Offshore Logistics, Inc.
224 Rue De Jean – 70508
Post Office Box 5C
Lafayette, Louisiana 70505
Tel: (337) 233-1221
Fax: (337) 235-6678

PRESS RELEASE

OFFSHORE LOGISTICS, INC.
ANNOUNCES EARNINGS FOR FOURTH FISCAL QUARTER
AND YEAR ENDED MARCH 31, 2005

LAFAYETTE, LOUISIANA (June 8, 2005) – Offshore Logistics, Inc. (NYSE: OLG) today reported net income for the 2005 fiscal year ended March 31, 2005 of $56.3 million, or $2.41 per diluted share, on revenues of $626.3 million, compared to net income of $53.1 million, or $2.29 per diluted share, on revenues of $567.6 million for the 2004 fiscal year ended March 31, 2004. Included in net income for the 2004 fiscal year is a non-cash curtailment gain of $21.7 million ($15.7 million after taxes) or $0.65 per diluted share, resulting from changes made to the Company’s pension plan for certain United Kingdom based employees. These changes, effective February 1, 2004, convert benefits for future employee service from a defined benefit arrangement to a defined contribution arrangement. Without this non-cash gain, earnings per diluted share would have been $1.64 for the 2004 fiscal year.

Net income for the quarter ended March 31, 2005 was $13.8 million, or $0.58 per diluted share on revenues of $156.1 million, compared to net income of $33.5 million or $1.47 per diluted share, on revenues of $153.0 million for the quarter ended March 31, 2004. Included in net income for the quarter ended March 31, 2004 is the non-cash gain of $21.7 million ($15.7 million after taxes) or $0.69 per diluted share discussed above, cost savings from the ongoing operation of the pension plan of $2.7 million ($2.0 million after taxes) or $0.09 per diluted share, retroactive rate settlements with certain North Sea customers of $3.4 million ($2.5 million after taxes) or $0.11 per diluted share, and insurance premium rebates of $2.5 million ($1.8 million after taxes) or $0.08 per diluted share. Without these four items, earnings per diluted share would have been $0.50 for the quarter ended March 31, 2004.

William E. Chiles, CEO and President of Offshore Logistics, Inc., said “International operating revenues were up significantly from the same quarter last year and at a similar level as the prior quarter. This reflects our continued progress in fiscal 2005 growing our presence in overseas drilling markets. International operating income was also slightly higher in the fourth quarter than a year ago; it was lower than the prior quarter due to increased operating expenses.

In our North Sea segment, operating revenues were down marginally from the same quarter a year ago and from the prior quarter. Our flight hours, however, showed a marked decrease from both periods due to a change in a lease arrangement in Norway. We no longer provide maintenance services for our aircraft operated through our unconsolidated affiliate, Norsk Helikopter AS, although we do continue to lease aircraft to them. Therefore, we no longer report Norsk Helikopter flight hours. Our North Sea operating income fell significantly compared with both the year ago and prior quarters due to one time maintenance costs in the fourth quarter.

Our North American flight hours were down from both the year ago period and the prior quarter, reflecting a weaker than expected recovery in Gulf of Mexico activity. However, operating revenue did not show a corresponding decline due to a rate increase that was phased-in throughout fiscal 2004. Operating income was down compared with the fourth quarter of fiscal 2004 but was relatively consistent with the prior quarter.

Overall, our earnings of $0.58 per diluted share compare favorably with $0.50 in the year ago quarter adjusted for the four items discussed previously, and $0.49 per diluted share in the third quarter of fiscal 2005. These results reflect our continuing commitment to hold down our costs while providing the high quality service our customers have come to expect from us. We remain focused on expanding our operations into overseas areas where drilling activity is rising, even as we also do our best to maximize profitability in both the North Sea and North America, which remain very important to our success.”

At March 31, 2005, the Company’s consolidated balance sheet reflected $514.1 million in shareholders’ investment, $146.4 million in cash and $262.1 million of indebtedness.

