News Release

FOR IMMEDIATE RELEASE
August 20, 2007

For More Information Contact:
Paul Runice, Treasurer
952.937.4003

MTS Systems Corporation Increases Dividend by 36%

Eden Prairie, Minn. – August 20, 2007 – MTS Systems Corporation (NASDAQ: MTSC) today announced that it’s Board of Directors has declared a fourth quarter dividend of 15 cents per share, a 36% increase in the quarterly common dividend. The dividend represents MTS’ 103rd consecutive quarterly dividend.

“This increase in our regular dividend reflects management’s and the Board’s confidence in MTS’ global business momentum, strong cash flow and sound financial position,” said Sidney W. Emery, Jr., Chairman and Chief Executive Officer. “We have significant market positions in our Test and Sensor Segments with strategies to profitably grow in both. This increase is consistent with our policy to return one-quarter of our earnings to shareowners over the long term.”

The new regular quarterly dividend of 15 cents increases the annualized dividend to 60 cents per share. The fourth quarter dividend will be paid October 1, 2007 to shareowners of record September 14, 2007. MTS had about 17.8 million shares outstanding at the end of the third fiscal quarter June 30, 2007.

About MTS Systems Corporation
MTS Systems Corporation is a leading global supplier of test systems and industrial position sensors. The Company’s testing hardware, software, and service 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 enhance control to improve the productivity and safety of fixed and mobile industrial equipment. MTS had 1,510 employees and revenue of $397 million for the fiscal year ended September 30, 2006. Additional information on MTS can be found on the worldwide web at http://www.mts.com

This release contains “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from historical results and those presently anticipated or projected. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to the factors discussed above, other important risk factors are delineated in the Company’s most recent SEC Form 10-Q and 10-K filings.