CTS CORPORATION AND SUBSIDIARIES
OTHER SUPPLEMENTAL INFORMATION


The following table summarizes free cash flow for the Company:
 

          Three Months Ended     Six Months Ended  
          June 27,   June 29,   June 27,   June 29,  
          2004   2003   2004   2003  
   

(In thousands of dollars)

 
                   
Net cash provided by (used in) operations   $11,448   $(1,310)   $4,708   $6,889  
Net cash provided by (used in) investing activities   2,934   (2,306)   12,823   (634)  
Free cash flow   $14,382   $(3,616)   $17,531   $6,255  
                   
Management believes that free cash flow provides useful information to investors regarding the Company's
ability to generate cash from business operations that is available for internal growth, service of debt
principal, dividends, share repurchases and acquisitions and other investments. Management uses free
cash flow as one measure to monitor and evaluate the performance of the Company.