Press Release:

Teradyne Signs Molex Incorporated as Second-Source Producer of High-Speed Interconnect

NASHUA, NH, August 8, 2000 -- Teradyne, Inc. and Molex Incorporated have signed a second-source licensing agreement under which Teradyne grants Molex the right to manufacture, market and sell the High-Speed-Differential (HSD) version of the market-leading VHDM interconnect. In 1998, Molex and Teradyne signed a licensing agreement for the standard single-ended VHDM connector family. Financial details regarding the agreement were not disclosed.

VHDM is a metric-grid pin-and-socket connector that combines integral stripline shielding to achieve a balance between high usable signal pin density and high-speed signal integrity. VHDM-HSD connectors arrange the signal pins into pairs to enhance speed and bandwidth. The 8-row VHDM-HSD connector features three pairs of signal contacts and two ground pins (38 real signal pairs per inch, 15 per cm); the 5-row VHDM-HSD provides two pairs of signal contacts and one ground (25 real signal pairs per inch, 10 per cm). HSD-8 and HSD-5, both covered in this agreement, are capable of data rates of 2.5Gb/s and greater to meet the bandwidth needs of advanced telecom equipment, servers, and routers.

Under terms of the agreement, Molex is licensed under Teradyne's patents, trademarks, and technology to make and sell VHDM-HSD worldwide. The two companies will also work jointly to improve and enhance their respective production and process capabilities and insure customers of the intermateability and interchangeability of VHDM. Molex expects to begin production of VHDM-HSD 8-row and VHDM-HSD 5-row connectors in 2001.

Rick Schneider, Vice President of Teradyne, Inc. and General Manager of the Connection Systems Division, said, 'The Teradyne-Molex relationship helped make VHDM the success it is today. The new HSD versions of the product are aimed squarely at meeting the bandwidth needs of Internet and telecom equipment. Extending the existing Teradyne-Molex license agreement to include VHDM-HSD makes perfect sense.'

Martin Slark, Executive Vice President of Molex, said, 'Molex is especially happy to see the growing strength of the Teradyne-Molex relationship and the success of these products in the marketplace. We know that customers appreciate having multiple identical VHDM products available from both suppliers. Molex will tool both VHDM-HSD 8 and 5-row versions aggressively.'

Teradyne is the world's largest supplier of automatic test equipment and related software for the electronics and telecommunications industries. Based in Boston, MA, the Company reported sales of approximately $1.8 billion in 1999 and currently has about 8,000 employees worldwide. The Connection Systems Division of Teradyne, headquartered in Nashua, New Hampshire, is a leading manufacturer of high-performance, custom backplanes, high-speed/high-density interconnects, and complete electro-mechanical packaging subassemblies. The division employs over 3,300 people and operates plants in California, Texas, and Ireland in addition to its extensive New Hampshire production facilities. Teradyne's World Wide Web address is http://www.teradyne.com

Molex Incorporated is a 62-year-old manufacturer of electronic, electrical and fiber optic interconnection products and systems; switches; value-added assemblies; and application tooling. Based in Lisle, Illinois, USA, the Company operates 52 manufacturing facilities in 19 countries and employs approximately 17,650 people. Contacts: Teradyne: Cathy Palmer, 603/879-3600 cathy.palmer@teradyne.com Molex: Susan Armitage, 630/527-4561 sarmitage@molex.com