Bermuda Aviation Services – CEO’s Letter To Shareholders

Hamilton, Bermuda – 09 November, 2010 – The Bermuda Stock Exchange (“BSX”), to accompany the release of the Bermuda Aviation Services Limited (the “Company”; Ticker: BAS.BH) Interim unaudited 2010 Financial Report, has released the Group President and CEO’s Letter to shareholders.

To our shareholders:

“BAS has posted net earnings of $1.45 Million for the six-month period ending September 30th 2010, whilst our earnings from operations stand at $1.74 Million. A respectable result given the state of the local economy that speaks to Management’s continued focus on cost containment and efficiency in these difficult times.

There is nothing new to be said about the local economic environment. It is sufficient to say that it still lacks luster and the midterm outlook remains uncertain. However Management believes that BAS is comprised of a solid foundation of diverse, legacy companies that will see it weather the economic climate and always provide good value for its shareholders.

For BAS it has been a six-month period where we have seen our revenue, in contradicting fashion, rise near 6% over last year. This revenue increase has been driven solely by our subsidiary CCS Ltd. which has aggressively pursued sales on much more competitive margins, a necessary strategy in these challenging times. Although this strategy has consequently driven up BAS’s consolidated revenues and direct costs, we have been able to contain our operating expenses over the prior year as we have strived to do more with less.

ASB Ltd. has returned a modest profit for the six-month period, a result that has exceeded management’s initial expectations, given the absorption of significant restructuring costs, new competition and continuing weak airline volumes. While the bottom line result is not exceptional, it is definitely encouraging; as it has underscored that the organizational enhancements instituted by Management are driving the efficiencies that we were looking for.

BAS-Serco, Weir Ltd. and Otis Bermuda Ltd. have had strong mid-year results. BAS-Serco has managed to duplicate the same robust performance that it had last year with net earnings in line with those of the prior period. The latter two companies have impressively outperformed the previous year’s results having done so with marginally lower revenues.

IBC Ltd., had an acceptable six-month performance. Although flat revenue growth and increased direct cost associated with the cost of airfreight has eroded net earnings compared to the prior year, Management is in no doubt that IBC is fundamentally a sound company and this ebb in earnings is a reflection of the broader local economy.

CCS Ltd. has incurred a series of accounting errors, which despite having no cash impact on the company have necessitated adjustments that have caused a material reduction in the six-month net earnings of the company compared to the prior year. Management has acted decisively by making organizational changes and redesigning accounting processes to prevent the re-occurrence of similar issues.

The next half of the year will be equally challenging, if not more so, for the local economy. Management is committed to remaining vigilant and seeking out greater efficiencies and opportunities to strengthen BAS."

Kenneth Joaquin

Group President and Chief Executive Officer