarter of fiscal 2008.

"Our outlook for fiscal 2009 is for revenue growth to slow in the near future as many banks take a more cautious outlook on IT
spending," continued Mr. Powless. "We believe CSI will be insulated somewhat from a softening economy by our long-term data processing contracts that account for the majority of our revenues. In addition,
we expect that our expanded suite of products and services acquired over the past few years have diversified our revenue base and will provide CSI with some resiliency in a soft market."

First quarter operating income rose 7.5% to $7.4 million compared with $6.9 million in the first quarter of the prior year. Operating margin improved in the first quarter to 24.0% compared with 23.6% in
the first quarter of fiscal 2008. The increase in operating income and margin benefited from higher sales and improved product mix.

Net income rose 5.2% to $4.5 million in the first quarter of fiscal 2009 compared with $4.2 million in the prior-year period. Net
income per fully diluted share increased 7.8% to $0.55 compared with $0.51 in the same quarter last year.

"CSI's cash position rose to $4.1 million at May 31, 2008, up from $2.2 million at February 29, 2008," continued Mr. Powless. "We continue to benefit from strong cash flow from operations. During the
first fiscal quarter, we used cash to pay down long-term debt, increase our cash dividend and repurchase CSI stock. We bought 93,485 shares of CSI stock for a total of $3.0 million during the first fiscal quarter. In addition, we purchased $3.2 million in software and equipment, up from $1.1 million in the same quarter of last year."