Offshore Logistics, Inc.
2000 W. Sam Houston Parkway South
Suite 1700
Houston, TX 77042
Tel: 713-267-7600
Fax: 713-267-7620

News Release

OFFSHORE LOGISTICS SUMMARIZES FINANCIAL RESULTS FOR THE FIRST HALF OF FISCAL YEAR 2006

HOUSTON (Jan. 25, 2006) – Offshore Logistics, Inc. (NYSE: OLG) today summarized its financial results for the first half of fiscal 2006, which were reported in its Form 10-Q filing of Jan. 12, 2006. For the six months ended Sept. 30, 2005, net income was $26.6 million or $1.13 per diluted share on 23.6 million shares, compared to restated net income of $28.2 million or $1.22 per diluted share on 23.1 million shares for the six months ended Sept. 30, 2004. Revenues for the first half of fiscal 2006 totaled $375.3 million versus a restated $331.0 million for the same six-month period of fiscal 2005.

Financial results for the six-month period ended Sept. 30, 2004 were affected by restatements that reflect adjustments to accrue for liabilities and expenses identified in connection with the Company’s internal review, to properly report customer reimbursables as revenues rather than offsetting such amounts against the related expenses, and to properly record expenses for severance benefits and payroll taxes associated with certain foreign subsidiaries. These matters are more fully discussed in the Sept. 30, 2005 Form 10-Q.

William E. Chiles, president and chief executive officer of Offshore Logistics, Inc., said, “During the first half of fiscal 2006, our Company delivered solid performance as we addressed and made substantial progress on a number of difficult legacy issues. We are optimistic, however, that the internal measures we have implemented are allowing us to once again dedicate all of our attention and resources to growing this business and delivering long-term value for our shareholders.”

At Sept. 30, 2005, the Company’s consolidated balance sheet reflected $503.1 million in stockholders’ investment, $94.3 million in cash and cash equivalents and $265.3 million of indebtedness.

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Conference Call Scheduled

Management will conduct a conference call starting at 5:00 p.m. EST (4:00 p.m. CST) on Jan. 25, 2006, to review financial results for the six months ended Sept. 30, 2005. The conference call can be accessed as follows:

Via Webcast:

o Visit Offshore Logistics’ investor relations Web page at http://www.olog.com/page3.php
o Click on the link for “FY2006 Six-Months Conference Call”
o Webcast replay available approximately one hour after the call’s completion, a Webcast replay will be available and will remain available for approximately 30 days

Via Telephone within U.S.:

oToll free (800) 299-9630, passcode: 60119486
oA telephone replay will be available through Jan. 31, 2006 by dialing toll free (888) 286-8010, passcode: 70783999

Via Telephone outside the U.S.:

oDial (617) 786-2904, passcode: 60119486
o A telephone replay will be available through Feb. 8, 2006 by dialing (617) 801-6888, passcode: 70783999

About Offshore Logistics

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. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the Gulf of Mexico. The Company’s Common Stock is traded on the New York Stock Exchange under the symbol OLG.

Forward-Looking Statements Disclosure

Statements contained in this news 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 in such forward-looking statements. 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 annual report on From 10-K for the year ended March 31, 2005 and the Company’s reports on Form 10-Q for the quarters ended June 30, 2005 and September 30, 2005. Offshore Logistics, Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Joe Baj
(713) 267-7605

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(financial tables follow)

OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except percentages)
(Unaudited)

