March 15, 2007

FOR RELEASE:  Immediately

CTS Corporation Reports Progress in Internal Investigation
 

Elkhart, IN…CTS Corporation (NYSE: CTS) today announced that it has made significant progress in its internal investigation of payables and inventory at the company’s EMS Moorpark manufacturing location previously announced on February 9, 2007 and anticipates that the investigation and related account reconciliation will be completed no later than March 30^th.

The investigation is being conducted under the direction of the Board’s Audit Committee with the assistance of independent forensic accountants and outside counsel.  The investigation to date has generally confirmed the findings of management’s investigation reported in the February 9, 2007 release and has determined that substantially all of the problematic entries in the accounts at issue were made by or caused to be made by the former controller for the Moorpark facility, and not discovered by senior management until shortly before the February 9 release.

After the investigation is completed, CTS will establish and publish dates for the fourth quarter 2006 earnings release and the related conference call. The Form 10K for the year ended December 31, 2006 and amended Form 10Q’s for 2006 will be filed shortly after the earnings release date.
 

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 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, including the potential impact of the accounting issues described above.  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 results of the investigation into the accounting issues described above.  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.