TODD SHIPYARDS CORPORATION ANNOUNCES AWARD OF

CONTRACT TO OVERHAUL USNS GUADALUPE (T-AO 200)

SEATTLE, WASHINGTON...March 12, 2008...Todd Shipyards Corporation (NYSE:TOD) announced today its wholly owned subsidiary, Todd Pacific Shipyards Corporation ("Todd Pacific") was awarded a contract by the Military Sealift Fleet Support Command to perform mid-term availability work on the fleet replenishment oiler ship USNS Guadalupe (T-AO 200) ("Guadalupe"). The overhaul and repair work includes tank cleaning and inspection, galley equipment replacement, habitability space repairs, main engine overhaul work, replacement of the low pressure air compressor, and various other machinery, electrical, ventilation, and piping items. The Guadalupe is expected to arrive at Todd's Seattle shipyard on April 22, 2008 and is scheduled for a 30-day pier side availability. The firm fixed priced contract award is $3,149,878.

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 and provides new construction and industrial fabrication services for a wide variety of customers. Its customers include the U.S. Navy, the U.S. Coast Guard, NOAA, the Washington State Ferry system, the Alaska Marine Highway System, and various other commercial and governmental customers. Todd has operated a shipyard in Seattle since 1916.