T-Com Places Deployment Order for Teradyne's New Test Head, LDU 100, to Upgrade their Loop Test Platform; Unit Supports Future Testing Needs Including DSL.

Business Editors/High-Tech Writers

DEERFIELD, Ill.--(BUSINESS WIRE)--May 18, 2004

Teradyne, Inc. (NYSE:TER) Teradyne, Inc.'s Broadband Test Division today announced that T-Com, the fixed-line division of Deutsche Telekom, has placed a multi-year order to upgrade its loop test platform with the LDU 100 (Loop Diagnostic Unit). T-Com deployed Teradyne's 4TEL(R) voice service assurance software in 1994 testing approximately 49 million lines across Germany. T-Com has already upgraded to Teradyne's Next Generation Test System Controller (NGTSC) and now with the new LDU 100 the Teradyne platform offers an easy upgrade path for broadband functionality like DSL pre-qualification or DSL service assurance by adding the patented Celerity software application. Teradyne has over 15,000 LDU's deployed or on order with customers in Europe, North America and Latin America.

New software, combined with the LDU 100, provides increased dispatch accuracy that enables enhanced detection of access network related physical faults which effect voice and DSL services. 4TEL software and the LDU more accurately determine the network segment in which the fault is located enabling the correct work group to be dispatched. This significantly increases the productivity of the field repair workforce.

The LDU (Loop Diagnostic Unit) replaces the existing remote measurement unit in central office exchanges and will test the access network operated by T-Com. The LDU extends the measurement capability of 4TEL, known as SEPT internally to T-Com, with a DSP-based test head and provides a common platform to support voice and DSL services. 4TEL enables rapid, remote identification of faults within a telecommunications network, helping service providers improve customer service and reduce maintenance costs. "Deployment of the LDU 100 enables T-Com to meet current wire-line support requirements and positions them to extend their system to meet future DSL related testing requirements," said Harley Hasenberg, 4TEL Product Manager at Teradyne's Broadband Test Division.

About T-Com

T-Com is primarily responsible for the fixed-line network sector within Deutsche Telekom's four strategic business areas. The division is one of the largest fixed network providers in Europe, with 4.1 million T-DSL broadband Internet lines in operation and about 56 million connections including ISDN channels. Over 49 million of these are in Germany serving both private customers and small to medium-sized businesses. For roughly 440,000 such companies, T-Com functions as a full service provider for IT and telecommunications solutions. T-Com also participates in the growing markets of Eastern Europe via its stakes in Matav (Hungary), Hrvatske telekommunikacije (Croatia) and Slovak Telecom (Slovakia). Europewide, T-Com has approximately 140,000 employees.

About Teradyne Broadband Test Division

Teradyne Broadband Test is a division of Teradyne, Inc. (NYSE:TER). The group develops state-of-the-art testing capabilities that support service provider's goals to sell and deploy more broadband services sooner and improve the efficiency of qualification, provisioning, and customer care for voice, DSL, and CATV high-speed data networks. Teradyne's 10 years of internet protocol testing experience and industry leading background in layer one testing enhances its 30 years experience in providing test systems that support voice customer care for approximately 125 Million voice lines worldwide. Teradyne is a leading suppler of automatic test equipment and high performance interconnection systems. The company had sales of $1.4 billion in 2003 and currently employs about 6,200 people worldwide. For more information on Teradyne's Broadband Test Products, visit Teradyne at: http://www.teradyne.com/prods/btd/.