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Todd Pacific, Martinac and Nicols Brothers to Submit Joint Proposal to WSF

Maritime Activity Reports, Inc.

June 14, 2007

Todd Pacific Shipyards Corporation Reaches Agreement with Martinac Shipbuilding and Nichols Brothers to Submit Joint Single Proposal for Washington State Ferries Todd Shipyards Corporation announced that its wholly owned subsidiary, Todd Pacific Shipyards Corporation has reached an agreement with J.M. Martinac Shipbuilding Corp. and Nichols Brothers Boat Builders, Inc., to submit a Joint Single Proposal to build ferries for the Washington State Ferry System (WSF). A bill (SHB 2378) approved by the Washington State Legislature and signed into law by Governor Chris Gregoire earlier this year created a 30-day period during which "pre-qualified" and "best-qualified" shipyards -- Todd, Martinac and Nichols -- could seek to come to agreement on a Joint Single Proposal for the construction of four New 144-Auto Ferries for WSF. The discussions, which were moderated by the Governor's Office, concluded with an agreement to submit a proposal. Todd will be the prime contractor, and Martinac and Nichols will be subcontractors in the proposal. The agreement, and successfully completing the subsequent steps, would allow for the ferries to be built in the state as required by state law. The sharing of the work means none of the shipyards will become captive to just the ferry work but will be able to meet the needs of other customers.

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