BT Extends Teradyne's Celerity DSL Test System Across its Entire Network to Support its 100% DSL Initiative

DEERFIELD, Ill.--(BUSINESS WIRE)--April 26, 2004--Teradyne, Inc. (NYSE: TER) Teradyne, Inc.'s Broadband Test Division announced today that British Telecommunications plc (BT) (NYSE: BTY) has placed an order for more than $10 million to extend the deployment of its Celerity(R) and 4TEL test systems nationwide. With this order, BT has selected Teradyne as its single source supplier for access network test and diagnostic systems for Layer 1 physical network testing.

With the move to single source supply and nationwide deployment of Celerity, BT has the opportunity to extend the application of Celerity to wider service assurance needs for DSL customers. These enhancements build on the overall operational benefits available to BT in improved customer care, improved responsiveness, and management of the single system. "Moving to a single system is a key to supporting BT's development of services carried over the copper access network, in that we will see greater flexibility and shorter time to market for test solutions," said Ray Clay, BT's Test and Diagnostic Program Manager. The network wide deployment of Celerity and 4TEL also aligns with the BT 21C network program by providing access network test and diagnostic capability as BT migrates the network and switching architectures to Multi-Service platforms.

“This capability will form a key component to help BT's plan to deploy five million DSL customers by 2006.”

Celerity(R) supports BT's strategic goal of reaching five million DSL lines and 100% availability in the UK by 2006. "The Celerity system helps BT maximize the use of the copper network for broadband services deployment by identifying more DSL-ready lines, thereby reducing the time to market for DSL services," said Peter Higgs, General Manager, 21st Century (21C) Access and Aggregation Strategy for BT. "This capability will form a key component to help BT's plan to deploy five million DSL customers by 2006."

"Operationally, Celerity has been proven to accurately identify more DSL-ready lines leading to a reduction in the number of cancelled orders and improved customer satisfaction," added Clay. "As BT's DSL deployment is pushed further into the more rural areas of the network, Celerity will be key in enabling the same levels of operational performance across the entire network, so we can meet our strategic DSL deployment goals."

This order now extends Celerity's worldwide testing footprint to 46 million lines. The contract also extends Teradyne's installed base of Loop Diagnostic Units (LDU), which is the exchange based measurement unit for Celerity and 4TEL applications, to over 15,000 units worldwide.

Celerity automatically generates accurate test results, by telephone number, to a BT OSS database indicating which lines are qualified for specific DSL services and the presence of DSL impairments in the case where the line is disqualified. The accuracy and automated capabilities of Celerity enable BT to reduce the amount of manual effort required and customer response time to qualify lines as well as decreasing the number of lines falsely disqualified. This not only cuts cost and customer response time but also enables increased DSL revenues by identifying more lines that are DSL capable.

About BT

British Telecommunications, plc is one of the world's leading providers of telecommunications services. Principal activities include local, long distance and international telecommunications services, mobile communications, Internet services, and IT solutions. BT has operations in more than 30 countries worldwide, with ventures in the Republic of Ireland, France, Switzerland, Spain, Germany, Italy, Belgium, the Netherlands, Sweden, New Zealand, Japan, Singapore, Malaysia, Korea, Latin America, and India. BT and AT&T have also created Concert, the leading global telecommunications company serving multi-national business customers, international carriers, and Internet service providers worldwide. For more information on British Telecommunications plc, visit: http://www.bt.com

About Teradyne Broadband Test Division

Teradyne Broadband Test is a division of Teradyne, Inc (NYSE: TER). The group develops state-of-the-art testing capabilities that support service provider's goals to sell and deploy more broadband services sooner and improve the efficiency of qualification, provisioning, and customer care for DSL and CATV high-speed data networks. Teradyne's 10 years of internet protocol testing experience and industry leading background in layer one testing enhances its 30 years experience in providing test systems that support voice customer care for approximately 120 Million voice lines worldwide. Teradyne is a leading suppler of automatic test equipment and high performance interconnection systems. The company had sales of $1.4 billion in 2003 and currently employs about 6,200 people worldwide. For more information on Teradyne's Broadband Test Products, visit Teradyne at: http://www.teradyne.com/prods/btd/.