Market Overview

World-Leading Ethernet Cable Supplier Zhaolong Now Offers Spectra7 Based Active Copper Cable Assemblies


High-Speed Ethernet Products Now Sampling to China-Based Data Center

Spectra7 Microsystems Inc. (TSX:SEV) ("Spectra7" or the "Company"), a
leading provider of high-performance analog semiconductor products for
broadband connectivity markets, today announced that Zhaolong
Interconnect Technology Co. is now offering data center cable assemblies
featuring Spectra7's embedded GaugeChangerTM chips. Zhaolong
is currently producing NRZ 25G SFP28 and 100G QSFP28, as well as PAM4
50G SFP56 and 200G QSFP56 versions with 400G QSFP-DD cables expected to
be available later this quarter.

"China's data center market is developing extremely fast, and at
hyper-scale all data center customers are more sensitive to the power
and cost of high-speed interconnects than before," said Zhaolong Vice
General Manager Tony Yao. "We are getting strong interest from them in
Spectra7's technology and our significantly smaller-gauge high-speed
cables known as Microlink™ technology."

There are three main challenges for 400G networking interconnects from
the perspective of China's largest hyperscalers, known as BAT (Baidu,
Alibaba and Tencent). First and most challenging is the rapid increase
in power dissipation of optical interconnects at these higher speeds.
Second is the difficult challenge of the increased density. Finally,
there is the serious issue of dramatically higher costs of optics at

Spectra7's Active Copper Cable (ACC) technology addresses all three of
these challenges by embedding small analog IC's in copper cables to
enable them to be thinner and longer, thus replacing Active Optical
Cables (AOCs) for lengths up to 7m for 400G interconnects.

"We believe that early adopters and first movers in the China market
will accelerate the acceptance of our data center products," said
Spectra7 CEO Raouf Halim. "We are thrilled to be working with a quality,
high-volume manufacturer like Zhaolong and expect to see significant
business with them."

About GaugeChangerTM

GaugeChangerTM is an innovative and disruptive technology
that allows copper to extend much longer lengths without the cost and
power penalty of optics. It works equally well at 25Gbps NRZ and 50Gbps
PAM4 enabling new connector standards of 100/200/400 Gbps.

About Zhaolong Interconnect Technology Co., Ltd.

Zhejiang Zhaolong Interconnect Technology Co., Ltd. was established in
1993 and has more than 25 years of experience in R&D and manufacturing
of the cable and interconnects industry. It is a national high-tech
enterprise in the cable industry. It is a national standard drafting
unit and a research and production base of the Shanghai Electric Cable
Research Institute. It is a full-fledged member of China Communications
Standards Association, National Information Technology Standardization
Association and China Robotics Association. Zhaolong has built a
world-leading information and control cable and interconnects
manufacturing base, covering an area of about 140,000 square
meters. With an annual output of more than 3 million kilometers and 5
million units of various types of cable and interconnects. For more
information, please visit

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

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, 2017. 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.

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