Gennum Acquires Snowbush Microelectronics



    Accelerates Company Growth, Revenue and New Product Development for
    Analog and Mixed-Signal Portfolio

    BURLINGTON, ON, Oct. 30 /CNW/ - Gennum Corporation (TSX: GND) announced
it has acquired Snowbush Microelectronics, one of the leading suppliers of
analog and mixed-signal intellectual property (IP) cores. This acquisition
accelerates Gennum's new product introductions for 2008 and beyond, creating a
compelling value proposition to customers as they gain access to an array of
high-performance analog and mixed-signal solutions. This transaction further
strengthens Gennum's design expertise and expands its engineering team in the
greater Toronto area.
    The transaction is forecasted to contribute approximately $10 million
dollars in revenue to Gennum and be accretive in 2008. Since the company's
inception in 1998, Snowbush has achieved profitability each year with a
compound annual growth rate (CAGR) of 46 percent in revenue. Gennum is
committed to rapidly growing its IP licensing business by augmenting the
significant Snowbush IP portfolio with its own cores and also utilizing its
global presence in Asia, Europe and North America to drive larger revenue
contributions to the company.
    "By leveraging the Snowbush IP, Gennum will introduce more innovative
analog and mixed signal solutions to serve new, high-growth consumer
connectivity markets while further securing market share in our traditional
video and data communication segments," said Dr. Franz Fink, President and CEO
of Gennum. "Additionally, we are well positioned to rapidly expand the IP
licensing business. This, coupled with the experienced mixed-signal design
team and extensive CMOS process expertise, makes Snowbush an ideal complement
to drive future revenue growth."

    Expanding Portfolio of Proven IP Cores

    According to a June 2007 report on semiconductor IP revenue by market
analyst firm Gartner, the market for foundation mixed-signal IP blocks and
analog front ends grew strongly in 2006, at 23 percent over the previous
year(*). As sub-micron CMOS integrated circuits become more complex and
encompass a broader set of IP blocks, IC companies are purchasing third-party
IP to speed time to market and reduce overall design cost. With Snowbush's
proven and highly differentiated IP portfolio, Gennum now becomes a
significant player in the IP supplier space.
    Additionally, by leveraging Snowbush's CMOS process design expertise and
existing partnerships with global foundry partners, Gennum immediately gains
access to key manufacturing facilities and CMOS-based 90 nanometer (nm), 65nm
and 45nm process nodes to develop unique, highly integrated analog and
mixed-signal products.
    The Snowbush IP includes a variety of silicon-proven,
serializer/deserializer (SERDES) cores which are a critical element of
high-speed data communications and video applications such as internet routers
and high-definition (HD) broadcast equipment. Snowbush also offers
standards-based IP cores, such as PCI Express(R) 2.0, an emerging high-speed
interconnect protocol that is being integrated into next-generation HD
broadcast, medical and industrial applications. Additionally, Snowbush's
analog cores, such as high-speed data converters, enable the conversion of
analog signals to digital signals - a key feature for such devices as set-top
boxes and video cameras.

    Snowbush Leadership Joining Gennum Team

    Privately-owned, Snowbush is headquartered in Toronto, and hosts a large
pool of world-class design engineers that have developed some of the most
complex analog and mixed-signal circuits in the market today. Snowbush also
has a design center located in Aguascalientes, Mexico which is well positioned
to attract additional design talent and expand Gennum's presence in that
region.
    Snowbush president and co-founder, Dr. Ken Martin, will become Gennum's
new Chief Technology Officer. Prior to founding Snowbush, he acted as a
consultant for many industry-leading microelectronics companies. Dr. Martin
also has a wealth of academic experience holding a tenured position as Full
Professor at UCLA and then at the University of Toronto with an Endowed
Professorship. Snowbush senior vice president and co-founder, Dr. David Johns,
will also join Gennum as its Vice President of IP Licensing. Dr. Johns, who
also has a wealth of academic and industrial experience, will be charted with
growing the IP business and integrating key blocks into future Gennum
products. Together, Dr. Martin and Dr. Johns have published over 200 technical
design papers, are inventors or co-inventors on numerous patents and jointly
authored a highly successful textbook on advanced analog circuit design. Both
Dr. Martin and Dr. Johns are Fellows of the IEEE(R).
    "Dr. Martin and Dr. Johns are incredible assets and welcomed additions to
the Gennum team," said Dr. Fink. "Their unparalleled design expertise and
seasoned leadership skills will enable Gennum to define and execute an
aggressive technology plan to accelerate new product development as well as
significantly grow our IP licensing business driving top-line growth.
Additionally, their strong relationships with world-class university
engineering programs will help Gennum attract key talent to our growing team."

    Terms of the Transaction

    Under the terms of the transaction, Gennum will pay approximately
$20.3 million in cash and $3.7 million in stock to acquire Snowbush. Gennum
intends to purchase these shares out of the market. Approximately, 63 percent
of the purchase price will be paid on closing with the remainder paid over a
three year period.
    As part of the transaction, Gennum will acquire the rights to all
Snowbush patents and the entire design and development team of approximately
50 employees. The former Snowbush headquarters in downtown Toronto and the
design center in Aguascalientes, Mexico will become new office locations for
Gennum.

    Editor and Investor Note:

    A conference call with Gennum's President and CEO Dr. Franz Fink will be
held at 11:00 a.m. Eastern Time on Tuesday, October 30, 2007. The dial-in
number is 416-915-5761 or 1-800-731-5319, and a slide presentation will be
made available during the call at www.acttel.com/readyconnect (passcode:
253756). The audio replay number is 416-640-1917 (access code: 21252092
followed by the number sign) and will be available shortly following the call.

    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. A winner of a
Technical Emmy(R) award 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,
Taiwan and the United Kingdom. www.gennum.com

    Disclaimer

    This document may contain forward-looking statements relating to Gennum's
goals, strategies, financial condition and results as well as the environment
in which Gennum operates, investments, and litigation inwhich Gennum is
involved, which may involve estimates, forecasts and projections.
Forward-looking statements may include words such as "plans", "intends",
"anticipates", "should", "estimates", "expects", "believes" and similar
expressions. These statements are not guarantees of future performance and
involve risks and uncertainties that are difficult to predict and/or are
beyond Gennum's control. A number of important factors could cause actual
outcomes and results to differ materially from those expressed in these
forward-looking statements. These factors include those set forth in Gennum's
public filings. Consequently, readers should not place any undue reliance on
such forward-looking statements. 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, whether as a
result of new information, future events or otherwise.

    Gennum and the Gennum logo are registered trademarks of Gennum
Corporation. All other product or service names are the property of their
respective owners. Gennum Corporation, 2007.

    (*) Data Source: Gartner Dataquest 2007, "Dataquest Insight: Chip
Integration and a Focus on Cost Drive Growth in Semiconductor IP Revenue."
Christian Heidarson




For further information:

For further information: Gennum Media Contact: Robin Vaitonis, Tel:
(905) 632-2999 ext. 2110, E-mail: vaitonis@gennum.com

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