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News Release

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Bristow Group Inc. Reports Fiscal 2006 Fourth Quarter and Year-End Financial Results

HOUSTON--(BUSINESS WIRE)--June 8, 2006--Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2006 fourth quarter and year ended March 31, 2006.

Highlights included the following:

For the year ended March 31, 2006:

  • Net income of $57.8 million was up 12.1 percent over fiscal year 2005; earnings per diluted share of $2.45 rose 10.9 percent over the same period;


  • Total revenue in fiscal year 2006 increased by 14.1 percent to $768.9 million;


  • The revenue increase was driven primarily by significant improvements in the North America business unit complemented by growth in other business units;


  • Operating income improved substantially in the North America and Other International business units, offset by declines in South and Central America due to previously reported decreases in flight activity in Mexico and Brazil;


  • General and administrative costs for fiscal 2006 included $13.1 million ($0.43 per diluted share after tax) of costs related to the SEC and DOJ investigations, versus $2.2 million for fiscal 2005, which we expect to continue but to a lesser extent in future periods; and


  • The effective tax rate for fiscal 2006 was 22.3 percent due to reversal of reserves for tax contingencies, which is expected to continue in the next year, but to a more limited extent.

For the quarter ended March 31, 2006:

  • Net income of $17.8 million was up 34.7 percent over the March quarter a year ago; earnings per diluted share of $0.75 rose 33.9 percent for the same three-month period;


  • Total revenue of $201.3 million increased by 18.1 percent over the fourth quarter of fiscal year 2005 from growth in all business units;


  • The earnings improvement was driven primarily by increases in the Europe and Southeast Asia business units, partially offset by declines in North America;


  • General and administrative costs for the March 2006 quarter included $1.4 million ($0.05 per diluted share after tax) of costs related to the SEC and DOJ investigations, which we expect to continue but to a lesser extent in future periods; and


  • The effective tax rate for the March 2006 quarter of 18.8 percent was below the rate for the full fiscal year 2006 due to changes in estimates and had the effect of increasing net income by $800,000 ($0.03 per diluted share).

William E. Chiles, president and chief executive officer of Bristow Group Inc., said, "In many ways, fiscal 2006 was a pivotal year for our Company. We made a number of significant organizational changes that improved our business culture and reinforced our uncompromising operating standards. In the process, we strengthened our management team, consolidated our business units, improved our reporting infrastructure and re-branded our worldwide operations under a single identity, vision, mission and set of core values. The strength of these financial results is an indication of these improvements. Given these positive changes, Bristow Group has entered fiscal year 2007 well positioned to capitalize upon the gains we have made over the past year and very strong market conditions."

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Friday, June 9, 2006, to review financial results for the three months and fiscal year ended March 31, 2006. The conference call can be accessed as follows:

Via Webcast:

  • Visit Bristow Group's investor relations Web page at http://www.bristowgroup.com


  • Click on the link for "FY2006 Fourth Quarter Conference Call"


  • Webcast replay available approximately one hour after the call's completion

Via Telephone within U.S.:

  • Toll free (888) 396-2356, passcode: 10560838


  • A telephone replay will be available through June 16, 2006 by dialing toll free (888) 286-8010, passcode: 64969461

Via Telephone outside the U.S.:

  • Dial (617) 847-8709, passcode: 10560838


  • A telephone replay will be available through June 16, 2006 by dialing (617) 801-6888, passcode: 64969461

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is a major provider of helicopter 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 U.S. 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 U.S. Gulf of Mexico. The Company's Common Stock trades on the New York Stock Exchange under the symbol BRS.

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. These forward-looking statements include expected costs related to the SEC and DOJ investigations and effective tax rate. 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, 2006. Bristow Group 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.

