----

----

| x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

|   | Indiana                                                             |   | 35-0225010                                |   |
|--------|---------------------------------------------------------------------|--------|-------------------------------------------|--------|
|   | (State      or other jurisdiction of incorporation or organization) |   | (IRS      Employer Identification Number) |   |

|   | 905      West Boulevard North, Elkhart, IN    |   | 46514           |   |
|--------|-----------------------------------------------|--------|-----------------|--------|
|   | (Address      of principal executive offices) |   | (Zip      Code) |   |

----

CTS CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS

|         |                                                                                                                                                                                                                                                                       |                                                                                                  | Page   |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------|
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
| PART      I. | FINANCIAL INFORMATION                                                                                                                                                                                                                                                      |                                                                                                  |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         | Item      1.                                                                                                                                                                                                                                                               | Financial      Statements                                                                             | 3      |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         |                                    Unaudited Condensed      Consolidated Statements of Earnings (Loss)                    | 3                                                                                                     |
|         |                - For the Three and Nine Months Ended September 27, 2009 and September 28,      2008                                                                                                                           |                                                                                                  |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         |                                    Unaudited Condensed      Consolidated Balance Sheets                                   | 4                                                                                                     |
|         |                                    - As of September 27, 2009 and December 31, 2008                                       |                                                                                                  |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         |                                    Unaudited Condensed      Consolidated Statements of Cash Flows                         | 5                                                                                                     |
|         |                                    - For the Nine Months Ended September 27, 2009 and September 28,      2008             |                                                                                                  |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         |                                    Unaudited Condensed      Consolidated Statements of Comprehensive Earnings      (Loss) | 6                                                                                                     |
|         |                - For the Three and Nine Months Ended September 27, 2009      and  September 28, 2008                                                                                                                |                                                                                                  |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         |                                   Notes to Unaudited Condensed      Consolidated Financial Statements                          | 7                                                                                                     |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         | Item      2.                                                                                                                                                                                                                                                               | Management’s Discussion and      Analysis of Financial Condition and Results of      Operations | 20     |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         | Item      3.                                                                                                                                                                                                                                                               | Quantitative and Qualitative      Disclosures about Market Risk                                       | 29     |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         | Item      4.                                                                                                                                                                                                                                                               | Controls and      Procedures                                                                          | 29     |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
| PART    II.  | OTHER INFORMATION                                                                                                                                                                                                                                                          |                                                                                                  |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         | Item      1.                                                                                                                                                                                                                                                               | Legal      Proceedings                                                                                | 29     |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         | Item      1A.                                                                                                                                                                                                                                                              | Risk      Factors                                                                                     | 29     |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
|         | Item      6.                                                                                                                                                                                                                                                               | Exhibits                                                                                              | 30     |
|         |                                                                                                                                                                                                                                                                       |                                                                                                  |   |
| SIGNATURES   |                                                                                                                                                                                                                                                                       | 31                                                                                                    |

----

Table of Contents

PARTI

FINANCIALINFORMATION

|   | Item 1.   Financial      Statements |
|--------|----------------------------------------------------|

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) -UNAUDITED

|                                              |   | Three      Months Ended |    |   | Nine      Months Ended   |   |
|---------------------------------------------------|--------|-------------------------|---------|--------|--------------------------|--------|
|                                              |   | September      27, 2009 |    |   | September      28, 2008* |   |   | September      27, 2009 |   |   | September      28, 2008* |   |
|                                              |   |                    |    |   |                     |   |   |   |   |   |   |   |
| Net      sales                                    |   | $                       | 126,565 |   |                     | $      | 170,034 |   |   | $ | 365,094 |   |   | $ | 528,880 |   |
| Costs      and expenses:                          |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of goods sold                           |   |                    | 100,380 |   |                     |   | 136,684 |   |   |   | 297,202 |   |   |   | 421,553 |   |
| Selling,      general and administrative expenses |   |                    | 16,494  |   |                     |   | 20,754 |   |   |   | 48,357 |   |   |   | 63,236 |   |
| Research      and development expenses            |   |                    | 3,408   |   |                     |   | 4,509 |   |   |   | 10,227 |   |   |   | 13,576 |   |
| Restructuring      charge – Note I          |   |                    | — |   |                     |   | 3,202 |   |   |   | 2,243 |   |   |   | 3,465 |   |
| Goodwill      impairment                          |   |                    | — |   |                     |   | — |   |   |   | 33,153 |   |   |   | — |   |
| Operating      earnings/(loss)                    |   |                    | 6,283   |   |                     |   | 4,885 |   |   |   | (26,088 | ) |   |   | 27,050 |   |
| Other      (expense)/income:                      |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                             |   |                    | (256    | )      |                     |   | (1,591 | ) |   |   | (1,615 | ) |   |   | (4,976 | ) |
| Interest      income                              |   |                    | 17      |   |                     |   | 316 |   |   |   | 118 |   |   |   | 1,174 |   |
| Other                                             |   |                    | (390    | )      |                     |   | (307 | ) |   |   | (736 | ) |   |   | 98 |   |
| Total      other expense                          |   |                    | (629    | )      |                     |   | (1,582 | ) |   |   | (2,233 | ) |   |   | (3,704 | ) |
|                                              |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings/(loss) before      income taxes     |   |                    | 5,654   |   |                     |   | 3,303 |   |   |   | (28,321 | ) |   |   | 23,346 |   |
| Income      tax expense/(benefit)                 |   |                    | 1,173   |   |                     |   | (3,912 | ) |   |   | 9,872 |   |   |   | 266 |   |
| Net      earnings/(loss)                          |   | $                       | 4,481   |   |                     | $      | 7,215 |   |   | $ | (38,193 | ) |   | $ | 23,080 |   |
| Net      earnings/(loss) per share - Note K       |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                             |   | $                       | 0.13    |   |                     | $      | 0.21 |   |   | $ | (1.13 | ) |   | $ | 0.68 |   |
|                                              |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                           |   | $                       | 0.13    |   |                     | $      | 0.21 |   |   | $ | (1.13 | ) |   | $ | 0.65 |   |
|                                              |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends declared per share            |   | $                       | 0.03    |   |                     | $      | 0.03 |   |   | $ | 0.09 |   |   | $ | 0.09 |   |
| Average      common shares outstanding:           |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                             |   |                    | 33,873  |   |                     |   | 33,708 |   |   |   | 33,799 |   |   |   | 33,735 |   |
| Diluted                                           |   |                    | 34,513  |   |                     |   | 38,199 |   |   |   | 33,799 |   |   |   | 38,206 |   |

