Bermuda Aviation Services – Chairman’s Letter To Shareholders

Hamilton, Bermuda – 26 July, 2010 – The Bermuda Stock Exchange (“BSX”), to accompany the release of the Bermuda Aviation Services Limited (the “Company”; Ticker: BAS.BH) 2009 Financial Report, has released the Company Chairman’s Letter to shareholders.

“This year I am delighted to report that, despite going through one of the most difficult economic periods since the early eighties, we have come out with positive and very satisfactory results. I think this quote from a famous female aviator, Elinor Smith, epitomizes the approach taken by our management team.

It had long come to my attention that people of accomplishment rarely sit back and let things happen to them. They went out and happened to things.”

Despite a fall in revenues of $5 million, the company has generated an operating income of $2.4 million. This is entirely due to the superb control of costs by management.

We are delighted with our settlement agreement with the Bermuda Government which you will find detailed in the report from Management. This results in a net income of $5.5 million. We have used the proceeds to retire all remaining debt and to enhance cash flows for the next fiscal year.

Fortunately, we are no longer just an aviation company and our strength comes from diversity. ASB, because of events beyond our control, has been particularly affected by the downturn in the local economy. In the future, we expect positive results as management has restructured this Company.

BAS-Serco and Weir have been our superstars but all other companies have done extremely well considering the general state of the economy. I congratulate all of the management teams for their outstanding efforts in this tough environment. I thank all of our men and women who get the job done and I am sure I speak for all our shareholders.

Once again we are surprised to see our shares trade below $5.00 despite consistent profitability and dividend distribution. We must assume that the overall decline of the Bermuda Stock Exchange has some bearing on this.

I believe that we will continue to face challenges in the year ahead as the local economy remains depressed. However, we are optimistic that despite this, through aggressive  management, we will steer a steady course. On behalf of the Directors, I congratulate and thank management for their hard work and excellent results.”

Michael L. Darling

Chairman