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CTS
CORPORATION Elkhart, Indiana 46514 (574) 293-7511
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May 10, 2005
FOR RELEASE: Immediately
CTS Consolidating New England Area EMS Operations
Elkhart, IN…CTS Corporation (NYSE:CTS), a leading provider of electronics
manufacturing services, announced today that its Electronics Manufacturing
Solutions, (EMS) strategic business unit will consolidate its Marlborough,
Massachusetts operation into the Londonderry, New Hampshire operation. The
Marlborough, Massachusetts operation was acquired January 31, 2005 as part of
the purchase of SMTEK International. Combining the operations of the two leased
facilities, which are only 60 miles apart, is expected to improve asset
utilization and operational productivity while enhancing customer service.
According to Don Schroeder, President of the EMS strategic business unit, “This
combination will enable us to better utilize engineering, program management and
supply chain management to provide more comprehensive and flexible New Product
Introduction (NPI), logistics and manufacturing services to our customers.”
Consolidation costs, net of related savings, are expected to have no material
impact on the results of operations in 2005. Annual savings are expected to be
in the range of $0.02 to $0.03 per share in 2006.
CTS’ EMS business operates in North America, Europe and Asia. CTS EMS offers
core expertise in supporting the needs of customers with products and services
that include highly-complex, high-reliability surface mount assemblies and fully
integrated boxbuild systems.
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About CTS
CTS is a leading designer and manufacturer of electronic components and sensors
and a provider of electronics manufacturing services (EMS) to OEMs in the
automotive, computer and communications markets. CTS manufactures products in
North America, Europe and Asia. CTS' stock is traded on the NYSE under the
ticker symbol "CTS." To find out more, visit the CTS Web site at www.ctscorp.com.
Safe Harbor Statement
This press release contains certain statements that are, or may be deemed to be,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, but are
not limited to, statements regarding the business and strategic benefits of the
SMTEK acquisition, any financial or other guidance, and all statements that are
not based on historical fact, but rather reflect our current expectations
concerning future results and events. We make certain assumptions when making
forward-looking statements, any of which could prove inaccurate, including, but
not limited to, statements about our future operating results and business
plans. The ultimate correctness of these forward-looking statements is dependent
upon a number of known and unknown risks and events, and is subject to various
uncertainties and other factors that may cause our actual results, performance,
or achievements to be different from any future results, performance, or
achievements expressed or implied by these statements.
For more detailed information on the risks and uncertainties associated with
CTS' business activities, see our reports filed with the SEC. CTS undertakes no
obligation to publicly update its forward-looking statements, whether as a
result of market or industry changes, new information or future events.
| Contact: | Vinod M. Khilnani, Sr. Vice President and Chief Financial
Officer, or Mitchell J. Walorski, Director of Investor Relations |
| CTS Corporation, 905 West Boulevard North, Elkhart, IN 46514 | |
| Telephone: (574) 293-7511, Fax: (574) 293-6146 | |
| www.ctscorp.com |