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MTS SYSTEMS CORPORATION
14000 Technology Drive
Eden Prairie, MN  55344-2290
Telephone 952-937-4000
FAX 952-937-4515
--------------------------------------------------------------------------------

NEWS RELEASE

FOR IMMEDIATE RELEASE                   For More Information Contact:
APRIL 26, 2006                          Susan Knight, Chief Financial Officer
                                        (952) 937-4000
                                        Paul Runice, Treasurer
                                        (952) 937-4003


MTS REPORTS 51% INCREASE IN SECOND QUARTER EPS BEFORE STOCK COMPENSATION
EXPENSE; RAISES FULL YEAR EPS OUTLOOK

Eden Prairie, Minn., April 26, 2006 - MTS Systems Corporation (NASDAQ: MTSC)
today reported second quarter earnings of $0.58 per diluted share on net income
of $11.3 million, an increase of 41 percent compared to earnings of $0.41 per
diluted share on net income of $8.5 million for the comparable period in fiscal
2005. Excluding $0.9 million stock compensation expense in the second quarter,
earnings per diluted share would have been $0.62, an increase of 51 percent over
the comparable period in fiscal 2005. Earnings for second quarter fiscal 2006
included a $0.9 million pre-tax gain on the sale of assets associated with the
Company's noise and vibration business.

"The earnings performance for the quarter was very positive," said Sidney W.
Emery, Jr., Chairman and CEO. "Our revenue and gross profit results were
indicative of strong operating performance, which -- along with our recent block
share buyback -- has caused us to raise our full year EPS guidance. The revised
outlook for fiscal 2006 earnings per share is $1.80-$1.90, compared to the
previous outlook of $1.66-$1.76. Despite delayed orders in the quarter, we are
confirming our revenue guidance range of $395-$405 million for the year."

Second quarter orders totaled $81.5 million, down 34 percent compared to orders
of $123.1 million for second quarter fiscal 2005, primarily due to a decrease in
large custom orders in the Test segment. Second quarter fiscal 2005 orders
included two multi-year orders, totaling $43 million, in the ground vehicles and
aerospace markets. Backlog decreased 10 percent in the quarter, to $195 million
from $216 million.

Revenue for the second quarter totaled $102.9 million, up 7 percent compared to
$96.1 million for second quarter fiscal 2005. This increase was primarily
attributable to increased short-cycle and service business in the Test segment
and continued growth in the Industrial segment, partially offset by an estimated
$5.2 million unfavorable impact of currency translation.

Gross profit for the second quarter was $45.8 million, an increase of 8 percent
compared to $42.3 million for second quarter fiscal 2005. This increase was
primarily due to increased volume in both segments and reduced Test segment
warranty expense. The favorable gross profit was partially offset by an
estimated $1.3 million unfavorable impact of currency translation. Second
quarter income from operations totaled $17.1 million, up 17 percent compared to
income from operations of $14.6 million for second quarter fiscal 2005. This
increase was due to higher gross profit and a $0.9 million pre-tax gain on sale
of assets of the Company's noise and vibration business, partially offset by
planned increases in operating expenses, $1.2 million of stock compensation
expense, and an estimated $0.6 million unfavorable impact of currency
translation. Net income for the second quarter was $11.3 million, an increase of
33 percent compared to net income of $8.5 million for second quarter fiscal
2005, driven by higher income from operations and a $1.2 million loss from
discontinued operations in second quarter 2005.


<PAGE>

MTS News Release
Page 2

Cash, cash equivalents and short-term investments at the end of the second
quarter totaled $107 million, reflecting the use of $37.3 million in cash to
purchase shares of the Company's common stock during the second quarter,
compared to $144 million at the end of first quarter fiscal 2006.

SEGMENT RESULTS
---------------

TEST SEGMENT:

Test segment orders totaled $65.1 million for second quarter fiscal 2006, a
decrease of 39 percent compared to orders of $107.2 million for second quarter
fiscal 2005, reflecting a decrease in large custom orders. Second quarter
fiscal 2005 orders included two multi-year orders totaling $43 million.
Backlog decreased 10 percent in the quarter, to $189 million from $210
million. Second quarter revenue was $87.0 million, an increase of 8 percent
compared to $80.7 million for second quarter fiscal 2005, reflecting an
increase in short-cycle and service business, partially offset by an estimated
$4.2 million unfavorable impact of currency translation. Second quarter gross
profit was $37.4 million, an increase of 6 percent compared to $35.3 million
for second quarter fiscal 2005, primarily due to higher volume and reduced
warranty expense, partially offset by unfavorable product mix and an estimated
$0.8 million unfavorable impact of currency translation. Income from
operations for second quarter fiscal 2006 totaled $14.6 million, up 14 percent
compared to income from operations of $12.8 million for second quarter fiscal
2005. The increase was primarily attributable to increased gross profit and a
$0.9 million gain on sale of assets of the Company's noise and vibration
business, partially offset by planned increases in operating expenses, $1.1
million of stock compensation expense, and an estimated $0.3 million
unfavorable impact of currency translation.

