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2009-04-27 00:00:00.0 Topics

Manufacturing Facilities Also to be Reorganized

TOKYO, Japan, April 27, 2009 - Advantest Corporation (TSE: 6857, NYSE: ATE), announced today that it has consolidated a number of its Japanese subsidiaries to reduce costs and enhance efficiency. The move is a key component of the structural reforms originally announced by the company in February.

Software subsidiaries consolidated

Advantest previously operated four separate software development subsidiaries. These have now been consolidated into a single subsidiary, enabling greater customer satisfaction through improved efficiency and resource-sharing.

Advantest Tohoku Systems Co., Ltd, Advantest Tokyo Systems Co., Ltd, and Advantest Kansai Systems Co., Ltd have been absorbed into Advansoft Development Corporation as of April 1, 2009.

Manufacturing subsidiaries consolidated

Advantest previously operated four subsidiaries that performed separate manufacturing- related business processes. The consolidation of these into a single subsidiary is expected to improve production efficiency by bringing together all the business processes associated with the company's Semiconductor and Component Test System segment and Mechatronics System segment.

Advantest Logistics Corporation., Advantest DI Corporation, and Advanmechatec Co., Ltd have been absorbed into Advantest Manufacturing, Inc. as of April 1, 2009.

Announcement of manufacturing reorganization

Following the consolidation of subsidiaries described above, the Advantest Group revealed that it is also in the process of reorganizing its manufacturing facilities. The company's Semiconductor and Component Test Systems products had previously been manufactured at two locations in Gunma Prefecture (Gunma Factory) and Saitama Prefecture (Kumagaya Factory), Japan, while Mechatronics products were manufactured at its Otone R&D Center, in Saitama Prefecture, and another factory in Gunma (Gunma Factory 2). After this reorganization, all manufacturing for both business segments will be carried out at Gunma Factory and Gunma Factory 2. Meanwhile, Kumagaya Factory will be closed. This reorganization will provide customer benefits by enabling more effective utilization of Advantest's process base and supply chain, while also reinforcing the just-in-time production process that forms a valued aspect of the company's competitive edge. Advantest expects to complete the reorganization by the end of May 2009.

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