December 2, 2009

FOR RELEASE:  Immediately

CTS Awarded Production Program for Smart Actuators 

Further Expands Automotive Products into Commercial Markets and Asia

Annual Sales from Recent Strategic Commercial Initiatives are
Projected around $35 Million by 2014
 

Elkhart, IN…CTS Corporation (NYSE: CTS) today announced that CTS Automotive Products was awarded a new production program for a smart actuator.  The actuator will be provided to a global diesel engine manufacturer as a key part of a turbocharger system for light utility vehicles primarily for the Asian markets.  Production is anticipated to begin in late 2012 with total revenues over the six-year program life to be approximately $40 million, initially starting at $3 million and ramping to $10 million annually by 2015.

The market for smart actuator technology in commercial and passenger vehicles is growing and is estimated to reach approximately $1 billion within the next few years.  With a significant segment of this market in Asia, this win is expected to provide an excellent platform for other customer opportunities in the region.  The awarded program is part of the family of brushless, motor-based, smart actuators that CTS has developed in response to growing market opportunities. The CTS smart actuator is being recognized globally for its precision control and durability in extreme engine environments, while also helping customers meet rigorous emissions and fuel economy standards.

CTS’ commercial markets strategy initiative resulted in its first smart actuator win for light-duty commercial markets in early 2008. More recently, CTS has won two more large programs, serving other sizes of diesel engines for commercial on-highway applications. Earlier this year, CTS also won smart actuator business for stationary industrial diesel engine applications from a manufacturer of heavy equipment, adding approximately $1.0 million of revenues annually. Total expected annual revenues from all commercial market initiative wins, so far, are expected to generate approximately $15 million of new revenue in 2012, ramping to $35 million annually starting in 2014.

Commenting on the new award, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer said, “The success of this initiative is the result of our renewed focus on research and development activities in the last few years, with additional developmental expense of approximately $3 million per year to launch and further grow commercial sensor and actuator business.  CTS’ smart actuator wins, with two of the world’s largest diesel engine manufacturers, represent success in expanding CTS’ Automotive Products from traditional light passenger vehicle applications and small engine applications into heavier duty diesel markets.”

For more information on CTS’ actuators, please contact Eric Andrina, Actuator Product Manager, at (574) 389-2815.
 

Conference Call
A conference call to discuss the commercial business is scheduled for Thursday, December 3, 2009 at 3:00 p.m. (EST).  The dial-in number for the conference call is 800-230-1766 (612-288-0340, if calling from outside the U.S.).  No access code is needed.  The CTS Corporation conference call participants will be:

Prior to the call, related presentation slides will be posted to the “Investor Relations” section of the Company’s Web site at www.ctscorp.com, within the Presentations & Conference Calls tab.

There will be a replay of the conference call from 5:00 p.m. (EST) on Thursday, December 3, 2009 through 11:59 a.m. (EST) on Thursday, December 10, 2009.  The telephone number for the replay is 800-475-6701 (320-365-3844, if calling from outside the U.S.).  The access code is 126067.

Also, please note that a live audio webcast of the conference call will be available.  This can be accessed directly from the Web sites of CTS Corporation (http://www.ctscorp.com), StreetEvents (http://www.streetevents.com), Netscape (http://www.netscape.com), Compuserve (www.compuserve.com) and others.  AOL subscribers will have access through the Personal Finance section of AOL.

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 and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. 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: changes in the economy generally and in respect to the businesses in which CTS operates, including those resulting from the current global financial and credit crisis; pricing pressures and reduction in demand for CTS’ products, especially if economic conditions do not recover or continue to worsen in CTS’ served markets, including but not limited to: the automotive, computer equipment or communications markets; disruption, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged by CTS and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability or ongoing viability; risks associated with CTS’ international operations, including trade and tariff barriers; currency fluctuations and their effects on our results of operations and financial position; changes in performance of equity and debt markets that could affect the valuation of the assets in CTS’ pension plans and the accounting for pension assets, liabilities and expenses; political and geopolitical risks; rapid technological change in the automotive, communications and computer industries; reliance on key customers; and CTS’ ability to protect its intellectual property. 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.