----

----

| 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 (Loss) Earnings                                                                                                                         | 3                                                                                                |
|         |                 - For the Three Months Ended March 29, 2009 and March 30,    2008                                                                      |                                                                                             |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         |                         Unaudited Condensed      Consolidated Balance Sheets                                   | 4                                                                                                |
|         |                         - As of March 29, 2009 and December 31, 2008                                           |                                                                                             |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         |                         Unaudited Condensed      Consolidated Statements of Cash Flows                         | 5                                                                                                |
|         |                         - For the Three Months Ended March 29, 2009 and March 30,      2008                         |                                                                                             |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         |                         Unaudited Condensed      Consolidated Statements of Comprehensive (Loss)      Earnings | 6                                                                                                |
|         |                     - For the Three Months Ended March 29, 2009 and  March 30,      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                                  | 26     |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         | Item      4.                                                                                                                                                                                             | Controls and      Procedures                                                                     | 26     |
|         |                                                                                                                                                                                                     |                                                                                             |   |
| PARTII.      | OTHER INFORMATION                                                                                                                                                                                        |                                                                                             |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         | Item      1.                                                                                                                                                                                             | Legal      Proceedings                                                                           | 26     |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         | Item      1A.                                                                                                                                                                                            | Risk      Factors                                                                                | 27     |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         | Item      2.                                                                                                                                                                                             | Unregistered Sales of Equity      Securities and Use of Proceeds                                 | 27     |
|         |                                                                                                                                                                                                     |                                                                                             |   |
|         | Item      6.                                                                                                                                                                                             | Exhibits                                                                                         | 27     |
|         |                                                                                                                                                                                                     |                                                                                             |   |
| SIGNATURES   |                                                                                                                                                                                                     | 28                                                                                               |

----

Table of Contents

PART I

FINANCIALINFORMATION

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

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS -UNAUDITED

|                                               |   | Three      Months Ended |    |
|----------------------------------------------------|--------|-------------------------|---------|
|                                               |   | March      29,2009      |    |   | March 30, 2008* |   |
|                                               |   |                    |    |   |   |   |
| Net      sales                                     |   | $                       | 118,131 |   |   | $ | 172,755 |   |
| Costs      and expenses:                           |   |                    |    |   |   |   |   |   |
| Cost      of goods sold                            |   |                    | 98,302  |   |   |   | 138,931 |   |
| Selling,      general, and administrative expenses |   |                    | 16,620  |   |   |   | 20,976 |   |
| Research      and development expenses             |   |                    | 3,353   |   |   |   | 4,317 |   |
| Restructuring      charge – Note I           |   |                    | 2,243   |   |   |   | 150 |   |
| Goodwill      impairment – Note J            |   |                    | 33,153  |   |   |   | — |   |
| Operating      (loss)/earnings                     |   |                    | (35,540 | ) |   |   | 8,381 |   |
| Other      (expense)/income:                       |   |                    |    |   |   |   |   |   |
| Interest      expense – Note E               |   |                    | (888    | ) |   |   | (1,678 | )  |
| Interest      income                               |   |                    | 70      |   |   |   | 478 |   |
| Other                                              |   |                    | (321    | ) |   |   | 747 |   |
| Total      other expense                           |   |                    | (1,139  | ) |   |   | (453 | )  |
|                                               |   |                    |    |   |   |   |   |   |
| (Loss)/earnings before      income taxes      |   |                    | (36,679 | ) |   |   | 7,928 |   |
| Income      tax (benefit)/expense                  |   |                    | (1,030  | ) |   |   | 1,631 |   |
| Net      (loss)/earnings                           |   | $                       | (35,649 | ) |   | $ | 6,297 |   |
|                                               |   |                    |    |   |   |   |   |   |
| Net      (loss)/earnings per share - Note K   |   |                    |    |   |   |   |   |   |
| Basic                                              |   | $                       | (1.06   | ) |   | $ | 0.19 |   |
|                                               |   |                    |    |   |   |   |   |   |
| Diluted                                            |   | $                       | (1.06   | ) |   | $ | 0.18 |   |
|                                               |   |                    |    |   |   |   |   |   |
| Cash      dividends declared per share             |   | $                       | 0.03    |   |   | $ | 0.03 |   |
|                                               |   |                    |    |   |   |   |   |   |
| Average      common shares outstanding:            |   |                    |    |   |   |   |   |   |
| Basic                                              |   |                    | 33,744  |   |   |   | 33,845 |   |
| Diluted                                            |   |                    | 33,744  |   |   |   | 38,335 |   |

