The goal of this alliance is to develop high-performance, low-cost solutions for the functional test of printed circuit boards (PCBs). The solutions developed throughout this cooperative effort will be built upon industry standard and proven technologies, such as PXI™/CompactPCI, GPIB, and software environments based on LabVIEW™, LabWindows™/CVI, and TestStand™. These new test solutions will be ideally suited to address the technology and pricing pressures facing many electronics manufacturers, specifically in the automotive, consumer electronics, and data communications industries. Today's functional test systems for these industries are typically developed by in-house personnel and dedicated to specific products.

Mike Schraeder, GenRad’s President of Electronic Manufacturing Systems, commented, "In addition to our own product development, we strongly believe that alliances to focus on solutions demanded by today’s manufacturers are key to successfully address competitive cost and time to market issues. With GenRad's and National Instrument's command of test and measurement hardware and software, these functional test solutions will allow both companies to better serve the needs of electronic manufacturers."

"There is an increasing need for lower-cost test systems that can perform functional tests faster," said James Truchard, President and CEO of National Instruments Corporation. "Historically, test systems simply have not kept pace with the huge performance and cost benefits delivered by the personal computer. Our alliance with GenRad, a leading supplier of functional test system solutions, will produce the next-generation systems needed for electronic manufacturers to test their products ten times faster and at a much lower cost."

For additional information on PXI/CompactPCI, please visit: http://www.frost.com/verity/press/industrial/pr556730.htm

National Instruments Background

National Instruments, a leading supplier of computer-based measurement and automation products, manufactures hundreds of software and hardware products which, when combined with industry-standard computers, are used for test, measurement, and industrial automation applications. Interested parties can obtain investment information from the company's Investor Relations Department at (512) 349-5090, e-mail nati@natinst.com, or by visiting www.natinst.com/investor

GenRad Background

GenRad, Inc. provides electronics OEMs and their customers with the hardware, software and services to increase productivity by optimizing product design, manufacturing and after-market service. GenRad, headquartered in Westford, MA, offers products and services through three business units: Advanced Diagnostic Solutions (ADS), Electronic Manufacturing Systems (EMS), and GR Software (GRS). GenRad’s web site address is http://www.genrad.com.

GenRad’s most current shareholder information is available by visiting our Website at http://www.genrad.com or calling our Fax on Demand Service at (800) 469-1261.

Product and company names listed herein are trademarks or trade names of their respective companies. Statements made in this press release which are not historical, including statements regarding future performance, product capabilities and markets are forward looking statements and as such are subject to a number of risks. Factors that may cause results to differ materially from those projected are discussed in GenRad’s 1997 Annual Report on Form 10K for the fiscal year ending January 3, 1998 and form 10-Q for the quarter ended October 3, 1998 under the section "Management’s Discussion and Analysis of Financial Conditions and Results of Operations – Factors That May Affect Future Results."