DYNAMICS CORP &lt;DYA> IN SETTLEMENT WITH CTS &lt;CTS>

  Dynamics Corp of America said
  it has reached an agreement with CTS Corp resolving all
  differences between the two companies.
      It said as a result of the settlement, CTS's special board
  committee has stopped soliciting orders to purchase some or all
  of CTS.
      Dynamics, which now owns 27.5 pct of CTS' outstanding
  stock, said it agreed to limit its shareholdings to not more
  than 35 pct of the outstanding shares for a year following the
  company's 1987 annual meeting.
      Dynamics said the CTS board will recommend CTS shareholders
  vote at the 1987 annual meeting in favor of the company paying
  Dynamics 2,178,000 dlrs as a reimbursement for its CTS releated
  costs and granting Dynamics an option to buy enough CTS common
  at 29.625 dlrs a share to give it ownership of 35 pct of the
  outstanding stock.
      Dynamics said the price of stock under the option,
  exercisable for one year, is based on the average closing price
  for the stock for the five days ending March two.
      Dynamics said CTS Chairman George F. Sommer will assume the
  additional title of President. Former President Robert D.
  Hostetler is resigning as a director, as is Chief Financial
  Officer Gary B. Erekson, Ted Ross and Donald J. Kacek.
      Dynamics said the CTS board will be reduced to seven
  members for eight with the remaining four members of the
  current board and three representatives of Dynamics as new
  directors.
  

