Blue Wave Systems Communications Processing Products to be Used in Next Generation Digital Cellular Systems.

CARROLLTON, Texas--(BUSINESS WIRE)--June 22, 1999--

Major Telecommunications Company Places Additional Orders

for Blue Wave's ComStruct(TM) Processing Product

Blue Wave Systems Inc. (NASDAQ/NMS:BWSI) announced today that it recently received additional orders from a major international telecommunications customer for its ComStruct(TM) Communications Processing products to be used in next generation cellular systems. To date, Blue Wave's total orders from this major telecommunications company amount to $500,000. Further orders are expected in the coming months as initial systems deployment continues.

The ComStruct(TM) product line, introduced in January 1999, is designed to meet the needs of manufacturers creating the next generation of high-density communications equipment. Consisting of a range of hardware modules and the FACT(TM) software infrastructure, it is one of the few commercial, off-the-shelf product lines that is capable of meeting the processing requirements of next generation wireless infrastructure equipment. The same customer is also using the FACT(TM) software infrastructure to rapidly integrate in-house developed signal processing algorithms into the ComStruct(TM) product, enabling them to deploy initial systems ahead of their competitors.

Rob Shaddock, executive vice president of Blue Wave Systems, commented, "We view these additional orders from this very prestigious telecommunications leader as a significant endorsement of Blue Wave's technology. ComStruct(TM) is particularly popular with wireless equipment manufacturers as they race to develop the next generation cellular systems or upgrade existing systems. In addition, our product capabilities continue to expand as we integrate new functionality to address other telecommunications applications. As a result, Blue Wave Systems is becoming increasingly recognized as an important supplier of telecommunications technology."

About ComStruct(TM)

ComStruct offers system builders a faster route to market for the new generation of high channel count telecommunication systems. The products are based on established open standards and are fully customizable, flexible and upgradeable in the network. ComStruct is ideal for voice over IP, voice recording and archival, transcoding in wireless systems, and many more feature-enriched services. ComStruct is comprised of three principal building blocks: the DSP and I/O hardware, FACT(TM) (Framework Architecture for Communication Technologies) system management software, and application specific DSP algorithms. The DSP hardware platforms are formed from dedicated telecoms PCI, Compact PCI (CPCI), and VME DSP boards based on Texas Instruments' advanced C6000 range of fixed and floating-point DSPs. Overseeing system control is Blue Wave Systems' FACT software, a powerful library of Application Programming Interfaces (APIs) that is used to configure and control the DSP hardware.

Blue Wave Systems (NASDAQ/NMS:BWSI) is the world's leading supplier of DSP solutions and provides digital signal processing (DSP) boards and subsystems to more than one-half of the world's top 40 companies. Blue Wave Systems is principally involved in the development and sale of embedded DSP computers for the telecommunications, defense, measurement, and instrumentation industries. The Company resulted from the merger of Mizar, Inc. and Loughborough Sound Images Ltd. in April 1998.

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.