VALLEY FORGE, PENNSYLVANIA - August 20, 2001 - Teradyne, Inc. (NYSE: TER) has announced delivery of two C-17 Modern Intermediate Level Test Stations (MILTS) to Boeing as part of its contract with the Boeing C-17 test program. The C-17 MILTS, based upon Teradyne's versatile, commercial-off-the-shelf Spectrum 9100™ Series VXI test platform, performs a full range of avionics testing of Line Replaceable Units (LRU) for Boeing's C-17 Globemaster III military cargo aircraft.

To fulfill Option One of the Teradyne-Boeing contract, Teradyne will provide Boeing with a total of eight C-17 MILTS. In addition to hardware, Teradyne also supplies expert program management and technical support, including on-site engineering resources and programming assistance.

In order to demonstrate the robust capabilities of the C-17 MILTS testers, Teradyne and Boeing exhibited a C-17 MILTS system in Boeing's booth at Autotestcon 2001 featuring a migrated Boeing test program set (TPS).

"The MILTS ATE is a key element in the Boeing Automatic Test System replacement strategy," said John Allen, Boeing's Support Equipment Program Manager. "Its capabilities provide a straightforward, low-risk migration path from the C-17 legacy system to this high-performance tester."

"Teradyne is confident that this program demonstrates the best that Teradyne has to offer its customers in the military and aerospace markets," said Chuck Schwarz, Teradyne's C-17 program manager. "Within ten months of receiving a contract, we've delivered two systems and Boeing has proven its re-host concept by migrating an existing TPS to the new C-17 MILTS equipment. To turn around a project of this scale within such a short timeframe says a lot about the capabilities of our test equipment and our personnel, not to mention the superb expertise and teamwork from our colleagues at Boeing."

About Teradyne

Teradyne (NYSE: TER) is the world's largest supplier of automatic test equipment and is also a leading supplier of high performance interconnection systems. Teradyne's test products are used by manufacturers of semiconductors, circuit assemblies and voice and broadband telephone networks. Teradyne's backplane assemblies and high-density connectors are used by manufacturers of communications and computing systems central to building networking infrastructure. The company had sales of $3 billion in 2000 and currently employs about 9000 people worldwide. For more information visit www.teradyne.com.

The Assembly Test Division, located in North Reading, Massachusetts and Walnut Creek, California, serves electronics 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. Teradyne's World Wide Web address is www.teradyne.com.

Spectrum 9100™ Series is a trademark of Teradyne, Inc. Other product names are trademarks of their respective owners.