WESTFORD, MA---January 17, 2002---Teradyne's [NYSE: TER] Assembly Test Division, a global leader in electronics testing and production solutions, today announced its industry leading GR Force/SCE™ supply chain software has been selected for deployment by Philips Lighting Electronics Europe. GR Force/SCE optimizes collaborative manufacturing across a distributed, international, multi-company supply chain.

GR Force/SCE provides up-to-the-minute production information that enhances customer responsiveness and increases manufacturing efficiency. Its Web-centric portal provides an integrated view of shop floor operations reflecting the real-time status of orders, resources and materials.

"Philips Lighting Electronics operates in high tech markets. Our products change rapidly and meet very high quality standards. This requires a world-class manufacturing environment, built and sustained by people who continuously decide and act in line of the company's mission," said Jos Aarts, Industrial Manager Business Group Lighting Electronics of Philips Lighting.

"Efficient information sharing between each other is a primary condition for this success. GR Force/SCE perfectly fits to these needs," Aarts added. "It is a state-of the-art technology product, highly adaptable for specific business needs, becoming the backbone of our shop floor information channels. With GR Force/SCE in place we expect to get the ability to manage better the shop floor operations and strengthen our supply chain".

The ARC Advisory Group, a leading provider of strategic planning and technology assessment services to manufacturing companies, strongly advocates the introduction of supply chain execution software solutions. They believe such applications allow manufacturers to maximize efficient utilization of company assets, reduce inventories and overhead, and accelerate products to market.

"Manufacturers such as Philips Lighting are discovering that they can extract efficiencies from the critical 'Make' portion of their supply chain by increasing shop floor visibility and implementing management by exception practices on their shop floor," said Greg Gorbach, ARC Advisory Group's Director of e-Manufacturing. "Teradyne's GR Force/SCE software is one of a new breed of Web-centric supply chain execution solutions that can help discrete manufacturers improve their performance."

"Teradyne is committed to providing customers with the solutions that enable them to strengthen their manufacturing supply chain and better meet their customer needs," said Ron Lindell, manager of Teradyne's supply chain execution software group. "GR Force/SCE achieves this by providing high-resolution visibility into all phases of the manufacturing environment. It is the definitive software platform for discrete manufacturers to generate continuous business process improvements within the supply chain."

About GR Force/SCE

GR Force/SCE enables discrete manufacturers to meet their business objective of minimizing inventory and improving customer satisfaction by providing real-time shop floor information to manufacturers and their partners via the Internet. GR Force/SCE further increases manufacturing throughput by identifying production bottlenecks in real-time and it decreases time to market by electronically managing the implementation of engineering changes.

GR Force/SCE easily integrates with other factory and corporate information systems by using industry standard XML interfaces and provides the lowest total cost of ownership through a 100% browser based thin-client and a high performance Java 2 Enterprise Edition (J2EE) application server.

About Philips Lighting

Philips Lighting, a division of Royal Philips Electronics and headquartered in Eindhoven in the Netherlands, is number one in the global lighting market, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities. Its strategic ambition is to set the pace in the lighting industry as the first-choice innovative partner for the supply of creative and cost-effective lighting solutions. The division's products are found all around the world: not only everywhere at home, but also in a multitude of professional applications. Products include a full range of incandescent and halogen lamps, compact and normal fluorescent lamps, high-intensity gas-discharge and special lamps, fixtures, ballasts, Lighting electronics and automotive lamps. Philips Lighting employs some 47,000 people worldwide with manufacturing operations in the Netherlands, Belgium, Germany, France, the United Kingdom, Poland, the United States, Canada, Brazil, India, Indonesia, Thailand, the People's Republic of China, South Korea, Spain and Mexico.

News from Philips is located at www.news.philips.com
News from Philips Lighting is located at www.lighting.philips.com

About ARC

Founded in 1986, ARC Advisory Group is the leader in providing strategic planning and technology assessment services to leading manufacturing companies, utilities, and global logistics providers, as well as to software and solution suppliers worldwide. From Global 1000 companies to small start-up firms, ARC provides the strategic knowledge needed to succeed in today's technology driven economy. For more information on ARC Advisory Group visit www.arcweb.com.

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. Manufacturers of semiconductors, circuit assemblies and voice and broadband telephone networks use Teradyne's test products. Manufacturers of communications and computing systems central to building networking infrastructure use Teradyne's backplane assemblies and high-density connectors. The company had sales of $3 billion in 2000 and currently employs about 8000 people worldwide. Teradyne's World Wide Web address is www.teradyne.com.

For more information contact:
Mark Stygles mark.stygles@teradyne.com
Marketing Communications - North America
Westford MA USA 01886-0033
USA: +1 978-589-7425

Renate Fritz renate.fritz@teradyne.com
Manager, Marketing Communications - Europe
Ismaning Germany: +49 89 962 85 303