Exhibit 99.1

MTS Systems Corporation
14000 Technology Drive
Eden Prairie, MN  55344-2290
Telephone 952-937-4000
Fax 952-937-4515News Release




FOR IMMEDIATE RELEASEApril 25, 2007
        For More Information Contact:
Susan Knight, Chief Financial Officer(952) 937-4000
Paul Runice, Treasurer(952) 937-4003




MTS Reports Second Quarter EPS of $0.56, Raises Full Year Guidance

Eden Prairie, Minn., April 25, 2007  MTS Systems Corporation (NASDAQ: MTSC) today reported second quarter earnings of $0.56 per diluted share on net income of $10.3 million, a decrease of 3 percent compared to earnings of $0.58 per diluted share on net income of $11.3 million for second quarter fiscal 2006.

Revenue and earnings results for the second quarter were in line with our expectations, said Sidney W. Emery, Jr., Chairman and CEO. Orders growth of 19 percent was excellent, following 15 percent growth in the first quarter. The second quarter revenue and EPS reflect healthy operating performance in Test and robust worldwide growth in Sensors. Considering the solid first half results, together with our outlook for a strong second half of the year, we are raising our full year guidance. The revised outlook for fiscal 2007 revenue is $405-$415 million, compared to the previous outlook of $400-$410 million, and the revised outlook for EPS is $2.15-$2.25, versus our previously communicated guidance range of $2.10-$2.20.

Second quarter orders totaled $97.0 million, an increase of 19 percent compared to orders of $81.5 million for second quarter fiscal 2006, primarily driven by Test segment orders in North America and Asia and worldwide growth in the Sensors segment, as well as an estimated $2.4 million favorable impact of currency translation. Backlog decreased 2 percent in the quarter, from $208 million to $204 million. This compares to backlog of $195 million at the end of second quarter fiscal 2006.

Revenue for the second quarter totaled $101.8 million, a 1 percent decrease compared to revenue of $102.9 million for second quarter fiscal 2006. This decrease was primarily due to decreased custom business in Test, partially offset by continued growth in Sensors and an estimated $3.4 million favorable impact of currency translation.

Gross profit for second quarter was $45.9 million, flat compared to gross profit of $45.8 million for second quarter fiscal 2006. Gross margin rate for the second quarter was strong, at 45.1 percent, compared to 44.5 percent for second quarter fiscal 2006. Margin associated with increased volume in Sensors offset the impact of unfavorable product mix in Test. Second quarter income from operations totaled $16.7 million, a decrease of 2 percent compared to income from operations of $17.1 million for second quarter fiscal 2006. This decrease in income from operations was primarily due to planned increases in sales, marketing and R&D spending.

Second quarter net income was $10.3 million, a decrease of 9 percent compared to net income of $11.3 million for second quarter fiscal 2006. This decrease was driven by lower income from operations and a $1.1 million unfavorable impact of foreign currency transaction losses. Reduced shares outstanding positively impacted earnings per diluted share by $0.03 for the quarter.

Cash, cash equivalents and short-term investments at the end of the second quarter totaled $117 million, compared to $115 million at the end of first quarter 2007. The Company generated positive operating cash flow of $31.3 million in the second quarter, of which $23.8 million was used to purchase approximately 600,000 shares of the Companys common stock.



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Segment Results

Test Segment:

Second quarter orders for the Test segment were $77.3
million, an increase of 19 percent compared to orders of $65.1 million for second quarter fiscal 2006, reflecting an increase in North America and Asia and an estimated $1.5 million favorable impact of currency translation, partially
offset by decreased volume in Europe. Orders included one large custom order in excess of $5 million. Backlog decreased 3 percent
in the quarter, from $200 million to $195 million. Second quarter revenue was $82.9 million, a decrease of 5 percent compared to
$87.0 million for second quarter fiscal 2006, reflecting decreased project revenue, partially offset by an estimated $2.6 million
favorable impact of currency translation. Second quarter gross profit was $35.5 million, a decrease of 5 percent compared to $37.4
million for second quarter fiscal 2006, primarily due to decreased volume and unfavorable product mix, partially offset by an
estimated $0.6 million favorable impact of currency translation. Income from operations for second quarter fiscal 2007 was $12.8
million, a decrease of 12 percent compared to income from operations of $14.6 million for second quarter fiscal 2006.

