Microchip Technology Selects Teradyne as Microcontroller Test Supplier.

Company purchases their first J750Ex system as part of multiyear pact

NORTH READING, Mass. -- Teradyne, Inc. (NYSE: TER), a world leader in high efficiency, low-cost test, today announced that Microchip Technology Inc. (NASDAQ: MCHP), a leading provider of microcontroller and analog semiconductors, has signed an agreement to continue using Teradyne J750 family and FLEX(TM) test platform systems for testing its portfolio of microcontroller products, including their high-performance dsPIC(R) digital signal controller (DSC) product line. The selection has driven a volume purchase agreement extending through 2009.

"The J750 and FLEX test platforms help us release new products quickly and meet our high-volume cost reduction goals," said Mathew Bunker, Microchip's vice president of PACRIM Manufacturing. "The IG-XL software environment allows our engineers to focus on releasing new microcontrollers. We look forward to taking advantage of the increased performance promised by Teradyne with the new J750Ex instruments."

"The J750 and FLEX test platforms are well suited for testing Microchip's advanced microcontroller peripherals, such as Ethernet, USB, and high-resolution ADCs and DACs, each of which are appearing increasingly often on Microchip's PIC18 and PIC24 microcontrollers and dsPIC DSC products," said Joe Thomsen, director of product development for Microchip's Advanced Microcontroller Architecture Division.

"Microchip was the first customer for the J750, which was specifically designed to meet the parallel test requirements of high-volume, cost-sensitive devices like microcontrollers," said Ian Lawee, marketing manager of Teradyne's J750Ex product. "The J750 platform is achieving continued customer momentum worldwide. With the broad test capabilities of the FLEX test platform and the introduction of the new J750Ex, Teradyne has the solutions to meet the economic and technical challenges within an evolving microcontroller market."

Microcontrollers span a wide range of applications from toys and appliances to automobile electronics. Testing microcontrollers can only be done cost effectively when testing multiple devices in parallel at high parallel efficiency. The J750Ex(TM) expands the J750 platform capability to meet new critical test requirements for digital, DFT, embedded memory, analog and power-supply testing, and offers greater than 98% parallel test efficiency. The J750 software, IG-XL(TM), was designed from the ground up for high-throughput, multisite testing, and has become the standard software system for all Teradyne semiconductor test systems.

About J750Ex

The J750Ex is the newest member of the successful J750 family of systems. Delivering up to 1,024 I/O channels in a zero-footprint, air-cooled, tester-in-a-test-head system design, the J750Ex offers a suite of enhanced options, including 200 MHz/400 Mbps digital, enhanced digital source and capture, memory test option, deep SCAN source and capture, and high density V/Is. All J750 family systems are DIB compatible, and the tens of thousands of existing J750 test programs can be easily converted to run on both J750Ex and J750 configurations. Customers can upgrade currently installed J750 systems to the J750Ex. To learn more about the J750 family, visit http://www.teradyne.com/J750/.

About FLEX Test Platform

Teradyne's FLEX test platform, which has surpassed its 1200th unit shipment, advances test technologies in an architecture designed for high-efficiency, multisite test. The platform offers multiple systems so customers can optimize for performance, configuration capacity, and capital cost to achieve lower cost-of-test. FLEX platform systems span test requirements from conventional DFT and structural test to standard analog and mixed-signal to the latest high-integration System-On-a-Chip (SoC) and System-In-Package (SiP) for consumer, automotive, mass storage, wireless, and data communications applications. To learn more about the FLEX platform, visit http://www.teradyne.com/flex/.

About Microchip Technology

Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller and analog semiconductors, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

About Teradyne

Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment used to test complex electronics for the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2006, Teradyne had sales of $1.38 billion, and currently employs about 3,800 people worldwide. For more information, visit www.teradyne.com.

Note: FLEX, J750Ex, IG-XL, and Teradyne (R) are trademarks or registered trademarks of Teradyne, Inc. in the U.S. and other countries. dsPIC is a registered trademark of Microchip Technology Inc. in the USA and other countries. All other trademarks mentioned herein are the property of their respective companies.

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