CTS Announces Completion of Sale of $25 Million of Convertible Subordinated Debentures

    ELKHART, Ind.--April 16, 2002--CTS Corporation today announced the completion of a $25 million private offering of five-year, 6.5% convertible subordinated debentures with several large institutional investors.
    The debentures are unsecured obligations, convertible into CTS common stock at a conversion price of $20.05 per share which equates to a 15% conversion premium calculated over the applicable pricing period. The Company has granted the initial purchasers of the debentures a 90-day option to purchase an additional $5.0 million aggregate principal amount of the debentures. At any time after the three-year anniversary of the issue date, the purchasers may accelerate the maturity of the debentures. CTS also has the right after such three-year anniversary and under certain circumstances, to force conversion of the debentures into common stock. CTS intends to use the net proceeds from the offering to repay debt outstanding under its existing credit facility.
    This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities. The debentures and the common stock issuable upon conversion of the debentures have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws. Unless so registered, the debentures and common stock issuable upon conversion of the debentures may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.