Gennum Reports 2008 Second Quarter Results

40% Quarterly Revenue Growth Drives 35% Increase in Earnings Per Share from Continuing Operations

Burlington, Ontario (June 25, 2008) – Gennum Corporation (TSX: GND) today announced its unaudited financial results for the second fiscal quarter which ended May 31, 2008.

(in millions of U.S. dollars except per share amounts)

* fully diluted

"Our focused efforts to balance our investment in accelerating new product development and deliver shareholder value have resulted in excellent double-digit revenue growth and profitability," said Dr. Franz Fink, President and CEO of Gennum. "The investments we have made over the past quarters in new products have resulted in solid growth in SDI and Optical markets. Additionally, IP sales continue to meet expectations and have secured new customer wins by leveraging our global sales infrastructure. We will continue to execute our focused strategy balancing investment in new products and core business activities with overall company profitability to deliver greater shareholder value."

Revenue of $33.0 million is up $9.4 million or 40% from $23.6 million in the second quarter of 2007 and up 10% from $30.1 million in the first quarter of 2008. Gross margin as a percentage of revenue remained in the industry’s top tier as lower average selling prices were offset by lower production costs and a higher mix of IP revenue. Earnings per share from continuing operations grew 35% from the second quarter of 2007 and 30% over the first quarter of 2008.

New Product Introductions
In the second quarter of 2008, Gennum introduced a series of new products and participated in new technology demonstrations with industry partners.

• Industry’s First Single-Chip HD and 3 Gigabit per Second (Gb/s) Transmit and Receive Solutions - These highly integrated chips provide broadcast and professional video equipment manufacturers a complete SDI solution. The new transmitter and receiver offer over 30 percent savings in cost, power, and board area compared to existing HD solutions.
• Low Power, PCI Express® 2.0, Infiniband Repeater – We introduced the industry’s first re-timed repeater solution that integrates a clock and data recovery (CDR) component. The four-channel GN1406 device supports PCI Express® (PCIe) 2.0 and Infiniband and is able to achieve superior jitter performance at the same power consumption for backplane and cable applications.
• New ActiveConnect™ Product to Enable Industry’s Thinnest, Longest Reach HDMI Cables - The new ActiveConnect™ GV8502 product provides cable manufacturers with a cost-effective, high-quality semiconductor solution for development of much thinner HDMI cabling solutions. This reduces bill-of-materials cost for cable manufacturers, and increases flexibility and ease-of-use for consumers and custom home theater installers.
• ActiveConnect™ Solution Showcased in Demonstration by Canare at NAB 2008 - Canare Corporation, a leading supplier of connector and cabling technology to the professional broadcast industry in Japan, hosted a technology demonstration that utilized our ActiveConnect™ solution to show full-rate high definition multimedia interface (HDMI) performance over 100 meters of coaxial cable.

Customer Updates

• The Gennum 3Gb/s video optical solution is featured in MultiDyne’s HD-3000 Series 3Gb/s Serial Digital Video Fiber Optic Transport Link.
• Gefen introduced its HDMI over RGB Extender in April that uses the Gennum ActiveConnect™ technology.

Dividend
Gennum’s Board of Directors has declared a regular cash dividend of 3.5 cents per share Canadian to be paid on July 23, 2008 to shareholders of record on July 9, 2008. The dividend is considered an "eligible dividend" for tax purposes.

Download the complete financial results (PDF)

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
<!-- Director of Corporate Communications
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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.