November 12, 2007

FOR RELEASE:  Immediately

CTS Announces Realignment of Operations and Workforce Reduction
 

Elkhart, IN…CTS Corporation (NYSE: CTS) today announced plans to realign certain manufacturing operations and eliminate approximately 103 net positions during the fourth quarter 2007.  The realignment is intended to create synergies by further enhancing CTS’ shared services model to include manufacturing support functions at its locations that serve more than one business.  In addition, certain production lines are slated for transfer to better serve key customers and leverage existing capacity.  These actions will result in a pre-tax restructuring charge and related costs of approximately $3.0 to $3.5 million with the majority representing severance-related expense.  

Approximately $2.8 million of the total expected cost is anticipated to be taken in the fourth quarter of 2007, with the remainder to be recorded in the first quarter 2008. Breakeven on the realignment is expected in about one year, with annualized pre-tax savings projected to approximate the cost of the actions.
 

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, defense and aerospace 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 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, statements that reflect our current expectations concerning future results and events, and any other statements that are not based solely on historical fact.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.  These forward-looking statements are made subject to certain risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements, including, without limitation, rapid technological change and general market conditions in the automotive, communications and computer industries; reliance on key customers; CTS’ ability to protect its intellectual property; pricing pressures and demand for CTS’ products; risks associated with CTS’ international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks; and the impact of the accounting misstatements at its Moorpark and Santa Clara, California locations, including the results or the impact of the SEC’s informal inquiry into these misstatements.  For more detailed information on the risks and uncertainties associated with CTS’ business, see the reports CTS files with the SEC.  CTS undertakes no obligation to publicly update its forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes.