News Release

FOR IMMEDIATE RELEASE
January 24, 2017

For more information contact:
Andy Cebulla
Director of Investor Relations and Treasurer
952.937.4000

MTS ANNOUNCES RECEIPT OF EXTENDED DEADLINE TO PROVIDE FINANCIAL INFORMATION AND REAFFIRMS PRELIMINARY FISCAL 2016 RESULTS

Eden Prairie, Minn. – January 24, 2017 – MTS Systems Corporation (NASDAQ: MTSC) (the “Company”), a leading global supplier of high-performance test systems and sensors, today announced that the lenders under its current credit agreement have waived any default that would have resulted from failure to provide the Company’s audited financial statements for the fiscal year ended October 1, 2016 (“Fiscal 2016”). The lenders have consented to allow the Company to deliver the Company’s audited financial statements for Fiscal 2016, and the Company’s unaudited financial statements for the first quarter of the 2017 fiscal year, no later than April 24, 2017.

In addition, the Company reaffirms its preliminary financial results for Fiscal 2016 that were initially provided by the Company on November 29, 2016.  The Company continues to expect preliminary full-year revenue for Fiscal 2016 to be in the range of $645 million to $650 million and preliminary GAAP EPS for Fiscal 2016 to be in the range of $1.65 to $1.70.

Dr. Jeffrey Graves, President and Chief Executive Officer of MTS, stated, “We are pleased to have received the consent from our lenders allowing us additional time to provide our financial results for our 2016 fiscal year and the first quarter of fiscal 2017. We believe this will allow us adequate time to complete our internal investigation into apparent code of conduct violations in our China operations and to provide our financial results to our lenders and investors. Also, based on the progress of the investigation, we feel comfortable reaffirming the previously disclosed preliminary financial results for our 2016 fiscal year.”

About MTS Systems Corporation

MTS Systems Corporation’s testing hardware, software and services 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’s high-performance sensors provide controls for a variety of applications measuring motion, pressure, position, force and sound. MTS had 2,400 employees as of October 3, 2015 and revenue of $564 million for the fiscal year ended October 3, 2015. Additional information on MTS can be found at http://www.mts.com.