<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 June 30, 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 August 14, 2000, the Registrant had 13,468,609 shares of Common
Stock, $0.01 par value outstanding.



================================================================================

<Page>

This amendment on Form 10-Q/A amends the 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 June 30, 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 filing for
that period.

                             Daw Technologies, Inc.

                                TABLE OF CONTENTS

<Table>

<S>                                                                                                               <C>

PART I    FINANCIAL INFORMATION.................................................................................  1


Item 1.   Financial Statements

          Condensed Consolidated Balance Sheets - June 30, 2000 and December 31, 1999 (unaudited)...............  1

          Condensed  Consolidated  Statements  of Operations - Three months and six months ended June 30,
          2000 and 1999 (unaudited).............................................................................  2

          Condensed  Consolidated  Statements  of Cash  Flows - Six months  ended June 30,  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................................................................................   13

Signatures......................................................................................................  20
</Table>

<Page>

                         PART I - FINANCIAL INFORMATION

Item 1.   FINANCIAL STATEMENTS


                             Daw Technologies, Inc.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                        (in thousands, except share data)
<Table>
<Caption>


                                                                                     June 30,              Dec. 31,
                                                                                      2000                   1999
                                                                                    ---------             ----------
                                                       ASSETS                      (As Restated)        (As Restated)
<S>                                                                                <C>                  <C>

CURRENT ASSETS
    Cash and cash equivalents                                                      $     1,843          $     296
    Accounts receivable, net                                                             8,201              7,372
    Costs and estimated earnings in excess
        of billings on contracts in progress                                             7,023              3,581
    Inventories, net                                                                     2,197              2,612
    Deferred income taxes                                                                  316                425
    Other current assets                                                                 2,957              3,149
                                                                                      ---------           --------

             Total current assets                                                       22,537             17,435

PROPERTY AND EQUIPMENT, NET                                                              2,463              3,110

DEFERRED INCOME TAXES                                                                    3,364              3,364

OTHER ASSETS                                                                               899                966
                                                                                      ---------           ---------

                                                                                       $29,263            $24,875
                                                                                       =======            =======

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
    Checks written in excess of cash in bank                                       $     -               $    248
    Accounts payable and accrued liabilities                                             9,035              8,871
    Billings in excess of costs and estimated
        earnings on contracts in progress                                                2,680              1,624
    Line of credit                                                                       4,209              5,258
    Current portion of long-term obligations                                               303                461
                                                                                    ----------         ----------

             Total current liabilities                                                  16,227             16,462

LONG TERM OBLIGATIONS, less current portion                                                 78                110

COMMITMENTS AND CONTINGENCIES                                                               -                  -

REDEEMABLE PREFERRED STOCK
     3% Series A Redeemable Convertible Preferred Stock, authorized 10,000,000
        shares of $0.01 par value; 480 shares issued
        and outstanding at June 30, 2000 (none at December 31, 1999)                     4,225                 -


SHAREHOLDERS' EQUITY
    Common stock, authorized 50,000,000 shares of $0.01 par
        value; issued and outstanding 13,468,609 shares at
        June 30, 2000 and 12,513,114 at December 31, 1999                                  135                125
    Additional paid-in-capital                                                          19,622             16,579
    Warrants                                                                               350                 -
    Accumulated deficit                                                                (10,981)            (8,284)
    Accumulated other comprehensive loss                                                  (393)              (117)
                                                                                     ---------         -----------
             Total shareholders' equity                                                  8,733              8,303
                                                                                     ---------          ---------

                                                                                      $ 29,263           $ 24,875
                                                                                      ========           ========
</Table>

           See accompanying notes to condensed financial statements.

                                       1

<Page>

                             Daw Technologies, Inc.

