WASHINGTON, DISTRICT OF COLUMBIA -- (MARKET WIRE) -- 10/23/2006 -- Spectrum Signal Processing Inc. (TSX: SSY)(NASDAQ: SSPI) today announced at MILCOM 2006 the availability of its flexComm™ SDR-4000 Wireless Modem Lite (WML), a lower power rugged package that supports the critical modem, link and network layer processing functions necessary in a software defined radio. The Lite version reduces the power required per slot by supporting a selective feature set from Spectrum's SDR-4000 products.

The SDR-4000 WML is specifically designed for tactical Military Communications (MILCOM) applications and provides black-side "IF to Ethernet" digitization and processing of complex waveforms. It consists of an XMC-3321 dual transceiver module mounted onto a 3U cPCI PRO-4600 Lite carrier card. The wireless modem has been architected to support waveforms requiring low latency deterministic operation to maintain synchronization on a frequency-hopped tactical MILCOM network. This is accomplished through the use of independent data and control fabrics throughout the SDR-4000 WML architecture, with high-speed data transferred from the XMC-3321 to the PRO-4600 Lite using Spectrum's low power Solano® communications technology.

"The SDR-4000 WML is targeted for applications deployed in size, weight and power constrained environments," said Mark Briggs, Vice President, Marketing at Spectrum Signal Processing. "Reducing the power consumption is essential for applications that have limited battery power such as unmanned vehicles and tactical data links."

The SDR-4000 WML is available in either an air-cooled or conduction-cooled configuration. It supports two IF input channels, two IF output channels, an internal or external 10 MHz reference and high speed sample clock, Gigabit Ethernet, RS232 and JTAG connectivity. The SDR-4000 WML employs a combination of processing devices, including a Xilinx® Virtex-4™ field programmable gate array, a Texas Instrument's TMS320C6416 digital signal processor and an MPC8541E general purpose processor.

For more information on the SDR-4000 WML, 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 is a trademark and Solano is a registered 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.