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Table of Contents

CTS CORPORATION ANDSUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                           |   | September      27,2009 |    |   | December      31, 2008* |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-------------------------|--------|
| ASSETS                                                                                                         |   |                   |    |   |                    |   |
| Current      Assets                                                                                            |   |                   |    |   |                    |   |
|   Cash      and cash equivalents                                                                     |   | $                      | 40,329  |   |                    | $      | 44,628 |   |
|   Accounts      receivable, less allowances (2009 – $2,250; 2008- $2,165)                      |   |                   | 75,942  |   |                    |   | 94,175 |   |
|   Inventories,      net - Note D                                                                     |   |                   | 60,452  |   |                    |   | 70,867 |   |
|   Other      current assets                                                                          |   |                   | 14,969  |   |                    |   | 16,172 |   |
|      Total      current assets                                                        |   |                   | 191,692 |   |                    |   | 225,842 |   |
| Property,      plant and equipment, less accumulated depreciation (2009 - $267,614;      2008 - $257,850) |   |                   | 83,395  |   |                    |   | 90,756 |   |
| Other      Assets                                                                                              |   |                   |    |   |                    |   |   |   |
|   Prepaid      pension asset                                                                         |   |                   | 24,609  |   |                    |   | 18,756 |   |
|   Goodwill      – Note J                                                                       |   |                   | — |   |                    |   | 33,150 |   |
|   Other      intangible assets – Note N                                                        |   |                   | 34,577  |   |                    |   | 36,927 |   |
|   Deferred      income taxes                                                                         |   |                   | 71,718  |   |                    |   | 82,101 |   |
|   Other                                                                                              |   |                   | 689     |   |                    |   | 910 |   |
|      Total      other assets                                                          |   |                   | 131,593 |   |                    |   | 171,844 |   |
| Total      Assets                                                                                              |   | $                      | 406,680 |   |                    | $      | 488,442 |   |

| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                                         |   |    |     |   |   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|----------|--------|--------|---------|
| Current      Liabilities                                                                                                                                                                                                |   |    |     |   |   |    |
|   Accounts      payable                                                                                                                                                                                       |   |  $ | 62,211   |   |   | $  | 71,285 |   |
|   Accrued      liabilities                                                                                                                                                                                    |   |    | 36,254   |   |   |    | 41,956 |   |
|      Total      current liabilities                                                                                                                                                            |   |    | 98,465   |   |   |    | 113,241 |   |
| Long-term      debt  - Note E                                                                                                                                                                                 |   |    | 49,500   |   |   |    | 79,988 |   |
| Other      long-term obligations                                                                                                                                                                                        |   |    | 16,820   |   |   |    | 17,740 |   |
| Shareholders’      Equity                                                                                                                                                                                         |   |    |     |   |   |    |   |   |
|   Preferred      stock - authorized 25,000,000 shares without par value; none      issued                                                                                                                     |   |    | —  |   |   |    | — |   |
|   Common      stock - authorized 75,000,000 shares without par value; 54,195,624 shares      issued at      September 27, 2009 and          54,031,844 shares issued at December 31, 2008 |   |    | 282,231  |   |   |    | 280,266 |   |
|   Additional      contributed capital                                                                                                                                                                         |   |    | 36,665   |   |   |    | 37,148 |   |
|   Retained      earnings                                                                                                                                                                                      |   |    | 314,456  |   |   |    | 355,694 |   |
|   Accumulated      other comprehensive loss                                                                                                                                                                   |   |    | (94,448  | )      |   |    | (98,626 | ) |
|                                                                                                                                                                                                                    |   |    | 538,904  |   |   |    | 574,482 |   |
| Cost      of common stock held in treasury (2009 and 2008 – 20,320,759      shares)                                                                                                                               |   |    | (297,009 | )      |   |    | (297,009 | ) |
|    Total      shareholders’ equity                                                                                                                                                                 |   |    | 241,895  |   |   |    | 277,473 |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                                                                                   |   | $       | 406,680  |   |   | $       | 488,442 |   |

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Table of Contents

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS -UNAUDITED

|                                                                                                         |   | Nine      Months Ended |         |
|--------------------------------------------------------------------------------------------------------------|--------|------------------------|--------------|
|                                                                                                         |   | September      27,2009 |         |   | September      28,2008* |   |
| Cash      flows from operating activities:                                                                   |   |                   |         |   |   |   |
| Net      (loss)/earnings                                                                                     |   | $                      | (38,193      | ) |   | $ | 23,080 |   |
| Adjustments      to reconcile net (loss)/earnings to net cash provided by operating      activities:         |   |                   |         |   |   |   |   |   |
|        Depreciation      and amortization                                 |   |                   | 14,919       |   |   |   | 18,457 |   |
| Prepaid      pension asset – Note F                                                                    |   |                   |  (5,853 | ) |   |   | (7,599 | ) |
|        Equity-based      compensation – Note B                      |   |                   | 2,711        |   |   |   | 2,614 |   |
|        Restructuring      and impairment charges – Note I           |   |                   | 2,243        |   |   |   | 3,465 |   |
|        Goodwill      impairment – Note J                            |   |                   | 33,153       |   |   |   | — |   |
|        Gain      on sales of assets                                       |   |                   | (1,153       | ) |   |   | (30 | ) |
|        Amortization      of retirement benefit adjustments – Note F |   |                   | 3,942        |   |   |   | 1,683 |   |
|        Changes      in assets and liabilities, net of acquisitions        |   |                   |         |   |   |   |   |   |
|       Accounts      receivable                                                 |   |                   | 20,045       |   |   |   | 1,041 |   |
|       Inventories                                                              |   |                   | 11,031       |   |   |   | (5,529 | ) |
|       Other      current assets                                                |   |                   | 1,600        |   |   |   | 1,054 |   |
|       Accounts      payable and accrued liabilities                            |   |                   | (18,936      | ) |   |   | (13,804 | ) |
|              Other                          |   |                   | 8,542        |   |   |   | (4,312 | ) |
| Total      adjustments                                                                                       |   |                   | 72,244       |   |   |   | (2,960 | ) |
| Net      cash provided by operating activities                                                               |   |                   | 34,051       |   |   |   | 20,120 |   |
|                                                                                                         |   |                   |         |   |   |   |   |   |
| Cash      flows from investing activities:                                                                   |   |                   |         |   |   |   |   |   |
| Payments      for acquisitions, net of cash received – Note C                                          |   |                   | —      |   |   |   | (20,828 | ) |
| Capital      expenditures                                                                                    |   |                   | (4,681       | ) |   |   | (13,756 | ) |
| Proceeds      from sales of assets                                                                           |   |                   | 1,309        |   |   |   | 34 |   |
| Net      cash used in investing activities                                                                   |   |                   | (3,372       | ) |   |   | (34,550 | ) |
|                                                                                                         |   |                   |         |   |   |   |   |   |
| Cash      flows from financing activities:                                                                   |   |                   |         |   |   |   |   |   |
| Payment      of 2.125% Debentures – Note E                                                             |   |                   | (32,500      | ) |   |   | — |   |
| Payments      of long-term debt – Note E                                                               |   |                   | (2,141,050   | ) |   |   | (892,150 | ) |
| Proceeds      from borrowings of long-term debt – Note E                                               |   |                   | 2,142,550    |   |   |   | 920,250 |   |
| Payments      of short-term notes payable                                                                    |   |                   | (7,755       | ) |   |   | (7,426 | ) |
| Proceeds      from borrowings of short-term notes payable                                                    |   |                   | 7,755        |   |   |   | 6,426 |   |
| Dividends      paid                                                                                          |   |                   | (3,040       | ) |   |   | (3,051 | ) |
| Purchase      of treasury stock – Note L                                                               |   |                   | —      |   |   |   | (7,037 | ) |
| Other                                                                                                        |   |                   | (929         | ) |   |   | 56 |   |
| Net      cash (used in)/provided by financing activities                                                     |   |                   | (34,969      | ) |   |   | 17,068 |   |
|                                                                                                         |   |                   |         |   |   |   |   |   |
| Effect      of exchange rate on cash and cash equivalents                                                    |   |                   | (9           | ) |   |   | (1,795 | ) |
| Net      (decrease)/increase in cash and cash equivalents                                                    |   |                   | (4,299       | ) |   |   | 843 |   |
|                                                                                                         |   |                   |         |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year                                                          |   |                   | 44,628       |   |   |   | 52,868 |   |
| Cash      and cash equivalents at end of period                                                              |   | $                      | 40,329       |   |   | $ | 53,711 |   |
|                                                                                                         |   |                   |         |   |   |   |   |   |
| Supplemental      cash flow information                                                                      |   |                   |         |   |   |   |   |   |
| Cash      paid during the period for:                                                                        |   |                   |         |   |   |   |   |   |
| Interest                                                                                                     |   | $                      | 728          |   |   | $ | 2,206 |   |
| Income      taxes—net                                                                                  |   | $                      | 5,915        |   |   | $ | 3,035 |   |
|                                                                                                         |   |                   |         |   |   |   |   |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) -UNAUDITED