----

Table of Contents

CTS CORPORATION ANDSUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                           |   | March      29,2009 |    |   | December      31, 2008* |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------------|--------|
| ASSETS                                                                                                         |   |               |    |   |                    |   |
| Current      Assets                                                                                            |   |               |    |   |                    |   |
|   Cash      and cash equivalents                                                                     |   | $                  | 44,622  |   |                    | $      | 44,628 |   |
|   Accounts      receivable, less allowances (2009 - $2,327; 2008 - $2,165)                           |   |               | 76,661  |   |                    |   | 94,175 |   |
|   Inventories,      net – Note      D                                                |   |               | 70,218  |   |                    |   | 70,867 |   |
|   Other      current assets                                                                          |   |               | 17,285  |   |                    |   | 16,172 |   |
|      Total      current assets                                                        |   |               | 208,786 |   |                    |   | 225,842 |   |
| Property,      plant and equipment, less accumulated depreciation (2009 - $258,209;      2008 - $257,850) |   |               | 87,728  |   |                    |   | 90,756 |   |
| Other      Assets                                                                                              |   |               |    |   |                    |   |   |   |
|   Prepaid      pension asset                                                                         |   |               | 20,707  |   |                    |   | 18,756 |   |
|   Goodwill      – Note J                                                                       |   |               | — |   |                    |   | 33,150 |   |
|   Other      intangible assets – Note J                                                        |   |               | 36,020  |   |                    |   | 36,927 |   |
|   Deferred      income taxes                                                                         |   |               | 81,528  |   |                    |   | 82,101 |   |
|   Other                                                                                              |   |               | 891     |   |                    |   | 910 |   |
|      Total      other assets                                                          |   |               | 139,146 |   |                    |   | 171,844 |   |
| Total      Assets                                                                                              |   | $                  | 435,660 |   |                    | $      | 488,442 |   |

| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                               |   |   |     |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Current      Liabilities                                                                                                                                                                                                                                                                                                                                                                                      |   |   |     |   |   |   |
|   Notes      payable                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 197      |   |   | $      | — |   |
|   Accounts      payable                                                                                                                                                                                                                                                                                                                                                                             |   |   | 53,428   |   |   |   | 71,285 |   |
|   Accrued      liabilities                                                                                                                                                                                                                                                                                                                                                                          |   |   | 36,402   |   |   |   | 41,956 |   |
|      Total      current liabilities                                                                                                                                                                                                                                                                                                                                                  |   |   | 90,027   |   |   |   | 113,241 |   |
| Long-term      debt  – Note      E                                                                                                                                                                                                                                                                                                                                                            |   |   | 85,864   |   |   |   | 79,988 |   |
| Other      long-term obligations                                                                                                                                                                                                                                                                                                                                                                              |   |   | 17,201   |   |   |   | 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; 54,068,522 shares      issued at      March 29, 2009 and           54,031,844 shares      issued at      December 31, 2008                                                                                                                                                                           |   |   | 280,505  |   |   |   | 280,266 |   |
|   Additional      contributed capital                                                                                                                                                                                                                                                                                                                                                               |   |   | 37,823   |   |   |   | 37,148 |   |
|   Retained      earnings                                                                                                                                                                                                                                                                                                                                                                            |   |   | 319,033  |   |   |   | 355,694 |   |
|   Accumulated      other comprehensive loss                                                                                                                                                                                                                                                                                                                                                         |   |   | (97,784  | )      |   |   | (98,626 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 539,577  |   |   |   | 574,482 |   |
| Cost      of common stock held in treasury (2009 and 2008 – 20,320,759      shares)                                                                                                                                                                                                                                                                                                                     |   |   | (297,009 | )      |   |   | (297,009 | ) |
|    Total      shareholders’ equity                                                                                                                                                                                                                                                                                                                                                       |   |   | 242,568  |   |   |   | 277,473 |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                         |   | $      | 435,660  |   |   | $      | 488,442 |   |
|  *The Balance Sheet at      December 31, 2008 was adjusted from the previously filed 10-K to comply      with the provisions of FASB Staff Position No. APB 14-1,“Accounting for      Convertible Debt Instruments That May Be Settled in Cash upon Conversion      (Including Partial Cash Settlement)”. See      notes to unaudited condensed consolidated financial      statements. |   |   |     |   |   |   |   |   |

