<Page>

-------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                     AMENDMENT NO. 1 TO QUARTERLY REPORT ON
                                   FORM 10-Q/A

(X)      Quarterly report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934 for the quarterly period ended March 31, 2000

         or

( )      Transition report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934.


                                     0-21818
                          ----------------------------
                              (Commission File No.)


                             DAW TECHNOLOGIES, INC.
           -----------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         UTAH                                                  87-0464280
-----------------------------                            -----------------------
(State or other jurisdiction                                  (IRS Employer
    of incorporation or                                    Identification No.)
       organization)

                               2700 SOUTH 900 WEST
                           SALT LAKE CITY, UTAH 84119
           -----------------------------------------------------------
          (Address of principal executive offices, including zip code)

       Registrant's telephone number, including area code: (801) 977-3100


         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes (X) No ( )


         As of May 15, 2000, the Registrant had 12,832,454 shares of Common
Stock, $0.01 par value outstanding.


-------------------------------------------------------------------------------
<Page>

This amendment on Form 10-Q/A amends Items 1 and 2 of Part I of the Quarterly
Report for Daw Technologies, Inc. (the "Company") on Form 10-Q previously filed
for the quarter ended March 31, 2000. This Quarterly Report on Form 10-Q/A is
filed in connection with the Company's restatement of its financial statements
for the quarters ended March 31, 2000, June 30, 2000, September 30, 2000, March
31, 2001 and June 30, 2001 as well as for the years ended December 31, 1999 and
December 31, 2000. Financial statement information and related disclosures
included in this amended filing reflect, where appropriate, changes as a result
of the restatements. All other information contained in this Quarterly Report on
Form 10-Q/A is as of the date of the original filing. The restated financial
information as of December 31, 1999 contained herein should be read in
conjunction with the applicable amended filings for that period.



                             Daw Technologies, Inc.

                                TABLE OF CONTENTS

<Table>
<Caption>
<S>      <C>                                                                                                     <C>
PART I    FINANCIAL INFORMATION.................................................................................  1

Item 1.  Financial Statements

          Condensed Consolidated Balance Sheets - March 31, 2000 and December 31, 1999 (unaudited)..............  1

          Condensed  Consolidated  Statements  of  Operations - Three months ended March 31, 2000 and
          1999 (unaudited)......................................................................................  2

          Condensed Consolidated Statements of Cash Flows - Three months ended March 31,
          2000 and 1999 (unaudited).............................................................................  3

          Notes to Condensed Consolidated Financial Statements (unaudited)......................................  5

Item 2.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations................................................................................  12



Signatures.....................................................................................................  17
</Table>
<Page>

PART I - FINANCIAL INFORMATION

Item 1.   FINANCIAL STATEMENTS

                     Daw Technologies, Inc. and Subsidiaries

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (unaudited)
                        (in thousands, except share data)

<Table>
<Caption>
                                     ASSETS
                                                                                             March 31,      Dec. 31,
                                                                                               2000           1999
                                                                                          (As Restated)   (As Restated)
                                                                                          -------------   ------------
<S>                                                                                      <C>             <C>
CURRENT ASSETS
    Cash and cash equivalents                                                            $     830       $     296
    Accounts receivable, net                                                                 9,431           7,372
    Costs and estimated earnings in excess
       of billings on contracts in progress                                                  4,772           3,581
    Inventories, net                                                                         2,282           2,612
    Deferred income taxes                                                                      425             425
    Other current assets                                                                     2,934           3,149
                                                                                          -------------   ------------

             Total current assets                                                           20,674          17,435
PROPERTY AND EQUIPMENT, NET                                                                  2,888           3,110
DEFERRED INCOME TAXES                                                                        3,364           3,364
OTHER ASSETS                                                                                   919             966
                                                                                          -------------   ------------

                                                                                         $  27,845       $  24,875
                                                                                          =============   ============

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
    Checks written in excess of cash in bank                                             $       -       $     248
    Accounts payable and accrued liabilities                                                11,200           8,871
    Billings in excess of costs and estimated
       earnings on contracts in progress                                                     2,323           1,624
    Line of credit                                                                           5,468           5,258
    Current portion of long-term obligations                                                   408             461
                                                                                          -------------   -------------

             Total current liabilities                                                      19,399          16,462
LONG-TERM OBLIGATIONS, less current portion                                                    105             110
COMMITMENTS AND CONTINGENCIES                                                                    -               -
SHAREHOLDERS' EQUITY                                                                             -               -
    Preferred stock, authorized 10,000,000 shares of
       $0.01 par value; none issued and outstanding                                              -               -
    Common stock, authorized 50,000,000 shares of
       $0.01 par value; issued and outstanding 12,832,454 shares at
        March 31, 2000 and 12,513,114 shares on December 31, 1999                              128             125
    Additional paid-in capital                                                              17,011          16,579
    Accumulated deficit                                                                     (8,630)         (8,284)
    Accumulated other comprehensive loss                                                      (168)           (117)
                                                                                          -------------   -------------

             Total shareholders' equity                                                      8,341           8,303
                                                                                          -------------   -------------

                                                                                         $  27,845       $  24,875
                                                                                          =============   =============
</Table>
        The accompanying notes are an integral part of these statements.


