GenRad Selected by Knorr-Bremse to Supply Diagnostic Systems for Trucks, Buses and Trailers.

WESTFORD, Mass.--(BUSINESS WIRE)--Jan. 27, 1999--GenRad, Inc. (NYSE:GEN) today announced that its Advanced Diagnostic Solutions (ADS) business unit in Munich, Germany and Stockport, UK has been selected by Knorr-Bremse in Munich, Germany, to supply 500 of GenRad's latest generation diagnostic systems, in a deal worth $4.5 million.

The GDS3500 is the latest in GenRad's 3xxx series and is a portable, rugged PC based service tool designed for use by service technicians and engineers. The combination of upgradeable PC architecture featuring Pentium processor and modular instrumentation makes the unit a flexible solution.

Knorr-Bremse will be using the GDS3500 to diagnose complex electronic, electropneumatic and pneumatic vehicle systems within a demanding environment. Their GenRad solution will include diagnostics, measurement and a workshop information system. The diagnostic applications are being authored using GenRad's Application Development Environment (GRADE), a modular set of tools, processes and programs enabling users to author diagnostic sequences in a structured and automated manner.

Willy van der Veken, Director of Knorr-Bremse Aftermarket Sales commented, "GenRad will be supplying us with a combination of advanced diagnostic techniques and breadth of industry experience. We are very much looking forward to working together. Knorr-Bremse wants to improve their market position with this diagnostic system and give their customers the technological competence to repair high tech commercial vehicles today and in the future."

Paul Geere, President of GenRad ADS stated, "We continue to provide solutions for the transportation industry and this significant win will build upon the expertise that we have already gained within the truck industry. It also represents a step closer in our aim to provide an industry standard platform from which all component suppliers and truck manufacturers will be able to benefit."

Knorr-Bremse Background

Knorr-Bremse is a leading supplier of brake systems for railway and commercial vehicles worldwide. The company is headquartered in Munich, Germany and was founded in 1905. It has over 7000 employees, with a turnover of 2000 million DM. Knorr-Bremse's web site is http://www.knorr-bremse.com.

GenRad Advanced Diagnostic Solutions (ADS) Background

Advanced Diagnostic Solutions, headquartered in Stockport, England, is a leading global supplier of diagnostic and information solutions, specialising in complex electrical and electronic systems for automotive, aerospace, agricultural, construction and related industries.

GenRad Background

GenRad, Inc. provides electronics OEMs and their customers with the hardware, software and services to increase productivity by optimizing product design, manufacturing and after-market service. GenRad, headquartered in Westford, MA, offers products and services through three business units: Advanced Diagnostic Solutions (ADS), Electronic Manufacturing Systems (EMS), and GR Software (GRS). GenRad's web site address is http://www.genrad.com.

GenRad's most current shareholder information is available by visiting our Website at http://www.genrad.com or calling our Fax on Demand Service at [phone].

Statements made in this press release which are not historical, including statements regarding future performance, product capabilities and markets are forward looking statements and as such are subject to a number of risks. Factors that may cause results to differ materially from those projected are discussed in GenRad's 1997 Annual Report on From 10K for the fiscal year ending January 3, 1998 and form 10-Q for the quarter ended October 3, 1998 under the section "Management's Discussion and Analysis of Financial Conditions and Results of Operations - Factors That May Affect Future Results."