Canadian Helicopters announces renewal of United States Transportation Command Contracts

Canadian Helicopters Income Fund announces Notices of Intent to Award Contracts from the United States Transportation Command (“USTRANSCOM”) in respect of two of Canadian Helicopters’ former contracts involving support of the North Warning System.

Canadian Helicopters has been selected as the “successful offeror" with regard to the Rotary Wing Bulk Fuel and Supplemental Rotary Wing contracts, subject to customary U.S. government approval of operational funding for each fiscal year and conclusion of definitive contracts.

USTRANSCOM’s decision was taken following a competitive bidding process pertaining to the services provided under each of the two contracts, in which Canadian Helicopters tendered proposals and actively participated. A total of four aircraft from the existing fleet of Canadian Helicopters will be used for the operations.

The Rotary Wing Bulk Fuel contract for the re-supply of fuel to the North Warning System radar sites represents revenues of approximately $18.1 million over five years, while the Supplemental Rotary Wing contract represents revenues of approximately $7.8 million to Canadian Helicopters over the same period, assuming all option periods are exercised and expected hours are flown.

The contracts are seasonal with various commencement dates in the spring and summer of 2010. The contracts are for a one-year base period with four one-year extensions at the option of USTRANSCOM, for a total of five years.

They are denominated in Canadian dollars and comprised of hourly revenue components. A minimum number of hours per year are specified. The prime contractor is the Canadian Commercial Corporation, Canada's international contracting agency, which focuses on government-to-government contracting and procurement.

“These agreements represent a continuation of our long term relationship with the U.S. military,” said Don Wall, Senior Executive Vice-President of Canadian Helicopters Income Fund. “We are pleased with these notices to renew our supply contracts, which signify the ongoing confidence that USTRANSCOM has placed in the quality of our services and operations.”