BAS Reports Unaudited Six Months Results

Hamilton, Bermuda:  1 November 2005 - Bermuda Aviation Services Ltd. submitted the following Chairman's Report to the Bermuda Stock Exchange (BSX):

"THE SIX MONTHS RESULTS OF BERMUDA AVIATION SERVICES LTD. (BAS) SHOULD CLEARLY INDICATE TO YOU OUR SHAREHOLDERS, THAT FOR OUR COMPANY THE FUTURE OF IS VERY BRIGHT AND THAT OUR EARNINGS GROWTH PROSPECTS HAVE NEVER BEEN STRONGER.  THE COMPANY POSTED AN OPERATING PROFIT OF $2.5 MILLION FROM CONTINUING OPERATIONS WHICH WAS 73% AHEAD OF THE SAME PERIOD A YEAR AGO. NET INCOME AT $1.9 MILLION, OR $I.77 PER SHARE WAS 70% HIGHER. BOTH ARE RECORD RESULTS FOR ANY SIX MONTH PERIOD IN THE COMPANY'S HISTORY.  REVENUE DURING THE PERIOD WAS INCREASED 119% TO $18.2 MILLION WHILST EXPENSES ROSE 129% TO $15.7 MILLION. BAS SHARES TRADED AT AN ALL TIME HIGH OF $14.00.

FISCAL DISCIPLINE HAS PRODUCED EXCELLENT RESULTS ACROSS ALL OF OUR COMPANIES.  WHILST WEIR ENTERPRISE, INTERNATIONAL BONDED COURIERS BERMUDA LTD. (IBC) AND BAS-SERCO WERE AHEAD OF PLAN, AIRCRAFT SERVICES BERMUDA LTD (ASB) AND CROW LANE BAKERY LTD. (CLB) COULD ONLY MEET PLAN. IN THE CASE OF ASB, THIS IS DUE TO THE STATE OF THE AIRLINE INDUSTRY WHERE AT LEAST HALF THE MAJOR CARRIERS THAT SERVE BERMUDA HAVE BEEN UNDER BANKRUPTCY PROTECTION AT SOME TIME DURING THIS PERIOD. THAT IS A SITUATION THAT REQUIRES CAREFUL CONSIDERATION AS FAILURE TO SECURE ADDITIONAL REVENUE TO COVER OUR ESCALATING COSTS WILL HAVE A PROFOUND IMPACT ON ASB'S PROFITABILITY. IN THE CASE OF CROW LANE BAKERY WE HAVE EXPERIENCED HIGHER COSTS DUE TO ELECTRICITY, FUEL AND INGREDIENTS WHICH ALL INCREASED OVER OUR ESTIMATES.

EARNINGS FOR THE REMAINING SIX MONTHS OF THIS FINANCIAL YEAR ARE EXPECTED TO IMPROVE SIGNIFICANTLY FOR THE GROUP.

OUR GROWTH AND SIZE HAS ENCOURAGED BAS TO UNDERTAKE SEVERAL INITIATIVES TO MODERNIZE THE WAY WE CONDUCT OUR BUSINESS. THE DECREASE IN THE PAR VALUE OF OUR SHARES, APPROVED AT A SPECIAL GENERAL MEETING ON OCTOBER 28 IS ONE AND IS OF SIGNIFICANT MENTION. SECONDLY, THE INCREASE IN SHARE CAPITAL WHICH WAS ALSO APPROVED AT THAT MEETING IS ALSO IMPORTANT AS IT PRESENTS THE OPPORTUNITY TO USE THOSE SHARES FOR STRATEGIC PURPOSES AND, IF APPROPRIATE, TO REWARD OUR SHAREHOLDERS. THE PRESENT STRUCTURE OF SHARES DOES NOT PROVIDE FOR US TO DO THIS.

TO ENSURE THAT EACH AREA OF OPERATION RECEIVES THE APPROPRIATE OVERSIGHT REQUIRED WE HAVE MADE CHANGES IN THE AIRPORT OPERATIONS' MANAGEMENT STRUCTURE. RAYMOND PACKWOOD, OUR HEAD OF GROUP FINANCE HAS BEEN GIVEN THE ADDITIONAL RESPONSIBILITY OF CHIEF EXECUTIVE OFFICER OF AIRCRAFT SERVICES BERMUDA LTD. (ASB) AND CROW LANE BAKERY LTD. EUGENE BALL, WHO PREVIOUSLY

WAS MANAGER OF PASSENGER SERVICES AND PRIVATE JET OPERATIONS, HAS BEEN PROMOTED TO CHIEF OPERATING OFFICER OF ASB, RESPONSIBLE FOR DAY TO DAY OPERATIONS. WE ARE ALSO PLEASED TO ANNOUNCE THAT OUR PRESIDENT, GENE BEAN, WHO HAS SPEARHEADED THE GROWTH OF BAS OVER THE PAST TWELVE YEARS AND HAD ANNOUNCED HIS INTENTION TO RETIRE NEXT YEAR, HAS AGREED TO CONTINUE WITH THE COMPANY FOR AN INDEFINITE PERIOD. HE WILL RETAIN THE TITLE OF GROUP PRESIDENT AND CHIEF EXECUTIVE OFFICER. 

WE ARE ALSO PLEASED AT THIS TIME TO WELCOME GLEN SMITH TO OUR BOARD. GLEN WAS PREVIOUSLY PRESIDENT OF IBC LTD., WHICH BAS ACQUIRED JUST A YEAR AGO. WE LOOK FORWARD TO HIS PARTICIPATION."

Signed by:                                                                                                                    

Michael L. Darling                                                                                    

Chairman