Sensors Segment:

Second quarter orders for the Sensors segment were $19.7 million, an increase of 20 percent compared to orders of $16.4 million for second quarter fiscal 2006, reflecting business growth in all geographies and an estimated $0.9 million favorable impact of currency translation. Backlog increased 13 percent in the quarter, from $8 million to $9 million. Second quarter revenue was $18.9 million, an increase of 19 percent compared to revenue of $15.9 million for second quarter fiscal 2006, driven by increased worldwide volume and an estimated $0.8 million favorable impact of currency translation. Second quarter gross profit was $10.4 million, an increase of 24 percent compared to $8.4 million for second quarter fiscal 2006, reflecting increased volume, improved capacity utilization, and an estimated $0.4 million favorable impact of currency translation. Income from operations for second quarter fiscal 2007 was
$3.9 million, an increase of 56 percent compared to income from operations of $2.5 million for second quarter fiscal 2006, primarily due to increased gross profit, partially offset by planned increases in operating expenses.

Second Quarter Conference Call

A conference call will be held on Thursday, April 26, 2007, at 10:00 a.m. EDT (9:00 a.m. CDT). Call +1-706-634-9986; and state the Conference ID 5631947. Telephone re-play will be available through 11:59 p.m. EDT, May 3, 2007. Call +1-706-645-9291.

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 event notice. The webcast will be archived through 11:59 p.m. EDT, July 24, 2007.

About MTS Systems Corporation

MTS Systems Corporation is a leading global supplier of test systems and industrial position sensors. The Companys testing hardware, software and service 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 enhance control to improve the productivity and safety of fixed and mobile industrial equipment. MTS had 1,510 employees and revenue of $397 million for the fiscal year ended September 30, 2006. Additional information on MTS can be found on the worldwide web athttp://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 SYSTEMS CORPORATION

Consolidated Statements of Income

(unaudited - in thousands, except per share data)



Three Months Ended
        
        Six Months EndedMarch 31,2007
        
        April 1,2006
        
        March 31,2006
        
        April 1,2006Revenue:Product
        
        $
        87,365
        
        $
        89,035
        
        $
        172,521
        
        $
        168,524Service
        
        
        14,465
        
        
        13,833
        
        
        28,365
        
        
        26,187Total revenue
        
        
        101,830
        
        
        102,868
        
        
        200,886
        
        
        194,711Cost of sales:Product
        
        
        48,755
        
        
        50,882
        
        
        98,606
        
        
        95,897Service
        
        
        7,206
        
        
        6,205
        
        
        14,303
        
        
        12,464Total cost of sales
        
        
        55,961
        
        
        57,087
        
        
        112,909
        
        
        108,361Gross profit
        
        
        45,869
        
        
        45,781
        
        
        87,977
        
        
        86,350Operating expenses:Selling and marketing
        
        
        17,293
        
        
        15,933
        
        
        34,232
        
        
        31,937General and administrative
        
        
        7,810
        
        
        8,896
        
        
        15,823
        
        
        17,000Research and development
        
        
        4,847
        
        
        4,694
        
        
        9,381
        
        
        8,841Total operating expenses
        
        
        29,950
        
        
        29,523
        
        
        59,436
        
        
        57,778Gain on sale of assets
        
        
        763
        
        
        860
        
        
        763
        
        
        860Income from operations
        
        
        16,682
        
        
        17,118
        
        
        29,304
        
        
        29,432Interest expense
        
        
        (331
        )
        
        (415
        )
        
        (669
        )
        
        (869
        )Interest income
        
        
        958
        
        
        782
        
        
        1,883
        
        
        1,464Other (expense) income, net
        
        
        (885
        )
        
        302
        
        
        (810
        )
        
