******NEWS FROM TAYLOR DEVICES,
INC.****SHAREHOLDER LETTER, SPRING 2004**



**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: FINANCIAL RESULTS**

Taylor Devices completed the third quarter of its fiscal year on February 29,
2004. Comparative financial results for the third quarter and nine months
periods are as follows:

|**THIRD QUARTER**      | **F/Y 03-04**  | **F/Y 02-03**  
|---------------------- | -------------- | ---------------
|**SALES**              | **$3,372,094** | **$4,049,385** 
|**NET EARNINGS**       | **$55,862**    | **$135,411**   
|**EARNINGS PER SHARE** | **2¢**         | **5¢**         
|                       |                |                
|**NINE MONTHS**        | **F/Y 03-04**  | **F/Y 02-03**  
|**SALES**              | **$9,715,617** | **$11,111,699**
|**NET EARNINGS**       | **($262,712)** | **$722,905**   
|**EARNINGS PER SHARE** | **(9¢)**       | **25¢**        
|                       |                |                
|**SHARES OUTSTANDING** | **2,973,603**  | **2,900,876**  

Taylor Devices' firm order backlog is $6.3 million. The Company continues to
be negatively affected by a depressed economy in the construction markets for
seismic protection products. This is particularly true in California, the
largest traditional outlet for seismic dampers in the USA. Sales volume of our
seismic dampers remain at low levels, and the Company is presently controlling
costs while waiting for the economy to improve. These cost reduction efforts are
reflected in a return to profitability in the third quarter. Aerospace and
military sales have remained steady during the period. Export sales have
remained constant and will hopefully improve as a result of a recent shift in
the relative value of the U.S. dollar that is favorable for exports.

**ITEM: NEW ORDERS, SEISMIC**

***Two Towers Project - Mexico City, Mexico***

The success of the Torre Mayor Tower in Mexico City has generated intense
interest in Taylor Devices' Seismic Dampers for use in new construction in
Mexico. This interest was reinforced when Torre Mayor withstood major
earthquakes in 2003 with zero damage. This successful record has led to the
Company receiving an order for dampers for two side-by-side office towers, both
are 37 floors high, located in downtown Mexico City. The two buildings will
utilize a total of 88 Taylor Seismic Dampers each rated for output forces up to
150 tons. When completed, the Two Towers Project will feature luxury apartments
with only four units per floor, proximate the metro shopping area.

Located on a prominent hillside, on Bosque de las Lomas near Santa Fe, the
towers use large foundations to properly support the buildings in the soft soil
typical of the Mexico City region. Each tower has underground parking. The
building frames use damper arrangements reminiscent of those used on our
previous Torre Mayor Project. Mega brace attachments will be installed on each
damper at the job site making the dampers long enough to fully span three floors
of the building. This technique maximizes the available interior living space,
plus provides a visually pleasing geometric damper pattern when viewed from a
distance. The two towers provide a total of 653,000 square feet of floor
space.

***Forum Building - Sacramento, California***

This 14 floor steel frame and masonry office building will be given a seismic
retrofit adding Taylor Seismic Dampers to provide upgraded earthquake
protection. A total of sixteen dampers will be used, each rated for up to 100
tons of force. This effort is a result of the building undergoing a complete
interior removal and restoration. Located in downtown Sacramento, the Forum
Building is largely occupied by Government related or affiliated organizations
desiring a physical presence in the California State Capitol. The Forum is an 88
year old, 117,000 square foot historic structure in Sacramento. The original
construction was done by Cameron Boothroyd, considered one of the pioneers of
urban development in this region.

**ITEM: NEW ORDERS, AEROSPACE / DEFENSE**

***Evolved Expendable Launch Vehicle
(EELV)*****

In 1999, Taylor Devices was funded to provide wind dampers and launch control
dampers for this new series of unmanned space launch vehicles. We recently
received an order for a second launch pad set of the EELV dampers for new launch
facilities being constructed at the Vandenberg Air Force Base in California. The
new launch site will augment the current EELV launch pad complex at Cape
Canaveral, Florida.

The EELV, first launched in 2002, has a primary mission of providing supplies
to the International Space Station. The EELV has additional capability as a
satellite launch vehicle. Taylor Dampers for this program use electronic
controls to vary the output to suit different vehicle configurations and launch
weather conditions. The semi-active technology behind these products was
developed by our affiliate, Tayco Developments, Inc. Several patents have been
issued to Tayco related to this type of component.

***U.S. Army Gun Project*****

The Company recently received a development contract for an improved recoil
control absorber for a new U.S. Army ordnance project. Initial prototype
evaluation has successfully been completed using live-fire testing at a U.S.
Army test center. Additional testing will be taking place through 2004 to
qualify the new recoil absorber for production. The Company feels that this new
project has a high potential for production orders due to the current emphasis
being placed on the capabilities of our Army and Marine Corps land forces in the
Middle East.

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

In the Winter Newsletter the Company announced receipt of a NASA contract to
upgrade equipment rooms of the Space Shuttle launch facilities at Kennedy Space
Center in Florida. These large rooms house electronic systems that must be
protected against the shock and vibration of Shuttle launches. In February, NASA
issued the Company a second contract to outfit additional areas of the Space
Center with our isolation systems.

***Military Seating System Order*****

Over the past year our affiliate, Tayco Developments, has had numerous
successful tests of a new shock isolator for use in the seats of military
vehicles. Taylor Devices fabricated the experimental isolators for Tayco. We
understand from Navy sources that the prototype seating systems have been used
extensively in combat operations and have proved to be extremely successful.

The U.S. Navy SEALS have recently placed orders with Taylor Devices for seat
isolators to back-fit all seats in their fleet of Mk V Special Operations Boats.
These boats somewhat resemble World War II era Patrol Torpedo (PT) boats, and
are 82 feet long, 18 feet wide, with a displacement of 57 tons. Powered by two
2,200 horsepower engines, the Navy states that the Mk V has a top speed in
excess of 55 MPH, with a range exceeding 500 miles. Its primary mission is to
carry Special Operations Forces into and out of combat operations. The Mk V
boats also support limited coastal patrol and enemy force interaction
activities.

**ITEM: TAYLOR DEVICES FEATURED IN "TAIWAN ARCHITECTURE" MAGAZINE**

The U.S. trade publications "Architectural Record" and "Engineering News
Record" are considered at the forefront of the U.S., Canadian, and Mexican
building construction fields. Other countries have similar publications, and
"Taiwan Architecture" is the ranking publication in this field for the Republic
of China.

The most recent issue of this publication stresses new approaches to seismic
design, and includes several articles on new building projects in Taiwan using
Taylor Dampers. Excellent closeup photographs of the Company's dampers are
featured. Articles are included on the dampers in the Taishin Bank Buildings,
the Buddhist Church Headquarters, the Tzu Chi Hospital, the Grand Master
Condominiums, and the Gutai Construction Condominiums. The magazine's editorial
section also includes a discussion on damping and code policy for structures in
Taiwan by several practicing engineers and professors from the Taiwan National
Center for Research in Earthquake Engineering. Taiwan is a country noted for
extremely high seismic activities, with frequent earthquakes of magnitude 5.0
and higher.

The Company hopes that this favorable publicity will lead to future projects
both in Taiwan and the rapidly developing Asian countries.

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