----

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­­­EXHIBIT(13)

| ·   | Revenues      increased 0.8% in 2008 compared to 2007, despite the economic downturn      that began to impact us negatively in the third quarter of      2008.  Sales in the Components and Sensors segment increased by      4.3%, primarily driven by acquisition of Tusonix and improved      piezoelectric product sales.  Sales in the EMS segment decreased      by 1.6% attributable primarily to lower expected sales in the computer      market due to certain products going end-of-life (“EOL”) partially offset      by higher sales into defense and aerospace and communications markets,      including the positive impact of the recent Orion    acquisition. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross      margins in 2008 increased $4.4 million from 2007 primarily due to the      contribution from higher sales volume and improved operational      efficiencies in both segments.  Gross margins as a percent of      sales were 19.8% in 2008 compared to 19.3% in 2007.  Within the      EMS segment, margins were favorably impacted by improved product mix as we      continue to increase focus on sales into the higher margin target markets      of defense and aerospace, industrial and medical.  Within the      Components and Sensors segment, unfavorable absorption of fixed costs and      lower royalty income negatively impacted margins, partially offset by      favorable product mix. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Selling,      general and administrative (“SG&A”) and research and development      (“R&D”) expenses increased as a percent of sales to 14.6% in 2008 from      14.3% in 2007.  The increase was driven by incremental expenses      to support higher sales in the Components and Sensors segment and research      and development spending devoted to the development and launch of new      commercial market growthinitiatives. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating      earnings in 2008 decreased slightly to $30.8 million, or 4.5% of sales,      from $32.3 million, or 4.7% of sales, in 2007 primarily due to higher      restructuring and restructuring-related and R&D expenses, partially      offset by improved gross margins.  Included in operating      earnings were $6.1 million and $2.6 million of restructuring and      restructuring-related costs for the years ended December 31, 2008 and      December 31, 2007, respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      2008, our effective tax rate was (2.02%) compared to 21.75% in      2007.  Interest and other expense in 2008 was $1.5 million      versus interest and other income of $0.2 million in  2007. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net      earnings increased to $29.9 million in 2008 from $25.4 million in      2007.  Diluted earnings per share were $0.81 in 2008 and $0.66      in 2007.   The 2008 diluted earnings per share included      $0.10 of restructuring and related charges and a tax benefit of      $0.14.  The 2007 diluted earnings per share included $0.05 of      restructuring and related charges. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ($ in      thousands)                |   | EMS    |    |   | Components      & Sensors |   |    | Total  |   |
|--------------------------------------|--------|--------|---------|--------|-------------------------------|--------|---------|--------|--------|
| 2008                                 |   |   |    |   |                          |   |    |   |   |
| Net      sales to external customers |   | $      | 399,294 |   |                          | $      | 292,413 |   |   | $ | 691,707 |   |
| Segment      operating earnings      |   | $      | 12,362  |   |                          | $      | 24,553  |   |   | $ | 36,915 |   |
| %      of segment sales              |   |   | 3.1     | %      |                          |   | 8.4     | %      |   |   | 5.3 | % |
|                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| 2007                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| Net      sales to external customers |   | $      | 405,708 |   |                          | $      | 280,237 |   |   | $ | 685,945 |   |
| Segment      operating earnings      |   | $      | 10,175  |   |                          | $      | 24,716  |   |   | $ | 34,891 |   |
| %      of segment sales              |   |   | 2.5     | %      |                          |   | 8.8     | %      |   |   | 5.1 | % |
|                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| 2006                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| Net      sales to external customers |   | $      | 385,744 |   |                          | $      | 269,870 |   |   | $ | 655,614 |   |
| Segment      operating earnings      |   | $      | 6,179   |   |                          | $      | 30,963  |   |   | $ | 37,142 |   |
| %      of segment sales              |   |   | 1.6     | %      |                          |   | 11.5    | %      |   |   | 5.7 | % |

----

|                   |   | Components      & Sensors |   | EMS    |   | Consolidated      Total |   |
|------------------------|--------|-------------------------------|--------|--------|--------|-------------------------|--------|
| Geographic      Region |   | 2008                          |   | 2007   |   | 2006                    |   | 2008 |   | 2007 |   | 2006 |   | 2008 |   | 2007 |   | 2006 |   |
|                   |   |                          |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Americas               |   |                          | 44     | %      | 49     | %                       | 51     | % | 65 | % | 56 | % | 48 | % | 56 | % | 53 | % | 49 | % |
| Asia-Pacific           |   |                          | 29     | %      | 26     | %                       | 26     | % | 32 | % | 40 | % | 46 | % | 31 | % | 34 | % | 38 | % |
| Europe                 |   |                          | 27     | %      | 25     | %                       | 23     | % |         3 | % |         4 | % | 6 | % | 13 | % | 13 | % | 13 | % |
| Total                  |   |                          | 100    | %      | 100    | %                       | 100    | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |

----

|                                              |   | Year ended      December 31, |    |
|---------------------------------------------------|--------|-----------------------------------|---------|
| (In      thousands of dollars)                    |   | 2008                              |    |   | 2007 |   |   | 2006 |   |
| Net      sales                                    |   | $                                 | 691,707 |   |   | $ | 685,945 |   |   | $ | 655,614 |   |
| Cost      of goods sold                           |   |                              | 554,116 |   |   |   | 553,038 |   |   |   | 533,828 |   |
| Restructuring-related      charges                |   |                              | 518     |   |   |   | 215 |   |   |   | 956 |   |
| Gross      margin                                 |   |                              | 137,073 |   |   |   | 132,692 |   |   |   | 120,830 |   |
| %      of net sales                               |   |                              | 19.8    | % |   |   | 19.3 | %  |   |   | 18.4 | %  |
| Selling,      general and administrative expenses |   |                              | 82,589  |   |   |   | 82,078 |   |   |   | 70,913 |   |
| %      of net sales                               |   |                              | 11.9    | % |   |   | 12.0 |  % |   |   | 10.8 | % |
| Research      and development expenses            |   |                              | 18,306  |   |   |   | 15,896 |   |   |   | 15,873 |   |
| %      of net sales                               |   |                              | 2.6     | % |   |   | 2.3 |  % |   |   | 2.4 | % |
| (Gain)      loss on asset sales                   |   |                              | (219    | ) |   |   | 42 |   |   |   | (2,142 | ) |
| Restructuring      and impairment charges         |   |                              | 5,567   |   |   |   | 2,401 |   |   |   | 3,368 |   |
| Operating      earnings                           |   |                              | 30,830  |   |   |   | 32,275 |   |   |   | 32,818 |   |
| %      of net sales                               |   |                              | 4.5     | % |   |   | 4.7 | %  |   |   | 5.0 | %  |
| Interest      (expense)                           |   |                              | (3,814  | ) |   |   | (3,100 | )  |   |   | (3,654 | )  |
| Other      income                                 |   |                              | 2,279   |   |   |   | 3,300 |   |   |   | 1,502 |   |
| Earnings      before income taxes                 |   |                              | 29,295  |   |   |   | 32,475 |   |   |   | 30,666 |   |
| Income      tax (benefit) expense                 |   |                              | (591    | ) |   |   | 7,063 |   |   |   | 6,469 |   |
| Net      earnings                                 |   | $                                 | 29,886  | (1) |   | $ | 25,412 | (2) |   | $ | 24,197 | (3) |
| %      of net sales                               |   |                              | 4.3     |   |   |   | 3.7 |   |   |   | 3.7 |   |
| Diluted      earnings per share                   |   | $                                 | 0.81    | (1) |   | $ | 0.66 | (2) |   | $ | 0.63 | (3) |

| (1)   | Net      earnings and diluted earnings per share include a net impact of $6.1      million, or $0.10 per diluted share, related to restructuring and      restructuring-related charges as a result of company-wide restructuring      plans, $1.4 million, or $0.04 per diluted share benefit, pertaining to a      change in the tax law of a certain jurisdiction and $4.1 million, or $0.11      per diluted share benefit, related to a reversal of tax      reserves. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Net      earnings and diluted earnings per share include a net impact of $2.0      million, or $0.05 per diluted share, related to restructuring and      restructuring-related charges associated with the realignment of      operations. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Net      earnings and diluted earnings per share include a net impact of $3.4      million, or $0.08 per diluted share, related to restructuring and      restructuring-related charges associated with the consolidation of the      Berne, Indiana operations and the further impairment of an idle facility      lease. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|                                 | Year      ended December 31, |   |
|--------------------------------------|------------------------------|--------|
| (In      millions of dollars)        | 2008                         |   | 2007 |   | 2006 |   |
| Net      cash provided by operations |                         | $      | 34.1 |   |   | $ | 48.6 |   |   | $ | 47.2 |   |
| Capital      expenditures            |                         |   | (17.6 | ) |   |   | (16.1 | ) |   |   | (15.8 | ) |
| Free      cash flow                  |                         | $      | 16.5 |   |   | $ | 32.5 |   |   | $ | 31.4 |   |

----

| ($      in thousands)                                                                                                 |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Revolving      credit agreement, weighted-average interest rate of 3.3% (2008) and 5.6%      (2007),      due in 2011 |   | $      | 48,000 |   |   | $      | 12,000 |   |
| Convertible,      senior subordinated notes at a weighted-average rate of 2.125%, due in      2024                    |   |   | 32,500 |   |   |   | 60,000 |   |
| Total      long-term debt                                                                                             |   | $      | 80,500 |   |   | $      | 72,000 |   |