As previously disclosed in the Company’s Form 10-Q, the Company voluntarily advised the staff of the U.S. Securities and Exchange Commission that the Company’s Audit Committee had engaged outside counsel to undertake a review of certain payments made by affiliated entities in foreign countries. Based on the results to date, the Company does not believe its historical financial statements, or its fiscal 2005 results, will be materially impacted.

The Company does not anticipate that it will be able to file its Form 10-K on a timely basis. At this time, the Company cannot reasonably estimate how long the filing of its Form 10-K will be delayed as this is dependent in part on the ongoing Audit Committee review.

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.

The tabulated results for the periods ended March 31, 2005 and 2004, are as follows (amounts in thousands, except earnings per share):

	Three Months Ended March 31,		Year Ended March 31,
	2005	2004	2005	2004
Revenue	$ 156,089	$ 152,967	$ 626,349		$567,592
Net Income	$ 13,753	$ 33,546	$ 56,258		$53,104
BASIC:
Earnings per common share	$ 0.59	$ 1.48	$ 2.44		$2.36
Weighted average number of
common shares outstanding	23,304	22,600	23,041		22,545
DILUTED:
Earnings per common share	$ 0.58	$ 1.47	$ 2.41		$2.29
Weighted average number of
common shares outstanding and
assumed conversions	23,560	22,787	23,381		24,013

Selected operating data:

	Three Months Ended March 31,						Twelve Months Ended March 31,
	2005			2004			2005			2004
	(in thousands, except flight hours)
Flight hours (excluding unconsolidated affiliates):
Helicopter activities:
North American Operations		25,767			29,094			118,371			123,488
North Sea Operations		8,035			9,602			38,556			43,144
International Operations		20,058			22,470			89,205			88,278
Technical Services		--			577			1,421			1,882
Total		53,860			61,743			247,553			256,792
Operating revenue:
Helicopter activities:
North American Operations	$	39,323		$	40,475		$	163,869		$	160,400
North Sea Operations		47,351			48,871			193,476			180,705
International Operations		56,945			46,596			216,106			176,331
Technical Services		8,688			14,011			34,186			44,697
Less: Intercompany		(10,714	)		(10,559	)		(41,731	)		(42,699	)
Total		141,593			139,394			565,906			519,434
Production Management Services		15,717			13,513			58,981			49,815
Corporate		2,908			3,882			10,464			12,759
Less: Intercompany		(3,991	)		(5,177	)		(17,041	)		(18,359	)
Consolidated total	$	156,227		$	151,612		$	618,310		$	563,649
Operating expenses:
Helicopter activities:
North American Operations	$	34,264		$	33,281		$	139,999		$	132,577
North Sea Operations		43,547			38,168			164,502			161,740
International Operations		50,467			41,394			186,898			154,473
Technical Services		7,542			12,731			36,053			42,121
Less: Intercompany		(10,714	)		(10,559	)		(41,731	)		(42,699	)
Total		125,106			115,015			485,721			448,212
Production Management Services		14,796			12,941			55,074			47,302
Corporate		5,944			5,712			21,063			18,697
Less: Intercompany		(3,991	)		(5,177	)		(17,041	)		(18,359	)
Consolidated total	$	141,855		$	128,491		$	544,817		$	495,852
Operating income:
Helicopter activities:
North American Operations	$	5,059		$	7,194		$	23,870		$	27,823
North Sea Operations		3,804			10,703			28,974			18,965
International Operations		6,478			5,202			29,208			21,858
Technical Services		1,146			1,280			(1,867	)		2,576
Curtailment gain allocated to Helicopter Activities		--			20,365			--			20,365
Total		16,487			44,744			80,185			91,587
Production Management Services		921			572			3,907			2,513
Corporate		(3,036	)		(1,830	)		(10,599	)		(5,938	)
Curtailment gain allocated to Corporate		--			1,300			--			1,300
Gain (loss) on disposal of assets		(138	)		1,355			8,039			3,943
Consolidated total	$	14,234		$	46,141		$	81,532		$	93,405
Operating margin:
Helicopter activities:
North American Operations		12.9	%		17.8	%		14.6	%		17.3	%
North Sea Operations		8.0	%		21.9	%		15.0	%		10.5	%
International Operations		11.4	%		11.2	%		13.5	%		12.4	%
Technical Services		13.2	%		9.1	%		(5.5	)%		5.8	%
Total		11.6	%		32.1	%		14.2	%		17.6	%
Production Management Services		5.9	%		4.2	%		6.6	%		5.0	%
Consolidated total		9.1	%		30.4	%		13.2	%		16.6	%

