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Teradyne Announces General Availability of Celerity ADSL Qualification System; Reports Customer Order Backlog in Excess of $20 Million Only Three Months After Product Launch

DEERFIELD, Ill.--()--Sept. 27, 2000--Teradyne, Inc. (NYSE: TER) - Broadband Test, a leading provider of broadband test capabilities, today announced the general availability of the Celerity ADSL Loop Qualification Test System. Celerity provides Local Exchange Carriers (LECs) with the information they need to support loop qualification, service provisioning and maintenance processes for ADSL Since the Celerity's launch in June of 2000, customers have awarded Teradyne with more than $20 million in back orders for the product.

Celerity's uniqueness is based on its ability to qualify loops for broadband services using low frequency measurements across the narrowband test bus in today's voice switches. This capability combined with expert system analysis, enables LECs to quickly and accurately qualify a line for DSL service and then confidently install the customer's service. Celerity has been proven in a one million line trial at British Telecom (BT) during the first half of 2000. The trial proved Celerity's qualification accuracy is comparable to skilled technicians using instruments performing double-ended measurements. The trial also demonstrated that the value Celerity delivers for both cost reduction and revenue enhancement could provide customers with complete returns on their Celerity investments in less than one year's time.

Celerity Focus: Deploy DSL Faster

The fundamental problem with deploying DSL is that the copper telephone network was not designed or deployed to support high-speed data services. In today's network, speed impediments and plant records make it difficult for LECs to deploy ADSL services smoothly. LECs are experiencing a high incidences of:

--"False Reds:" lines that were thought incapable of carrying ADSL and are subsequently disqualified but can actually support service with no additional conditioning work.

--"False Greens:" lines that were thought to be able to carry ADSL but for distance or network reasons cannot.

--"Indeterminate lines:" where the current records systems are unable to determine whether the line is qualified for ADSL or not. This results in either significant investments in skilled people to manually qualify lines or in some cases, the LEC will simply consider these as disqualified - potentially creating "false reds" and denying customers the service.

Proven Value

Earlier this year, Celerity was put through a one million line trial conducted by a major LEC. The objective of the trial was to prove that Celerity could improve upon the current process of ADSL loop qualification and provisioning. The challenge was to prove Celerity's impact with respect to false reds, false greens, and indeterminate lines.

The trial conclusion shows:

--30% Reduction in "false reds:" Celerity determined that 30% of lines identified as not DSL ready (or red) were actually "DSL ready." Using this information enables the LEC to increase total uptake and gain additional revenue. The result: in total, Celerity found 13% more green lines or approximately 130K more DSL ready lines out of the 1 million tested.

--20% Reduction in "false greens:" Celerity found that approximately 20% of lines deemed DSL ready, should have been disqualified or had repairable faults. This effectively avoids the multiple dispatch scenarios associated with installing these faulty lines.

--65% Reduction in indeterminate lines: Celerity reduced the number of indeterminate lines by 65%. This will allow the LEC to streamline the process of qualifiying these lines, reducing the need for labor intensive manual testing and improving overall response time to provide a go/no go decision.

--13% more green lines: through a combination of reducing indeterminate lines and reducing false reds, Celerity made approximately 13% more green lines available for sale by the LEC partner.

The trial shows that LECs can substantially reduce operational costs by avoiding troublesome installs and minimizing their reliance on manual testing. An added benefit to the LEC is the ability to improve ADSL service take-up and revenue by knowing which lines are ADSL ready now, and develop target marketing efforts towards winning those customers before cable companies do.

"This proof of value trial confirms the acceptance of Celerity," says Chris Bohrson, marketing and sales director. "We have multiple customers who have seen similar results and have now awarded us orders for Celerity totaling more than $20 Million since we announced the product in June. We at Teradyne are excited at the prospects for Celerity as we introduce the product to the North American and worldwide market."

About Teradyne Broadband Test:

Teradyne Broadband Test develops state-of-the-art testing capabilities that support service provider's goals to sell and deploy more services sooner and improve the efficiency of qualification, provisioning, and customer care. Teradyne's seven years of internet protocol testing experience enhances its 27 years experience in providing test systems that support voice customer care for over 110 million voice lines worldwide. For more information on Teradyne's Broadband Test Products, visit Teradyne at: http://www.teradyne.com/prods/ttd/ttdhome.html

About Teradyne

Teradyne is the world's largest supplier of automatic test equipment and related software for the electronics and telecommunications industries and a leading supplier of high-performance backplane assemblies and connectors. Teradyne supports its products through an extensive service and applications engineering network, with technical centers located throughout the United States, Europe, and the Pacific Rim. Headquartered in Boston, Massachusetts, Teradyne reported sales of approximately $1.8 billion in 1999 and currently has about 8,500 employees worldwide. Teradyne's World Wide Web address is www.teradyne.com.

    

“This proof of value trial confirms the acceptance of Celerity”

Contacts

KHJ Public Relations
Jennifer Cataldo
617-241-8000 ext. 111

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