                                       1
<Page>

                     Daw Technologies, Inc. and Subsidiaries

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)
                        (in thousands, except share data)


<Table>
<Caption>
                                                                            Three months ended
                                                                                 March 31,
                                                                          2000             1999
                                                                     (As Restated)
                                                                     --------------   ---------------
<S>                                                                 <C>              <C>
Revenues                                                            $       15,140   $       12,480
Cost of goods sold                                                          14,128           10,903
                                                                     --------------   ---------------
           Gross profit                                                      1,012            1,577
Operating expenses
    Selling, general and administrative                                      1,069            1,788
    Research and development                                                     -               60
    Depreciation and amortization                                              157              119
                                                                     --------------   ---------------

                                                                             1,226            1,967
                                                                     --------------   ---------------

           Loss from operations                                               (214)            (390)
Other income (expense)
    Interest expense                                                          (192)            (101)
    Other, net                                                                  60              (11)
                                                                     --------------   ---------------
                                                                              (132)            (112)
                                                                     --------------   ---------------

           Loss before income taxes                                           (346)            (502)
Income tax expense (benefit)                                                     -             (186)
                                                                     --------------   ---------------

           NET LOSS                                                 $         (346)  $         (316)
                                                                     ==============   ===============

Loss per common share
    Basic                                                           $        (0.03)  $        (0.03)
    Diluted                                                                  (0.03)           (0.03)
Weighted-average common and dilutive
   common equivalent shares outstanding
    Basic                                                               12,595,011       12,479,711
    Diluted                                                             12,595,011       12,479,711
</Table>


        The accompanying notes are an integral part of these statements.


                                       2
<Page>

                             Daw Technologies, Inc.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                        (in thousands, except share data)
<Table>
<Caption>
                                                                                             Three months ended
                                                                                                 March 31,
                                                                                               2000           1999
                                                                                           (As Restated)
                                                                                           ------------   ------------
<S>                                                                                       <C>            <C>
Increase (decrease) in cash and cash equivalents
    Cash flows from operating activities
       Net loss                                                                           $    (346)     $     (316)
       Adjustments to reconcile net loss to net
       cash provided by (used in) operating activities
           Depreciation and amortization                                                        375             393
           Deferred income taxes                                                                  -            (186)
           Changes in assets and liabilities
              Account receivables                                                            (2,062)           (616)
              Costs and estimated earnings in excess
                of billings on contracts in progress                                         (1,223)         (1,725)
              Inventories                                                                       327             119
              Other current assets                                                              198              94
              Other assets                                                                       (2)             50
              Accounts payable
                and accrued liabilities                                                       2,317           2,158
              Billings in excess of costs and estimated
                earnings on contracts in progress                                               710              (9)
                                                                                           ------------   ------------

                  Net cash provided by (used in)
                    operating activities                                                        294             (38)
                                                                                           ------------   ------------

    Cash flows from investing activities
       Purchase of property
         and equipment                                                                         (103)            (37)
                                                                                           ------------   ------------

                  Net cash used in
                    investing activities                                                       (103)            (37)
                                                                                           ------------   ------------
</Table>


                                   (continued)

        The accompanying notes are an integral part of these statements.


                                       3
<Page>

                     Daw Technologies, Inc. and Subsidiaries

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
                                   (unaudited)
                        (in thousands, except share data)

<Table>
<Caption>
                                                                                            Three months ended
                                                                                                March 31,
                                                                                            2000           1999
                                                                                       (As Restated)
                                                                                       -------------  -------------

<S>                                                                                    <C>            <C>
Cash flows from financing activities
       Decrease in checks written in excess of cash in bank                                (248)              -
       Net change in line of credit                                                         210            (879)
       Proceeds from issuance of preferred and common stock                                 436               -
       Payments on long-term obligations                                                    (58)           (145)
                                                                                       ----------------------------

                  Net cash provided by (used in)
                    financing activities                                                    340          (1,024)

Effect of exchange rate changes on cash and cash equivalents                                  3               -
                                                                                       -------------  -------------

                  Net increase (decrease) in cash
                    and cash equivalents                                                    534          (1,099)

Cash and cash equivalents at beginning of period                                            296           2,140
                                                                                       -------------  -------------

Cash and cash equivalents at end of period                                         $        830     $     1,041
                                                                                       =============  =============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during the period for
     Interest                                                                      $        192     $       101
     Income taxes                                                                             -               -
</Table>


        The accompanying notes are an integral part of these statements.