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

<Table>
<Caption>


                                                      Three months ended             Six months ended
                                                           June 30,                      June 30,
                                                     2000           1999            2000           1999
                                                 (As Restated)                 (As Restated)

                                                 ------------   -------------   -------------  -------------
<S>                                            <C>            <C>             <C>            <C>

Revenues                                       $      14,637  $       9,980   $      29,777  $      22,460
Cost of goods sold                                    12,491          9,933          26,619         20,836
                                                 ------------   -------------   -------------  -------------
           Gross profit                                2,146             47           3,158          1,624
Operating expenses
    Selling, general and administrative                1,310          1,896           2,379          3,684
    Research and development                               -             58               -            118
    Depreciation and amortization                        107            112             264            232
                                                 ------------   -------------   -------------  -------------
                                                       1,417          2,066           2,643          4,034
                                                 ------------   -------------   -------------  -------------

           Earnings (loss) from operations               729         (2,019)            515         (2,410)
Other income (expense)
    Interest expense                                    (223)          (186)           (415)          (287)
    Other, net                                            11            (84)             70            (93)
                                                 ------------   -------------   -------------  -------------
                                                        (212)          (270)           (345)          (380)
                                                 ------------   -------------   -------------  -------------

           Earnings (loss) before income taxes           517         (2,289)            170         (2,790)
Income taxes (benefit)                                   251           (847)            251         (1,032)
                                                 ------------   -------------   -------------  -------------
           NET EARNINGS (LOSS)                 $         266  $      (1,442)  $         (81) $      (1,758)
                                                 ============   =============   =============  =============

Earnings (loss) per common share (NOTE 7)
    Basic                                      $       (0.18) $        (0.12) $       (0.20) $       (0.14)
    Diluted                                            (0.18)          (0.12)         (0.20)         (0.14)
Weighted-average common and dilutive
   common equivalent shares outstanding
    Basic                                          13,185,866      12,479,711     12,875,237     12,490,968
    Diluted                                        13,185,866      12,479,711     12,875,237     12,490,968
</Table>



           See accompanying notes to condensed financial statements.

                                       2

<Page>

                             Daw Technologies, Inc.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                        (in thousands, except share data)

<Table>
<Caption>

                                                                                                Six months ended
                                                                                                     June 30,
                                                                                               2000           1999
                                                                                           (As Restated)
                                                                                           ------------   ------------
<S>                                                                                       <C>            <C>

Increase (decrease) in cash and cash equivalents
    Cash flows from operating activities
       Net loss                                                                           $     (81)     $   (1,758)
       Adjustments to reconcile net loss to net
       cash used in operating activities
           Depreciation and amortization                                                        697             781
           Loss on disposal of property and equipment                                             2               -
           Provision for allowance on accounts receivable                                         -               -
           Deferred income taxes                                                                110          (1,032)
           Changes in assets and liabilities
              Account receivables                                                              (966)            573
              Costs and estimated earnings in excess
                of billings on contracts in progress                                         (3,573)         (3,002)
              Inventories                                                                       402             188
              Other current assets                                                              121             (26)
              Other assets                                                                       (6)            100
              Accounts payable
                and accrued liabilities                                                         212           2,411
              Billings in excess of costs and estimated
                earnings on contracts in progress                                             1,111             701
                                                                                           ------------   ------------

                  Net cash used in
                    operating activities                                                     (1,971)         (1,064)
                                                                                           ------------   ------------

    Cash flows from investing activities
       Purchase of property and equipment                                                      (137)            (51)
       Proceeds from disposition of property
         and equipment                                                                          154               -
                                                                                           ------------   ------------

                  Net cash provided by (used in)
                    investing activities                                                         17             (51)
                                                                                           ------------   ------------
</Table>



        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>

                                                                                             Six months ended
                                                                                                 June 30,
                                                                                            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                                                      (1,049)            207
       Proceeds from issuance of common stock, preferred stock
         and warrants                                                                     5,035              22
       Payments on long-term obligations                                                   (191)           (293)
                                                                                       ----------------------------

                  Net cash provided by (used in)
                    financing activities                                                  3,547             (64)

Effect of exchange rate changes on cash and cash equivalents                                (46)              -
                                                                                       -------------  -------------

                  Net increase (decrease) in cash
                    and cash equivalents                                                  1,547          (1,179)

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

Cash and cash equivalents at end of period                                            $   1,843      $      961
                                                                                       =============  =============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for
     Interest                                                                         $    415       $      287
     Income taxes                                                                           -                -
</Table>

Non-cash activities:

The Company accrued dividends of $25 on its 3% Series A convertible preferred
stock.

