Telecom Framework Architecture Now Available forSolaris Operating Environment.

CARROLLTON, Texas--(BUSINESS WIRE)--Oct. 14, 1999--

Recent Successes of Open Architecture Building Blocks Now

Enhanced By Reliability, Scalability and Security of Solaris

FACT(TM) (Framework Architecture for Communication Technologies), a ComStruct(TM) telecommunication

building block from Blue Wave Systems Inc. (NASDAQ/NMS:BWSI), is now available to telecom system developers using Sun Microsystems Inc. (NASDAQ/NMS:SUNW) Solaris(TM) Operating Environment. This launch follows a recently announced collaborative effort between Blue Wave Systems and Sun Microsystems to integrate ComStruct DSP boards with the Sun SPARCengine(TM). FACT allows these elements to form a high density communications processing subsystem for use in applications such as intelligent networks, voice recording and archiving, voice over IP, and mobile communications.

As part of Blue Wave Systems' highly successful ComStruct family, FACT enables rapid development and deployment of multi-channel applications for DSP systems, providing more cost-effective product development and a significant time-to-market advantage. As a result, Blue Wave has received design wins from major telcos that successfully use FACT for both development and for full-scale deployment, which illustrates the portability of FACT technology. FACT's key features include easy-to-use APIs together with sophisticated host/DSP framework and a standards-based interface to a range of DSP resources, making it the ideal solution for telecom systems developers.

The Solaris version of FACT, available for the Solaris 7 Operating Environment, now enables customers to benefit from the superior reliability, scalability and security offered by Solaris. This announcement follows Blue Wave's recent announcement of FACT compliance for the Texas Instruments eXpressDSP(TM) technology.

For more information on Blue Wave's ComStruct product line, including access to the FACT technical datasheet, visit www.bluews.com.

Blue Wave Systems (NASDAQ, NMS: BWSI) is the world's leading supplier of DSP solutions and provides digital signal processor (DSP) boards and subsystems to more than one-half of the world's top 40 companies. Blue Wave Systems is principally involved in the development and sale of embedded DSP computers for a variety of industries, with a strategic focus on telecommunications. Blue Wave's products include the ComStruct line of building blocks for communications processing applications. For additional information about Blue Wave Systems, please visit the company's web site at www.bluews.com.

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.

ComStruct and FACT are trademarks of Blue Wave Systems Inc.

Sun, Sun Microsystems and Solaris are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

The SPARC trademark is used under license and is a trademark or registered trademark of SPARC International, Inc. in the United States and in other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc. eXpressDSP is a trademark of Texas Instruments, Inc.