Bermuda Aviation Services Chairman's 6-Month Report to 30 Septemeber 2008

Hamilton, Bermuda, 10 November, 2008 - BAS Group (Ticker: BAS.BH)  President, Kenneth Joaquin, issued the following report to shareholders on the firm's half year results:

"I am pleased to report our net earnings for the six-month period of $2,225,591 has exceeded the prior period's earnings by over 12% and set a record Operating Income of $2,568,288. Our half year results are remarkably only 6% behind our full-year results for 2007! BAS has achieved a marked turnaround in its performance. These results have been a consequence of our senior executives tackling many of the challenges identified in our last annual report and diligently executing our plan to restore the company's earning potential. The results, we believe, stand on their own merit. Whilst we are pleased with these results we are mindful of the current and future global economic challenges and their knock on effect on the Bermudian economy.

In truth, we have not been immune from the global economic pressures and the point could not have been made clearer than with ASB Ltd. Notwithstanding the universally accepted premise that the airline industry, in general, is struggling, we have been directly impacted by the collapse of Zoom Airlines. The failing airline has caused ASB Ltd. to incur a write-off of $150,000 in the first six months, with a further write down expected later in the year. Despite the magnitude of the write-off the consolidated results are still assuring.

Once again, the wisdom of our diversification has proven well founded. For while ASB Ltd. has struggled the rest of the group has carried the mantle. BAS-Serco has exceeded both last year's results and our budgetary expectations and continues to move from strength to strength. Otis Bermuda Ltd. has also exceeded both prior year and budgetary performance. As we continue to execute our plan to stream-line and create efficiencies, we have recently made the decision to make Otis Bermuda Ltd. a sub-division of BAS-Serco Ltd.

IBC Ltd., despite the continued pressure of increased carrier costs, has done well in the first six months. However we are ever mindful heading into the second half of the year with a looming economic slowdown of the impact on our Zip X product. After an uninspiring performance last year, CCS Ltd. has produced stronger results and has performed to expectations. Weir Ltd. continues to produce consistent and steady results having had a solid first six-months.

The next half of the year holds many uncertainties for the local economy and as such we intend to remain vigilant and look for efficiencies and opportunities to strengthen BAS. Nonetheless, we believe that our full year results will bear out the prudence of our actions and be commendable. "