2014 First Quarter Earnings Conference Call May 6

2014 First Quarter Earnings Conference Call May 6, 2014 Jeffrey T. Gill President & CEO Anthony C. Allen Vice President & Treasurer

Safe Harbor Disclosure Non-GAAP Financial Measures Any non-GAAP measures, and their related reconciliation to GAAP measures, are provided and available on the company’s website: www. sypris. com Each forward-looking statement herein is subject to risks and uncertainties, as detailed in our most recent Form 10 -K and Form 10 -Q and other SEC filings. Briefly, we currently believe that such risks also include the following: reliance on major customers or suppliers, especially in the automotive or aerospace and defense electronics sectors, including the risk of potentially adverse outcomes in ongoing contract renewal disputes and negotiations with Dana Holding Corporation and Meritor Inc. ; declining revenues and backlog in our aerospace and defense business lines as we attempt to transition from legacy products and services into new market segments and technologies; our ability to successfully develop, launch or sustain new products and programs; dependence on, retention or recruitment of key employees especially in challenging markets; inventory valuation risks including excessive or obsolescent valuations; adverse impacts of new technologies or other competitive pressures which increase our costs or erode our margins; volatility of our customers’ forecasts, production levels, financial conditions, market shares, product requirements or scheduling demands; cost and availability of raw materials such as steel, component parts, natural gas or utilities; the costs of compliance with our auditing, regulatory or contractual obligations; potential impairments, non-recoverability or write-offs of assets or deferred costs; the cost, quality, timeliness, efficiency and yield of our operations and capital investments, including working capital, production schedules, cycle times, scrap rates, injuries, wages, overtime costs, freight or expediting costs; the costs and supply of, or access to, debt, equity capital, or insurance; fees, costs or other dilutive effects of refinancing, or compliance with covenants; regulatory actions or sanctions (including FCPA, OSHA and Federal Acquisition Regulations, among others); potential weaknesses in internal controls over financial reporting and enterprise risk management; disputes or litigation involving customer, supplier, employee, lessor, landlord, creditor, stockholder, product liability or environmental claims; U. S. government spending on products and services that our Electronics Group provides, including the timing of budgetary decisions; changes in licenses, security clearances, or other legal rights to operate, manage our work force or import and export as needed; breakdowns, relocations or major repairs of machinery and equipment; pension valuation, health care or other benefit costs; labor relations; strikes; union negotiations; cyber security threats and disruptions; changes or delays in customer budgets, funding or programs; failure to adequately insure or to identify environmental or other insurable risks; revised contract prices or estimates of major contract costs; risks of foreign operations; currency exchange rates; war, terrorism, or political uncertainty; unanticipated or uninsured disasters, losses or business risks; inaccurate data about markets, customers or business conditions; or unknown risks and uncertainties. There can be no assurance that our expectations, projections or views expressed in any forward-looking statements will come to pass, and undue reliance should not be placed on these forward-looking statements. We undertake no obligation to update these statements, except as required by law. 2

Table of Contents • • Overview Segment Review – Aerospace & Defense – Industrial • • • Financial Review Summary Q&A Session 3

Overview Q 1 Highlights • Strong Quarter – Revenue, Gross Profit and Gross Margin Increase – – Gross Profit up 31% from 1 Q 13; up 66% from 4 Q 13 – • Sales up 7% from 1 Q 13; up 14% from 4 Q 13 Gross Margin up 220 basis points from 1 Q 13; up 390 basis points from 4 Q 13 EPS Improves Quarterly; Sequentially – $0. 08 per diluted share • Positive Free Cash Flow • Awarded contract with NEC Asia Pacific to develop a Cyber Security Laboratory for the Singapore Government • Solid start for 2014 4

Aerospace & Defense Q 1 Highlights • Financial Results – – • Revenue increased 16% from 1 Q 13 Gross profit and margin declined, impacted by short-term mix; improved slightly sequentially Maintained Investments in Technology – – • R&D impact on P&L reduced by customer funding Driving proof of concept with customers New Business Opportunities Underway – – Northrop Grumman – • Lockheed Martin Exelis Submitted proposals for Cyber Range installations for other potential international customers 5

Aerospace & Defense Outlook • US defense industry challenges are likely to continue – We remain committed to improving our portfolio through diversification, achieving a better hardware/software balance • Key Areas of Focus – Secure customer funding to integrate new, demonstrated technologies, such as Keystone. TM and Si. O 2 Metrics. TM – Convert on global demand for resilient threat response training through the Sypris Cyber Range – Further expand secure communications product sales in Canada, Norway and Germany – Continue to expand EMS sales in severe environment markets – Pursue synergistic acquisitions 6

