TODD SHIPYARDS CORPORATION

ANNOUNCES QUARTERLY FINANCIAL RESULTS FOR

DECEMBER 28, 2008



|VIA FACSIMILE   | CONTACT: HILARY PICKEREL
|--------------- | ------------------------
|TOTAL PAGES - 3 | SHAREHOLDER RELATIONS   
|                | (206) 623-1635 Ext. 106 

SEATTLE, WASHINGTON...February 5, 2009...Todd Shipyards Corporation ("we", "us" or "our") (NYSE:TOD) announced financial results for the third quarter ended December 28, 2008.  For the quarter, we reported net income of $2.6 million or $0.45 per diluted share on revenue of $33.5 million.  For the prior year third quarter ended December 30, 2007, we reported net income of $2.9 million or $0.50 per diluted share on revenue of $39.1 million.



Our third quarter revenue of $33.5 million reflects a decrease of $5.6 million or 14% from the same period last fiscal year.  The quarter to quarter decrease largely results from lower volumes of ship repair activity versus the same period in the prior year.

For the quarter ended December 28, 2008, we reported operating income of $2.7 million.  In the prior year quarter ended December 30, 2007, we reported operating income of $3.5 million.  The decrease in operating income in the third quarter of fiscal versus the third quarter of the prior year primarily results from the decreases in ship repair volumes versus the prior year.



We reported investment and other income of $1.3 million and $0.8 million for the quarters ended December 28, 2008 and December 30, 2007, respectively.



For the third quarter ended December 28, 2008, we reported an income before income taxes of $3.9 million and recorded $1.3 million of federal income tax





"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995



Statements contained in this Release 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.  Such risks and uncertainties include matters which relate directly to the Company's operations and properties and are discussed in the Company's filings with the Securities & Exchange Commission, as well as general economic risks and uncertainties.  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.





The results of operations are as follows:



TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Periods ended December 28, 2008 and December 30, 2007 
(in thousands of dollars, except per share data)



A copy of our financial statements for the quarter ended December 28, 2008 will be filed with the Securities & Exchange Commission as part of its quarterly report on Form 10-Q.  Our Form 10-Q should be read in conjunction with this earnings report.



TODD SHIPYARDS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 28, 2008 and March 30, 2008
(in thousands of dollars)

A copy of our financial statements for the quarter ended December 28, 2008 will be filed with the Securities & Exchange Commission as part of its quarterly report on Form 10-Q.  Our Form 10-Q should be read in conjunction with this earnings report.