February 4, 2008

FOR RELEASE:  Immediately

CTS AWARDED PRODUCTION PROGRAM FOR SMART ACTUATORS
Achieves Strategic Growth Milestone to Expand Its Automotive Products into New Markets
 

Elkhart, IN…CTS Corporation (NYSE: CTS) today announced that CTS Automotive Products was awarded a new production program for a smart actuator by a global diesel engine manufacturer. The smart actuator is used as a key part of a turbocharger system. This initial application will be used on diesel engines for light duty diesel trucks sold in the North American market with production beginning late 2009. Total revenues over the life of this six-year program are expected to be approximately $75 million.  

The market for smart actuator technology in commercial and passenger vehicles is growing rapidly and is estimated to exceed $1 billion by 2010.  This market growth is driven primarily by more demanding emission regulations that necessitate tighter engine controls and improved fuel economy.  Many OEMs and engine manufacturers are choosing to meet these new requirements through the use of advanced turbochargers and/or higher performance Exhaust Gas Recirculation systems. These advanced products benefit from the advantages offered by CTS’ new smart actuators, a critical component used to position control valves and vary turbocharger geometry.

The awarded program is the first of a family of brushless motor-based, smart actuators that CTS has developed in response to this growing market opportunity. As one of the leading global producers of sensors and actuators, CTS offers extensive experience with actuating and measuring the position of engine valves for high temperature applications, supported by worldwide engineering and production capabilities. The smart actuator product family expands this expertise with embedded control logic and integrated switching of electrical power.  The family of products covers the range of packaging, torque and cost parameters expected to be needed in the commercial and passenger vehicle markets.

Commenting on the new award, Vinod M. Khilnani, CTS President and Chief Executive Officer said, “This program win is a significant strategic milestone for our sensor and actuator business by providing two distinct benefits.  First, it demonstrates our ability to leverage capabilities from traditional light passenger vehicle applications and small engine applications into heavier duty diesel vehicle markets.  Secondly, it represents a new growth engine for CTS by opening up commercial markets for our products and technology.”

For more information on CTS’ actuators, please contact Don Slutz, Actuator Product Manager at (574) 389-2872.
 

About CTS Automotive Products
CTS Automotive Products is a global leader in the design, test and manufacture of automotive sensors, accelerator pedal modules, actuators and subsystems. Recognized for its customer responsiveness and expertise in high-volume automotive packaging, CTS Automotive Products is focused on delivering value-added products and services to its expanding worldwide customer base. The Company manufactures automotive and related products in Elkhart, Indiana; Toronto, Canada; Glasgow, Scotland; Ostrava, Czech Republic; Matamoros, Mexico; Kaohsiung, Taiwan; and Zhongshan, China. 

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, potential changes in the economy generally and in respect to the businesses in which CTS operates; rapid technological change 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; and risks associated with CTS’ international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks.  For more detailed information on the risks and uncertainties associated with CTS’ business, see the reports CTS files with the SEC, available at http://www.ctscorp.com/investor_relations/investor.htm.  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.