|                                                             |   | Three      Months Ended |    |   | Nine      Months Ended   |
|------------------------------------------------------------------|--------|-------------------------|---------|--------|--------------------------|
|                                                             |   | September      27, 2009 |    |   | September      28, 2008* |   |   | September      27, 2009 |   |   | September      28, 2008* |   |
| Net      earnings/(loss)                                         |   | $                       | 4,481   |   |                     | $ | 7,215 |   |   | $ | (38,193 | ) |   | $ | 23,080 |   |
| Other      comprehensive earnings/(loss):                        |   |                    |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative      translation adjustment                           |   |                    | (352    | )      |                     |   | (2,459 | ) |   |   | 1,925 |   |   |   | (2,562 | ) |
| Deferred      loss on foreign currency forward contracts         |   |                    | — |   |                     |   | (31 | ) |   |   | — |   |   |   | (31 | ) |
| Amortization      of retirement benefit adjustments (net of tax) |   |                    | 779     |   |                     |   | 435 |   |   |   | 2,253 |   |   |   | 1,021 |   |
| Comprehensive      earnings/(loss)                               |   | $                       | 4,908   |   |                     | $ | 5,160 |   |   | $ | (34,015 | ) |   | $ | 21,508 |   |

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Table of Contents

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -UNAUDITED

|                        |   | Three      Months Ended |    |   | Nine      Months Ended  |   |
|-----------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|  ($ in      thousands) |   | September      27, 2009 |    |   | September      28, 2008 |   |   | September      27, 2009 |   |   | September      28, 2008 |   |
| Stock      options          |   | $                       | 2       |   |                    | $      | 18 |   |   | $ | 34 |   |   | $ | 109 |   |
| Restricted      stock units |   |                    | 907     |   |                    |   | 867 |   |   |   | 2,677 |   |   |   | 2,473 |   |
| Restricted      stock       |   |                    | — |   |                    |   | — |   |   |   | — |   |   |   | 32 |   |
| Total                       |   | $                       | 909     |   |                    | $      | 885 |   |   | $ | 2,711 |   |   | $ | 2,614 |   |

|                                    |   | 2009      Plan |      |   | 2004      Plan |   |      | 2001      Plan |   |   | 1996      Plan |   |
|-----------------------------------------|--------|----------------|-----------|--------|----------------|--------|-----------|----------------|--------|--------|----------------|--------|
| Awards      originally available        |   |           | 3,400,000 |   |           |   | 6,500,000 |           |   |   | 2,000,000      |   |   |   | 1,200,000 |   |
| Stock      options outstanding          |   |           | —   |   |           |   | 276,850   |           |   |   | 730,888        |   |   |   | 176,850 |   |
| Restricted      stock units outstanding |   |           | 381,950   |   |           |   | 469,087   |           |   |   | —        |   |   |   | — |   |
| Awards      exercisable                 |   |           | —   |   |           |   | 256,100   |           |   |   | 730,888        |   |   |   | 176,850 |   |
| Awards      available for grant         |   |           | 3,018,050 |   |           |   | 472,000   |           |   |   | —        |   |   |   | — |   |

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Table of Contents

|                                  |   | September      27, 2009 |      |   | September      28, 2008             |   |
|---------------------------------------|--------|-------------------------|-----------|--------|-------------------------------------|--------|
|                                  |   | Options                 |      |   | Weighted-AverageExercise      Price |   |   | Options |   |   | Weighted-AverageExercise      Price |   |
| Outstanding      at beginning of year |   |                    | 1,294,263 |   |                                | $      | 14.53 |   |   |   | 1,426,638 |   |   | $ | 16.06  |   |
| Exercised                             |   |                    | —   |   |                                | $      | — |   |   |   | (7,100 | ) |   | $ | 8.40 |   |
| Expired                               |   |                    | (109,675  | )      |                                | $      | 21.45 |   |   |   | (113,375 | ) |   | $ | 32.91 |   |
| Forfeited                             |   |                    | —   |   |                                | $      | — |   |   |   | — |   |   | $ | — |   |
| Outstanding      at end of period     |   |                    | 1,184,588 |   |                                | $      | 13.89 |   |   |   | 1,306,163 |   |   | $ | 14.63 |   |
|                                  |   |                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable      at end of period     |   |                    | 1,163,838 |   |                                | $      | 13.89 |   |   |   | 1,231,638 |   |   | $ | 14.76 |   |

|                                |   | September      27, 2009 |    |   | September      28, 2008                   |   |
|-------------------------------------|--------|-------------------------|---------|--------|-------------------------------------------|--------|
|                                |   | Options                 |    |   | Weighted-averageGrant-DateFair      Value |   |   | Options |   |   | Weighted-averageGrant-DateFair      Value |   |
| Nonvested      at beginning of year |   |                    | 74,525  |   |                                      | $      | 6.36 |   |   |   | 158,587 |   |   | $ | 6.41 |   |
| Vested                              |   |                    | (53,775 | )      |                                      | $      | 6.41 |   |   |   | (84,062 | ) |   | $ | 6.46 |   |
| Forfeited                           |   |                    | — |   |                                      | $      | — |   |   |   | — |   |   | $ | — |   |
| Nonvested      at end of period     |   |                    | 20,750  | (1)    |                                      | $      | 6.24 |   |   |   | 74,525 | (1) |   | $ | 6.36 |   |