----

|                                    |   |  Payments      Due by Period |    |
|-----------------------------------------|--------|-----------------------------------|---------|
| ($      in millions)                    |   | Total                             |    | 2009 |   | 2010      - 2011 |   | 2012      - 2013 |   | 2014      – beyond |   |
| Long-term      debt (1)                 |   | $                                 | 92.7    |   | $ | 1.3 |   | $ | 50.3 |   | $ | 1.4 |   | $ | 39.7 | (2) |
| Operating      leases                   |   |                              | 27.9    |   |   | 7.5 |   |   | 11.5 |   |   | 6.0 |   |   | 2.9 |   |
| Obligations      associated with FIN 48 |   |                              | 4.5     |   |   | 0.4 |   |   | 0.9 |   |   | — |   |   | 3.2 |   |
| Purchase      obligations               |   |                              | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Retirement      obligations             |   |                              | 19.4    |   |   | 2.1 |   |   | 4.7 |   |   | 3.9 |   |   | 8.7 |   |
| Total                                   |   | $                                 | 144.5   |   | $ | 11.3 |   | $ | 67.4 |   | $ | 11.3 |   | $ | 54.5 |   |

| (1)    |   | Including      principal and coupon payments of the 2.125% Debentures issued in 2004 and      principal and interest payments of the revolving credit      agreement.  The holders of the 2.125% Debentures have the right      to require us to purchase, for cash, all of the remaining $32.5 million      2.125% Debentures on May 1, 2009, May 1, 2014, or May 1,      2019.  Refer to Note G, “Debt”, in our consolidated financial      statements. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (2)    |   | Debentures      issued in May 2004.  Investors may convert the debentures, under      certain circumstances, at any time to CTS common stock.  The      conversion price is $15.00 pershare.                                                                                                                                                                                                                                                                          |

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|                                                        |   | Year      Ended December 31, |    |
|-------------------------------------------------------------|--------|------------------------------|---------|
|                                                        |   | 2008                         |    |   | 2007 |   |   | 2006 |   |
| Net      sales                                              |   | $                            | 691,707 |   |   | $ | 685,945 |   |   | $ | 655,614 |   |
| Costs      and expenses:                                    |   |                         |    |   |   |   |   |   |   |   |   |   |
| Cost      of goods sold                                     |   |                         | 554,634 |   |   |   | 553,253 |   |   |   | 534,784 |   |
| Selling,      general and administrative expenses           |   |                         | 82,589  |   |   |   | 82,078 |   |   |   | 70,913 |   |
| Research      and development expenses                      |   |                         | 18,306  |   |   |   | 15,896 |   |   |   | 15,873 |   |
| (Gain)/loss      on asset sales                             |   |                         | (219    | ) |   |   | 42 |   |   |   | (2,142 | ) |
| Restructuring      and impairment charges — Note P    |   |                         | 5,567   |   |   |   | 2,401 |   |   |   | 3,368 |   |
|    Operating      earnings                   |   |                         | 30,830  |   |   |   | 32,275 |   |   |   | 32,818 |   |
| Other      (expense)/income:                                |   |                         |    |   |   |   |   |   |   |   |   |   |
| Interest      expense                                       |   |                         | (3,814  | ) |   |   | (3,100 | ) |   |   | (3,654 | ) |
| Interest      income                                        |   |                         | 1,421   |   |   |   | 2,052 |   |   |   | 934 |   |
| Other                                                       |   |                         | 858     |   |   |   | 1,248 |   |   |   | 568 |   |
|    Total      other (expense)/income         |   |                         | (1,535  | ) |   |   | 200 |   |   |   | (2,152 | ) |
| Earnings before      income taxes                      |   |                         | 29,295  |   |   |   | 32,475 |   |   |   | 30,666 |   |
| Income      tax (benefit)/expense  — Note J |   |                         | (591    | ) |   |   | 7,063 |   |   |   | 6,469 |   |
|    Net      earnings                         |   | $                            | 29,886  |   |   | $ | 25,412 |   |   | $ | 24,197 |   |
| Net      Earnings per share — Note D                  |   |
| Basic                                                       |   | $                            | 0.89    |   |   | $ | 0.72 |   |   | $ | 0.68 |   |
| Diluted                                                     |   | $                            | 0.81    |   |   | $ | 0.66 |   |   | $ | 0.63 |   |

----

|                                                                                                                                                                                                          |   | December      31, |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|
|                                                                                                                                                                                                          |   | 2008              |     |   | 2007 |   |
| ASSETS                                                                                                                                                                                                        |   |              |     |   |   |   |
| Current      Assets                                                                                                                                                                                           |   |              |     |   |   |   |
| Cash      and cash equivalents                                                                                                                                                                                |   | $                 | 44,628   |   |   | $ | 52,868 |   |
| Accounts      receivable, less allowances (2008 — $2,165, 2007 — $1,304)                                                                                                                          |   |              | 94,175   |   |   |   | 100,655 |   |
| Inventories,      net                                                                                                                                                                                         |   |              |     |   |   |   |   |   |
| Finished      goods                                                                                                                                                                                           |   |              | 7,813    |   |   |   | 9,592 |   |
| Work-in-process                                                                                                                                                                                               |   |              | 16,246   |   |   |   | 18,064 |   |
| Raw      materials                                                                                                                                                                                            |   |              | 46,808   |   |   |   | 46,122 |   |
| Total      inventories, net                                                                                                                                                                                   |   |              | 70,867   |   |   |   | 73,778 |   |
|     Current      deferred tax asset – Note J                                                                                                                                        |   |              | 8,073    |   |   |   | 14,494 |   |
| Other      current assets                                                                                                                                                                                     |   |              | 8,099    |   |   |   | 9,045 |   |
| Total      current assets                                                                                                                                                                                     |   |              | 225,842  |   |   |   | 250,840 |   |
| Property,      plant and equipment                                                                                                                                                                            |   |              |     |   |   |   |   |   |
| Land                                                                                                                                                                                                          |   |              | 2,998    |   |   |   | 1,783 |   |
| Buildings                                                                                                                                                                                                     |   |              | 96,133   |   |   |   | 98,865 |   |
| Machinery      and equipment                                                                                                                                                                                  |   |              | 249,475  |   |   |   | 258,438 |   |
| Total      property, plant and equipment                                                                                                                                                                      |   |              | 348,606  |   |   |   | 359,086 |   |
| Accumulated      depreciation                                                                                                                                                                                 |   |              | (257,850 | ) |   |   | (266,261 | ) |
| Net      property, plant and equipment                                                                                                                                                                        |   |              | 90,756   |   |   |   | 92,825 |   |
| Other      assets                                                                                                                                                                                             |   |              |     |   |   |   |   |   |
| Prepaid      pension asset — Note H                                                                                                                                                                     |   |              | 18,756   |   |   |   | 107,158 |   |
| Goodwill      - Note E                                                                                                                                                                                        |   |              | 33,150   |   |   |   | 24,657 |   |
| Other      intangible assets, net — Note E                                                                                                                                                              |   |              | 36,927   |   |   |   | 36,743 |   |
| Deferred      income taxes — Note J                                                                                                                                                                     |   |              | 82,093   |   |   |   | 30,237 |   |
| Other      assets                                                                                                                                                                                             |   |              | 931      |   |   |   | 1,232 |   |
| Total      other assets                                                                                                                                                                                       |   |              | 171,857  |   |   |   | 200,027 |   |
| Total      Assets                                                                                                                                                                                             |   | $                 | 488,455  |   |   | $ | 543,692 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                               |   |              |     |   |   |   |   |   |
| Current      Liabilities                                                                                                                                                                                      |   |              |     |   |   |   |   |   |
| Notes      payable — Note F                                                                                                                                                                             |   | $                 | —  |   |   | $ | 1,000 |   |
| Accounts      payable                                                                                                                                                                                         |   |              | 71,285   |   |   |   | 84,217 |   |
| Accrued      salaries, wages and vacation                                                                                                                                                                     |   |              | 14,316   |   |   |   | 15,296 |   |
| Income      taxes payable                                                                                                                                                                                     |   |              | 6,592    |   |   |   | 5,581 |   |
| Other      accrued liabilities                                                                                                                                                                                |   |              | 21,048   |   |   |   | 22,825 |   |
| Total      current liabilities                                                                                                                                                                                |   |              | 113,241  |   |   |   | 128,919 |   |
| Long-term      debt — Note G                                                                                                                                                                            |   |              | 80,500   |   |   |   | 72,000 |   |
| Other      long-term obligations — Notes H and J                                                                                                                                                        |   |              | 17,536   |   |   |   | 18,526 |   |
| Contingencies      — Note N                                                                                                                                                                             |   |              | —  |   |   |   | — |   |
| Shareholders’      Equity                                                                                                                                                                               |   |              |     |   |   |   |   |   |
| Preferred      stock — authorized 25,000,000 shares without par value; none issued — Note      K                                                                                                  |   |              | —  |   |   |   | — |   |
| Common      stock —  authorized 75,000,000 shares without par value;      54,031,844 shares issued at December 31, 2008 and 53,919,733 shares issued      at December 31, 2007 — Note K |   |              | 280,266  |   |   |   | 278,916 |   |
| Additional      contributed capital                                                                                                                                                                           |   |              | 30,156   |   |   |   | 28,563 |   |
| Retained      earnings                                                                                                                                                                                        |   |              | 362,391  |   |   |   | 336,548 |   |
| Accumulated      other comprehensive loss                                                                                                                                                                     |   |              | (98,626  | ) |   |   | (29,808 | ) |
|                                                                                                                                                                                                          |   |              | 574,187  |   |   |   | 614,219 |   |
| Cost      of common stock held in treasury (2008 — 20,320,759 shares; 2007 —      19,606,459 shares) — Note L                                                                               |   |              | (297,009 | ) |   |   | (289,972 | ) |
| Total      shareholders’ equity                                                                                                                                                                         |   |              | 277,178  |   |   |   | 324,247 |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                                                                         |   | $                 | 488,455  |   |   | $ | 543,692 |   |

