Mr. Dave Mier reports

SPECTRA7 ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDING DECEMBER 31, 2023

Spectra7 Microsystems Inc. has released its financial results for the year ended Dec. 31, 2023. A copy of the audited consolidated financial statements for the year ended Dec. 31, 2023, and the corresponding management's discussion and analysis will be available under the company's profile on SEDAR+. Unless otherwise indicated, all dollar amounts in this press release are expressed in U.S. dollars.

Fourth quarter and full-year 2023 financial highlights:

• Fourth quarter 2023 revenue was $300,000. Full-year 2023 revenue was $9.9-million, or approximately 88 per cent of the $11.3-million in the prior year.
• Full-year gross margin was 57 per cent, compared with 50 per cent in the prior year.
• Full-year non-international financial reporting standard operating expenses were $10.7-million, up from $8.8-million in 2022.
• Basic and diluted loss per share for the year was 21 cents, compared with a basic and diluted loss per share of 21 cents in the prior year.
• EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the full year was $4.1-million, compared with an EBITDA loss of $2.2-million for the prior year.

As previously announced, the company expects first quarter 2024 revenue to be approximately $750,000, compared with $3.1-million for the first quarter of 2023, as a result of the continuing slower data centre buildout activity in China.

The company previously announced that it has limited liquidity and is exploring alternatives to address the situation, including emergency financing, a restructuring of the company's capital, a sale of the company, a merger or other business combination. Although focused on financing and restructuring its capital, the company continues to work with its advisers in pursuing all alternatives. There can be no assurances that any of the explored alternatives will be successful.

About Spectra7 Microsystems Inc.

Spectra7 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 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.

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