Mr. Dave Mier reports

SPECTRA7 RECEIVES INITIAL ORDER FOR PRODUCTION GC1122 CHIPS

Spectra7 Microsystems Inc. has received its first order for production GC1122 chips supporting active copper cables (ACCs) operating at speeds up to 800 Gbps (gigabytes per second) and 1.6 Tbps (terabytes per second). The order has come from a major China cable supplier who serves both the North America and China data center markets.

"We are excited to receive the first order for our production GC1122 chips," said Spectra7 CEO Raouf Halim. "Cables using these chips will be used in qualification at major Hyperscalers in both North America and China, and continues our progress with hyperscale data center customers deploying the most advanced implementations, such as artificial intelligence. Hyperscalers are increasingly sensitive to the high power requirements for other cabling options, which can exceed the power required by the switch itself. Spectra7's ACC cables provide a unique solution to this challenge and reduce both the capital cost and operating cost of a hyperscale data center."

"We expect these qualification activities to be complete in Q2 in order to support significant deployments in the second half of 2024 at several Hyperscalers," said Mr. Halim. "We also believe the ACC connectivity market opportunity is estimated to reach $1 billion by 20271."

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

Notes:

1 Spectra7 internally generated model based on 650Group silicon chipsets for Ethernet optical transceivers and active cable alternatives posted July 2023. This is forward looking information. See "Cautionary Notes."

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. For more information, please visit www.spectra7.com.

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