******NEWS FROM TAYLOR DEVICES, INC.**





**THIS NEWSLETTER IS DIRECTED TO ALL SHAREHOLDERS OF TAYLOR DEVICES. WE
HOPE THAT IT WILL GENERATE INTEREST IN THE COMPANY, PLUS PROVIDE CURRENT
FINANCIAL AND PROJECT INFORMATION. COPIES OF THIS NEWSLETTER WILL ALSO BE
CIRCULATED TO SHAREHOLDERS WHO HAVE SHARES IN BROKERAGE ACCOUNTS.**



**ITEM: ANNUAL MEETING**

Our Annual Meeting of Shareholders was held on November 14, 2003. The total
number of outstanding shares of Taylor Devices' stock on the meeting record date
was 2,926,460. A total of 2,293,006 shares were present in person or by proxy at
the meeting.

**Results for Election of Directors and term expiration
date:**

2,270,586 Shares voted for the election of Donald B. Hofmar, term to expire
2006 2,261,249 Shares voted for the election of Richard G. Hill, term to
expire 2006

All of us at Taylor Devices, Inc. thank you for your continued support.



**ITEM: FINANCIAL RESULTS**

Taylor Devices completed the second quarter of its fiscal year on November
30, 2003. Comparative financial results for the first quarter, second quarter,
and six month periods are as follows:

|**FIRST QUARTER (8-31-03)**   | **F/Y 03-04**  | **F/Y 02-03** 
|----------------------------- | -------------- | --------------
|                              |                |               
|**SALES**                     | **$2,989,261** | **$4,021,331**
|**NET EARNINGS (LOSS)**       | **($201,129)** | **$362,386**  
|**SHARES OUTSTANDING**        | **2,926,460**  | **2,874,616** 
|**EARNINGS (LOSS) PER SHARE** | **(7¢)**       | **13¢**       





|******SECOND QUARTER (11-30-03)** | **F/Y 03-04**  | **F/Y 02-03** 
|--------------------------------- | -------------- | --------------
|****                              |                |               
|**********SALES**                 | **$3,354,261** | **$3,040,983**
|**NET EARNINGS (LOSS)**           | **($117,448)** | **$225,108**  
|**SHARES OUTSTANDING**            | **2,950,450**  | **2,883,998** 
|**EARNINGS (LOSS) PER SHARE**     | **(4¢)**       | **8¢**        



|**SIX MONTHS (11-30-03)**     | **F/Y 03-04**  | **F/Y 02-03** 
|----------------------------- | -------------- | --------------
|****                          |                |               
|**********SALES**             | **$6,343,522** | **$7,062,314**
|**NET EARNINGS (LOSS)**       | **($318,577)** | **$587,494**  
|**SHARES OUTSTANDING**        | **2,950,450**  | **2,883,998** 
|**EARNINGS (LOSS) PER SHARE** | **(11¢)**      | **20¢**       



Taylor Devices has been affected by a depressed economy in the U.S.
construction markets, resulting in reduced sales of the Company's seismic
protection products. This is coupled with a slowing of funds being provided to
support new aerospace programs because of the cost of the present war effort in
the Middle East. Overall sales have dropped and this is reflected in losses for
the first and second quarters of the fiscal year. Our commercial product mix
includes mostly export sales of our seismic dampers, with the Company incurring
higher shipping and export costs in order to remain competitive in offshore
markets. Military and aerospace product sales have remained steady during this
period, although the order mix has shifted to reflect increased military
purchases to support our troops in the Middle East.

Because a good portion of our commercial sales relate to long term
construction projects, the Company lagged in experiencing the onset of the
2002-2003 recession. Projects of this type can also be expected to lag the
consumer spending increases that traditionally herald the end of a
recession.

Our firm order backlog is $7.5 million, with a product mix leaning heavily
toward aerospace and defense.

**ITEM: NEW ORDERS SEISMIC**

- ***East Bay Municipal Utility District - Oakland,
  California***

This project is a seismic retrofit of an existing administration building,
using 50 dampers, each rated for up to 300 tons of output force. The building is
nine stories tall, and was completed in 1991. However, when originally built,
the seismic code in effect dated to 1982. The owner has elected to upgrade the
building to meet higher seismic performance standards.