                                       4
<Page>

                             Daw Technologies, Inc.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)
                        (in thousands, except share data)


1.       INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND RESTATEMENT

         The accompanying unaudited condensed consolidated financial statements
have been prepared by Daw Technologies, Inc. (the "Company" or "Daw") in
accordance with accounting principles generally accepted in the United States
for interim financial reporting and the instructions to Form 10-Q and Rule 10-01
of Regulation S-X. Accordingly, certain information and footnote disclosures
normally included in financial statements prepared under accounting principles
generally accepted in the United States have been condensed or omitted pursuant
to such regulations. In the opinion of management, all adjustments considered
necessary for a fair presentation of the Company's financial position, results
of operations and cash flows have been included. All such adjustments are of a
normal recurring nature. These financial statements and footnote disclosures in
this Form 10-Q/A for the three months ended March 31, 2000 should be read in
conjunction with the Company's annual report on Form 10-K/A, as amended for the
year ended December 31, 1999. The results of operations for the three months
ended March 31, 2000 may not be indicative of the results that may be expected
for the year ending December 31, 2000.

         In November 2001, the Company determined that the consolidated
financial information for the years ended December 31, 1999 and 2000 and the
related quarterly information for 2000 and first two quarters of 2001 contained
errors which required restatement of previously reported financial information.
The errors resulted primarily from the Company not properly reconciling the
accounts of its foreign operations. The errors generally resulted from the
following items:

       o   Foreign currency translation and transaction gains/loss related to
           foreign operations were not properly considered and accounted for.

       o   Errors in recognizing revenue and costs on various construction
           projects using percentage of completion accounting. These errors
           consisted of not recognizing a loss on a project in the period when
           it was determined; unsupported budgeted revenues, costs and progress
           billing information contained in the Company's revenue recognition
           spreadsheets which in turn resulted in errors in the calculation and
           recognition of revenue and costs; and failure to properly accrue
           known costs on projects when incurred which resulted in improper
           revenue recognition.

       o   Errors resulting from differences in intercompany accounts that when
           reconciled resulted in expenses that should have been recorded in the
           financial statements.

       o   Adjustments to properly amortize leasehold improvements over the
           lesser of the estimated useful life or the life of the lease.
           Previously, the leasehold improvements were being amortized over a
           period in excess of the original life of the lease.

       o   Certain reclassifications to balance sheet captions were made. This
           included the reclassification of preferred stock to redeemable
           preferred stock and recording preferred stock dividends and the
           beneficial conversion feature in retained earnings and additional
           paid in capital.


                                       5
<Page>

1.       INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND RESTATEMENT (CONTINUED)

         The effect of the restatements for the years ended December 31, 1999
and 2000 is described in amended filings on Form 10-K/A or Form 10-Q/A for the
applicable quarter periods. The following is a summary of the effects of such
restatements on the Company's consolidated financial statements as of and for
the three months ended March 31, 2000:
<Table>
<Caption>
                                                            As
                                                        Previously        As
                                                         Reported      Restated
                                                       -----------    -----------
<S>                                                    <C>            <C>
Consolidated balance sheet:
  Current assets                                          $  22,312      $  20,674
   Property and equipment--net, at cost                       3,200          2,888
  Total assets                                               29,795         27,845
  Current liabilities                                        18,781         19,399
  Total shareholders' equity                                 10,909          8,341

Consolidated statement of operations:
  Revenue, net                                            $  14,675      $  15,140
  Cost of goods sold                                         13,102         14,128
  Gross profit                                                1,573          1,012
  Total operating expenses                                    1,472          1,226
  Other expense, net                                           (135)          (132)
  Loss before income taxes                                      (34)          (346)
  Net loss                                                      (34)          (346)
  Net loss per common share
   basic and diluted                                      $   (0.00)    $    (0.03)

Consolidated statement of shareholder' equity:
  Common stock                                            $     128      $     128
  Additional paid-in capital                                 17,011         17,011
  Accumulated deficit                                        (6,230)        (8,630)
  Accumulated other comprehensive loss                          -             (168)
  Total shareholders' equity                                 10,909          8,341
</Table>


         2.       NET EARNINGS (LOSS) PER SHARE

         The Company follows the provisions of Statement of Financial Accounting
Standards No. 128 "Earnings Per Share" (SFAS No. 128). SFAS No. 128 requires the
presentation of basic and diluted EPS. Basic EPS are calculated by dividing
earnings (loss) available to common shareholders by the weighted-average number
of common shares outstanding during each period. Diluted EPS are similarly
calculated, except that the weighted-average number of common shares outstanding
includes common shares that may be issued subject to existing rights with
dilutive potential.


