OLG Offshore Logistic

Offshore Logistics, Inc. (NYSE:OLG) said today that it has amended its current contract with Sikorsky Aircraft to increase the number of helicopters purchased and extend the contract period through fiscal year 2013. Through the amended contract, the Company will purchase 35 S-76C+ helicopters as part of its ongoing fleet renewal program. Three of these 35 helicopters were part of the original contractual commitment with Sikorsky Aircraft, which was announced in February 2003. These new aircraft will be used to support growth opportunities in its international and U.S. operations as well as to replace older helicopters in its existing fleet. The contract extension, which was announced today at the Paris Air Show, also has provisions for the optional purchase of up to 24 additional S-76C+ aircraft. The Company said it expects to fund the purchase of these aircraft through internally generated cash from operations and with additional funding from its available credit lines if necessary. A total of 11 helicopters have been delivered and a 12th helicopter is expected to be delivered in August 2005 under the original agreement with Sikorsky. The contact announced today amends that agreement and increases the total number of helicopters ordered. The first helicopter under the amended contract is due to be delivered late in the current fiscal year and a total of 19 additional aircraft are to be delivered in fiscal 2007 and 2008. The remaining helicopters are slated for delivery between fiscal year 2009 and fiscal year 2013. The agreement also provides for annual trade-in options of older aircraft similar to that provided in the original contract. Commenting on the aircraft purchase, William E. Chiles, President and Chief Executive Officer of Offshore Logistics said, "We have been extremely pleased with the performance of the S-76C+ aircraft that we acquired as part of our 2003 fleet renewal program. They have certainly lived up to our expectations and have increased the efficiency and flexibility of our fleet. We decided to extend our relationship with Sikorsky as part of our ongoing strategic review. We expect to use these helicopters throughout the world, particularly in our international operations where we see continued strong growth. They will also enable us to replace older aircraft in our current fleet." Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Russia, Egypt and the Far East. The Company's Common Stock is traded on the New York Stock Exchange under the symbol OLG. Statements contained in this press release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected, estimated or implied in such forward-looking statements. Factors that could cause actual results to differ materially from those contained in this press release include, without limitation, the possibility that the benefits of the contracts are less than anticipated, that the helicopters do not continue to live up to the Company's expectation and that strong growth does not occur in the Company's international operations. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K for the year ended March 31, 2004 and the Company's report on Form 10-Q for the quarters ended June 30, September 30 and December 31, 2004. Copies of these may be obtained by contacting the Company or the SEC. The Company does not intend to update any of its forward-looking statements.