----

|                                                                                          |   | Year      Ended December 31, |       |
|-----------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                          |   | 2008                         |       |   | 2007 |   |   | 2006 |   |
|  Cash      flows from operating activities:                                              |   |                         |       |   |   |   |   |   |   |
| Net      earnings                                                                             |   | $                            | 29,886     |   |   | $ | 25,412 |   |   | $ | 24,197 |   |
| Adjustments      to reconcile net earnings to net cash provided by operating      activities: |   |                         |       |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                            |   |                         | 24,178     |   |   |   | 22,818 |   |   |   | 24,896 |   |
| Prepaid      pension asset                                                                    |   |                         | (10,788    | ) |   |   | (9,122 | ) |   |   | (6,173 | ) |
| Amortization      of retirement benefit adjustments – Note H                            |   |                         | 2,237      |   |   |   | 3,944 |   |   |   | — |   |
| Equity-based      compensation – Note I                                                 |   |                         | 3,375      |   |   |   | 3,295 |   |   |   | 4,071 |   |
| Deferred      income taxes – Note J                                                     |   |                         | (4,687     | ) |   |   | 1,572 |   |   |   | 1,885 |   |
| (Gain)/loss      on asset sales                                                               |   |                         | (219       | ) |   |   | 42 |   |   |   | (2,142 | ) |
| Restructuring      charge – Note P                                                      |   |                         | 5,567      |   |   |   | 2,401 |   |   |   | 3,368 |   |
| Changes      in assets and liabilities, net of effects fromacquisitions                       |   |                         |       |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                      |   |                         | 7,377      |   |   |   | 5,357 |   |   |   | (15,222 | ) |
| Inventories                                                                                   |   |                         | 9,585      |   |   |   | (12,812 | ) |   |   | 87 |   |
| Accounts      payable                                                                         |   |                         | (16,181    | ) |   |   | 6,011 |   |   |   | 9,486 |   |
| Accrued      liabilities                                                                      |   |                         | (10,514    | ) |   |   | (1,307 | ) |   |   | (1,082 | ) |
| Income      taxes payable                                                                     |   |                         | (422       | ) |   |   | 2,246 |   |   |   | 1,933 |   |
|     Other                                                                 |   |                         | (5,295     | ) |   |   | (1,254 | ) |   |   | 1,881 |   |
| Total      adjustments                                                                        |   |                         | 4,213      |   |   |   | 23,191 |   |   |   | 22,988 |   |
| Net      cash provided by operations                                                          |   |                         | 34,099     |   |   |   | 48,603 |   |   |   | 47,185 |   |
| Cash      flows from investing activities:                                                    |   |                         |       |   |   |   |   |   |   |   |   |   |
| Proceeds      from sale of assets                                                             |   |                         | 308        |   |   |   | 65 |   |   |   | 14,482 |   |
| Capital      expenditures                                                                     |   |                         | (17,647    | ) |   |   | (16,058 | ) |   |   | (15,787 | ) |
|     Payment      for acquisitions, net of cash acquired – Note B    |   |                         | (21,054    | ) |   |   | (1,028 | ) |   |   | — |   |
| Net      cash used in investing activities                                                    |   |                         | (38,393    | ) |   |   | (17,021 | ) |   |   | (1,305 | ) |
| Cash      flows from financing activities:                                                    |   |                         |       |   |   |   |   |   |   |   |   |   |
| Borrowings      of long-term debt                                                             |   |                         | 1,662,550  |   |   |   | 94,600 |   |   |   | 73,850 |   |
| Payments      of long-term debt                                                               |   |                         | (1,651,823 | ) |   |   | (83,457 | ) |   |   | (81,608 | ) |
| Borrowings      of short-term notes payable                                                   |   |                         | 6,426      |   |   |   | 47,571 |   |   |   | 123,758 |   |
| Payments      of short-term notes payable                                                     |   |                         | (7,426     | ) |   |   | (51,996 | ) |   |   | (131,632 | ) |
| Purchase      of treasury stock                                                               |   |                         | (7,037     | ) |   |   | (20,344 | ) |   |   | (2,309 | ) |
| Dividends      paid                                                                           |   |                         | (4,063     | ) |   |   | (4,279 | ) |   |   | (4,307 | ) |
| Other                                                                                         |   |                         | (719       | ) |   |   | 381 |   |   |   | 112 |   |
| Net      cash used in financing activities                                                    |   |                         | (2,092     | ) |   |   | (17,524 | ) |   |   | (22,136 | )  |
| Effect      of exchange rate changes on cash                                                  |   |                         | (1,854     | ) |   |   | 180 |   |   |   | 2,857 |   |
| Net      (decrease)/increase in cash and cash equivalents                                     |   |                         | (8,240     | ) |   |   | 14,238 |   |   |   | 26,601 |   |
| Cash      and cash equivalents at beginning of year                                           |   |                         | 52,868     |   |   |   | 38,630 |   |   |   | 12,029 |   |
| Cash      and cash equivalents at end of year                                                 |   | $                            | 44,628     |   |   | $ | 52,868 |   |   | $ | 38,630 |   |

| Supplemental      cash flow information |   |   |   |   |   |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash      paid during the year for:     |   |   |   |   |   |   |   |   |   |
| Interest                                |   | $      | 3,315  |   |   | $      | 2,532  |   |   | $ | 3,133 |   |
| Income      taxes — net           |   | $      | 4,821  |   |   | $      | 2,301  |   |   | $ | 1,568 |   |