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Table of Contents

CTS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS -UNAUDITED

|                                                                                                         |   | Three      Months Ended |     |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
|                                                                                                         |   | March      29,2009      |     |   | March      30,2008* |   |
| Cash      flows from operating activities:                                                                   |   |                    |     |   |   |   |
| Net      (loss)/earnings                                                                                     |   | $                       | (35,649  | ) |   | $ | 6,297 |   |
| Adjustments      to reconcile net (loss)/earnings to net cash used in operating      activities:             |   |                    |     |   |   |   |   |   |
|        Depreciation      and amortization                                 |   |                    | 5,265    |   |   |   | 6,039 |   |
| Prepaid      pension asset – Note F                                                                    |   |                    | (1,951   | ) |   |   | (2,420 | ) |
|        Equity-based      compensation – Note B                      |   |                    | 943      |   |   |   | 872 |   |
|        Restructuring      and impairment charges – Note I           |   |                    | 2,243    |   |   |   | 55 |   |
|        Goodwill      impairment – Note J                            |   |                    | 33,153   |   |   |   | — |   |
|        (Gain)/loss      on sales of assets                                |   |                    | (47      | ) |   |   | 2 |   |
|        Amortization      of retirement benefit adjustments – Note F |   |                    | 1,322    |   |   |   | 540 |   |
|        Changes      in assets and liabilities, net of acquisitions        |   |                    |     |   |   |   |   |   |
|       Accounts      receivable                                                 |   |                    | 17,326   |   |   |   | (3,537 | ) |
|       Inventories                                                              |   |                    | 315      |   |   |   | (823 | ) |
|       Other      current assets                                                |   |                    | (1,732   | ) |   |   | (255 | ) |
|       Accounts      payable and accrued liabilities                            |   |                    | (25,157  | ) |   |   | (13,911 | ) |
|       Other                                                                    |   |                    | (33      | ) |   |   | 1,674 |   |
| Total      adjustments                                                                                       |   |                    | 31,647   |   |   |   | (11,764 | ) |
| Net      cash used in operating activities                                                                   |   |                    | (4,002   | ) |   |   | (5,467 | ) |
|                                                                                                         |   |                    |     |   |   |   |   |   |
| Cash      flows from investing activities:                                                                   |   |                    |     |   |   |   |   |   |
| Payments      for acquisitions, net of cash received – Note C                                          |   |                    | —  |   |   |   | (20,606 | ) |
| Capital      expenditures                                                                                    |   |                    | (1,425   | ) |   |   | (3,488 | ) |
| Proceeds      from sales of assets                                                                           |   |                    | 198      |   |   |   | — |   |
| Net      cash used in investing activities                                                                   |   |                    | (1,227   | ) |   |   | (24,094 | ) |
|                                                                                                         |   |                    |     |   |   |   |   |   |
| Cash      flows from financing activities:                                                                   |   |                    |     |   |   |   |   |   |
| Payments      of long-term debt – Note E                                                               |   |                    | (615,800 | ) |   |   | (223,300 | ) |
| Proceeds      from borrowings of long-term debt – Note E                                               |   |                    | 621,300  |   |   |   | 268,000 |   |
| Payments      of short-term notes payable                                                                    |   |                    | (4,672   | ) |   |   | (2,961 | ) |
| Proceeds      from borrowings of short-term notes payable                                                    |   |                    | 4,869    |   |   |   | 1,961 |   |
| Dividends      paid                                                                                          |   |                    | (1,012   | ) |   |   | (1,010 | ) |
| Other                                                                                                        |   |                    | (17      | ) |   |   | (6,814 | ) |
| Net      cash provided by financing activities                                                               |   |                    | 4,668    |   |   |   | 35,876 |   |
|                                                                                                         |   |                    |     |   |   |   |   |   |
| Effect      of exchange rate on cash and cash equivalents                                                    |   |                    | 555      |   |   |   | 164 |   |
| Net      (decrease)/increase in cash and cash equivalents                                                    |   |                    | (6       | ) |   |   | 6,479 |   |
|                                                                                                         |   |                    |     |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year                                                          |   |                    | 44,628   |   |   |   | 52,868 |   |
| Cash      and cash equivalents at end of period                                                              |   | $                       | 44,622   |   |   | $ | 59,347 |   |
|                                                                                                         |   |                    |     |   |   |   |   |   |
| Supplemental      cash flow information                                                                      |   |                    |     |   |   |   |   |   |
| Cash      paid during the period for:                                                                        |   |                    |     |   |   |   |   |   |
| Interest                                                                                                     |   | $                       | 271      |   |   | $ | 528 |   |
| Income      taxes—net                                                                                  |   | $                       | 1,946    |   |   | $ | 255 |   |
|                                                                                                         |   |                    |     |   |   |   |   |   |

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Table of Contents

|                                                                  |   | Three      Months Ended |    |
|-----------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                  |   | March      29, 2009     |    |   | March      30,2008* |   |
| Net      (loss)/earnings                                              |   | $                       | (35,649 | ) |   | $ | 6,297 |   |
| Other      comprehensive earnings:                                    |   |                    |    |   |   |   |   |   |
| Cumulative      translation adjustment                                |   |                    | 28      |   |   |   | 173 |   |
| Amortization of      retirement benefit adjustments (net of tax) |   |                    | 814     |   |   |   | 244 |   |
| Comprehensive      (loss)/earnings                                    |   | $                       | (34,807 | ) |   | $ | 6,714 |   |

