40 Gbit/s operation of a novel monolithically integrated wavelength converter consisting of a sampled grating DBR laser, a long SOA and a delay interferometer (DI)-MZI is reported. Error-free 40 Gbit/s wavelength conversion for three different probe wavelengths, and 10 Gbit/s intensity modulation by the DI-MZI for the optical label coding, are demonstrated.