----

|                                                                                     |   |   |    |        |   |     |   | Accumulated   |    |          |   |     |   |   |    |
|------------------------------------------------------------------------------------------|--------|--------|---------|-------------|--------|----------|--------|---------------|---------|---------------|--------|----------|--------|--------|---------|
|                                                                                     |   |   |    |        |   |     |   | Other         |    |          |   |     |   |   |    |
|                                                                                     |   |   |    | Additional  |   |     |   | Comprehensive |    |          |   |     |   |   |    |
|                                                                                     |   | Common |    | Contributed |   | Retained |   | Earnings      |    | Comprehensive |   | Treasury |   |   |    |
|                                                                                     |   | Stock  |    | Capital     |   | Earnings |   | (Loss)        |    | Earnings      |   | Stock    |   | Total  |    |
| Balances      at January 1, 2006                                                         |   | $      | 275,211 |        | $      | 24,743   |   | $             | 295,478 |          | $      | (244     | )      |   |    |   | $ | (267,095 | ) | $ | 328,093 |   |
| Net      earnings                                                                        |   |   |    |        |   |     |   |          | 24,197  |          |   |     |   |   | 24,197  |   |   |   |   |   | 24,197 |   |
| Cumulative      translation adjustment                                                   |   |   |    |        |   |     |   |          |    |          |   | 4,810    |   |   | 4,810   |   |   |   |   |   | 4,810 |   |
| Minimum      pension liability adjustment             (net of tax of      $50)      |   |   |    |        |   |     |   |          |    |          |   | 369      |   |   | 369     |   |   |   |   |   | 369 |   |
|  Comprehensive      earnings                                                        |   |   |    |        |   |     |   |          |    |          |   |     |   | $      | 29,376  |   |   |   |   |   |   |   |
| Adjustment      to initially apply FAS   No.      158, net      of tax              |   |   |    |        |   |     |   |          |    |          |   | (36,218  | )      |   |    |   |   |   |   |   | (36,218 | ) |
| Cash      dividends of $0.12 per share                                                   |   |   |    |        |   |     |   |          | (4,305  | )             |   |     |   |   |    |   |   |   |   |   | (4,305 | ) |
| Issued      70,943 shares on exercise of      stock        option  net         |   |   | 575     |        |   |     |   |          |    |          |   |     |   |   |    |   |   | (112 | ) |   | 463 |   |
| Issued      64,372 shares on vesting of   restricted      stock      units          |   |   | 767     |        |   | (1,133   | )      |          |    |          |   |     |   |   |    |   |   |   |   |   | (366 | ) |
| Acquired      170,600 shares for treasury      stock                                     |   |   |    |        |   |     |   |          |    |          |   |     |   |   |    |   |   | (2,309 | ) |   | (2,309 | ) |
| Tax      benefits on exercise of options                                                 |   |   |    |        |   | 193      |   |          |    |          |   |     |   |   |    |   |   |   |   |   | 193 |   |
| Stock      compensation                                                                  |   |   |    |        |   | 4,096    |   |          |    |          |   |     |   |   |    |   |   |   |   |   | 4,096 |   |
| Balances      at December 31, 2006                                                       |   | $      | 276,553 |        | $      | 27,899   |   | $             | 315,370 |          | $      | (31,283  | )      |   |    |   | $ | (269,516 | ) | $ | 319,023 |   |
| Net      earnings                                                                        |   |   |    |        |   |     |   |          | 25,412  |          |   |     |   |   | 25,412  |   |   |   |   |   | 25,412 |   |
| Cumulative      translation adjustment                                                   |   |   |    |        |   |     |   |          |    |          |   | 486      |   |   | 486     |   |   |   |   |   | 486 |   |
| Other      comprehensive income, net of tax                                              |   |   |    |        |   |     |   |          |    |          |   |     |   |   |    |   |   |   |   |   |   |   |
|    Prior      service costs                                               |   |   |    |        |   |     |   |          |    |          |   | 152      |   |   | 152     |   |   |   |   |   | 152 |   |
|    Unrecognized      loss                                                 |   |   |    |        |   |     |   |          |    |          |   | 837      |   |   | 837     |   |   |   |   |   | 837 |   |
| Comprehensive      earnings                                                              |   |   |    |        |   |     |   |          |    |          |   |     |   | $      | 26,887  |   |   |   |   |   |   |   |
| Cash      dividends of $0.12 per share                                                   |   |   |    |        |   |     |   |          | (4,234  | )        |   |     |   |   |    |   |   |   |   |   | (4,234 | )  |
| Returned      2,000 shares on restricted  stock and cash bonus plan -      net |   |   | 27      |        |   | 38       |   |          |    |          |   |     |   |   |    |   |   | (65 | ) |   | — |   |
| Issued      50,400 shares on exerciseof      stock        option – net        |   |   | 1,889   |        |   |     |   |          |    |          |   |     |   |   |    |   |   |   |   |   | 1,889 |   |
| Exchanged      3,551 shares for stock    options                     |   |   |    |        |   |     |   |          |    |          |   |     |   |   |    |   |   | (46 | ) |   | (46 | ) |
| Issued      199,087 shares on vesting of   restricted      stock      units         |   |   | 447     |        |   | (2,723   | )      |          |    |          |   |     |   |   |    |   |   |   |   |   | (2,276 | ) |
| Acquired      1,705,200 shares for treasury             stock                       |   |   |    |        |   |     |   |          |    |          |   |     |   |   |    |   |   | (20,345 | ) |   | (20,345 | ) |
| Tax      benefits on exercise of options                                                 |   |   |    |        |   | 54       |   |          |    |          |   |     |   |   |    |   |   |   |   |   | 54 |   |
| Stock      compensation                                                                  |   |   |    |        |   | 3,295    |   |          |    |          |   |     |   |   |    |   |   |   |   |   | 3,295 |   |
| Balances      at December 31, 2007                                                       |   | $      | 278,916 |        | $      | 28,563   |   | $             | 336,548 |          | $      | (29,808  | )      |   |    |   | $ | (289,972 | ) | $ | 324,247 |   |
| Net      earnings                                                                        |   |   |    |        |   |     |   |          | 29,886  |          |   |     |   |   | 29,886  |   |   |   |   |   | 29,886 |   |
| Cumulative      translation adjustment                                                   |   |   |    |        |   |     |   |          |    |          |   | (9,111   | )      |   | (9,111  | ) |   |   |   |   | (9,111 | ) |
| Other      comprehensive income, net of tax                                              |   |   |    |        |   |     |   |          |    |          |   |     |   |   |    |   |   |   |   |   |   |   |
|    Prior      service costs                                               |   |   |    |        |   |     |   |          |    |          |   | 324      |   |   | 324     |   |   |   |   |   | 324 |   |
|    Unrecognized      loss                                                 |   |   |    |        |   |     |   |          |    |          |   | (60,031  | )      |   | (60,031 | ) |   |   |   |   | (60,031 | ) |
| Comprehensive      loss                                                                  |   |   |    |        |   |     |   |          |    |          |   |     |   | $      | (38,932 | ) |   |   |   |   |   |   |
| Cash      dividends of $0.12 per share                                                   |   |   |    |        |   |     |   |          | (4,043  | )             |   |     |   |   |    |   |   |   |   |   | (4,043 | ) |
| Issued      7,100 shares on exerciseof      stock        option – net         |   |   | 61      |        |   |     |   |          |    |          |   |     |   |   |    |   |   |   |   |   | 61 |   |
| Issued      105,011 shares on vesting of   restricted      stock      units         |   |   | 1,289   |        |   | (1,724   | )      |          |    |          |   |     |   |   |    |   |   |   |   |   | (435 | ) |
| Acquired      714,300 shares for treasury        stock                         |   |   |    |        |   |     |   |          |    |          |   |     |   |   |    |   |   | (7,037 | ) |   | (7,037 | ) |
| Tax      cost on exercise of options                                                     |   |   |    |        |   | (58      | )      |          |    |          |   |     |   |   |    |   |   |   |   |   | (58 | ) |
| Stock      compensation                                                                  |   |   |    |        |   | 3,375    |   |          |    |          |   |     |   |   |    |   |   |   |   |   | 3,375 |   |
| Balances      at December 31, 2008                                                       |   | $      | 280,266 |        | $      | 30,156   |   | $             | 362,391 |          | $      | (98,626  | )      |   |    |   | $ | (297,009 | ) | $ | 277,178 |   |

----

| ($      in thousands)                                |   | 2008   |    |   | 2007   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Accumulated      translation                         |   | $      | (1,423  | )      |   | $      | 7,688 |   |
| Unrecognized      amounts relating to benefit plans: |   |   |    |   |   |   |   |   |
|   Net      loss                            |   |   | (95,561 | )      |   |   | (35,530 | ) |
|   Prior      service costs                 |   |   | (1,642  | )      |   |   | (1,966 | ) |
| Accumulated      other comprehensive loss            |   | $      | (98,626 | )      |   | $      | (29,808 | ) |

----

----

----

----

| ·   | 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. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

|                                                                                |   | Tusonix                  |   |   | Orion                  |    |    |   |   |
|-------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|------------------------|---------|---------|--------|--------|
| ($ in thousands)                                                                    |   | At      January 28, 2008 |   |   | At      March 12, 2008 |    |    | Total  |   |
|  Current      assets                                                           |   | $                   | 6,517  |   |                   | $  | 8,348   |   |   | $  | 14,865 |   |
|  Property,      plant and equipment                                            |   |                     | 4,792  |   |                   |    | 785     |   |   |   | 5,577 |   |
|  Amortizable      intangible assets                                            |   |                     | 2,500  |   |                   |    | 1,300   |   |   |   | 3,800 |   |
|  Goodwill                                                                      |   |                     | 1,860  |   |                   |    | 6,636   |   |   |   | 8,496 |   |
|  Other      long-term assets                                                   |   |                     | (838   | )      |                   |    | (26     | )      |   |   | (864 | ) |
|    Fair      value of assets acquired, including 1,295 cash acquired |   |                     | 14,831 |   |                   |    | 17,043  |   |   |   | 31,874 |   |
|  Current      liabilities                                                      |   |                     | 2,341  |   |                   |    | 7,184   |   |   |   | 9,525 |   |
|    Fair      value of liabilities acquired                           |   |                     | 2,341  |   |                   |    | 7,184   |   |   |   | 9,525 |   |
|  Net      assets acquired                                                      |   |                     | 12,490 |   |                   |    | 9,859   |   |   |   | 22,349 |   |
|    Cash      acquired                                                |   |                     | 1,295  |   |                   |    | ─ |   |   |   | 1,295 |   |
|  Net      cash paid                                                            |   |  $                  | 11,195 |   |                   |  $ | 9,859   |   |   |  $ | 21,054 |   |

----

|  ($ in      millions)    |   |   |   |
|------------------------------------|--------|--------|--------|
| Cash      paid                     |   | $      | 1.0    |   |
| Liabilities      assumed           |   |   | 1.0    |   |
| Fair      value of assets acquired |   | $      | 2.0    |   |

|  (In      thousands of dollars, except per share amounts) |   |  Net      Earnings (Numerator) |   | Shares(In      thousands) (Denominator) |   |  Per      Share Amount |   |
|----------------------------------------------------------------|--------|-------------------------------------|--------|-----------------------------------------|--------|-----------------------------|--------|
| 2008                                                           |   |                                |   |                                    |   |                        |   |
| Basic      EPS                                                 |   | $                                   | 29,886 |                                    |   | 33,728                      |   | $ | 0.89 |   |
| Effect      of dilutive securities:                            |   |                                |   |                                    |   |                        |   |   |   |   |
| Equity-based      compensation plans                           |   |                                |   |                                    |   | 453                         |   |   |   |   |
| Convertible      debt                                          |   |                                | 941    |                                    |   | 3,683                       |   |   |   |   |
| Diluted      EPS                                               |   | $                                   | 30,827 |                                    |   | 37,864                      |   | $ | 0.81 |   |
|                                                           |   |                                |   |                                    |   |                        |   |   |   |   |
| 2007                                                           |   |                                |   |                                    |   |                        |   |   |   |   |
| Basic      EPS                                                 |   | $                                   | 25,412 |                                    |   | 35,498                      |   | $ | 0.72 |   |
| Effect      of dilutive securities:                            |   |                                |   |                                    |   |                        |   |   |   |   |
| Equity-based      compensation plans                           |   |                                |   |                                    |   | 472                         |   |   |   |   |
| Convertible      debt                                          |   |                                | 998    |                                    |   | 4,000                       |   |   |   |   |
| Diluted      EPS                                               |   | $                                   | 26,410 |                                    |   | 39,970                      |   | $ | 0.66 |   |
|                                                           |   |                                |   |                                    |   |                        |   |   |   |   |
| 2006                                                           |   |                                |   |                                    |   |                        |   |   |   |   |
| Basic      EPS                                                 |   | $                                   | 24,197 |                                    |   | 35,826                      |   | $ | 0.68 |   |
| Effect      of dilutive securities:                            |   |                                |   |                                    |   |                        |   |   |   |   |
| Equity-based      compensation plans                           |   |                                |   |                                    |   | 402                         |   |   |   |   |
| Convertible      debt                                          |   |                                | 984    |                                    |   | 4,000                       |   |   |   |   |
| Diluted      EPS                                               |   | $                                   | 25,181 |                                    |   | 40,228                      |   | $ | 0.63 |   |