                                       6
<Page>

         3.       LINE OF CREDIT

         Through March 9, 2000, the Company maintained a revolving line of
credit with a domestic bank for the lesser of $6,000, or the available borrowing
base. From March 10, 2000, through March 31, 2000, the Company maintained a
revolving line of credit with a domestic bank for the lesser of $5,500, or the
available borrowing base. On April 1, 2000, the revolving line of credit was
reduced to the lesser of $5,000, or the available borrowing base. The interest
rate is computed at the bank's prime rate plus 3 percent per annum and requires
monthly payments of interest. The Company had $5,468 in borrowings against the
line at March 31, 2000 ($5,258 at December 31, 1999). The line of credit expired
December 31, 1999 and was extended to August 31, 2000, which included a waiver
of the Company's non-compliance with the covenants as of December 31, 1999. The
Company was in compliance with the extended line of credit agreement as of March
31, 2000. The line of credit is collateralized by certain domestic receivables
and inventories. The line of credit agreement contains restrictive covenants
imposing limitations on payments of cash dividends, purchases or redemptions of
capital stock, indebtedness and other matters. The Company is currently
reviewing several financing alternatives.

         4.   SEGMENT INFORMATION

         The Company has two reportable segments for the three months ended
March 31, 2000, namely 1) cleanrooms and related products and 2) other
manufactured goods. The Company evaluates performance of each segment based on
earnings or loss from operations. The Company's reportable segments are similar
in manufacturing processes and are tracked similarly in the accounting system.
The manufacturing process for each segment uses the same manufacturing
facilities and overhead is allocated similarly to each segment. It is not
practical to determine the total assets per segment and depreciation by segment
because each segment uses the same manufacturing facility. Identifiable assets
by segment are reported below. The Company allocates certain general and
administrative expenses, consisting primarily of facilities expenses, utilities,
and manufacturing overhead.

         Segment information for the cleanrooms and related products and other
manufactured goods are as follows:


                                       7
<Page>

         4.   SEGMENT INFORMATION (CONTINUED)

<Table>
<Caption>
                                                                                     Three months ended
                                                                                         March 31,
                                                                                    2000            1999
                                                                                 ----------     -----------
<S>                                                                             <C>            <C>
   Revenues
       Cleanrooms and related products                                          $   10,936     $    9,723
       Other products                                                                4,204          2,757
                                                                                 ----------     -----------

          Totals                                                                $   15,140     $   12,480
                                                                                 ==========     ===========

   Operating profit (loss)
       Cleanrooms and related products                                          $    1,161     $     (799)
       Other products                                                               (1,375)           409
                                                                                 ----------     -----------

          Totals                                                                $     (214)    $     (390)
                                                                                 ==========     ===========


                                                                                  March 31,       Dec. 31,
                                                                                    2000            1999
                                                                                 ----------     -----------

   Total assets
       Cleanrooms and related products                                          $   17,512     $   15,535
       Other products                                                                2,512          2,284
       Manufacturing and corporate assets                                            7,821          7,056
                                                                                 ----------     -----------

          Totals                                                                $   27,845     $   24,875
                                                                                 ==========     ===========
</Table>

         5.   INVENTORIES

         Inventories consist of the following:

<Table>
<Caption>
                                                                              March 31,             December 31,
                                                                                2000                    1999
                                                                           ----------------      -------------------
<S>                                                                        <C>               <C>
                 Raw materials                                             $         1,536    $               523
                 Work in process                                                     1,046                  2,389
                                                                           ----------------      -------------------
                                                                                     2,582                  2,912
                 Less allowances for obsolescence                                      300                    300
                                                                           ----------------      -------------------
                                                                           $         2,282    $             2,612
                                                                           ================      ===================
</Table>


                                       8
<Page>

         6.   COMPREHENSIVE LOSS

         The following table reports comprehensive loss for three months ended
March 31, 2000


<Table>
<Caption>
<S>                                                                       <C>
              Net loss                                                     $           (346)
              Foreign currency translation adjustment                                   (51)
                                                                            -----------------
                Comprehensive loss                                         $           (397)
                                                                            =================
</Table>


         7.   EARNINGS (LOSS) PER COMMON SHARE

       The following data show the shares used in computing earnings (loss) per
common share including dilutive potential common stock:

