Business/Technology Editors

BOSTON -- (BUSINESS WIRE) -- Sept. 17, 2002 -- Teradyne's (NYSE: TER) Assembly Test Division, a global leader in electronics testing and production solutions, and MetricStream, an innovative provider of advanced enterprise quality management systems, today announced at ARC Advisory Group's "Driving Operational Excellence Forum" in Boston, MA, a strategic alliance combining Teradyne SCE™, the industry's leading collaborative manufacturing execution software, with MetricStream's ground-breaking quality management software, Quality*Stream.

This significant alliance addresses the supply chain execution and quality management needs of the aerospace and defense, automotive, and electronics industries. It provides manufacturers with a powerful combination of tools and services to substantially improve the efficiency of critical manufacturing execution and enterprise quality processes, reducing a manufacturer's cost of goods sold and improving profitability.

"Teradyne's move adds important functionality for manufacturers that rely heavily on supplied parts, such as in the Electronics and Medical Device industries, where internal and external quality processes are tightly intertwined with the manufacturing process," Bill Swanton said in The AMR Research Alert, September 9, 2002. "Recent AMR Research studies show that opening supplier quality processes, such as corrective action, to direct supplier interaction can reduce defects, corrective action time, and the cost of poor quality by up to 67%."

"Teradyne is a market leader in collaborative manufacturing execution software - they truly provide 360 degree visibility into the factory floor through their innovative market leading, state-of-the-art software and services," said Arvindh Balakrishnan, CEO of MetricStream. "Their solution, coupled with MetricStream's quality management solutions, will lead to a highly proactive, quality driven organization, reducing the cost of quality, improving customer service levels and customer quality, and ensuring higher levels of customer satisfaction at higher profit margins."

"MetricStream provides a leading-edge enterprise quality management system," said Carl McCauley, operations manager for Teradyne's Manufacturing Software group. "Teradyne's alliance with MetricStream will allow us to deliver enhanced value to our customers by linking their shop floor execution and quality systems together with their suppliers and customers. This will increase customer responsiveness and improve quality, while streamlining business processes and reducing costs."

Java 2 Enterprise Edition (J2EE) architecture

Both Teradyne SCE™ and MetricStream Quality*Stream integrate easily with other factory and corporate information systems by using industry standard XML interfaces and provide the lowest total cost of ownership through a 100 per cent browser-based thin-client and a high performance J2EE application server, providing unparalleled modularity, performance, and scalability.

About Teradyne SCE

Teradyne SCE software is a collaborative manufacturing execution system used to reduce costs and accelerate products to market by optimizing distributed manufacturing. It enables manufacturers to automatically correlate real-time in-process manufacturing information with work-in-progress and product genealogy data, providing complete product and process traceability to support government and other regulatory requirements. Teradyne SCE accelerates the new product introduction process for lean production environments, including build-to-order, configure-to-order, and engineer-to-order manufacturing operations.

About MetricStream

Quality*Stream, built on MetricStream flagship patent pending EPM Platform technology, is the first enterprise level software that provides closed loop control and continuous improvement of quality related processes. Quality*Stream manages critical enterprise processes including Corrective Actions/Preventive Actions (CAPA), Internal and Supplier Corrective Actions, Complaints Management, Returns Management, Non-conforming material, Document Management, Customer surveys and Quality Audits.

About MetricStream, Inc.

MetricStream is a five-year-old enterprise software company that provides the first truly unified Enterprise Quality Management System for Global corporations. MetricStream's Quality Management software, Quality*Stream is built on MetricStream's flagship patent pending EPM Platform technology. Quality*Stream is the first enterprise level software that provides closed loop control and continuous improvement of quality related processes such as Corrective Actions/Preventive Actions (CAPA), Internal Corrective Actions, Supplier Corrective Actions, Non-conforming material, Inspection, Document Management, Calibration, Complaints Management, Returns Management, Customer surveys, Training, Collaboration management and Quality Audits.

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, 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 $1.4 billion in 2001 and currently employs about 8000 people worldwide. For more information, visit www.teradyne.com.