|                                                                                                                 |   | Year      ended December 31, |   |
|----------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
| (Number      of shares in thousands)                                                                                 |   | 2008                         |   | 2007 |   | 2006 |   |
| Stock      options where the exercise price exceeds the average market price of      common shares during the period |   |                         | 810    |   |   | 647 |   |   | 695 |   |

----

|                              |   | 2008                       |    |   | 2007                          |   |
|-----------------------------------|--------|----------------------------|---------|--------|-------------------------------|--------|
| ($      in thousands)             |   | Gross      Carrying Amount |    |   | Accumulated      Amortization |   |   | Gross      Carrying Amount |   |   | Accumulated      Amortization |   |
| Amortized      intangible assets: |   |                       |    |   |                          |   |   |   |   |   |   |   |
| Customer      lists/relationships |   | $                          | 51,084  |   |                          | $      | (15,038 | ) |   | $ | 47,284 |   |   | $ | (12,543 | ) |
| Patents                           |   |                       | 10,319  |   |                          |   | (9,886 | ) |   |   | 10,319 |   |   |   | (8,815 | ) |
| Employment      agreements        |   |                       | — |   |                          |   | — |   |   |   | 142 |   |   |   | (142 | ) |
| Other      intangibles            |   |                       | 500     |   |                          |   | (52 | ) |   |   | 500 |   |   |   | (2 | ) |
| Total                             |   |                       | 61,903  |   |                          |   | (24,976 | ) |   |   | 58,245 |   |   |   | (21,502 | ) |
| Goodwill                          |   |                       | 33,150  |   |                          |   | — |   |   |   | 24,657 |   |   |   | — |   |
| Total      intangible assets      |   | $                          | 95,053  |   |                          | $      | (24,976 | ) |   | $ | 82,902 |   |   | $ | (21,502 | ) |

| ($      in thousands)                                                                                                 |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Revolving      credit agreement, weighted-average interest rate of 3.3% (2008) and 5.6%      (2007),      due in 2011 |   | $      | 48,000 |   |   | $      | 12,000 |   |
| Convertible,      senior subordinated debentures at a weighted-average rate of 2.125%, due      in      2024          |   |   | 32,500 |   |   |   | 60,000 |   |
| Total      long-term debt                                                                                             |   | $      | 80,500 |   |   | $      | 72,000 |   |

----

----

|                                                                |   | Pension      Plans |    |   | Other      Postretirement Benefit Plan |   |
|---------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------------------------|--------|
| ($ in thousands)                                                    |   | 2008               |    |   | 2007                                   |   |   | 2008 |   |   | 2007 |   |
| Accumulated      benefit obligation                                 |   | $                  | 198,400 |   |                                   | $      | 201,767 |   |   | $ | 4,726 |   |   | $ | 5,723 |   |
| Change      in projected benefit obligation:                        |   |               |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Projected      benefit obligation at January 1                      |   | $                  | 210,228 |   |                                   | $      | 216,927 |   |   | $ | 5,723 |   |   | $ | 5,338 |   |
| Service      cost                                                   |   |               | 3,532   |   |                                   |   | 4,763 |   |   |   | 20 |   |   |   | 22 |   |
| Interest      cost                                                  |   |               | 13,068  |   |                                   |   | 11,961 |   |   |   | 368 |   |   |   | 333 |   |
| Plan      amendment and other                                       |   |               | (2,227  | )      |                                   |   | 1,468 |   |   |   | — |   |   |   | — |   |
| Actuarial      (gain) loss                                          |   |               | (4,517  | )      |                                   |   | (11,849 | ) |   |   | (1,250 | ) |   |   | 164 |   |
| Benefits      paid                                                  |   |               | (13,687 | )      |                                   |   | (13,042 | ) |   |   | (135 | ) |   |   | (134 | ) |
| Curtailment                                                         |   |               | (420    | )      |                                   |   | — |   |   |   | — |   |   |   | — |   |
| Projected      benefit obligation at December 31                    |   | $                  | 205,977 |   |                                   | $      | 210,228 |   |   | $ | 4,726 |   |   | $ | 5,723 |   |
| Change      in plan assets:                                         |   |               |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Assets      at fair value at January 1                              |   | $                  | 308,851 |   |                                   | $      | 306,344 |   |   | $ | — |   |   | $ | — |   |
| Actual      return on assets                                        |   |               | (82,107 | )      |                                   |   | 12,209 |   |   |   | — |   |   |   | — |   |
| Company      contributions                                          |   |               | 2,361   |   |                                   |   | 3,070 |   |   |   | 135 |   |   |   | 134 |   |
| Benefits      paid                                                  |   |               | (13,649 | )      |                                   |   | (13,042 | ) |   |   | (135 | ) |   |   | (134 | ) |
| Other                                                               |   |               | (2,070  | )      |                                   |   | 270 |   |   |   | — |   |   |   | — |   |
|     Assets      at fair value at December 31    |   | $                  | 213,386 |   |                                   | $      | 308,851 |   |   | $ | — |   |   | $ | — |   |
| Funded      status (plan assets less projected benefit obligations) |   | $                  | 7,409   |   |                                   | $      | 98,623 |   |   | $ | (4,726 | ) |   | $ | (5,723 | ) |

|                             |   | Pension      Plans |    |   | Other      Postretirement Benefit Plan |   |
|----------------------------------|--------|--------------------|---------|--------|----------------------------------------|--------|
| ($      in thousands)            |   | 2008               |    |   | 2007                                   |   |   | 2008 |   |   | 2007 |   |
| Prepaid      pension asset       |   | $                  | 18,756  |   |                                   | $      | 107,150 |   |   | $ | — |   |   | $ | — |   |
| Other      accrued liabilities   |   |               | (1,020  | )      |                                   |   | (892 | ) |   |   | (361 | ) |   |   | (377 | ) |
| Other      long-term obligations |   |               | (10,327 | )      |                                   |   | (7,635 | ) |   |   | (4,365 | ) |   |   | (5,346 | ) |
|                             |   | $                  | 7,409   |   |                                   | $      | 98,623 |   |   | $ | (4,726 | ) |   | $ | (5,723 | ) |

| $      in thousands                                       |   | Pension      Plans     |   |   | Post      Retirement Plans |   |
|-----------------------------------------------------------|--------|------------------------|--------|--------|----------------------------|--------|
|                                                      |   | Unrecognized      Loss |   |   | Prior      ServiceCost     |   |   | Total |   |   | UnrecognizedLoss/(Gain) |   |   | Prior      ServiceCost |   |   | Total |   |
| Balance      at January 1, 2008                           |   | $                      | 35,396 |   |                       | $      | 1,965 |   |   | $ | 37,361 |   |   | $ | 134 |   |   | $ | 1 |   |   | $ | 135 |   |
| Amortization      of retirement benefits,      net of tax |   |                   | (1,170 | )      |                       |   | (323 | ) |   |   | (1,493 | ) |   |   | — |   |   |   | (1) |   |   |   | (1 | ) |
| Reclassification      adjustments                         |   |                   | 61,953 |   |                       |   | — |   |   |   | 61,953 |   |   |   |           (752 | ) |   |   | — |   |   |   | (752 | ) |
| Balance      at December 31, 2008                         |   | $                      | 96,179 |   |                       | $      | 1,642 |   |   | $ | 97,821 |   |   | $ | (618 | ) |   | $ | — |   |   | $ | (618 | ) |

