Gennum and Sigma Designs Reach Definitive Agreement for Purchase of VXP® Image Processing Business

BURLINGTON, Ontario - January 3, 2008 - Gennum Corporation (TSX: GND) and Sigma Designs (Nasdaq: SIGM) announced today the companies have reached a definitive agreement for Sigma’s purchase of Gennum’s VXP® image processing business. Gennum announced its intention to explore strategic alternatives for its VXP Group in August 2007. Today’s milestone is part of Gennum’s ongoing strategy to focus on delivering proven optical, analog and mixedsignal solutions for the video broadcast, data communications and consumer connectivity markets.

"We are intently focused on closely collaborating with our customers to deliver compelling and innovative solutions for the video broadcast, consumer and data communications markets and turning our customers’ visions into a reality," said Dr. Franz Fink, President and CEO of Gennum. "The sale of the VXP Group streamlines our organization so we can continue to aggressively pursue opportunities in high-growth markets requiring optical, analog and mixedsignal products."

VXP is one of the most advanced single-chip image processors available today delivering crisp, natural looking, artifact-free images on displays of any size. Advanced image processing algorithms incorporated into each VXP integrated circuit (IC) ensures outstanding image quality for the consumer display, television and video projection markets.

"Gennum’s innovative line of VXP image processing products and skilled VXP design team will allow us to expand into the professional market and add broadcast studio quality to our IC offerings for high-volume consumer applications in set-top boxes for IPTV, high-definition disc players and digital televisions," said Thinh Tran, President and CEO, Sigma Designs. "The addition of the VXP Group’s leading video processing further extends Sigma’s world leadership in multimedia SoC solutions."

Sigma will acquire all aspects of the VXP Group including, but not limited to, products, and intellectual property. Approximately 46 employees will be joining Sigma Designs as part of the sale and the VXP Group, headed by David Lynch, plans to remain in Burlington. The transaction, which is subject to customary closing conditions, is anticipated to be completed by mid-February 2008. Cash proceeds from the sale of the VXP business are approximately U.S. $18 million.

This is the third sale of non-core assets over the past six months. As previously announced, Gennum's hearing instruments products and manufacturing operations were sold to Sound Design Technologies, a Gores Equity portfolio company, in October 2007 for approximately U.S. $12.5 million, while Gennum's consumer headset business was sold to CellPoint AB in August 2007. Gennum has also begun to build around its core capabilities in optical and analog and mixed-signal portfolio as it completed its acquisition of Snowbush Microelectronics in October 2007 for approximately CDN $24 million.

About Gennum
Gennum Corporation (TSX: GND) designs innovative semiconductor solutions and intellectual property (IP) cores for the world’s most advanced consumer connectivity, enterprise, video broadcast and data communications products. Leveraging the company’s proven optical, analog and mixed-signal products and IP, Gennum enables multimedia and data communications products to send and receive information without compromising the signal integrity. An award winner for advances in high definition (HD) broadcasting, Gennum is headquartered in Burlington, Canada, and has global design, research and development and sales offices in Canada, Mexico, Japan, Korea, Germany, United States, Taiwan, India and the United Kingdom. www.Gennum.com.

Gennum Media Contact:
Keri Fraser
Gennum Corporation
613-270-0458 x 2909
keri.fraser@gennum.com

Gennum Investor Relations Contact:
Gord Currie
Senior Vice-President, Finance & Administration and CFO
Gennum Corporation
(905) 632-2999 x3060
gord.currie@gennum.com

Caution Regarding Forward-Looking Information
This news release contains statements which constitute forward-looking statements. These forward-looking statements are not descriptive of historical matters and refer to management’s expectations or plans. These statements include but are not limited to statements concerning: Gennum’s plans and expectations relating to improvements in profitability and cash flow and the achievement of business model targets and levels, the reduction of corporate and operations costs and capital expenditures and marketing, sales and administration expenses; expected operational expense savings and estimated severance and related costs, and the estimated charges relating thereto and to impairments; and Gennum’s business objectives and future financial performance and prospects. Inherent in forward-looking statements are risks and uncertainties beyond Gennum’s ability to predict or control including but not limited to risks associated with: Gennum’s ability to complete the actions referred to in this news release within anticipated timeframes and to successfully realize the expected improvements therefrom; compliance with local employment legislation and requirements and the possible initiation and outcome of legal proceedings; and other risks facing Gennum’s business including competitive and pricing pressures and economic cycles in the semiconductor industry, fluctuations in foreign exchange rates and their potential adverse impact upon Gennum’s financial results, and Gennum’s ability to attract and retain key personnel necessary for its business. Please also refer to the sections entitled “Risks and Uncertainties” in Gennum’s 2008 annual report and “Risk Factors” in Gennum’s annual information form dated February 23, 2009. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect including but not limited to the following assumptions: Gennum is able to successfully complete the actions referred to herein within the timeframe and with associated expense savings generally as anticipated and without unforeseen significant costs or delays; assumptions relating to severance and related costs and to charges; customer demand for Gennum’s products remains generally as anticipated; Gennum’s is able to execute its product roadmap without delays or disruptions having a material impact on Gennum; Gennum’s expectations relating to competitive pressures, including pricing pressures, are not materially incorrect; significant fluctuations in foreign exchange rates which significantly adversely affect Gennum’s financial results do not arise; and Gennum is able to continue to retain and attract technical and other key employees. Readers are cautioned that the foregoing list of important factors and assumptions is not exhaustive. Forward-looking statements are not guarantees of future performance. Events or circumstances could cause Gennum’s actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Consequently, readers should not place any undue reliance on these forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. In addition, these forward-looking statements relate to the date on which they are made. Gennum disclaims any intention or obligation to update or revise any forward-looking statements or the foregoing list of factors, whether as a result of new information, future events or otherwise, except to the extent required by law.