FOR IMMEDIATE RELEASE

January 7, 2005

For More Information Contact:

Stuart Carver

Motorsports Market Manager

952-937-4959

B•A•R Honda Selects MTS for New Performance Testing Systems

Eden Prairie, Minn. – Jan. 7, 2005 – MTS Systems Corporation (NASDAQ: MTSC) today announced that the B•A•R Honda Formula 1 team has selected the Company to provide rolling road and model motion systems for the new B•A•R Honda wind tunnel to be built at the team’s headquarters located in Brackley, U.K.

“The high accuracy and repeatability of MTS’ model motion system coupled with the ability to run the rolling road system at very high speeds in the wind tunnel with both model scale and full scale cars are key to B•A•R Honda meeting its competitive objectives over the coming racing seasons,” said Geoffrey Willis, Technical Director at B•A•R Honda. “The systems supplied by MTS will provide us with greater, more accurate aerodynamic information and insight, and give us the tools necessary to allow us to realize our goal of winning the Formula 1 World Championship,” Willis said.

“Wind tunnel applications of rolling road and model motion systems are fast becoming key components in the development of high performance vehicles – both racing and passenger cars. We are pleased that B•A•R Honda has chosen MTS for these state-of-the-art testing systems,” said Sidney W. Emery, Jr., MTS Chairman and CEO. “This selection continues to support our objective of being the leading supplier of testing solutions to enhance new product development worldwide,” Emery said.

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 is the worldwide leading supplier of rolling road and model motion systems for aerodynamic development of ground vehicles. MTS delivers cutting edge dynamometer technology for the testing of Motorsports’ powertrains as well as chassis dynamics systems, durability systems, and tire test systems to the Motorsports Industry worldwide. 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.

For further information on the B•A•R Honda F1 Team, please contact:

Tracy Novak, Communications Manager, B•A•R Honda

Tel: +44 (0)7736 630753 (Mobile)

+44 (0)1280 844212 (Direct)

Email: tnovak@BARf1.com