Todd Shipyards To Be Acquired by Vigor Industrial

Shareholders to Receive $22.27 in Cash Per Share TODD SHIPYARDS CORPORATION (NYSE: TOD) (Todd) and Vigor Industrial LLC (Vigor) today announced that they have entered into a definitive agreement under which Vigor will acquire the stock of Todd for $22.27 per share, or approximately $130 million. The transaction is structured as an all cash tender offer. Under the terms of the agreement, which has been unanimously approved by Todds board of directors, Vigor will offer to purchase all outstanding shares of Todds common stock for $22.27 in cash per share. This represents a premium of 31% over the average closing price of Todds common stock during the three month period ended December 21, 2010. The price of Todds stock has climbed steadily during the year from a low of $13.98 to its recent 52 week high closing price of $21.00. The tender offer is scheduled to commence no later than December 30, 2010 and will expire on January 28, 2011 unless extended. The transaction is expected to close in the first quarter of 2011. We are pleased about the addition of Todd to the Vigor family, said Frank Foti, the President of Vigor. Todd is Puget Sounds leading shipyard and the combination of Vigor and Todd will create the largest and most capable marine services company in the Pacific Northwest. This transaction will be good for the customers and employees of both companies and will broaden our capabilities. The combination of resources and capabilities will allow the combined companies to expand both the scope and capacity of their ship repair and new construction business. This transaction is a testament to the excellent work Todd has done to revitalize our business. Not only is this transaction good for our stockholders, but its good for the shipyard and our employees, said Stephen G. Welch, President and Chief Executive Officer of Todd. We believe that the addition of Todds products to Vigor will help create a stronger, more diversified company with long-term advantages for both companies customers and employees. Todds management will remain intact and all contracts will remain in place. The acquisition will allow for stable utilization of facilities while continuing to strengthen the combined companies industry presence and opportunities for growth. Todds directors and officers and certain other stockholders who own an aggregate of approximately 15.3 percent of Todds outstanding stock have entered into agreements pursuant to which they have agreed to tender their shares in the tender offer and to vote their shares in favor of a merger if a vote is required by law. Vigor has obtained financing commitments to purchase all outstanding shares and refinance existing indebtedness. Under the terms of the agreement, the transaction is conditioned upon, among other things, satisfaction of the minimum tender condition of approximately 67 percent of Todds common shares, the expiration of all applicable waiting periods under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, and other customary closing conditions. In the event that the minimum tender condition is not met, and in certain other circumstances, the parties have agreed to complete the transaction through a one-step merger after receipt of shareholder approval. Under the terms of the agreement, Todd may solicit superior proposals from third parties through January 28, 2011, subject to extension at Todds option as provided in the agreement. It is not anticipated that any developments will be disclosed with regard to this process unless Todds Board of Directors makes a decision with respect to a potential superior proposal. There is no guaranty that this process will result in a superior proposal. K&L Gates LLP is acting as legal advisor to Vigor. Greensfelder, Hemker & Gale, P.C. is acting as Todds legal advisor. Houlihan Lokey Financial Advisors, Inc. acted as financial advisor to Todds Transaction Committee.