CTS increase revenue 12%

The fourth quarter revenue increase from 2005 was driven by a 17% increase in EMS segment sales, reflecting increased penetration in defense/aerospace, medical and communications markets. Components and Sensors segment sales increased 5%, primarily from strong automotive new product demand. Sales increases in these areas were partially offset by general weakness in electronic component demand, lower component sales for handset applications, which is a market the Company has now exited, and lost sales stemming from the fourth quarter 2005 divestiture of the Low Temperature Co-fired Ceramic (LTCC) product line. Full-year 2006 revenue of $655.6 million increased 6% over 2005. Components and Sensors segment sales increased 7% year-over-year with automotive product revenues growing 13% and sales into infrastructure applications growing over 20%. EMS segment sales increased 6% year-over-year, primarily due to stronger growth in defense/aerospace and medical markets and higher demand for communications infrastructure products. Full-year 2006 net earnings of $24.2 million, increased over the 2005 restated net earnings of $20.8 million. The Company expects 2007 to be another year of sales and earnings growth. Management currently expects full-year 2007 sales to increase 7% to 10% over 2006, Components & Sensors: Components and Sensors sales in the fourth quarter of 2006 increased by $3.4 million, or 5%, from the fourth quarter of 2005, reflecting continued strong sales growth in new automotive products, partially offset by declining component sales into mobile handset applications, which we have now exited, and from the divestiture of the LTCC product line in 2005. Operating earnings of $6.4 million declined $5.8 million from the restated fourth quarter of 2005, primarily due to higher than planned production costs for a new automotive product, commodity price increases and reduced pension income. In addition, the fourth quarter 2005 earnings benefited from a $2.3 million gain on the sale of assets. Segment sales increased by $0.8 million, or 1%, over the third quarter of 2006, primarily from improved automotive product demand, offset by generally weaker electronic component demand. Segment operating earnings increased $0.7 million over the third quarter of 2006, primarily from the impact of higher royalties and slightly higher volumes. EMS: EMS fourth quarter 2006 sales increased by $15.5 million, or 17%, from 2005, mainly driven by increased sales in the defense/aerospace, medical and communications markets, partially offset by lower demand for computer data storage equipment. Segment operating earnings of $2.7 million were $1.4 million higher than the restated fourth quarter of 2005 primarily on higher volumes. Fourth quarter 2006 EMS sales increased $7.0 million, or 7%, over third quarter 2006 from increased penetration in defense/aerospace and medical markets, partially offset by lower demand for computer data storage equipment. Operating earnings decreased $0.9 million from the third quarter of 2006, primarily from expenses incurred in a new customer start-up, excessive freight costs, labor inefficiencies and pricing pressures, partially offset by the impact of higher sales.