- ***Taiwan Semi-Conductor Corporation - Hsin Chu City,
  Taiwan*****

This new computer chip manufacturing plant is in an area with nearby highways
and intense seismic activity. The manufacturing of computer chips requires a
work space virtually free of all shock and vibration. Even the smallest
vibrations or motions of any type will cause degradation of product quality.
Thus, this new facility will be using Taylor Devices' dampers for both
earthquake and vibration protection. The dampers will be equipped with special
design features to insure that the energy of the tiniest vibration will be
absorbed by the dampers. The project will use 58 dampers, each rated at up to
130 tons of force.

- ***Kuomei Condominium - Taipei, Taiwan***

This new fourteen-story residential housing project will use dampers for
seismic protection and to reduce motions during high wind storms. The wind
motion reduction is used to enhance occupant comfort and will be used by the
owner as part of the marketing campaign for the new housing units. Dampers rated
at 100 tons of output force will be used.



**ITEM: NEW ORDERS AEROSPACE / DEFENSE**

- ***Space Shuttle Launch Complex Upgrade*****

In our Summer 2003 Newsletter, we announced the receipt of a new NASA order
for Payload Bay isolation systems for the three Space Shuttles. The Company has
recently received a second order from NASA for upgrading sections of the Kennedy
Space Center Launch Center with shock isolation systems for electronic equipment
rooms. The shock isolators will be used to reduce equipment loadings from air
blast and ground shock when the Shuttle lifts off. These loads are very high for
Shuttle launches as compared to those from much smaller rockets used to launch
satellites. This is due to the sheer size and power of the two large solid
rocket boosters of the Shuttle. Work is expected to be completed on the project
within 2004, supporting the planned restart of Shuttle missions.

- ***Isolation System for Tactical Laser***

The Company has recently been awarded a contract to isolate a medium-size
tactical laser system mounted on an air-based platform. This project is similar
to two previous projects in the years 1999-2003 for other weapons systems of
this type, but of different weights and sizes. All these projects relate to
defense against enemy missiles, with the laser being used to engage a target
before it can begin jamming or attempt evasive maneuvers. The sheer size of
these systems relative to the vehicle they are installed upon requires an
isolation system to accurately stabilize the laser under all conditions of shock
and vibration. The frictionless hermetic dampers and modular machined springs
developed by our affiliate, Tayco Developments, are ideal for this application.
Defensive weapons of this type have potential applications when deployed against
terrorists, guerilla bands or for homeland defense.



**ITEM: 74th SHOCK AND VIBRATION SYMPOSIUM, SAN DIEGO,
CALIFORNIA******

The 547 people attending this Government-sponsored conference experienced
firsthand the raging Southern California forest fires occurring during the last
week of October 2003. The Company sent four employees to this event. Douglas P.
Taylor was the instructor for a training session on "Isolation and Dissipation,"
receiving a SAVIAC Director's Award for his presentation. Alan Klembczyk, of our
engineering staff, received an award from the U.S. Special Operations Forces
(Navy Seals and Special Boat Teams) for his contributions to Operation Iraqi
Freedom. A similar award was presented to Michael Mosher of Tayco Developments.
The Seals presented these awards for the success of Taylor and Tayco's new
Military Seating Isolation Systems during recent Special Operations Warfare
missions.

Technical papers presented by Taylor and Tayco employees were:





By: Michael Mosher, Tayco Developments, Inc.

By: Douglas P. Taylor

**ITEM: TORRE MAYOR DAMPERS FEATURED IN POPULAR SCIENCE
MAGAZINE**

The December 2003 issue of Popular Science was devoted to the "Top 100
Technical Innovations of 2003." Featured prominently were the Torre Mayor
building and its use of large dampers in mega brace elements for seismic
protection. Unfortunately, the editors did not mention Taylor by name, only that
the dampers were "adapted from declassified military technology." By the same
token, many technical papers on Torre Mayor presented within the engineering and
architectural communities do mention the Company by name, and these are
the people who specify and use dampers in their projects.



|By: | s/Douglas P. Taylor
|--- | -------------------
|    | Douglas P. Taylor  
|    | President