The Company recorded an imputed dividend of $2,593 from the beneficial
conversion feature on its 3% Series A convertible preferred stock.

The Company completed its acquisition of another company by issuing 618,439
shares of Common Stock.


           See accompanying notes to condensed financial 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. and Subsidiaries (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 and six months ended
June 30, 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 and six months ended June 30, 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.

    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>

                             Daw Technologies, Inc.

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



         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 quarterly periods. The following is a summary of the effects of such
restatements on the Company's consolidated financial statements as of June 30,
2000 and for the three and six months ended June 30, 2000:

<Table>
<Caption>

                                                           As Previously         As
                                                             Reported         Restated
                                                             --------         --------
<S>                                                           <C>               <C>

Consolidated balance sheet:
  Current assets                                              $ 25,447          $ 22,537
  Property and equipment - net, at cost                          2,794             2,463
  Total assets                                                  32,504            29,263
  Current liabilities                                           16,383            16,227
  Redeemable preferred stock                                       -               4,225
  Total shareholders' equity                                    16,043             8,733

Consolidated statement of shareholders' equity:

  Common stock                                                $    135          $    135
  Additional paid-in capital and warrants                       21,602            19,972
  Accumulated deficit                                           (5,694)          (10,981)
  Accumulated other comprehensive loss                             -                (393)
  Total shareholders' equity                                    16,043             8,733
</Table>

<Table>
<Caption>


                                                              Three months ended             Six months ended
                                                                 June 30, 2000                June 30, 2000
                                                        -------------------------------------------------------------
                                                               As                           As
                                                            Previously         As        Previously        As
                                                            Reported       Restated      Reported       Restated
                                                            --------       --------      --------       --------
<S>                                                            <C>             <C>           <C>           <C>

Consolidated statement of operations:
  Revenue, net                                                 $15,011         $14,637       $29,686       $29,777
  Cost of goods sold                                            12,251          12,491        25,353        26,619
  Gross profit                                                   2,760           2,146         4,333         3,158
  Total operating expenses                                       1,761           1,417         3,233         2,643
  Other expense, net                                              (212)           (212)         (347)         (345)
  Income (loss) before income taxes                                787             517           753           170
  Net income (loss)                                                536             266           502           (81)
  Net income (loss) available to common
   shareholders                                                    511          (2,352)          502        (2,698)
  Net income (loss) per common share - diluted                 $  0.03         $ (0.18)      $  0.03       $ (0.20)
</Table>

                                        6

<Page>

                             Daw Technologies, Inc.

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


         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.

         3.       LINE OF CREDIT

         The Company maintains a revolving line of credit with a domestic bank
for the lesser of $5.0 million, or the available borrowing base. The interest
rate is computed at the bank's prime rate plus 5 percent per annum and requires
monthly payments of interest. The Company had approximately $4.2 million in
borrowings against the line at June 30, 2000 ($5.3 million 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 June 30, 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.   BUSINESS ACQUISITION

         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. On May 12, 2000, the Company issued an additional 618,439 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, equals 645,462 shares.

         5.   SEGMENT INFORMATION

         The Company has two reportable segments for the three and six months
ended June 30, 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.

                                       7

<Page>

                             Daw Technologies, Inc.

