Orders Increase to $96 Million Reflecting Ford WDS Ramp-Up

Westford, Massachusetts -- July 20, 1999 -- GenRad, Inc. (NYSE: GEN) today reported for its second quarter ended July 3, 1999 diluted earnings per share of $0.27, compared to $0.19, excluding unusual charges, for the second quarter of 1998. Net income for the second quarter of 1999, was $8.0 million versus $5.7 million, excluding unusual charges, for the second quarter of 1998. Revenues for the second quarter were $63.6 million versus $58.9 million for the second quarter of 1998. Orders for the second quarter of 1999 were $96.0 million versus $52.9 million in the second quarter of 1998.

Year to date net income, before a reversal of a portion of the deferred tax valuation allowance, was $13.8 million or $0.47 per share as compared to year-to-date 1998 net income of $7.1 million or $0.24 per share on a diluted basis, before a reversal of a portion of the deferred tax valuation allowance and excluding unusual charges. Revenues for the first six months of 1999 were $116.7 million as compared to revenues of $108.0 million for the same period last year. Orders for the first six months of 1999 were $155.3 million compared to $106.8 million for the first six months of 1998.

James F. Lyons, GenRad’s President and Chief Executive Officer, commented, "We are very pleased with the order, revenue and earnings per share growth generated in this second quarter. During the quarter, we began shipment of Ford WDS units into Europe and continued building inventories in anticipation of the third quarter launch in North America."

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 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."