FOR IMMEDIATE RELEASE

August 9, 2005

For More Information Contact:

Paul Runice, Treasurer

(952) 937-4003

MTS Completes Divestiture of Engine Test Business

Eden Prairie, Minn., Aug. 8, 2005 – MTS Systems Corporation (NASDAQ: MTSC) today announced it has completed the divestiture of its Powertrain Technology division located in Ann Arbor, MI to A&D Company Ltd. (TSE Second Section: 7745). The division, which provides engine test equipment, software and services, represents less than 5% of MTS Systems’ consolidated revenue and assets in the current fiscal year. The Company expects to record a gain on the sale of the division, which will be accounted for as a discontinued operation in the fourth quarter of fiscal 2005. Terms of the transaction were not disclosed.

“This divestiture represents a sharpening of the focus of MTS’ Test Segment on our core markets where we have the best opportunities for market leadership and profitable growth,” stated Sidney W. Emery, Jr., Chairman and CEO of MTS Systems Corporation. “While exiting the engine test business, we expect to continue providing test solutions to the ground vehicle drivetrain market.”

Miller Johnson Steichen Kinnard, Inc. of Minneapolis, MN was the financial advisor to MTS Systems Corporation for this transaction.

About MTS Systems Corporation:

MTS Systems Corporation is a global supplier of testing products and industrial sensors. MTS testing products help customers accelerate and improve their design, development, and manufacturing processes and are used for determining the mechanical behavior of materials, products, and structures. They include computer-based mechanical testing and simulation systems, modeling and testing software, and consulting services. MTS position sensors are used to improve the productivity, performance and safety of a wide variety of industrial equipment. MTS had 1,615 employees and revenue of $367 million for the fiscal year ended October 2, 2004. Additional information on MTS can be found on the worldwide web at http://www.mts.com.