Spectra7’s GC1122 GaugeChanger^TM Chips moving to Production this Year

January 31st, 2023 SANTA CLARA, CA - (PR NewsWire) – (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced that it will partner with Volex plc (“Volex”) to demonstrate Spectra7’s new 112G PAM4 GaugeChanger^TM chip intended for next generation 800Gbps data center interconnects at this year’s annual DesignCon Conference and Exhibition being held in Santa Clara, CA from February 1-2, 2023. The demonstration will highlight a Volex 3-meter 28AWG Active Copper Cable with Spectra7’s GC1122 ICs.

“New network architectures and increased server speeds are causing the connectivity market inside the data center to embrace active solutions,” said Alan Weckel, Founder and Technology Analyst with 650 Group. “By 2026, we expect over 70% of the Cloud server market to be active copper. From a revenue perspective, the market will quickly exceed US$1B and can exceed US$3B by 2026, far higher than the DAC market it will replace. Active copper cables also help support the US$20B, and growing, Ethernet market in the data center which is critical for the future growth of Cloud and AI/ML applications.”

“We are proud to have Volex as a partner for 800G interconnects using our GaugeChanger^TM ICs," said Spectra7 CEO Raouf Halim. "We see strong demand from customers for the low power cost effective 800G cables that we are jointly bringing to the hyperscale data center market."

The GC1122 is the latest addition to the GaugeChanger^TM product line and extends the data rate from 56 to 112Gbps per lane. Since the GC1122 is analog and highly linear, dynamics such as line rate adjustment, multi-level signaling, intermittent line silence, transmit pre-emphasis or amplitude adjustment and receiver adaptivity are fully preserved. GC1122 chips are now sampling to leading cable partners and end customers.

Spectra7’s GaugeChanger^TM is an innovative technology that allows copper to extend much longer lengths without the cost and power penalty of optics or DSP based retimed copper solutions. It works equally well at 25G NRZ, 56G PAM4 and 112G PAM4 signaling, enabling Ethernet interface standards of 100, 200, 400, 800Gbps and 1.6Tbps.

DesignCon is the premier high-speed interconnect and system design conference attended by engineers from around the world. Spectra7 will be exhibiting in booth #509.

ABOUT VOLEX

Volex plc (AIM:VLX) is a global leader in integrated manufacturing for performance-critical applications and a supplier of power products. Volex serves a diverse range of markets and customers, with particular expertise in cable assemblies, higher-level assemblies, data center power and connectivity, electric vehicles, and consumer electricals. Volex is headquartered in the UK and operates from 19 manufacturing locations with a global workforce of over 8,000 employees across 22 countries. Volex’s products are sold through its own locally based sales teams and through authorized distributor partners to Original Equipment Manufacturers ('OEMs') and Electronic Manufacturing Services ('EMS') companies worldwide. All of the products and services that Volex offers are integral to the increasingly complex digital world in which we live, providing power and connectivity from the most common household items to the most complex medical equipment. For more information, please visit www.volex.com.

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 data centers, 5G infrastructure, virtual and augmented reality, and other connectivity markets. Spectra7 is based in San Jose, California with a design center in Cork, Ireland and 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, Mr. Weckel’s projections of the growth of the active copper cable market, 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 annual information form for the year ended December 31, 2021. 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.
Bonnie Tomei
Chief Financial Officer
669-212-1089
ir@spectra7.com

Spectra7 Microsystems Inc.
John Mitchell
Public Relations
650-269-3043
pr@spectra7.com