Major Cable Supplier to Serve Both North America and China Data Center Markets for Interconnect Speeds up to 800 Gbps and 1.6T bps

January 16, 2024 SAN JOSE, CA - (PR NewsWire) – (TSXV:SEV) Spectra7 Microsystems Inc. Spectra7 Microsystems Inc. (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced that it has received its first order for production GC1122 chips supporting Active Copper Cables (ACCs) operating at speeds up to 800 Gbps and 1.6 Tbps. The order has come from a major China cable supplier who serves both the North America and China data center markets.

“We are excited to receive the first order for our production GC1122 chips,” said Spectra7 CEO Raouf Halim. “Cables using these chips will be used in qualification at major Hyperscalers in both North America and China, and continues our progress with hyperscale data center customers deploying the most advanced implementations, such as artificial intelligence. Hyperscalers are increasingly sensitive to the high power requirements for other cabling options, which can exceed the power required by the switch itself. Spectra7’s ACC cables provide a unique solution to this challenge and reduce both the capital cost and operating cost of a hyperscale data center.”

“We expect these qualification activities to be complete in Q2 in order to support significant deployments in the second half of 2024 at several Hyperscalers,” said Mr. Halim. “We also believe the ACC connectivity market opportunity is estimated to reach $1 billion by 2027¹.”

Spectra7’s analog based GaugeChanger^TM GC1122 chips are used in Active Copper Cables (ACCs) and offer significant cost, size and energy consumption savings vs. competing Active Electrical Cables (AECs) and Active Optical Cables (AOCs) that use Digital Signal Processing (DSP) technologies.

NOTES:

¹ Spectra7 internally generated model based on 650Group silicon chipsets for Ethernet optical transceivers and active cable alternatives posted July 2023. This is forward looking information. See “Cautionary Notes.”

ABOUT SPECTRA7 MICROSYSTEMS INC.

Spectra7 Microsystems Inc. is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in virtual reality, augmented reality, mixed reality, data centers and other connectivity markets. Spectra7 is based in San Jose, California with a design center in Cork, Ireland and a technical support location in Dongguan, China.

Neither the TSX Venture Exchange nor its regulation services provided (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTES

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, the Company’s strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company’s management’s discussion and analysis for the year ended December 31, 2022. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

For more information, please contact:

Matt Kreps
Darrow Associates
214-597-8200
ir@spectra7.com

Spectra7 Microsystems Inc.
Dave Mier
Interim Chief Financial Officer
925-858-7011
ir@spectra7.com