VIA FACSIMILE
CONTACT: CAROL LOUIE DRUXMAN
SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 106
SEATTLE, WASHINGTON.January 17, 2001.Todd Shipyards Corporation
(the "Company") announced it has entered into a 30-year agreement with an
insurance company that will provide the Company with broad-based insurance
coverage for the remediation of the Todd operable units at the Harbor Island
Superfund Site. The Company has been working with the EPA and other federal
and state agencies since 1986 on the remediation of the site where the Seattle
shipyard is located. The subject insurance agreement will provide coverage for
the known liabilities in an amount equal to and exceeding the Company's
current booked reserves of $15.9 million. Additionally the Company has
entered into a 15-year agreement for coverage of any new environmental
conditions discovered at the Seattle property that would require
environmental remediation.
The Company will fund this insurance from current cash reserves. The
transaction will not have a material financial effect on the Company's
consolidated Statements of Operations, nor will the transaction have a
material effect on shareholder equity (aggregate or per share).
