FOR IMMEDIATE RELEASE

January 6, 2003

For More Information Contact:

Susan Knight, Chief Financial Officer

(952) 937-4000

Nasdaq Notifies MTS of Full Compliance with Listing Requirements;

SEC Requests Information on Restatement

Eden Prairie, Minn., January 6, 2003 – MTS Systems Corporation (NASDAQ: MTSC) today announced that it has been notified by the Nasdaq National Market that MTS is now in full compliance with Nasdaq’s continued listing requirements. The letter “E,” designating the exception status, will be removed from the trading symbol effective with the opening of trading tomorrow, January 7, 2003. MTS also today announced that it is responding to an informal inquiry made by the Securities and Exchange Commission (SEC). As expected, the inquiry was prompted by the Company’s recently filed restatement of financial results of prior quarters and fiscal years.

As previously communicated, MTS received a notice on September 24, 2002 indicating the Company was not in compliance with Nasdaq’s continued listing rules requiring companies to obtain reviews of interim financial information by their independent auditors prior to filing Form 10-Q reports with the SEC. The non-compliance occurred because the Company’s new auditor, KPMG LLP, had not completed its third quarter review pending the Company’s analysis of the timing of a number of adjustments that were made during the first nine months of its fiscal year. As of December 27, 2002, MTS had completed and filed with the SEC its annual Form 10-K and amended quarterly reports for each of the first three quarters of fiscal 2002.

About MTS Systems Corporation

MTS Systems Corporation is a global supplier of integrated simulation solutions that help customers accelerate and improve their design, development and manufacturing processes. MTS supplies products for determining the mechanical behavior of materials, products and structures – including computer-based testing and simulation systems, modeling and testing software, and consulting services – as well as products for automating manufacturing processes. MTS had 1,900 employees and revenue of $356 million for the fiscal year ended September 28, 2002. Additional information on MTS can be found on the worldwide web at http://www.mts.com.