INDUSTRIAL SEGMENT:

Industrial segment orders totaled $16.4 million for the quarter, an increase
of 3 percent compared to orders of $15.9 million for second quarter fiscal
2005, reflecting continued growth in the Sensors business in Europe and Asia.
Backlog of $6 million was essentially flat in the quarter. Second quarter
revenue was $15.9 million, an increase of 3 percent compared to revenue of
$15.4 million for second quarter fiscal 2005, net of an estimated $1.0 million
unfavorable impact of currency translation. Second quarter gross profit was
$8.4 million, an increase of 20 percent compared to $7.0 million for second
quarter fiscal 2005. The improvement in gross profit was attributable to
favorable product mix and prior year charges associated with product line
changes, partially offset by an estimated $0.5 million unfavorable impact of
currency translation in second quarter fiscal 2006. Income from operations for
second quarter fiscal 2006 was $2.5 million, an increase of 39 percent
compared to income from operations of $1.8 million for second quarter fiscal
2005, primarily due to higher volume, partially offset by an estimated $0.3
million unfavorable impact of currency translation.

NON-GAAP FINANCIAL MEASURES

A reconciliation of financial results before and after the impact of stock
compensation expense is included in this release as Exhibit A. This
reconciliation includes financial measures that do not reflect generally
accepted accounting principles (GAAP). These non-GAAP financial measures are
provided for additional clarification of the Company's financial performance.
Investors should consider these non-GAAP financial measures in addition to,
not as a substitute for or better than, financial measures prepared in
accordance with GAAP.


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MTS News Release
Page 3


SECOND QUARTER CONFERENCE CALL
------------------------------

A conference call will be held on Thursday, April 27, at 10:00 a.m. EDT (9:00
a.m. CDT). Call +1-785-832-1508; and state the Conference ID "MTS" or Program
Title "MTS Quarterly Conference Call." Telephone re-play will be available
through 11:59 p.m. EDT, May 11, 2006. Call +1-402-220-2673.

If you prefer to listen live over the Internet, please log on to the web at
http://www.mts.com/news/financial_news.htm and click on the webcast link.
The call will be archived through 11:59 p.m. EDT, July 25, 2006.

ABOUT MTS SYSTEMS CORPORATION
-----------------------------

MTS Systems Corporation is a leading global supplier of test systems and
industrial position sensors. The Company's testing hardware and software
solutions help customers accelerate and improve their design, development, and
manufacturing processes and are used for determining the mechanical behavior
of materials, products, and structures. MTS' high-performance position sensors
provide controls for a variety of industrial and vehicular applications. MTS
had 1,549 employees and revenue of $374 million for the fiscal year ended
October 1, 2005. Additional information on MTS can be found on the worldwide
web at http://www.mts.com.

THIS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" MADE PURSUANT TO THE SAFE
HARBOR PROVISION OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 THAT
ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES, AS WELL AS ASSUMPTIONS, THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM HISTORICAL RESULTS AND
THOSE PRESENTLY ANTICIPATED OR PROJECTED. THE COMPANY DOES NOT UNDERTAKE ANY
OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENT, WHETHER
AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. IN ADDITION TO THE
FACTORS DISCUSSED ABOVE, OTHER IMPORTANT RISK FACTORS ARE DELINEATED IN THE
COMPANY'S MOST RECENT SEC FORM 10-Q AND 10-K FILINGS.


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MTS News Release
Page 4

                             MTS SYSTEMS CORPORATION
                        Consolidated Statements of Income
                (unaudited - in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                        Three Months Ended         Six Months Ended
                                                                      ----------------------    ----------------------
                                                                       APRIL 1,     April 2,     APRIL 1,     April 2,
                                                                         2006         2005         2006         2005
                                                                      ---------    ---------    ---------    ---------
<S>                                                                   <C>          <C>          <C>          <C>
 Revenue:
   Product                                                            $  89,035    $  83,597    $ 168,524    $ 166,829
   Service                                                               13,833       12,518       26,187       22,367
                                                                      ---------    ---------    ---------    ---------
     Total revenue                                                      102,868       96,115      194,711      189,196
                                                                      ---------    ---------    ---------    ---------
 Cost of sales:
   Product                                                               50,882       47,857       95,897       95,973
   Service                                                                6,205        5,912       12,464       11,141
                                                                      ---------    ---------    ---------    ---------
     Total cost of sales                                                 57,087       53,769      108,361      107,114
                                                                      ---------    ---------    ---------    ---------
       Gross profit                                                      45,781       42,346       86,350       82,082
                                                                      ---------    ---------    ---------    ---------

