Mr. Vivek Rajgarhia reports

POET TECHNOLOGIES AND BEIJING FEIYUNYI TECHNOLOGY REACH AGREEMENT ON PURCHASE OF CUSTOM OPTICAL ENGINES FOR TELECOM INDUSTRY

Poet Technologies Inc. has reached an agreement with Beijing FeiYunYi Technology Ltd. (BFYY) to design optical engines for deployment in optical modules in the telecom market globally, beginning in China. The agreement, valued at up to $1-million over a two-year period, includes NRE for Poet and an initial purchase order for 10,000 units that will be used to sample customers.

BFYY was recently formed for the purpose of selling modules using Poet-designed optical engines sourced from Poet's joint venture company, Super Photonics Xiamen (SPX). With deep connections to the telecom industry in China, BFYY is investing in assembly facilities to build, market and sell modules that will be competitive in the data centre market, specifically focused on large telecom service providers.

Poet has agreed to design a single-chip optical engine solution that incorporates complete transmit and receive functionalities for implementation in a 100G optical transceiver for BFYY's initial product offering. The unique single-chip solution, called Poet One, will offer significant performance advantages along with minimizing the transceiver design cycle time for BFYY. In addition to the cost benefits of Poet's wafer-scale assembly, the single-chip solution will enable BFYY to cost-effectively ramp to high-volume production. BFYY has forecasted optical engine purchases from SPX at over $30-million (U.S.) over a three-year period.

"The number of 5G and fibre-to-the-home (FTTH) subscribers in China is growing considerably. To keep up with the bandwidth demand several major service providers are exploring ways to transform their networks," said Wei Zhang (Wesley Zhang), chief executive officer of BFYY. "Top-tier service providers in China believe that transceivers with Poet's Optical Interposer technology can provide a cost-effective and scalable solution to achieve their network automation goals. BFYY plans to utilize its transceiver design and manufacturing capabilities along with the benefits of Poet's integration platform to quickly ramp to high-volume production."

"We are excited to work with BFYY on this initial product and plan to leverage their capabilities and business relationships with service providers to be part of the network transformation journey in China. We will continue to offer differentiated solutions to our customers for high-speed optical communications in data and telecommunications markets," said Vivek Rajgarhia, president and general manager of Poet and vice-chairman of SPX.

About Poet Technologies Inc.

Poet Technologies is a design and development company offering integration solutions based on the Poet Optical Interposer, a novel platform that allows the seamless integration of electronic and photonic devices into a single multichip module using advanced wafer-level semiconductor manufacturing techniques and packaging methods. Poet's Optical Interposer eliminates costly components and labour-intensive assembly, alignment, burn-in and testing methods employed in conventional photonics. The cost-efficient integration scheme and scalability of the Poet Optical Interposer brings value to any device or system that integrates electronics and photonics, including some of the highest-growth areas of computing, such as artificial intelligence (AI), the Internet of Things (IoT), autonomous vehicles, and high-speed networking for cloud service providers and data centres. Poet is headquartered in Toronto, with operations in Allentown, Pa., Shenzhen, China, and Singapore.

We seek Safe Harbor.