Spectrum’s Multi-Channel Transceiver Core Provides Small Footprint Radio Application Framework for Software Reconfigurable Platforms

WASHINGTON, DISTRICT OF COLUMBIA–(Oct. 23, 2006) – Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) today announced at MILCOM 2006 the availability of its flexCommTM Multi-Channel Transceiver core for field programmable gate arrays (FPGAs). The Multi-Channel Transceiver core quickly and easily implements a fully functional channelizer on Spectrum’s software defined radio (SDR) platforms to provide a framework for waveform development. This core configures and scales to support various combinations of narrowband and wideband applications, enabling users to customize the off-the-shelf platform via software and facilitating waveform portability.

“The Multi-Channel Transceiver core provides a powerful baseline for our customers’ radio applications, particularly those developing SDR applications for multiple projects,” said Mark Briggs, Vice President, Marketing at Spectrum Signal Processing. “The core provides and abstracts all the peripherals from the application, saving developers time from doing this themselves. This facilitates application portability and eases migration to future upgrades through technology insertion.” Mr. Briggs added, “The core is extremely efficient, utilizing very few FPGA resources. This frees up more resources for our customers’ complex waveform applications and is ideal for customers that are limited in their waveform implementations by size, weight, power and cost.”

The Multi-Channel Transceiver core’s main function is to facilitate the implementation of frequency hop and burst waveforms. This is achieved through a scalable number of up and down converters that are fully programmable on the fly and are tightly integrated with a timing mechanism. The Multi-Channel Transceiver core can contain a selectable number of digital down converter and digital up converter channels allowing the user to independently tune multiple signals within each IF channel.

The software package included with the Multi-Channel Transceiver core contains an application programming interface (API) that simplifies implementation and use of the core. Specifically, the API provides the user with high-level software routines to initialize the platform, setup and configure the core and its components, construct and deconstruct data packets, upload filter taps and transfer digital baseband data to and from the FPGA and the host processor. To further ease development, system examples are also included. System examples are also provided demonstrating the use of the API and the basic operation and performance of the core.

The Multi-Channel Transceiver core is available for order immediately. The core operates with any of Spectrum’s XMC IF transceiver modules supporting Xilinx® Virtex-4TM technology, such as the XMC-3311 or XMC-3321, which can be mounted to any of Spectrum’s flexComm carrier boards.

Additional product information can be found at www.spectrumsignal.com/products.

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, MD, 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.

Forward-looking Safe Harbour Statement

This news release contains forward-looking statements related to sales of the Spectrum Signal Processing Inc. flexComm product line. 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.

flexComm is a trademark of Spectrum Signal Processing Inc. Xilinx is a registered trademark and Virtex-4 is a trademark of Xilinx Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.