Mr. Dave Mier reports

SPECTRA7 ANNOUNCES INTEREST PAYMENT IN SHARES

Spectra7 Microsystems Inc. intends to issue an aggregate of 185,682 common shares in the capital of the corporation at a deemed issuance price of 40.5 cents per common share to settle in full $75,207 in interest owing to the holders of its outstanding 9.0 per cent unsecured convertible debentures. Unless otherwise indicated, all dollar amounts in this press release are expressed in Canadian dollars.

The debentures were issued on Sept. 14, 2023, and bear interest at a rate of 9.0 per cent per annum, payable semi-annually in arrears on the last business day of June and December. The interest obligation may be satisfied either in cash or in common shares, at the corporation's option.

All common shares issued in connection with the interest payment are issued in reliance on certain prospectus exemptions available under securities legislation and are subject to a four-month statutory hold period.

Pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, the interest payment constitutes a related party transaction as related parties of the corporation hold debentures. The corporation is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101, as the fair market value of the common shares issued in the interest payment does not exceed 25 per cent of the corporation's market capitalization. The interest payment was approved by all of the independent directors of the corporation. The interest payment remains subject to final acceptance by the TSX Venture Exchange.

About Spectra7 Microsystems Inc.

Spectra7 Microsystems is a high performance analogue 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 centres and other connectivity markets. Spectra7 is based in San Jose, Calif., with a design centre in Cork, Ireland, and a technical support location in Dongguan, China.

We seek Safe Harbor.