Date: 29/01/2009

CTS revenues for 4th quarter 08 were $162.8 million with 18% decrease in components sales

CTS Corporation sales revenue in the fourth quarter were $162.8 million, a 9% decrease from the same period last year. The global economic slowdown is affecting many of CTS’ customers, especially in the automotive and electronic components industries. CTS believes that its diversified business model allowed it to soften the impact on its total sales despite an 18% decrease in its Components and Sensors segment, which was driven by lower automotive sensor and actuator product sales. Electronic Manufactoring Services (EMS) segment sales were down 2% in the fourth quarter year-over-year, as growth in sales in the targeted defense and aerospace market was able to essentially offset previously disclosed end-of-life sales reductions to Hewlett-Packard (HP). EMS sales, excluding HP, were up approximately 23% in the fourth quarter year-over-year.

Full-year 2008 revenue of $691.7 million increased 1% over 2007. Components and sensors segment sales increased 4% year-over-year primarily driven by a 15% increase in electronic component sales. Full-year sales of automotive sensors and actuators were down 2% as the impact of drastically lower automotive sales worldwide accelerated over the course of 2008 and was partially offset by the capture of new customers and new product introductions. EMS segment sales decreased 2% year-over-year as lower sales in the computer market were partially offset by strong growth in sales into target markets.

Commenting on fourth quarter results, Vinod M. Khilnani, CTS President and Chief Executive Officer, stated, “In an increasingly difficult economic environment, we were pleased with our fourth quarter performance and year-over-year increase in sales and earnings along with a positive free cash flow. Although the global recession will continue to unfavorably impact the markets CTS serves in the near term, the Company has taken steps to reduce its cost structure and cash flow needs. This is being achieved through our recent restructuring program, compensation reduction actions and tighter working capital and capital expenditure management.”