<Table>
<Caption>
                                                                      March 31,       March 31,
                                                                        2000             1999
                                                                    -----------      -----------

<S>                                                                 <C>              <C>
              Common shares outstanding entire
              period                                                12,513,114       12,479,711

              Net weighted average common shares issued during
              period                                                    81,897             -
                                                                    -----------      -----------

              Weighted average number of common shares used in
              basic EPS                                             12,595,011       12,479,711

              Dilutive effect of stock options                             -               -

              Dilutive effect of warrants                                  -               -
                                                                    -----------      -----------

              Weighted average number of common shares and
              dilutive potential common shares used in diluted
              EPS                                                   12,595,011       12,479,711
                                                                    ===========      ===========
</Table>

                  For the periods ended March 31, 2000, and 1999, all of the
         options and warrants that were outstanding were not included in the
         computation of diluted EPS because to do so would have been
         anti-dilutive.


                                       9
<Page>

         8.   SUBSEQUENT EVENTS

              a.  On April 22, 1998, the first closing date, the Company
                  acquired the net assets of Intelligent Enclosures Corporation.
                  The transaction was accounted for as a purchase and the
                  transaction was completed on April 22, 2000, the second
                  closing date. At the first closing date, the Company delivered
                  27,023 shares of common stock. Approximately 30 days after the
                  second closing date, the Company will issue 618,439 additional
                  shares of common stock at the average per share closing price
                  for the 20 consecutive trading days prior to the second
                  closing date, which in addition to the original 27,023 shares,
                  will equal 645,462 shares.

              b.  Subsequent to March 31, 2000, the Company completed a $4.8
                  million private equity placement through the issuance of 480
                  shares of the Company's 3% Series A Convertible Preferred
                  Stock, which are convertible into shares of the Company's
                  common stock.

         9.   RECLASSIFICATIONS

         Certain reclassifications have been made to the 1999 financial
         statements to conform with the 2000 presentation.


                                       10
<Page>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

GENERAL

         The following discussion should be read in conjunction with the
financial statements and notes thereto included elsewhere herein. All data in
the tables are in thousands, except for percentages and per-share data.

            The Company's principal line of business is an integrated systems
solution provider of cleanrooms and cleanroom component systems for the
semiconductor industry. In recent years, the Company has typically had one to
three significant customers, each of whom accounted for approximately 10% or
more of the Company's annual revenues; however, these customers do not
necessarily remain significant in subsequent years. The semiconductor industry
has been historically cyclical in nature and continues to be adversely affected
by the industry downturn that began in the latter part of 1996. Capital spending
by semiconductor manufacturers has generally closely followed chip sales. As
chip sales increased from around $50 billion per year in the late 1980s to a
peak of $150 billion in 1995, capital spending on new equipment and facilities
by the chip manufacturers surged to $45 billion from about $12 billion during
the same period of time. As chip sales have declined over the past three years
to about $122 billion in 1999, capital spending on new equipment and facilities
declined to less than $30 billion in 1998.

         The Company's operating results have been severely impacted by the
reduced capital spending of the semiconductor industry during the past three
years. While the industry has shown signs of recovery from time to time over the
past three years, it has been consistently disappointed by continued declines.
The recent downturn in the semiconductor industry generally resulted in fewer
contracts available to bid, a significant increase in price competition on
contracts that were awarded, and reduced margins on such contracts. However,
beginning in the fourth quarter of 1999, the Company experienced growth in new
contract awards, resulting in an increase in the Company's backlog from $12.8
million at December 31, 1998 to $18.5 million at December 31, 1999.
Additionally, during the first quarter of 2000, the Company has experienced an
increase in contract bidding at higher gross margins than at any time during the
three-year industry downturn, resulting in the award of $24.2 million of new
cleanroom contracts. The Company's backlog increased from $15.9 million at March
31, 1999 to $21.6 million at March 31, 2000.

         Although there is uncertainty regarding the condition and prospects of
a full recovery in the semiconductor industry, management continues to believe
that changes taking place in the industry should result in expanded
semiconductor industry capital expenditures. Delays in the ramp-up of 300mm
technology have delayed the expected construction of a whole series of 300mm
fabs worldwide, although beginning in the fourth quarter of 1999 and continuing
in the first quarter of 2000, construction of some of these delayed fabs were
initiated. In response to the current downturn, management has continued to take
steps to reduce the Company's cost structure including an approximate 26% cut in
wages in 1999 as compared to 1998. Previously, in 1998, the Company reduced its
work force by more than 50%. During 2000, management is continuing to closely
monitor the Company's cost structure, and is taking appropriate actions as
considered necessary, but is continuing to develop state-of-the-art cleanroom
technology, providing world-class support to the Company's customers, and
continuing its diversification strategy.


