Spectrum Signal Processing Concludes Cdn$70,000 Settlement Agreement with Industry Canada

Business Wire, March 27, 2006

BURNABY, British Columbia -- Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) today announced that it has signed a settlement agreement with Industry Canada to remedy the Company's breach of its Technology Partnerships Canada (TPC) funding agreement dated March 1999. Under the settlement agreement, Spectrum has agreed to pay Industry Canada Cdn$70,000 to rectify the breach. The Company remitted Cdn$60,000 of this amount in October 2005 and has agreed under the settlement agreement to pay an additional Cdn$10,000 in audit related costs.

Industry Canada notified the Company of the breach in September 2005 following an audit of the non-solicitation provisions of the Company's TPC funding agreements dated March 1999 and March 2004. The Company did not engage any outside consultants to perform solicitation services in relation to its TPC funding agreement dated March 2004.

ABOUT SPECTRUM SIGNAL PROCESSING INC.

Spectrum Signal Processing Inc. (TSX:SSY)(NASDAQ:SSPI) is a leading supplier of software defined platforms for defense electronics applications. Spectrum's products and services are optimized for military communications, signals intelligence, surveillance, electronic warfare and satellite communications applications. Spectrum's integrated, application-ready products provide its customers with compelling time-to-market and performance advantages while mitigating program risk and cost parameters. Spectrum Signal Processing (USA) Inc., based in Columbia, MD, provides applications engineering services and modified commercial-off-the-shelf platforms to the US Government, its allies and its prime contractors. For more information on Spectrum and its flexComm(TM) product line, please visit www.spectrumsignal.com.

FORWARD-LOOKING SAFE HARBOUR STATEMENT

This news release contains forward-looking statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, including the timely development and acceptance of Spectrum's new products, the impact of competitive products and pricing, availability of components, changing market conditions and the other risks detailed from time to time in other company filings. Actual results may differ materially from those projected. These forward-looking statements represent the company's judgment as of the date of this release and Spectrum may or may not update these forward-looking statements in the future. Readers are referred to Spectrum's assumptions and risk factors set out in the most current Form 20-F filed with the Securities and Exchange Commission and the British Columbia Securities Commission.

(TM) flexComm is a trademark of Spectrum Signal Processing Inc.

Spectrum Signal Processing Inc. (TSX:SSY) (NASDAQ:SSPI)