General Dynamics and Spectrum Signal Processing USA to Introduce Upgraded Modem for U.S. Navy Digital Modular Radios (DMR)

SCOTTSDALE, Ariz. — July 13, 2005 — General Dynamics C4 Systems, a business unit of General Dynamics (NYSE: GD), and Columbia, Maryland-based Spectrum Signal Processing (USA) Inc. (NASDAQ:SSPI/TSX: SSY) announced today that the companies will introduce and market an upgraded wideband modem for the U.S. Navy’s AN/USC-61(C) Digital Modular Radio (DMR). The upgrade will allow the DMR, a software-defined radio, to host new wideband Joint Tactical Radio System (JTRS) waveforms, in addition to the existing range of waveforms supported.

The upgraded modem, which was demonstrated to the Navy in late 2004, will enable advanced communications capabilities consistent with JTRS requirements using cost-effective, commercial-off-the-shelf (COTS) technology. Currently approximately 300 software-defined radios, each with four channels, have been shipped to the Navy to be installed on ships, submarines, shore sites, and test facilities. The new modem capability will permit the hosting of high-speed networking waveforms to operate over multiple channels on the DMR platform.

“This wideband modem upgrade will now complete the picture by enabling true wideband networking capability,” said Chris Brady, vice president of Assured Communication Systems for General Dynamics C4 Systems. “In fielding the software-defined Digital Modular Radio to the Navy, General Dynamics has already delivered many of the challenging capabilities required for certification by JTRS.”

Spectrum USA will supply advanced modem technology that General Dynamics will integrate on the DMR platform. Spectrum USA and General Dynamics have successfully collaborated on a number of projects for military communications and signals intelligence.

James P. Atkins, president of Spectrum USA, said, “By leveraging our combined expertise in software defined radios, the General Dynamics-Spectrum USA team will shorten the development cycle to quickly bring new and robust functionality to Navy communications.”

The DMR system is a National Security Agency-certified software defined radio that currently features some JTRS capabilities such as expanded frequency range, multiple software-defined waveforms, multiple independent level security, advanced software and has completed UHF SATCOM waveform conformance testing at Joint Interoperability Test Command (JITC). The system can be used to replace multiple existing radios with a single, easy-to-use system; on certain Navy platforms, it can reduce equipment space requirements by more than 50 percent.

Spectrum Signal Processing (USA) Inc. 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.

General Dynamics C4 Systems is a leading integrator of secure communication and information systems and technology. With more than 10,000 employees worldwide, the company specializes in command and control, communications networking, space systems, computing and information assurance for defense, government and select commercial customers in the United States and abroad.

General Dynamics, headquartered in Falls Church, Va., employs approximately 70,100 people worldwide and had 2004 revenue of $19.2 billion.  The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation.  More information about the company can be found at www.generaldynamics.com.