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Philips Lighting Strengthens Supply Chain With Teradyne SCE™ Software

WESTFORD, MA - January 17, 2002 - Teradyne's [NYSE: TER] Assembly Test Division, a global leader in electronics testing and production solutions, today announced its industry leading GR Force/SCE™ supply chain software has been selected for deployment by Philips Lighting Electronics Europe. GR Force/SCE optimizes collaborative manufacturing across a distributed, international, multi-company supply chain.

Teradyne SCE™ provides up-to-the-minute production information that enhances customer responsiveness and increases manufacturing efficiency. Its Web-centric portal provides an integrated view of shop floor operations reflecting the real-time status of orders, resources and materials.

"Philips Lighting Electronics operates in high tech markets. Our products change rapidly and meet very high quality standards. This requires a world-class manufacturing environment, built and sustained by people who continuously decide and act in line of the company's mission," said Jos Aarts, Industrial Manager Business Group Lighting Electronics of Philips Lighting.

"Efficient information sharing between each other is a primary condition for this success. Teradyne SCE™ perfectly fits to these needs," Aarts added. "It is a state-of the-art technology product, highly adaptable for specific business needs, becoming the backbone of our shop floor information channels. With Teradyne SCE™ in place we expect to get the ability to manage better the shop floor operations and strengthen our supply chain."

The ARC Advisory Group, a leading provider of strategic planning and technology assessment services to manufacturing companies, strongly advocates the introduction of supply chain execution software solutions. They believe such applications allow manufacturers to maximize efficient utilization of company assets, reduce inventories and overhead, and accelerate products to market.

"Manufacturers such as Philips Lighting are discovering that they can extract efficiencies from the critical 'Make' portion of their supply chain by increasing shop floor visibility and implementing management by exception practices on their shop floor," said Greg Gorbach, ARC Advisory Group's Director of e-Manufacturing. "Teradyne SCE™ software is one of a new breed of Web-centric supply chain execution solutions that can help discrete manufacturers improve their performance."

"Teradyne is committed to providing customers with the solutions that enable them to strengthen their manufacturing supply chain and better meet their customer needs," said Ron Lindell, manager of Teradyne's supply chain execution software group. "Teradyne SCE™ achieves this by providing high-resolution visibility into all phases of the manufacturing environment. It is the definitive software platform for discrete manufacturers to generate continuous business process improvements within the supply chain."

About Teradyne SCE™

Teradyne SCE™ enables discrete manufacturers to meet their business objective of minimizing inventory and improving customer satisfaction by providing real-time shop floor information to manufacturers and their partners via the Internet. Teradyne SCE™ further increases manufacturing throughput by identifying production bottlenecks in real-time and it decreases time to market by electronically managing the implementation of engineering changes.

Teradyne SCE™ easily integrates with other factory and corporate information systems by using industry standard XML interfaces and provides the lowest total cost of ownership through a 100% browser based thin-client and a high performance Java 2 Enterprise Edition (J2EE) application server.

About Philips Lighting

Philips Lighting, a division of Royal Philips Electronics and headquartered in Eindhoven in the Netherlands, is number one in the global lighting market, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities. Its strategic ambition is to set the pace in the lighting industry as the first-choice innovative partner for the supply of creative and cost-effective lighting solutions. The division's products are found all around the world: not only everywhere at home, but also in a multitude of professional applications. Products include a full range of incandescent and halogen lamps, compact and normal fluorescent lamps, high-intensity gas-discharge and special lamps, fixtures, ballasts, Lighting electronics and automotive lamps. Philips Lighting employs some 47,000 people worldwide with manufacturing operations in the Netherlands, Belgium, Germany, France, the United Kingdom, Poland, the United States, Canada, Brazil, India, Indonesia, Thailand, the People's Republic of China, South Korea, Spain and Mexico.

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