Blue Wave Systems Launches ComStruct Wireless Transcoders with Adaptive Voice Coder Capability; Integrated GSM-AMR and EVRC Solutions Speed the Deployment of Converged Networks.

Business Editors & High Tech Writers

CARROLLTON, Texas--(BUSINESS WIRE)--Nov. 30, 2000

Blue Wave Systems Inc. (NASDAQ:BWSI) has launched two powerful new ComStruct(TM) Wireless Transcoders -- high-density communications processing solutions for the next generation wireless infrastructure. These cost-effective packages will enable wireless infrastructure developers to rapidly add adaptive rate GSM-AMR or EVRC voice coders to their existing and next generation networks -- a crucial step in the evolution to 2.5G and 3G networks. Each transcoder solution is aggressively priced from $20,000 per development system -- which includes the high-density hardware platform, management software environment and voice coder. OEM pricing starts from $50 per channel for 100,000 ports with further reductions for high volume deployments.

The ComStruct Wireless Transcoders provide a complete high-density solution for simultaneously converting multiple voice channels between the wireless and fixed line networks. A key function in the Mobile Switching Center of a wireless network, this ComStruct open standards solution can provide the necessary performance increase to efficiently handle adaptive rate voice coders. Blue Wave's new transcoding solutions are inherently scalable making them ideal for numerous cell types -- picocells with a few hundred channels to microcells with up to a thousand or more channels per system.

The ComStruct transcoders are suitable for both new and existing equipment as they use T1/E1 connections or the industry standard H.110 telecom bus to route calls. Additional telecom interfaces enable even proprietary backplane systems to benefit from the increase in performance by adding the transcoder as an adjunct box and routing calls to and from it using industry-standard interfaces such as T1 or E1.

Karl Wale, product manager at Blue Wave Systems said, "Signal processing technology within the existing transcoder can be limiting in terms of performance compared to that of the latest DSPs. The new adaptive rate codecs can be very performance intensive, therefore requiring an upgrade in technology to maintain channel density and cost effectiveness. These integrated solutions target operators looking to benefit from an upgrade of their networks to adaptive rate codecs, but are wary of the risk and cost involved. ComStruct provides all the underlying technology, software and algorithms to minimize this cost and risk, and enables them to focus on developing services to differentiate their solution."

"Through the voice gateway solutions in Blue Wave's ComStruct portfolio, wireless operators can also add connectivity to multiple networks -- including PSTN and packet-based backbone infrastructures. With the falling cost of cellular calls, this wireless to VoIP connectivity can enable operators to maintain their margins as well as adding new services," he continued.

Designed to maximize channel count and speed of operation, a ComStruct Wireless Transcoder solution will provide over 120 channels per CompactPCI(R) slot for GSM-AMR and over 90 channels per slot for EVRC, scaling to over 1000 channels per chassis. The solutions are based on Blue Wave's ComStruct CPCI/C6402 communications processing platform, FACT-RT real-time subsystem development and management environment, and the GSM-AMR or EVRC transcoding algorithm in a completely integrated and cost-effective solution.

Blue Wave Systems' ComStruct is a set of modular and scalable communications processing building blocks that includes hardware, software and DSP resources. ComStruct enables telecom infrastructure equipment manufacturers to develop, test and deploy carrier-class wireless and wireline technology for applications ranging from 3G wireless to Voice over IP.

For more information on Blue Wave's ComStruct solutions visit http://www.bluews.com.

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 and FACT are trademarks of Blue Wave Systems Inc. All trademarks are acknowledged.

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.