2001 Annual Report

Financial Highlights

The Leader in Virtual Instrumentation
Throughout our history, NI has delivered long-term value to our shareholders. While 2001 was the most challenging year our company has faced, NI executed well in a very tough environment and emerged stronger than ever before. We believe we gained market share; we effectively managed our expenses; we delivered solid profitability; and we generated record cash flow from operations. We also maintained our focus on our strategic long-term investments, and continue to build on our vision for virtual instrumentation.

This letter contains forward-looking statements as defined under securities laws and such statements are intended to be covered by safe harbors created under the Securities Act of 1993, the Securities Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, the predictions of future financial performance and the release of new products. Actual results could differ materially from those predicted in the forward-looking statements as a result of a number of risks and factors including further deterioration in the global economy, delays in release of new products and changes in foreign tax rates or labor costs. We direct you to the documents we file with the SEC for additional risks including our recently filed annual report on Form 10-K.