Teradyne Connection Systems to Close San Diego Printed Circuit Board Facility

NASHUA, N.H.--(BUSINESS WIRE)--Aug. 8, 2002--Teradyne, Inc. (NYSE: TER) today announced that, in compliance with the Warn Act, it has filed its intention with the State of California to cease production at its San Diego printed circuit board facility and to lay off approximately 125 people employed there by the end of the year. Teradyne will be working closely with its customers to support all requirements as production transitions to Nashua, New Hampshire where the company operates a 214,000 square foot printed circuit board fabrication facility.

"The depth of the recent downturn has been unprecedented," said Richard Schneider, president of Teradyne's Connection Systems Division. "Unfortunately, we are not seeing a significant recovery in the second half of 2002 that will enable us to support the San Diego capacity. Our focus now will be on executing a flawless transition of work to our Nashua plant, supporting our customers, and providing outplacement services for all affected employees."

Teradyne acquired the San Diego facility in August 2000. Since that time the company has invested in upgrading equipment, training employees and improving environmental compliance. The division's success in improving operational results and technical capabilities was not enough, however, to offset the impact of the economic downturn.

About Teradyne Connection Systems Division

Teradyne Connection Systems (TCS), a division of Boston-based Teradyne, Inc., provides high performance system solutions to industry leading OEMs, with printed circuit boards, high-speed, high-density connectors, multi-gigabit backplane assemblies and complete systems integration and test. Teradyne's high-technology components and electronic manufacturing services are used by manufacturers of communications and computing systems central to building networking infrastructure. For more information visit http://www.teradyne.com/tcs.

About Teradyne Inc.

Teradyne (NYSE: TER) is the world's largest supplier of automatic test equipment and is also a leading supplier of high performance interconnection products and total systems integration services. Teradyne's automatic test products are used by manufacturers of semiconductors, circuit assemblies and voice and broadband telephone networks. The company had sales of $1.4 billion in 2001 and currently employs about 8000 people worldwide. For more information visit www.teradyne.com.

“The depth of the recent downturn has been unprecedented”