Demo at DesignCon 2024 Highlights Spectra7’s GC1122 Chips Embedded in Volex QSFP-DD High Speed Cable Assemblies

February 6, 2024 SAN JOSE, 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, and Volex plc (“Volex”), a global leader in high-speed data center interconnect products, announce that they successfully demonstrated industry leading performance of 800G Active Copper Cables (ACC’s) at this year’s annual DesignCon Conference Exhibition held last week in Santa Clara, California.

In the demonstration, Volex 800Gbps QSFP-DD ACCs with Spectra7’s embedded GC1122 chips successfully interoperated with test equipment from several vendors to produce very robust low pre-FEC bit error rates (BERs) significantly below standard required BER.

“New network architectures and increased server speeds are causing the market for connectivity 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. We expect the market to quickly exceed US$1B and can exceed US$3B by 2026, which is far higher than the DAC market it will replace. Active copper cables also help support the US$22B, and growing, Ethernet market in the data center, which is critical for the future growth of Cloud and AI/ML applications.”¹

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

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

NOTES:

¹ 650Group blog post (https://650group.com/blog/active-copper-market-poised-to-take-significant-share-of-short-distance-market-in-the-data-center/) and 650Group Cloud CAPEX, Data Center, and Ethernet Switch 2Q23 Results and September Forecast. This is forward looking information. See “Cautionary Notes.”

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 28 manufacturing locations with a global workforce of over 13.500 employees across 24 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 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

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