----

| ($      in thousands)               |   | 2008   |   |   | 2007   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
| Projected      benefit obligation   |   | $      | 39,190 |   |   | $      | 10,047 |   |
| Accumulated      benefit obligation |   |   | 37,319 |   |   |   | 8,260 |   |
| Fair      value of plan assets      |   |   | 27,843 |   |   |   | 1,520 |   |

|                                                                     |   | Pension      Plans |    |   | Other      Postretirement Benefit Plan |   |
|--------------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------------------------|--------|
| ($      in thousands)                                                    |   | 2008               |    |   | 2007                                   |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Service      cost                                                        |   | $                  | 3,532   |   |                                   | $      | 4,763 |   |   | $ | 5,113 |   |   | $ | 20 |   |   | $ | 22 |   |   | $ | 19 |   |
| Interest      cost                                                       |   |               | 13,068  |   |                                   |   | 11,961 |   |   |   | 12,086 |   |   |   | 368 |   |   |   | 333 |   |   |   | 299 |   |
| Expected      return on plan assets 1                                    |   |               | (26,341 | )      |                                   |   | (25,386 | ) |   |   | (24,739 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Amortization      of unrecognized:                                       |   |               |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transition      obligation                                               |   |               | — |   |                                   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Prior      service cost                                                  |   |               | 538     |   |                                   |   | 923 |   |   |   | 482 |   |   |   | — |   |   |   | 1 |   |   |   | 1 |   |
|     Loss                                             |   |               | 1,699   |   |                                   |   | 3,020 |   |   |   | 2,716 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Curtailment loss                                                    |   |               | — |   |                                   |   | — |   |   |   | 325 |   |   |   | — |   |   |   | — |   |   |   | (81 | ) |
| Additional      cost due to early retirement                             |   |               | 237     |   |                                   |   | 207 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net      (income) expense                                           |   | $                  | (7,267  | )      |                                   | $      | (4,512 | ) |   | $ | (4,017 | ) |   | $ | 388 |   |   | $ | 356 |   |   | $ | 238 |   |
| Weighted-average      actuarial assumptions (2)                          |   |               |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benefit      obligation assumptions:                                     |   |               |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount      rate                                                       |   |               | 6.86    | %      |                                   |   | 6.47 | % |   |   | 5.72 | % |   |   | 6.90 | % |   |   | 6.50 | % |   |   | 5.75 | % |
| Rate      of compensation increase                                       |   |               | 4.80    | %      |                                   |   | 4.81 | % |   |   | 4.78 | % |   |   | — |   |   |   | — |   |   |   | — |   |
| Pension      income/postretirement Expense             assumptions: |   |               |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount      rate                                                       |   |               | 6.44    | %      |                                   |   | 5.71 | % |   |   | 5.92 | % |   |   | 6.50 | % |   |   | 5.75 | % |   |   | 6.00 | % |
| Expected      return on plan assets(1)                                   |   |               | 8.41    | %      |                                   |   | 8.43 | % |   |   | 8.43 | % |   |   | — |   |   |   | — |   |   |   | — |   |
| Rate      of compensation increase                                       |   |               | 4.80    | %      |                                   |   | 4.81 | % |   |   | 4.70 | % |   |   | — |   |   |   | — |   |   |   | — |   |

| (1) |   | Expected      return on plan assets is net of expected investment expenses and certain      administrative expenses. |
|-----|--------|----------------------------------------------------------------------------------------------------------------------|

| (2) |   | During      the fourth quarter of each year, CTS reviews its actuarial assumptions in      light of current economic factors to determine      if the assumptions need to beadjusted. |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   | Target      Allocations |   | Percentage of      Plan Assets at      December 31, |   |
|----------------------------|--------|-------------------------|--------|----------------------------------------------------------|--------|
|  Asset      Category  |   | 2009                    |   | 2008                                                     |   | 2007 |   |
| Equity      securities (1) |   |                    | 70     | %                                                        |   | 56 | % |   | 67 | % |
| Debt      securities       |   |                    | 20     | %                                                        |   | 39 | % |   | 28 | % |
| Other                      |   |                    | 10     | %                                                        |   | 5 | % |   | 5 | % |
| Total                      |   |                    | 100    | %                                                        |   | 100 | % |   | 100 | % |

| (1)   | Equity      securities include CTS common stock in the amounts of approximately $8.0      million (4% of total plan assets) at December 31, 2008 and approximately      $14.5 million (5% of total plan assets) at December 31,    2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ($      in thousands) |   | Pension      Plans |   |   | Other      Postretirement Benefit Plan |   |
|-----------------------|--------|--------------------|--------|--------|----------------------------------------|--------|
| 2009                  |   | $                  | 13,587 |   |                                   | $      | 361 |   |
| 2010                  |   |               | 14,498 |   |                                   |   | 369 |   |
| 2011                  |   |               | 16,706 |   |                                   |   | 374 |   |
| 2012                  |   |               | 15,185 |   |                                   |   | 378 |   |
| 2013                  |   |               | 16,560 |   |                                   |   | 380 |   |
| Thereafter            |   |               | 88,005 |   |                                   |   | 1,854 |   |

----

|                        |   | Year      Ended December 31 |   |
|-----------------------------|--------|-----------------------------|--------|
| ($      in thousands)       |   | 2008                        |   |   | 2007 |   |   | 2006 |   |
| Stock      options 1        |   | $                           | 127    |   |   | $ | 371 |   |   | $ | 1,033 |   |
| Restricted      stock units |   |                        | 3,216  |   |   |   | 2,797 |   |   |   | 2,826 |   |
| Restricted      stock       |   |                        | 32     |   |   |   | 127 |   |   |   | 212 |   |
| Total                       |   | $                           | 3,375  |   |   | $ | 3,295 |   |   | $ | 4,071 |   |

| 1   | Stock      option expense includes $1, $14, and $45 ending December 31, 2008, 2007,      and 2006, respectively, related to non-employee director stock      options. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | 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        |   |   | 236,550 |   |
| Restricted      stock units outstanding |   |           | 700,498   |           |   | —        |   |   | — |   |
| Awards      exercisable                 |   |           | 239,325   |           |   | 743,863        |   |   | 236,550 |   |
| Awards      available for grant         |   |           | 5,075,709 |           |   | —        |   |   | — |   |

|                                      |   | Year      Ended December 31 |      |
|-------------------------------------------|--------|-----------------------------|-----------|
|  ($      in thousands)               |   | 2006                        |      |
| Expected      volatility                  |   |                        | 53.3-58.2 | % |
| Weighted-average      expected volatility |   |                        | 54.1      | % |
| Expected      dividends                   |   |                        | 0.9       | % |
| Expected      term                        |   | 4.0-10.0    years           |      |
| Weighted-average      risk-free rate      |   |                        | 5.1       | % |

| Options                               |   | Shares |      | Weighted-Average      Exercise Price |   | Weighted-Average      Remaining Contractual Term |   | Aggregate      Intrinsic Value |           |
|---------------------------------------|--------|--------|-----------|--------------------------------------|--------|--------------------------------------------------|--------|--------------------------------|----------------|
| Outstanding      at January 1, 2008   |   |   | 1,426,638 |                                 |   | 16.06                                            |   |                           |           |   |   |   |   |
| Granted                               |   |   | —   |                                 |   | —                                          |   |                           |           |   |   |   |   |
| Exercised                             |   |   | (7,100    | )                                    |   | 8.40                                             |   |                           |           |   |   |   |   |
| Expired                               |   |   | (125,275  | )                                    |   | 32.26                                            |   |                           |           |   |   |   |   |
| Outstanding      at December 31, 2008 |   |   | 1,294,263 |                                 |   | 14.53                                            |   |                           | 3.9      years |   |   | — |   |
| Exercisable      at December 31, 2008 |   |   | 1,219,738 |                                 |   | 14.65                                            |   |                           | 3.7      years |   |   | — |   |

----

|                                                  |   | 2008    |    |
|-------------------------------------------------------|--------|---------|---------|
|  ($ in thousands, except per share      amounts) |   | Options |    |   | Weighted      Average Grant-Date Fair Value |   |
| Nonvested      at January 1, 2008                     |   |    | 158,587 |   |   | $ | 6.41 |   |
| Granted                                               |   |    | — |   |   |   | — |   |
| Vested                                                |   |    | (84,062 | ) |   |   | 6.46 |   |
| Forfeited                                             |   |    | — |   |   |   | — |   |
| Nonvested      at December 31, 2008                   |   |    | 74,525  |   |   |   | 6.36 |   |

|                 |                     |             | Options      Outstanding |              | Options      Exercisable |
|----------------------|--------------------------|------------------|--------------------------|-------------------|--------------------------|
|                 |                     |             |                     |              |                     |   | Weighted-Average |   |   |   |   |   |   |   |   |
|                 |                     | Number           |                     | Remaining         |                     | Weighted-Average |   | Number |   | Weighted-Average |
| Range      of        |                     | Outstanding      |                     | Contractual       |                     | Exercise |   | Exercisable |   | Exercise |
| Exercise      Prices |                     | at      12/31/08 |                     | Life      (Years) |                     | Price |   | at      12/31/08 |   | Price |
| $                    | 7.70      – 11.11  |             |                     | 782,263           |                     |   |   | 4.65 |   |   | $ | 9.44 |   |   |   | 749,238 |   |   | $ | 9.37 |   |
|                 | 13.68      – 16.24 |             |                     | 227,800           |                     |   |   | 4.74 |   |   |   | 14.12 |   |   |   | 186,300 |   |   |   | 14.22 |   |
|                 | 23.00      – 33.63 |             |                     | 236,950           |                     |   |   | 1.99 |   |   |   | 24.80 |   |   |   | 236,950 |   |   |   | 24.80 |   |
|                 | 35.97      – 79.25 |             |                     | 47,250            |                     |   |   | 1.37 |   |   |   | 49.21 |   |   |   | 47,250 |   |   |   | 49.21 |   |

