Washington, DC -- October 20, 1998 -- Teradyne, Inc. (NYSE:TER) and Northrop Grumman Corporation have announced an agreement to integrate Teradynes M927 VXI digital test subsystem hardware and software into the Integrated Family of Test Equipment (IFTE). IFTE, originally developed by Northrop Grumman for the Army, is one of the standard automatic test system (ATS) families designated by Department of Defense (DoD) policy for use in field, depot, and manufacturing test.

The Northrop Grumman and Teradyne partnership provides digital test capabilities for electronic automatic test systems within the IFTE family. Teradynes high performance C-size VXI digital test instrument (DTI) will be integrated in the entire test system family.

"Teradyne is a leading supplier of high-performance digital test solutions to the DoD. Northrop Grumman is an industry leader in integrating modular analog, digital, RF, and electro-optics systems. Teradyne and Northrop Grummans partnership provides a cost-effective performance upgrade to the IFTE family that is applicable to a wider spectrum of programs throughout the DoD," says Don Kump, vice president of ATE and Electronics Programs, at Northrop Grumman.

Teradynes M927 provides the performance for the next generation of weapon systems while addressing legacy requirements. By integrating a compatible DTI, the Army will leverage the investment in existing automatic test systems and reduce the engineering resources required for upgrading their automatic test systems.

"Northrop Grummans strong background in DoD ATS systems and Teradynes strong background in digital test provide good synergy and we are looking forward to meeting the needs of the Army," says Joe Wrinn, general manager of Teradynes Assembly Test Division.

The M927 provides 50-MHz dynamic digital testing and diagnostics with up to 528 test channels. Designed to meet industry-standard VXI chassis, the M927 integrates easily into automated test systems.

Northrop Grumman is a world class developer of automatic test systems for the U.S. Department of Defense, foreign military and commercial industry. For over 35 years, Northrop Grumman test products have supported the U.S. military worldwide at the organizational, intermediate, depot, and factory levels of maintenance.

Northrop Grumman Corporation, headquartered in Los Angeles, is a leading designer, systems integrator, and manufacturer of military surveillance and combat aircraft, defense electronics and systems, airspace management systems, information systems, marine systems, precision weapons, space systems, and commercial and military aerostructures.

Teradyne is the world's largest manufacturer of automatic test equipment ("ATE") for the electronics industry. Products include systems to test semiconductors, circuit boards and modules, telephone lines, computerized telephone systems, and software. The Company is also a leading manufacturer of backplanes and associated high-density connectors used in electronic systems. Teradyne supports these products through an extensive service and application engineering network, with technical centers located throughout the United States, Europe, and Asia's Pacific Rim.

The Assembly Test Division, located in Boston and Walnut Creek, California, serves circuit-board test customers 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. Headquartered in Boston, Massachusetts, Teradyne reported sales of approximately $1.3 billion in 1997 and had 6300 employees worldwide.

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