CTS Announces Agreement to Sell its Low Temperature Cofired Ceramics Operation to American Technical Ceramics Corp.

ELKHART, Ind. -- CTS Corporation (NYSE:CTS) today announced that it has entered into an asset purchase agreement with American Technical Ceramics Corp. (ATC) for the sale of the assets of its Low Temperature Cofired Ceramic (LTCC) product operations. The sale includes production equipment and inventory associated with the LTCC product line, but excludes the West Lafayette, Indiana facility where LTCC product operations have been conducted.

Under the terms of the agreement CTS will continue LTCC operations over the next few months, while ATC prepares to transfer the equipment to its facility. During this transition, CTS expects to continue to meet all customer requirements.

Tyler Buchanan, CTS senior vice president, stated, "The Low Temperature Cofired Ceramics operation is not strategic to our company. Annual sales are less than $8 million per year, with profitability near break-even. Therefore, the sale will have little impact on total company results, while freeing management time to focus on growth areas of the business."

The transaction is not expected to have a material impact on 2005 results. Once the transfer of equipment to ATC is completed, the Company expects to sell the West Lafayette, Indiana facility.

About ATC

American Technical Ceramics Corp., (AMEX Symbol: AMK) based in Huntington Station, New York, designs, develops, manufactures and markets electronic components, including ceramic multilayer capacitors and custom thin film circuits. The company's products are utilized in a broad range of commercial and military applications.

About CTS

CTS is a leading designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services (EMS) to OEMs in the automotive, computer, communications, medical and industrial markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS." To find out more, visit the CTS Web site at www.ctscorp.com.

Safe Harbor Statement

This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the business and strategic benefits of the SMTEK acquisition, any financial or other guidance, and all statements that are not based on historical fact, but rather reflect our current expectations concerning future results and events. We make certain assumptions when making forward-looking statements, any of which could prove inaccurate, including, but not limited to, statements about our future operating results and business plans. The ultimate correctness of these forward-looking statements is dependent upon a number of known and unknown risks and events, and is subject to various uncertainties and other factors that may cause our actual results, performance, or achievements to be different from any future results, performance, or achievements expressed or implied by these statements.

For more detailed information on the risks and uncertainties associated with CTS' business activities, see our reports filed with the SEC. CTS undertakes no obligation to publicly update its forward-looking statements, whether as a result of market or industry changes, new information or future events.