CHC Helicopter Corporation Announces Results for Fiscal Year 2000 First Quarter Ended July 31, 1999.

ST. JOHN'S, Newfoundland--(BUSINESS WIRE)--Sept. 29, 1999--

CHC Helicopter Corporation (CHC) (TSE: FLY.A and FLY.B; NASDAQ: FLYAF) today announced its results for the fiscal 2000 first quarter ended July 31, 1999:

                             ($ Millions Except Per Share Data)
                                            3 months ended
                                                July 31

                                             1999      1998
                                            ----------------
Revenue                                      60.5      101.1
Net earnings from operations                  5.4        6.0
Net earnings                                  4.9       54.1
EBITDA (excluding gains)                     15.0       21.1

Per Share Information:
    Average number of shares (millions)      15.4       15.7
    Net earnings from operations             0.35       0.38
    Net earnings                             0.32       3.45
    EBITDA (excluding gains)                 0.97       1.34
    Book value                              10.10       9.57

CHC's results for the first quarter of fiscal 2000 are below those for the first quarter last year, which is in line with the Company's expectations.

Net earnings for the first quarter of fiscal 2000 were $4.9 million ($0.32 per share) as compared to $54.1 million ($3.45 per share) for the same period last year. Last year's results include the gain on sale of 80% of the Company's repair and overhaul businesses and a loss on debt settlement. Excluding the impact of these two items, net earnings for the first quarter last year were $6.0 million ($0.38 per share). Last year's results also include the operations of the Company's repair and overhaul businesses for two months. These operations generated revenues of $27.6 million and EBITDA (excluding gains) of $3.4 million last year. Last year's earnings also include $1.2 million in after tax gains on the disposal of assets compared to $0.1 million this year. EBITDA (excluding gains) was $15.0 million ($0.97 per share), down from the $21.1 million ($1.34 per share) generated last year.

Helicopter operations generated revenue of $60.5 million in the first quarter of fiscal 2000 compared to $73.5 million generated in the first quarter last year. EBITDA (excluding gains) for helicopter operations for the first quarter of fiscal 2000 was $15.0 million (24.8% of revenue) compared to $20.0 million (27.2% of revenue) in the first quarter last year. The reduction in EBITDA for helicopter operations is due in equal part to reductions domestically as well as in the UK. In Canada, cool, wet weather conditions in the west compared to the unusually dry conditions experienced last year led to significantly reduced flying activity. In the UK, the reduction is due primarily to the inclusion in last year's results of the Shell contract which ended June 30, 1998. Oil prices have improved significantly from the lows experienced late last year and early this year. This improvement still has not been reflected in the levels of exploration and this has had an impact on results. The second quarter will reflect the operations of the new Maersk contract in Denmark, increased EMS activity in Ontario and the start of two new short-term International contracts.

On August 9, 1999 all conditions related to the Company's offer to acquire the shares of Helicopter Services Group ASA ("HSG") were met or waived and settlement took place on August 11, 1999. This brought the Company's ownership interest in HSG to 91.3% and the process to acquire the remaining shares through a mandatory offer and compulsory acquisition procedure under Norwegian law has begun and is expected to close in early October, 1999.

Subsequent to the HSG acquisition, the Company sold nine aircraft and completed a sale leaseback transaction for two others which together yielded proceeds of approximately $81.8 million. Six of these aircraft were surplus to the combined CHC/HSG group and three were performing a contract that had been generating below average margins.

Craig L. Dobbin, O.C., Chairman and Chief Executive Officer stated, "Our energies are focused on long-term, year round operations in the oil and gas and emergency medical services markets. Our increased global presence means we are no longer limited by the cyclical nature of smaller operations. That means we can fly our helicopters year round."

CHC Helicopter Corporation is a worldwide provider of helicopter transportation services. CHC operates a fleet of 348 aircraft around the world and employs over 2800 people.