SYSTEMS

MTS Systems Corporation (NASDAQ:MTSC) today announced that its Board of Directors has declared a fourth quarter dividend of 8 cents per share, a 33% increase in the quarterly common dividend. The dividend represents MTS Systems Corporation's 91st consecutive quarterly dividend. "This dividend increase reflects management and the Board's confidence in MTS' financial position, strong cash flow and business momentum worldwide," said Sidney W. Emery, Jr., Chairman and Chief Executive Officer. "We have strong market positions in our two business segments with solid strategies to profitably grow our market share in both. This increase is consistent with our long standing dividend policy to pay out one-quarter of our earnings to our shareholders over the long term." The regular fourth quarter dividend of 8 cents (32 cents per share new annual rate) will be paid October 1, 2004 to shareholders of record September 17, 2004. MTS Systems Corporation has approximately 20,443,000 shares outstanding.