Sypris and Dana Sign Outsourcing Agreements; Transactions to Include Purchase of Plant

LOUISVILLE, Ky.--Dec. 9, 2003--Sypris Solutions, Inc. today announced that it has signed contracts to supply Dana Corporation ("Dana") with a wide range of drive train and steer axle components and to purchase Dana's manufacturing plant located in Morganton, North Carolina. The transactions, which represent the first phase of a larger deal that was announced on September 4, 2003, remain subject to certain conditions. The closing of the purchase of the Morganton facility and the beginning of the new supply agreement are scheduled to take place on December 31, 2003.

The supply agreement is an eight-year outsourcing arrangement that is expected to generate $55 to $60 million of business per year from components to be provided by the Morganton plant. Separately the parties have entered into a three-year extension of an existing contract for forgings from another Sypris facility that was otherwise scheduled to expire in 2008. This contract is expected to generate approximately $50 million of business in 2004.

In September, Sypris announced that it had signed a letter of understanding with Dana that it expected to cover approximately $130 million of component supply business per year, based upon current market conditions, and included the purchase of Dana's Morganton plant, a portion of Dana's manufacturing facility in Toluca, Mexico and certain production equipment located at other Dana plants. The remainder of the announced transactions are expected to be finalized during 2004.

Subject to closing on December 31, 2003, a conference call is scheduled for Monday, January 5, 2004, at 10:00 a.m. Eastern Time to discuss the expected impact of the new business with Dana on the results of Sypris. The call can be accessed live via the Internet. Visit www.Sypris.com or www.companyboardroom.com for the link to the call or to listen to a replay, which will be available for 30 days after the call.

Sypris Solutions is a diversified provider of technology-based outsourced services and specialty products. The Company performs a wide range of manufacturing and technical services, typically under multi-year, sole-source contracts with major corporations and government agencies in the markets for aerospace and defense electronics, truck components and assemblies, and for users of test and measurement equipment. For more information about Sypris Solutions, visit its Web site at www.sypris.com.

Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicle manufacturers and their related aftermarkets. The company employs approximately 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and customer service facilities in 30 countries. The company reported 2002 sales of $9.5 billion.

This press release, and any oral statements made with reference to this cautionary guidance, includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as they relate to, or may affect, the Company's future results. These statements only reflect management's current opinions; and no assurance can be given, that any of these results will actually occur. Important factors could cause performance to differ materially from projected results contained in, or based upon, these statements, including: the discovery of, or failure to discover, material issues during due diligence; the failure to agree on the final terms of the definitive agreement, the long-term supply agreement or related agreements or any party's breach of, or refusal to close the transactions reflected in, those agreements; the ability to successfully manage growth or contraction in the economy, or the commercial vehicle or electronics markets; access to capital on favorable terms as needed for operations or growth; the ability to achieve expected annual savings and synergies from past and future business combinations; competitive factors and price pressures; availability of third party component parts at reasonable prices; inventory risks due to shifts in market demand and/or price erosion of purchased components; changes in product mix; program changes, delays, or cancellations by the government or other customers; concentrated reliance on major customers or suppliers; cost and yield issues associated with the Company's manufacturing facilities; revisions in estimated costs related to major contracts; labor relations; risks inherent in operating abroad, including foreign currency exchange rates; performance of our pension fund portfolios; changes in applicable law or in the Company's regulatory authorizations, security clearances, or other legal rights to conduct its business, deal with its work force or export goods and services; adverse regulatory actions, or other governmental sanctions; risks of litigation, including litigation with respect to environmental or asbestos-related matters, customer or supplier claims, or stockholders; the effects (including possible increases in the cost of doing business) resulting from future war and terrorists activities or political uncertainties; natural disasters, casualties, utility disruptions, or the failure to anticipate unknown risks and uncertainties present in the Company's businesses; dependence on current management; as well as other factors included in the Company's periodic reports filed with the Securities and Exchange Commission.