Walnut Creek, CA -- August 6, 1997 -- Teradyne, Inc. announced that it has received a multiple-system order for its Z1800 Series circuit board test systems from a business unit of Acer Inc. The order, which has a potential value of more than $3 million, covers system shipments scheduled to begin this quarter to Acer's manufacturing facility in Hsinchu, Taiwan. The Teradyne systems will be used to test notebook computer motherboards containing large custom devices. The system orders include Teradyne's PRISMTM (Precision Integrated Signal Measurement) option, a highly accurate analog instrument package, reported Douglas H. Elder, Managing Director of Asia Operations for Teradyne's Assembly Test Group.

"We conducted an extensive benchmark evaluation of the test systems in this market, including several major U.S. and Asian suppliers," said Mr. D. Z. Tsai, Acer's Manager of Test Engineering. "Criteria included functional test yield, false reject rates, and test time," he said. "In addition to earning high marks in those areas, the Teradyne systems demonstrated a lower cost of ownership, a shorter program development time, and excellent ease of use compared to competing systems." Less tangible factors that were also evaluated include fixture quality, support resources, benchmark test strategy, and commitment to meeting Acer's objectives.

"We're very pleased to be chosen by this industry leader," Elder said. "Four out of five of the world's PC motherboards and 32 percent of the world's notebook computers are manufactured in Taiwan. The growth rate in this key industry segment is phenomenal. We look forward to a long, happy relationship with Acer."

More than 2,000 Z1800 Series test systems have been shipped to date, Elder said. The system is produced by Teradyne's Assembly Test Division in Walnut Creek, California. The Division also supplies other equipment for the commercial board test market, including the SpectrumTM 8800 Series Manufacturing Test Platform, the Control Automation AOI (automated optical inspection) system, and the Teradyne Javelin Flying Prober fixtureless test system.

Acer is one of the largest PC manufacturers in the world and one of the largest electronics companies in Asia, with 1996 sales of US$5.9 billion.

Teradyne is a leading manufacturer of automatic test equipment and connection systems for the electronics and telecommunications industries, with headquarters in Boston, Massachusetts. Teradyne's site on the World Wide Web is at www.teradyne.com. Teradyne is listed on the New York Stock Exchange (Symbol: TER). Sales in the second quarter of 1997 were approximately $289.5 million.

PRISM and Spectrum are trademarks of Teradyne, Inc.