ANAHEIM, CA – September 19, 2000 – Teradyne, Inc. (NYSE:TER) announced The Boeing Company's Airlift and Tanker Support Equipment Team has selected Teradyne's Spectrum 9100-Series Automatic Test Equipment (ATE). After completion of a detailed United States Air Force-funded study, the Airlift and Tanker Support Equipment Team selected the best candidate for replacement of the aging C-17 I-Level Test Systems. Announcement of the C-17 Program selecting Teradyne was made here at Autotestcon, a defense industry test trade show and conference focused on future sustainment of military and aerospace.

The goals of the ATE Replacement Program were to select a test system that minimized acquisition costs and ATE development, while maximizing Off-the-Shelf equipment.

"The selection of Teradyne's Spectrum 9100-Series was the result of an exhaustive proposal evaluation effort emphasizing: cost, technical capability, schedule, and program management," said John Allen, Program Manager, C-17 Automatic Test Systems. "The Boeing Team determined that Teradyne provided the best overall value to Boeing and the USAF for this effort," continued Allen.

"Teradyne is pleased to join the Boeing/USAF team in supporting the C-17 Program. The Spectrum 9100 provides a commercial-off-the-shelf (COTS) automatic test solution," said Charles Pothier, Spectrum 9100-Series Product Manager. "The modular design and adherence to an open-architecture allows the system to be easily tailored to meet the C-17 I-Level requirements while enabling future growth requirements to be met in a cost-effective manner. The Spectrum 9100 provides Boeing and the USAF a modern, supportable ATE platform while reducing total ownership costs," continued Pothier.

Program Description

The C-17 Modern Intermediate Level Test Station (MILTS) program will provide an integrated replacement Automatic Test System for the United States Air Force avionics maintenance. The current Intermediate Level Automatic Test Equipment (ATE) station is an older design, which is no longer procurable, and is reaching the end of its life cycle. Additional ATE will be required in the short term to support the existing C-17 aircraft fleet. A growth path will also be needed to support future additions to the C-17 fleet. The C-17 MILTS program resolves these issues by providing modern, open architecture Automatic Test Equipment for C-17 avionics maintenance.

The MILTS program implements several acquisition reform concepts, such as the use of Commercial Off The Shelf (COTS) equipment, commercial documentation, and "Best Commercial Practices," resulting in reduced lead times and acquisition costs than with the use of traditional "MIL Spec" ATE. Commercial MILTS ATE will be used by United States Air Force C-17 Main Operating Bases, as well as the Boeing Company for TPS development. COTS Application Development Environment (ADE) hardware and software will be used to cost effectively rehost existing C-17 Test Program Sets (TPSs) from the current ATE to the MILTS. The Boeing Company will integrate and deliver this high performance maintenance system. Initial Main Operating Base (MOB) operations are planned to commence in calendar year 2002.

About Teradyne

Teradyne is the world's leading automated testing company for the electronics, communications, and software industries. Its products and services address the test requirements of a broad range of semiconductors, electronic assemblies, telephone access networks and software applications. Teradyne supports its customers via a global service and applications engineering network, with technical centers located throughout the United States, Europe, and the Pacific Rim. Headquartered in Boston, Massachusetts, Teradyne reported sales of approximately $1.8 billion in 1999 and currently has about 8,000 employees worldwide. Teradyne's World Wide Web address is www.teradyne.com.

The Assembly Test Division, located in North Reading, Massachusetts and Walnut Creek, California, serves electronic manufacturers with comprehensive capabilities in test and inspection. These test instruments and systems are used in commercial environments and in military/aerospace applications where reliability, time-to-market, and in-line process test are key to success.