----

| RSUs                                  |   | Units  |     |   | Weighted-AverageGrant      DateFair      Value |   |   | Weighted-AverageRemainingContractualTerm |   |   | AggregateIntrinsicValue |   |
|---------------------------------------|--------|--------|----------|--------|------------------------------------------------|--------|--------|------------------------------------------|--------|--------|-------------------------|--------|
| Outstanding      at January 1, 2008   |   |   | 595,148  |   |                                           | $      | 12.14  |                                     |   |   |                    |   |   |   |
| Granted                               |   |   | 319,950  |   |                                           |   | 8.94   |                                     |   |   |                    |   |   |   |
| Converted                             |   |   | (145,360 | )      |                                           |   | 11.87  |                                     |   |   |                    |   |   |   |
| Forfeited                             |   |   | (69,380  | )      |                                           |   | 11.96  |                                     |   |   |                    |   |   |   |
| Outstanding      at December 31, 2008 |   |   | 700,358  |   |                                           | $      | 10.76  |                                     |   |   | 5.9      years          |   |   | $ | 3,860 |   |
| Convertible      at December 31, 2008 |   |   | 83,438   |   |                                           | $      | 11.86  |                                     |   |   | 15.8      years         |   |   | $ | 461 |   |

|                                |   | RSUs   |     |   | Weighted-Average      Grant Date Fair Value |   |
|-------------------------------------|--------|--------|----------|--------|---------------------------------------------|--------|
| Nonvested      at January 1, 2008   |   |   | 531,310  |   |                                        | $      | 12.11 |   |
| Granted                             |   |   | 319,950  |   |                                        |   | 8.94 |   |
| Vested                              |   |   | (164,960 | )      |                                        |   | 11.66 |   |
| Forfeited                           |   |   | (69,380  | )      |                                        |   | 11.96 |   |
| Nonvested      at December 31, 2008 |   |   | 616,920  |   |                                        | $      | 10.61 |   |

----

| ($ In      Thousands)                                                                  |   | 2008   |   |   | 2007   |   |    | 2006   |   |
|----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Domestic                                                                               |   | $      | 7,496  |   |   | $      | 12,065  |   |   | $ | 11,584 |   |
| Non-U.S.                                                                               |   |   | 21,799 |   |   |   | 20,410  |   |   |   | 19,082 |   |
| Total                                                                                  |   | $      | 29,295 |   |   | $      | 32,475  |   |   | $ | 30,666 |   |
|                                                                                   |   |   |   |   |   |   |    |   |   |   |   |   |
|  Significant      components of income tax provision (benefit) are as    follows: |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |    |   |   |   |   |   |
| ($      In Thousands)                                                                  |   | 2008   |   |   | 2007   |   |    | 2006   |   |
| Current:                                                                               |   |   |   |   |   |   |    |   |   |   |   |   |
|      Federal                                                  |   | $      | 42     |   |   | $      | ─ |   |   | $ | 318 |   |
|      State                                                    |   |   | 212    |   |   |   | 463     |   |   |   | 365 |   |
|      Non-U.S.                                                 |   |   | 3,842  |   |   |   | 5,028   |   |   |   | 3,903 |   |
|           Total      Current         |   |   | 4,096  |   |   |   | 5,491   |   |   |   | 4,586 |   |
| Deferred:                                                                              |   |   |   |   |   |   |    |   |   |   |   |   |
|      Federal                                                  |   |   | (612   | )      |   |   | 1,781   |   |   |   | 886 |   |
|      State                                                    |   |   | 331    |   |   |   | 371     |   |   |   | 939 |   |
|      Non-U.S.                                                 |   |   | (4,406 | )      |   |   | (580    | )      |   |   | 58 |   |
|           Total      Deferred        |   |   | (4,687 | )      |   |   | 1,572   |   |   |   | 1,883 |   |
| Total      (Benefit)/Provision for Income Taxes                                        |   | $      | (591   | )      |   | $      | 7,063   |   |   | $ | 6,469 |   |

----

| ($      in thousands)                       |   | 2008   |    |   | 2007   |   |
|---------------------------------------------|--------|--------|---------|--------|--------|--------|
| Pensions                                    |   | $      | 6,238   |   |   | $      | 40,673 |   |
| Depreciation                                |   |   | 2,762   |   |   |   | 1,605 |   |
| Unrealized      Foreign Exchange Gain       |   |   | 1,165   |   |   |   | 1,594 |   |
| Other                                       |   |   | 497     |   |   |   | 4,366 |   |
| Gross      deferred tax liabilities         |   |   | 10,662  |   |   |   | 48,238 |   |
|                                        |   |   |    |   |   |   |   |   |
| Postretirement      benefits                |   |   | 1,654   |   |   |   | 2,018 |   |
| Inventory      reserves                     |   |   | 1,663   |   |   |   | 946 |   |
| Loss      carryforwards                     |   |   | 75,639  |   |   |   | 75,631 |   |
| Credit      carryforwards                   |   |   | 11,834  |   |   |   | 11,669 |   |
| Nondeductible      accruals                 |   |   | 7,762   |   |   |   | 6,402 |   |
| Research      expenditures                  |   |   | 14,525  |   |   |   | 11,497 |   |
| Other                                       |   |   | 5,611   |   |   |   | 1,824 |   |
| Gross      deferred tax assets              |   |   | 118,688 |   |   |   | 109,987 |   |
|                                        |   |   |    |   |   |   |   |   |
| Net      deferred tax assets                |   |   | 108,026 |   |   |   | 61,749 |   |
| Deferred      tax asset valuation allowance |   |   | (18,512 | )      |   |   | (19,406 | ) |
| Total                                       |   | $      | 89,514  |   |   | $      | 42,343 |   |

|                                                                        |   | 2008   |    | 2007  |    | 2006   |    |
|-----------------------------------------------------------------------------|--------|--------|---------|-------|---------|--------|---------|
| Taxes      at the U.S. statutory rate                                       |   | 35.00  | %  | 35.00 | %  | 35.00  | %  |
| State      income taxes, net of federal income tax benefit                  |   |   | 1.20    | %     |    | 1.67   | %       |   | 2.80 | % |
| Non-US      income taxed at rates different than the U.S. statutory    rate |   |   | (18.38  | )%    |    | (16.00 | )%      |   | (15.60 | )% |
| Tax      exempt earnings                                                    |   |   | 0.00    | %     |    | (0.00  | )%      |   | (0.40 | )% |
| Benefit      of scheduled tax credits                                       |   |   | (1.16   | )%    |    | (0.20  | )%      |   | (1.20 | )% |
| Other                                                                       |   |   | 0.12    | %     |    | 1.28   | %       |   | 0.50 | % |
| Tax      rate before the benefit of reversal of reserves                    |   |   | 16.78   | %     |    | 21.75  | %       |   | 21.10 | % |
| Benefit      of Tax Treaty Change                                           |   |   | (4.63   | )%    |    | 0.00   | %       |   | 0.00 | % |
| Adjustments      to Valuation Allowances                                    |   |   | (14.17  | )%    |    | 0.00   | %       |   | 0.00 | % |
| Effective      income tax rate                                              |   |   | (2.02   | )%    |    | 21.75  | %       |   | 21.10 | % |

----

|  ($      in thousands)                                       |   | 2008   |   |
|-------------------------------------------------------------------|--------|--------|--------|
| Balance      at January 1, 2008                                   |   | $      | 4,356  |   |
|                                                              |   |   |   |   |
| Additions      based on tax positions related to the current year |   |   | 85     |   |
| Additions      for tax positions of prior years                   |   |   | 25     |   |
| Balance      at December 31, 2008                                 |   | $      | 4,466  |   |

----

| ($      in thousands)                |   | EMS    |    |   | Components      & Sensors |   |    | Total  |   |
|--------------------------------------|--------|--------|---------|--------|-------------------------------|--------|---------|--------|--------|
| 2008                                 |   |   |    |   |                          |   |    |   |   |
| Net      sales to external customers |   | $      | 399,294 |   |                          | $      | 292,413 |   |   | $ | 691,707 |   |
| Segment      operating earnings      |   |   | 12,362  |   |                          |   | 24,553  |   |   |   | 36,915 |   |
| Total      assets                    |   |   | 187,024 |   |                          |   | 301,431 |   |   |   | 488,455 |   |
| Depreciation      and amortization   |   |   | 7,550   |   |                          |   | 16,628  |   |   |   | 24,178 |   |
| Capital      expenditures            |   |   | 6,536   |   |                          |   | 11,111  |   |   |   | 17,647 |   |
|                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| 2007                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| Net      sales to external customers |   | $      | 405,708 |   |                          | $      | 280,237 |   |   | $ | 685,945 |   |
| Segment      operating earnings      |   |   | 10,175  |   |                          |   | 24,716  |   |   |   | 34,891 |   |
| Total      assets                    |   |   | 180,785 |   |                          |   | 362,907 |   |   |   | 543,692 |   |
| Depreciation      and amortization   |   |   | 7,103   |   |                          |   | 15,715  |   |   |   | 22,818 |   |
| Capital      expenditures            |   |   | 7,730   |   |                          |   | 8,328   |   |   |   | 16,058 |   |
|                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| 2006                                 |   |   |    |   |                          |   |    |   |   |   |   |   |
| Net      sales to external customers |   | $      | 385,744 |   |                          | $      | 269,870 |   |   | $ | 655,614 |   |
| Segment      operating earnings      |   |   | 6,179   |   |                          |   | 30,963  |   |   |   | 37,142 |   |
| Total      assets                    |   |   | 169,623 |   |                          |   | 358,210 |   |   |   | 527,833 |   |
| Depreciation      and amortization   |   |   | 6,843   |   |                          |   | 18,053  |   |   |   | 24,896 |   |
| Capital      expenditures            |   |   | 6,057   |   |                          |   | 9,730   |   |   |   | 15,787 |   |

