Tencent and Spectra7 Launch CRX Consortium to Accelerate Adoption of Active Copper Cable Technology

Specification and Initial Deployments Expected in the Second Half of
2019

BEIJING & SAN JOSE, Calif.–(BUSINESS WIRE)–Spectra7 Microsystems Inc. (TSX:SEV) (“Spectra7” or the “Company”), a
leading provider of high-performance analog semiconductor products for
broadband connectivity markets, announced that Tencent
(TCEHY:OTC)
and Spectra7 have launched the CRX (Copper Reach Extension) Consortium
to accelerate the adoption of active copper cable products using
technology from Spectra7. Additional founding members will include a
complementary mix of partners spanning the entire supply chain for data
centers. The complete list of founding members is expected to be
finalized in the coming weeks. The announcement took place today at the
Optinet China Conference in Beijing.

“Tencent has worked together with Spectra7 to create the CRX Consortium
to accelerate the adoption of analog active copper cable technology,”
said Tencent Sr. Network Architect Dr. Min Sun. “We chose this analog
active copper cable approach over competing technologies because of its
low power, low cost and fast link-training. Going forward we plan to use
only passive and active copper cables for our server connections.”

As one of China’s largest tech companies, Tencent continues its rapid
expansion of data centers around the world with a keen interest in
improving efficiency. The formation of the CRX Consortium will
accelerate the adoption of advanced connectivity technology from
Spectra7 that will allow significantly lower cost and power
interconnects to be used in new data centers.

“Tencent’s data center growth is impressive and their leadership in this
important technology category is welcomed,” said Spectra7 CEO Raouf
Halim. “We are extremely pleased to have worked with Tencent in the
formation of the CRX Consortium and to be part of their network
infrastructure upgrade plans.”

Luxshare-ICT and Foxconn Interconnect Join CRX Consortium

“Spectra7 is integral in helping to drive the future of the data center
interconnects industry, and we are proud to be collaborating with them
and Tencent in the formation of the CRX Consortium,” said Jinhua Chen,
Data Center GM at Luxshare-ICT.

“Our data center partners are continuously making requests for longer
reach, lower power, and lower cost cable solutions that cannot be
achieved with existing passive or optical technology, said Steve
Shultis, General Manager at Foxconn
Interconnect Technology’s CMIT business unit. “We are thrilled to be
partnering with Tencent and Spectra7 in formation of the CRX Consortium.”

About the CRX Consortium

The CRX Consortium aims to address the rising cost and power of optical
interconnects and the decreasing reach of passive copper as data rates
throughout the data center increase. Initial focus will be on 25G
Ethernet connections between servers and switches. The consortium is
developing a specification for these cables that is expected to be
released in Q4 of this year. Subsequent specifications will be developed
for 50G, 100G, 400G and 800G Ethernet as well as other evolving
protocols. The specifications will cover both NRZ signaling as well as
PAM4 signaling.

The initial CRX specification release is planned for Fall 2019; CRX
consortium members plan to begin mass deployment of cables complying
with the CRX specification later this year.

The CRX Consortium’s mission is to promote and accelerate the adoption
of interconnects that use Spectra7’s active copper cable technology. The
group will develop a standard that will allow cables from different
suppliers to meet stringent requirements that will enable broad
interoperability between network equipment. For more information, visit www.crxconsortium.org

About Tencent

Tencent uses technology to enrich the lives of Internet users. Every
day, hundreds of millions of people communicate, share experiences,
consume information and seek entertainment through our integrated
platforms. Tencent’s diversified services include QQ, Weixin/ WeChat for
communications; Qzone for social networking; QQ Game Platform for online
games; QQ.com and Tencent News for information and Tencent Video for
video content. Tencent was founded in Shenzhen in 1998 and went public
on the Main Board of the Hong Kong Stock Exchange in 2004. The Company
is one of the constituent stocks of the Hang Seng Index. Tencent seeks
to evolve with the Internet by investing in innovation, providing a
mutually beneficial environment for partners, and staying close to
users. For more information, visit http://www.tencent.com

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 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, 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.

Contacts

Spectra7 Microsystems Inc.
Sean Peasgood
Investor
Relations
647-503-1034
ir@spectra7.com

Spectra7 Microsystems Inc.
Darren Ma
Chief Financial
Officer
669-284-3170
pr@spectra7.com