Boeing Selects Teradyne for Next Generation Test Solution; World's Foremost Airplane Manufacturer Teams With Global Leader In Automatic Test Equipment

BOSTON--(BUSINESS WIRE)--May 5, 2003--Teradyne, Inc. (NYSE: TER) today announced the signing of a licensing agreement with The Boeing Company to manufacture and market a new automatic test system (ATS) for airplane avionics components.

The Next Generation (NxGen) ATS is designed to reduce the cost of component testing for airlines while ensuring test quality and reliability. It replaces the current ATS-182 for testing 737, 747, 757 and 767 components and the ATS-195 for 777 components.

“The NxGen test system provides an innovative and flexible test solution to minimize risk and reduce testing costs”

With Teradyne's Spectrum(TM) 9000-Series functional test system as its core the NxGen ATS is designed to meet exacting industry standards. Its open system architecture ensures low maintenance costs and provides an easy upgrade path for airline customers. The flexibility built into the system allows customers to tailor the test system to their needs and to host both Boeing and non-Boeing components.

"The NxGen test system provides an innovative and flexible test solution to minimize risk and reduce testing costs," said Jack Trunnell, director of Maintenance Support Engineering in Boeing Commercial Aviation Services. "It gives airlines and MROs a test solution that supports their needs today and long into the future."

"Teradyne's proven technological leadership in the ATE industry, and the breadth and expertise of its world-wide support infrastructure will ensure that the needs of Boeing customers will be met," said Carl Rosenblatt, business unit manager for Teradyne. "The power, flexibility and ease of use of the NxGen solution will introduce users to enhanced productivity and efficiency in test, enabling them to concentrate on their core competencies."

About Teradyne:

Teradyne (NYSE:TER) is the world's largest supplier of Automatic Test Equipment, and is also a leading supplier of interconnection systems. The company's products deliver competitive advantage to the world's leading semiconductor, electronics, automotive and network systems companies. In 2002, Teradyne had sales of $1.22 billion, and employed about 7,000 people worldwide. For more information, visit www.teradyne.com.