News Release

    FOR IMMEDIATE RELEASE
    August 30, 2006

    For More Information Contact:
    Paul Runice, Treasurer
    952-937-4003

    MTS Systems Corporation Increases Dividend by 10%

    Eden Prairie, MN., August 30, 2006 – MTS Systems Corporation (NASDAQ: MTSC) today announced that its Board of Directors has declared a fourth quarter dividend of 11 cents per share, a 10% increase in the quarterly common dividend. The dividend represents MTS Systems Corporation’s ninety-ninth consecutive quarterly dividend.

    “This dividend increase is consistent with our policy of distributing one-quarter of the Company’s earnings to shareholders over the long run,” said Sidney W. Emery, Jr., Chairman and Chief Executive Officer. It reflects management and the Board’s confidence in MTS’ global business momentum, the quality of our earnings as evidenced by strong and stable cash flow, and our sound financial position.”

    The new regular quarterly dividend of 11 cents increases the annualized dividend to 44 cents per share. The fourth quarter dividend will be paid October 2, 2006 to shareholders of record September 14, 2006. MTS Systems Corporation had about 18.172 million shares outstanding at the end of the third fiscal quarter July 1, 2006.

    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 1,549 employees and revenue of $374 million for the fiscal year ended October 1, 2005. Additional information on MTS can be found on the worldwide web at http://www.mts.com.

    Any statement in this release which is not historical should be considered a “forward-looking statement” pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which is subject to certain risks, uncertainties, and assumptions which could cause actual results to differ materially from historical results or those currently anticipated or projected. Some, but not all, of these factors are presented in the Company’s filings with the SEC, including those in the most recent Form 10-K and Form 10-Q. Management does not undertake to update these statements or risks based upon information in the future.