                                       11
<Page>

         In response to reduced revenue generated by the sale of cleanrooms, the
Company has undertaken several initiatives to expand its revenue base beyond the
semiconductor industry and to reduce its reliance on this historically cyclical
business. The Company has developed an air entrance system used by large
national retail chains in their new "superstores." Air entrances are used in
lieu of conventional swinging and sliding doors to help the store maintain
comfort in the front of the store, reduce liability and increase and optimize
the traffic flow in and out of the store. The Company's air entrance system was
developed by applying its advanced cleanroom air movement and filtration
technology resulting in a technically advanced air entrance system. This product
also shows promise of providing increased gross profit over the next two years.
Additionally, the Company has entered into several contract manufacturing
agreements whereby the Company manufactures products owned and marketed by third
parties. During the first quarter of 1998, the Company announced its entrance
into the transportation industry, by producing sleeper cabs for heavy-duty
trucks. By applying similar wall panel systems technology used in cleanrooms the
Company produces a stronger, more durable, and lighter weight product than
traditional sleeper cabs. This technology may eventually be applied to other
products in the transportation industry. It is the Company's objective to
develop and maintain 40% of its revenues from sources outside of the
semiconductor industry by applying its product and engineering expertise in
custom metal fabrication, airflow systems and panel production to similar type
products used in other industries.

         The Company's revenue and operating results fluctuate substantially
from quarter to quarter depending on such factors as the timing of customer
orders, the timing of revenue and cost recognition, variations in contract mix,
changes in customer buying patterns, fluctuations in the semiconductor equipment
market, utilization of capacity, manufacturing productivity and efficiency,
availability of key components and trends in the economies of the geographical
regions in which the Company operates.

         The Company uses the percentage-of-completion method of accounting for
its long-term cleanroom contracts. The Company recognizes revenue in proportion
to the costs incurred to date in relation to the total anticipated costs.
Revenue recognized may not be the same as progress billings to the customer.
Underbillings are reflected in an asset account (costs and estimated earnings in
excess of billings on contracts in progress), and overbillings are reflected in
a liability account (billings in excess of costs and estimated earnings on
contracts in progress). Non-cleanroom revenue is generally recognized when the
products are shipped to the customer.

         The Company generates revenue in two geographic regions: North America
and Europe. Although risk of fluctuations in currency value does not affect such
dollar-denominated contracts, changes in the relative value of the dollar could
make the Company less competitive in various markets. Contracts to be performed
in Europe may be denominated in local currency, and the Company bears the risk
of changes in the relative value of the dollar and the local currencies.
Devaluation of world currencies against the U.S. dollar has created extreme
price competitiveness from Korean, Japanese, and German manufacturers and
integrators of systems. The Company has in the past and may in the future
attempt to hedge against currency fluctuations on contracts denominated in local
currencies. There can be no assurance, however, that such hedging will fully
insulate the Company from fluctuations or will not expose the Company to
additional risks of loss.

         The Company's business and operations have not been materially affected
by inflation during the periods for which financial information is presented.


                                       12
<Page>

RESTATEMENTS

         In November 2001, the Company determined that the consolidated
financial information in the Company's Annual Reports on Form 10-K for the years
ended December 31, 1999 and December 31, 2000 as well as the unaudited interim
financial statements reported in the Company's Quarterly Reports on Form 10-Q
for the periods ended March 31, 2000, June 30, 2000, September 30, 2000, March
31, 2001 and June 30, 2001 had been incorrectly compiled and reported primarily
because of errors in the financial information reported by the Company's
European operations.

         Prior to October 1999, most of the accounting for the Company's
European operations was done at the Company's headquarters in the United States.
In October 1999, the Company formed a wholly owned European subsidiary in
Scotland known as Daw Technologies (Europe) Ltd. ("Daw Europe") to manage not
only the UK subsidiary, but all of the Company's European operations. At that
time, all European accounts were transferred to Daw Europe to manage, and Daw
Europe personnel took over all of the accounting for all of the Company's
foreign operations.

         Daw Europe's business grew very rapidly between 1999 and 2001, with
annualized revenue almost doubling during that two-year period. During this
period of rapid growth, Daw Europe was allowed significant autonomy, and its
responsibilities included maintaining all of the financial records for not only
the UK subsidiary, but all of the Company's operations throughout Europe and the
Middle East.

         As it turns out, the accounting systems and personnel in the Daw Europe
office were unable to keep pace with the rapid growth and growing complexity of
the European business, including the fact that most of this revenue growth
occurred outside of the United Kingdom. As a result, various problems occurred
with respect to Daw Europe's accounting and financial reporting.

