Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--Jan. 13, 2004--Teradyne, Inc. (NYSE:TER) announced that the U.S. Air Force (USAF) has awarded the company's Assembly Test Division a $67 million contract for test equipment to support intermediate level maintenance of the B-1B Lancer Strategic Bomber. Teradyne, the prime contractor, will be supplying 35 Spectrum 9000-Series Functional Test Systems over several years to the Oklahoma Air Logistics Center at Tinker Air Force Base (AFB), in Oklahoma. Teradyne has a long-standing relationship with the B-1B program, providing test equipment, software, and support to Tinker AFB.

"Teradyne's Spectrum 9000-Series plays an important role in sustaining the B-1B platform and enabling the B-1B to fulfill its mission for the Air Force," said Wendell Wilson, B-1B ADTS Program Manager, Tinker AFB. "With the selection of Teradyne as the prime contractor to provide the new B-1B Advanced Digital Test Station (ADTS), the ADTS Integrated Product Team building process is complete. The stage is set with this selection to begin program execution, which will lead to the successful fielding of needed capabilities to support the USAF war fighter and B-1B mission capability requirements."

"Teradyne has always prided itself in supporting Air Force programs," said Carl Rosenblatt, manager of Teradyne's Mil/Aero business unit. "We look forward to continuing this support by delivering best-in-class technology to support the mission readiness of the B-1B."

About the B-1B Lancer

Carrying the largest payload of both guided and unguided weapons in the Air Force inventory, the multi-mission B-1 is the backbone of America's long-range bomber force. It can rapidly deliver massive quantities of precision and non-precision weapons against any adversary, anywhere in the world, at any time.

About the Spectrum 9000-Series

Teradyne provides fully integrated functional test solutions based on the commercial-off-the-shelf (COTS) Spectrum-9000 Series Platform. Its modular design and open architecture enables the Spectrum-9000 Series to be tailored to meet the most demanding functional test applications of our military/aerospace customers. The Spectrum-9000 Series is deployed in a wide range of applications including factory functional test, intermediate level maintenance, and depot level maintenance with defense contractors and military logistics agencies throughout the world.

The Spectrum 9000-Series has also been selected by the United States armed forces to support a number of important defense programs. These include the Minuteman ICBM program, the Comanche Helicopter program and the USAF C-17 program.

About Teradyne

Teradyne (NYSE:TER) is the world's largest supplier of Automatic Test Equipment and a leading supplier of interconnection systems. The company's products deliver competitive advantage to the world's leading semiconductor, electronics, automotive and network systems companies. In 2002, Teradyne had sales of $1.22 billion, and currently employs about 6300 people worldwide. For more information, visit www.teradyne.com. Teradyne is a trademark of Teradyne, Inc. in the US and other countries.