Spectrum Signal Processing Inc.
TSX : SSY
NASDAQ : SSPI

Spectrum Signal Processing Inc.

September 14, 2005 09:30 ET

Spectrum Signal Processing Enters Tactical Military Communications Agreement with General Dynamics Canada

BURNABY, BRITISH COLUMBIA--(CCNMatthews - Sept. 14, 2005) - Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) -

Agreement is Spectrum's second tactical MILCOM radio upgrade announcement in recent months

Spectrum Signal Processing Inc. today announced that it has entered into an agreement with General Dynamics Canada, a recognized leader in the provision of tactical communication systems to Allied and select international markets. Under this agreement, Spectrum will supply Software-Defined Radio (SDR) technology and assist General Dynamics Canada in the development and demonstration of enhanced tactical military communication solutions. Ultimately, Spectrum's SDR technology will be used to enhance the flexibility, interoperability and performance of the General Dynamics Canada MESHnet® family of tactical communication products.

By incorporating SDR technology, General Dynamics Canada will provide its customers with enhanced wireless data connectivity capacity and improved mobility. "By investigating advanced technologies like SDR, and integrating them into our MESHnet product family, we enable our customers to keep abreast of the latest advances in tactical digital communications," stated David Dean, Vice President of General Dynamics Canada C3ISS Business. "In particular, we are using SDR capabilities to enhance coalition interoperability between legacy and emerging voice and data systems."

"We have made a significant investment in our software defined radio products including our next generation tactical MILCOM modem," stated Pascal Spothelfer, Spectrum's President and CEO. "Our relationship with General Dynamics Canada is a very important milestone for the company as we target tactical deployment opportunities."

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 application 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. Although Spectrum has received orders for shipping flexComm product, development delays and customer issues could delay shipments. 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.

® MESHnet is a registered trademark of General Dynamics Canada

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