WESTFORD, MA, - January 16, 2001 - GenRad [NYSE: GEN], a leading developer of quality assurance technologies, today announced that its new GR Alchemist IIIÈ software solution is the first electronics manufacturing applications to be fully compliant with IPC's threshold GenCAMTM global standards.

Providing unprecedented levels of vendor-neutral data preparation capability, the GR Alchemist III delivers the first GenCAM-compliant reader, viewer and writer in the electronics manufacturing industry.

"GR Alchemist III establishes a new worldwide plateau for electronics manufacturing excellence and productivity, a level that our competitors must now strive to attain," stated Ronald Lindell, vice president of GenRad's Process Solutions unit. "We are delighted to be the first in our industry to deploy a product that is compliant with the new IPC standards, which have been under development for the last four years."

Some industry experts estimate GenCAM deployment could save contract and original equipment manufacturers $150 million a year or more in the US alone. However, such large contract manufacturers as Solectron and Celestica have production facilities worldwide and create the potential for even greater savings. The savings are based on adoption of the IPC GenCAM standard, and result from efficiencies in translation of data among proprietary formats.

The strategic value of the GenCAM standard is that it provides an open industry basis for data transfer. Therefore, with adoption of the new standards manufacturers will be able to integrate previously exclusive functions and electronic manufacturing machinery into a single smooth-flowing production stream. This extends from assembly through inspection and to final test of bare printed circuit boards as well as assembled printed circuit cards.

In addition to test program generation for all major test equipment vendors, GR Alchemist III has the capability to analyze a GenCAM file for testability by performing an automated design for test analysis.

In a move to further establish GenCAM's market position, GenRad's GR Alchemist III software is now deployed on all GR TestStation and GR Pilot test equipment and will be deployed on the company's X-Ray products beginning in the second quarter of 2001. GR Alchemist III View Station can be downloaded for evaluation from the companies website, www.genrad.com.

"The GenCAM standard will become a cornerstone for the entire electronics manufacturing industry by streamlining the critical link between design and manufacturing," said Joanne Friedman, vice president of Electronic Business Strategies for the Meta Group, Inc. "Adoption by both the vendor community and board and chipmakers will enable e-business to now move well beyond supply chain centricity into product lifecycle."

Celestica's Senior Engineer John Minchella stated that "having a single file where we know we can get all of the data we need to assemble and test a board will reduce our new product introduction times and speed our time to market."

George Arrigotti, senior engineer and Board Data Format Project Leader for system manufacturing at Intel Corporation, stated, "Intel chose GenCAM as our preferred manufacturing format because we want to reduce the cost of data translation, and avoid the impact that data translation delays and errors have on time to market on new products. We believe that the GenCAM standard is a significant factor in helping us achieve these goals."

Dieter Bergman, director of technology transfer at IPC, stated, "We are very encouraged by GenRad's adoption of the GenCAM standard. From the beginning, GenRad has been working as part of the team to develop the GenCAM standard, so we are pleased to know that GenRad's customers will benefit from the company's commitment to open industry standards."

About IPC

IPC is a U.S.-based trade association dedicated to the competitive excellence and financial success of its more than 2,700 member companies that represent all facets of the electronic interconnection industry, including design, printed wiring board manufacturing and electronics assembly. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of a $44 billion U.S. industry employing more than 400,000 people.

About GenRad

GenRad Inc. [NYSE: GEN] is a global leader of electronics manufacturing productivity solutions for contract and original equipment manufacturers [OEM] of handheld and wireless devices, PCs and business servers, DSL and other broadband switching and routing technologies, and other devices integral to emerging Internet e-commerce markets. GenRad also applies its technologies to development of diagnostic solutions for the automotive and general transportation industry.

GenRad is comprised of four lines of business bringing to market integrated hardware, software and service solutions that empower always-on services and un-interruptable business applications:

• Process Solutions focuses on in-circuit test, x-ray test, and re-work solutions as well as plant and line management solutions for electronic product manufacturers.
• Functional Solutions focuses on functional test platforms for manufacturers of telecommunications, computers and automotive electronics.
• Diagnostic Solutions focuses on service bay and manufacturing solutions for transportation OEMs and independent service providers.
• Support and Services focuses on maintenance programs, on-site and remote support, programming services, and training to help customers optimize their hardware and software solutions.

Founded in 1915, GenRad employs approximately 1,400 people and maintains its worldwide headquarters in Westford, MA, USA. The company's Web address is http://www.genrad.com.