As a result of finalizing discussions with the SEC and reaching the recently announced arbitration settlement with the former shareholders of ICC, GenRad’s net loss reported for fiscal year 1998 has decreased to $.32 from $.49 per share on a diluted basis. The 1998 net loss, including unusual charges and net deferred tax benefit decreased to $9,068,000 from $13,716,000. Excluding unusual charges and a net deferred tax benefit, net income for fiscal 1998 decreased to $19,773,000 or $.67 per share on a diluted basis from $20,755,000 or $.70 per share on a diluted basis.

As a result of this restatement the Company’s intangible assets related to the acquisition of ICC have increased, which will result in additional amortization costs of $416,000 per quarter.

In connection with today’s announcement, GenRad will amend its reports on Form 10-Q for the second and third quarters of 1998 and file its Annual Report on Form 10-K for 1998 to reflect the restatement in accordance with the new guidelines from the SEC.

The effects of the restatement on the second and third quarters of 1998 are as follows. For the second quarter of 1998, GenRad’s net loss decreased to $.42 from $.88 per share on a diluted basis and to $11,940,000 from $24,804,000. Net income excluding unusual charges decreased to $5,736,000 or $.19 per share on a diluted basis from $6,152,000 or $.21 per share on a diluted basis. For the third quarter of 1998, GenRad’s net loss increased to $.14 from $.12 per share on a diluted basis and to $3,919,000 from $3,503,000. Excluding unusual charges, net income decreased to $6,506,000 or $.22 per share on a diluted basis from $6,922,000 or $.24 per share on a diluted basis.

For the fourth quarter of 1998, which also includes the effect of the arbitration settlement, GenRad’s net income of $5,682,000 or $.20 per share on a diluted basis decreased to a net loss of $2,118,000 or $.08 per share on a diluted basis. Excluding unusual charges, restated net income for the fourth quarter was $5,532,000 or $.19 per share on a diluted basis. GenRad’s restated numbers for these quarters and for full-year 1998 can be viewed along with this press release at http://www.genrad.com.

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.

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."