Teradyne and ASE Announce Strategic Agreement Including Volume Purchase of Teradyne Test Systems

BOSTON--(BUSINESS WIRE)--May 17, 2004--Teradyne, Inc. (NYSE:TER) and Advanced Semiconductor Engineering, Inc. (ASE. TAIEX: 2311, Nasdaq: ASX), the world's largest assembly and test subcontractor, announced an agreement that integrates test system planning for all ASE sites and includes the volume purchase of over 90 Teradyne test systems. The order involves Teradyne's Tiger and Catalyst test systems. The systems will be delivered to ASE's facilities over the next two years. The strategic agreement provides ASE with test capacity and support to meet the demands of the fast growing assembly and test subcontract market, and strengthens Teradyne's position as the vendor of choice for system-on-a-chip (SoC) testing.

"Teradyne and ASE are both leaders in their respective markets," said Dr. Tien Wu, President, ASE Americas, Europe and Japan. "This agreement allows ASE to take advantage of Teradyne's leading position in SoC testing and to provide the market with the leading edge technical and economic test solutions it demands. With this agreement, we can look to meet the needs of the upturn with confidence."

“Teradyne and ASE are both leaders in their respective markets”

"This agreement builds on a long working relationship, and allows ASE and Teradyne to better match our technology and capacity plans over the long term. We look forward to supporting the integration of Teradyne test solutions at ASE facilities worldwide with one of the leaders in subcontract manufacturing," said Doug Elder, General Manager, Semiconductor Test Business Groups, Teradyne.

About ASE (Advanced Semiconductor Engineering Group)

The ASE Group is the world's largest provider of independent semiconductor manufacturing services in assembly and test. As a global leader geared towards meeting the industry's ever growing needs for faster, smaller and higher performance chips, the Group develops and offers a wide portfolio of technology and solutions. The Group generated sales revenues of $2.9 billion in 2003 and employs over 29,000 people worldwide. For more information about the ASE Group, visit www.aseglobal.com.

About Teradyne

Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment and interconnection systems. The company's products deliver competitive advantage to the world's leading semiconductor, electronics, automotive and network systems companies. In 2003, Teradyne had sales of $1.4 billion, and currently employs about 6100 people worldwide. For more information, visit www.teradyne.com. Teradyne is a trademark of Teradyne, Inc. in the US and other countries.