         One of the problems that developed involved the Company's recognition
of revenue on construction projects. In accordance with generally accepted
accounting principles, Daw recognizes revenue on its long term construction
projects based on the percentage of completion method of accounting. The primary
accounting system used by Daw Europe did not include a revenue recognition
feature that would allow it to accurately recognize revenue on its various
projects based on percentage of completion. Daw Europe personnel therefore
created a financial spreadsheet to help account for the recognition of revenue
on its numerous European projects. This method of tracking and accounting for
contracts in progress resulted in some problems, including the following:

     1.  Some of the formulas in the Daw Europe spreadsheet did not properly
         calculate atypical situations, such as costs exceeding budget.

     2.  When the numbers derived from formulas seemed incorrect, accounting
         personnel in Daw Europe would, in some instances, override formulas in
         the spreadsheet by inputting numbers directly into the spreadsheet.
         This damaged the underlying integrity and reliability of the
         spreadsheet.

     3.  Budget estimates were not updated in the spreadsheets for currency
         fluctuations, and currency rates were only changed in the Daw Europe
         accounting system periodically.

     4.  The Daw Europe spreadsheet was not always properly updated to reflect
         changes to contract terms.


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<Page>

         In addition to the problems with the spreadsheet maintained by Daw
Europe, there were also problems in the consolidation process of European
accounts with the United States accounts. For example, European costs incurred
through the United States accounts were not properly considered in the
consolidation process, thus resulting in an understatement of costs and
liabilities.

         Also, the Company noted that certain projects in Israel were either not
recorded or were not properly recorded on the financial records of Daw Europe.
When Daw Europe recorded transactions associated with the Company's projects in
Israel, instead of always obtaining objective accounting documentation, the
accounting personnel, in some instances, relied on informal data and statements
by project managers. Some of this informally gathered information proved to be
incomplete and subsequently required an adjustment.

         Finally, the restated financial statements also contain certain
reclassifications and other adjustments such as: (a) foreign currency
translation and transactions gains/losses related to foreign operations, (b)
intercompany errors and (c) amortization of leasehold improvements. A summary of
the effect of the restatements in the financial statements is described in Note
1 to the condensed consolidated financial statements.

RESULTS OF OPERATIONS
(Data in the tables are in thousands)

Selected Financial Information


<Table>
<Caption>
                                                         Three Months
                                                       Ended March 31,
                                                       ---------------
Statement of Operations Data:                       2000            1999
                                                ------------     ------------
<S>                                             <C>             <C>
Revenues                                              $ 15,140        $ 12,480
Gross profit                                             1,012           1,577
Net loss                                                  (382)           (316)


                                                  March 31,      December 31,
Balance Sheet Data:                                 2000            1999
                                                ------------     ------------
Cash and cash equivalents                              $   830         $   296
Working capital                                          1,275             973
Total assets                                            27,845          24,875
Total liabilities                                       19,504          16,572
Total shareholders' equity                               8,341           8,303
</Table>

         Revenues for the first quarter of 2000 increased by 21.3% to $15.1
million compared to $12.5 million for the first quarter of 1999. This increase
was primarily attributable to an increase in cleanroom and related products
contract awards during the fourth quarter of 1999 and the first quarter of 2000.
Revenues from cleanroom and related products increased $1.2 million, or 12.5%,
to $10.9 million for the first quarter of 2000 from $9.7 million during the
first quarter of 1999. Revenues from other manufactured products increased to
$4.2 million for the period ended March 31, 2000, as compared with $2.8 million
for the period ended March 31, 1999.

         Gross profit for the first quarter of 2000 decreased by 35.8% to $1.0
million from $1.6 million for the first quarter of 1999 and decreased as a
percentage of revenue to 6.7% for the first quarter of 2000 from 12.6% for the
first quarter of 1999. The decreased gross profit percentage was due largely to
lower than anticipated profits related to other products not related to the
semiconductor industry. With the Company's efforts to develop a portion of its
revenues from sources outside of the semiconductor


                                       14
<Page>

industry by applying its product and engineering expertise in custom metal
fabrication, airflow systems and panel production, the Company may experience
cost inefficiencies due to ramp-up costs. However, it is the Company's objective
to identify, manufacture and sell other products that have high gross profit
margin potential.

         Selling, general and administrative expenses for the first quarter of
2000 decreased 41.3% to $1.0 million, or 6.9% of revenue, compared to $1.8
million, or 14.3% of revenue for the first quarter of 1999. The decrease in
selling, general and administrative expenses was the result of the Company's
continued efforts to manage and reduce its operating cost structure. The
reduction was primarily the result of reduced payroll and related expenses and
the implementation of other cost cutting measures.

