March 13, 2008

FOR RELEASE:  Immediately

CTS CORPORATION ANNOUNCES ACQUISITION OF
ORION MANUFACTURING, INC.

Acquisition Broadens Customer Base Within Targeted Markets

Elkhart, IN…CTS Corporation (NYSE: CTS) today announced the acquisition of Orion Manufacturing, Inc., a privately held company, for approximately $10 million in cash.  Under the terms of the agreement, CTS may pay a contingent earn out of up to $1.75 million in cash, based on the achievement of certain financial targets in 2008 and 2009.  Orion is a contract electronics manufacturer based in San Jose, California, providing turnkey electronics manufacturing services to customers in the defense and aerospace, industrial and medical markets.  Full year 2007 sales were approximately $27 million.  CTS expects the transaction to be accretive in year one.     

The acquisition combines Orion’s capabilities, with CTS’ Electronics Manufacturing Solutions (EMS) business headquartered in Moorpark, California.  CTS expects to achieve significant synergies by combining the Orion operation with the CTS operation in Santa Clara, California. 

Commenting on the acquisition, Vinod M. Khilnani, CTS President and Chief Executive Officer said, “Orion Manufacturing is a well respected, highly-focused contract manufacturer with a strong customer base and excellent service capabilities specializing in low volume, high mix assemblies. Orion has built a solid track record of providing competitive, on-time quality manufacturing services. Its business model complements CTS’ EMS business and enhances our ability to add value in our target markets.”
 

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.  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, potential changes in the economy generally and in respect to the businesses in which CTS operates; rapid technological change 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; and risks associated with CTS’ international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks.  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.