	Three Months Ended September 30,						Six Months Ended September 30,
	2005			2004			2005			2004
				(Restated)						(Restated)
Flight hours (excluding unconsolidated affiliates):
Helicopter Services:
North America		37,454			32,606			73,232			64,424
South and Central America		10,113			11,868			19,629			23,747
Europe		10,263			11,685			19,994			22,442
West Africa		8,904			8,606			17,539			16,403
Southeast Asia		3,005			2,822			5,727			5,509
Other International		1,410			570			2,722			1,156
Total		71,149			68,157			138,843			133,681
Operating revenue:
Helicopter Services:
North America	$	61,253		$	46,287		$	113,701		$	91,478
South and Central America		10,315			14,030			20,221			28,090
Europe		67,764			66,138			132,057			125,720
West Africa		28,157			23,581			55,775			45,594
Southeast Africa		14,600			12,487			28,408			24,543
Other International		6,584			4,428			12,598			7,002
Intrasegment eliminations		(9,848	)		(7,928	)		(18,606	)		(16,076	)
Total Helicopter Services		178,825			159,023			344,154			306,351
Production Management Services		16,942			14,630			33,911			28,321
Corporate		2,792			1,349			5,591			5,144
Intersegment eliminations		(4,154	)		(4,375	)		(8,314	)		(8,788	)
Consolidated total	$	194,405		$	170,627		$	375,342		$	331,028
Operating income:
Helicopter Services:
North America	$	14,592		$	7,430		$	24,375		$	15,303
South and Central America		226			3,429			661			6,671
Europe		9,999			9,592			15,498			12,821
West Africa		2,076			2,684			4,445			5,041
Southeast Asia		377			963			1,084			2,066
Other International		889			(90	)		1,796			(676	)
Total Helicopter Services		28,159			24,008			47,859			41,226
Production Management Services		1,238			1,002			2,558			1,767
Gain (loss) on disposal of assets		(1,494	)		3,558			(902	)		6,156
Corporate		(5,808	)		(3,416	)		(12,375	)		(4,646	)
Consolidated total	$	22,095		$	25,152		$	37,140		$	44,503
Operating margin:
Helicopter Services:
North America		23.8	%		16.1	%		21.4	%		16.7	%
South and Central America		2.2	%		24.4	%		3.3	%		23.7	%
Europe		14.8	%		14.5	%		11.7	%		10.2	%
West Africa		7.4	%		11.4	%		8.0	%		11.1	%
Southeast Asia		2.6	%		7.7	%		3.8	%		8.4	%
Other International		13.5	%		(2.0	)%		14.3	%		(9.7	)%
Total Helicopter Services		15.7	%		15.1	%		13.9	%		13.5	%
Production Management Services		7.3	%		6.8	%		7.5	%		6.2	%
Consolidated total		11.4	%		14.7	%		9.9	%		13.4	%

OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended September 30,						Six Months Ended September 30,
	2005			2004			2005			2004
				(Restated)						(Restated)
Gross revenue:
Operating revenue	$	194,405		$	170,627		$	375,342		$	331,028
Operating expense:
Direct cost		143,912			127,765			285,126			249,642
Depreciation and amortization		11,200			10,580			21,507			21,030
General and administrative		15,704			10,688			30,667			22,009
Loss (gain) on disposal of assets		1,494			(3,558	)		902			(6,156	)
		172,310			145,475			338,202			286,525
Operating income		22,095			25,152			37,140			44,503
Earnings from unconsolidated affiliates, net of losses		373			2,401			419			3,921
Interest income		949			747			1,981			1,183
Interest expense		(3,677	)		(3,985	)		(7,385	)		(7,914	)
Other income, net		(769	)		473			2,013			561
Income before provision for income taxes
and minority interest		18,971			24,788			34,168			42,254
Provision for income taxes		4,293			7,988			7,469			13,778
Minority interest		(44	)		(149	)		(94	)		(238	)
Net income	$	14,634		$	16,651		$	26,605		$	28,238
Net income per common share:
Basic	$	0.63		$	0.73		$	1.14		$	1.24
Diluted	$	0.62		$	0.71		$	1.13		$	1.22
Weighted average shares outstanding:
Basic		23,342			22,933			23,331			22,794
Diluted		23,618			23,325			23,603			23,126

OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)

	September 30, 2005			March 31, 2005
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	94,275		$	146,440
Accounts receivable		173,893			133,839
Inventories		142,040			140,706
Prepaid expenses and other		10,478			11,459
Total current assets		420,686			432,444
Investments in unconsolidated affiliates		39,462			32,543
Property and equipment - at cost:
Land and buildings		33,211			32,543
Aircraft and equipment		852,144			827,031
		885,355			859,574
Less: accumulated depreciation and amortization		(252,642	)		(250,512	)
		632,713			609,062
Goodwill		26,819			26,809
Other assets		44,401			44,085
	$	1,164,081		$	1,149,576

LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	38,211		$	35,640
Accrued liabilities		112,243			101,904
Deferred taxes		15,047			17,740
Current maturities of long-term debt		6,497			6,413
Total current liabilities		171,998			161,697
Long-term debt, less current maturities		258,790			255,667
Other liabilities and deferred credits		154,720			164,728
Deferred taxes		71,203			69,977
Minority interest		4,245			4,514
Commitments and contingencies (Note E)
Stockholders' investment:
Common Stock, $.01 par value, authorized 35,000,000 shares;
Outstanding 23,341,508 and 23,314,708 at September 30 and
March 31, respectively (exclusive of 1,281,050 treasury shares)		233			233
Additional paid-in capital		157,744			157,100
Retained earnings		416,320			389,715
Accumulated other comprehensive loss		(71,172	)		(54,055	)
		503,125			492,993
	$	1,164,081		$	1,149,576