                  BRISTOW GROUP INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
               (In thousands, except per share amounts)
                              (Unaudited)


                               Three Months Ended  Twelve Months Ended
                                    March 31,           March 31,
                               ------------------- -------------------
                                   2006      2005      2006      2005
                               --------- --------- --------- ---------
Gross revenue:
   Operating revenue from non-
    affiliates                 $170,591  $139,038  $636,887  $545,233
   Operating revenue from
    affiliates                    9,604    13,729    51,832    63,689
   Reimbursable revenue from
    non-affiliates               19,770    16,846    75,861    61,969
   Reimbursable revenue from
    affiliates                    1,366       838     4,360     2,755
                               --------- --------- --------- ---------
                                201,331   170,451   768,940   673,646
                               --------- --------- --------- ---------
Operating expenses:
   Direct costs                 137,336   117,970   512,518   454,836
   Reimbursable expense          20,411    17,420    78,525    63,303
   Depreciation and
    amortization                 10,096     8,873    42,256    40,693
   General and administrative    15,943    12,161    61,948    45,245
   Loss (gain) on disposal of
    assets                       (1,378)      138      (102)   (8,039)
                               --------- --------- --------- ---------
                                182,408   156,562   695,145   596,038
                               --------- --------- --------- ---------
      Operating income           18,923    13,889    73,795    77,608

Earnings from unconsolidated
 affiliates, net of losses        4,988     3,910     6,758     9,600
Interest income                   1,280     1,020     4,159     3,188
Interest expense                 (3,401)   (3,695)  (14,689)  (15,665)
Other income (expense), net         304       912     4,612    (1,126)
                               --------- --------- --------- ---------
      Income before provision
       for income taxes and
       minority interest         22,094    16,036    74,635    73,605
Provision for income taxes        4,154     2,911    16,607    21,835
Minority interest                  (135)       89      (219)     (210)
                               --------- --------- --------- ---------
   Net income                   $17,805   $13,214   $57,809   $51,560
                               ========= ========= ========= =========
Net income per common share:
   Basic                          $0.76     $0.57     $2.48     $2.24
                               ========= ========= ========= =========
   Diluted                        $0.75     $0.56     $2.45     $2.21
                               ========= ========= ========= =========
Weighted average common shares
 outstanding:
   Basic                         23,361    23,304    23,341    23,041
                               ========= ========= ========= =========
   Diluted                       23,594    23,560    23,604    23,381
                               ========= ========= ========= =========


                 BRISTOW GROUP INC. AND SUBSIDIARIES
                       SELECTED OPERATING DATA
                  (In thousands, except percentages)
                             (Unaudited)


                               Three Months Ended  Twelve Months Ended
                                    March 31,           March 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Flight hours (excludes
 unconsolidated affiliates):
  Helicopter Services:
    North America                32,966    25,767   142,409   118,371
    South and Central America     9,271     9,044    38,469    42,351
    Europe                        9,325     8,035    38,648    35,542
    West Africa                   8,349     7,147    34,185    31,918
    Southeast Asia                3,275     2,697    12,119    11,547
    Other International           1,691     1,170     6,711     3,389
                               --------- --------- --------- ---------
      Consolidated total         64,877    53,860   272,541   243,118
                               ========= ========= ========= =========

                               Three Months Ended  Twelve Months Ended
                                    March 31,           March 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Gross revenue:
  Helicopter Services:
    North America               $58,014   $44,709  $228,584  $179,019
    South and Central America    12,743    12,208    44,554    53,699
    Europe                       61,039    55,247   242,941   223,698
    West Africa                  27,536    25,645   107,411    94,432
    Southeast Asia               16,882    13,907    61,168    53,024
    Other International          10,582     6,990    35,339    21,344
    EH Centralized Operations    15,329    12,802    54,933    56,169
    Intrasegment eliminations   (16,950)  (16,076)  (65,876)  (60,567)
                               --------- --------- --------- ---------
  Total Helicopter Services     185,175   155,432   709,054   620,818
  Production Management
   Services                      18,007    15,718    68,170    58,982
  Corporate                         653       981       693     1,684
  Intersegment eliminations      (2,504)   (1,680)   (8,977)   (7,838)
                               --------- --------- --------- ---------
      Consolidated total       $201,331  $170,451  $768,940  $673,646
                               ========= ========= ========= =========

