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An efficient defect-oriented parametric test method for analog & mixed-signal integrated circuits based on neural network classification of a selected circuit's parameter using wavelet decomposition preprocessing is proposed in this paper. The neural network has been used for detecting catastrophic defects in two experimental analog & mixed-signal CMOS circuits by sensing the abnormalities in selected parameters, observed under defective conditions and by their consequent classification into a proper category. To reduce complexity of the neural network, wavelet decomposition is used to perform preprocessing of the analyzed parameter. Moreover, we show that wavelet analysis brings significant enhancement in the correct classification, and makes the neural network-based test method extremely efficient & versatile for detecting hard-detectable catastrophic defects in analog & mixed-signal circuits.