TOKYO, Japan, February 2, 2007 – Advantest Corporation (TSE: 6857, NYSE: ATE), today announced plans to relocate production facilities as detailed below, in order to further strengthen its Just-In-Time Manufacturing System (JIT). Aiming at further improvements to work and logistical efficiency, it will transfer and concentrate the location of development activities, and production-related departments and subsidiary companies located in Saitama and Gunma.

Advantest has been carrying out production reforms since introducing JIT three years ago in order to meet the shorter delivery times requested by customers. As a result, visibility in production processes has led to improved work efficiency on the factory floor, production times have decreased and other improvements have been made within its factories. Through the relocations, Advantest is aiming to gain customer satisfaction as a manufacturing company by shortening delivery times further. Having adopted JIT in production departments, it will now transfer production facilities so that they are close to design and development-related activities, enabling JIT to be incorporated right from the design and development stage. By doing this, it will minimize transit time between locations and will result in a structure where production reforms can be carried out as a company as a whole, including the design and development departments. In addition, the floor space that will become available after the transfer and concentration of activities will be utilized in the further strengthening of JIT.

Until now, Advantest’s semiconductor and component test system business has been operating with its developments based at Gunma R&D Center, production at Kumagaya Factory and Gunma Factory, and board repairs and maintenance at Gunma Factory No.2. At Gyoda Office it has been operating its development and manufacture of key devices, its product maintenance and some quality assurance activities. The development and production base of the mechatronics system business has been at Otone R&D Center. Services, support and other businesses, including the related subsidiary companies providing employment benefits and facilities for employees, media services, personnel services and the preparation of manuals and documents, have been carrying out their activities at Gyoda Office. In addition, there is Advantest Laboratories Ltd., in Sendai, which researches next-generation semiconductor test technology. As well as improving work and logistical efficiency by moving and concentrating activities as follows, Advantest also aims to establish the JIT system it has been promoting thus far, into the areas of productivity and inventory reduction.

1.       Development and manufacture of key devices currently at Gyoda Office will move to Advantest Laboratories Ltd., in Sendai, and Kumigaya Factory respectively.

2.       Product maintenance company, Advantest Customer Support Corporation, currently at Gyoda Office will move to Gunma Factory No.2.

3.       Quality Assurance and components analysis, evaluation and research company, Advantest Analysis Laboratory Ltd., and staff training company, Advantest Academy, will move to Gunma R&D Center.

4.       Device interface company, Advantest DI Corporation, currently within Otone R&D Center will move to Gunma Factory No.2.

5.       The following subsidiaries, related to services, support and other businesses, currently at Gyoda Office will move to Otone R&D Center.

Advanfacilities Co., Ltd.

Advantest Green Corporation

Advantest Staff Resource Corporation

Advantest Media Service Corporation

Advantest Technical Information Service Corporation

Work relating to the repair and setting up of air conditioning and clean rooms for the relocations above will start in March 2007. The moves will take place as soon as preparations at each location have been made. All planned relocations are due to be completed by the end of the year. Please see the attached sheet for an outline of Advantest’s current plants.

Outline of Advantest's Current Plants

1.       Gunma R&D Center

(1)     Location: 336-1, Ohwa, Meiwa-machi, Ora-gun, Gunma

(2)     Workforce: 1,074

(3)     Business: Development of semiconductor test machines and related products and services

(4)     Floor Area: 40,440m²

2.       Otone R&D Center

(1)     Location: 1-5, Shin-tone, Otone-machi, Kitasaitama-gun, Saitama

(2)     Workforce: 334

(3)     Business: Development and manufacture of test handlers, E-beam lithography and related products and services

(4)     Floor Area: 36,670m²

3.       Kumagaya Factory

(1)     Location: 68, Nishino, Kumagaya-shi, Saitama

(2)     Workforce: 226

(3)     Business: Board production

(4)     Floor Area: 27,000m²

4.       Gunma Factory No.2

(1)     Location: 3685-1, Akahori, Ora-machi, Ora-gun, Gunma

(2)     Workforce: 62

(3)     Business: Parts repair and maintenance

(4)     Floor Area: 29,350m²

5.       Gyoda Office

(1)     Location: 1-16-1, Fujimi-cho, Gyoda-shi, Saitama

(2)     Workforce: 242

(3)     Business: Quality assurance, maintenance of semiconductor test systems, development and manufacture of key devices, preparation of manuals, dispatch of staff

(4)     Floor Area: 19,902m²

6.       Advantest Laboratories

(1)     Location: 48-2, Matsubara, Kami-Ayashi, Aoba-ku, Sendai-shi, Miyagi

(2)     Workforce: 95

(3)     Business: Research into next-generation semiconductor test technology, research and development of key devices

(4)     Floor Area: 10,113m²

Note:
All information supplied in this release is correct at the time of publication, but may be subject to change without warning.

About Advantest
Advantest Corporation is the world’s leading automatic test equipment supplier to the semiconductor industry, and also produces electronic and optoelectronic instruments and systems.  A global company, Advantest has long offered total ATE solutions, and serves the industry in every component of semiconductor test: tester, handler, mechanical and electrical interfaces, and software.  Its logic, memory, mixed-signal and RF testers and device handlers are integrated into the most advanced semiconductor production lines in the world.  Founded in Tokyo in 1954, Advantest established its first subsidiary in 1982, in the USA, and now has 43 subsidiaries worldwide.  Among them, Advantest America, Inc. is based in Santa Clara, CA., and Advantest (Europe) GmBH is based in Munich, Germany.  More information is available at www.advantest.co.jp