Blue Wave Systems' ComStruct Line Selected by Tekelec for Wireless Test Platform; FACT Software Provides Time-To-Market Advantage For New Mobile Standard.

CARROLLTON, Texas--(BUSINESS WIRE)--Dec. 15, 1999--

Blue Wave Systems Inc. (NASDAQ: BWSI) announced today that Tekelec (NASDAQ: TKLC) will integrate the ComStruct(TM) CPCI/C6400 DSP board and FACT(TM) software framework into its next-generation test platform. The FACT framework has been enhanced with General Packet Radio Service (GPRS) functionality specifically for the Tekelec test platform, the MGTS i3000(TM), to provide a complete diagnostic system for the converging mobile network.

Earlier this year Tekelec selected Blue Wave's CPCI/C6400 board running FACT for use in the MGTS i3000 to test Wideband-CDMA applications. In providing GPRS functionality to FACT, Blue Wave has demonstrated its continued support for Tekelec by embracing new technology requirements.

Tekelec recently announced that the MGTS i3000 test platform had been selected by Alcatel to provide GPRS test capability for next-generation mobile technologies (www.tekelec.com/news/). This announcement closely followed Tekelec being named by Fortune magazine as the 24th fastest-growing company in the United States.

"Competition to develop voice and data convergence network products requires reliability and time-to-market advantages," explained Danny Parker, vice president and general manager of Tekelec's Intelligent Network Diagnostics division. "We believe that the flexibility of Blue Wave's FACT(TM) software and the associated professional services, combined with the advanced architecture of the MGTS i3000, gives us a significant time-to-market advantage. It allows us to accommodate a variety of telecom applications and the new GPRS test requirements."

Tekelec will employ Blue Wave Systems' ComStruct CPCI/C6400 DSP boards running specific FACT(TM) GPRS algorithms for customer testing in Q1 2000. Tekelec also anticipates first production units to ship in Q1 2000.

Kevin Parslow, vice president of sales and marketing for Blue Wave Systems, explained the significance of Blue Wave's role in helping to provide this next-generation mobile technologies solution. "To be able to offer continued support to Tekelec shows how our ComStruct line, designed with flexibility in mind, has again proven to meet the requirements of wireless equipment providers. As the convergence market continues to emerge, I believe we can experience even more success. We look forward to strengthening our relationship with Tekelec as the MGTS i3000 takes hold in the telecom market."

As part of Blue Wave's ComStruct line of building blocks for communications processing, the CPCI/C6400 board and FACT framework offer a cost-effective, flexible, and scalable DSP solution. Optimized for multi-channel processing, the CPCI/C6400 board provides up to four Texas Instruments TMS320C6201 (C6000) processors in a single slot. FACT, supporting a range of operating systems, allows customers to easily incorporate commercially available or proprietary algorithms into a multiple board installation in time scales shorter than ever before. FACT is available for rapid development and full deployment of multi-channel telecom infrastructures.

Blue Wave Systems

Blue Wave Systems dedicates itself to providing powerful, flexible digital signal processing solutions for communications applications. Blue Wave designs, develops and sells embedded DSP computers for a variety of industries, with a strategic focus on telecommunications. Headquartered in Dallas, Texas, and with offices worldwide, Blue Wave provides DSP solutions to more than one-half of the world's top 40 companies. Products include ComStruct(TM) building blocks for communications processing, a family of DSP-based hardware and software components, including FACT(TM), Framework Architecture for Communications Technology. For additional information, please visit our web site at www.bluews.com.

ComStruct and FACT are trademarks of Blue Wave Systems Inc.

Tekelec

Tekelec, a leading supplier of signaling and control systems, develops innovative network switching and diagnostic solutions that enable the convergence of traditional and converged wireline, wireless and IP voice and data communications networks. The company also provides products and solutions for call centers and other telecommunications markets. Tekelec has its headquarters in Calabasas, California, and divisions in Morrisville, North Carolina, and Richardson, Texas. For more information, please visit www.tekelec.com. The Tekelec logo is a registered trademark of Tekelec, and MGTS i3000 is a trademark of Tekelec.

MGTS i3000 supports GPRS testing for GSM equipment vendors and operators. With GPRS, operators can offer data services without completely upgrading existing networks. The MGTS i3000 supports testing of GPRS interfaces as well as protocol layers and complete stacks.

This press release contains forward-looking statements which are based on expectations of the Company but involve a number of risks and uncertainties, including, but not limited to, technological change, quarterly fluctuations, integration of Mizar and Loughborough Sound Images, dependence on the defense industry, dependence on key suppliers and employees, competition, and Year 2000 compliance. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise forward-looking statements to reflect unanticipated events. For a further explanation of risk factors please see the Company's most recent SEC filings. The Company further cautions users who may utilize published bookings and backlog information as tools to forecast the company's revenue during a given timeframe since certain purchase orders may be subject to 1) cancellation and, 2) revision to delivery schedules.