Spectra7 DreamWeVR^TM Chipset Production Shipments Ramping; Program Duration Anticipated to Be Over Multiple Years

May 5th, 2022 SAN JOSE, CA - (PR NewsWire) – (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for data centers, 5G infrastructure, virtual and augmented reality, and other connectivity markets, announced that it has entered production of a significant design win previously awarded by a major consumer game VR platform provider. Spectra7’s advanced DreamWeVR^TM chipset of 3 chips will be used in the tethered interconnect between the game platform and the virtual reality (VR) head mount display (HMD).

Spectra7 has worked with the customer to secure raw materials and production capacity aligned to the intended delivery schedule of the DreamWeVR^TM chips. Production is expected to ramp and is aligned with the Company’s previously announced growth objectives.

“We are extremely pleased that our DreamWeVR^TM chipset was chosen by this global tier-one game platform maker for their second-generation VR headset,” said Spectra7 CEO Raouf Halim. “We have worked closely with them and their cable partners for several years to bring this win to fruition. Initial production shipments of our chipset have started and will continue to ramp throughout the duration of this program, which we anticipate will be over multiple years.”

The VR game industry is currently in the early stages of adoption and deployment in a market that, according to Fortune Business Insights,¹ is projected to grow at a CAGR of 31.4% from $7.9 billion in 2021 to $53.4 billion in 2028. While todays VR experiences are increasingly immersive, next generation systems promise to deliver significantly lighter weight, higher performance and dramatically higher bandwidth feeding next generation ultra-high-resolution multi-display systems.

Each of the chips used in this tethered interconnect feature Spectra7’s SpectraLinear^TM EQ architecture that builds on previous advanced patented analog equalization technology developed by the Company while incorporating a high linearity output driver that works in a highly collaborative way with device systems-on-a-chip ("SOC") and enables the highest total link performance.

Spectra7’s DreamWeVR^TM chips support 4K HDR at frame rates up to 120Hz and multi-camera tracking data being sent back to the platform. The Spectra7 chips are also ultra-low power and packaged in tiny chip scale packages, allowing them to be embedded in slim Type-C connectors.

¹ Fortune Business Insights

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 data centers, 5G infrastructure, virtual and augmented reality, and other connectivity markets. Spectra7 is based in San Jose, California with a design center in Cork, Ireland and technical support location in Dongguan, China.

Neither the TSX Venture Exchange nor its regulation services provided (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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, statements regarding the anticipated revenue growth, the Company’s strategy, 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 Management’s Discussion and Analysis for the year ended December 31, 2021. 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.

For more information, please contact:

Matt Kreps/Jim Fanucchi
Darrow Associates
214-597-8200
ir@spectra7.com

Spectra7 Microsystems Inc.
Bonnie Tomei
Chief Financial Officer
669-212-1089
ir@spectra7.com

Spectra7 Microsystems Inc.
John Mitchell
Public Relations
650-269-3043
pr@spectra7.com