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Todd Shipyards Corporation Announces Notification of USS Sacramento Decommissioning
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Via Facsimile
Total Pages - 1
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Contact: Summer O'Connor
Shareholder Relations
206-623-1635 Ext. 106
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SEATTLE, WASHINGTON...January 14, 2004... Todd Shipyards Corporation announced
today that its wholly owned subsidiary, Todd Pacific Shipyards Corporation ("Todd Pacific"
or the "Company") has been informed by the US Navy that the USS Sacramento (AOE 1), is
scheduled to be decommissioned on or about October 1, 2004. The Sacramento is one of the four
AOE class ships originally covered by the Company's six-year, cost-type contract with the Navy,
under which the Navy has options to have Todd Pacific perform maintenance work on the ships.
The contract, which is the Company's fourth consecutive, multi-year contract with the Navy on the
AOE class vessels, was awarded on a sole source basis in June, 2001. The original contract
included options for thirteen repair availabilities to be performed in the 2001 through
2007 contract period and was expected to have a notional value of approximately $180 million if
all of the options were exercised.
To date, four such repair availabilities have been accomplished. Five availabilities under the
contract will not be exercised by the Navy due to the previously announced transfer of the
USS Bridge and USS Rainier to Military Sealift Command. Of the two remaining availabilities for
the USS Sacramento, one is being exercised on a reduced scale as a five-week repair availability
in the Company's fourth fiscal quarter and the other will not occur due to its
decommissioning. The AOE contract contains options for two remaining repair availabilities on the
USS Camden before contract expiration in 2007. There is no assurance that these two
remaining options will be exercised by the Navy in whole or in part. The Company does not know
at this point if it will be involved in any of the work related to the decommissioning of the Sacramento.
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