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


         5.   SEGMENT INFORMATION (CONTINUED)


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

<Table>
<Caption>


                                                  FOR THE THREE MONTHS               FOR THE SIX MONTHS
                                                     ENDED JUNE 30,                    ENDED JUNE 30,
                                               ------------------------------   -------------------------------
                                                   2000            1999               2000          1999
                                               --------------  --------------   --------------  --------------
<S>                                               <C>            <C>              <C>              <C>

 Revenues

    Cleanrooms and related products                $ 9,915       $  7,037         $ 20,851         $ 16,760
    Other manufactured goods                         4,722          2,943            8,926            5,700
                                                   -------       --------         --------         --------

                 Totals                            $14,637       $  9,980         $ 29,777         $ 22,460
                                                   =======       ========         ========         ========

 Earnings (loss) from operations
    Cleanrooms and related products                $ 1,060       $ (2,327)        $  2,221         $ (3,127)
    Other manufactured goods                          (331)           308           (1,706)             717
                                                   -------       --------         --------         --------

                 Totals                            $   729       $ (2,019)        $    515         $ (2,410)
                                                   =======       ========         ========         ========
</Table>


<Table>
<Caption>

                                               -------------------------------
                                                   JUNE        DECEMBER
                                                    30,            31,
                                                   2000           1999
                                               --------------  --------------
<S>                                               <C>              <C>
Total assets

   Cleanrooms and related products                $ 18,591         $15,535
   Other manufactured goods                          2,622           2,284
   Manufacturing and corporate                       8,050           7,056
                                                  --------         -------
                 Totals                           $ 29,263         $24,875
                                                  ========         =======
</Table>

                                       8

<Page>

                             Daw Technologies, Inc.

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


         6.       CAPITAL TRANSACTIONS

         On April 28, 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 and warrants, which are convertible into shares of
the Company's common stock. The Preferred Shares do not have voting rights. The
Series A Preferred is currently convertible into shares of Common Stock at a
rate equal to a fraction, the numerator of which is equal to $10,000 plus all
accrued dividends, and the denominator of which is equal to the lesser of (i)
$1.32 and (ii) 80% of the average of the five lowest consecutive per share
market values during the twenty-five trading days proceeding the conversion
date. The net cash received by the Company was $4,575,000.

         During the six months ended June 30, 2000, the Company issued 301,550
shares of common stock in connection with the exercise of options related to its
1993 Stock Option Plan.

                                       9

<Page>

                             Daw Technologies, Inc.

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


         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>


                                                     Three months ended               Six months ended
                                                          June 30,                        June 30,
                                                    2000            1999           2000            1999
                                               -------------  --------------  -------------   -------------
<S>                                            <C>            <C>             <C>             <C>

Net earnings (loss)                            $        266   $    (1,442)    $        (81)   $    (1,758)

Dividends on preferred stock                            (25)        -                  (25)         -

Imputed dividend from beneficial
conversion feature                                   (2,593)        -               (2,593)         -
                                               -------------  --------------  -------------   -------------

Net earnings (loss) applicable to common
stock                                          $     (2,352)  $    (1,442)    $     (2,699)   $    (1,758)
                                               =============  ==============  =============   =============

Common shares outstanding entire
period                                           12,832,454    12,479,711       12,513,114     12,479,711

Net weighted average common shares issued
during period                                       353,412        -               362,123         11,257
                                               -------------  --------------  -------------   -------------

Weighted average number of common shares
used in basic EPS                                13,185,866    12,479,711       12,875,237     12,490,968

Dilutive effect of stock options                     -               -              -               -

Dilutive effect of warrants                          -               -              -               -

Dilutive effect of preferred stock                   -               -              -               -
                                               -------------  --------------  -------------   -------------

Weighted average number of common shares
and dilutive potential common shares used
in diluted EPS                                   13,185,866    12,479,711       12,875,237     12,490,968
                                               =============  ==============  =============   =============
</Table>

For the loss periods ended June 30, 2000 and 1999, all of the preferred shares,
options and warrants that were outstanding were not included in the computation
of diluted EPS because to do so would have been anti-dilutive.

                                       10

<Page>

                             Daw Technologies, Inc.