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Table of Contents

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -UNAUDITED

| ($      in thousands)       |   | March      29,2009 |    |   | March      30,2008 |   |
|-----------------------------|--------|--------------------|---------|--------|--------------------|--------|
| Stock      options          |   | $                  | 19      |   |               | $      | 49 |   |
| Restricted      stock units |   |               | 924     |   |               |   | 804 |   |
| Restricted      stock       |   |               | — |   |               |   | 20 |   |
| Total                       |   | $                  | 943     |   |               | $      | 873 |   |

|                                    |   | 2004      Plan |      |   | 2001      Plan |   |      | 1996      Plan |   |
|-----------------------------------------|--------|----------------|-----------|--------|----------------|--------|-----------|----------------|--------|
| Awards      originally available        |   |           | 6,500,000 |   |           |   | 2,000,000 |           |   |   | 1,200,000 |   |
| Stock      options outstanding          |   |           | 313,850   |   |           |   | 743,863   |           |   |   | 227,050 |   |
| Restricted      stock units outstanding |   |           | 660,958   |   |           |   | —   |           |   |   | — |   |
| Awards      exercisable                 |   |           | 239,325   |   |           |   | 743,863   |           |   |   | 227,050 |   |
| Awards      available for grant         |   |           | 5,080,431 |   |           |   | —   |           |   |   | — |   |

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Table of Contents

|                                  |   | March      29, 2009 |      |   | March      30, 2008                 |   |
|---------------------------------------|--------|---------------------|-----------|--------|-------------------------------------|--------|
|                                  |   | Options             |      |   | Weighted-AverageExercise      Price |   |   | Options |   |   | Weighted-AverageExercise      Price |   |
| Outstanding      at beginning of year |   |                | 1,294,263 |   |                                | $      | 14.53 |   |   |   | 1,426,638 |   |   | $ | 16.06 |   |
| Granted                               |   |                | —   |   |                                |   | — |   |   |   | — |   |   |   | — |   |
| Exercised                             |   |                | —   |   |                                |   | — |   |   |   | (2,000 | ) |   |   | 8.22 |   |
| Expired                               |   |                | (9,500    | )      |                                |   | 22.38 |   |   |   | (98,250 | ) |   |   | 34.30 |   |
| Forfeited                             |   |                | —   |   |                                |   | — |   |   |   | — |   |   |   | — |   |
| Outstanding      at end of period     |   |                | 1,284,763 |   |                                | $      | 14.47 |   |   |   | 1,326,388 |   |   | $ | 14.72 |   |
| Exercisable      at end of period     |   |                | 1,210,238 |   |                                | $      | 14.59 |   |   |   | 1,173,401 |   |   | $ | 15.05 |   |

|                     | Weighted-averageRemaining      Contractual      Life |   | AggregateIntrinsicValue |    |
|--------------------------|------------------------------------------------------|--------|-------------------------|---------|
| Options      outstanding | 3.7      years                                       |   | $                       | — |   |
| Options      exercisable | 3.5      years                                       |   |                    | — |   |

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Table of Contents

|                                |   | March      29, 2009 |    |   | March      30, 2008                       |   |
|-------------------------------------|--------|---------------------|---------|--------|-------------------------------------------|--------|
|                                |   | Options             |    |   | Weighted-averageGrant-DateFair      Value |   |   | Options |   |   | Weighted-averageGrant-DateFair      Value |   |
| Nonvested      at beginning of year |   |                | 74,525  |   |                                      | $      | 12.54 |   |   |   | 158,587 |   |   | $ | 6.41 |   |
| Granted                             |   |                | — |   |                                      |   | — |   |   |   | — |   |   |   | — |   |
| Vested                              |   |                | — |   |                                      |   | — |   |   |   | (5,600 | ) |   |   | 8.31 |   |
| Forfeited                           |   |                | — |   |                                      |   | — |   |   |   | — |   |   |   | — |   |
| Nonvested      at end of period (1) |   |                | 74,525  |   |                                      | $      | 12.54 |   |   |   | 152,987 |   |   | $ | 6.34 |   |

|          |                     |            | Options      Outstanding |              | Options      Exercisable |
|---------------|--------------------------|-----------------|--------------------------|-------------------|--------------------------|
|          |                     |            |                     |              |                     |   | Weighted      Average |   |   |   |   |   |   |   |   |
| Range      of |                     | Number          |                     | Remaining         |                     | Weighted      Average |   | Number |   | Weighted      Average |
| Exercise      |                     | Outstanding     |                     | Contractual       |                     | Exercise |   | Exercisable |   | Exercise |
| Prices        |                     | at      3/29/09 |                     | Life      (Years) |                     | Price |   | At      3/29/09 |   | Price |
| $             | 7.70      – 11.11  |            |                     | 778,763           |                     |   |   | 4.41 |   |   | $ | 9.44 |   |   |   | 745,738 |   |   | $ | 9.37 |   |
|          | 13.68      – 16.24 |            |                     | 227,800           |                     |   |   | 4.49 |   |   |   | 14.12 |   |   |   | 186,300 |   |   |   | 14.22 |   |
|          | 23.00      – 33.63 |            |                     | 231,950           |                     |   |   | 1.79 |   |   |   | 24.77 |   |   |   | 231,950 |   |   |   | 24.77 |   |
|          | 35.97      – 79.25 |            |                     | 46,250            |                     |   |   | 1.12 |   |   |   | 49.20 |   |   |   | 46,250 |   |   |   | 49.20 |   |