Industrial Q 1 Highlights • Financial Results – Sales up 7% from 1 Q 13; up 19% from 4 Q 13 – Gross profit up 38% from 1 Q 13; up 54% from 4 Q 13 – Gross margin up 330 basis points from 1 Q 13; up 340 basis points from 4 Q 13 – EBITDA increased 18% from 1 Q 13; up 75% from 4 Q 13; just under 15% of sales • Demand for Sypris products and services expanded across all markets served • • Quality and delivery at world class levels TPS(1) programs contributing to operational efficiencies; active now at all locations (1) Toyota Production System 7

Industrial Outlook • Markets Remain Positive – – Light vehicle orders up year over year by more than 15%; trailers stable to up slightly – • Commercial vehicle demand (Class 8) expected to increase more than 15% year over year Oil and gas markets expected to show continued expansion New Program Growth – Quotations and discussions to expand the customer base continued; annual potential of $85$110 million – Regional sales expansion and new higher pressure closures adding growth and margin opportunities • Invest to Expand Market and Customer Share – Acquire unique capacity; pursue joint ventures 8

Financial Review First Quarter 2014 May 6, 2014 Anthony C. Allen Vice President & Treasurer

Consolidated Financial Results Year-Over-Year Results ($ in thousands, except EPS) 1 Q 14 1 Q 13 $ 84, 244 $ 78, 411 Gross Profit 10, 564 8, 076 Gross Margin 12. 5% 10. 3 % Revenue EPS* $ 0. 08 $ (0. 34) • YOY improvements in both business segments • GP increase a direct result of increased revenue and favorable mix • Cost efficiencies and mix contribute to improved gross margin • Revenue growth, mix and efficiencies drives return to profitablility * EPS – Diluted earnings per share 10

Consolidated Financial Results Sequential Results ($ in thousands, except EPS) 1 Q 14 4 Q 13 $ 84, 244 $ 73, 859 Gross Profit 10, 564 6, 380 • Conversion on revenue growth by Industrial Group Gross Margin 12. 5% 8. 6% • Cost efficiencies and mix contribute to improved gross margin Revenue EPS* $ 0. 08 $ 0. 00 • Commercial vehicle market drives sequential improvement • Revenue growth, mix and efficiencies drives return to profitablility * EPS – Diluted earnings per share 11

A&D Financial Results Revenue Gross Margin ($ in millions) $8. 4 $7. 3 $8. 4 $10. 0 (0. 5%) (7. 0%) 1 Q 14 1 Q 13 YOY Results 1 Q 14 4 Q 13 1 Q 14 Sequential Results (7. 0%) 1 Q 13 YOY Results 1 Q 14 (8. 8%) 4 Q 13 Sequential Results • Delay in technical approval for EMS contract impacted 1 Q revenue • GM% improved sequentially, but down YOY due to product mix • Pursuing increased scope on existing contracts and new business opportunities • Margins on EMS programs improving as we move beyond initial ramp on new contracts • No 1 Q revenue for Cyber Lab • Controlling variable costs closely in response to market conditions 12

Industrial Financial Results Revenue Gross Margin ($ in millions) $75. 8 14. 7% $71. 1 14. 7% 11. 4% 11. 3% $63. 9 1 Q 14 1 Q 13 YOY Results 1 Q 14 4 Q 13 1 Q 13 Sequential Results • YOY Results End-user demand for commercial vehicles driving growth • Industry forecasts 16. 5% Class 8 production increase for FY 2014 over 2013 • 1 Q 14 4 Q 13 1 Q 14 Sequential Results • • 13 Gross margin of 14. 7%, reflects 340 bps improvement sequentially from 4 Q • Positioned to meet industry demand as market upturn continues With 7% YOY increase in revenue and continued CI initiatives, gross margins increased by 330 bps for the quarter Focused on execution as volumes are on the rise

Summary • • Solid start to 2014 with EPS of $0. 08 fueled by Industrial Group performance • Industrial Group’s quality, delivery and other key operational metrics maintained at targeted levels as volumes rise • Deployment of TPS across all Industrial Group facilities is generating additional production capacity through set-up and cycle time reductions on existing operations • A&D’s successful on-boarding of EMS programs is driving new business opportunities with existing and potential customers • Award for Cyber Security Laboratory demonstrates A&D’s advancement of technology from development to end market and opens doors with additional partners and customers • Development of additional A&D technology platforms continues through both internal and customer funded programs • Favorable market conditions are expected to provide SYPR the opportunity to continue to deliver improved YOY results for the balance of 2014 Commercial vehicle market orders continued to be strong in 1 Q and outlook remains positive for balance of year (1) Toyota Production System 14

Question and Answer Session Q 1 Earnings Conference Call May 6, 2014 Jeffrey T. Gill President & CEO Anthony C. Allen Vice President & Treasurer