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


         8.       INVENTORIES


         Inventories consist of the following:

<Table>
<Caption>

                                                                       June 30,          December 31,
                                                                  -----------------   ------------------
                                                                         2000                1999
                                                                  -----------------   ------------------
<S>                                                              <C>                 <C>

         Raw materials                                           $        1,699      $          523
         Work in process                                                    798               2,389
                                                                  -----------------   ------------------
                                                                          2,497               2,912
         Less allowance for obsolescence                                    300                 300
                                                                  -----------------   ------------------

                    Total                                        $        2,197      $        2,612
                                                                  =================   ==================
</Table>


         9.       COMPREHENSIVE INCOME (LOSS)

The following table reports comprehensive income (loss) for the three and six
months ended June 30, 2000 and 1999:

<Table>
<Caption>


                                                                                         Three months ended
                                                                                              June 30,
                                                                                      2000               1999
                                                                                 --------------   -----------------
<S>                                                                             <C>              <C>

       Net income (loss)                                                        $        266     $           -
       Foreign currency translation adjustment                                          (225)                -
                                                                                 --------------   -----------------

          Comprehensive income (loss)                                           $         41     $           -
                                                                                 ==============   =================

<Caption>
                                                                                          Six months ended
                                                                                              June 30,
                                                                                      2000               1999
                                                                                 --------------   -----------------
<S>                                                                             <C>              <C>
       Net loss                                                                 $        (81)    $           -
       Foreign currency translation adjustment                                          (276)                -
                                                                                 --------------   -----------------

          Comprehensive loss                                                    $       (357)    $           -
                                                                                 ==============   =================
</Table>

         10.      RECLASSIFICATION

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

                                       11

<Page>

                             Daw Technologies, Inc.

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


         11.      SUBSEQUENT EVENTS

         On July 10, 2000, the Company sold the assets associated with its
sleeper cab manufacturing business to Western Star Trucks US Inc. for
approximately $1 million. In addition, the Company retained certain accounts
receivables associated with its sleeper cab manufacturing line and will continue
to receive payments on such receivables in the ordinary course of business.
Western Star Trucks US Inc. has entered into an agreement with the Company for a
limited specified time period to provide labor and management services to
continue to operate the sleeper cab operations in Salt Lake City. Western Star
Trucks US Inc. has also entered into a short-term lease for the factory space
currently occupied by the sleeper cab operation.

         The Company's contract manufacturing group, (Advanced Manufacturing),
will also be providing manufacturing and powder coat paint services to supply
the operation with raw materials for the assembly operation for the duration of
the agreement.

                                       12

<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
consolidated financial statements and notes thereto included elsewhere herein,
the audited consolidated Financial Statements and "Managements Discussion and
Analysis of Financial Condition and Results of Operations" included in the
Company's report on Form 10-K/A for the year ended December 31, 1999. All data
in the tables are in thousands, except for percentages and per-share data.

            The Company's principal line of business is as a provider of
ultra-clean manufacturing environments or 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. 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 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. Various industry analysts
have reported that in 1999 chip sales increased by 20%, which indicates that the
recent downturn may be ending. In addition, analysts predict that chip sales for
2000 may increase by an additional 30 to 40%. The Company can provide no
assurance that chip sales will, in fact, continue to increase during 2000 or
thereafter.

            The Company's operating results were 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. Management
believes the downturn is over and the industry is on the road to recovery. The
length and duration of the recovery is still subject to significant uncertainty.
The extended 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.
Additionally, during the first six months 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. While cleanroom contract bidding continues at
a higher rate than any time in the previous three years, the actual award of
contracts does not occur evenly from quarter to quarter. During the six months
ended June 30, 2000, actual cleanroom contract awards were approximately $26.0
million. The Company's cleanroom contract backlog at June 30, 2000 was $15.1
million compared to $15.0 million at June 30, 1999.

            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

                                       13

<Page>

worldwide, however, beginning in the fourth quarter of 1999 and continuing in
the first six months of 2000, construction of some of these delayed fabs were
initiated. 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.

