NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  SPECTRUM SIGNAL PROCESSING INC.

TSX SYMBOL:  SSY
NASDAQ SYMBOL:  SSPI

DECEMBER 1, 2004 - 07:00 ET

Spectrum Signal Processing Awarded Contract from 
Techno-Sciences for NASA-Sponsored Satellite Search 
and Rescue System

COLUMBIA, MARYLAND--(CCNMatthews - Dec. 1, 2004) - Spectrum Signal 
Processing Inc. (TSX:SSY)(NASDAQ:SSPI)

Spectrum Signal Processing (USA) Inc., a subsidiary of Spectrum Signal 
Processing Inc., today announced that Techno-Sciences, Inc. (TSi) has 
contracted Spectrum to supply an integrated satellite communications 
subsystem for a satellite-based search and rescue application. The 
subsystem will form part of a Distress Alerting Satellite System (DASS) 
Developmental Local User Terminal (DLUT) being developed under a 
contract with the National Aeronautics and Space Administration (NASA) 
Goddard Space Flight Center.

The DLUT system will utilize orbiting operational global positioning 
satellites to provide real time global distress detection and location 
information on a worldwide basis. This system is expected to virtually 
eliminate terrain blockage thereby enabling more accurate locating 
capabilities and faster response times in critical situations. The 
system will also have the potential to provide two-way, non-vocal 
digital messaging to inform the sender that the beacon alert message has 
been received. The initial phase of development of the DLUT is scheduled 
to be complete by early 2005. Subsequent phases are anticipated in 2005 
and 2006 in order to refine the system to NASA's specific requirements. 
TSi plans to begin commercializing the system in late 2005.

"We selected Spectrum based on its robust commercial-off-the-shelf 
(COTS) product offering and its demonstrated understanding of satellite 
communications systems," said Dr. Gilmer Blankenship, Chairman of TSi. 
"TSi expects to employ Spectrum products in both its current and next 
generation commercial search and rescue satellite systems."

"Spectrum continues to be a recognized leader in the market for 
satellite communications signal processing platforms," said James P. 
Atkins, President of Spectrum Signal Processing (USA) Inc., "TSi 
selected Spectrum based on our ability to augment our COTS product 
offering with flexible application engineering and system integration 
services."

Spectrum's integrated satellite communications subsystem incorporates 
the company's next generation XMC-3310 module. The RapidIO(TM) based 
XMC-3310 module incorporates multiple Xilinx(R) Virtex-II Pro(TM) field 
programmable gate arrays and Analog Devices' analog-to-digital and 
digital-to-analog converters.

ABOUT TECHNO-SCIENCES, INC.

Techno-Sciences, Inc. (TSi) is an employee-owned, technology company 
located near Washington, DC. TSi develops customized products and 
solutions for signal processing, health monitoring and control. TSi adds 
value through alliances with major industrial firms, superior customer 
service and a global presence. TSi operates three business units: Search 
and Rescue (SARSAT), Defense Systems and Systems Engineering.

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(TM) 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 is a trademark of Spectrum Signal Processing Inc.

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

(TM) Virtex-II Pro is a trademark of Xilinx Inc.

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

(TM) RapidIO is a trademark of the RapidIO Trade Association.

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