Blue Wave Systems Extends ComStruct-TM- Support for 3G Wireless Infrastructure Equipment

Blue Wave Systems Extends ComStruct-TM- Support for 3G Wireless Infrastructure Equipment

Business Editors & High Tech Writers

CARROLLTON, Texas–(BUSINESS WIRE)–June 29, 2000

– New GSM-AMR Codec Capability Significantly Reduces Development

Time for Next Generation Mobile Communications Systems –

Blue Wave Systems Inc. (NASDAQ:BWSI) has extended its support for Third Generation (3G) wireless infrastructure equipment by integrating GSM-AMR (Adaptive Multi Rate), the selected codec for 3G wireless, into its ComStruct(TM) product line. This will enable telecom equipment manufacturers to significantly reduce the time required to develop and deploy next generation mobile communications systems.

The new GSM-AMR codec standard will offer near wireline quality speech transmission and improved bandwidth utilization, and has been selected for evolved GSM, UMTS and WCDMA networks by the Third Generation Partnership Project (3GPP), the global co-operative of standards organizations for next generation wireless communications. Its high performance means that GSM-AMR may also be used in other next generation wireless and packet-switched (IP) networks.

Blue Wave’s ComStruct line of telecom products now delivers a deployment-grade software platform – which provides control and management of signal-processing algorithms – to enable the easy and rapid implementation of the GSM-AMR codec in test, simulation and deployed network environments. ComStruct with GSM-AMR capability will be available in calendar Q3 2000.

“Several countries will begin the deployment of 3G networks as soon as 2002 and the GSM-AMR codec standard – defined by Ericsson, Nokia and Siemens – is already being evaluated by a number of operators worldwide,” said Karl Wale, product manager at Blue Wave Systems. “ComStruct has proven to be extremely popular with a number of wireless network equipment manufacturers and the addition of leading edge GSM-AMR technology in a flexible software framework will enable them to significantly reduce the time required to deploy next generation networks. By eliminating the need to invest in algorithm integration or processor resource management, ComStruct can provide an essential competitive advantage.”

The GSM-AMR codec standard (ETSI: GSM 06.90) includes eight codec modes, which provide the required flexibility to offer a high quality speech service without compromising the system capacity. GSM-AMR enables network operators to prioritize capacity or quality per channel giving more flexible service modes as well as enabling significantly improved rates of data transmission. GSM-AMR also offers a high level of compatibility with widely deployed second-generation mobile systems through its inclusion of the GSM Enhanced Full Rate (EFR) (12.2 kbps) and the IS136 EFR (7.4 kbps) standards.

Blue Wave’s ComStruct is a communications processing solution for the development and deployment of high-density wireless and wireline technology within the telecommunication infrastructure. With its modular design ComStruct can deliver performance, reliability, resource management, and scalability in a flexible architecture. ComStruct is used worldwide in applications ranging from 3G wireless to Voice over IP (VoIP) and enables carrier-class OEMs to deploy a subsystem both quickly and easily – eliminating up to 80 per cent of normal development time.

At the heart of Blue Wave’s ComStruct solution is the FACT(TM) software framework, which enables customers to easily incorporate commercially available or proprietary algorithms for the rapid development and full deployment of high-density telecom applications. For more information on Blue Wave’s ComStruct solutions visit http://www.bluews.com.

Blue Wave Systems is a leading supplier of high-channel Digital Signal Processing (DSP) subsystems used in telecommunication infrastructure equipment, such as voice over packet (VoIP) gateways, digital wireless communications and intelligent peripherals. The ComStruct(TM) line of telecom infrastructure communication processing subsystems was launched in January 1999. At the heart of the ComStruct(TM) line is the company’s FACT(TM) software (Framework Architecture for Communication Technologies), which enables the DSP subsystem to be rapidly and effectively deployed in a variety of carrier class telecom applications. Blue Wave Systems has been a market leader in DSP board-level products since 1983. For additional information, please visit our company’s web site at www.bluews.com.

ComStruct and FACT are trademarks of Blue Wave Systems Inc. All other names and trademarks are the property of their respective owners.

This press release contains forward-looking statements which are based on expectations of the Company but involve a number of risks and uncertainties, including, but not limited to, technological change, quarterly fluctuations, integration of Mizar and Loughborough Sound Images, dependence on the defense industry, dependence on key suppliers and employees, competition, and Year 2000 compliance. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise forward-looking statements to reflect unanticipated events. For a further explanation of risk factors please see the Company’s most recent SEC filings. The Company further cautions users who may utilize published bookings and backlog information as tools to forecast the company’s revenue during a given timeframe since certain purchase orders may be subject to 1) cancellation and, 2) revision to delivery schedules.

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