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CTS Awarded Production Program for Smart Actuators

December 3, 2009

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--(BUSINESS WIRE) -- CTS Corp. (NYSE: CTS) has 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.

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."

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