Sypris Wins Award for Long-Range Standoff Missile System Assemblies

For Integration Into the U.S. Air Force B-52H Weapons Systems

TAMPA, Fla.--(BUSINESS WIRE)-- Sypris Electronics, LLC, a subsidiary of Sypris Solutions, Inc. (Nasdaq/GM: SYPR), announced today that it has recently received an award to produce and test electronic interface control assemblies for the U.S. Department of Defense Long-Range Standoff (LRSO) missile weapons system as part of the Nuclear Weapons Delivery Systems modernization program. Production is expected to begin in 2023. Terms of the agreement were not disclosed.

The assemblies to be produced by Sypris will be incorporated into the suite of strategic nuclear and tactical weapons systems of the U.S. Air Force B-52H long-range bomber. The LRSO weapon system is targeted to replace the nearly 40-year old AGM-86B Air-Launched Cruise Missile. According to news sources, the LRSO weapon system is being developed as a program that can penetrate and survive integrated air defense systems and attack strategic threats.

The LRSO Cruise Missile will launch from several other aircraft in addition to the B-52H. The system supports the U.S. triad of long-range nuclear systems, including submarine-based ballistic missles, silo-based ballistic missiles, and manned bomber aircraft. The LRSO is designed to guarantee that the bomber leg of the “triad” can support its part of the deterrence by providing a stealthy, low-flying weapon that reliably penetrates air defenses even when the aircraft carrying them cannot, according to Forbes.com.

With the continued modernization of the B-52, the plane remains one of the most important aircraft in the U.S. Air Force bombers fleet. The B-52 is a critical contributor to the U.S. National Security Strategy, with its large payload, long range and ability to employ both nuclear and conventional precision standoff weapons for close air support or for strategic attack. The modernized B-52 is expected to remain in service through the year 2050, according to news sources.

“This recent award for Sypris further demonstrates customer confidence in our ability to manufacture and test high-reliability aircraft electronic assemblies that play a critical role in our national security,” said Mark Kane, Vice President & General Manager of Sypris Electronics. “We are honored to have this opportunity to participate on this program and to build a strategic partnership with this important new customer.”

Sypris Electronics is a trusted provider of engineering and manufacturing services for complex, mission-critical electronic solutions for customers in the Defense, Space, Deep Sea Communications and Industrial markets. Backed by over 50 years of experience, the Company specializes in producing electronics for high-cost-of-failure applications. For more information, please visit www.sypriselectronics.com.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the federal securities laws. Forward-looking statements include our plans and expectations of future financial and operational performance. Briefly, we currently believe that such risks also include the following: our failure to achieve and maintain profitability on a timely basis by steadily increasing our revenues from profitable contracts with a diversified group of customers, which would cause us to continue to use existing cash resources to fund operating losses; the cost, quality, timeliness, efficiency and yield of our operations and capital investments, including the impact of inflation, tariffs, product recalls or related liabilities, employee training, working capital, production schedules, cycle times, scrap rates, injuries, wages, overtime costs, freight or expediting costs; dependence on, retention or recruitment of key employees and highly skilled personnel and distribution of our human capital; cost, quality and availability or lead times of raw materials such as electronic components, utilities including increased cost relating to inflation; our failure to successfully win new business or develop new or improved products or new markets for our products; our failure to successfully complete final contract negotiations with regard to our announced contract “orders”, “wins” or “awards”; adverse impacts of new technologies or other competitive pressures which increase our costs or erode our margins; volatility of our customers’ forecasts and our contractual obligations to meet current scheduling demands and production levels, which may negatively impact our operational capacity and our effectiveness to integrate new customers or suppliers, and in turn cause increases in our inventory and working capital levels; the fees, costs and supply of, or access to, debt, equity capital, or other sources of liquidity; the impact of COVID-19 and economic conditions on our future operations; possible public policy response to the pandemic, including U.S. or foreign government legislation or restrictions that may impact our operations or supply chain; the termination or non-renewal of existing contracts by customers; inaccurate data about markets, customers or business conditions; disputes or litigation involving governmental, supplier, customer, employee, creditor, product liability, warranty or environmental claims; risks of foreign operations; currency exchange rates; inflation; war, geopolitical conflict, terrorism, or political uncertainty, including disruptions resulting from the conflict between Russia and Ukraine arising out of international sanctions, foreign currency fluctuations and other economic impacts; our reliance on a few key customers, third party vendors and sub-suppliers; inventory valuation risks including excessive or obsolescent valuations or price erosions of raw materials or component parts on hand or other potential impairments, non-recoverability or write-offs of assets or deferred costs; failure to adequately insure or to identify product liability, environmental or other insurable risks; unanticipated or uninsured product liability claims, disasters, public health crises, losses or business risks; the costs of compliance with our regulatory or contractual obligations; costs associated with environmental claims relating to properties previously owned; our inability to patent or otherwise protect our inventions or other intellectual property from potential competitors; U.S. government spending on products and services that , 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; cyber security threats and disruptions, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business, all of which may become more pronounced in the event of geopolitical conflicts and other uncertainties, such as the conflict in Ukraine; or unknown risks and uncertainties. We undertake no obligation to update our forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230213005050/en/

Lawrence J. Bernicky

Vice President of Finance

(813) 972-6040

Source: Sypris Electronics, LLC