April 27, 2010

FOR RELEASE:  Immediately

CTS ANNOUNCES FIRST QUARTER 2010 RESULTS

 Reports Improved Revenues, Profits and Cash Flow Year-Over-Year
Increases Guidance for 2010

Elkhart, IN…CTS Corporation (NYSE: CTS) today announced first quarter 2010 revenues of $129.4 million, an increase of 10% from revenues of $118.1 million in the same period last year. Net earnings were $4.4 million, or $0.13 per diluted share, in the first quarter 2010 compared to a net loss of $35.6 million, or $1.06 per share, in the first quarter of 2009. Excluding charges for restructuring and non-cash goodwill impairment, net loss in the first quarter of 2009 was $1.1 million, or $0.03 per share. Higher sales, improved gross margins and favorable segment mix contributed to the increase in first quarter earnings compared to the same period last year.

Components and Sensors segment sales increased 74% from the same period last year, reflecting strong growth in global light vehicle production, particularly in North America, and higher market share. First quarter 2010 sales of sensor and actuator products more than doubled from the same period last year, with increases across all product lines. Sales of electronic component products increased 37% year-over-year signaling a rebound in the economic activity. As a result, Components and Sensors segment sales, as a percent of total company sales, increased to 57% from 36% in the first quarter of 2009.

EMS segment sales decreased 26% from the same period last year with mixed results by market. Sales in defense and aerospace and medical markets declined due to launch delays in certain programs and sales in the computer market declined resulting from previously announced planned end-of-life sales reductions. However, sales in the communications market increased 21% quarter-over-quarter, while sales in the industrial market were flat.

Cash flow generated from operations was $5.3 million in the first quarter of 2010 compared to a $4.0 million cash usage in the same period last year.

Commenting on first quarter results, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer, stated, “We have started the year on a positive note, achieving strong earnings and cash flow. CTS’ cost management actions, combined with record business wins last year, have positioned the Company to better serve its customers and enhance shareholder value.”

Based on the first quarter results and current outlook, assuming no new significant economic weakness, management anticipates full-year 2010 sales to increase 12%-20% over 2009, compared to the previous guidance of 10%-15% increase year-over-year. Full-year 2010 diluted earnings per share are now estimated in the range of $0.52 to $0.60 compared to the previous range of $0.45 to $0.53.

SEGMENT INFORMATION

(Dollars in millions)                                                                                      

Components & Sensors: Components and Sensors first quarter 2010 sales increased $31.1 million, or 74%,  from the first quarter of 2009.  The sales improvement resulted from higher automotive sensor and actuator product and electronic component product demand, across essentially all product lines. Segment operating earnings of $9.0 million were $12.4 million favorable to the first quarter of 2009 due to higher volumes and improved margins.

Components and Sensors sales increased $8.0 million, or 12%, from the fourth quarter of 2009 reflecting increased demand in both electronic component and automotive sensor and actuator products. Segment operating earnings increased $1.5 million primarily on higher sales.

EMS: EMS sales decreased $19.9 million, or 26%, from the first quarter of 2009 reflecting lower sales primarily in the defense and aerospace, medical and computer markets, partially offset by increased sales in the communications market. Segment operating loss of $2.7 million compares to operating earnings of $3.3 million in the first quarter of 2009, resulting primarily from lower sales. 

EMS sales decreased $12.5 million, or 18%, from the fourth quarter 2009, primarily from decreased demand in the defense and aerospace and medical markets. Sales in the industrial market increased 5%. The segment operating loss of $2.7 million compared to earnings of $0.7 million in the fourth quarter 2009 due to lower sales.

Conference Call
As previously announced, the Company has scheduled a conference call on Wednesday, April 28, 2010 at 11:00 a.m. EDT. Those interested in participating may dial 800-230-1092 (612-234-9960, if calling from outside the U.S.). No access code is needed. There will be a replay of the conference call available from 1:30 p.m. EDT on Wednesday, April 28, 2010, through 11:59 p.m. EDT on Tuesday, May 4, 2010. The telephone number for the replay is 800-475-6701 (320-365-3844, if calling from outside the U.S.). The access code is 153620. 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, communications, medical, defense and aerospace, industrial and computer 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; CTS’ ability to protect its intellectual property; and potential costs and liabilities related to the recent Toyota recall. For more detailed information on the risks and uncertainties associated with CTS’ business, see the reports CTS files with the Securities and Exchange Commission 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.

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