SHANGHAI, China--(BUSINESS WIRE)--March 17, 2004--Teradyne, Inc. (NYSE:TER) announced AIC Microsystems Co., Ltd., a leading supplier of highly integrated system-on-a-chip (SOC) solutions in the multimedia consumer markets, has selected Teradyne to test a next-generation Audio DAC (Digital to Analog Converter). AIC's selection of Teradyne, in a competitive design win, was based on the mixed-signal test capability of the Catalyst test system for characterization, the economics of the J750 test system for production testing and Teradyne's local applications support. With full spectrum instrumentation, Catalyst delivers full test coverage for high performance design verification for a wide range of applications and the J750 architecture is designed to offer the lowest cost of test in a production environment.

"Our chip is a high performance DAC device. It requires a tester with superior audio bandwidth and dynamic range performance," said Lin Tao, CEO, AIC Ltd. "We selected Teradyne because of the analog capability of Teradyne test systems. In addition, the local support team has added significant value by working closely with us to reduce the cost of test."

"Teradyne is committed to accelerate the growth of the Chinese semiconductor industry by offering years of device test experience and leading-edge test technology," said Hock Chiang, Managing Director, Teradyne Semiconductor Test Operations in China. "We are pleased to have the opportunity to offer our expertise to this important design company and work with AIC in developing the highest test performance at the lowest test cost."

About Catalyst

Catalyst dominates the SOC market with test capabilities for DSL, wireless, microwave and power management applications. With more than 4,000 individual users worldwide, Catalyst's IMAGE(TM) programming system is the most widely used ATE software environment. Catalyst currently offers wireless devices, quad-site testing, providing the best test economics and most complete array of analog instrumentation. When a cell call is placed, or a PC, printer, scanner, pager, or DVD is utilized, Catalyst tested ICs make it happens.

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 AIC

AIC Microsystems Co. Ltd. is a company established by a team from former LSI Research Institute, Shanghai Jiao Tong University, under the leadership of Prof. Zhenghui Lin, both in China and aboard. The sizable initial funding comes from several international venture capitals and well-established companies. The company is registered in Shanghaiing, a focus area of Shanghai High Tech Industry. AIC develops general and ASIC products with its own IP, it also provide other service such as DSP development and system integration. It not only provides IC chips, but also comprehensive and system solutions.

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.