Gennum Corporation

Gennum Corporation

March 05, 2009 14:06 ET

Gennum Sells BST Technology Group to Paratek Microwave

BURLINGTON, ONTARIO--(Marketwire - March 5, 2009) - Gennum Corporation (TSX:GND) and Paratek Microwave, Inc. announced today that the companies have completed a transaction involving the purchase by Paratek of Gennum's barium strontium titanate (BST) technology group and its associated assets. BST is an emerging component technology for mobile handsets. The transaction provides Gennum increased flexibility to invest in its core portfolio and continue to accelerate new optical, analog and mixed-signal and IP product development.

"Over the past two years, we have continued to focus our portfolio in order to bring our customers the differentiated, innovative optical, mixed-signal and analog technologies their products demand," said Franz Fink, President and CEO, of Gennum. "Having worked with Paratek on BST technology and product development over the last several years, it was a natural choice for Paratek to acquire our BST group and its associated assets and continue the commercialization of this technology. As they continue to work with leading customers to integrate into next-generation mobile applications, our shareholders will be able to benefit from the success of BST."

"Gennum has been an important contributor to the technological development and advancement of BST. With Gennum deciding to focus its investments on its core portfolio, we were provided the opportunity to acquire the BST technology group and assets and augment our own efforts to continue the commercialization of this technology," said James DiLorenzo, CEO of Paratek Microwave. "By combining Gennum's BST expertise and existing patent portfolio with our own applications, materials and systems expertise, we believe this acquisition further strengthens our position to bring Parascan™ based solutions to market and capitalize on the significant opportunities it presents for multi-band, multi-mode mobile handsets."

The compensation to Gennum from the sale transaction includes a payment of approximately US$1.5 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.

Paratek has acquired all assets of the BST technology group including equipment and intellectual property. Four employees of Gennum will join Paratek as part of the sale transaction.

About BST Technology

Manufactured on silicon or ceramic wafers, thin-film BST capacitors offer high capacitance density, excellent high frequency performance, and exceptional tunability. This enables an unprecedented level of miniaturization, flexibility and performance, and as important, enables extremely low power consumption in mobile handsets.

About Paratek

Paratek Microwave, Inc. designs and manufactures adaptive RF front-end component solutions for mobile wireless applications requiring multi-mode and multi-band operation. The Company is privately held and headquartered in Columbia, MD, with additional offices in Nashua, NH and Crystal Lake, IL.

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, Germany, India, Japan, Korea, Mexico, Taiwan, the United States and the United Kingdom.

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 may refer to management's expectations or plans. These statements include but are not limited to statements concerning the anticipated benefits to Gennum and its shareholders regarding the completion of the BST technology group sale transaction. 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 the commercialization of BST technology (including the ability to successfully commercialize, and the timing of any commercialization of, such technology) and the resultant royalties (or lack thereof) to be received by Gennum. Actual results and developments may differ materially from those expressed or implied by the forward-looking statements contained in this news release. 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. We disclaim 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.

Gennum, the Gennum logo and ActiveConnect are trademarks of Gennum Corporation. Paratek and Parascan are trademarks of Paratek Microwave, Inc. All other product or service names are the property of their respective owners. Gennum Corporation, 2009.

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