Market Overview

Spectra7 Launches Eco-Link Initiative to Lower Hyperscale Data Center Carbon Footprint

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Cloud Operators Can Reduce Carbon Emissions by Deploying Active
Copper Interconnect Technology – And Reduce Capital Expenses at the Same
Time

Spectra7 Microsystems Inc. (TSX:SEV) ("Spectra7" or the "Company"), a
leading provider of high-performance analog semiconductor products for
broadband connectivity markets, today launched its Eco-Link initiative
aimed at reducing the carbon emissions in data centers. The Company
believes that high-speed interconnects are becoming one of the fastest
growing contributors to data center carbon emissions. Spectra7's
Eco-Link initiative aims to reduce carbon emissions by 1 million metric
tons by 2022.

"The Green Data Center Market is projected to reach a revenue of over
USD $25 billion by 2024. The high focus of government bodies across the
world pushing organizations to reduce their carbon footprint and
electricity consumption is driving the demand for the green data center
market. For instance, the growth of the Chinese digital economy and the
rise in conventional data center construction projects in the country
have led to the government launching initiatives to enforce the adoption
of energy-efficient technologies," reports Digvijay Deshmukh, Researcher
at Marketstudyreport.com1.

Spectra7's GaugeChanger enabled Active Copper Cables (ACCs)
can replace Active Optical Cables (AOCs) for lengths up to 7m, which
account for over 90% of the links in a typical data center. At a savings
of 28 watts per interconnect, this adds up to almost 900 watts per 32
port Top-of-Rack switch (which depending on electricity prices2
could reduce operating expenses by up to $20M a year per data center). A
large data center using Spectra7 technology can save several megawatts
and over 10,000 metric tons3 per year of carbon emissions by
incorporating ACCs over AOCs.

"We believe that our GaugeChanger ACCs offer significant power
advantages over AOCs," said Spectra7 CEO Raouf Halim. "We are launching
our Eco-Link initiative at this time to help accelerate acceptance of
our technology and expect that initial production of our GaugeChanger
ACCs will start in the fourth quarter of this year."

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 design centers in Markham, Ontario, Cork, Ireland, and
Little Rock, Arkansas. For more information, please visit www.spectra7.com.

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, 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 MD&A for the year ended
December 31, 2016. 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.

Reference:

1
https://trueindustrynews.com/green-data-center-market-industrial-applications-witness-fastest-growth-up-to-2024/

2
www.datacenterknowledge.com
(Annual cost of $5,000 per KW)

3
Greenhouse Gas Equivalencies Calculator
https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

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