Tektronix Announces Strong First Quarter, Fiscal 2001 Earnings
Test, Measurement and Monitoring Company Reports 22% Sales Growth

Tektronix, Inc. today reported net income of $27.4 million, or $0.56 per share, for the first quarter of fiscal year 2001. This compares with $12.9 million, or $0.28 per share, for the measurement segment in the same period a year ago.

For the quarter, net sales were $278.2 million compared with $228.0 million for the same period last year for the measurement segment. The company also reported growth of 26 percent in orders over the measurement segment in the same period last year.

"We are pleased with this quarter's results, which reflect a continuation of robust orders, sales and gross margins," said Rick Wills, Tektronix president and CEO. "Over the past year, we set forth a new strategy for Tektronix, which focuses on high-growth target zone segments -- telecommunications networks and computer/Internet-related technologies, and the underlying semiconductor industry. Today's results, and those of prior quarters, reflect the success of this strategy, combined with excellent operational execution.

"We are seeing strong demand for new products. The CSA 8000 signal analysis oscilloscope began shipping this quarter as well as the TDS7000 Windows-based digital phosphor oscilloscopes announced in June," said Wills. "We are also seeing market acceptance of our new communications products, the OTS9010 portable optical test set and the Q8326 optical wavelength meter, introduced this quarter."

Quarter Highlights

During the first quarter of fiscal 2001, the company announced the following:

-- Siemens' Information and Communication Mobile, a division of Siemens AG covering the entire mobile communications business, has selected Tektronix as a partner to develop a customized Core Network (CN) test and simulation solution for UMTS (Universal Mobile Telecommunication Systems)-based third-generation (3G) networks. Siemens will use Tektronix' K1297 protocol tester to verify the correct operation of components, enabling faster system integration with UMTS networks.

-- The new TDS7000 series of Windows®-based digital phosphor oscilloscopes (DPOs) was launched. The TDS7000 series leads the industry in addressing the critical measurement needs of engineers who design next-generation global communications and Internet products. Two out of the three scopes in the series also began shipping within the quarter, with the third on schedule to begin shipping later this year.

-- The company introduced the new OTS9010 Optical Test System, a portable version of Tektronix' OTS9000 Optical Test System. The OTS9010 provides installation contractors and network operators with the portable test functionality needed to enable field maintenance and testing of new high-speed, 10 gigabits per second (Gb/s) optical networks, while decreasing test time, manufacturing and installation deployment costs and time-to-market by providing multi-channel support in a single system.

-- Tektronix was the first company to announce test support for the new stringent International Telecommunications Union (ITU) STM64 standard for eye-pattern testing. This standard helps to ensure that ultra-high-speed communications equipment and networks can function together as the Internet's backbone. By supporting this new standard, Tektronix' solutions enable telecommunications equipment manufacturers to test to the new ITU STM64 benchmark for equipment operating in the 10 gigabits per second (Gb/s) range -- the fastest network speeds being widely deployed today.

-- VideoPropulsion, Inc. a premier supplier of high performance, low cost MPEG transport stream hardware and software solutions, has selected Tektronix MTM300 MPEG Multistream Transport Monitor to monitor high bit-rate MPEG-2 transport streams, which will be used for video-on-demand applications.

Forward-Looking Statements

Statements and information in this press release that relate to future results are based on the company's current expectations. They constitute forward-looking statements subject to a number of risk factors which could cause actual results to differ materially from those currently expected or desired. Those factors include: worldwide economic and business conditions in the electronics industry; competitive factors, including pricing pressures, technological developments and new products offered by competitors; changes in product and sales mix, and the related effects on gross margins; the Company's ability to deliver a timely flow of competitive new products, and market acceptance of these products; the availability of parts and supplies from third-party suppliers on a timely basis and at reasonable prices; inventory risks due to changes in market demand or the Company's business strategies; changes in effective tax rates; currency fluctuations, the ability to ramp up production or to develop effective sales channels; and the ability to reduce expenditures. Further information on factors that could cause actual results to differ from those anticipated is included in filings made by the company from time to time with the Securities and Exchange Commission, including but not limited to, the Form 10-K for the year ended May 27, 2000.

About Tektronix

Tektronix, Inc., is a test, measurement, and monitoring company providing measurement solutions to global telecommunications, computer and semiconductor industries. With over 50 years of experience, Tektronix enables its customers to design, build, deploy and manage next-generation global communications networks and Internet technologies. Headquartered in Beaverton, Oregon, Tektronix has operations in 25 countries worldwide.

CONTACT: media, Heather Wyse, 503-627-1121, or analysts, Colin Slade, 503-627-3749, or Sue Kirby, 503-627-6106, all of Tektronix Inc.