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Table of Contents

|          |                     |            | Options      Outstanding |              | Options      Exercisable |
|---------------|--------------------------|-----------------|--------------------------|-------------------|--------------------------|
|          |                     |            |                     |              |                     |   | Weighted      Average |   |   |   |   |   |   |   |   |
| Range      of |                     | Number          |                     | Remaining         |                     | Weighted      Average |   | Number |   | Weighted      Average |
| Exercise      |                     | Outstanding     |                     | Contractual       |                     | Exercise |   | Exercisable |   | Exercise |
| Prices        |                     | at      9/27/09 |                     | Life      (Years) |                     | Price |   | At      9/27/09 |   | Price |
| $             | 7.70      – 11.11  |            |                     | 727,163           |                     |   |   | 3.88 |   |   | $ | 9.37 |   |   |   | 727,163 |   |   | $ | 9.37 |   |
|          | 13.68      – 16.24 |            |                     | 227,800           |                     |   |   | 4.00 |   |   |   | 14.16 |   |   |   | 207,050 |   |   |   | 14.12 |   |
|          | 23.00      – 25.10 |            |                     | 188,625           |                     |   |   | 1.56 |   |   |   | 23.22 |   |   |   | 188,625 |   |   |   | 23.22 |   |
|          | 42.69      – 79.25 |            |                     | 41,000            |                     |   |   | 0.66 |   |   |   | 49.78 |   |   |   | 41,000 |   |   |   | 49.78 |   |

|                                             |   | September      27, 2009 |     |   | September      28, 2008                   |   |
|--------------------------------------------------|--------|-------------------------|----------|--------|-------------------------------------------|--------|
|                                             |   | RSUs                    |     |   | Weighted-averageGrant-DateFair      Value |   |   | RSUs |   |   | Weighted-averageGrant-DateFair      Value |   |
| Outstanding      at beginning of year            |   |                    | 700,358  |   |                                      | $      | 10.76 |   |   |   | 595,148 |   |   | $ | 12.14 |   |
| Granted                                          |   |                    | 390,850  |   |                                      | $      | 6.09 |   |   |   | 240,950 |   |   | $ | 10.06 |   |
| Converted                                        |   |                    | (217,991 | )      |                                      | $      | 10.70 |   |   |   | (143,720 | ) |   | $ | 11.86 |   |
| Forfeited                                        |   |                    | (22,180  | )      |                                      | $      | 11.32 |   |   |   | (22,410 | ) |   | $ | 12.20 |   |
| Outstanding      at end of period                |   |                    | 851,037  |   |                                      | $      | 8.61 |   |   |   | 669,968 |   |   | $ | 11.45 |   |
|                                             |   |                    |     |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      remaining contractual life |   | 4.7      years          |     |   |                                      |   |   |   | 4.4      years |   |   |   |   |   |

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| ·   | Tusonix,      Inc. (“Tusonix”), based in Tucson, Arizona, a leader in the design and      manufacture of ceramic electromagnetic interference and radio frequency      interference (“EMI/RFI”) filters;and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Orion      Manufacturing, Inc. (“Orion”), based in San Jose, California, a contract      electronics manufacturer. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

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| ($      in thousands)       |   | September      27,2009 |   |   | December      31,2008 |   |
|-----------------------------|--------|------------------------|--------|--------|-----------------------|--------|
| Finished      goods         |   | $                      | 8,395  |   |                  | $      | 7,813 |   |
| Work-in-process             |   |                   | 17,151 |   |                  |   | 16,246 |   |
| Raw      materials          |   |                   | 34,906 |   |                  |   | 46,808 |   |
| Total      inventories, net |   | $                      | 60,452 |   |                  | $      | 70,867 |   |

| ($      in thousands)                                                                                                                                                              |   | September      27,2009 |    |   | December      31,2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
| Revolving      credit agreement, weighted-average interest rate of 1.2%, and 4.2% due in      2011                                                                                 |   | $                      | 49,500  |   |                  | $      | 48,000 |   |
| Convertible,      senior subordinated debentures at an effective interest rate of 7.0% and a      coupon      rate of 2.1%, due in 2024,         net of discount of $512 |   |                   | — |   |                  |   | 31,988 |   |
| Total      long-term debt                                                                                                                                                          |   | $                      | 49,500  |   |                  | $      | 79,988 |   |

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|                                  |   | Three      months endedSeptember      28, 2008 |   |    |             |   |   | Nine      months endedSeptember      28, 2008 |   |   |                        |   |
|---------------------------------------|--------|------------------------------------------------|--------|---------|------------------|--------|--------|-----------------------------------------------|--------|--------|-----------------------------|--------|
| ($      in thousands)                 |   | As      originally reported                    |   |    | As      adjusted |   |   | Effect      of change in accounting principle |   |   | As      originally reported |   |   | As      adjusted |   |   | Effect      of change in accounting principle |   |
| Interest      expense                 |   | $                                              | 931    |    |             | $      | 1,591  |                                          |   | $      | 660                         |   |   | $ | 3,048 |   |   | $ | 4,976 |   |   | $ | 1,928 |   |
| Tax      (benefit)/expense            |   | $                                              | (3,648 | )  |             | $      | (3,912 | )                                        |   | $      | (264                        | )      |   | $ | 1,040 |   |   | $ | 266 |   |   | $ | (774 | ) |
| Net      Earnings                     |   | $                                              | 7,611  |    |             | $      | 7,215  |                                          |   | $      | (396                        | )      |   | $ | 24,234 |   |   | $ | 23,080 |   |   | $ | (1,154 | ) |
| Earnings      per share-basic         |   | $                                              | 0.23   |    |             | $      | 0.21   |                                          |   | $      | (0.02                       | )      |   | $ | 0.72 |   |   | $ | 0.68 |   |   | $ | (0.04 | ) |
| Earnings      per share-fully diluted |   | $                                              | 0.21   |    |             | $      | 0.21   |                                          |   | $      | —                     |   |   | $ | 0.65 |   |   | $ | 0.65 |   |   | $ | — |   |

|                                          |   | Three Months      Ended |   |   | Nine Months      Ended  |   |
|-----------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
| ($ in      thousands)                         |   | September 27,      2009 |   |   | September 28,      2008 |   |   | September 27,      2009 |   |   | September 28,      2008 |   |
| PENSION      PLANS                            |   |                    |   |   |                    |   |   |   |   |   |   |   |
| Service      cost                             |   | $                       | 788    |   |                    | $      | 887 |   |   | $ | 2,346 |   |   | $ | 2,661 |   |
| Interest      cost                            |   |                    | 3,396  |   |                    |   | 3,230 |   |   |   | 10,268 |   |   |   | 9,825 |   |
| Expected      return on plan assets (1)  |   |                    | (6,108 | )      |                    |   | (6,592 | ) |   |   | (18,305 | ) |   |   | (19,785 | ) |
| Amortization      of prior service cost       |   |                    | 126    |   |                    |   | 135 |   |   |   | 378 |   |   |   | 404 |   |
| Amortization      of loss                     |   |                    | 1,198  |   |                    |   | 420 |   |   |   | 3,640 |   |   |   | 1,279 |   |
| Net      pension income                       |   | $                       | (600   | )      |                    | $      | (1,920 | ) |   | $ | (1,673 | ) |   | $ | (5,616 | ) |

