Spectrum Signal Processing Signs Agreement for Cognitive Radio Research and Development

FOR: Spectrum Signal Processing Inc.

TSX SYMBOL: SSY      NASDAQ SYMBOL: SSPI     

JUL 24, 2006 - 07:00 ET
BURNABY, BRITISH COLUMBIA--(CCNMatthews - July 24, 2006) - Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) today announced a $500,000 agreement with Motorola, Inc. for the supply of its flexComm^TM SDR-3000 SMRDP.

"This agreement is significant because it provides Spectrum with valuable insight into how the public safety and homeland security markets are adopting software defined radio and cognitive radio technologies," stated Pascal Spothelfer, Spectrum's Chief Executive Officer.

A cognitive radio is a type of software defined radio that is able to reconfigure its analog radio frequency (RF) output and incorporate "self-awareness" and knowledge of transmission protocols, etiquette and procedures. By sensing its RF environment and location, a cognitive radio is able to alter its power, frequency, modulation and other operating parameters so as to dynamically reuse whatever radio spectrum is available.

Spectrum's SDR-3000 SMRDP is based upon its SDR-3000 software defined radio processing and analog-to-digital/digital-to-analog converter boards in a four slot 2U CompactPCI^® chassis. These components are integrated with two RF transceiver subsystems in a 20-slot 3U CompactPCI chassis. The system includes all software application libraries, including digital down-conversion and digital up-conversion field programmable gate array cores, operating systems and a Software Communications Architecture Core Framework. The system is flexible, scalable and can be customized as required. For more information on the SDR-3000 SMRDP, please visit 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 and quicComm are trademarks of Spectrum Signal Processing Inc. Xilinx is a registered trademark of Xilinx, Inc. PowerPC is a registered trademark of International Business Machines Corporation. Freescale is a trademark of the Freescale Semiconductor, Inc. RapidIO is a trademark of the RapidIO Trade Association. All other trademarks are the property of their respective owners.