First European Demonstration of ComStruct High Density Universal Port Solution At VON Europe...

Business Editors & High Tech Writers

CARROLLTON, Texas--(BUSINESS WIRE)--June 6, 2001

Developers Can Build 120-Channel VoIP Media Gateway Now and

Migrate to 672 and More Channels Using FACT-MG

At Voice on the Net Europe 2001, Blue Wave Systems Inc. (NASDAQ:BWSI),

a world-leading supplier of processing platforms for the new converged network, will give the first public European demonstration of the ComStruct(TM) Packet Voice solution. This provides high-density universal port capabilities - compressed voice, fax relay or V.90 modem - in a single CompactPCI(R) slot.

Using a ComStruct platform, telecom OEMs can rapidly develop a 120 channel VoIP solution based on the ComStruct CPCI/C5421 packet-processing engine, which is available now. FACT-MG, Blue Wave's recently announced software environment for packet voice subsystem management, enables developers to seamlessly migrate to 672 channels and even higher densities as the company delivers on its packet voice hardware roadmap.

FACT-MG is also available as a complete package, which enables telecom OEMs to source from Blue Wave Systems all the elements required to begin application development immediately. This integrated solution includes:

-- FACT-MG

-- 120 channel VoIP run time indemnified license

-- CPCI/C5421 120 compressed voice/fax channel DSP resource board with quad
T1/E1 PMC module

-- Rear Transition Module for ease of access and to enable Hot Swap

-- 12 months maintenance including support and product updates

From OEM building blocks to subsystem solutions, Blue Wave Systems' ComStruct(TM) product line provides the power and flexibility to meet the needs of the next generation infrastructure. At VON Europe 2001, Blue Wave Systems will also show the full range of ComStruct solutions for voice over packet, 3G wireless core network and UTRAN and enhanced voice services.

Blue Wave Systems will be demonstrating the ComStruct Universal Port Solution on booth 214/313 of VON Europe 2001, which is being held at the Stockholm International Fair from June 11-14.

If you would like more information regarding the complete ComStruct Packet Voice solution please visit 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.