BURNABY, BRITISH COLUMBIA--(CCNMatthews - Jan. 4, 2007) - Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) today announced that its flexComm(TM) SDR-3001 software defined radio (SDR) platforms have been selected by a leading global telecommunications software and service provider for internal research and development into Multiple Input/Multiple Output (MIMO) technology.

MIMO technology refers to the use of multiple transmitters, antennas and receivers in a Wireless communication system to increase spectral efficiency. MIMO allows more data to be transferred within the same spectral bandwidth and/or to increase transmission quality of service. The ultimate goal of adopting MIMO technologies is to improve cost efficiencies in radio networks.

"The benefits of MIMO technology can outweigh the additional costs, including multiple RF front ends and additional processing, necessary to support MIMO systems," said Leonard G. Pucker II, Spectrum's Chief Technology Officer. "Utilization of software defined radio technologies, such as those in Spectrum's SDR-3001 platform, can offset these increased costs for original equipment manufacturers allowing for the creation of MIMO based systems in a cost efficient manner."

Spectrum's SDR-3001 is comprised of a heterogeneous processing platform incorporating Xilinx(R) field programmable gate arrays and PowerPC(R) processors from IBM(R) and Freescale(TM). It also includes VxWorks(R) real-time operating system by Wind River(R) and Spectrum's quicComm(TM) hardware abstraction layer, which facilitates algorithm partitioning and programming with a real-time operating system. RapidIO(TM) provides a high bandwidth interconnect fabric between the processors, as well as the input/output functionality to the processors, to ensure efficient use of the processing resources.

For more information, please visit www.spectrumsignal.com.

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 and IBM are registered trademarks of IBM Corporation. Freescale is a trademark of the Freescale Semiconductor, Inc. Wind River and VxWorks are registered trademarks of Wind River Systems, Inc. RapidIO is a trademark of the RapidIO Trade Association. All other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.