CTS Corporation Announces Divestitures

25 March 1999

CTS Corporation Announces Divestitures

    ELKHART, Ind.--March 24, 1999--CTS Corporation announced today it is nearing completion of activities related to the divestiture of the noncore businesses of its wholly-owned subsidiary, Dynamics Corporation of America (DCA).
    The DCA frequency products and thermal management product lines have been successfully integrated into CTS' core business as planned. This announcement comes one month after finalization of the acquisition of Motorola's Component Products Division (CPD), now called CTS Wireless Components, Inc. Today, with the CPD acquisition, approximately 40% of CTS' revenue is generated from component product sales to the wireless communications industry, which is experiencing growth rates of 23% to 32%.
    In March 1998, CTS announced its plans to deal with the noncore businesses acquired in the DCA acquisition. These businesses included operations involved in the production and sale of household appliances, power generators, controlled environmental systems, fabricated air distribution and fabricated metal door products for the commercial construction industry. These products had combined 1997 revenues of $100 million and a total book value of $32 million at the end of 1997. It is not expected that the sales of these operations will have any significant effect on CTS' results of operations. All noncore businesses have been presented as discontinued operations in CTS' financial statements.
    In May 1998, the sale of the Waring household appliance business was completed. In February 1999, CTS announced the sale of the Fermont Division, a power generator business. CTS has also signed a definitive agreement for the sale of the Anemostat Products Divisions, manufacturers of fabricated air distribution, controlled environmental systems and fabricated metal door products, and expects to consummate that sale on March 26, 1999.
    Another significantly positive aspect of the divestiture is the increase in available capital to fund core activities or other acquisitions. Expected gross proceeds from these divestiture activities will be in excess of $50 million. These funds will be redeployed into other core activities with higher growth rates, including the recent acquisition from Motorola.
    For additional news on CTS Corporation, visit our website at www.ctscorp.com...Home Page...What's New.

    CTS Corporation, listed on the New York Stock Exchange, (Ticker: CTS), is primarily a diversified manufacturer of electronic components and custom electronic assemblies principally for the computer equipment, automotive and communications equipment markets. The Company, headquartered in Elkhart, Indiana, operates manufacturing plants in the United States and abroad.