Gennum Reports 2009 First Quarter Results

Burlington, Ontario (March 25, 2009) – Gennum Corporation (TSX: GND) today reported unaudited financial results for the first quarter of fiscal 2009.

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

Overall consolidated revenue in the first quarter of 2009 was $19.4 million, lower by $10.7 million or almost 36% compared to the first quarter of 2008 due to the global economic downturn. However, operations performed at a virtual breakeven level and produced positive EBITDA*, despite the severe economic conditions. The primary difference between the breakeven operating performance and our net loss from continuing operations was other expense of $1.3 million. Included in other expense was $1.9 million of losses realized on foreign currency hedging contracts. Net loss from continuing operations was $0.8 million, or earnings per share of $(0.02), compared to net earnings from continuing operations of $4.6 million, or earnings per share of $0.13, for the same period in 2008.

"As with many of our peers in the semiconductor industry, our first quarter results were impacted as a result of weaker customer demand and corrective inventory actions companies have taken due to the downturn in the global economy," said Dr. Franz Fink, President and CEO of Gennum Corporation. "We continue to aggressively manage our operating expenses and with the sale of the BST business we will be able to further improve our overall cost structure. Looking ahead, we are seeing early signs of our target markets beginning to stabilize and show less volatile swings in demand. We remain absolutely committed to our growth strategy of expanding our market presence and funding R&D projects to deliver more new products. Our recent announcement of signing a definitive agreement to acquire Tundra Semiconductor only underscores this commitment. Furthermore, our continued solid financial position allows us to be flexible in our investments to drive future growth. I am confident that we have the resources to continue to invest in key projects that offer the greatest opportunity to deliver value to our customers and shareholders."

* "EBITDA" is a non-GAAP financial measure which does not have any standardized meaning under Canadian generally accepted accounting principles ("GAAP") and is therefore unlikely to be comparable to similar measures presented by other issuers. We define EBITDA as earnings before interest, taxes, depreciation and amortization (related to intangible assets and stock-based compensation). Further information regarding this term, a description of why management believes it is a useful measure, and a quantitative reconciliation to the most directly comparable measure calculated in accordance with GAAP is set forth under the heading "Non-GAAP Reporting" in our MD&A for the quarter ended February 28, 2009.

New product introductions and business developments

In the first quarter of 2009, Gennum launched several new products to further expand its CDR, PCI Express and IP portfolio. Gennum also introduced a new HD interface and products for professional and industrial applications. In early March, Gennum closed the sale of its barium strontium titanate (BST) group and assets to Paratek Microwave. Gennum took a significant step in the advancement of its growth strategy by announcing that it signed a definitive agreement to acquire Tundra Semiconductor.

• Gennum Signs Definitive Agreement to Acquire Tundra Semiconductor - On March 19, Gennum and Tundra Semiconductor Corporation (TSX: TUN) announced they had entered into a definitive agreement providing for the acquisition by Gennum of all of the issued and outstanding shares of Tundra. This transaction, which combines two of Canada's leading high-tech companies, is valued at approximately Canadian $86 million. Assuming the completion of the transaction, which is subject to the satisfaction of a number of conditions, Gennum will have the ability to add new digital switch and bridge products and functionality to its portfolio, which is expected to build on Gennum's growth strategy of extending its high-speed signal integrity expertise and solutions to a broader set of markets.
• DVIGear Introduces HDMI Long Reach Coaxial Extender Based on Gennum's ActiveConnect™ Technology - DVIGear, a leading manufacturer of digital connectivity products, deployed a new high-definition multimedia interface (HDMI) coaxial extender based on Gennum's ActiveConnect™ technology. This new product is the ideal solution for all residential, commercial and industrial applications that require long distance routing of digital HDMI (and DVI) signals. The coax extender supports data rates of up to 10.2 gigabits per second (Gb/s) at distances up to 100 meters (330 feet) with no loss of audio or video quality.
• Gennum Delivers Industry's Highest Performance SFP+ Solutions - Enabling rapid time-tomarket of next-generation SFP+ copper and optical modules, Gennum introduced two new CDRbased reference design kits that facilitate the rapid development of high-performance Fibre Channel and Ethernet modules. The CDR-based reference design kits enable savings up to 1W and $40 per port in SFP+ systems.
• Gennum Pioneers First HD Video-over-Coax Interface for Surveillance, Industrial Imaging Applications - Gennum developed a new audio video (A/V) interface for professional and industrial applications, such as advanced video security and surveillance systems. Aviia™ (Advanced Video Interface for Industrial Applications) is a robust interface for high definition (HD) video over coaxial cable lengths up to 100 meters. Camera, DVR and monitor manufacturers can now develop low-cost, high-performance HD solutions, enabling customers to experience full bandwidth HD over their existing coaxial cables.
• Gennum Broadens Offerings for PCI Express Gen-1/2/3-based Embedded Applications - Expanding its high-performance PCI Express (PCIe) solutions and design platforms, Gennum unveiled two new PCIe products aimed at enabling high-speed embedded applications. The new PCIe re-driver, bridge solutions deliver up to 2X performance over existing solutions providing more options as this high-performance interconnect increasingly migrates to embedded communications for servers, storage, broadcast video, industrial control, medical and commercial off-the-shelf (COTS) applications.
• Gennum's Snowbush IP Group Delivers Industry's First Available USB 3.0 Integrated PHY and Controller IP - The IP group unveiled the industry's first USB 3.0 SuperSpeed PHY and controller solution which can be licensed immediately by system-on-a-chip (SoC) and system companies. According to research firm In-Stat, SuperSpeed USB products should begin to hit the market in the next 12 to 18 months, with growth rates exceeding 100 percent annually between 2009 and 2012. Gennum's Snowbush IP Group Enables Proliferation of PCI Express Gen 2 Products with Industry's First 9-port Switch IP Block - The fully PCI Gen2-compliant IP gives designers a low-risk, cost-effective way to rapidly deploy products that are compatible with the PCIe Gen 2 standard and begin taking instant advantage of the higher 5 Gb/s data rates.
• Gennum Sells BST Technology Group to Paratek Microwave - The compensation to Gennum from the sale transaction includes a payment of approximately U.S. $1.4 million for tangible assets, which amount was paid at closing, and additional technology transfer fees payable within the three year period following the closing. In addition, Gennum is entitled to be paid a royalty based on a percentage of Paratek's BST-related revenue over a fixed period.

Dividend Gennum's Board of Directors has declared a regular cash dividend of 3.5 cents per share Canadian to be paid on April 22, 2009 to shareholders of record on April 8, 2009.

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.