Components and Sensors segment sales increased 46% from the same period last year, reflecting both improved global economic conditions and new product introductions. Second quarter 2010 sales of sensor and actuator products increased 42% from the same period last year, primarily from strong growth in global light vehicle production, particularly in North America. Sales of electronic component products increased 52% across all served markets from general improvement in the economy and new product introductions. As a result, Components and Sensors segment sales, as a percent of total company sales, increased to 52% from 41% in the second quarter of 2009.

EMS sales decreased 6% from the same period last year. However, excluding the end-of-life sales to Hewlett-Packard (HP), EMS sales increased 3% year-over-year. End-of-life typically means that the product is no longer required by the customer due to a design change or technological advancement. The 3% year-over-year increase was driven primarily by stronger sales in the communications market. EMS second quarter 2010 sales improved 19% sequentially over the first quarter, with increases reported across most markets reflecting improved general economic trends.

Supporting a higher level of business in the current year, cash flow generated from operations was $6.3 million in the first half of 2010 compared to $15.7 million in the same period last year. Capital expenditures were $6.2 million, or 2.3% of sales, in the first half of 2010 compared to $2.8 million, or 1.2% of sales, in the same period last year.

Commenting on second quarter results, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer, stated, “We are pleased that both revenues and earnings increased year-over-year and sequentially from last quarter. We continue to enhance our research and development activities and new product introductions as we further diversify our revenue base.”

Based on the first half results and current outlook, and assuming no new significant economic weakness, management anticipates full-year 2010 diluted earnings per share in the range of $0.55 to $0.62 compared to the previous range of $0.52 to $0.60. Full-year 2010 sales are estimated to increase 10%-15% over 2009 compared to the previous guidance of 12%-20% increase year-over-year.

SEGMENT INFORMATION

Components & Sensors: Components and Sensors second quarter 2010 sales increased $22.6 million, or 46%, from the second quarter of 2009. The sales improvement resulted from higher automotive sensor and actuator product and electronic component product demand, across essentially all product lines. Segment operating earnings of $7.9 million were $5.9 million favorable to the second quarter of 2009 due to higher sales, partially offset by increased research and development costs for growth initiatives.

Components and Sensors sales decreased $1.2 million, or 2%, from the first quarter of 2010 reflecting decreased demand primarily in automotive sensor and actuator products. Segment operating earnings decreased $1.1 million primarily on lower sales and unfavorable product mix.

EMS: EMS sales decreased $4.2 million, or 6%, from the same period last year. However, excluding the reduction of end-of-life sales to HP, EMS sales increased $1.6 million, or 3% year-over-year. This increase was driven primarily by stronger sales in the communications market. Segment operating loss of $0.2 million compares to operating earnings of $1.1 million in the second quarter of 2009, resulting primarily from lower sales.

EMS sales increased $10.7 million, or 19%, from the first quarter 2010, due to increased demand in most served markets. The segment operating loss of $0.2 million compares favorably to a loss of $2.7 million in the first quarter 2010 due to higher sales.

Conference Call

As previously announced, the Company has scheduled a conference call on Tuesday, July 27, 2010 at 11:00 a.m. EDT. Those interested in participating may dial 800-230-1092 (612-332-0107, if calling from outside the U.S.). No access code is needed. There will be a replay of the conference call available from 1:30 p.m. EDT on Tuesday, July 27, 2010, through 11:59 p.m. EDT on Tuesday, August 3, 2010. The telephone number for the replay is 800-475-6701 (320-365-3844, if calling from outside the U.S.). The access code is 164863. There will also be a live audio webcast of the conference call which can be accessed directly from the Web sites of CTS Corporation (www.ctscorp.com), StreetEvents (www.StreetEvents.com), Netscape (www.netscape.com), Compuserve (www.compuserve.com) and others. AOL subscribers will have access through the Personal Finance section of AOL.

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, communications, medical, defense and aerospace, industrial and computer 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 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, any financial or other guidance, statements that reflect our current expectations concerning future results and events and any other statements that are not based solely on historical fact. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements, including, without limitation: changes in the economy generally and in respect to the businesses in which CTS operates, including those resulting from the current global financial and credit crisis; pricing pressures and reduction in demand for CTS’ products, especially if economic conditions do not recover or continue to worsen in CTS’ served markets, including but not limited to: the automotive, computer equipment or communications markets; disruption, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged by CTS and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability or ongoing viability; risks associated with CTS’ international operations, including trade and tariff barriers; currency fluctuations and their effects on our results of operations and financial position; changes in performance of equity and debt markets that could affect the valuation of the assets in CTS’ pension plans and the accounting for pension assets, liabilities and expenses; political and geopolitical risks; rapid technological change in the automotive, communications and computer industries; reliance on key customers; CTS’ ability to protect its intellectual property; and potential costs and liabilities related to the recent Toyota recall. For more detailed information on the risks and uncertainties associated with CTS’ business, see the reports CTS files with the Securities and Exchange Commission available at http://www.ctscorp.com/investor_relations/investor.htm. CTS undertakes no obligation to publicly update its forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes.