MUNICH, Germany -- August 8, 2001 -- GenRad Inc. [NYSE: GEN], a leading developer of advanced test solutions for electronics manufacturers, today announced that it has been selected by Alcatel as a global test solutions partner for xDSL products.

Alcatel chose GenRad as its test technology partner following a collaborative project using GenRad•s GENEVA® functional test platform which reduced manufacturing test time from 14 minutes to 2.5 minutes per printed circuit board.

"GenRad has enjoyed a long-standing relationship with Alcatel as a provider of in-circuit test solutions for their Aerospace division, as well as in-circuit and functional test solutions for the telecommunications group," said James Ficaro, GenRad vice president for its Functional Solutions business unit.

"In arriving at this most recent agreement," Ficaro added, "GenRad engineers worked with Alcatelês development team to design a functional test system that would fulfill their unique requirements including test times specific to Alcatel•s DSL strategy."

Alcatel will use the GENEVA systems to perform functional traffic testing as well as ITU parametric testing. –Such parallel testing of up to eight circuit boards reduces average test time per board and improves efficiency by reducing idle operator time,” said Bart Cox, Alcatelês Industrialization Manager at the Geel plant. –Since our test strategies are cost-driven, these are significant business benefits.”

The new functional test solution integrates Alcatelês line simulators, a fully equipped Spirent •SmartBitsê chassis and the GENEVA test system from GenRad which is optimized for telecommunications applications. The solution enables up to eight boards to be tested in parallel, and supports parametric (electrical) and transmission (traffic) tests concurrently.

In addition to the GENEVA implementation, Alcatel is also using the GR TestStationÈ from GenRad to perform in-circuit testing prior to the GENEVA functional testing. The first GR TestStation is in Alcatelês manufacturing center at Geel, Belgium. The Geel center annually produces one million units of telco ADSL central office switches as well as ADSL and ISDN customer premises equipment.

Alcatel Geelês in-circuit test manager, Willy van de Velde, said that –Only GenRad•s GR TestStation system offers the flexibility and efficiency we require for our in-circuit test on our production floor.” Alcatel•s tests include developing and validating manufacturing and test specifications for products manufactured in German, Belgian, Canadian and US design centers.

Technical Considerations
The VXI-based GENEVA test and measurement system offers superior product verification performance for high-volume manufacturing environments. The standardized platforms of the GENEVA system help ensure the production of high quality products and are designed specifically for the manufacturing environment. The modular hardware and software approach used in GENEVA allows building of application specific libraries that are compatible with and reusable on standard equipment supported by VXI, GPIB, IEEE, and PC Plug-in instruments.

As test requirements change, the GENEVA system can be upgraded and modified to suit any product verification needs, maximizing return on investment and quickly delivering quality products to the market.

The GR TestStation features the highest available pin-count and the option of the only all real-pin architecture available in the in-circuit test market. Recent GR TestStation innovations are focused around the new pin electronics that can both drive and sense at the accuracy that is required to test todayês low voltage electronic components used in products represented by wireless telephony, mobile computing, Internet and private networking routing. Significant new features of the hybrid pin boards are increased logic levels, backdrive monitoring, and programmable slew rates.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers world-wide. With 130,000 employees and sales of $29 billion (EURO 31 billion) in 2000, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com.

About GenRad, Inc.

GenRad Inc. [NYSE: GEN] a global leader in electronics testing and production solutions serving the worldês leading original equipment [OEM] and electronics manufacturing services [EMS] markets. GenRadês customers manufacture a wide range of advanced technology products ranging from computer, telecommunications and broadband networking devices to wireless products and enterprise hardware. With 37 offices in 22 countries, GenRad is comprised of four business units, each providing integrated hardware, software and service solutions

• Process Solutions develops products that enhance and optimize manufacturing processes. The unit's hardware products focus on in-circuit testing, x-ray imaging and rework solutions. Its software products address global supply chain collaboration and execution including Design-to-Build (D2B) software tools.
• Functional Solutions focuses on functional test platforms for manufacturers of telecommunications, computers and automotive electronics.
• Diagnostic Solutions Diagnostic Solutions focuses on service bay and manufacturing solutions for transportation OEMs and independent service providers.
• Support and Services Support and Services focuses on maintenance programs, on-site and remote support, and training to help customers optimize their hardware and software solutions

Founded in 1915, GenRad employs about 1,300 people with worldwide headquarters in Westford, MA, USA. Listed on the New York Stock Exchange since 1978, GenRadês Web address is www.GenRad.com.