Report of Independent Auditors
Board of Directors
and Shareholders
Sypris Solutions, Inc.
We have audited
the accompanying consolidated balance sheets of Sypris Solutions, Inc.
(and predecessor entities as described in Note 1) as of December 31, 1999
and 1998, and the related consolidated statements of income, shareholders'
equity, and cash flows for each of the three years in the period ended
December 31, 1999. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted
our audits in accordance with auditing standards generally accepted in
the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion,
the consolidated financial statements referred to above present fairly,
in all material respects, the
consolidated financial position of Sypris Solutions, Inc. at December
31, 1999 and 1998, and the consolidated results of its operations and
its cash flows for each of the three years in the period ended December
31, 1999, in conformity with accounting principles generally accepted
in the United States.
Louisville, Kentucky
February 4, 2000
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Consolidated Income Statements
Consolidated Statements of Cash Flows