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 as defined under the Private Securities Litigation Reform Act of 1995, as amended. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements contained in this press release include, without limitation, that the results of the Audit Committee’s internal review or its effect on previously reported financial results may differ from our expectations, that drilling activity fails to increase internationally, that we fail to identify overseas areas where drilling activity is rising, and that we fail to expand in such areas. 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 reports 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.

Investor Relations Contact:
William E. Chiles
Phone: (337) 233-1221
Fax: (337) 235-6678
bchiles@olog.com

OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
Consolidated Statements of Income

	Three Months Ended March 31,						Twelve Months Ended March 31,
	2005			2004			2005			2004
	(unaudited)						(unaudited)
	(in thousands, except per share amounts)
GROSS REVENUE
Operating revenue	$	156,227		$	151,612		$	618,310		$	563,649
Gain on disposal of assets		(138	)		1,355			8,039			3,943
		156,089			152,967			626,349			567,592
OPERATING EXPENSES
Direct cost		120,820			107,193			458,879			417,417
Depreciation and amortization		8,873			10,466			40,693			39,543
General and administrative		12,162			10,832			45,245			38,892
		141,855			128,491			544,817			495,852
Curtailment gain		--			21,665			--			21,665
OPERATING INCOME		14,234			46,141			81,532			93,405
Earnings from unconsolidated affiliates, net		3,910			4,159			9,600			11,039
Interest income		1,020			361			3,188			1,689
Interest expense		(3,695	)		(4,056	)		(15,665	)		(16,829	)
Loss on extinguishment of debt		--			--			--			(6,205	)
Other income (expense), net		912			(1,564	)		(1,126	)		(7,810	)
INCOME BEFORE PROVISION FOR INCOME
TAXES AND MINORITY INTEREST		16,381			45,041			77,529			75,289
Provision for income taxes		2,717			11,728			21,061			20,803
Minority interest		89			233			(210	)		(1,382	)
NET INCOME	$	13,753		$	33,546		$	56,258		$	53,104
Net income per common share:
Basic	$	0.59		$	1.48		$	2.44		$	2.36
Diluted	$	0.58		$	1.47		$	2.41		$	2.29

OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets

	March 31, 2005			March 31, 2004
	(unaudited)
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	146,440		$	85,679
Accounts receivable		133,839			122,421
Inventories		140,706			133,073
Prepaid expenses and other		11,459			10,874
Total current assets		432,444			352,047
Investments in unconsolidated affiliates		37,176			38,929
Property and equipment - at cost:
Land and buildings		32,543			26,594
Aircraft and equipment		827,031			797,783
		859,574			824,377
Less: Accumulated depreciation and amortization		(250,512	)		(238,721	)
		609,062			585,656
Goodwill		26,809			26,829
Other assets		44,085			42,717
	$	1,149,576		$	1,046,178

LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities:
Accounts payable	$	35,640		$	28,714
Accrued liabilities		79,572			65,257
Deferred taxes		21,615			1,802
Current maturities of long-term debt		6,413			4,417
Total current liabilities		143,240			100,190
Long-term debt, less current maturities		255,667			251,117
Other liabilities and deferred credits		164,728			147,326
Deferred taxes		67,302			92,042
Minority interest		4,514			9,385
Stockholders' Investment:
Common Stock, $.01 par value, authorized 35,000,000
shares; outstanding 23,314,708 in 2005 and 22,631,221
in 2004 (exclusive of 1,281,050 treasury shares)		233			226
Additional paid-in capital		156,981			141,384
Retained earnings		408,860			352,602
Accumulated other comprehensive income (loss)		(51,949	)		(48,094	)
		514,125			446,118
	$	1,149,576		$	1,046,178