Charge to be Taken Against 1998 Restated Results

Westford, Massachusetts -- April 8, 1999 -- GenRad, Inc. (NYSE: GEN) today announced that a settlement has been reached regarding the demand for arbitration asserting claims in connection with the merger transaction between GenRad and Industrial Computer Corporation (ICC). The demand for arbitration was filed on May 27, 1998 and has been discussed in GenRad’s Forms 10-Q, filed with the Securities and Exchange Commission (SEC), for the second and third quarters of 1998.

Under the terms of the settlement, GenRad will pay $11,000,000 to the former shareholders of ICC, $4,000,000 of which will be funded by insurance proceeds. During the period from April 7, 1998 through April 30, 1999, Frank Wingate has served as President of ICC/GR Software, a business unit of GenRad. Mr. Wingate and GenRad are separating on mutually agreeable terms. The settlement will result in a $7,650,000 charge to operations, which will be recorded in 1998. The $7,650,000 charge includes the cost of settlement, net of insurance proceeds, as well as the cost of the arbitration itself, including the Company’s legal fees. The charge will be recorded at the time GenRad files its Annual Report on Form 10-K for the fiscal year ended January 2, 1999. The Company is still in discussions with the SEC regarding the comment letter GenRad received January 6, 1999 relating to its charge for in-process research and development recorded in the second quarter in connection with its acquisition of ICC. Upon completion of its discussions with the SEC, GenRad will restate its previously announced earnings for the second, third and fourth quarters and fiscal 1998 and promptly file its amended Forms 10-Q and its Annual Report on Form 10-K.

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.