Item 2.05. Costs Associated with Exit or Disposal Activities.

On July 16, 2009, MTS Systems Corporation (the "Company") announced a workforce reduction in response to the continued weakness in industrial capital spending.

The Company-wide workforce reduction impacts approximately 65 positions and includes both immediate actions as well as those taken in April 2009. As a result, the Company will record a pre-tax charge of $1.2 million for severance costs in the third quarter of fiscal 2009, ended June 27, 2009. A majority of this charge will result in future cash expenditures.

Combined with the actions announced today, the Company anticipates further workforce and cost reduction actions in the fourth quarter related to material sourcing and process and structure improvements. These actions will result in annual savings of $15-20 million for fiscal 2010.

A copy of the press release announcing this action is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01. Exhibits.

(d) Exhibits.

Exhibit No. Description of Exhibit
99.1 Press Release dated July 16, 2009.

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