            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. Although
revenues to date from this line of business have been limited, this product
shows promise of providing increased revenue and gross profit over the next two
years. The Company also applied wall panel systems technology used in cleanrooms
to develop a stronger, more durable, and lighter weight sleeper cab for the
transportation industry. This technology may eventually be applied to other
products in the transportation industry. Even though the Company realized
certain revenues from the sleeper cab product, in July of 2000 the Company sold
the assets associated with its sleeper cab manufacturing business to Western
Star Trucks US Inc. for approximately $1,000,000. In addition, the Company
retained certain accounts receivables associated with its sleeper cab
manufacturing line and will continue to receive payments on such receivables in
the ordinary course of business. The Company will continue to use its resources
to pursue other contract manufacturing products.

            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 sale
of the Company's sleeper cab business, which accounted for substantially all of
the 25% of its revenue from sources outside of the semiconductor industry during
its last fiscal year, represents a setback in the Company's pursuit of that
objective. However, the Company has entered into several other contract
manufacturing agreements whereby the Company manufactures products owned and
marketed by third parties that will offset some of the lost revenues from the
sale of its sleeper cab operations. In addition, management believes that the
strength of the recovery in the cleanroom industry will also offset the decrease
in revenues from the sleeper cab operations. Contract manufacturing agreements
may change from time to time based on profitability, manufacturing capacity and
other related factors.

            The Company's revenue and operating results can 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.

                                       14

<Page>

            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 the Company's 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.

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 foreign
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.

                                       15

<Page>

         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.

         In addition to the problems with the spreadsheet maintained by Daw
Europe, there were also problems in the consolidation 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 various 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 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 some
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.

                                       16

<Page>

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

Selected Financial Information

<Table>
<Caption>
                                                      Three months ended             Six months ended
                                                           June 30,                      June 30,
                                                     2000           1999            2000           1999
                                                 ------------   -------------   -------------  -------------
<S>                                              <C>            <C>             <C>            <C>

Revenues......................................   $    14,637    $      9,980    $     29,777   $     22,460

Gross profit...................................        2,146              47           3,158          1,624

Operating expenses..........................           1,417           2,066           2,643          4,034

Net earnings (loss)...........................   $       266    $     (1,442)   $        (81)  $     (1,758)
</Table>

<Table>
<Caption>


                                               ----------------------------------
                                                 JUNE 30,       DECEMBER 31,
                                                   2000             1999
                                               -------------- --------------
<S>                                              <C>            <C>

BALANCE SHEET DATA:

Cash and cash equivalents.................       $   1,843      $    296
Working capital...........................           6,310           973
Total assets..............................          29,263        24,875
Total liabilities.........................          16,305        16,572
Redeemable preferred stock................           4,225            -
Total shareholders' equity..................         8,733         8,303
</Table>



         Revenues for the second quarter of 2000 increased by 46.7% to $14.6
million compared to $10.0 million for the second quarter of 1999. Revenues for
the six months ended June 30, 2000 increased by 32.6% to $29.8 million compared
to $22.5 million for the six months ended June 30, 1999. The increase in
revenues is attributed to an increase in capital spending by the semiconductor
industry following an extended industry downturn during the last three years.
The capital spending increase resulted in more cleanroom-related contract awards
during the fourth quarter of 1999 and the first quarter of 2000. As a result,
the increase has resulted in more contracts during the first two quarters of
2000 compared with the first two quarters of 1999.

         Gross profit for the second quarter of 2000 increased by 4,466.0% to
$2.1 million from a gross profit of $47,000 for the second quarter of 1999 and
increased as a percentage of revenue to 14.7% for the second quarter of 2000
from 0.5% for the second quarter of 1999. Gross profit for the six months ended
June 30, 2000 increased by 94.5% to $3.2 million from a gross profit of $1.6
million for the six months ended June 30, 1999 and increased as a percentage of
contract revenue to 10.6% for the six months ended June 30, 2000 from 7.2% for
the six months ended June 30, 1999.

         The extended downturn in capital spending by the semiconductor industry
resulted in a price competitive bidding environment. As a result, the Company
changed its strategy to purchase rather than manufacture some of its own
component parts, enabling the Company to offer its customers a wider range of
cleanroom solutions at lower prices. This strategy has enabled the Company to
increase its cleanroom revenues and gross profit margins during the first and
second quarters of 2000.

                                       17

<Page>

         With the Company's efforts to develop a portion 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, 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 second quarter of
2000 decreased by 30.9% to $1.3 million compared to $1.9 million for the second
quarter of 1999, and decreased as a percentage of contract revenue to 8.9% for
the second quarter of 2000 from 19.0% for the second quarter of 1999. For the
six months ended June 30, 2000, selling, general and administrative decreased by
35.4% to $2.4 million compared to $3.7 million for the six months ended June 30,
1999, and decreased as a percentage of contract revenue to 8.0% for the six
months ended June 30, 2000 from 16.4% for the six months ended June 30, 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.

         Research and development expense for the second quarter of 2000
decreased 100.0% to zero compared to $58,000 for the second quarter of 1999.
Research and development expense for the six months ended June 30, 2000
decreased 100.0% to zero compared to $118,000 for the six months ended June 30,
1999. As a result of the Company's strategy to purchase rather than manufacture
many of its own component parts, there has been a natural reduction in its
research and development expenses. The Company may fund future research and
development projects to improve existing products or develop new products in its
diversification program.

         Depreciation and amortization expense, not included in cost of goods
sold, for the second quarter of 2000 decreased 4.5% to $107,000 compared to
$112,000 for the second quarter of 1999. Depreciation and amortization expense
for the six months ended June 30, 2000 increased 13.8% to $264,000 compared to
$232,000 for the six months ended June 30, 1999.

         Interest expense for the second quarter of 2000 increased 19.9% to
$223,000 compared to $186,000 for the second quarter of 1999. Interest expense
for the six months ended June 30, 2000 increased 44.6% to $415,000 compared to
$287,000 for the six months ended June 30, 1999. The increases in interest
expense during both the three and the six months ended June 30, 2000 compared to
the three and six months ended June 30, 1999 are the result of an increase in
borrowings at higher interest rates against the Company's line of credit through
June 30, 2000 compared with borrowings through the same period during 1999.

LIQUIDITY AND CAPITAL RESOURCES

         Working capital at June 30, 2000 was $6.3 million compared to $973,000
at December 31, 1999. This includes cash and cash equivalents of $1.8 million at
June 30, 2000 and $296,000 at December 31, 1999. The Company's operations used
$2.0 million of cash during the six months ended June 30, 2000, compared to $1.1
million of cash used in operations during the six months ended June 30, 1999.
During the six months ended June 30, 2000, the Company experienced increases in
costs and estimated earnings

                                       18

<Page>


in excess of billings on contracts in progress, accounts receivable, accounts
payable and accrued liabilities and billings in excess of costs and estimated
earnings on contracts in progress. These increases were primarily due to an
increase in work in process resulting from work on a higher number of cleanroom
projects. In addition, the Company experienced decreases in the line of credit,
deferred income taxes and inventories during the six months ended June 30, 2000.

         The Company maintains a revolving line of credit with a domestic bank
for the lesser of $5,000,000, or the available borrowing base. The interest rate
is computed at the bank's prime rate plus 5 percent per annum and requires
monthly payments of interest. The Company had approximately $4.2 million in
borrowings against the line at June 30, 2000 (approximately $5.3 million 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 June 30, 2000. The
line of credit is collateralized by certain domestic and foreign 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.

         On April 28, 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. The net cash received by the Company was $4,575,000.

         Management believes that existing cash balances, borrowings available
under the existing line of credit or future credit facilities, and cash
generated from operations 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.

FACTORS AFFECTING FUTURE RESULTS

         The Company's future operations will be impacted by, among other
factors, risks and uncertainties that could result in actual operating results
differing materially from anticipated operating results and past operating
results and trends. These risks and uncertainties include the need for
additional capital, the availability and price of such capital, pricing
pressures, cancellations of existing contracts, timing of significant customer
orders, increased competition, and changes in semiconductor and cleanroom
technology.

THIS REPORT CONTAINS CERTAIN "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.

                                       19

<Page>

                                   SIGNATURES

         Pursuant to the requirements 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)

                                       20