Tencent Plans to Expand Use of Spectra7 Technology

Demonstration at ODCC in Beijing Highlights 200Gbps and 400Gbps Active Copper Cables for Future Data Center Deployments

(TSX-V:SEV) Spectra7 Microsystems Inc. (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced that Tencent demonstrated 200Gbps and 400Gbps Active Copper Cables (ACCs) enabled by Spectra7’s technology at China’s Open Data Center Committee (ODCC) conference held in September in Beijing.

Tencent recently completed qualification of these 200Gbps Spectra7 enabled cables and has now begun an initial trial run network deployment. Tencent is already using Spectra7 enabled ACC cables in its data centers for 25Gbps server interconnect.

The 200Gbps demonstration showed a Spectra7 enabled ACC “splitter cable” connecting from a 200Gbps top-of-rack (ToR) switch port to 2 separate servers with 100Gbps ports. The signaling in the cable was 50Gbps PAM4. This architecture is being widely planned in China for next generation deployments. Tencent also demonstrated a 400Gbps QSFP-DD PAM4 Spectra7 based ACC for future applications.

“We are thrilled that Tencent is expanding the use of Spectra7 technology in future data center deployments,” said Spectra7 CEO Raouf Halim. “They are a huge proponent of our GaugeChangerTM product, and we appreciate their visionary technology leadership.”

GaugeChanger™ is an innovative and disruptive technology that allows copper to extend much longer lengths without the cost and power penalty of optics. It works equally well at 25 Gbps NRZ and 50 Gbps PAM4 enabling new connector standards of 100, 200 and 400 Gbps.

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 technical support location in Dongguan, China. For more information, please visit www.spectra7.com.

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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, those regarding the Company's future financial position and results of operations, outlook, strategy, proposed acquisitions, 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 and annual MD&A for the year ended December 31, 2019. 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.

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Spectra7 Microsystems Inc. James Bergeron Investor Relations 289-512-0541 ir@spectra7.com

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

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