IFR ANNOUNCES VEHICLE RADIO TEST SYSTEM TO REDUCE WARRANTY COSTS OF AUTOMOTIVE INFORMATION AND ENTERTAINMENT SYSTEMS

Stevenage, U.K. - January 7, 2002 - IFR Systems, Inc. (Nasdaq: IFRS) announced today it has launched the Vehicle Radio Test System (VRTS), designed to significantly reduce warranty costs associated with in-vehicle information and entertainment systems. VRTS verifies the quality of the assembly and installation of these systems by using automated functional testing as part of the production line process.

Tests are conducted in background without adding to existing production
flow-warranty savings could reach as high as $750,000 per year

Stevenage, U.K. - January 7, 2002 - IFR Systems, Inc. (Nasdaq: IFRS)
announced today it has launched the Vehicle Radio Test System (VRTS),
designed to significantly reduce warranty costs associated with in-vehicle
information and entertainment systems. VRTS verifies the quality of the
assembly and installation of these systems by using automated functional
testing as part of the production line process.
    IFRs vehicle test system is capable of testing AM/FM radios, GSM
cellular phones with hands-free capability, navigational and traffic warning
systems, as well as television and loudspeaker circuits. In addition, the
VRTS system can be upgraded to accommodate future developments in vehicle
communications and entertainment systems such as GPS (global positioning
system), DAB (digital audio broadcasting), road tolling, and collision
avoidance systems.
    "The increasing complexity of in-vehicle information and entertainment
systems, coupled with customers high expectations, demand that automotive
manufacturers review their approach to RF and audio testing," said Tony
Rudkin, manager, IFR Solutions Business. "Current manual test processes are
too subjective, relying on the human ear or eye for a decision on the test
outcome, leading to inconsistent and poor fault reporting that results in
poor equipment performance. The focus needs to be on automated testing of RF
and audio signal path connectivity, as they are the areas where experience
suggests that most process-related faults are introduced. However, we also
verify component functionality so that the small percentage of truly faulty
equipment is also captured by the testing."
    
Savings up to $750,000 per year
Attempting to correct post-sale problems usually involves exchanging
equipment under warranty, and typically does not solve the problem. The
average warranty cost associated with a radio equipment problem is around
$2.50 per vehicle, which is significant when multiplied by the number of
cars manufactured each year. Early work with a major European automotive
manufacturer has established that full-scale introduction of IFRs VRTS
system could realize warranty savings of $750,000 per year.
    The VRTS system can be incorporated at any point on the assembly line
where the vehicle is stationary for a period of time, such as during wheel
alignment or headlight tests. The system works as a "background process"
while other assembly functions are being performed, ensuring that the
manufacturing process is not extended.
    VRTS test antennas are mounted in protective enclosures and placed at
carefully controlled points to ensure that the signals received by the
vehicle radio equipment are of a consistent level. Controlled by a personal
computer and mounted in a standard rack enclosure, the freestanding VRTS is
linked to the manufacturers data system, receiving control information and
feeding back test results. The test controller within the vehicle initiates
the test and controls in the in-vehicle equipment, sending commands to the
IFR radio test set via an infrared link or network connection.
    "Dealerships have relatively sophisticated equipment to resolve
mechanical problems, but they have very little to help them diagnose faults
in RF and audio-related items. The increasing use of wireless equipment will
compound their problems. Catching the faults in the assembly process will
not only save costs, but retain customers as well," concluded Tony Rudkin.
Price and Availability.
    The Vehicle Radio Test System is a complete test system that can be
configured to meet the needs of each automotive manufacturer. For more
information on price and availability, contact the nearest IFR sales office
or via email at info@ifrsys.com.

IFR - Advancing Wireless Test
IFR is a leading designer and manufacturer of advanced wireless test
solutions for communications, avionics and general test and measurement
applications. For more information about IFR in the United States, contact:
IFR, 10200 West York Street, Wichita, Kan., 67215-8999. Contact IFR via
e-mail at info@ifrsys.com, on the Web at www.ifrsys.com, or by telephone at
(800) 835-2352 or (316) 522-4981.

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