Bermuda Aviation Services – Market Announcement

Hamilton, Bermuda – 18 July, 2011 – In a filing with the Bermuda Stock Exchange (“BSX”), Bermuda Aviation Services Limited (the “Company”; Ticker: BAS.BH) released a market announcement affecting the wholly owned subsidiary, Aircraft Services Bermuda Ltd. (ASB). The notice reads:

“Having served Bermuda at the L.F. Wade International Airport for more than 60 years, Bermuda Aviation Services Ltd. (BAS) has announced that effective August 31, 2011, its subsidiary Aircraft Services Bermuda Ltd. (ASB), will make operational closures in the following segments of its airport operations: Commercial Aircraft Ramp Operations, Passenger and Check-in Services and Aircraft Technical Services. ASB is negotiating the sale of its equipment related to these discontinued business segments.

After carefully considering the local economy, the financial pressure exerted by commercial airlines as they attempt to contain their costs and most significantly the impacts of competition, it was felt that this was the opportune time to exit from these business segments.

These are business segments that ASB operated on a thin or sub marginal basis as it was a broader corporate objective to keep Bermudians gainfully employed. Whilst we are appreciative of Government’s intent to encourage competition in the aviation handling service sector, BAS has always held the view that Bermuda, as a jurisdiction, is too small for multiple service providers.

Thirty-five positions will be made redundant as a consequence of these segment closures.

BAS Chairman, Michael Darling said, “It has been an emotional and difficult decision as these segments of ASB’s operations have been a part of the legacy upon which BAS has grown to the diversified group of companies that it is today. BAS was born in aviation. It is always challenging when one has to separate personal attachment to reach a pragmatic business decision and this is no exception. We are very cognizant and appreciative of the contribution of countless men and women who have been a part of ASB over the last 60 years.”

ASB will still continue operate its Cargo Customer Service division providing cargo clearance and handling services, its Garage Service providing internal and external vehicular maintenance and the Private Jet Base.

Recently renovated and rebranded as the LOM Executive Jet Facility through a collaborative effort with the LOM Group, the Private Jet Base will become the primary focus of ASB’s on-going operation. Serving approximately three thousand flights per year it is Bermuda’s premier gateway for executive travel.

Ken Joaquin, President and Chief Executive of the company, stated "It is always our intention to position our company where it affords maximum shareholder value for those that invest in us. This strategic initiative should assist us in achieving this goal".

For Further Information contact:

Kenneth Joaquin

Group President and Chief Executive Officer