BOSTON, MA and NASHUA, NH -- October 17, 2002 -- Teradyne's (NYSE: TER) Assembly Test Division (ATD), a global leader in electronics testing and production solutions, and Tecnomatix Technologies, Ltd. (NASDAQ: TCNO), the driving force in Manufacturing Process Management (MPM) software solutions, today announced that Tecnomatix Unicam, Inc. will acquire Teradyne's CIMBridge™ CAD/CAM optimization software product line. The CIMBridge acquisition expands the current alliance between Teradyne and Tecnomatix, which began in 1994. The terms of the transaction were not disclosed.

Tecnomatix Unicam, a wholly owned subsidiary of Tecnomatix Technologies, will incorporate CIMBridge solutions into its industry-leading Manufacturing Process Management (MPM) product line, and has committed to provide the CIMBridge installed base with solutions that include the latest in software development, while guaranteeing a seamless migration path to its best-in-class assembly technology. Tecnomatix Unicam will increase its market share and technology base through the addition of the CIMBridge intellectual property, installed customer base and R&D team.

"We looked at the assembly landscape and clearly understood the leadership position of Tecnomatix Unicam," said John Casey, President of Teradyne ATD. "The acquisition of the CIMBridge product line by Tecnomatix allows both companies to continue to focus on core strengths as well as protect our mutual customers' investment in hardware and software. The CIMBridge CAD/CAM optimization products are a prefect match to Tecnomatix Unicam's core strengths, and eMPower applications, in electronics assembly."

"CIMBridge is an excellent addition to the Tecnomatix eMPower MPM solutions suite," said Israel Levy, CEO of Tecnomatix Unicam. "With more than 1000 mutual customers, the CIMBridge acquisition is a natural progression for the Teradyne/Tecnomatix alliance, allowing both companies to focus on core strengths, as we continue our work together as leaders in the electronics manufacturing market.

Teradyne and Tecnomatix Unicam will begin implementing a transition plan that will enable Tecnomatix Unicam to assume full responsibility for CIMBridge's support channels.

About Tecnomatix Technologies, Ltd

Tecnomatix Technologies, Ltd. (NASDAQ: TCNO) is the driving force in Manufacturing Process Management (MPM). Today's leading global manufacturers are adopting MPM solutions to expand revenue potential and reduce costs by enhancing manufacturing's ability to support the business strategy of choice. These companies are using Tecnomatix eMPower MPM solutions to accelerate product introductions, shorten time to volume, and optimize production execution. eMPower enables our customers to succeed with its collaborative, open platform and applications for defining, simulating, managing, and executing manufacturing processes across the extended enterprise.

For additional information about why automotive, electronics, aerospace and other discrete manufacturing leaders -- such as BMW, Ford, GM, Mazda, Comau, Faurecia, Sanmina-SCI, Solectron, Nortel, Philips, Boeing, Airbus, GE Aircraft Engines, Lockheed Martin -- have been turning to Tecnomatix MPM solutions, visit www.tecnomatix.com

For more information contact:

• Bill Siegel
• bsiegel@tecnomatix.com
• Director of Corporate Communications
• Tecnomatix Technologies, Ltd.
• Nashua, NH USA
• 603.589.1434
  
• Todd Van Hoosear
• tvanhoosear@webershandwick.com
• Boston MA USA
• 617.620.7114
  

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.

CONTACT:
Mark Stygles
Teradyne Marketing Communications, North America
Westford, MA USA 01886-0033
Tel: 978.589.7425
mark.stygles@teradyne.com
or
Renate Fritz
Marketing Communications, Europe & Asia
Teradyne GmbH, Assembly Test Division
Tel: 49.89.962.85.303
Ismaning, Germany
renate.fritz@teradyne.com