        327Income before income taxes
        
        
        16,424
        
        
        17,787
        
        
        29,708
        
        
        30,354Provision for income taxes
        
        
        6,093
        
        
        6,488
        
        
        9,260
        
        
        11,099Net income
        
        $
        10,331
        
        $
        11,299
        
        $
        20,448
        
        $
        19,255Earnings per share:Basic-Earnings per share
        
        $
        0.57
        
        $
        0.59
        
        $
        1.12
        
        $
        1.00Weighted average number of common shares outstanding - basic
        
        
        18,159
        
        
        19,072
        
        
        18,200
        
        
        19,263Diluted-Earnings per share
        
        $
        0.56
        
        $
        0.58
        
        $
        1.10
        
        $
        0.97Weighted average number of common shares outstanding - diluted
        
        
        18,536
        
        
        19,580
        
        
        18,568
        
        
        19,792




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MTS SYSTEMS CORPORATION

Consolidated Balance Sheets

(unaudited - in thousands, except per share data)



March 31,2007
        
        September 30,2006ASSETSCurrent Assets:Cash and cash equivalents
        
        $
        99,905
        
        $
        97,962Short-term investments
        
        
        17,490
        
        
        23,575Accounts receivable, net of allowances for doubtful accounts
        
        
        65,471
        
        
        72,997Unbilled accounts receivable
        
        
        36,125
        
        
        27,132Inventories
        
        
        43,747
        
        
        40,480Prepaid expenses
        
        
        4,284
        
        
        3,180Current deferred tax assets
        
        
        5,430
        
        
        5,134Other current assets
        
        
        499
        
        
        1,065Assets of discontinued operations
        
        
        241
        
        
        803Total current assets
        
        
        273,192
        
        
        272,328Property and Equipment:Land
        
        
        1,668
        
        
        1,668Buildings and improvements
        
        
        43,291
        
        
        42,072Machinery and equipment
        
        
        85,086
        
        
        78,651Accumulated depreciation
        
        
        (82,987
        )
        
        (78,777
        )Total property and equipment, net
        
        
        47,058
        
        
        43,614Goodwill
        
        
        4,513
        
        
        4,466Other assets
        
        
        3,385
        
        
        2,102Non-current deferred tax assets
        
        
        1,801
        
        
        1,613Total Assets
        
        $
        329,949
        
        $
        324,123LIABILITIES AND SHAREHOLDERS INVESTMENTCurrent Liabilities:Notes payable
        
        $
        238
        
        $
        222Current maturities of long-term debt
        
        
        6,683
        
        
        6,683Accounts payable
        
        
        18,933
        
        
        17,090Accrued payroll and related costs
        
        
        24,769
        
        
        29,273Advance payments from customers
        
        
        58,665
        
        
        51,356Accrued warranty costs
        
        
        5,582
        
        
        5,894Accrued income taxes
        
        
        5,013
        
        
        512Current deferred income taxes
        
        
        5,093
        
        
        4,643Other accrued liabilities
        
        
        11,894
        
        
        15,125Total current liabilities
        
        
        136,870
        
        
        130,798Deferred income taxes
        
        
        2,544
        
        
        2,487Long-term debt, less current maturities
        
        
        7,837
        
        
        8,990Other long-term liabilities
        
        
        13,728
        
        
        12,527Total Liabilities
        
        
        160,979
        
        
        154,802Shareholders Investment:Common stock, $.25 par; 64,000 shares authorized:17,680 and 18,216 shares issued and outstanding
        
        
        4,420
        
        
        4,554Retained earnings
        
        
        149,199
        
        
        152,657Accumulated other comprehensive income
        
        
        15,351
        
        
        12,110Total shareholders investment
        
        
        168,970
        
        
        169,321Total Liabilities and Shareholders Investment
        
        $
        329,949
        
        $
        324,123




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MTS SYSTEMS CORPORATION

Consolidated Statements of Cash Flows

(unaudited - in thousands)



Three Months Ended
        
        Six Months EndedMarch 31, 2007
        
        April 1, 2006
        
        March 31, 2007
        
        April 1, 2006Cash flows from operating activities:Net income
        
        $
        10,331
        
        $
        11,299
        
        $
        20,448
        
        $
        19,255Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
        
        
        2,018
        
        
        1,971
        
        
        3,949
        
        
        3,869Gain on sale of assets
        
        
        (763
        )
        
        (860
        )
        
        (763
        )
        
        (860
        )Deferred income taxes
        
        
        (13
        )
        
