Gennum and Gores Equity Reach Definitive Agreement for Purchase of Hearing Instrument and Manufacturing Operations

    BURLINGTON, ON, September 10 /CNW/ - Gennum Corporation (TSX:GND) and
Sound Design Technologies, Ltd., a Gores Equity portfolio company, announced
today the companies have reached a definitive agreement for the purchase of
Gennum's hearing instrument products and manufacturing operations. The sale is
part of Gennum's strategy to streamline its product portfolio and focus on the
rising demand for analog and mixed-signal products in the video and data
communications markets.

    Gennum announced its intention to explore strategic alternatives for its
Audio and Wireless Division and associated Manufacturing Operations in June
and retained Genuity Capital Markets to assist in the strategic review. With
this sale to Sound Design Technologies, backed by the Gores private equity
firm, Gennum achieves another significant milestone in its goal to focus its
development efforts on next-generation high-performance optical, analog and
mixed signal solutions.

    "Gennum has built a strong reputation for delivering world-class hearing
instrument products based on our high-performance, low-power DSP technology
and advanced manufacturing capabilities," said Dr. Franz Fink, President and
CEO of Gennum. "With this transaction, we have reached another key milestone
in our strategy to focus the company on developing and delivering innovative
analog, mixed-signal and optical products to the fast growing video and data
communication markets."

    Gennum's hearing instrument product portfolio includes the Foundation(R),
Advanta(TM), Venture(TM) and Voyageur(TM) digital signal processing (DSP)
products, which have been designed into hearing aids and assisted listening
devices from a variety of top-tier OEMs in the hearing market. Sound Design
Technologies will also acquire a 95,000-square-foot manufacturing facility
housing 100mm wafer fabrication operations and leading-edge packaging
technologies. Specifically, Sound Design Technologies will obtain Gennum's
innovative thinSTAX(R) technology, an incredibly dense packaging and
miniaturization capability critical for hearing aids and other assistive audio
listening devices. Gennum's Barium Strontium Titanate (BST) capacitor
technology and development team will remain with the company.

    "The shift in Gennum's strategic focus has given us the opportunity to
acquire a dynamic operation in a growing market with a seasoned management
team and a loyal customer base," said Mike Hirano, Executive Vice President
Operations, Gores Equity. "Gennum's hearing instrument product portfolio,
combined with world-class manufacturing operations and innovative thinSTAX
packaging technology, provide an ideal investment opportunity. We are
confident that our extensive experience in operations and management, in
conjunction with the management team, as well as our ability to finance future
product development and deployment, will expand the market for these advanced
hearing instrument products."

    The hearing instrument and manufacturing operations will remain
headquartered in Burlington, Ontario. The transaction is anticipated to close
in the next 6-8 weeks. Anticipated proceeds from the sale of the hearing
instrument product line and the manufacturing operations are approximately $14
million in cash. Gennum could receive up to an additional $1.3 million in the
event certain financial milestones are achieved by these businesses. The
Company expects to recognize a pre-tax loss on the transaction in the range of
$5-$7 million.

    About Gennum

    Gennum Corporation (TSX:GND) is a leading designer and manufacturer of
semiconductor solutions for the global video and data communication markets. A
winner of a Technical Emmy(R) award for advances in high definition (HD)
broadcasting, Gennum's broad portfolio of products and technologies include
image processors, video timing and transport products, ICs for optical
transceivers and backplane interconnects. Gennum is headquartered in
Burlington, Canada, and has global design, research and development and sales
offices in Canada, Japan, Korea, Taiwan and the United Kingdom.

    About Gores Equity, LLC

    The Gores acquisition groups were founded in 1987 and are a private
equity group of firms, focused on acquiring controlling interests in mature
and growing businesses which can benefit from the firm's operating experience
and flexible capital base. The firm combines the operational expertise and
detailed due diligence capabilities of a strategic buyer with the seasoned M&A
team of a traditional financial buyer. Gores Equity focuses on small
mid-market acquisitions. Gores has become a leading investor, primarily in the
technology and telecommunications sectors, having demonstrated over time a
reliable track record of creating substantial value in its portfolio companies
alongside management. Gores Equity maintains offices in Los Angeles and San
Diego, California and in Boulder, Colorado. For more information, please visit


    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 in which 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, 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.

For further information:

For further information: Gennum Media Contact: Robin Vaitonis,
905-632-2999 ext. 2110 E-mail: or Gores Equity Media
Contact: Frank Stefanik, 310-209-3010

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