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Sun Microsystems Chooses Teradyne SCE™ for Its Discrete Manufacturing Solution

WESTFORD, Mass. - Feb. 11, 2002 - Teradyne's (NYSE:TER) Assembly Test Division, a global leader in electronics testing and production solutions, announced today that Sun Microsystems has selected Teradyne SCE™ for inclusion in Sun Microsystems' discrete manufacturing solution. The announcement was made at the ARC Advisory Group's Manufacturing Strategies for the Plant Floor Forum, in Orlando, Florida.

Sun's solution is a comprehensive offering to meet the needs of discrete manufacturers worldwide. Teradyne SCE™ provides the supply chain execution functionality for Sun's offering. Teradyne SCE™ is a high performance, high availability collaborative manufacturing execution system. It provides up-to-the-minute production information that enhances customer responsiveness and increases manufacturing efficiency to optimize collaborative manufacturing across a distributed, international, multi-company supply chain.

"Leveraging Teradyne for Sun's manufacturing solution makes sense, since as a customer, Sun has been using their supply chain execution solutions for some time," said William Gerould, group manager discrete manufacturing at Sun Microsystems. "This latest version of Teradyne SCE™, 100% built from the ground up using Sun's Java(TM) 2 Platform, Enterprise Edition (J2EE(TM)) technology, should provide Sun as well as our manufacturing partners and customers with all the benefits of the Java platform right on the factory floor."

Teradyne SCE™ software helps manufacturers of highly engineered complex products meet their business objective of minimizing inventory by providing real-time shop floor visibility to manufacturers and their partners via the Internet. Teradyne SCE™ also increases manufacturing throughput by identifying production bottlenecks in real-time, and it decreases time to market by electronically managing engineering changes.

"We are very excited to be working with Sun in the discrete manufacturing sector," said Ron Lindell, manager of ATD's Supply Chain Software business unit. "By upgrading their supply chain execution infrastructure to Teradyne SCE™, discrete manufacturers will be able to exercise much greater control over their critical manufacturing activities and become significantly more efficient and cost effective."

About Teradyne SCE™

Teradyne SCE™ is an open industry standards based enterprise solution that easily integrates with other factory and corporate information systems using XML interfaces. It provides the lowest total cost of ownership through a browser based thin-client and a Java 2 Enterprise Edition (J2EE) compliant application server. Teradyne SCE™ enables management by exception by monitoring system variables such as statistical process control parameters and automatically notifying people and supply chain event management systems when a threshold is crossed on the factory floor.

About Sun

Since its inception in 1982, a singular vision -- "The Network Is The Computer(TM)" -- has propelled Sun Microsystems, Inc. (Nasdaq: SUNW), to its position as a leading provider of industrial-strength hardware, software and services that power the Internet and allow companies worldwide to take their businesses to the nth. With $18.3 billion in annual revenues, Sun can be found in more than 170 countries and on the World Wide Web: http://sun.com.

About ARC Advisory Group

ARC Advisory Group provides strategic planning and technology assessment services to leading manufacturing companies, utilities, and global logistics providers, as well as to software and solution suppliers worldwide. From Global 1000 companies to small start-up firms, ARC has the strategic knowledge needed to succeed in today's technology driven economy. Further information can be obtained from Maryanne Flynn at ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1160, Fax 781-471-1060, Web: www.ARCweb.com, E-mail: mflynn@arcweb.com.