Consolidated Balance Sheets
Consolidated Statement of Operations
Supplemental Information

WESTFORD, MA, -- April 24, 2001 -- GenRad, Inc., [NYSE: GEN], a global leader in electronics testing and manufacturing solutions, today reported a net loss of $10.1 million, or $0.35 per share, on revenues of $62.4 million for the first quarter ended March 31, 2001. This compares with net income of $2.3 million, or $0.08 per share, on revenues of $66.4 for the same period in 2000. These results exclude a $3.1 million, or $0.07 per share, pre-tax restructuring charge in 2001, and a $16.5 million, or $0.55 per share, pre-tax unusual items and tax benefit in 2000.

"While first quarters are traditionally weak for GenRad, this first quarter has been especially difficult and is a direct reflection of weak global demand and dramatic slowdown in our customers' businesses," said Robert M. Dutkowsky, GenRad chairman, president and CEO. "Regardless of these challenges, we are working through this extraordinary downturn by investing in and enhancing GenRad's products and services solutions that help our customers gain productivity, competitiveness and profitability. That's our business----creating solutions for competitive advantage---and we are carefully creating a stronger, more compelling GenRad."

Dutkowsky also noted that GenRad began experiencing the downturn late last year and implemented cost- and expense-reduction initiatives including work force downsizing, out-sourcing printed circuit board production and business consolidations to temper the impact of the broad economic slowdown.

"While I won't minimize the impact of this slowdown, I want to point out that GenRad's global enterprise provides us with a degree of resiliency," stated Dutkowsky. Our business is equally distributed between our North America and Europe-Asia operations; our customers are well balanced between original equipment and contract manufacturers; and in 2001 no one customer is expected to account for more than eight percent of our business. This business diversity becomes an even greater strength in times of economic uncertainty."

Orders and Backlog

New orders for the quarter totaled $64.1 million resulting in quarter end backlog of $44.0 million, up from the 2000 year-end position of $42.3 million.

Bright spots regarding orders and backlog stem from the company's anticipated growth in its Functional Solutions and Service & Support businesses. Functional Solutions entered the second quarter with a backlog of $4.8 million, representing a 50 percent increase over the same period for the previous year. The Service & Support unit recorded a $24.3 million backlog at the end of the first quarter, which represents a 6 percent increase over the same period in fiscal 2000.

First Quarter Accomplishments

During the quarter, the company launched seven new test products or software applications focused on its key strategic lines of business. It also announced business relationships that expand the company's coverage and technology reach.

• New GenRad products were brought to market at the APEX and Etronix tradeshows, and included a new version of SFLM software that optimizes electronics manufacturing processes and GR Forceÿ, a software application that improves electronics test and inspection.
• Hardware introduced during the quarter included Pilotÿ LX targeted at large in-circuit board test systems; cell phone test solution, VersaTM software coupled with IFR hardware; an advanced re-work system, SummitTM 750; and two new X-Ray inspection systems, 2-D X-StationTM and 3-D X-StationTM.
• The company entered into a development partnership for optical test equipment with Tektronix, Inc., which is focused on test, measurement and monitoring solutions for telecommunications, computer and semiconductor industries worldwide.
• GenRad signed a Memorandum of Understanding with IFR Systems, Inc., providing a basis for cooperative development, marketing and manufacturing of test systems for wireless. IFR is a leading designer and manufacturer of advanced wireless test solutions for communications, avionics and general test and measurement applications.
• GenRad joined with other industry leaders in a Georgia Institute of Technology consortium is focused on implementing worldwide standards for shop floor equipment communications. The new standards will provide a software-based schema allowing diverse aspects of a printed circuit board production line to communicate.
• GenRad joined a collaborative venture with ACUNIA, a leading telematics technology provider in Belgium and the US, to establish a demonstration architecture for remote vehicle diagnostics services.
• GenRad received Best in Test and Service Excellence citations by leading manufacturing and electronics industry publications in the two areas.

Strategic Development

The company noted that it has significantly broadened its ability to partner with third-party software program developers by divesting its North American Test Technology Associates [TTA] business unit. This divestiture was announced on April 23, 2001.

"Our divestiture of TTA is indicative of GenRad's new strategic direction," Dutkowsky stated. "In this one action, we have narrowed our focus, created a strong solutions partner in the independent TTA, signaled the programming community worldwide that now we are ready to ally for mutual benefit and acted on our commitment to develop business advantage through partnership, not through acquisition."

The company has agreed to sell its TTA unit to a private investor, who will keep the company focused on serving the test and measurement segment of the market. The sale is expected to close before the end of the month. The company did not release the terms of the transaction.

Looking Forward

The first quarter results will have a material impact on our results for fiscal 2001, and cause us to alter our full-year revenue and profit outlook from the previously stated range of $340-350 million in revenue and $0.25 to $0.30 earnings per share. While the second quarter could show a slight improvement over the first quarter, it will remain negative. Due to the uncertainty that exists among our global electronics customers, it is extremely difficult to forecast beyond the next quarter when our markets will return to normal growth levels. The company currently is in compliance with its bank covenants, but is in discussions to amend them.

About GenRad

GenRad Inc. [NYSE: GEN] is a global leader of electronics manufacturing productivity solutions for contract and original equipment manufacturers [CMs and OEMs] 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.

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

Safe Harbor Statement

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 Annual Report on Form 10-K for the fiscal year ending December 30, 2000 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2001 under the section "Management's Discussion and Analysis of Financial Conditions and Results of Operations - Factors That May Affect Future Results."