Business Editors &High-Tech Editors

CARROLLTON, Texas--(BUSINESS WIRE)

Feb. 17, 2000

CT Expo Spring 2000

Blue Wave Systems' New PMC Module Delivers Up to 192 Channels of

Voice/Fax Processing

Blue Wave Systems (Nasdaq:BWSI) today announced the latest member of the ComStruct(TM) family of building blocks for communications processing, the PMC/C5421, which is set to have a significant impact on vendors looking to add open-standards based Voice/Fax/Data over IP capability to existing and new equipment designs. The new module will provide processing power to handle up to 192 channels of voice/fax over packet processing.

PCI mezzanine cards (PMC) are well suited to developers seeking to provide technology insertions to existing or custom equipment, taking advantage of the PMC capability to allow system evolution within a proprietary form factor. The PMC/C5421 is a single-slot PMC module that can be used to bring a powerful DSP-based voice and data processing resource to a system with PMC expansion capability. It can, for instance, deliver the processing performance necessary to add voice/fax/data functionality to a single board computer, resulting in a powerful single slot solution.

The PMC/C5421 features up to 16 Texas Instruments (NYSE:TXN) TMS320C5421 DSPs and an integrated microprocessor, and is capable of running off-the-shelf voice/fax/data software subsystems. Users of the recently announced CompactPCI CPCI/C5421 processing platform can take advantage of the PMC/C5421 to further increase channel density to more than 240 channels per slot.

&uot;The PMC/C5421 will further strengthen our ComStruct family by combining very high channel density with the flexibility offered by the open standard PMC form factor,&uot; said Brian Carr, Blue Wave Systems business development manager. &uot;We will offer the PMC/C5421 in a number of different build options in recognition of the specific performance and power consumption requirements of infrastructure systems.&uot;

In addition to the 16 TI DSPs, the module features a Motorola 8240 integrated PowerPC microprocessor. Running at up to 250 MHz, the microprocessor can be utilized for packet and data processing. A 10/100 Base-T Ethernet plus a SCSA compatible timeslot bus are available on the user P4 connector.

First product shipments are expected during calendar Q2 2000 and a 16-processor module will cost from $3995 in volume.

The PMC/C5421 module will be exhibited on the Blue Wave booth (2059) at CT EXPO 2000, 6-9 March in Los Angeles.

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.

Note to Editors: ComStruct is a trademark 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.