Spectrum Signal Processing Inc.
TSX : SSY
NASDAQ : SSPI

Spectrum Signal Processing Inc.

October 24, 2006 07:00 ET

NASA Selects Spectrum's SDR-4000 for Reconfigurable Transceiver Development and Demonstration of future Space-based Communications

Space Telecommunications Radio System Program launches development of software defined radios STRS Architecture Reference Implementation

COLUMBIA, MARYLAND--(CCNMatthews - Oct. 24, 2006) - Spectrum Signal Processing (USA) Inc., a subsidiary of Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI), today announced that the National Aeronautics and Space Administration (NASA) Glenn Research Center will use Spectrum's flexComm™ SDR-4000 software defined radio (SDR) platform to develop, integrate and demonstrate an implementation of the Space Telecommunications Radio System (STRS) Architecture software on a reconfigurable, multi-function communications platform. The demonstration is scheduled for 2007.

The SDR-4000 will be used to refine the STRS Architecture, which will allow NASA to demonstrate its capabilities and benefits for future missions. Software defined radios offer the potential to reduce radio equipment in space while supporting existing radio links.

"The SDR-4000 is expected to accelerate NASA's development of communications systems for future space-based missions," said Michael Farley, President of Spectrum USA. "In addition, the modular and flexible architecture of our flexComm product portfolio allows NASA to reuse software developed on SDR-3000 based systems in previous NASA programs in the STRS program. This contract positions Spectrum well for future upgrades of NASA's ground-based communications equipment using the STRS Architecture."

The main objectives of the STRS program are to enable advanced operations and reduce mission costs. The STRS Architecture strives to support existing communications needs and capabilities while providing a path to more advanced network connectivity that facilitates scalable, modular, reconfigurable, and upgradeable functionality and features. The STRS plans to achieve this objective by utilizing a lightweight middleware software application, similar to the SCA used in the Joint Tactical Radio System Program (JTRS), but optimized for space-based applications.

Spectrum's SDR-4000 3U CompactPCI®-based rugged platform uses heterogeneous processing to provide high-performance, real-time signal processing for satellite communications and tactical military radios. The platform includes the PRO-4600 software defined radio modem processing engine and the XMC-3321 dual-transceiver input/output mezzanine card. The SDR-4000 also includes Spectrum's quicComm™ hardware abstraction layer and software development library, and a real-time operating system.

For more information on the SDR-4000, please visit www.spectrumsignal.com.

ABOUT SPECTRUM SIGNAL PROCESSING INC.

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.

FORWARD-LOOKING SAFE HARBOUR STATEMENT

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 and quicComm are trademarks of Spectrum Signal Processing Inc. CompactPCI is a registered trademark of the PCI™ Industry Computers Manufacturer's Group. PCI is a trademark of the Peripheral Component Interconnect - Special Interest Group (PCI-SIG). Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

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