Formula 1 Team Selects MTS for New Engine Dynamometer System

EDEN PRAIRIE, Minn., Jan. 26, 2005 -- MTS Systems Corporation today announced that a leading Formula 1 team has selected the Company to provide a new high performance engine dynamometer system. This represents an order of over $3M.

"We are pleased to continue our track record in the Formula 1 market as being the supplier of choice for state-of-the-art, high performance testing solutions. MTS is uniquely suited to meeting customers' needs in this highly competitive market," said Sidney W. Emery, Jr., MTS Chairman and CEO.

The dynamometer system is based on the high performance permanent magnet motors that MTS has been developing for other Formula 1 applications and represents the most dynamic performance available for this application. As racing teams are forced to carry out more testing and development away from the racetrack due to testing restrictions, the focus on simulation systems and methods that represent the extremely complex, real world situation is more and more important. MTS is leading the industry in supplying testing solutions for chassis, powertrain and aerodynamic requirements with respect to the motorsports market.

About MTS Systems Corporation:

MTS Systems Corporation is a leading global supplier of test systems and industrial position sensors. The Company's testing hardware and software solutions help customers accelerate and improve their design, development, and manufacturing processes and are used for determining the mechanical behavior of materials, products, and structures. MTS' high performance position sensors provide controls for a variety of industrial and vehicular applications. MTS is the worldwide leading supplier of rolling road and model motion systems for aerodynamic development of ground vehicles. MTS delivers cutting edge dynamometer technology for the testing of Motorsports' powertrains as well as chassis dynamics systems, durability systems, and tire test systems to the Motorsports Industry worldwide. MTS had 1,615 employees and revenue of $367 million for the fiscal year ended October 2, 2004. Additional information on MTS can be found on the worldwide web at http://www.mts.com/ .