SHANGHAI, China--(BUSINESS WIRE)--April 21, 2003--

SITEC will have several locations in China to tap growing semiconductor industry

Teradyne (NYSE:TER) and United Test and Assembly Center Ltd (UTAC) today announced a cooperative agreement to establish a series of Semiconductor Industrial Training & Engineering Centers (SITEC). SITEC will provide semiconductor development, production engineering and industrial training services to the industry. SITEC's focus will be in semiconductor test and assembly capabilities, but will start with an initial focus on test technologies.

SITEC's engineering services segment will focus on providing test program development, loadboard/probecard design and test production solutions for the semiconductor industry. These services will help bring chip designs to commercial products with faster time to market. SITEC's training services are aimed at semiconductor companies and individuals, focusing on practical hands-on training as opposed to theoretical classroom teaching. UTAC will provide its industrial know-how, experience and knowledge of industry requirements. Teradyne will contribute information on its latest technology to ensure that students are trained on the most industry-relevant platform. SITEC will also be a certified 3rd party training provider on behalf of Teradyne.

SITEC is a global initiative with locations planned in China, US, Singapore and Europe. SITEC's China strategy and locations will be centered in the Beijing, Shanghai and Shenzhen triangle. SITEC has selected Teradyne's Catalyst and J750 as the first test systems.

"Selecting the Catalyst and the J750 ensures that SITEC will reach a very wide device market segment from digital consumer to CPU to mixed-signal wireless applications," said Mr. CK Tan, Vice President of Worldwide Strategic Business, UTAC. "China is rapidly expanding in the semiconductor industry with the growth of IC foundries and the fabless sector. With that growth, there is an increasing demand for test engineering services. Partnering with Teradyne, the leading ATE supplier, will position UTAC to meet this demand."

" We are very pleased that UTAC has selected the Catalyst and J750 as the test systems for the Training & Engineering Center in China. Catalyst's proven track record in the SOC market will shorten the time to market and allow customers to get their first silicon into volume production in the shortest possible time," said Hock Chiang, Managing Director, Teradyne Semiconductor Test Operations in China.

"Skill development with practical hands-on experience is also vital to meet the demand for continuing education from semiconductor companies in China. Establishing practical training centers with a set of industry-relevant testers will produce engineers with the right skill set required by the industry," added Mr. Tan of UTAC.

About Semiconductor Industrial Training & Engineering Center Pte Ltd (SITEC)

Semiconductor Industrial Training and Engineering Center (SITEC) is an independent semiconductor engineering services and practical training services company that will provide semiconductor production engineering services and industrial training services to the industry. SITEC's initial focus is in semiconductor test capabilities. Its engineering services include test program development, loadboard/probecard design and total test solutions for semiconductor industry on multiple test platforms. SITEC's practical training services arm provides hands-on test training services for engineers and technicians for companies and individuals.

About United Test and Assembly Center Ltd (UTAC)

United Test and Assembly Center Limited ("UTAC") provides full turnkey solutions in assembly and testing of memory and mixed signal semiconductors. UTAC's "BM/W" strategy focuses on accelerating penetration into and expansion in the Broadband and Mobile/ Wireless communications industries. UTAC's customer base comprises leading and emerging global designers and manufacturers of semiconductors that power computing, communication, and consumer electronic appliances. UTAC is headquartered in Singapore, and is supported by a global sales and marketing network in Italy, Israel, Japan, and the United States. For further information, visit http://www.utac.com.sg.

About Catalyst

Catalyst dominates the SOC market with more than 1000 systems shipped. Test capabilities include full coverage for DSL, wireless/RF, networking, and power management applications. With more than 4,000 individual users worldwide, Catalyst's IMAGE programming system is the most widely used ATE software environment. Catalyst offers multi-site testing, providing the best test economics, and the most complete array of analog instrumentation for test coverage and production flexibility. When a mobile phone call is placed, or a PC, printer, scanner, pager, or DVD is utilized, Catalyst tested ICs make it happen and with the lowest cost of test.

About the J750

The J750's high-throughput parallel test capability provides as high as 95% parallel test efficiency for up to 32 devices. The zero footprint system delivers up to 1,024 I/O channels contained in a test head, and offers a suite of options, including the Converter Test Option, Memory Test Option, Redundancy Analysis, and Mixed Signal Option, that broaden the range of testing capabilities. The system also features IG-XL test software that combines the power and performance of the latest PC technology and Windows NT operating system with the familiarity of standard Windows productivity tools, such as Microsoft Excel and Visual Basic. The J750's small footprint and high parallel test throughput provide the most economical approach to testing complex VLSI devices with embedded memory and analog cells.

About Teradyne

Teradyne (NYSE:TER) is the world's largest supplier of Automatic Test Equipment, and a leading supplier of interconnection systems. The company's products deliver competitive advantage to the world's leading semiconductor, electronics, automotive and network systems companies. In 2002, Teradyne had sales of $1.22 billion, and employed about 7000 people worldwide. For more information, visit www.teradyne.com.