Gennum Announces Sale and Lease-Back of Burlington Headquarters

    BURLINGTON, ON, Aug. 15 /CNW/ - Gennum Corporation (TSX: GND) today
announced the sale and lease-back of its Burlington campus for $13.5 million
(CAD) 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.
    The Burlington campus, which is located at 4281 Harvester Road, consists
of the company's global head office building comprised of 68,000 square feet
of office space on 5.06 acres of land. As part of the transaction, Gennum will
lease back all 68,000 square feet of office space for 15 years for its own
    The building and land had a net book value of approximately $8.1 million
at closing. In accordance with Canadian generally accepted accounting
principles, Gennum will recognize the pre-tax gain, net of brokerage
commissions, of approximately $5 million over the term of the lease-back. The
net impact of the lease expense, offset by the gain and lower depreciation
expense, is expected to be neutral to pre-tax earnings throughout the term of
the lease.

    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 recognized
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.


    This document contains forward-looking statements relating to our goals,
strategies, prospects, financial condition and results, as well as the
environment in which Gennum operates, investments, and litigation in which
Gennum is involved, which are based on assumptions about future economic
conditions and courses of action and which may involve estimates, forecasts
and projections. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "become", "intends", "will",
"may" "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 our control. Please refer to the sections entitled "Risks and
Uncertainties" in our 2007 annual report and "Risk Factors" in our annual
information form dated February 13, 2008, for a description of material risks
associated with forward-looking statements. 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, but are
not limited to, adverse effects of increasing competition and our ability to
maintain our innovative product positioning in the rapidly changing
marketplace for our products, as well as those other factors set forth in this
report and other public filings. Consequently, readers should not place any
undue reliance on such 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. We
disclaim any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except to the extent required by law.

    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, 2008

For further information:

For further information: Robin Vaitonis, Gennum Corporation, (905)
632-2999 x2110,,; Diane Orr, Orr & Company,
(408) 358-1617,

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