         Research and development expenses for the first quarter of 2000
decreased 100.0% to zero, compared to $60,000 for the first quarter of 1999. The
decrease was primarily the result of the Company's decision to establish a
foundry relationship for the supply of its traditional cleanroom component
products, similar to the foundry relationship being established by many
multinational semiconductor companies for their integrated circuit needs. The
Company continues to fund research and development to improve its existing
products and develop new products in its diversification program.

         Interest expense for the first quarter of 2000 increased to $192,000,
compared to $101,000 for the first quarter of 1999. This increase was directly
related to increased borrowings at higher interest rates against the Company's
credit line during the first quarter of 2000, compared to borrowings during the
first quarter of 1999.

LIQUIDITY AND CAPITAL RESOURCES

         Working capital at March 31, 2000 was $1,275,000, compared to $973,000
at December 31, 1999. This includes cash and cash equivalents of $830,000 at
March 31, 2000 and $296,000 at December 31, 1999. The Company's operations
provided $294,000 of cash during the first quarter of 2000, compared to using
$38,000 of cash in operations during the first quarter of 1999. During the first
quarter of 2000, the Company experienced a net increase in receivables of $2.1
million, an increase in costs and estimated earnings in excess of billings on
contracts in progress of $1.2 million, and an increase in accounts payable and
accrued liabilities of $2.3 million. In addition, billings in excess of costs
and estimated earnings on contracts in progress increased by $710,000. During
the first quarter ended March 31, 2000, the Company realized proceeds of
$436,000 from the issuance of 301,550 shares of common stock in connection with
the exercise of options related to its 1993 Stock Option Plan.

         Through March 9, 2000, the Company maintained a revolving line of
credit with a domestic bank for the lesser of $6,000,000, or the available
borrowing base. From March 10, 2000, through March 31, 2000, the Company
maintained a revolving line of credit with a domestic bank for the lesser of
$5,500,000, or the available borrowing base. On April 1, 2000, the revolving
line of credit was reduced to the lesser of $5,000,000 or the available
borrowing base. The interest rate is computed at the bank's prime rate plus 3
percent per annum and requires monthly payments of interest. The Company had
$5,468,000 in borrowings against the line at March 31, 2000 ($5,258,000 at
December 31, 1999). The line of credit expired December 31, 1999 and was
extended to August 31, 2000, which included a waiver of the Company's
non-compliance with the covenants as of December 31, 1999. The Company was in
compliance with the extended line of credit agreement as of March 31, 2000. The
line of credit is collateralized by certain domestic receivables and
inventories. The line of credit agreement contains restrictive covenants
imposing limitations on payments of cash dividends, purchases or redemptions of
capital stock, indebtedness and other matters. The Company is currently
reviewing several financing alternatives.


                                       15
<Page>

         Subsequent to March 31, 2000, the Company completed a $4.8 million
private equity placement through the issuance of 480 shares of the Company's 3%
Series A Convertible Preferred Stock, which are convertible into shares of the
Company's common stock.

         Management believes that existing cash balances, borrowings available
under the existing line of credit or future credit facilities, cash generated
from operations, and proceeds from the $4.8 million private equity placement
will be adequate to meet the Company's anticipated cash requirements through
December 31, 2000. However, in the event the Company experiences adverse
operating performance, above-anticipated capital expenditure requirements, or is
unable to renew or replace its existing line of credit, additional financing may
be required. There can be no assurance that such additional financing, if
required, would be available on favorable terms if at all.


INFORMATION CONTAINED IN THIS REPORT CONTAINS "FORWARD-LOOKING STATEMENTS"
WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995,
WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS "MAY,"
"WILL," "SHOULD," "EXPECT," "ANTICIPATE," "ESTIMATE," OR "CONTINUE," OR THE
NEGATIVE THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOLOGY. THESE
FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT INCLUDE,
BUT ARE NOT LIMITED TO, THOSE IDENTIFIED IN THIS REPORT, DESCRIBED FROM TIME TO
TIME IN THE COMPANY'S OTHER SECURITIES AND EXCHANGE COMMISSION FILINGS, OR
DISCUSSED IN THE COMPANY'S PRESS RELEASES. ACTUAL RESULTS MAY VARY MATERIALLY
FROM EXPECTATIONS.



                                       16
<Page>

                                   SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, on April 24, 2002.

                   DAW TECHNOLOGIES, INC.

                   By: /s/ Donald K. McCauley
               ------------------------------------------------------
                            Donald K. McCauley
                            Executive Vice President, Chief Financial Officer
                            (Principal Financial and Accounting Officer)


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