Net income for the first quarter of 1999, before reversal of a portion of the deferred tax valuation allowance, was $5.8 million versus $1.4 million for the first quarter of 1998. Backlog at the end of the first quarter was $27.9 million up from $21.6 million in the fourth quarter of 1998, an increase of 29%

Net income for the first quarter of 1999, including a reversal of a portion of the deferred tax valuation allowance of $4.5 million or $0.15 per share on a diluted basis, was $10.3 million or $0.35 per share on a diluted basis. Net income for the first quarter of 1998, including a reversal of a portion of the deferred tax valuation allowance of $7.5 million or $0.25 per share on a diluted basis, was $8.9 million or $.30 per share on a diluted basis.

Diluted weighted average common shares at the end of the first quarter of 1999 were 29,340,000 a decrease from the 1998 comparable period amount of 29,621,000.

James F. Lyons, GenRad’s President and Chief Executive Officer, commented, "We are pleased with this quarter’s results. Both the variance and the blend of our three business units provided the flexibility necessary to attain another successful quarter. Our performance met expectations and positions us for success going forward."

Lyons continued, "Having recently concluded the discussions with the SEC and arbitration with the former shareholders of ICC, and as we move further into 1999, our enthusiasm about the year continues to grow. We continue to maintain a high level of confidence in our operating plan and our strategic vision and remain excited about the opportunities ahead of us."

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 Solutions (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 1998 Annual Report on Form 10-K for the fiscal year ending January 2, 1999 and form 10-Q/A 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."