BURNABY, BRITISH COLUMBIA--(July 10, 2006) - Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) today announced an agreement with Lockheed Martin Corporation (NYSE:LMT) for its flexComm(TM) SDR-3000 software defined radio platform. Lockheed Martin will use the SDR-3000 for waveform development in a Software Communications Architecture (SCA) environment.

"Lockheed chose Spectrum for its leadership position in commercial-off-the-shelf SCA-enabled reconfigurable processing solutions," said Russ Johnson, Principle Research Scientist at Lockheed Martin Integrated Systems and Solutions. "By selecting a Spectrum solution, I expect to advance my team's knowledge of the SCA and SCA-enabled waveform development and accelerate Lockheed's efforts under its next generation communications programs."

"The SDR-3000 is an integrated subsystem that incorporates a range of software components from a number of leading vendors in the software defined radio marketplace," said Pascal Spothelfer, Spectrum's President and CEO. "This allows the SDR-3000 to provide all the hardware, software and design tools necessary for waveform development in an SCA environment to allow customers such as Lockheed to begin development work immediately thereby reducing their development time and risk."

The SDR-3000 is a heterogeneous processing platform incorporating Xilinx(R) field programmable gate arrays, IBM and Freescale(TM) PowerPC(R) processors and Texas Instruments' digital signal processors. It also includes Harris Corporation's SCA Core Framework, 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. The SCA is an open architecture developed by the U.S. Department of Defense for its Joint Tactical Radio System program.

For more information on the SDR-3000, please visit www.spectrumsignal.com/products.

About Lockheed Martin Corporation

Headquartered in Bethesda, MD, Lockheed Martin employs about 135,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2005 sales of $37.2 billion.

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. Freescale is a trademark of Freescale Semiconductor, Inc. PowerPC is a registered trademark of International Business Machines Corporation. Wind River and VxWorks are registered trademarks of Wind River Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.