TODD SHIPYARDS CORPORATION 

ANNOUNCES QUARTERLY FINANCIAL RESULTS FOR JULY 2, 2006

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

SEATTLE, WASHINGTON...August 10, 2006...Todd Shipyards Corporation (the "Company") announced financial results for the first quarter ended July 2, 2006.  For the quarter, the Company reported a net loss of $0.7 million or $0.13 per diluted share on revenue of $20.2 million.  For the prior year first quarter ended July 3, 2005, the Company reported net income of $2.5 million or $0.44 per diluted share on revenue of $66.9 million.

Revenue and profitability in the recent quarter were unfavorably impacted by lower Navy work volumes, as compared with the first quarter in the prior year.  The majority of the Company's Navy work volumes are associated with vessel availabilities executed under multi-year option contracts.  In the first quarter of the prior year, revenues and profitability were favorably impacted by overhaul work on the aircraft carrier USS Stennis, Post Shakedown Availability work on the destroyer USS Momsen, and dry docking of the frigate USS Ford.  In contrast, the first quarter of the current year coincided with the planning phase for overhaul work on the aircraft carrier USS Lincoln, which is expected to commence in September 2006.  

For the quarter ended July 2, 2006, the Company reported an operating loss of $1.8 million.  In the prior year quarter ended July 3, 2005, the Company reported operating income of $3.4 million.  The quarter to quarter decrease in operating income is primarily attributable to the above mentioned decreases in work volumes.

The Company reported investment and other income of $0.4 million and $0.3 million for the quarters ended July 2, 2006 and July 3, 2005, respectively.

For the first quarter ended July 2, 2006, the Company reported a loss before income taxes of $1.1 million and recorded $0.4 million of federal income tax benefit, resulting in a net loss for the period of $0.7 million.  In the prior year period ended July 3, 2005, the Company reported income before income taxes of $3.7 million and recorded $1.3 million in federal income tax expense, resulting in net income reported for the period of $2.5 million. 

"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**