Blue Wave Systems Appoints New Chief Operating Officer.

Business Editors & High Tech Writers

CARROLLTON, Texas--(BUSINESS WIRE)--Aug. 9, 2000

Blue Wave Systems Inc. (NASDAQ:BWSI), has appointed Malcolm Brownsell as Chief Operating Officer as the company gears up for a number of key telecom industry design wins to move into production. He brings a track record of success with blue-chip electronics and IT companies to Blue Wave and will be responsible for Support Services, Engineering, IT and Operations across the company's worldwide business. Malcolm will report directly to Rob Shaddock, Chief Executive Officer.

Malcolm joins Blue Wave Systems from his position as Operations Director for Flextronics International, a leading Electronics Manufacturing Services provider, where he was responsible for on-site business strategy and development. Previously, he was Manufacturing Director for Psion Computing Ltd, part of Psion plc. In this role, he significantly improved the company's operations and planning processes and implemented strategies to reduce new product introduction times.

Bringing over 20 years of experience to Blue Wave, Malcolm has previously held senior positions with Sun Microsystems - which he joined after it acquired IMP, a leading manufacturer of mission-critical computers used in specialized markets, including the telecom industry - and Welwyn Systems Ltd, a subsidiary of the TT Group.

Commenting on the appointment, Rob Shaddock, CEO of Blue Wave Systems said: "Malcolm will strengthen the Blue Wave team as we move into a very exciting period of growth and development. Our transition into one of the leading suppliers of communications processing solutions for the telecom industry is well under way as we prepare to boost production to meet the demand for our cutting-edge technology."

Malcolm Brownsell has a B.Sc. in Physics/Physical Electronics from the University of Northumbria and an MBA from Durham University.

Blue Wave Systems is a leading supplier of high-channel Digital Signal Processing (DSP) subsystems used in telecommunication infrastructure equipment, such as voice over packet (VoIP) gateways, digital wireless communications and intelligent peripherals. The ComStruct(TM) line of telecom infrastructure communication processing subsystems was launched in January 1999. At the heart of the ComStruct(TM) line is the company's FACT(TM) software (Framework Architecture for Communication Technologies), which enables the DSP subsystem to be rapidly and effectively deployed in a variety of carrier class telecom applications. Blue Wave Systems has been a market leader in DSP board-level products since 1983. For additional information, please visit our company's web site at www.bluews.com.

ComStruct is a trademark of Blue Wave Systems Inc.

All other names and trademarks are the property of their respective owners.

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.