MTS Technologies, Inc. Selected by Chrysler Group for Remote Diagnostics and Test Fleet Monitoring

TROY, Mich., July 14 -- MTS Technologies, Inc. (MTS), a provider of next-generation remote diagnostic and prognostic solutions for product development and fleet monitoring, was selected by the Chrysler Group to implement its family of Wireless ePULSE (embedded Prognostics Utility and Logistical Status Environment) solutions. The ePULSE system will be installed in all new product development test vehicles -- totaling nearly 3,000 assets by the end of 2006. Under the terms of the agreement, MTS will install Wireless ePULSE systems in new product test vehicles and provide web-based diagnostic data tools for Chrysler Group engineers to analyze vehicle usage. The Wireless ePULSE system was most recently demonstrated at a major technology symposium in Johnstown, PA in early June. http://www.johnstownchamber.com/showcase/

The MTS Wireless ePULSE technology serves as an end-to-end diagnostic solution for vehicle development and fleet tracking. The Wireless ePULSE is used to improve the quality of early and late stage developments for components or entire vehicle platforms. Its capabilities include remote monitoring, data collection, location tracking, backend data management, and data aggregation leading toward the development of prognostic algorithms. The Wireless ePULSE enables clients to analyze diagnostic data on their products before they are released to the general public. Access to the Wireless ePULSE data management system is enabled via secure Internet logins with dynamic selectable data views to meet the specific needs of clients. The system enables a view into a particular fleet, region, or individual vehicle operation in real time. "Our Wireless ePULSE system can be remotely re- configured in real time to adapt to the data needs of our clients through on- board wireless interfaces to include WiFi and Cellular variants," according to Larry Osentoski, MTS' Advanced Systems Director. "MTS is excited to support the Chrysler Group on this program and looks forward to expanding our relationship with the automaker in the area of remote diagnostics and prognostics."

Notably, at recent product demonstrations, U.S. Army leadership has expressed a desire to integrate MTS' family of Wireless ePULSE commercial products into the Tactical Wheeled Vehicle fleet to leverage MTS' industry expertise in the areas of diagnostics and data management. The Showcase for Commerce event in Johnstown, PA has historically been geared toward technologies supporting the Department of Defense, but in recent years has expanded to include commercial technologies. This year, MTS demonstrated Wireless ePULSE systems installed within Chrysler Group products, as well as Army Tactical Wheeled Vehicles. Mr. Osentoski also said, "Our demonstration at the Johnstown Showcase for Commerce highlighted the flexibility, configurability and scalability of our family of ePULSE products. We see a need for this technology within the Department of Defense and hope to help address those needs over the next year."

About MTS Technologies, Inc.

MTS Technologies, Inc. (MTS) is a privately held minority and veteran- owned firm that provides technical services to both government and commercial entities in the areas of engineering, information technology and management consulting. MTS has locations throughout the United States with major offices in Troy, MI; Johnstown, PA; San Diego, CA; Orlando, FL; and Arlington, VA (Headquarters).

About DaimlerChrysler

DaimlerChrysler AG (stock-market identification code DCX) is one of the leading global automotive companies. Its unique product range goes from small cars to sports cars and luxury sedans, and from versatile vans to classic heavy-duty trucks or comfortable coaches. The passenger car portfolio includes Maybach, Mercedes-Benz, Chrysler, Jeep(R), Dodge and smart. Commercial vehicle brands include Mercedes-Benz, Mitsubishi Fuso, Freightliner, Sterling, Western Star and Setra. Furthermore, the company offers financial and other automotive services through DaimlerChrysler Services. Please find further information on the Internet under http://www.daimlerchrysler.com/ .

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.