 Operating expenses:
   Selling                                                               15,933       16,016       31,937       31,199
   General and administrative                                             8,896        7,824       17,000       14,745
   Research and development                                               4,694        3,910        8,841        7,625
                                                                      ---------    ---------    ---------    ---------
     Total operating expenses                                            29,523       27,750       57,778       53,569
                                                                      ---------    ---------    ---------    ---------

 Gain on sale of assets                                                     860           --          860           --
                                                                      ---------    ---------    ---------    ---------

 Income from operations                                                  17,118       14,596       29,432       28,513
                                                                      ---------    ---------    ---------    ---------

 Interest expense                                                          (415)        (520)        (869)      (1,115)
 Interest income                                                            782          485        1,464          890
 Other income, net                                                          302          269          327          424
                                                                      ---------    ---------    ---------    ---------

 Income before income taxes and discontinued operations                  17,787       14,830       30,354       28,712
 Provision for income taxes                                               6,488        5,151       11,099       10,301
                                                                      ---------    ---------    ---------    ---------
 Income before discontinued operations                                   11,299        9,679       19,255       18,411
                                                                      ---------    ---------    ---------    ---------

 Discontinued operations:
   Loss from discontinued operations, net of tax                             --       (1,206)          --       (1,746)
                                                                      ---------    ---------    ---------    ---------
 Net income                                                           $  11,299    $   8,473    $  19,255    $  16,665
                                                                      =========    =========    =========    =========

Earnings per share:
   Basic-
     Income before discontinued operations                            $    0.59    $    0.49    $    1.00    $    0.93
     Discontinued operations:
       Loss from discontinued operations, net of tax                         --        (0.06)          --        (0.09)
                                                                      ---------    ---------    ---------    ---------
     Earnings per share                                               $    0.59    $    0.43    $    1.00    $    0.84
                                                                      =========    =========    =========    =========
     Weighted average number of common shares outstanding - basic         9,072       19,857       19,263       19,783
                                                                      =========    =========    =========    =========

   Diluted-
     Income before discontinued operations                            $    0.58    $    0.47    $    0.97    $    0.89
     Discontinued operations:
       Loss from discontinued operations, net of tax                         --        (0.06)          --        (0.08)
                                                                      ---------    ---------    ---------    ---------
     Earnings per share                                               $    0.58    $    0.41    $    0.97    $    0.81
                                                                      =========    =========    =========    =========
     Weighted average number of common shares outstanding - diluted      19,580       20,654       19,792       20,625
                                                                      =========    =========    =========    =========
</TABLE>


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MTS News Release
Page 5

                             MTS SYSTEMS CORPORATION
                           Consolidated Balance Sheets
                (unaudited - in thousands, except per share data)

<TABLE>
<CAPTION>

                                                                APRIL 1,    October 1,
                                                                 2006          2005
                                                               ---------    ---------
<S>                                                            <C>          <C>
ASSETS

  Current Assets:
   Cash and cash equivalents                                      $  84,159    $  83,143
   Short-term investments                                            23,025       76,650
   Accounts receivable, net of allowances for doubtful accounts      73,682       64,363
   Unbilled accounts receivable                                      30,271       25,093
   Inventories                                                       40,505       38,029
   Prepaid expenses                                                   4,790        2,600
   Current deferred tax assets                                        6,418        6,415
   Other current assets                                               2,217        2,351
   Assets of discontinued operations                                  1,433        1,710
                                                                  ---------    ---------
     Total current assets                                           266,500      300,354
                                                                  ---------    ---------

  Property and Equipment:
   Land                                                               1,668        1,668
   Buildings and improvements                                        41,048       40,906
   Machinery and equipment                                           76,659       72,837
   Accumulated depreciation                                         (76,153)     (72,458)
                                                                  ---------    ---------
     Total property and equipment, net                               43,222       42,953
                                                                  ---------    ---------

  Goodwill                                                            4,428        4,423
  Other assets                                                        2,119        2,291
  Non-current deferred tax assets                                     1,710        1,711
                                                                  ---------    ---------
  Total Assets                                                    $ 317,979    $ 351,732
                                                                  =========    =========

