BEAVERTON, Ore. -- Tektronix, Inc. (NYSE: TEK - News) today reported net sales of $266.8 million and a net loss from continuing operations of $2.6 million or $0.03 per share for the second quarter ended November 27, 2004. This compares with net sales of $217.9 million and net earnings from continuing operations of $36.5 million or $0.42 per share for the same period last year. Excluding acquisition-related costs, business realignment and one-time items, net earnings from continuing operations were $34.4 million or $0.39 per share for the second quarter ended November 27, 2004, as compared with $19.3 million or $0.22 per share for the same period last year. Included in acquisition-related costs for the second quarter ended November 27, 2004 are non-cash expenses related to the acquisition of Inet Technologies, Inc., including the write-off of in-process research and development, amortization of acquisition-related items and other acquisition-related expenses. Included in acquisition-related credits for the same period last year is a non-cash gain resulting from the settlement of the historical defined benefit pension plan at our subsidiary in Japan.

"We are pleased with our performance this quarter. We saw solid order growth across most of our product lines and sales growth of over 20%. We were especially pleased with the performance of our general purpose products and the contribution from the acquisition of Inet Technologies," said Rick Wills, Tektronix Chairman and CEO. "Regionally, our order growth continued to be strongest in Asia/Pacific and Japan."

"We are now well into the integration of Inet Technologies, which we acquired on September 30 of this year," continued Wills. "The acquisition was a significant strategic step and will allow us to expand our addressable market."

"In addition, during the quarter we continued to grow our core business with the introduction of the TPS2000 digital storage oscilloscope with an industrial power application -- marking our entrance into the industrial power market. And, we continued our investment in our adjacent product categories with the introduction of the RSA3408A, a dramatic advancement in real-time spectrum analysis, just after the close of the quarter."

For the third quarter of fiscal 2005, including Inet, the company expects net sales to be $250 - $260 million and earnings per share from continuing operations of $.26 to $.30, excluding one-time items and acquisition-related costs.

"In conclusion, we have had a great first half of the year with the acquisition of Inet and the resulting integration that is well underway; a very strong product flow that we expect to pick up even more over the coming quarters; strong sales growth and solid business results," concluded Wills.

In addition, today Tektronix declared a quarterly cash dividend of $0.06 per share on the outstanding common shares of the Company, payable on January 24, 2005 to shareholders of record as of the close of market on January 7, 2005.

Tektronix Inc.