|                                             |   | March      29, 2009 |    |   | March      30, 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                                          |   |                | 6,000   |   |                                      |   | 5.26 |   |   |   | 26,000 |   |   |   | 10.62 |   |
| Converted                                        |   |                | (38,950 | )      |                                      |   | 6.47 |   |   |   | (10,430 | ) |   |   | 10.89 |   |
| Forfeited                                        |   |                | (6,450  | )      |                                      |   | 12.11 |   |   |   | (9,810 | ) |   |   | 12.33 |   |
| Outstanding      at end of period                |   |                | 660,958 |   |                                      | $      | 10.95 |   |   |   | 600,908 |   |   | $ | 12.10 |   |
| Weighted-average      remaining contractual life |   | 5.5      years      |    |   |                                      |   |   |   | 5.0      years |   |   |   |   |   |

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Table of Contents

| ·   | 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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Table of Contents

| ($      in thousands)       |   | March      29,2009 |   |   | December      31,2008 |   |
|-----------------------------|--------|--------------------|--------|--------|-----------------------|--------|
| Finished      goods         |   | $                  | 10,139 |   |                  | $      | 7,813 |   |
| Work-in-process             |   |               | 17,469 |   |                  |   | 16,246 |   |
| Raw      materials          |   |               | 42,610 |   |                  |   | 46,808 |   |
| Total      inventories, net |   | $                  | 70,218 |   |                  | $      | 70,867 |   |

| ($      in thousands)                                                                                                                                                                                 |   | March      29,2009 |   |   | December      31,2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|
| Revolving      credit agreement, weighted-average interest rate of 1.2% (2009), and 4.2%      (2008)      due in 2011                                                                                 |   | $                  | 53,500 |   |                  |   | 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 $136      and $512 |   |               | 32,364 |   |                  |   | 31,988 |   |
| Total      long-term debt                                                                                                                                                                             |   | $                  | 85,864 |   |                  |   | 79,988 |   |

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|                                  |   | Three      months ended March 30, 2008 |   |
|---------------------------------------|--------|----------------------------------------|--------|
| ($      in thousands)                 |   | As      originally reported            |   |   | As      adjusted |   |   | Effect      of change in accounting principle |   |
| Interest      expense                 |   | $                                      | 1,059  |   |   | $ | 1,678 |   |   | $ | 619 |   |
| Tax      expense                      |   |                                   | 1,881  |   |   |   | 1,631 |   |   |   | (250 | ) |
| Net      Earnings                     |   |                                   | 6,666  |   |   |   | 6,297 |   |   |   | (369 | ) |
| Earnings      per share-basic         |   |                                   | 0.20   |   |   |   | 0.19 |   |   |   | (0.01 | ) |
| Earnings      per share-fully diluted |   |                                   | 0.18   |   |   |   | 0.18 |   |   |   | — |   |

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|                                                |   | Pension      Plans |   |   | Other      PostretirementBenefit      Plans |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|---------------------------------------------|--------|
| ($ in      thousands)                          |   | March 29, 2009     |   |   | March 30,      2008                         |   |   | March 29,      2009 |   |   | March 30,      2008 |   |
| Service      cost                                   |   | $                  | 779    |   |                                        | $      | 887 |   |   | $ | 3 |   |   | $ | 5 |   |
| Interest      cost                                  |   |               | 3,432  |   |                                        |   | 3,297 |   |   |   | 78 |   |   |   | 92 |   |
| Expected      return on plan assets (1)   |   |               | (6,096 | )      |                                        |   | (6,597 | ) |   |   | — |   |   |   | — |   |
| Amortization      of prior service cost             |   |               | 126    |   |                                        |   | 135 |   |   |   | — |   |   |   | — |   |
| Amortization      of loss/(gain)                    |   |               | 1,221  |   |                                        |   | 429 |   |   |   | (25 | ) |   |   | — |   |
| (Income)/expense,      net                          |   | $                  | (538   | )      |                                        | $      | (1,849 | ) |   | $ | 56 |   |   | $ | 97 |   |

| ($      in thousands)                  |   | EMS    |    |   | Components and      Sensors |   |    | Total   |   |
|----------------------------------------|--------|--------|---------|--------|-----------------------------|--------|---------|---------|--------|
| First      Quarter of 2009             |   |   |    |   |                        |   |    |    |   |
| Net      sales to external customers   |   | $      | 75,822  |   |                        | $      | 42,309  |    |   | $ | 118,131 |   |
| Segment      operating (loss)/earnings |   |   | 3,264   |   |                        |   | (3,408  | )  |   |   | (144 | )  |
| Total      assets                      |   |   | 139,597 |   |                        |   | 296,063 |    |   |   | 435,660 |   |
|                                   |   |   |    |   |                        |   |    |    |   |   |   |   |
| First      Quarter of 2008             |   |   |    |   |                        |   |    |    |   |   |   |   |
| Net      sales to external customers   |   | $      | 94,968  |   |                        | $      | 77,787  |    |   | $ | 172,755 |   |
| Segment      operating earnings        |   |   | 2,030   |   |                        |   | 6,775   |    |   |   | 8,805 |   |
| Total      assets                      |   |   | 187,642 |   |                        |   | 394,602 |    |   |   | 582,244 |   |