Operating income:
  Helicopter Services:
    North America                $4,704    $6,620   $37,863   $25,977
    South and Central America     3,036     2,551     5,042    12,083
    Europe                       10,078     7,685    30,630    29,374
    West Africa                    (277)     (356)    5,632     5,891
    Southeast Asia                2,014       144     4,800     4,002
    Other International           3,173     3,046     7,549     2,879
    EH Centralized Operations    (2,167)   (4,196)      437    (4,441)
                               --------- --------- --------- ---------
  Total Helicopter Services      20,561    15,494    91,953    75,765
  Production Management
   Services                       1,652       922     5,327     3,907
  Gain (loss) on disposal of
   assets                         1,378      (138)      102     8,039
  Corporate                      (4,668)   (2,389)  (23,587)  (10,103)
                               --------- --------- --------- ---------
      Consolidated total        $18,923   $13,889   $73,795   $77,608
                               ========= ========= ========= =========

Operating margin:
  Helicopter Services:
    North America                   8.1%     14.8%     16.6%     14.5%
    South and Central America      23.8%     20.9%     11.3%     22.5%
    Europe                         16.5%     13.9%     12.6%     13.1%
    West Africa                    -1.0%     -1.4%      5.2%      6.2%
    Southeast Asia                 11.9%      1.0%      7.8%      7.5%
    Other International            30.0%     43.6%     21.4%     13.5%
    EH Centralized Operations     -14.1%    -32.8%      0.8%     -7.9%
  Total Helicopter Services        11.1%     10.0%     13.0%     12.2%
  Production Management
   Services                         9.2%      5.9%      7.8%      6.6%
              Consolidated
               total                9.4%      8.1%      9.6%     11.5%


                BRISTOW GROUP INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED BALANCE SHEETS
                           (in thousands)

                                                March 31,   March 31,
                                                  2006        2005
                                               ----------- -----------
                   ASSETS
Current assets:
 Cash and cash equivalents                       $122,482    $146,440
 Accounts receivable from non-affiliates,
  net of allowance for doubtful accounts of
  $4.6 million and $6.9 million,
  respectively                                    144,521     118,260
 Accounts receivable from affiliates, net
  of allowance for doubtful accounts of
  $4.6 million and $2.4 million,
  respectively                                     15,884      15,579
 Inventories                                      147,860     140,706
 Prepaid expenses and other                        16,519      11,459
                                               ----------- -----------
    Total current assets                          447,266     432,444
Investments in unconsolidated affiliates           39,912      37,176
Property and equipment -- at cost:
 Land and buildings                                40,672      32,543
 Aircraft and equipment                           838,314     827,031
                                               ----------- -----------
                                                  878,986     859,574
Less: accumulated depreciation and
 amortization                                    (263,072)   (250,512)
                                               ----------- -----------
                                                  615,914     609,062
Goodwill                                           26,837      26,809
Prepaid pension costs                              37,207      36,543
Other assets                                        9,277       7,542
                                               ----------- -----------
                                               $1,176,413  $1,149,576
                                               =========== ===========
   LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
 Accounts payable                                 $49,714     $35,640
 Accrued wages, benefits and related taxes         45,958      46,548
 Income taxes payable                               6,537      19,486
 Other accrued taxes                                6,471       6,269
 Deferred revenues                                  9,994      12,411
 Other accrued liabilities                         22,596      28,221
 Deferred taxes                                     5,025       6,709
 Short-term borrowings and current
  maturities of long-term debt                     17,634       6,413
                                               ----------- -----------
    Total current liabilities                     163,929     161,697
Long-term debt, less current maturities           247,662     255,667
Accrued pension liabilities                       136,521     157,999
Other liabilities and deferred credits             18,016      12,413
Deferred taxes                                     68,281      64,293
Minority interest                                   4,307       4,514
Commitments and contingencies
Stockholders' investment:
    Common Stock, $0.01 par value, authorized
     35,000,000 shares; outstanding 23,385,473
     shares in 2006 and 23,314,708 shares in
     2005 (exclusive of 1,281,050 treasury
     shares)                                          234         233
   Additional paid-in capital                     158,762     157,100
   Retained earnings                              447,524     389,715
   Accumulated other comprehensive loss           (68,823)    (54,055)
                                               ----------- -----------
                                                  537,697     492,993
                                               ----------- -----------
                                               $1,176,413  $1,149,576
                                               =========== ===========

CONTACT: Bristow Group Inc.
Joe Baj, 713-267-7605

SOURCE: Bristow Group Inc.