SHANGHAI, China--(BUSINESS WIRE)--March 15, 2004--Teradyne, Inc. (NYSE:TER) announced that Vimicro, a leading Chinese chip solution provider of digital imaging and communication technology to worldwide telecommunication, PC, mobile and consumer markets, has specified the J750 test system with the Mixed-Signal Option (MSO). Vimicro will use Teradyne's J750 MSO to test a new audio processor device designed to provide high quality music ring tones and rich game sounds for mobile phones. In the competitive selection process, Teradyne was chosen based on the J750's high performance signal generation, capture and analysis capabilities and high parallel test which reduces the overall cost of test.

"We depended on Teradyne's local applications team to develop our new test solution with the highest device test parallelism with the lowest test time," said Raymond Zhang, Vice President, Vimicro Corporation. "We are very impressed with the results. The Mixed-Signal Option specification on Teradyne's J750 aligns well with our new audio chip performance. Vimicro has valued Teradyne's participation on previous projects, and we look forward to continuing the relationship as we expand our audio and mobile imaging processor device family."

"Teradyne targeted the development of the MSO against the baseband, mobile, and lifestyle consumer markets to provide a high-volume, cost-sensitive test solution," said Hock Chiang, Managing Director, Teradyne Semiconductor Test Operations in China. "We look forward to working with Vimicro, one of the fastest growing fabless companies in China, to jointly develop best-in-class test solutions for a range of growing consumer markets."

About 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 Vimicro Corporation

Vimicro Corporation is a Hi-Tech start-up providing cutting-edge digital imaging and communication technology to worldwide telecommunication, PC, mobile, and consumer markets. Vimicro has strategic relationships with Microsoft, Foxconn Group, and China Telecom to address a large market in Internet multimedia communication. Supported by the Chinese Ministry of Information Industry, Vimicro is now helping to standardize Chinese Internet multimedia communication through its VXP system. Please visit www.vimicro.com for more information.

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 2003, Teradyne had sales of $1.4 billion, and currently employs about 6100 people worldwide. For more information, visit www.teradyne.com. Teradyne is a trademark of Teradyne, Inc. in the US and other countries.

Product names are trademarks or registered trademarks of their respective owners.