Belt Tension Sensor Program for Advanced Occupant Restraint System

    ELKHART, Ind.--Nov. 13, 2002--CTS Corporation , a world leader in automotive sensor and thick film technology, today announced that a major international vehicle manufacturer has selected CTS Automotive Products to supply additional seat belt tension sensors (BTS) for use in passenger vehicles. The vehicles using this new product will be built and sold primarily in North America starting with Model Year 2004. The multiyear program will add over $17 million in new revenue. Design wins to date for this product family are expected to generate over $100 million in revenue over the program life. The total market for this product is expected to exceed $160 million annually by 2007.
    The most recently awarded program will use CTS' new patent-pending web-through BTS design. This second family of CTS BTS products provides customers with the installation flexibility as to the method and the location of the BTS, including either seat or B-pillar mounting. Other CTS advantages include small package size and outstanding performance characteristics.
    CTS' belt tension sensors are used in passenger vehicles as part of an occupant classification system, mandated by Federal Motor Vehicle Safety Standard 208, which controls the deployment and force of passenger-side airbags. By 2006, all passenger vehicles sold in the U.S. must have an occupant classification system installed. A recent proposal by the National Highway Traffic Safety Administration (NHTSA) lowers the first year (Model Year 2004) fitment rates from 35% to 20%, but maintains the fitment rates for year two (Model Year 2005 - 65%) and year three (Model Year 2006 - 100%). The NHTSA proposal has not affected CTS' position in this market, and ongoing testing at other customers is expected to result in significant additional programs for CTS.
    For additional information on CTS belt tension sensors or related safety, performance and convenience products, please contact Jim White, director, advanced sales and marketing, phone: (574) 295-3575, Ext. 315, or E-mail: jim.white@ae.ctscorp.com.
    Statements about the Company's earnings outlook and its plans, estimates and beliefs concerning the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations. Actual results may differ materially from those reflected in the forward-looking statements due to a variety of factors which could affect the Company's operating results, liquidity and financial condition. We undertake no obligations to publicly update or revise any forward-looking statements. Factors that could impact future results include among others: the general market conditions in the communications, computer and automotive markets, and in the overall economy; whether the Company is able to implement measures to improve its financial condition and flexibility; the Company's successful execution of its restructurings, consolidation and cost-reduction plans; pricing pressures and demand for the Company's products, especially if economic conditions worsen or do not recover in the key markets for the Company's products; and risks associated with our international operations, including trade and tariff barriers, exchange rates and political risks. Investors are encouraged to examine the Company's SEC filings, which more fully describe the risks and uncertainties associated with the Company's business.
    CTS Corporation is a leading designer and manufacturer of electronic components and assemblies for the communications, computer and automotive markets. The Company manufactures products in North America, Europe and Asia. Worldwide sales coverage is accomplished through a network of direct sales personnel, independent manufacturers' representatives and electronic distributors. The Company's stock is traded on the NYSE under the ticker symbol "CTS." To find out more, visit the Company's website at www.ctscorp.com.