Sypris Solutions is a diversified provider of technology-based outsource services and specialized industrial products. The Company performs a wide range of manufacturing and technical services, typically under long-term contracts with major manufacturers. We also manufacture and sell complex data storage systems, magnetic instruments, current sensors, high-pressure closures and a variety of other industrial products. Our mission is to become the leading value-added supplier in each of our unique, technically sophisticated niche markets.

Years ended December 31                         1999          1998     Change
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(in thousands, except for per share data)

Income Statement Data:
Net revenue                                $ 202,130     $ 211,625     (4.5%)
Gross profit                                  44,949        47,923     (6.2%)
Operating income                              14,166        12,851     10.2%
Net income                                     9,556         7,446     28.3%

Per Share Data:
Net income:
 Basic                                     $    1.00     $    0.79     26.6%
 Diluted                                   $    0.97     $    0.76     27.6%


December 31                                     1999          1998     Change
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(in thousands)

Balance Sheet Data:
Working capital                            $  53,705     $  32,121     67.2%
Total assets                                 148,564       121,119     22.7%
Total debt                                    54,400        28,583     90.3%
Total shareholders' equity                    60,820        49,359     23.2%

See accompanying Consolidated Financial Statements and Management's Discussion
and Analysis of Financial Condition and Results of Operations.