National Instruments Reports Double-Digit Growth in Revenue and Earnings

AUSTIN, Texas -- April 12, 2001 -- National Instruments (NASDAQ: NATI) today announced revenue of $108.1 million for the first quarter of 2001. This represents 15 percent revenue growth in U.S. dollar terms over the same period last year and 21 percent in local currency terms; both are in line with preliminary results released April 2, 2001.

"Our continued strong growth in this current economic climate demonstrates the value we offer our customers," said James Truchard, NI President and CEO. "I am very excited about the initiatives we have under way right now in R&D, both in incremental new product development and in major initiatives that represent breakthrough innovation for NI and the industry."

In the first quarter of this year, the geographic breakdown of revenue growth in U.S. dollars as compared to first quarter 2000 was as follows: Americas, 16 percent revenue growth; Europe, 6 percent revenue growth; and Asia, 30 percent revenue growth. In local currency terms, revenue was up 16 percent in the Americas, 24 percent in Europe, and 31 percent in Asia.

Excluding a foreign exchange loss for the quarter of $1.4 million, diluted earnings per share for first quarter 2001 was $0.28. Including this foreign exchange loss, diluted earnings per share for first quarter 2001 was $0.26.

"Because half of our business is done overseas, the renewed strength of the U.S. dollar had a negative effect on our results, reducing our revenues by $4.0 million sequentially," said Alex Davern, CFO of NI. "However, we are pleased with how we managed the business during this tough quarter. With a 15 percent increase in U.S. dollar revenues and a 14 percent increase in expenses, we matched our long-term model and delivered an 18.4 percent operating margin."

Currently, NI expects revenue growth in U.S. dollars for the second and third quarters of 2001 to be in the range of 7 to 15 percent over the same periods in 2000, increasing to a range of 12 to 20 percent growth in the fourth quarter. Depending on the U.S. economy, NI anticipates revenue for the year will be in the range of $450 million to $475 million, and diluted earnings per share to be in the range of $1.06 to $1.22. If the economy rebounds in the second half of 2001, NI expects to be in the upper end of the range; if not, the Company expects to be in the lower end.

Interested parties can listen to a conference call today, April 12, 2001, beginning at 4 p.m. CDT, on ni.com/call. Replay information will be available on the Web or by calling (719) 457-0820, confirmation code #58748, from 7 p.m. CDT April 12, 2001, through April 19.

This release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, which are intended to be covered by the safe harbors created therein and the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained within this release including, among other things, the predictions of future financial performance are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: further deterioration in the global economy, delays in release of new products, and foreign exchange fluctuations. The Company directs you to documents filed with the SEC for risks associated with the Company's future performance including its Yearly Report on Form 10-K/A filed on March 13, 2001.

About NI
NI leverages commercial technologies, such as industry-standard computers and the Internet, to deliver customer-defined measurement and automation solutions. Headquartered in Austin, Texas, NI has more than 2,600 employees and direct sales offices in more than 35 countries. NI is increasing the productivity of engineers and scientists worldwide by delivering easy-to-integrate software and modular hardware. In fiscal year 2000, NI recorded its 24th consecutive year of double-digit growth with net revenue totaling $410 million. For the past two consecutive years, FORTUNE magazine has named NI one of the 100 best companies to work for in America.

NI investment information may be obtained from the Company’s Investor Relations Department at (512) 683-5090, by sending e-mail to nati@ni.com, or on the Web at ni.com/nati

The condensed consolidated statement of income and balance sheets to follow.

National Instruments
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