Coast Guard Exercises Option on Dry-Docking and Overhaul Of Cutter Healy

SEATTLE – Todd Shipyards Corporation announced today that the U.S. Coast Guard has awarded to its wholly owned subsidiary, Todd Pacific Shipyards Corporation, a $12.5 million modification to previously awarded contract HSCG85-05-C-625306 in support of repairs and alterations performed during the triennial Dry-Docking Planned Maintenance Availability (“DPMA”) of the icebreaker USCGC Healy (WAGB-20).

The contract modification provides for the alteration and repair on the ship`s main propulsion system, auxiliary systems and many other structural, mechanical and electrical features aboard the ship, including underwater hull inspection and renewal.

The work will be accomplished at Todd Pacific`s shipyard in Seattle beginning October 20, 2009 and is expected to be completed in March 2010.

The DPMA of the USCGC Healy is being performed pursuant to the Company`s five-year multi-option firm fixed-price supply contract with the Coast Guard for the overhaul and continued maintenance of this vessel stationed at the United States Coast Guard Integrated Support Center in Seattle, Washington.

The negotiated best value procurement contract was awarded to Todd Pacific in 2005.

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