        
        
        
        (192
        )
        
        Bad debt provision
        
        
        32
        
        
        42
        
        
        70
        
        
        113Stock-based compensation
        
        
        1,309
        
        
        1,226
        
        
        2,624
        
        
        2,142Equity compensation income tax benefits
        
        
        (381
        )
        
        (811
        )
        
        (539
        )
        
        (971
        )Changes in operating assets and liabilities:Accounts and unbilled contracts receivable
        
        
        3,034
        
        
        (6,500
        )
        
        428
        
        
        (14,759
        )Inventories
        
        
        (2,072
        )
        
        (2,323
        )
        
        (2,597
        )
        
        (2,261
        )Prepaid expenses
        
        
        95
        
        
        (1,234
        )
        
        (1,525
        )
        
        (3,522
        )Other assets
        
        
        1,135
        
        
        795
        
        
        (2,188
        )
        
        406Accounts payable
        
        
        2,337
        
        
        512
        
        
        1,634
        
        
        1,447Accrued payroll and related costs
        
        
        4,085
        
        
        4,300
        
        
        (3,548
        )
        
        (5,864
        )Advance payments from customers
        
        
        8,608
        
        
        (8,917
        )
        
        6,561
        
        
        9,171Accrued warranty costs
        
        
        (184
        )
        
        (563
        )
        
        (412
        )
        
        (825
        )Other current liabilities
        
        
        1,725
        
        
        2,505
        
        
        2,975
        
        
        5,374Operating activities of discontinued operations
        
        
        8
        
        
        (380
        )
        
        546
        
        
        (463
        )Net cash provided by operating activities
        
        
        31,304
        
        
        1,062
        
        
        27,471
        
        
        12,252Cash flows from investing activities:Additions to property and equipment
        
        
        (3,954
        )
        
        (2,326
        )
        
        (5,840
        )
        
        (3,939
        )Proceeds from maturity of short-term investments
        
        
        21,885
        
        
        54,277
        
        
        29,385
        
        
        90,632Purchases of short-term investments
        
        
        (16,250
        )
        
        (23,125
        )
        
        (23,300
        )
        
        (37,007
        )Net proceeds from sale of businesses
        
        
        1,000
        
        
        400
        
        
        1,000
        
        
        (90
        )Net cash provided by investing activities
        
        
        2,681
        
        
        29,226
        
        
        1,245
        
        
        49,596Cash flows from financing activities:Net proceeds under short-term borrowings
        
        
        3
        
        
        71
        
        
        15
        
        
        53Payments of long-term debt
        
        
        (1,154
        )
        
        (1,162
        )
        
        (1,154
        )
        
        (1,178
        )Equity compensation income tax benefits
        
        
        381
        
        
        811
        
        
        539
        
        
        971Cash dividends
        
        
        (4,036
        )
        
        (1,865
        )
        
        (6,062
        )
        
        (3,856
        )Proceeds from exercise of stock options and employee stock purchase plan
        
        
        1,763
        
        
        2,096
        
        
        2,358
        
        
        2,600Payments to purchase and retire common stock
        
        
        (23,784
        )
        
        (37,331
        )
        
        (25,869
        )
        
        (59,508
        )Net cash used in financing activities
        
        
        (26,827
        )
        
        (37,380
        )
        
        (30,173
        )
        
        (60,918
        )Effect of exchange rate on changes in cash
        
        
        860
        
        
        1,501
        
        
        3,400
        
        
        86Net increase (decrease) in cash and cash equivalents
        
        
        8,018
        
        
        (5,591
        )
        
        1,943
        
        
        1,016Cash and cash equivalents, at beginning of period
        
        
        91,887
        
        
        89,750
        
        
        97,962
        
        
        83,143Cash and cash equivalents, at end of period
        
        $
        99,905
        
        $
        84,159
        
        $
        99,905
        
        $
        84,159Supplemental disclosure of cash flow information:Cash paid during the period for -Interest expense
        
        $
        272
        
        $
        392
        
        $
        546
        
        $
        785Income taxes
        
        $
        4,139
        
        $
        1,990
        
        $
        4,963
        
        $
        7,207




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