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| ($      in thousands)                                |   | First       Quarter2009 |    |   | First      Quarter2008 |   |
|------------------------------------------------------|--------|------------------------------|---------|--------|------------------------|--------|
| Total      segment operating (loss)/earnings         |   | $                            | (144    | )      |                   | $      | 8,805 |   |
| Restructuring      and restructuring-related charges |   |                         | (2,243  | )      |                   |   | (424 | ) |
| Goodwill      impairment                             |   |                         | (33,153 | )      |                   |   | — |   |
| Interest      expense                                |   |                         | (888    | )      |                   |   | (1,678 | ) |
| Interest      income                                 |   |                         | 70      |   |                   |   | 478 |   |
| Other      (expense)/income                          |   |                         | (321    | )      |                   |   | 747 |   |
| (Loss)/earnings      before income taxes             |   | $                            | (36,679 | )      |                   | $      | 7,928 |   |

| ($ 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 March 29, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | — |   |

| ($ in      millions)                                                                                            March      2009 Plan | PlannedCosts |   | Actual      incurred throughMarch      29, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |         |   |                                            |   |
| Workforce      reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | $      | 1.9                                             |   |   | $ | 2.1 |   |
| Asset      impairments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |         |   | —                                         |   |   |   | 0.1 |   |
| Total      restructuring and impairment charge                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |         | $      | 1.9                                             |   |   | $ | 2.2 |   |

|  ($      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                                                                                        |   |   | (0.4    | ) |
| Restructuring      liability at March 29, 2009                                                        |   | $      | 1.7     |   |

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|                                |   | 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                |   |   | (30,780 | )      |                          |   | (2,373  | )              |   |   | (33,153 | ) |
|                                |   |   |    |   |                          |   |    |           |   |   |   |   |
| Balance      at March 29, 2009      |   |   | — |   |                          |   | — |           |   |   | — |   |

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|                                            |   | March      29, 2009        |    |   | December      31, 2008        |   |
|-------------------------------------------------|--------|----------------------------|---------|--------|-------------------------------|--------|
| ($      in thousands)                           |   | Gross      Carrying Amount |    |   | Accumulated      Amortization |   |   | Gross      Carrying Amount |   |   | Accumulated      Amortization |   |
| Amortized      intangible assets:               |   |                       |    |   |                          |   |   |   |   |   |   |   |
| Customer      lists/relationships               |   | $                          | 51,084  |   |                          | $      | (15,663 | ) |   | $ | 51,084 |   |   | $ | (15,038 | ) |
| Patents                                         |   |                       | 10,319  |   |                          |   | (10,154 | ) |   |   | 10,319 |   |   |   | (9,886 | ) |
| Other      intangibles                          |   |                       | 500     |   |                          |   | (66 | ) |   |   | 500 |   |   |   | (52 | ) |
| Total                                           |   |                       | 61,903  |   |                          |   | (25,883 | ) |   |   | 61,903 |   |   |   | (24,976 | ) |
| Goodwill                                        |   |                       | — |   |                          |   | — |   |   |   | 33,150 |   |   |   | — |   |
| Total      other intangible assets and goodwill |   | $                          | 61,903  |   |                          | $      | (25,883 | ) |   | $ | 95,053 |   |   | $ | (24,976 | ) |

| ($      in thousands, except per share amounts) |   | Net      Earnings (Numerator) |    |   | Shares(in      thousands) (Denominator) |   |    | Per Share      Amount |   |
|-------------------------------------------------|--------|-------------------------------|---------|--------|-----------------------------------------|--------|---------|-----------------------|--------|
| First      Quarter 2009                         |   |                          |    |   |                                    |   |    |                  |   |
| Basic      loss per share                       |   | $                             | (35,649 | )      |                                    |   | 33,744  |                  |   |  $ | (1.06 | )  |
| Effect      of dilutive securities:             |   |                          |    |   |                                    |   |    |                  |   |   |   |   |
| Convertible      debt                           |   |                          | — |   |                                    |   | — |                  |   |   |   |   |
| Equity-based      compensation plans            |   |                          | — |   |                                    |   | — |                  |   |   |   |   |
| Diluted      loss per share                     |   | $                             | (35,649 | )      |                                    |   | 33,744  |                  |   |  $ | (1.06 | )  |
|                                            |   |                          |    |   |                                    |   |    |                  |   |   |   |   |
| First      Quarter 2008                         |   |                          |    |   |                                    |   |    |                  |   |   |   |   |
| Basic      EPS                                  |   | $                             | 6,297   |   |                                    |   | 33,845  |                  |   |  $ | 0.19 |   |
| Effect      of dilutive securities:             |   |                          |    |   |                                    |   |    |                  |   |   |   |   |
| Convertible      debt                           |   |                          | 631     |   |                                    |   | 4,000   |                  |   |   |   |   |
| Equity-based      compensation plans            |   |                          | — |   |                                    |   | 490     |                  |   |   |   |   |
| Diluted      EPS                                |   | $                             | 6,928   |   |                                    |   | 38,335  |                  |   |  $ | 0.18 |   |

