Bermuda Aviation Services Ltd Release 2009 Audited Results

Hamilton, Bermuda - 06 July, 2009 - Bermuda Aviations Services Ltd. (BAS.BH) releases audited financial reports for year ended 31 March, 2009. Chairman addresses shareholders in letter dated 19 June, 2009.

"As I pen this message to our shareholders, the words on everyone's lips, with good reason, is "Global Recession". As the year progressed, in particular the latter half, revenues in the company slowed significantly. Despite this and other challenges BAS again proved it has the ability to operate and compete effectively in a difficult environment. Net income for this fiscal year improved 27% to 3.0 million dollars, reinforcing our confidence that our vision of being a profitable and leading services provider is well founded. Operating income was also ahead 16% to 3.6 million.

It was a truly tough environment for us as we experienced a decline in revenue of 475 thousand dollars, were forced to write down over 220 thousand dollars when Zoom Airlines failed, we incurred onetime costs in excess of 400 thousand for payments to Bermuda Customs for uncollected fees and incurred costs relating to an upgrade of the accounting system at CCS Ltd. Additionally the company has expended more than 200 thousand dollars defending its case against the Bermuda Government regarding its right of exclusivity pertaining to the operation of its private jet facility. We are relieved that this protracted ordeal has been settled in our favor with the arbitration panel ruling that we do have a lease until 2014 and that we have the right to operate exclusively until that time. Damages were awarded in our favor and we will also be able to recoup a large portion of our expenditure on legal costs. There may, however, have to be further expenditure on legal services as we go forward to enforce the awards of the arbitrators and the orders of the Bermuda Supreme Court.

I am pleased to be able to report that every one of our operating companies save Aircraft Services Bermuda Ltd. provided net income. Not surprisingly, our aviation business was hardest hit with a 1.6 million dollar decline in revenue as both private and commercial aircraft traffic plummeted. Greater efficiencies and improved income in Weir

Enterprise, BAS-Serco and Otis Bermuda Ltd. lifted our results.

It is our belief that tighter corporate oversight of our operating companies assisted us in increasing operating income and effectively reducing costs to meet the challenges that still face nearly every company. We will continue to aggressively oversee the operations as we steer through these difficult times. Whilst the current outlook for the local economy is uncertain, there are several reasons for BAS to be cautiously optimistic. First the previously mentioned onetime costs including litigation are behind us. Second, our focus of reducing costs and gaining efficiency across the company has been executed and is showing the desired results. And, of most importance, the leadership of each operating company, having been reviewed and in some cases altered, is secure. Although the current environment may hinder our rate of growth in the short term, our confidence in sustained profitability is unmoved. We were surprised to see our shares trade below $5 during the year considering our consistent profitability over the past few years. Comparatively, however, the price has held up rather well.

It is expected that the year ahead will be as, or more difficult, with a decline in revenues for our companies involved in packaging, aviation and IT services. Management is already taking steps to minimize the impact. However, your Board is pleased to report that the company intends to maintain its dividend at the same level for the calendar year 2009. This fiscal year, BAS distributed 57 % of its net income in dividends, which by any company standard is generous. However, with so much uncertainty ahead we think it is prudent that we review our dividend distribution more closely during this period for we will have to balance the needs of our shareholders, some of whom rely on our dividend for income, with the company's need to conserve cash to get us through these difficult times, and our desire to make further acquisitions that create value for those same shareholders. Historically, acquisitions have been a major part of our growth, and during 2009 - 2010 we will continue to look for acquisitions that fit our business and provide acceptable returns. We are minded that in these times we will need to be more diligent in these pursuits, to ensure we continue to provide the value to which you are accustomed.

I shall close by again thanking the men and women who represent us so well as they carry out their daily tasks. They, along with our executive team have again done us proud.

Michael L. Darling

Chairman