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|                                   |   | Three Months      Ended |   |   | Nine Months      Ended  |   |
|----------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
| ($ in      thousands)                  |   | September 27,      2009 |   |   | September 28,      2008 |   |   | September 27,      2009 |   |   | September 28,      2008 |   |
| OTHER      POSTRETIREMENT BENEFIT PLAN |   |                    |   |   |                    |   |   |   |   |   |   |   |
| Service      cost                      |   | $                       | 3      |   |                    | $      | 5 |   |   | $ | 8 |   |   | $ | 15 |   |
| Interest      cost                     |   |                    | 78     |   |                    |   | 92 |   |   |   | 235 |   |   |   | 276 |   |
| Amortization      of gain              |   |                    | (25    | )      |                    |   | — |   |   |   | (76 | ) |   |   | — |   |
| Net      postretirement expense        |   | $                       | 56     |   |                    | $      | 97 |   |   | $ | 167 |   |   | $ | 291 |   |

| ($      in thousands)                |   | EMS     |    |   | Components      and Sensors |    |    | Total  |   |
|--------------------------------------|--------|---------|---------|--------|-----------------------------|---------|---------|--------|--------|
| Third      Quarter of 2009           |   |    |    |   |                        |    |    |   |   |
| Net      sales to external customers |   | $       | 70,737  |   |                        | $       | 55,828  |   |   | $ | 126,565 |   |
| Segment      operating earnings      |   |  $ | 2,214   |   |                        |  $ | 4,069   |   |   |  $ | 6,283 |   |
| Total      assets                    |   |  $ | 122,937 |   |                        |  $ | 283,743 |   |   |  $ | 406,680 |   |
|                                 |   |    |    |   |                        |    |    |   |   |   |   |   |
| Third      Quarter of 2008           |   |    |    |   |                        |    |    |   |   |   |   |   |
| Net      sales to external customers |   | $       | 97,510  |   |                        | $       | 72,524  |   |   | $ | 170,034 |   |
| Segment      operating earnings      |   |  $ | 2,657   |   |                        |  $ | 5,709   |   |   | $ | 8,366 |   |
| Total      assets                    |   |  $ | 195,143 |   |                        |  $ | 386,132 |   |   |  $ | 581,275 |   |
|                                 |   |    |    |   |                        |    |    |   |   |   |   |   |
| First      Nine Months of 2009       |   |    |    |   |                        |    |    |   |   |   |   |   |
| Net      sales to external customers |   | $       | 217,366 |   |                        | $       | 147,728 |   |   | $ | 365,094 |   |
| Segment      operating earnings      |   |  $ | 6,559   |   |                        |  $ | 2,749   |   |   |  $ | 9,308 |   |
| Total      assets                    |   |  $ | 122,937 |   |                        |  $ | 283,743 |   |   |  $ | 406,680 |   |
|                                 |   |    |    |   |                        |    |    |   |   |   |   |   |
| First      Nine Months of 2008       |   |    |    |   |                        |    |    |   |   |   |   |   |
| Net      sales to external customers |   | $       | 294,474 |   |                        | $       | 234,406 |   |   | $ | 528,880 |   |
| Segment      operating earnings      |   |  $ | 8,371   |   |                        |  $ | 22,696  |   |   |  $ | 31,067 |   |
| Total      assets                    |   |  $ | 195,143 |   |                        |  $ | 386,132 |   |   |  $ | 581,275 |   |

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|                                     |   | Three      Months Ended |    |   | Nine      Months Ended  |   |
|------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
| ($      in thousands)                    |   | September      27 2009  |    |   | September      28, 2008 |   |   | September      27 2009 |   |   | September      28, 2008 |   |
| Total      segment operating earnings    |   | $                       | 6,283   |   |                    | $      | 8,366 |   |   | $ | 9,308 |   |   | $ | 31,067 |   |
| Restructuring      and related charges   |   |                    | — |   |                    |   | (3,481 | ) |   |   | (2,243 | ) |   |   | (4,017 | ) |
| Goodwill      impairment                 |   |                    | — |   |                    |   | — |   |   |   | (33,153 | ) |   |   | — |   |
| Interest      expense                    |   |                    | (256    | )      |                    |   | (1,591 | ) |   |   | (1,615 | ) |   |   | (4,976 | ) |
| Interest      income                     |   |                    | 17      |   |                    |   | 316 |   |   |   | 118 |   |   |   | 1,174 |   |
| Other      (expense)/income              |   |                    | (390    | )      |                    |   | (307 | ) |   |   | (736 | ) |   |   | 98 |   |
| Earnings/(loss)      before income taxes |   | $                       | 5,654   |   |                    | $      | 3,303 |   |   | $ | (28,321 | ) |   | $ | 23,346 |   |

| ($ in      millions)                                                             November      2007 Plan |   | PlannedCosts |   |   | Actual incurred      throughDecember      31, 2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|----------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |   |   |                                               |   |
| Workforce      reduction                                                                                                                                                                                                                                                                                                                                                                                                  |   | $            | 1.7    |   |                                               | $      | 1.5 |   |
| Asset      impairments                                                                                                                                                                                                                                                                                                                                                                                                    |   |         | 0.9    |   |                                               |   | 1.2 |   |
| Restructuring      charge                                                                                                                                                                                                                                                                                                                                                                                                 |   |         | 2.6    |   |                                               |   | 2.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |   |   |                                               |   |   |   |
| Equipment      relocation                                                                                                                                                                                                                                                                                                                                                                                                 |   |         | 0.2    |   |                                               |   | 0.1 |   |
| Other      costs                                                                                                                                                                                                                                                                                                                                                                                                          |   |         | 0.2    |   |                                               |   | 0.4 |   |
| Restructuring-related      costs                                                                                                                                                                                                                                                                                                                                                                                          |   |         | 0.4    |   |                                               |   | 0.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |   |   |                                               |   |   |   |
| Total      restructuring and restructuring-related costs                                                                                                                                                                                                                                                                                                                                                                  |   | $            | 3.0    |   |                                               | $      | 3.2 |   |

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| ($ in      millions)                                                   September      2008 Plan |   | PlannedCosts |   |   | Actual      incurredthroughDecember      31, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |                                              |   |
| Workforce      reduction                                                                                                                                                                                                                                                                                                                                       |   | $            | 2.4    |   |                                              | $      | 3.9 |   |
| Asset      impairments                                                                                                                                                                                                                                                                                                                                         |   |         | 1.1    |   |                                              |   | 1.2 |   |
| Other      charges                                                                                                                                                                                                                                                                                                                                             |   |         | 0.2    |   |                                              |   | 0.1 |   |
| Restructuring      charge                                                                                                                                                                                                                                                                                                                                      |   |         | 3.7    |   |                                              |   | 5.2 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |                                              |   |   |   |
| Equipment      and employee relocation                                                                                                                                                                                                                                                                                                                         |   |         | 0.2    |   |                                              |   | 0.1 |   |
| Other      costs                                                                                                                                                                                                                                                                                                                                               |   |         | 0.5    |   |                                              |   | 0.2 |   |
| Restructuring-related      costs                                                                                                                                                                                                                                                                                                                               |   |         | 0.7    |   |                                              |   | 0.3 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |                                              |   |   |   |
| Total      restructuring and restructuring-related costs                                                                                                                                                                                                                                                                                                       |   | $            | 4.4    |   |                                              | $      | 5.5 |   |

|  ($ in      millions)                                                                   September      2008 Plan |   |   |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| Restructuring      liability at January 1, 2009                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 1.7     |   |
| Restructuring      and restructuring-related charges, excluding asset impairments and      write-offs                                                                                                                                                                                                                                                                                                                                                                |   |   | — |   |
| Cost      paid                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (1.7    | ) |
| Restructuring      liability at September 27, 2009                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | — |   |

| ($ in      millions)                                                                        March 2009 Plan |   | PlannedCosts |    |   | Actual      incurred throughJune      28, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|------------------------------------------------|--------|
| Workforce      reduction                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $            | 1.9     |   |                                           | $      | 2.1 |   |
| Asset      impairments                                                                                                                                                                                                                                                                                                                                                                                                                                |   |         | — |   |                                           |   | 0.1 |   |
| Total      restructuring and impairment charge                                                                                                                                                                                                                                                                                                                                                                                                        |   | $            | 1.9     |   |                                           | $      | 2.2 |   |

