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CTS Pursues Patent Infringement Litigation with TK Holdings, Inc. (Takata)

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^{Published in Science and Technology on Monday, December 6th 2010 at 15:00 GMT by Market Wire}  

ELKHART, Ind.--([ BUSINESS WIRE ])--CTS Corporation (NYSE: CTS) today announced it is pursing resolution of patent infringement litigation with TK Holdings, Inc. (Takata). CTS originally put Takata on notice of patent infringement in late 2005. From then to present, Takata has sold products estimated to exceed $100 million, which are covered by one or more of CTSa™ patents that are the subject of the litigation. An estimate of the typical royalties for intellectual property use/infringement, for products such as these, range from about 3% - 5%.

A first phase of the litigation was recently concluded with the adoption by the U.S. District Court in Detroit of CTSa™ interpretation of certain of its patent claims. The next phase is set to begin on December 14, 2010, when the Court will issue discovery and trial scheduling orders.

CTS places a high value on its intellectual property and will take whatever steps necessary to protect and defend its position.

About CTS

CTS is a leading designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services (EMS) to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS.a To find out more, visit the CTS Web site at [ www.ctscorp.com ].

Safe Harbor Statement

This press release contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events and any other statements that are not based solely on historical fact. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements, including, without limitation: changes in the economy generally and in respect to the businesses in which CTS operates; pricing pressures and reduction in demand for CTSa™ products, especially if economic conditions do not recover or continue to worsen in CTSa™ served markets, including but not limited to: the automotive, computer equipment or communications markets; disruption, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged by CTS and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability or ongoing viability; risks associated with CTSa™ international operations, including trade and tariff barriers; currency fluctuations and their effects on our results of operations and financial position; changes in performance of equity and debt markets that could affect the valuation of the assets in CTSa™ pension plans and the accounting for pension assets, liabilities and expenses; political and geopolitical risks; rapid technological change in the automotive, communications and computer industries; reliance on key customers; CTSa™ ability to protect its intellectual property; and potential costs and liabilities related to the recent Toyota recall. For more detailed information on the risks and uncertainties associated with CTSa™ business, see the reports CTS files with the Securities and Exchange Commission available at [ http://www.ctscorp.com/investor_relations/investor.htm ]. CTS undertakes no obligation to publicly update its forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes.