TODD SHIPYARDS CORPORATION ANNOUNCES U.S. NAVY EXERCISE
OF OPTION ON OVERHAUL OF USS DAVIS (FFG-60)

VIA FACSIMILE                              CONTACT:  DACIA RICHARDSON
Total Pages - 1                             SHAREHOLDER RELATIONS
                                            206-623-1635 Ext. 106

SEATTLE, WASHINGTON.December 30, 2003.Todd Shipyards Corporation
("Todd" or the "Company") announced today that the U.S. Navy has
awarded to its wholly owned subsidiary, Todd Pacific Shipyards
Corporation ("Todd Pacific"), a $7,084,130 modification to previously
awarded contract (N00024-00-C-8514).  This modification represents the
exercise of an option for the dry docking ship repair availability of
the USS Rodney M. Davis (FFG-60) ("Davis").  Work will be performed in
Seattle and is expected to be completed by April 2004.

The overhaul of the Davis will be performed pursuant to the Combatant
Maintenance Team Contract ("CMT") the Company has with the Navy for the
repair and maintenance of surface combatant class vessels (frigates and
destroyers) stationed in the Puget Sound area.  The five year, cost-
type contract was awarded during the first quarter of fiscal year 2001
by the Navy.  Work on this contract is being performed primarily in the
Company's Seattle shipyard.

Todd Pacific performs a substantial amount of repair and maintenance
work on commercial and federal government vessels engaged in various
seagoing trade activities in the Pacific Northwest.  Its customers
include the U.S. Navy, the U.S. Coast Guard, the Washington State Ferry
system, the Alaska Marine Highway system, and other government units,
plus cruise ships, U.S. flag cargo carriers, fishing boats, tankers,
tugs and barges.

Todd has operated a shipyard in Seattle since 1916 and employs more
than 850 people.