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| ($ in      millions)                                                                    March      2009 Plan |   |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| Restructuring      liability at January 1, 2009                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $      | — |   |
| Restructuring      and restructuring-related charges, excluding asset impairments and      write-offs                                                                                                                                                                                                                                                                                                                                                            |   |   | 2.1     |   |
| Cost      paid                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (2.1    | ) |
| Restructuring      liability at September 27, 2009                                                                                                                                                                                                                                                                                                                                                                                                               |   | $      | 0.0     |   |

|                                            |   | EMS    |    |   | Components      & Sensors |   |    | Total      CTS |   |
|-------------------------------------------------|--------|--------|---------|--------|-------------------------------|--------|---------|----------------|--------|
| Balance      at January 1, 2008                 |   | $      | 24,144  |   |                          | $      | 513     |           |   | $ | 24,657 |   |
|                                            |   |   |    |   |                          |   |    |           |   |   |   |   |
| Tusonix      acquisition                        |   |   | — |   |                          |   | 1,857   |           |   |   | 1,857 |   |
| Orion      acquisition                          |   |   | 6,636   |   |                          |   | — |           |   |   | 6,636 |   |
|                                            |   |   |    |   |                          |   |    |           |   |   |   |   |
| Balance      at December 31, 2008               |   |   | 30,780  |   |                          |   | 2,370   |           |   |   | 33,150 |   |
|                                            |   |   |    |   |                          |   |    |           |   |   |   |   |
| Purchase      accounting adjustment             |   |   | — |   |                          |   | 3       |           |   |   | 3 |   |
| Impairment      loss – first quarter 2009 |   |   | (30,780 | )      |                          |   | (2,373  | )              |   |   | (33,153 | ) |
|                                            |   |   |    |   |                          |   |    |           |   |   |   |   |
| Balance      at September 27, 2009              |   | $      | — |   |                          | $      | — |           |   | $ | — |   |

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| (in      thousands $)                       |   |                               |    |   |                                                         |   |    |                                                   |   |   |                                               |   |   | Total      Loss                                |    |
|---------------------------------------------|--------|------------------------------------|---------|--------|--------------------------------------------------------------|--------|---------|--------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|---------|
| Description                                 |   | Balance      at September 27, 2009 |    |   | Quoted      prices in active markets for identical (Level 1) |   |    | Significant      Other Observable Inputs(Level      2) |   |   | Significant      Unobservable Inputs(Level      3) |   |   | Three      Months endedSeptember      27, 2009 |    |   | Nine      months endedSeptember      27, 2009 |   |
| Goodwill                                    |   | $                                  | — |   |                                                         | $      | — |                                                   |   | $      | —                                            |   |   | $                                              | — |   |   | $ | — |   |   | $ | 33,153 |   |
| Intangible      assets, other than goodwill |   |                               | 34,577  |   |                                                         |   | — |                                                   |   |   | —                                            |   |   |                                           | 34,577  |   |   |   | — |   |   |   | — |   |
| Long-lived      assets                      |   |                               | 83,395  |   |                                                         |   | — |                                                   |   |   | —                                            |   |   |                                           | 83,395  |   |   |   | 155 |   |   |   | 297 |   |
|                                        |   |                               |    |   |                                                         |   |    |                                                   |   |   |                                               |   |   |                                           |    |   |   | $ | 155 |   |   | $ | 33,450 |   |

| ($      in thousands, except per share amounts)  |   | Net      Earnings(Numerator) |    |    | Shares(in      thousands) (Denominator) |   |    | Per      Share Amount |   |
|--------------------------------------------------|--------|------------------------------|---------|---------|-----------------------------------------|--------|---------|-----------------------|--------|
| Third      Quarter 2009                          |   |                         |    |    |                                    |   |    |                  |   |
| Basic      EPS                                   |   | $                            | 4,481   |    |                                    |   | 33,873  |                  |   | $ | 0.13 |   |
| Effect      of dilutive securities:              |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
|   Convertible      debt                |   |                         | — |    |                                    |   | — |                  |   |   |   |   |
|   Equity-based      compensation plans |   |                         | — |    |                                    |   | 640     |                  |   |   |   |   |
| Diluted      EPS                                 |   |  $                      | 4,481   |    |                                    |   | 34,513  |                  |   | $ | 0.13 |   |
|                                             |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
| Third      Quarter 2008                          |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
| Basic      EPS                                   |   | $                            | 7,215   |    |                                    |   | 33,708  |                  |   | $ | 0.21 |   |
| Effect      of dilutive securities:              |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
|   Convertible      debt                |   |                         | 665     |    |                                    |   | 4,000   |                  |   |   |   |   |
|   Equity-based      compensation plans |   |                         | — |    |                                    |   | 491     |                  |   |   |   |   |
| Diluted      EPS                                 |   | $                            | 7,880   |    |                                    |   | 38,199  |                  |   | $ | 0.21 |   |
|                                             |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
| First      Nine Months of 2009                   |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
| Basic      EPS                                   |   | $                            | (38,193 | )  |                                    |   | 33,799  |                  |   | $ | (1.13 | )  |
| Effect      of dilutive securities:              |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
|   Convertible      debt                |   |                         | — |    |                                    |   | — |                  |   |   |   |   |
|   Equity-based      compensation plans |   |                         | — |    |                                    |   | — |                  |   |   |   |   |
| Diluted      EPS                                 |   |  $                      | (38,193 | )  |                                    |   | 33,799  |                  |   | $ | (1.13 | )  |
|                                             |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
| First      Nine Months of 2008                   |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
| Basic      EPS                                   |   | $                            | 23,080  |    |                                    |   | 33,735  |                  |   | $ | 0.68 |   |
| Effect      of dilutive securities:              |   |                         |    |    |                                    |   |    |                  |   |   |   |   |
|   Convertible      debt                |   |                         | 1,876   |    |                                    |   | 4,000   |                  |   |   |   |   |
|   Equity-based      compensation plans |   |                         | — |    |                                    |   | 471     |                  |   |   |   |   |
| Diluted      EPS                                 |   | $                            | 24,956  |    |                                    |   | 38,206  |                  |   | $ | 0.65 |   |

