1245 “Q” Street
Lincoln, NE 68508
Phone: 402-475-2525
Fax: 402-475-9061

Contact: Patrick E. Beans
Chief Financial Officer
402-475-2525

NATIONAL RESEARCH CORPORATION ANNOUNCES
FIRST QUARTER 2006 RESULTS

Sales Set New Record Under Sales Expansion Plan

LINCOLN, Nebraska (May 2, 2006) — National Research Corporation (NASDAQ/NM:NRCI), a leader in healthcare performance measurement, today announced results for the first quarter ended March 31, 2006.

• Quarterly net new contracts reached $3.8 million

• Quarterly revenues increased by 44%

• Quarterly net income up 63%

• Quarterly earnings per share growth equals 80%

        Commenting on the results, Michael D. Hays, chief executive officer of National Research Corporation, said, “Our first quarter performance was excellent and provides for a very strong start to 2006.”

        Revenues for the quarter ended March 31, 2006, were $9.5 million compared with revenues of $6.6 million for the same period in 2005. Net income for the quarter ended March 31, 2006, was $1.2 million, or $0.18 per basic and diluted share, compared with net income of $748,100, or $0.10 per basic and diluted share, in the prior-year period. Excluding the $0.02 impact per basic and diluted share related to the Company’s adoption of Statement of Financial Accounting Standards (“SFAS”) No. 123R on January 1, 2006, for its share-based compensation plans, earnings per basic and diluted share for the quarter ended March 31, 2006, was $0.20.

        In closing, Patrick E. Beans, chief financial officer of National Research Corporation, added, “The first quarter’s revenue growth, generated across the Company’s various business units, speaks to the viability of the multiple growth runways we have established over the last few years.”

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NRCI Announces First Quarter Results
Page 2
May 2, 2006

        A listen-only simulcast of National Research Corporation’s first quarter 2006 conference call will be available online at www.earnings.com on May 3, 2006, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately an hour later and continue for 30 days.

        National Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider of ongoing survey-based performance measurement, analysis, tracking and improvement services to the healthcare industry in the United States and Canada. The Company addresses the growing need of healthcare providers and payors to measure the care outcomes, specifically satisfaction and health status, of their patients and/or members. The Company develops tools that enable healthcare organizations to obtain performance measurement information necessary to improve their business practices.

        This press release includes “forward-looking” statements related to the Company that can generally be identified as describing the Company’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect the Company’s future results, please see the Company’s filings with the Securities and Exchange Commission.

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NRCI Announces First Quarter Results
Page 3
May 2, 2006

NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)

	Three Months Ended March 31,
	2006			2005
Revenues	$	9,476		$	6,597
Operating expenses:
Direct expenses		4,100			2,750
Selling, general and administrative		3,006			2,185
Depreciation and amortization		470			424
Total operating expenses		7,576			5,359
Operating income		1,900			1,238
Other income (expense):
Interest income		82			109
Interest expense		(10	)		(101	)
Other, net		(14	)		(5	)
Total other income		58			3
Income before income taxes		1,958			1,241
Provision for income taxes		741			493
Net income	$	1,217		$	748
Net income per share, basic	$	0.18		$	0.10
Net income per share, diluted	$	0.18		$	0.10
Weighted average shares outstanding:
Basic		6,819			7,150
Diluted		6,918			7,202

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NRCI Announces First Quarter Results
Page 4
May 2, 2006

NATIONAL RESEARCH CORPORATION
Consolidated Condensed Balance Sheets
(Dollars in thousands)

	March 31, 2006			Dec. 31, 2005
ASSETS	(Unaudited)			(Audited)
Current Assets:
Cash and cash equivalents	$	1,031		$	844
Short-term investments		8,692			9,452
Accounts receivable, net		5,730			5,495
Other current assets		2,417			2,427
Total current assets		17,870			18,218
Net property and equipment		11,860			11,891
Other, net		14,559			14,566
Total Assets	$	44,289		$	44,675
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	1,246		$	2,007
Deferred revenue		5,630			5,434
Accrued compensation		1,230			1,248
Notes payable		200			1,471
Income taxes payable		208			--
Total current liabilities		8,514			10,160
Non-current liabilities		1,925			1,922
Total Liabilities		10,439			12,082
Shareholders' Equity:
Common stock, $0.001 par value; 20,000,000 shares authorized;
issued 7,786,576 in 2006 and 7,740,571 in 2005;
outstanding 6,891,576 in 2006 and 6,845,571 in 2005		8			8
Additional paid-in capital		20,837			20,046
Retained earnings		23,889			23,360
Unearned compensation		(509	)		(433	)
Accumulated other comprehensive income		313			300
Treasury stock		(10,688	)		(10,688	)
Total shareholders' equity		33,850			32,593
Total Liabilities and Shareholders' Equity	$	44,289		$	44,675

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