----

|                                                                                     |   | Year      Ended December 31, |   |
|------------------------------------------------------------------------------------------|--------|------------------------------|--------|
| ($      in thousands)                                                                    |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
| Total      segment operating earnings                                                    |   | $                            | 36,915 |   |   | $ | 34,891 |   |   | $ | 37,142 |   |
| Interest      expense                                                                    |   |                         | (3,814 | ) |   |   | (3,100 | ) |   |   | (3,654 | ) |
| Interest      income                                                                     |   |                         | 1,421  |   |   |   | 2,052 |   |   |   | 934 |   |
| Other      income (expense)                                                              |   |                         | 858    |   |   |   | 1,248 |   |   |   | 568 |   |
| Restructuring      and restructuring-related charges - Components and  Sensors |   |                         | (4,999 | ) |   |   | (788 | ) |   |   | (3,849 | ) |
| Restructuring      and restructuring-related charges – EMS                         |   |                         | (1,086 | ) |   |   | (1,828 | ) |   |   | (475 | ) |
| Earnings      before income taxes                                                        |   | $                            | 29,295 |   |   | $ | 32,475 |   |   | $ | 30,666 |   |

|                        |   | Year      Ended December 31, |    |
|-----------------------------|--------|------------------------------|---------|
|  ($      in thousands) |   | 2008                         |    |   | 2007 |   |   | 2006 |   |
| Net      Sales              |   |                         |    |   |   |   |   |   |   |
| United      States          |   | $                            | 327,631 |   |   | $ | 270,123 |   |   | $ | 263,097 |   |
| Singapore                   |   |                         | 121,396 |   |   |   | 158,092 |   |   |   | 173,118 |   |
| United      Kingdom         |   |                         | 43,012  |   |   |   | 82,162 |   |   |   | 82,178 |   |
| China                       |   |                         | 98,002  |   |   |   | 90,033 |   |   |   | 77,713 |   |
| Canada                      |   |                         | 47,810  |   |   |   | 50,151 |   |   |   | 40,277 |   |
| Other      non-U.S.         |   |                         | 53,856  |   |   |   | 35,384 |   |   |   | 19,231 |   |
| Consolidated      net sales |   | $                            | 691,707 |   |   | $ | 685,945 |   |   | $ | 655,614 |   |

|                                |   | Year      Ended December 31, |   |
|-------------------------------------|--------|------------------------------|--------|
|  ($      in thousands)         |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
| Long-Lived      Assets              |   |                         |   |   |   |   |   |   |   |
| United      States                  |   | $                            | 30,340 |   |   | $ | 25,916 |   |   | $ | 24,296 |   |
| China                               |   |                         | 34,999 |   |   |   | 34,291 |   |   |   | 35,560 |   |
| United      Kingdom                 |   |                         | 6,331  |   |   |   | 11,528 |   |   |   | 15,637 |   |
| Singapore                           |   |                         | 6,823  |   |   |   | 8,439 |   |   |   | 9,845 |   |
| Canada                              |   |                         | 3,198  |   |   |   | 4,570 |   |   |   | 5,373 |   |
| Taiwan                              |   |                         | 4,957  |   |   |   | 3,349 |   |   |   | 2,065 |   |
| Other      non-U.S                  |   |                         | 4,108  |   |   |   | 4,732 |   |   |   | 3,692 |   |
| Consolidated      long-lived assets |   | $                            | 90,756 |   |   | $ | 92,825 |   |   | $ | 96,468 |   |

----

| ($ in      millions)                                                                                         January 2006 Plan |   | PlannedCosts |   |   | Actualincurred      through December 31, 2006 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |         |   |   |                                          |   |   |   |
| Workforce      reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $            | 3.1    |   |                                          | $      | 2.6 |   |
| Postemployment      obligation curtailment net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |         | 0.2    |   |                                          |   | 0.2 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |         | 0.1    |   |                                          |   | 0.1 |   |
| Restructuring      charge                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         | 3.4    |   |                                          |   | 2.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |         |   |   |                                          |   |   |   |
| Equipment      relocation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         | 0.3    |   |                                          |   | 0.5 |   |
| Other      employee related costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |         | 0.3    |   |                                          |   | 0.5 |   |
| Restructuring-related      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |         | 0.6    |   |                                          |   | 1.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |         |   |   |                                          |   |   |   |
| Total      restructuring and restructuring-related costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $            | 4.0    |   |                                          | $      | 3.9 |   |

| ($ in      millions)                                                                                               November 2007 Plan |   | Planned      Costs |   |   | 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)                                                                                                          November 2007      Plan |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
| Restructuring      liability at January 1, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 0.6    |   |
| Restructuring      charge                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 0.3    |   |
| Cost      paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (0.9   | )  |
| Restructuring      liability at December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $      | 0.0    |   |

| ($ in      millions)                                                                                                        September 2008 Plan |   | Planned      Costs |   |   | Actual      incurred throughDecember      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, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 0.0    |   |
| Restructuring      and restructuring-related charges, excluding asset impairments and      write-offs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 4.1    |   |
| Cost      paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (2.4   | ) |
| Restructuring      liability at December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 1.7    |   |

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|             |   | Net      Sales |    |   | Gross      Margins |   |    | Operating      Earnings |   |   | Net      Earnings |   |
|------------------|--------|----------------|---------|--------|--------------------|--------|---------|-------------------------|--------|--------|-------------------|--------|
| 2008             |   |           |    |   |               |   |    |                    |   |   |              |   |
| 4th      quarter |   | $              | 162,827 |   |               | $      | 29,746  |                    |   | $      | 3,780             |   |   | $ | 5,652 |   |
| 3rd      quarter |   |           | 170,034 |   |               |   | 33,350  |                    |   |   | 4,885             |   |   |   | 7,611 |   |
| 2nd      quarter |   |           | 186,091 |   |               |   | 40,153  |                    |   |   | 13,784            |   |   |   | 9,957 |   |
| 1st      quarter |   |           | 172,755 |   |               |   | 33,824  |                    |   |   | 8,381             |   |   |   | 6,666 |   |
|             |   | $              | 691,707 |   |               | $      | 137,073 |                    |   | $      | 30,830            |   |   | $ | 29,886 |   |
|             |   |           |    |   |               |   |    |                    |   |   |              |   |   |   |   |   |
| 2007             |   |           |    |   |               |   |    |                    |   |   |              |   |   |   |   |   |
| 4th      quarter |   | $              | 178,273 |   |               | $      | 35,617  |                    |   | $      | 9,508             |   |   | $ | 7,667 |   |
| 3rd      quarter |   |           | 174,790 |   |               |   | 33,793  |                    |   |   | 9,917             |   |   |   | 7,794 |   |
| 2nd      quarter |   |           | 169,624 |   |               |   | 32,944  |                    |   |   | 7,902             |   |   |   | 5,905 |   |
| 1st      quarter |   |           | 163,258 |   |               |   | 30,338  |                    |   |   | 4,948             |   |   |   | 4,046 |   |
|             |   | $              | 685,945 |   |               | $      | 132,692 |                    |   | $      | 32,275            |   |   | $ | 25,412 |   |

|                                    |   | Additions                           |   |                    |
|-----------------------------------------|--------|-------------------------------------|--------|-------------------------|
|                                    |   | Balance      at Beginning of Period |   | Charged      to Expense |   | Charged      to Other Accounts |   | Deductions |   | Balance      at End      of      Period |
|                                    |
|                                    |   | (In      thousands of dollars)      |
| Year      ended December 31, 2008: |   |                                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for doubtful accounts    |   | $                                   | 1,304  |                    |   | $ | 874 |   |   | $ | — |   |   | $ | (13 | ) |   | $ | 2,165 |   |
|                                    |
| Inventory      reserve provision        |   | $                                   | 6,392  |                    |   | $ | 5,144 |   |   | $ | — |   |   | $ | (4,755 | ) |   | $ | 6,781 |   |
|                                    |
| Year      ended December 31, 2007: |   |                                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for doubtful accounts    |   | $                                   | 2,139  |                    |   | $ | 122 |   |   | $ | — |   |   | $ | (957 | ) |   | $ | 1,304 |   |
|                                    |
| Inventory      reserve provision        |   | $                                   | 5,428  |                    |   | $ | 3,713 |   |   | $ | — |   |   | $ | (2,749 | ) |   | $ | 6,392 |   |
|                                    |
| Year      ended December 31, 2006: |   |                                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for doubtful accounts    |   | $                                   | 2,373  |                    |   | $ | 883 |   |   | $ | — |   |   | $ | (1,117 | )(1) |   | $ | 2,139 |   |
|                                    |
| Inventory      reserve provision        |   | $                                   | 6,187  |                    |   | $ | 3,184 |   |   | $ | — |   |   | $ | (3,943 | ) |   | $ | 5,428 |   |

| (1)   | Majority      of deductions relates to the write-off of receivables due from Delphi      Automotive Systems, which declared Chapter 11    bankruptcy. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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