Some consequences of a modified repair system for Phillips' (1981a, b) model for a two-component system are discussed. In the original model, both components are repaired whenever a revealed fault occurs; in the modified model only faulty components are repaired. Specifically (i) the distribution of time from the initial state up to discovery of an unrevealed fault, (ii) the expected proportion of time during which there exists an unrepaired fault, and (iii) the distribution of number of revealed faults up to and including the one which leads to a discovery of an unrevealed fault, are obtained. The theory is illustrated by examples, based on specific distributions for the times between repairs and occurrences of the two types of faults. A characterization of the exponential distribution is indicated.