SEATTLE -- Todd Shipyards Corporation (“Todd”) (NYSE:TOD) announced that its Board of Directors, at its January meeting, voted to reduce its quarterly dividend from $0.15 per share to $0.05 per share. In making this decision, the Board considered a variety of factors, including current business levels and future opportunities, the working capital requirements to build ferries for the Washington State Ferry System (including the contract to build 144-Car Ferries announced by the company on December 14, 2007, as well as other potential new construction), conditions in the financial and marine bonding markets, and the recently announced acquisition of the assets of Everett Shipyard, Inc. by Todd’s newly formed subsidiary Everett Ship Repair & Drydock, Inc. Todd Chairman Patrick Hodgson said the Board believes Todd’s continued financial flexibility will be in the best long-term interests of the shareholders. In addition to the quarterly dividend paid to the shareholders since 2003, the Company also paid a one-time extraordinary dividend to its shareholders in 2006 of $4.00 per share.

Todd Shipyards Corporation has operated shipyards in the U.S. since 1916. Its wholly owned subsidiary, Todd Pacific Shipyards in Seattle, performs a substantial amount of repair and maintenance work on commercial and federal government vessels 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.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Statements contained in this Report, which are not historical facts or information, are "forward-looking statements." Words such as "believe," "expect," "intend," "will," "should," and other expressions that indicate future events and trends identify such forward-looking statements. These forward-looking statements involve risks and uncertainties, which could cause the outcome to be materially different than stated. The Company cautions that any forward-looking statement reflects only the belief of the Company or its management at the time the statement was made. Although the Company believes such forward-looking statements are based upon reasonable assumptions, such assumptions may ultimately prove to be inaccurate or incomplete. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement was made.