National Instruments

2

Safe Harbor Warning

During the course of this presentation, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. We refer you to the documents the company files regularly with the Securities and Exchange Commission, specifically the company's most recent Form 10-K and 10Q. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

3

Profile

• Leaders in Computer-Based Measurement and Automation

• Long-term Track Record of Growth and Profitability

• $740M Revenue in 2007

• $205 M Revenue in Q4 2007

• More than 4,600 employees; operations in 40+ countries

• Fortune’s 100 Best Companies to Work For Ninth Consecutive Year

$0

$100

$200

$300

$400

$500

$600

$700

$800

'77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07

Net R

evenu

e in M

illion

s

Record Revenue of $740 Million in 2007

4

What We Do

Low-Cost Modular

Measurement and

Control Hardware

Productive Software

Development Tools

Highly Integrated

Systems Platforms

Used By Engineers and Scientists for Test, Design and Control

5

Empowering Users Through Software

LEGO Mindstorms NXT

“the smartest, coolest toy

of the year”

CERN Large Hadron Collider

“the most powerful instrument

on earth”

6

Leveraging Commercial Technology

7

NI’s Increased Value to CustomersControl Traditional

InstrumentsComplete

System SolutionsSimple PC-Based

Measurements

PC Data Acquisition

Typical Order Size

Compact FieldPoint System Platform

LabVIEW Real-Time

PXI System Platform

GPIB Instrument Control

LabVIEWSoftware

1980s 1990s 2000s

< $2 K

$1 K - $15 K

$10 K-$100 K+

CompactRIO IndustrialSystem Platform

8

Financial Update: Growth in Strategic Product RevenuesSuccess with Virtual Instrumentation and Graphical System Design

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

Qu

art

erl

y R

even

ue

Instrument Control

Virtual Instrumentation and Graphical System Design

10 Year CAGR = 1.2%

10 Year CAGR = 15.5%

9

MP3 player

PC/WWW/E-mail

Cellular Phone

Digital Camera

Gaming

High resolution display

iPhone

PDA

Today’s Designs: Converging Complexity

10

Today’s Challenges: The Traditional Approach

Oscilloscope

Logic Analyzer

Spectrum Analyzer

DMM

Communications Analyzer

LCR Meter

Function

Generator

Power Supply

Pattern Generator

Programmable Switch

11

• Lower cost

• Higher performance

• Smaller size

• Flexible

• Easily upgraded

• User-defined

• Lower cost

• Higher performance

• Smaller size

• Flexible

• Lower cost

• Higher performance

• Smaller size

NI’s Value Proposition

12

Our Expanding Opportunity

Design & Test

13

Test and Measurement – a $12 Billion Market

• Manufacturing

focused, Semiconductor

and board test

• Low volume, high dollar

systems sales (cyclic)

NI is an OEM supplier

Semiconductor ATE

$3.9B

• Products used in

electronic design and test

•Measurement needs

increasingly met by

commercial technologies

Growing market share

in automated test

General Purpose Test

$3.8B

• Communications

equipment design and

test

•Trend to software-based

systems and increasing

complexity

Large NI growth

potential

Communications Test

$4.2B

Source: Frost and Sullivan, 2006

14

Trend Toward Software-Based Systems

Frost and Sullivan 2006 World Synthetic Instrumentation Test Equipment Report

“Software is the core of a [Synthetic Instrumentation] test system…, it is the

task of the software to define and control the hardware…”

