Spectrum Signal Processing Inc.

Spectrum Signal Processing Inc.

January 23, 2007 18:13 ET

Spectrum Signal Processing Receives Notice of Nasdaq Delisting-Company to Appeal Delisting Determination

BURNABY, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2007) - Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) today announced that the Company has received a notice dated January 23, 2007, of a Nasdaq Staff Determination citing that the Company is not in compliance with Rule 4310(c)(4) of the Nasdaq Marketplace rules. As a result, the Company's common stock is subject to delisting from the Nasdaq Capital Market effective February 1, 2007 unless the Company appeals Staff's determination to a Nasdaq Listing Qualifications Panel. The Company intends to file an appeal.

As previously reported, the Company was notified on July 26, 2006, that it was not in compliance with the minimum $1.00 closing bid price requirement set forth in Marketplace Rule 4310(c)(4) ("Minimum Bid Price Rule") for continued Nasdaq Capital Market listing. In accordance with Marketplace Rule 4310 (c)(8)(D), the Company was provided with 180 calendar days, or until January 22, 2007, to regain compliance with the Minimum Bid Price Rule. The Company has not regained compliance with the Minimum Bid Price rule and is not eligible for an additional 180-day compliance period given that it does not meet the Nasdaq Capital Market initial inclusion requirements set forth in Marketplace Rule 4310(c).

The Company intends to request an appeal hearing with a Nasdaq Listing Qualifications Panel. A hearing request will stay the delisting of the Company's common stock pending the Panel's decision. The hearing date will be determined by Nasdaq, however, it is expected to occur within 45 calendar days from the date of the Company's request. At the hearing, the Company must provide Nasdaq with a plan to regain compliance with Nasdaq's initial inclusion requirements or Minimum Bid Price Rule. If the Company decides not to appeal the Nasdaq Staff's delisting determination, or if the Panel denies the appeal, the Company's common stock will be delisted from the Nasdaq Capital Market.

If the Company's stock is delisted from the Nasdaq Capital Market, the Company believes that its common stock will be eligible to trade in the United States on the OTC Bulletin Board or in the "Pink Sheets", though any such trading will require one or more market makers to file and have approved an application to register in and quote the Company's common stock.

Spectrum will remain listed with and its shares traded on the Toronto Stock Exchange independent of any delisting determination from the Nasdaq stock market.


Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) is a leading supplier of software defined platforms for defense electronics applications. Spectrum's products and services are optimized for military communications, signals intelligence, surveillance, electronic warfare and satellite communications applications. Spectrum's integrated, application-ready products provide its customers with compelling time-to-market and performance advantages while mitigating program risk and cost parameters. Spectrum Signal Processing (USA) Inc., based in Columbia, MD, provides applications engineering services and modified commercial-off-the-shelf platforms to the US Government, its allies and its prime contractors. For more information on Spectrum and its flexComm product line, please visit www.spectrumsignal.com.


This news release contains forward-looking statements related to sales of the Spectrum Signal Processing Inc. flexComm product line. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, including the timely development and acceptance of Spectrum's new products, the impact of competitive products and pricing, availability of components, changing market conditions and the other risks detailed from time to time in other company filings. Actual results may differ materially from those projected. These forward-looking statements represent the company's judgment as of the date of this release and Spectrum may or may not update these forward-looking statements in the future. Readers are referred to Spectrum's assumptions and risk factors set out in the most current Form 20-F filed with the Securities and Exchange Commission and the British Columbia Securities Commission.

flexComm is a trademark of Spectrum Signal Processing Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

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