April 25, 2006

FOR RELEASE:  Immediately

CTS ANNOUNCES STRONG FIRST QUARTER RESULTS
Diluted Earnings Per Share Up 78% Year-Over-Year
CTS Raises EPS Guidance for 2006 - April 25, 2006

Elkhart, IN…CTS Corporation (NYSE: CTS) today announced first quarter 2006 diluted earnings per share of $0.16, up 78% over the same period last year, on sales of $150.5 million, a 3% decrease from the first quarter of 2005.  This was the sixteenth consecutive quarter of year-over-year earnings per share growth.

First quarter sales declined $4.8 million primarily from expected weaker EMS sales into computer markets and declining component sales for mobile handset applications.  Partially offsetting this decline was a 9% increase in automotive component sales, as well as increased sales of electronic components for infrastructure applications.

Net earnings in the first quarter were $6.2 million or $0.16 per diluted share.  This included a charge of $0.04 per share for the previously announced consolidation of the Berne, Indiana operation and associated costs. Excluding the restructuring charge, adjusted diluted earnings per share were $0.20.  First quarter results benefited $0.03 per share due to the favorable settlement of a long-standing insurance claim.  

“Despite expected lower overall sales, CTS demonstrated solid growth in automotive products and component sales for infrastructure applications. We are also very pleased with our strong first quarter earnings, which reflect improved business mix as well as the benefits of continued cost reductions,” commented Donald Schwanz, CTS Chairman and Chief Executive Officer.

Based on the first quarter results and our outlook for the remainder of the year, at this time, we are maintaining our prior full-year 2006 guidance of 6% - 8% in sales growth over 2005 and  increasing our earnings per share guidance.  Full-year adjusted diluted earnings per share are now expected to be in a range of $0.75 to $0.80, excluding $0.08 per share for full-year Berne restructuring and related charges.

Capital expenditures of $2.5 million were 1.6% of sales in the first quarter 2006. The full-year 2006 capital expenditures are expected to be in the range of $18 - $20 million.

SEGMENT INFORMATION
(Dollars in millions)

Components & Sensors: Components and sensors sales increased $3.4 million or 5% over the first quarter of 2005 primarily on the strength of automotive and electronic components.  Partially offsetting this were declines in component sales for handset applications, a business the Company is intentionally exiting, and our divestiture of the Low Temperature Co-fired Ceramic (LTCC) product line. Segment operating earnings increased on higher sales, improved margins from cost reductions, better product mix, higher royalty income and a favorable insurance claim settlement, partially reduced by start-up costs related to our new facility in the Czech Republic, which we expect to be fully operational in early third quarter.

Components and sensors sales increased $5.3 million or 9% from the fourth quarter of 2005 reflecting strong automotive product demand.  Despite the favorable impact of higher sales and the favorable insurance claim settlement in the first quarter, segment operating earnings decreased from the fourth quarter primarily from reduced pension income, Czech Republic start-up costs and less favorable product mix.  In addition, fourth quarter 2005 earnings benefited from gain on sale of assets.

EMS: EMS sales decreased $8.3 million or 9% from the first quarter of 2005 driven primarily by lower sales to Hewlett Packard. The segment operating earnings decrease was primarily due to lower volumes and timing of certain overhead expenses.

Compared to the fourth quarter of 2005, EMS segment sales decreased $9.4 million or 10%. Total segment operating earnings decreased $1.9 million on lower volumes and timing of certain overhead expenses.

Conference Call
As previously announced, the Company has scheduled a conference call on Wednesday, April 26, 2006 at 11:00 a.m. Eastern Daylight Time. Those interested in participating may dial 888-639-6205 (703-925-2608, if calling from outside the U.S.). No access code is needed. There will be a replay of the conference call available from 3:15 p.m. EDT on April 26, 2006, through 11:59 p.m. EDT on May 3, 2006. The telephone number for the replay is 800-475-6701 (320-365-3844, if calling from outside the U.S.). The access code is 825567. There will also be a live audio webcast of the conference call, which can be accessed directly from the Web sites of CTS Corporation (www.ctscorp.com), StreetEvents (www.StreetEvents.com), Netscape (www.netscape.com), Compuserve (www.compuserve.com) and others. AOL subscribers will have access through the Personal Finance section of AOL.

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, communications, medical and industrial markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS.” 
 

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, 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.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
OTHER SUPPLEMENTAL INFORMATION