Immediate Availability of 120 Channels Per Module ComStruct Wireless Transcoder Enables Rapid...

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CARROLLTON, Texas--(BUSINESS WIRE)--May 31, 2001

Blue Wave Systems Inc. (NASDAQ:BWSI) today extended its range of next generation wireless infrastructure solutions with the launch of the ComStruct(TM) Wireless Transcoder Module. This high-performance

Using an industry-standard PCI Mezzanine Card (PMC), the ComStruct transcoder module provides a high-density solution for simultaneously converting multiple voice channels between the wireless and fixed line networks. Designed to maximize system density and speed of operation, a ComStruct Wireless Transcoder Module solution will provide 120 GSM-AMR or 90 EVRC channels per module, scaling to even higher densities if a carrier board with multiple PMC sites is used.

Nigel Forrester, product manager at Blue Wave Systems said, "Implementing complex algorithms, especially low bit-rate codecs such as GSM-AMR and EVRC, on existing 2G hardware can cause a dramatic drop in channel density. Field trials have highlighted potential network deficiencies, so a hardware upgrade is essential to at least maintain and, in some cases, increase the number of channels that can be supported. This package provides one of the most open approaches to upgrading the wireless infrastructure with the least risk. Using a ComStruct-based transcoder enables a customer to access the system at whatever level of expertise suits them and is ideal for operators who cannot afford to be late to market with this technology."

Many telecom subsystems are already designed with PMC sites, which will ease the deployment of this solution, and there is significantly less risk associated with designing a carrier board for PMC modules than a completely new resource board. A variety of interfaces, including TDM (H.110 or SCSA) and Ethernet, further ease the integration of this solution into existing architectures.

The Wireless Transcoder Module solutions are based on Blue Wave's ComStruct PMC/C5421 communications processing platform and the GSM-AMR or EVRC transcoding algorithm. The PMC/C5421 features up to 16 Texas Instruments' TMS320(TM)C5421 digital signal processors and a Motorola MPC8240 control processor.

OEM pricing starts from $30 per channel for 64,000 ports with further reductions for high volume deployments.

Blue Wave Systems' ComStruct is a set of modular and scalable communications processing building blocks that includes hardware, software and DSP resources. ComStruct enables telecom infrastructure equipment manufacturers to develop, test and deploy carrier-class wireless and wireline technology for applications ranging from GPRS to 3G wireless and Voice over IP.

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 trademarks are acknowledged.

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.