CTS CORPORATION AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS  - UNAUDITED
(In thousands, except per share amounts)
 
       

     Three Months Ended

  

     Six Months Ended
                June 27,          June 29,     June 27,     June 29,
            2004          2003          2004           2003   
                             
Net sales     $137,624     $116,697     $259,771     $222,466
Costs and expenses:                        
   Cost of goods sold     108,707     92,177     206,245     176,863
   Selling, general and administrative expenses     16,622     14,623     31,499     27,471
   Research and development expenses     4,673     5,390     9,557     11,031
   Gain on sale of assets     (3,006)              -     (3,067)              -
Operating earnings     10,628     4,507     15,537     7,101
                             
Other expenses (income):                        
   Interest expense     1,590     1,899     3,123     3,871
   Other     168     (36)     184     (175)
      Total other expenses     1,758     1,863     3,307     3,696
      Earnings before income taxes     8,870     2,644     12,230     3,405
Income tax expense     1,973     661     2,813     851
                         

Net earnings

     $6,897     $1,983     $9,417     $2,554
                             
Net earnings per share:                        
   Basic     $0.19     $0.06     $0.26     $0.07
   Diluted     $0.19     $0.06     $0.26     $0.07
                             
Cash dividends declared per share     $0.03     $0.03     $0.06     $0.06
                             
Average common shares outstanding:                        
   Basic     35,986     34,227     35,971     34,125
   Diluted     36,253     34,569     36,248     34,415