ANAHEIM, CA -- September 23, 1997 -- Teradyne, Inc. announced that its Assembly Test Boston Division has formed a strategic alliance with Raytheon Electronic Systems of Lexington, Massachusetts. Raytheon's objective in forming the alliance is to reduce the cost of test equipment for Raytheon's electronic systems by participating with Teradyne in early-stage planning for the design and deployment of new test systems and test software, said Michael Segal, Manager of Raytheon's Test Systems Operation organization. For Teradyne, the benefits are a long-term commitment from a major customer and a clear understanding of Raytheon's requirements, so that the products it develops are timely and successful, said Bob Feingold, Teradyne Vice President and Division Manager of the Assembly Test Boston Division.

"Product cycle time and cost are critical factors in corporate growth," Segal said. "Companies like Teradyne and Raytheon must work together to meet the requirements of a new business environment. By forming this alliance, our two organizations pledge to foster open communications by working in teams on issues such as deploying COTS (Commercial Off-The-Shelf) standard VXI digital test instrumentation, and reducing the cost and cycle time to develop TPSs (Test Program Sets)." Raytheon is committed to using low-cost standard PC-based VXI test systems for its new programs, he said. In addition, the company is working to "rehost" some of its earlier TPSs to modern, lower-cost platforms and consolidate its equipment base for depot-level test. Teams formed under this alliance are working toward those goals.

Teradyne intends to be a long-term STE (Specialized Test Equipment) supplier to Raytheon, Feingold said, and Raytheon's sole provider of digital-VXI STE, building blocks, and related services. Raytheon has placed orders for an its M910 VXI Digital Test Instrument and a its Spectrum 8800-Series Manufacturing Test Platform, Feingold said; additional orders are expected for similar platforms using the VXI open architecture.

Raytheon Company, headquartered in Lexington, Massachusetts, is a $14.0 billion global technology leader which operates in four business areas: commercial and defense electronics, engineering and construction, aircraft, and appliances. Raytheon celebrates its 75th anniversary this year.

Teradyne, Inc. is a leading supplier of automatic test equipment (ATE) and connection systems to manufacturers of electronics worldwide. The company's Assembly Test Boston Division is a major supplier of COTS functional test systems and test development software for assembly, board, and system-level test. Teradyne is listed on the New York Stock Exchange (Symbol: TER). Sales in the first half of 1997 were approximately $538 million.