Spectrum Signal Processing Announces Three New Design-Ins for its flexComm Product Line.

BURNABY, British Columbia -- Spectrum Signal Processing Inc. (NASDAQ:SSPI)(TSX:SSY), today announced three new design-ins for its flexComm(TM) product line. The SDR-3000 and HCDR-1000 design-ins address a range of signals intelligence and military communications applications as follows:

- Military Communications: A North American-based defense contractor has selected Spectrum's flexComm SDR-3000 product for internal development as part of its activities targeted at the Joint Tactical Radio System (JTRS) program. Under the agreement, Spectrum will supply a fully integrated SDR-3000 subsystem including the Software Communications Architecture (SCA). The customer plans to integrate Spectrum's SDR-3000 subsystem with its proprietary radio frequency (RF) front end. The resultant software defined radio will be used as a platform for rapid radio development including the porting and demonstration of various military communications waveforms;

- Signals Intelligence: An agency of the US Department of Defense has selected Spectrum's flexComm HCDR-1000 for an undisclosed signals intelligence program. The key selection criterion of this government customer was the requirement for its system to interface with multiple third party RF components. Development is expected to begin in early 2005, with initial field trials expected in the third quarter of 2005. Based on successful field trials, production shipments are expected to start in 2006 with an estimated program value for Spectrum of between $1,000,000 and $2,000,000; and

- Military Communications: A North American-based defense contractor has purchased a flexComm SDR-3000 to research software defined radio technologies with the objective of upgrading its current generation of broadly deployed military radios to be software defined and allowing them to interoperate with JTRS compliant networks.

"These wins underscore two key advantages of our flexComm product line," stated Pascal Spothelfer, President and CEO of Spectrum Signal Processing Inc. "First, our products incorporate a comprehensive software stack including the SCA. This is extremely important for systems that need to interoperate with JTRS compliant networks. Second, as an early entrant into the software defined radio market, we have been able to partner with best-in-class companies to bring a compelling level of product integration to our customers. Our recent MRDP (MILCOM Rapid-Prototype Development Platform) product announcement illustrates this point."

The SDR-3000 is comprised of a heterogeneous processing platform incorporating Xilinx(R) field programmable gate arrays, IBM and Motorola PowerPC(TM) processors and Texas Instruments digital signal processors. The SDR-3000 platform can also include an integrated radio frequency transceiver and analog input/output modules. Software development tools include Spectrum's quicComm(TM) hardware abstraction layer to facilitate algorithm partitioning and programming and an SCA Core Framework (CF) to enable the set up and teardown of waveforms as mandated for all US military communications programs by the JTRS Joint Program Office. Spectrum's SCA board support package enables the SCA CF to identify and manage the platform resources. The SDR-3000 also includes a POSIX-compliant real-time operating system and an associated board support package.

The HCDR-1000 is a flexible heterogeneous processing platform that incorporates Xilinx field programmable gate arrays, IBM and Motorola PowerPC processors and Texas Instruments digital signal processors. The HCDR-1000 has been integrated with multiple third party RF front ends including those from DRS Technologies, Inc. and Eclipse Electronic Systems, Inc. Software development tools include Spectrum's quicComm hardware abstraction layer to facilitate algorithm partitioning and programming. The HCDR-1000 also includes a POSIX-compliant real-time operating system and an associated board support package.

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, Maryland, provides applications 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.

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.

(TM) flexComm and quicComm are trademarks of Spectrum Signal Processing Inc.

(R) Xilinx is a registered trademark of Xilinx Inc.

(TM) PowerPC is a trademark of International Business Machines Corporation.