The business and geographic product orders, net sales, and operating income breakdown is as follows:

                                  Quarter Ended
                              Aug. 26,       Aug. 28,
  (In thousands)                2000           1999

  Product Orders:             $306,900       $282,700

  Measurement Business         306,900        243,700

    U.S.                       161,300        126,600
    International              145,600        117,100

  Video and Networking              --         39,000

    U.S.                            --         21,200
    International                   --         17,800

  Net Sales:                  $278,191       $280,747

  Measurement Business         278,191        228,034

    U.S.                       141,166        118,783
    International              137,025        109,251

  Video and Networking              --         52,713

    U.S.                            --         28,428
    International                   --         24,285

  Operating Income (loss):     $36,819      $(12,209)

  Measurement Business          37,134         22,339
  Video and Networking               -        (8,303)
  Other                          (315)       (26,245)

                  Consolidated Statements of Operations

                                                      Quarter Ended
                                                  Aug. 26,       Aug. 28,
  (In thousands,  except per share amounts)         2000           1999

  Net sales                                       $278,191       $280,747

  Cost of sales                                    133,229        156,455

    Gross profit                                   144,962        124,292

  Research and development expenses                 33,813         38,207

  Selling, general and administrative expenses      73,883         71,876

  Equity in business ventures' loss                    132            318

  Non-recurring charges                                315             --

  Loss on sale of the Video and Networking Division     --         26,100

    Operating income (loss)                         36,819       (12,209)

  Other income (loss) - net                          5,382        (3,614)

    Income (loss) before taxes                      42,201       (15,823)

  Income taxes                                      14,770        (4,906)

    Income (loss) from continuing operations        27,431       (10,917)

  Discontinued Operations:
    Income from operations of Color Printing
     and Imaging (less applicable tax of $1,094)        --          2,435

  Net income (loss)                                $27,431       $(8,482)

  Earnings (loss) per share - basic                  $0.58        $(0.18)
  Earnings (loss) per share - diluted                $0.56        $(0.18)

  Earnings (loss) per share from continuing
   operations -- basic                               $0.58        $(0.23)
  Earnings (loss) per share from continuing
   operations -- diluted                             $0.56        $(0.23)

  Earnings per share from discontinued
   operations -- basic                                 $--          $0.05
  Earnings per share from discontinued
   operations -- diluted                               $--          $0.05

  Dividends per share                                  $--          $0.12

  Average shares outstanding -- basic               47,689         46,991
  Average shares outstanding -- diluted             48,739         46,991
  Capital expenditures                              $8,482         $9,064
  Depreciation expense                              $9,953        $12,423
  Dividends                                            $--         $5,631

                       Consolidated Balance Sheets

  (In thousands)                                  Aug. 26,        May 27,
                                                    2000           2000
   Current assets:
    Cash and cash equivalents                     $539,471       $683,808
    Short-term investments                         203,438         99,897
    Trade accounts receivable -- net               164,028        162,768
    Inventories -- net                             123,088        114,001
    Other current assets                            44,780         51,583
      Total current assets                       1,074,805      1,112,057

   Property, plant and equipment -- net            180,374        188,544
   Deferred tax assets                              20,937         30,928
   Other long-term assets                          225,580        203,108
   Total assets                                 $1,501,696     $1,534,637

   Current liabilities:
    Accounts payable and accrued liabilities      $216,820       $221,767
    Accrued compensation                            59,817         95,623
    Deferred revenue                                11,341         12,329
    Short-term debt                                    564            505
      Total current liabilities                    288,542        330,224

   Long-term debt                                  150,337        150,369
   Other long-term liabilities                      77,738         76,450

  Shareholders' equity:
   Common stock                                    210,646        198,868
   Retained earnings                               736,966        753,796
   Accumulated other comprehensive income           37,467         24,930
    Total shareholders' equity                     985,079        977,594
    Total liabilities and
     shareholders' equity                       $1,501,696     $1,534,637

   Shares outstanding                               47,276         47,542
   Employees                                         4,167          4,276

  Consolidated Statement of Operations -- Detail Breakdown
  Quarter Ended Aug. 28, 1999

                                                       Video and
                             Color Printer            Networking
                                Division                  and
                     Tektronix            Continuing     Other  Measurement
                    Consolidated          Operations   Segments    Segment

  Net sales           $280,747             $280,747     $52,713   $228,034

  Cost of sales        156,455              156,455      38,393    118,062

  Gross profit         124,292              124,292      14,320    109,972

  Research and
   expenses             38,207               38,207      10,893     27,314

  Selling, general
   and administrative
   expenses             71,876               71,876      11,875     60,001

  Equity in business
   ventures' loss          318                  318          --        318

  Loss on sale of
   the Video and
   Networking Division  26,100               26,100      26,100         --

    Operating income
     (loss)           (12,209)             (12,209)    (34,548)     22,339

  Other (loss) -- net  (3,614)              (3,614)         (4)    (3,610)

    Income (loss)
    before taxes      (15,823)             (15,823)    (34,552)     18,729

  Income taxes         (4,906)              (4,906)    (10,712)      5,806

    Income (loss)
    from continuing
    operations        (10,917)             (10,917)    (23,840)     12,923

   (net of tax)          2,435    2,435          --          --         --

  Net income
   (loss)             $(8,482)   $2,435   $(10,917)   $(23,840)    $12,923

  Earnings (loss)
   per share
   -- diluted          $(0.18)              $(0.23)                  $0.28

  Average shares
   -- diluted           46,991               46,991                 46,991

SOURCE: Tektronix Inc.

Contact: media, Heather Wyse, 503-627-1121, or analysts, Colin Slade,
503-627-3749, or Sue Kirby, 503-627-6106, all of Tektronix Inc.

Company News On-Call: http://www.prnewswire.com/comp/836675.html or fax,
800-758-5804, ext. 836675

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