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|                                                                                |   | Three      Months Ended |    | Nine      Months Ended  |   |
|-------------------------------------------------------------------------------------|--------|-------------------------|---------|-------------------------|--------|
| (Number      of Shares in Thousands)                                                |   | September      27, 2009 |    | September      28, 2008 |   | September      27, 2009 |   | September      28, 2008 |   |
| Stock      options where the assumed proceeds exceeds the average      market price |   |                    | 919     |                    |   | 523 |   |   | 1,134 |   |   | 648 |   |
| Restricted      stock units                                                         |   |                    | — |                    |   | — |   |   | 582 |   |   | — |   |
| Securities      related to the subordinated convertible debt                        |   |                    | — |                    |   | — |   |   | 984 |   |   | — |   |

|                                            |   | September      27, 2009    |    |   | December      31, 2008        |   |
|-------------------------------------------------|--------|----------------------------|---------|--------|-------------------------------|--------|
| ($      in thousands)                           |   | Gross      Carrying Amount |    |   | Accumulated      Amortization |   |   | Gross      Carrying Amount |   |   | Accumulated      Amortization |   |
| Amortized      intangible assets:               |   |                       |    |   |                          |   |   |   |   |   |   |   |
| Customer      lists/relationships               |   | $                          | 51,084  |   |                          | $      | (16,916 | ) |   | $ | 51,084 |   |   | $ | (15,038 | ) |
| Patents                                         |   |                       | 10,319  |   |                          |   | (10,319 | ) |   |   | 10,319 |   |   |   | (9,886 | ) |
| Other      intangibles                          |   |                       | 500     |   |                          |   | (91 | ) |   |   | 500 |   |   |   | (52 | ) |
| Total                                           |   |                       | 61,903  |   |                          |   | (27,326 | ) |   |   | 61,903 |   |   |   | (24,976 | ) |
| Goodwill                                        |   |                       | — |   |                          |   | — |   |   |   | 33,150 |   |   |   | — |   |
| Total      other intangible assets and goodwill |   | $                          | 61,903  |   |                          | $      | (27,326 | ) |   | $ | 95,053 |   |   | $ | (24,976 | ) |

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Item 2.     Management’s Discussion andAnalysis of Financial Condition and Results of Operations(“MD&A”)

| ·   | Total      sales in the third quarter 2009 of $126.6 million were reported through      two segments, EMS and Components and Sensors.  Sales decreased      by $43.5 million, or 25.6%, in the third quarter of 2009 from the third      quarter of 2008.  Sales in the Components and Sensors segment      decreased by 23.0% versus the third quarter of 2008, while sales in the      EMS segment decreased by 27.5% compared to the third quarter of      2008.  Sequentially, third quarter 2009 sales increased by $6.1      million, or 5.1% compared to the second quarter  2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross      margins, as a percent of sales, were 20.7% and 19.6% in the third quarters      of 2009 and 2008, respectively.  Sales in the Components and      Sensors segment, which inherently generates a higher gross margin,      increased to 44.1% of total company sales in the third quarter of 2009      compared to 42.7% of total sales in the same period of    2008. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Selling,      general and administrative (“SG&A”) and research and development      (“R&D”) expenses were $19.9 million in the third quarter of 2009      compared to $25.3 million in the third quarter of 2008.  This      significant reduction reflects our proactive management of costs,      including the benefits of previously announced restructuring actions and      aggressive cost-cutting measurescompanywide. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Interest      and other expense in 2009 was $0.6 million versus $1.6 million in the same      quarter 2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | The      income tax expense and rate for the third quarter of 2009 were $1.2      million and 20.8%, respectively. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | Net      income was $4.5 million, or $0.13 per diluted share, in the third quarter      of 2009.  This compares with net income of $7.2 million, or      $0.21 per diluted share, in the third quarter of 2008, which included a      net benefit of $0.05 per share from a tax credit offset by restructuring      and related charges. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Total      debt as a percentage of total capitalization, which is the sum of total      debt and shareholders’ equity, improved to 17.0% at the end of the third      quarter of 2009, compared with 22.4% at the end of  2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Working      capital decreased $19.4 million in the third quarter of 2009 versus      year-end 2008. |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Net      cash provided by operating activities was $34.1 million during the first      nine months of 2009, compared to $20.1 million during the first nine      months of 2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Inventory      valuation, the allowance for doubtful accounts, and other accrued      liabilities |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | Long-lived      and intangible assets valuation, and depreciation/amortization      periods |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Income      taxes |
|--------------------|-------------------|

| ·   | Retirement      plans |
|--------------------|-----------------------|

| ·   | Equity-based      compensation |
|--------------------|--------------------------------|

| ($      in thousands)           |   | Components      & Sensors |   |    | EMS    |    |   | ConsolidatedTotal |   |
|---------------------------------|--------|-------------------------------|--------|---------|--------|---------|--------|-------------------|--------|
| Third      quarter 2009         |   |                          |   |    |   |    |   |              |   |
| Sales                           |   | $                             | 55,828 |    |   | $       | 70,737 |              |   | $ | 126,565 |   |
| Segment      operating earnings |   | $                        | 4,069  |    |   | $  | 2,214  |              |   | $  | 6,283 |   |
| %      of sales                 |   |                          | 7.3    | %  |   |    | 3.1    | %            |   |   | 5.0 | %  |
|                            |   |                          |   |    |   |    |   |              |   |   |   |   |
| Third      quarter 2008         |   |                          |   |    |   |    |   |              |   |   |   |   |
| Sales                           |   | $                             | 72,524 |    |   | $       | 97,510 |              |   | $ | 170,034 |   |
| Segment      operating earnings |   | $                        | 5,709  |    |   | $  | 2,657  |              |   | $  | 8,366 |   |
| %      of sales                 |   |                          | 7.9    | %       |   |    | 2.7    | %            |   |   | 4.9 | %  |

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|                                                       |   | Three      months ended |    |   |                    |    |
|------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|---------|
|  ($      in thousands, except net earnings per share) |   | September      27, 2009 |    |   | September      28, 2008 |    |   | Increase(Decrease) |   |
| Net      sales                                             |   | $                       | 126,565 |   |                    | $       | 170,034 |   |   | $ | (43,469 | )  |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Gross      margin                                          |   | $                  | 26,185  |   |                    | $  | 33,350 |   |   | $  | (7,165 | ) |
| %      of net sales                                        |   |                    | 20.7    | %      |                    |    | 19.6 | % |   |   | 1.1 | % |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Selling,      general and administrative expenses          |   | $                  | 16,494  |   |                    | $  | 20,754 |   |   | $  | (4,260 | )  |
| %      of net sales                                        |   |                    | 13.0    | %      |                    |    | 12.2 | % |   |   | 0.8 | % |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Research      and development expenses                     |   | $                       | 3,408   |   |                    | $  | 4,509 |   |   | $  | (1,101 | ) |
| %      of net sales                                        |   |                    | 2.7     | %      |                    |    | 2.7 | % |   |   | — | % |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Restructuring      charge                                  |   | $                       | — |   |                    | $       | 3,202 |   |   | $ | (3,202 | ) |
| %      of net sales                                        |   |                    | — | %      |                    |    | 1.9 | % |   |   | (1.9 | )% |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Operating      earnings                                    |   | $                       | 6,283   |   |                    | $  | 4,885 |   |   | $  | 1,398 |   |
| %      of net sales                                        |   |                    | 5.0     | %      |                    |    | 2.9 | % |   |   | 2.1 | % |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Income      tax expense / (benefit)                        |   | $                  | 1,173   |   |                    | $  | (3,912) |   |   | $  | 5,085 |   |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Net      earnings                                          |   | $                       | 4,481   |   |                    | $  | 7,215 |   |   | $  | (2,734 | ) |
| %      of net sales                                        |   |                    | 3.5     | %      |                    |    | 4.2 | % |   |   | (0.7 | )% |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |
| Net      earnings per diluted share                        |   | $                       | 0.13    |   |                    |  $ | 0.21 |   |   | $ | (0.08 | )  |
|                                                       |   |                    |    |   |                    |    |   |   |   |   |   |   |

