Eden Prairie, MN. – MTS Systems Corporation (NASDAQ: MTSC) a leading global supplier of test systems and industrial position sensors, announced today that it has reached an agreement in principle with the U.S. Attorney’s Office for the District of Minnesota (“USAO”), subject to the approval of the U.S. Department of Justice (“DOJ”), settling, for $7.75 million, the DOJ’s potential claims against the Company for its past disclosures on its government certifications and representations in connection with federal government contracting. The settlement is not final until approved by the DOJ and until the Company and the USAO have signed the written settlement agreement. If approved, the agreement would conclude the U.S. Department of Commerce (“DOC”) and USAO investigation of the Company’s government contracting compliance policies, general government contracting compliance record and practices in areas including export controls and government contracts.

“We are very pleased to have reached a settlement agreement in principle with the U.S. Government,” said Dr. Jeffrey A. Graves, President and Chief Executive Officer. “The resolution of this matter has been a top priority for the Company. We have invested significant resources to improve our government contracting and general compliance infrastructure during the last eighteen months. As a result, we are a stronger company today and remain committed to meeting the government’s fully responsible contractor status.”

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 2,003 employees and revenue of $467 million for the fiscal year ended October 1, 2011. Additional information on MTS can be found on the worldwide web at https://www.mts.com