Spectrum Signal Processing Inc.
TSX : SSY
NASDAQ : SSPI

Spectrum Signal Processing Inc.

July 14, 2005 07:00 ET

Spectrum Signal Processing and General Dynamics to Introduce Upgraded Modem for U.S. Navy Digital Modular Radios, or DMR

COLUMBIA, MARYLAND--(CCNMatthews - July 14, 2005) - Spectrum Signal Processing (USA) Inc. (TSX:SSY)(NASDAQ:SSPI) and General Dynamics C4 Systems, a business unit of General Dynamics (NYSE:GD), announced today that the companies will introduce and market an upgraded wideband modem for the U.S. Navy's AN/USC-61(C) Digital Modular Radio (DMR). The upgrade will allow the DMR, a software-defined radio, to host new wideband Joint Tactical Radio System (JTRS) waveforms, in addition to the existing range of waveforms supported.

The upgraded modem, which was demonstrated to the Navy in late 2004, will enable advanced communications capabilities consistent with JTRS requirements using cost-effective, commercial-off-the-shelf (COTS) technology. General Dynamics has shipped approximately 300 software-defined radios, each with four channels, to the Navy to be installed on ships, submarines, shore sites, and test facilities. The new modem capability will permit the hosting of high-speed networking waveforms to operate over multiple channels on the DMR platform.

"This wideband modem upgrade will now complete the picture by enabling true wideband networking capability," said Chris Brady, Vice President of Assured Communication Systems for General Dynamics C4 Systems. "In fielding the software-defined Digital Modular Radio to the Navy, General Dynamics has already delivered many of the challenging capabilities required for certification by JTRS."

Spectrum USA will supply advanced modem technology that General Dynamics will integrate on the DMR platform. Spectrum USA and General Dynamics have successfully collaborated on a number of projects for military communications and signals intelligence.

James P. Atkins, President of Spectrum USA, said, "By leveraging our combined expertise in software defined radios, the General Dynamics-Spectrum USA team will shorten the development cycle to quickly bring new and robust functionality to Navy communications."

The DMR system is a National Security Agency-certified software defined radio that currently features some JTRS capabilities such as expanded frequency range, multiple software-defined waveforms, multiple independent level security, advanced software and has completed UHF SATCOM waveform conformance testing at Joint Interoperability Test Command (JITC). The system can be used to replace multiple existing radios with a single, easy-to-use system; on certain Navy platforms, it can reduce equipment space requirements by more than 50 percent.

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.

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