|                                                                                                                  | Three      Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------|-------------------------|--------|
| (Number      of shares in thousands)                                                                                  | March      29,2009      |   | March 30,2008 |   |
| Stock      options where the assumed proceeds exceed the average market price of      common shares during the period |                    |   | 1,285 |   |   |   | 666 |   |
| Restricted      Stock Units                                                                                           |                    |   | 495 |   |   |   | — |   |
| Securities      related to the subordinated convertible debt                                                          |                    |   | 2,167 |   |   |   | — |   |

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| ($      in thousands)                                    |   | As    reported |    |    | Discrete item goodwill      impairment |   |    | Net loss before goodwill      impairment |   |
|----------------------------------------------------------|--------|----------------|---------|---------|----------------------------------------|--------|---------|------------------------------------------|--------|
| Pre-tax      loss                                        |   | $              | (36,679 | )       |                                   | $      | (33,153 | )                                        |   | $ | (3,526 | ) |
| Tax      benefit                                         |   |           | (1,030  | )  |                                   |   | (205    | )                                   |   |   | (825 | )  |
| Net      loss                                            |   |           | (35,649 | )  |                                   |   | (32,948 | )                                   |   |   | (2,701 | )  |
| First      quarter 2009 effective tax rate as reported   |   |           | 2.8     | %       |                                   |   |    |                                     |   |   |   |   |
| Full      year 2009 tax rate excluding the discrete item |   |           |    |    |                                   |   |    |                                     |   |   | 23.4 | %  |

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Management’s Discussion and Analysis ofFinancial Condition and Results of Operations ("MD&A")

| ·   | Total      sales in the first quarter 2009 of $118.1 million were reported through      two segments, EMS and Components and Sensors.  Sales decreased      by $54.6 million, or 31.6%, in the first quarter of 2009 from the first      quarter of 2008.  Sales in the Components and Sensors segment      decreased by 45.6% versus the first quarter of 2008, while sales in the      EMS segment decreased by 20.2% compared to the first quarter of      2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross      margins, as a percent of sales, were 16.8% and 19.6% in the first quarters      of 2009 and 2008, respectively.  The Components and Sensors      segment, which inherently generates a higher gross margin, decreased to      35.8% of total company sales in the first quarter of 2009 compared to      45.0% of total sales in the same period of2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Selling,      general and administrative (“SG&A”) and research and development      ("R&D") expenses were $20.0 million in the first quarter of 2009      compared to $25.3 million in the first quarter of 2008.  This      significant reduction reflects our proactive management of costs,      including restructuring actions cost-cutting measures and a greater than      $2.0 million decrease in discretionaryspending. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Interest      and other expense in the first quarter of 2009 was $1.1 million versus      $0.5 million in the same quarter of2008. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      effective tax rate for the first quarter of 2009 was 2.8%.  This      rate includes a discrete period tax benefit of $0.2 million related to our      goodwill impairment.  Excluding this discrete item the full year      tax rate is 23.4%. Refer to Note M, “Income Taxes”, for further      details. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net      loss was $35.6 million, or $1.06 per diluted share, in the first quarter      of 2009, including $33.2 million, or $0.98 per diluted share, for non-cash      goodwill impairment and $2.2 million, or $0.05 per diluted share, of      restructuring charges.    This compares with net      income of $6.3 million, or $0.18 per diluted share, in the first quarter      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    |   |   | Consolidated Total |   |
|----------------------------------------|--------|-------------------------------|--------|----------|--------|--------|--------|-------------------------|--------|
| First      Quarter 2009                |   |                          |   |     |   |   |   |                    |   |
| Sales                                  |   | $                             | 42,309 |     |   | $      | 75,822 |                    |   | $ | 118,131 |   |
| Segment      operating (loss)/earnings |   |                          | (3,408 | )   |   |   | 3,264  |                    |   |   | (144 | )  |
| %      of sales                        |   |                          | (8.1   | )%  |   |   | 4.3    | %                  |   |   | (0.1 | )%  |
|                                   |   |                          |   |     |   |   |   |                    |   |   |   |   |
| First      Quarter 2008                |   |                          |   |     |   |   |   |                    |   |   |   |   |
| Sales                                  |   | $                             | 77,787 |     |   | $      | 94,968 |                    |   | $ | 172,755 |   |
| Segment      operating earnings        |   |                          | 6,775  |     |   |   | 2,030  |                    |   |   | 8,805 |   |
| %      of sales                        |   |                          | 8.7    | %        |   |   | 2.1    | %                  |   |   | 5.1 | %  |