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| ($      in thousands)           |   | Components      & Sensors |    |    | EMS    |    |    | ConsolidatedTotal |   |
|---------------------------------|--------|-------------------------------|---------|---------|--------|---------|---------|-------------------|--------|
| First      Nine Months 2009     |   |                          |    |    |   |    |    |              |   |
| Sales                           |   | $                             | 147,728 |    |   | $       | 217,366 |              |   | $ | 365,094 |   |
| Segment      operating earnings |   | $                        | 2,749   |    |   | $  | 6,559   |              |   | $  | 9,308 |   |
| %      of sales                 |   |                          | 1.9     | %  |   |    | 3.0     | %            |   |   | 2.5 | %  |
|                            |   |                          |    |    |   |    |    |              |   |   |   |   |
| First      Nine Months 2008     |   |                          |    |    |   |    |    |              |   |   |   |   |
| Sales                           |   | $                             | 234,406 |    |   | $       | 294,474 |              |   | $ | 528,880 |   |
| Segment      operating earnings |   | $                        | 22,696  |    |   | $  | 8,371   |              |   | $  | 31,067 |   |
| %      of sales                 |   |                          | 9.7     | %       |   |    | 2.8     | %            |   |   | 5.9 | %  |

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|                                                       |   | Nine      months ended  |    |    |                    |    |
|------------------------------------------------------------|--------|-------------------------|---------|---------|-------------------------|---------|
|  ($      in thousands, except net earnings per share) |   | September      27, 2009 |    |    | September      28, 2008 |    |   | Increase(Decrease) |   |
| Net      sales                                             |   | $                       | 365,094 |    |                    | $       | 528,880 |   |   | $ | (163,786 | )  |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Gross      margin                                          |   | $                  | 67,892  |    |                    | $  | 107,327 |   |   | $  | (39,435 | ) |
| %      of net sales                                        |   |                    | 18.6    | %       |                    |    | 20.3 | % |   |   | (1.7 | )% |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Selling,      general and administrative expenses          |   | $                  | 48,357  |    |                    | $  | 63,236 |   |   | $  | (14,879 | )  |
| %      of net sales                                        |   |                    | 13.2    | %       |                    |    | 12.0 | % |   |   | 1.2 | % |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Research      and development expenses                     |   | $                  | 10,227  |    |                    | $  | 13,576 |   |   | $  | (3,349 | ) |
| %      of net sales                                        |   |                    | 2.8     | %       |                    |    | 2.6 | % |   |   | 0.2 | % |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Restructuring      charge                                  |   | $                  | 2,243   |    |                    | $  | 3,465 |   |   | $  | (1,222 | )  |
| %      of net sales                                        |   |                    | 0.6     | %       |                    |    | 0.7 | % |   |   | (0.1 | )% |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Goodwill      impairment                                   |   | $                  | 33,153  |    |                    | $  | — |   |   | $  | 33,153 |   |
| %      of net sales                                        |   |                    | 9.1     | %       |                    |    | — | % |   |   | 9.1 | % |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Operating      (loss)/earnings                             |   | $                  | (26,088 | )  |                    | $  | 27,050 |   |   | $  | (53,138 | ) |
| %      of net sales                                        |   |                    | (7.1    | )%      |                    |    | 5.1 | % |   |   | (12.2 | )% |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Income      tax expense                                    |   | $                  | 9,872   |    |                    | $  | 266 |   |   | $  | 9,606 |   |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Net      (loss)/earnings                                   |   | $                  | (38,193 | )  |                    | $  | 23,080 |   |   | $  | (61,273 | ) |
| %      of net sales                                        |   |                    | (10.5   | )%      |                    |    | 4.4 | % |   |   | (14.9 | )% |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |
| Net      (loss)/earnings per diluted share                 |   | $                       | (1.13   | )  |                    |  $ | 0.65 |   |   | $ | (1.78 | )  |
|                                                       |   |                    |    |    |                    |    |   |   |   |   |   |   |

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|                                                                     |   | Year      Ended December 31, 2009 |                       |
|--------------------------------------------------------------------------|--------|-----------------------------------|----------------------------|
| Projected      full year GAAP (loss) per share                           |   | $                                 | (1.02)      – (0.98) |   |
| Tax      affected adjustments to projected GAAP loss per share:          |   |                              |                       |   |
|    Tax      expense associated with our cash repatriation |   |                              | 0.27                       |   |
|    Restructuring      charge                              |   |                              | 0.05                       |   |
|    Goodwill      impairment                               |   |                              | 0.97                       |   |
| Adjusted      full year projected earnings per share                     |   | $                                 | 0.27      – 0.31     |   |

| ·   | provide      a truer measure of CTS' operatingperformance, |
|--------------------|------------------------------------------------------------|

| ·   | reflect      the results used by management in making decisions about the business,      and |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | help      review and project CTS' performance overtime. |
|--------------------|---------------------------------------------------------|

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Item3.   Quantitative and Qualitative Disclosures About MarketRisk

| Item 4.   Controls and      Procedures |
|-------------------------------------------------------|

PART II  - OTHER INFORMATION

| Item 1.    Legal  Proceedings |
|----------------------------------------------|

Item 1A.  Risk Factors

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Item 6.   Exhibits

| 10(a)   |   | Executive      Severance Policy.                                                                                                        |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                    |
| (31)(a) |   | Certification      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                          |
|    |   |                                                                                                                                    |
| (31)(b) |   | Certification      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                          |
|    |   |                                                                                                                                    |
| (32)(a) |   | Certification      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.       |
|    |   |                                                                                                                                    |
| (32)(b) |   | Certification      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.  |

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SIGNATURES

| CTS      Corporation                                                         |   | CTS      Corporation                                                        |   |
|------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                                         |   |                                                                        |   |
| /s/      Richard G. Cutter III                                               |   | /s/      Donna L. Belusar                                                   |   |
| Richard      G. Cutter IIIVice      President, Secretary and General Counsel |   | Donna      L. BelusarSenior      Vice President and Chief Financial Officer |   |
|                                                                         |   |                                                                        |   |
| Dated:      October 28, 2009                                                 |   |  Dated:      October 28, 2009                                          |   |

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