15

Our Expanding Opportunity

Embedded Design &

Control

16

The Traditional Embedded & Industrial

Control Landscape

Embedded SBC

• Embedded

computers

• PC architectures

• Many form factors

Custom Design

• Totally flexible

• Exact fit

• Control of COGs

PLC

• Highly reliable

• Standard control

• Ladder logic

• Industrial networks

17

Development Platform for the Next 30 Years

Graphical System DesignDesign Prototype Deploy

18

Graphical System Design Examples

Machine ControlPackaging/Processing High-speed motion

control, batch control, discrete control

Heavy Machinery Control Real-time signal processing and

control of power electronics, hydraulic systems

Semiconductor/Biomed Custom motion and vision

inspection, material handling

Machine Monitoring

• Machine Condition Monitoring– Bearing order analysis, lubrication

monitoring, cooling, combustion, …

• Mobile/portable DSA, NVH– Noise, vibration, harshness, dynamic

signal analysis, acoustics

• Distributed Acquisition– Central controller with distributed I/O

nodes over Ethernet/wireless

In-Vehicle Data Acquisition• In-Vehicle Data Acquisition

– Automobiles, motorcycles, recreational vehicles, research aircraft, trains

• Engine and ECU test cells– HIL testing of engines and engine

controllers, sensor simulation using FPGA

• Rapid Control Prototyping– Automotive/aerospace control

prototyping

19

Diversity of Applications

ElectronicsSemiconductors Computers

No Industry > 10% of Revenue

Advanced

ResearchPetrochemical

Food

ProcessingTextiles

AutomotiveTelecom

ATE Military/Aerospace

20

Virtual Instrumentation EverywhereMore than 25,000 companies

>90% of Fortune 500 manufacturing companies

21

Direct Sales Advantage

Catalog Sales

Technical Phone

Sales

Direct Field

Sales

Business

Development

Val

ue o

f Sal

e

22

NI’s Strategy to Drive Revenue Growth

• New market opportunities Driven by R&D

• Expanding market share Global industrial economy

Increased penetration in emerging markets

• Acquisitions to play a limited role

23

Strong Track Record of Growth and ProfitabilityN

et Reven

ue in

Millio

ns

2007 Revenue $740 Million

$0

$100

$200

$300

$400

$500

$600

$700

$800

'77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07

24

Sequential Sales By Quarter ($MMs)

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

Q1 02

Q2 02

Q3 02

Q4 02

Q1 03

Q2 03

Q3 03

Q4 03

Q1 04

Q2 04

Q3 04

Q4 04

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

JP Morgan’s Global PMI vs. NI Growth

40%

42%

44%

46%

48%

50%

52%

54%

56%

58%

60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Q1

-1

99

7

Q3

-1

99

7

Q1

-1

99

8

Q3

-1

99

8

Q1

-1

99

9

Q3

-1

99

9

Q1

-2

00

0

Q3

-2

00

0

Q1

-2

00

1

Q3

-2

00

1

Q1

-2

00

2

Q3

-2

00

2

Q1

-2

00

3

Q3

-2

00

3

Q1

-2

00

4

Q3

-2

00

4

Q1

-2

00

5

Q3

-20

05

Q1

-20

06

Q3

-20

06

Q1

-20

07

Q3

20

07

Glo

ba

l P

MI

YO

Y

Gro

wth

GPIB/VXI Growth All Other Products Growth Global PMI

26

R&D Headcount

0

200

400

600

800

1000

1200

1400

1999 2000 2001 2002 2003 2004 2005 2006 2007

27

Non-GAAP Gross Margin

76% 76% 76% 75% 77% 76% 77% 76% 74% 73% 74% 74% 74% 75% 76%

0%

20%

40%

60%

80%

100%

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

28

Non-GAAP Operating Income and R&D as % of Revenue

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Target Op Inc Non-GAAP Op Inc R&D as % of Rev

29

Non-GAAP Net Income

$0

$20

$40

$60

$80

$100

$120

$140

2003 2004 2005 2006 2007

* For a reconciliation of GAAP to Non-GAAP Net Income, please visit www.ni.com/nati

30

Financial Plan for 2008-2010

• Our goal is 18% non-GAAP operating margin

• Do not plan to exceed 18% in 2008-2010 on an annual basis

• Any incremental leverage in 2008-2010 will be allocated to

sales resources to leverage R&D investment with the goal of

accelerating growth relative to the industry

31

Why focus incremental leverage in sales?

• Large orders driving growth

• Technical sales resources drive large orders

System Engineers drive growth with proof of concepts

BDM’s drive growth with application knowledge

DSM’s drive growth, by evangelizing NI Software and

identifying opportunities

National Instruments