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|                                                       |   | Three      months ended |    |    |                |    |
|------------------------------------------------------------|--------|-------------------------|---------|---------|---------------------|---------|
|  ($      in thousands, except net earnings per share) |   | March      29, 2009     |    |    | March      30, 2008 |    |   | Increase(Decrease) |   |
| Net      sales                                             |   | $                       | 118,131 |    |                | $       | 172,755 |   |   | $ | (54,624 | )  |
| Restructuring-related      costs                           |   |                    | — |    |                |    | 274 |   |   |   | (274 | )  |
| %      of net sales                                   |   |                    | — | %       |                |    | 0.2 | % |   |   | (0.2 | )% |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Gross      margin                                          |   |                    | 19,829  |    |                |    | 33,824 |   |   |   | (13,995 | ) |
| %      of net sales                                        |   |                    | 16.8    | %       |                |    | 19.6 | % |   |   | (2.8 | )% |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Selling,      general and administrative expenses          |   |                    | 16,620  |    |                |    | 20,976 |   |   |   | (4,356 | )  |
| %      of net sales                                        |   |                    | 14.1    | %       |                |    | 12.1 | % |   |   | 2.0 | % |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Research      and development expenses                     |   |                    | 3,353   |    |                |    | 4,317 |   |   |   | (964 | ) |
| %      of net sales                                        |   |                    | 2.8     | %       |                |    | 2.5 | % |   |   | 0.3 | % |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Restructuring      charge                                  |   |                    | 2,243   |    |                |    | 150 |   |   |   | 2,093 |   |
| %      of net sales                                        |   |                    | 1.9     | %       |                |    | 0.1 | % |   |   | 1.8 | % |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Goodwill      impairment                                   |   |                    | 33,153  |    |                |    | — |   |   |   | 33,153 |   |
| %      of net sales                                        |   |                    | 28.1    | %       |                |    | — | % |   |   | 28.1 | % |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Operating      earnings                                    |   |                    | (35,540 | )  |                |    | 8,381 |   |   |   | (43,921 | ) |
| %      of net sales                                        |   |                    | (30.1   | )%      |                |    | 4.9 | % |   |   | (35.0 | )% |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Income      tax (benefit)/expense                          |   |                    | (1,030  | )  |                |    | 1,631 |   |   |   | (2,661 | )  |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Net      earnings                                          |   |                    | (35,649 | )  |                |    | 6,297 |   |   |   | (41,946 | ) |
| %      of net sales                                        |   |                    | (30.2   | )%      |                |    | 3.6 | % |   |   | (33.8 | )% |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |
| Net      (loss)/earnings per diluted share                 |   | $                       | (1.06   | )  |                |  $ | 0.18 |   |   | $ | (1.24 | )  |
|                                                       |   |                    |    |    |                |    |   |   |   |   |   |   |

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Item3.     Quantitative and Qualitative Disclosures About MarketRisk

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

PART II  - OTHER INFORMATION

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

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Risk Factors

Unregistered Sales of Equity Securitiesand Use of Proceeds

|                                        |   | (a)Total Number      of Shares      Purchased |    |   | (b)Average      PricePaid      per Share |   |    | (c)Total      Numberof      SharesPurchasedas      Part ofPlans      or Programs(1) |   |   | (d)Maximum      Numberof      SharesThat      MayYet      BePurchased      Under thePlans      or Programs |    |
|---------------------------------------------|--------|----------------------------------------------------|---------|--------|------------------------------------------|--------|---------|-------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------|---------|
|                                        |   |                                               |    |   |                                     |   |    |                                                                                |   |   |                                                                                                       | 977,500 |   |
| January      1, 2009 – March 29, 2009 |   |                                               | — |   |                                     |   | — |                                                                                |   |   | —                                                                                                    |    |   |   | 977,500 |   |
| Total                                       |   |                                               | — |   |                                     | $      | — |                                                                                |   |   | —                                                                                                    |    |   |   |   |   |

|   | _____________________________ |
|--------|-------------------------------|

| (1) | In May 2008, CTS’ Board of      Directors authorized a program to repurchase up to one million shares of      its common stock in the open market.  The authorization does not      expire. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Exhibits

| (10)(a) | 2009      – 2010 Performance Restricted Stock Unit Plan                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                              |
| (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 of2002.  |

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Table of Contents

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:      April 29, 2009                                             |   |  Dated:      April 29, 2009                                            |   |

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