CTS Corporation Announces Award of Non-Contacting Electronic Throttle Control Pedal Assembly Program

    ELKHART, Ind.--May 19, 2003--CTS Corporation , a global leader in automotive sensors and actuators, today announced that a major international vehicle manufacturer has selected CTS Automotive Products to supply non-contacting Electronic Throttle Control (ETC) Pedal Assemblies for use in passenger vehicles produced in North America, Europe and Asia. Prototypes will be delivered in the third quarter of this year, with full production beginning in 2004. The initial award, which covers several vehicle platforms, is expected to provide over $35 million in new revenues through 2009. Additional platforms are expected to be added to the contract. The use of integrated electronic throttle control pedals in automobiles is rapidly increasing, with the annual market expected to be over $220 million by 2008. Including this award, CTS has won positions on 13 platforms with four OEMs for its electronic throttle control pedals.
    Electronic Throttle Control Systems are replacing conventional mechanical throttle control systems because they improve fuel economy, reduce emissions and enable the use of other innovative technologies such as adaptive cruise control and traction control systems. The ETC Pedal Assembly is mounted in place of the existing accelerator pedal and converts mechanical pedal movement into an electronic signal. The CTS ETC Pedal Assembly meets all typical passenger compartment automotive specifications, can be used with both gasoline and diesel applications, and is compatible with multiple engine control units.
    CTS was selected for this award based on its capability to develop a cost-effective custom non-contacting product, and its proven experience in pedal assembly design and production. CTS' capability to support global customers from facilities in North America, Europe and Asia, was also a key selection factor. "This award places CTS in a leadership position in electronic throttle control systems and pedals, and is a significant step in our plan to more than double our automotive sensor business by 2007," said Donald Schwanz, CTS' chairman and chief executive officer.
    CTS designs and manufactures sensors and actuators used in powertrain, safety, suspension, fuel and emission control systems for automotive manufacturers worldwide. The Company has automotive sensor and actuator manufacturing locations in Elkhart, Indiana; Berne, Indiana; Matamoros, Mexico; High Blantyre, Scotland; Kaohsiung, Taiwan; and Streetsville, Ontario, Canada.
    For more information on non-contacting pedal assemblies and related products, please contact Ken Kochanowski at (574) 295-3575 or e-mail at ken.kochanowski@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 automotive, computer and communications markets, and in the overall worldwide economies; reliance on key customers; the Company's capabilities to implement measures to improve its financial condition and flexibility; the Company's successful execution of its ongoing 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; changes in the liability insurance markets which might impact the Company's capability to obtain appropriate levels of insurance coverage; the effect of major health concerns such as Severe Acute Respiratory Syndrome (SARS) on our employees, customers and suppliers; and risks associated with our international operations, including trade and tariff barriers, exchange rates and political and geopolitical 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 components and sensors, and EMS for the automotive, computer and communications 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.

    Contact:
    Vinod M. Khilnani, Sr. Vice President and Chief Financial Officer,
    or George T. Newhart, Vice President Investor Relations
    CTS Corporation, 905 West Boulevard North, Elkhart, IN 46514
    Telephone (574) 293-7511 FAX (574) 293-6146
    www.ctscorp.com