The GDS3500 is a PC based service tool that is both portable and robust, and is ideal for deployment in the service bay or on the road. The diagnostic system has both an integral touchscreen and a detachable keyboard for greater flexibility and ease of use. The GDS3500 will provide Iveco with hardware and an operating system running Windows NT. GenRad will work in conjunction with Eltrac to develop the GDS3500’s VCL (Vehicle Communications Link) capability for Iveco trucks. Additionally, GenRad will supply the worldwide support for the new system.

Eltrac’s project director, Silvano Appiano, commented, "GenRad will be working in partnership with Eltrac to provide a complete diagnostic solution. This will involve the combination of Eltrac’s working knowledge of Iveco’s existing systems and the diagnostic and technological expertise that GenRad has already gained within the truck market. With this new diagnostic system, Iveco intends to rapidly increase the diagnostic capabilities in all of its service bays around the world and to further enhance its high-quality service to Iveco customers."

Peter Miles, Vice President and Director of Business Development for GenRad ADS, added, "This is a further move towards establishing GenRad as the de-facto standard for truck diagnostics. Our success is built on the success of our customers and we look forward to continuing this process in Europe and the United States."

Iveco Background

Iveco, a Pan-European Company owned by the Fiat Group, manufactures a complete range of commercial vehicles, as well as vehicles for defense, civil protection and fire fighting. Iveco is also a premier manufacturer of diesel engines and in joint venture with Renault Vehicules Industriel has a leading position within the European market. Its product range is sold and serviced through a worldwide distribution network of dealerships and service points. With a very strong position in Europe, Iveco is engaged deeply in its globalization process, which is already very strong in China, India and Mercosur. As a global player, Iveco is also present in over 100 countries. Iveco’s website address is http://www.iveco.com.

GenRad Advanced Diagnostic Solutions (ADS) Background

Advanced Diagnostic Solutions, headquartered in Stockport, England, is a leading global diagnostic and information solutions provider, specializing in the support of complex vehicle systems throughout their lifecycle from design to service.

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, product deployment 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 for the quarter ended April 3, 1999 under the section "Management’s Discussion and Analysis of Financial Conditions and Results of Operations – Factors That May Affect Future Results."