LIABILITIES AND SHAREHOLDERS' INVESTMENT

  Current Liabilities:
   Notes payable                                                  $   1,579    $   1,582
   Current maturities of long-term debt                               6,683        6,708
   Accounts payable                                                  17,567       16,142
   Accrued payroll-related costs                                     23,719       31,059
   Advance payments from customers                                   58,487       49,901
   Accrued warranty costs                                             4,511        5,333
   Accrued income taxes                                               6,546        3,643
   Current deferred income taxes                                      3,792        3,767
   Other accrued liabilities                                         17,152       15,026
   Liabilities of discontinued operations                               150          890
                                                                  ---------    ---------
     Total current liabilities                                      140,186      134,051
                                                                  ---------    ---------

  Deferred income taxes                                               2,314        2,310
  Long-term debt, less current maturities                            14,519       15,673
  Other long-term liabilities                                        11,834       11,266
                                                                  ---------    ---------
  Total Liabilities                                                 168,853      163,300
                                                                  ---------    ---------

  Shareholders' Investment:
   Common stock, $.25 par; 64,000 shares authorized:
     18,200 and 19,664 shares issued and outstanding                  4,550        4,916
   Retained earnings                                                135,755      173,487
   Accumulated other comprehensive income                             8,821       10,029
                                                                  ---------    ---------
     Total shareholders' investment                                 149,126      188,432
                                                                  ---------    ---------
  Total Liabilities and Shareholders' Investment                  $ 317,979    $ 351,732
                                                                  =========    =========
</TABLE>


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MTS News Release
Page 6

                                    EXHIBIT A

                             MTS SYSTEMS CORPORATION
                    Stock Compensation Expense Reconciliation
                (unaudited - in thousands, except per share data)


<TABLE>
<CAPTION>

                                                                        Three Months Ended     Six Months Ended
                                                                       -------------------   -------------------
                                                                       APRIL 1,   April 2,   APRIL 1,   April 2,
                                                                         2006       2005       2006       2005
                                                                       --------   --------   --------   --------

<S>                                                                    <C>        <C>        <C>        <C>
REVENUE                                                                $102,868   $ 96,115   $194,711   $189,196
                                                                       --------   --------   --------   --------

GROSS PROFIT:
Before stock compensation expense                                      $ 46,153   $ 42,346   $ 86,840   $ 82,082
Stock compensation expense                                                  372         --        490         --
                                                                       --------   --------   --------   --------
    Gross profit                                                       $ 45,781   $ 42,346   $ 86,350   $ 82,082
                                                                       --------   --------   --------   --------

OPERATING EXPENSES:

Selling expense before stock compensation expense                      $ 15,684   $ 16,016   $ 31,413   $ 31,199
Stock compensation expense                                                  249         --        524         --
                                                                       --------   --------   --------   --------
    Selling expense                                                    $ 15,933   $ 16,016   $ 31,937   $ 31,199
                                                                       --------   --------   --------   --------

General and administrative expense before stock compensation expense   $  8,310   $  7,824   $ 15,911   $ 14,745
Stock compensation expense                                                  586         --      1,089         --
                                                                       --------   --------   --------   --------
    General and administrative expense                                 $  8,896   $  7,824   $ 17,000   $ 14,745
                                                                       --------   --------   --------   --------

Research and development expense before stock compensation expense     $  4,675   $  3,910   $  8,802   $  7,625
Stock compensation expense                                                   19         --         39         --
                                                                       --------   --------   --------   --------
    Research and development expense                                   $  4,694   $  3,910   $  8,841   $  7,625
                                                                       --------   --------   --------   --------

Total operating expenses before stock compensation expense             $ 28,669   $ 27,750   $ 56,126   $ 53,569
Stock compensation expense                                                  854         --      1,652         --
                                                                       --------   --------   --------   --------
    Total operating expenses                                           $ 29,523   $ 27,750   $ 57,778   $ 53,569
                                                                       --------   --------   --------   --------

INCOME FROM OPERATIONS:
Before stock compensation expense                                      $ 18,344   $ 14,596   $ 31,574   $ 28,513
Stock compensation expense                                                1,226         --      2,142         --
                                                                       --------   --------   --------   --------
    Income from operations                                             $ 17,118   $ 14,596   $ 29,432   $ 28,513
                                                                       --------   --------   --------   --------

NET INCOME:
Before stock compensation expense                                      $ 12,193   $  8,473   $ 20,826   $ 16,665
Stock compensation expense                                                  894         --      1,571         --
                                                                       --------   --------   --------   --------
    Net income                                                         $ 11,299   $  8,473   $ 19,255   $ 16,665
                                                                       --------   --------   --------   --------

EARNINGS PER SHARE - DILUTED:
Before stock compensation expense                                      $   0.62   $   0.41   $   1.05   $   0.81
Stock compensation expense                                                 0.04         --       0.08         --
                                                                       --------   --------   --------   --------
    Earnings per share - diluted                                       $   0.58   $   0.41   $   0.97   $   0.81
                                                                       --------   --------   --------   --------
</TABLE>