Gennum Reports 2008 Third Quarter Results

31% Quarterly Revenue Growth Drives 20% Increase in Earnings Per Share from Continuing Operations

Burlington, Ontario (September 24, 2008) – Gennum Corporation (TSX: GND) today announced its unaudited financial results for the third fiscal quarter which ended August 31, 2008.

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

* basic and diluted

"Our third quarter performance underscores a consistent strengthening in our business as we delivered a sixth consecutive quarter of growth and improved profitability," said Dr. Franz Fink, President and CEO of Gennum. "We continue to receive positive customer response to our new, refreshed portfolio and this is resulting in continued healthy demand for our products. We are successfully expanding our customer base and securing new product and IP opportunities in Europe, Japan, Asia and North America. To maintain and build upon our market momentum, we remain focused on balancing the investment in new product development and core business activities with overall company profitability to deliver further growth and shareholder value."

Revenue of $33.5 million is up $8.0 million or 31% from $25.5 million in the third quarter of 2007 and up 2% from $33.0 million in the second 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 20% from the third quarter of 2007 and 6% over the second quarter of 2008.

New product introductions and developments

Since the commencement of the third quarter of 2008, we introduced a series of new products, participated in a new technology demonstration with an industry partner, completed the acquisition of ASIC Architect, Inc. and concluded a sale leaseback transaction involving our corporate headquarters.

• Test and Validation Equipment from Tektronix Leverages the Gennum 3Gb/s SDI Solutions - Tektronix, Inc., a leading supplier of test, measurement, and monitoring instrumentation, has implemented Gennum’s 3Gb/s equalizer solutions in its award-winning WFM7120 waveform monitor. The advanced monitoring equipment provides customers in the equipment design, manufacturing and broadcast industries with 3Gb/s SDI test and analysis capabilities helping ensure compliance to the standard and propelling the 3Gb/s market forward.
• Gennum 3Gb/s Solutions Selected for Ensemble’s Next-generation Broadcast Signal Generator - Ensemble Designs has selected the Gennum 3Gb/s transmit solution for its nextgeneration test signal generator (TSG), a critical piece of equipment used to distribute test signals in broadcast studios. The integrated, single-chip transmit solution from Gennum enabled Ensemble to deliver 3G design in less than three months.
• Expanded PCI Express® Portfolio with New Bridge for High Data Rate Embedded Applications - Industry’s first highly-integrated, four-lane PCIe bridge enables broadcast video designers to leverage the full potential of the PCIe standard with a low cost, turnkey solution and speed time-to-market by up to 80 percent.
• Gennum and IDT (Integrated Device Technology) Jointly Demonstrate High-Performance Embedded PCI Express® - Systems designers struggle to ensure signal integrity across PCIe Gen2 cables and backplanes. The joint demonstration by Gennum and IDT showcased the PCIe I/O expansion system using off the shelf components, one of the popular IDT PCIe Gen2 switching solutions and Gennum’s advanced repeater solution.
• New ActiveConnect™ Products Enable Industry’s Thinnest, Longest Reach HDMI Cables - The ActiveConnect GV8502 product is targeted at consumer cabling applications providing cable manufacturers with a cost-effective, high-quality semiconductor solution for the design of their thin HDMI consumer cables.
• ActiveConnect Adopted by Tributaries® for Long-Reach HDMI Extender - Tributaries® Cable, a leading supplier of high-value, high-performance cabling and accessories for custom home audio and home-theater installation, has deployed a new extender based on the ActiveConnect solution. Fully compatible with the latest HDMI 1.3 standard, the Tributaries HXMini5 extender can reliably transport high-definition multimedia interface (HDMI) video with audio more than 300 feet with no loss of video or AV quality.
• Acquisition of ASIC Architect, Inc. Accelerates Product Development and Broadens IP Offering - The combination of ASIC Architect controller and bridge IP cores and the Snowbush Microelectronics IP PHY cores provides a complete high-speed interconnect solution. Additionally, with added controller IP and embedded system expertise, Gennum can more quickly deliver new, highly-integrated products to capitalize on high-growth consumer connectivity markets, while further securing market leadership in its traditional video and data communication segments.
• Completed Sale and Leaseback of Burlington, Canada Headquarters - Corporate headquarters sold for $13.5 million (CDN) cash to LPF Realty Office Inc. This transaction enables Gennum to better optimize its investments and fund more strategic projects that accelerate company growth and new product development.

Dividend
Gennum’s Board of Directors has declared a regular cash dividend of 3.5 cents per share Canadian to be paid on October 22, 2008 to shareholders of record on October 8, 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
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.