SPECTRACOM ANNOUNCES STRATEGIC ACQUISITION

ROCHESTER, NEW YORK — Spectracom Corporation announced today the signing of a definitive agreement to acquire KSI Corporation, a subsidiary of DSPCon, Inc. based in Bridgewater, New Jersey. KSI is a leading provider of Bus Level Timing boards to military, aerospace, telecommunications and test and measurement markets. Spectracom reported that this acquisition is a part of the company’s overall strategy to expand in Aerospace and Defense markets and is complementary to initiatives recently announced in Telecom markets.
“Time and frequency customers have relied on Spectracom to deliver reliable products and exceptional support for over thirty years. Developing a broad portfolio of products with industry specific features and functions is an extension of this support and commitment to meet the needs of our customers,” said Lisa Withers, president and chief executive officer. Withers added, “KSI has a long history in the timing industry and we believe that their products, sales channels and technology are highly synergistic with our core timing business. In addition, we are equally delighted to deepen our relationship with DSPCon, Inc., who has used their substantial expertise in designing high-end digital signal processing test systems to enhance KSI products.”
Spectracom also announced that, as a part of the agreement, DSPCon Inc. will continue to use KSI products as components in its test systems. Al Brower, President of DSPCon, Inc., said, “We believe this is a great fit for both companies as it allows us to focus on our real-time data acquisition systems, software and services business, and maintain a strategic relationship with a key supplier.” Brower added, “Going forward we are eager to work closely with Spectracom to build our respective businesses and develop supportive products.” The transaction is estimated to close in the fourth quarter of 2005. Terms of the agreement were not disclosed.
About Spectracom Corporation
Spectracom Corporation designs, develops and manufactures Legally Traceable Time® and frequency products that are used in a wide variety of telecommunication and IP networks in the Public Safety, Enterprise, Telecom and Government markets. Founded in 1972, Spectracom's worldwide headquarters is located in Rochester, New York. Spectracom is an ISO 9001:2000 registered company. For more information, visit www.spectracomcorp.com

About DSPCon, Inc.
DSPCon, Inc. is a world leader in the development of real-time data acquisition and analysis systems for use in a variety of applications including acoustic analysis, shock and vibration analysis, rotating machinery analysis, digital recorder applications, radar and sonar applications, and software radio systems. DSPCon, Inc. is an ISO 9001:2000 registered company. For more information, visit www.dspcon.com.

About KSI
KSI, a division of DSPCon, Inc., designs and manufactures high-performance embedded I/O and computing products for the military, aerospace, telecommunications, and test and measurements markets. KSI also offers engineering services to design and manufacture custom boards. For more information, visit www.ksi-corporation.com.