NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  SPECTRUM SIGNAL PROCESSING INC.

NASDAQ SYMBOL:  SSPI
TSX SYMBOL:  SSY

OCTOBER 6, 2004 - 07:00 ET

US Space and Naval Warfare Systems Command Selects 
Spectrum Signal Processing HCDR-1000 for UHF Satellite 
Communications Platform

COLUMBIA, MARYLAND--(CCNMatthews - Oct. 6 2004) - Spectrum Signal 
Processing (USA) Inc., a subsidiary of Spectrum Signal Processing Inc. 
(NASDAQ: SSPI / TSX: SSY), today announced that the US Space and Naval 
Warfare Systems Command (SPAWAR) has selected Spectrum's flexComm(TM) 
HCDR-1000 platform for the development of an Ultra High Frequency (UHF) 
Characterization System. The system will be used to analyze interference 
patterns thereby enabling the development of interference mitigation 
techniques for improved satellite communications.

Satellite voice and data communications are commonly plagued with 
interference of indeterminate source and nature. SPAWAR is developing a 
UHF Characterization Platform that will be used to analyze the entire 
band of UHF satellite communications channels with the objective of 
creating statistical models of the interference patterns. These 
statistical models will then be used to pinpoint the source and 
characteristics of the interference such that interference mitigation 
techniques can be employed to improve satellite communications.

"Spectrum provided a complete front-end processing platform for our 
application, from radio frequency (RF) to base-band processing. This 
platform employs innovative technology including FPGA (field 
programmable gate array) cores instead of traditional down-converters 
which results in a significant increase in channel density per slot," 
said Gerry Baumgartner, Program Manager at SPAWAR. "Spectrum was also 
able to meet an aggressive timeframe which will allow us to meet our 
program schedule and cost objectives."

"SPAWAR's selection of Spectrum's HCDR-1000 is a validation of both our 
application engineering services capabilities and our flexible product 
offering," said James P. Atkins, President of Spectrum Signal Processing 
(USA) Inc. "Our applications engineering services team provides signal 
processing systems engineering expertise and the ability to rapidly 
integrate third party products such as RF front ends."

The HCDR-1000 is a flexible heterogeneous processing platform that 
incorporates Xilinx(TM) field programmable gate arrays, IBM and Motorola 
PowerPC(TM) processors and Texas Instruments digital signal processors. 
The HCDR-1000 also integrates a front-end radio frequency receiver from 
Eclipse Electronic Systems, Inc. http://eclipse.sigint.com/.

ABOUT SPAWAR

Headquartered in San Diego, CA, SPAWAR is the US Navy's Chief Engineer 
for command, control, communications, computer, intelligence and 
surveillance (C4IS) systems. SPAWAR's mission is to provide war fighters 
with knowledge superiority by developing, delivering, and maintaining 
effective, capable and integrated C4IS systems. More information on 
SPAWAR is available at http://enterprise.spawar.navy.mil/.

ABOUT SPECTRUM SIGNAL PROCESSING INC.

Spectrum Signal Processing Inc. (NASDAQ: SSPI / TSX: SSY) is a leading 
supplier of software reconfigurable 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 (COTS) platforms to the US Government, 
its allies and its prime contractors. More information on Spectrum and 
its flexComm product line is available at 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 is a trademark of Spectrum Signal Processing Inc.

(TM) Xilinx is a trademark of Xilinx Inc.

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

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