PHI, Inc. (“PHI”) (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the year ended December 31, 2010.

Oil and Gas segment revenues for 2010 were $345.4 million, compared to $316.2 million for 2009, an increase of $29.2 million or 9%. Segment operating profit was $55.3 million for 2010, compared to $51.3 million for 2009.

Oil and Gas revenues increased primarily due to increased medium and heavy aircraft flight hours and revenue due to increased deepwater activity in the Gulf of Mexico. Approximately 50% of the increase in Oil and Gas segment revenues was a result of increased activity related to the Deepwater Horizon incident. However, there was also a decrease related to some deepwater drilling rigs demobilizing and reduced crews on others as a result of the moratorium. The increase in operating profit was due to the increase in flight activity for the heavy and medium aircraft fleet. Flight hours in the Oil and Gas segment were 114,122 for the year ended December 31, 2010, compared to 111,527 flight hours for the year ended December 31, 2009.

Air Medical segment revenues were $160.5 million for 2010, compared to $160.1 million for 2009, an increase of $0.4 million. Segment operating profit was $10.2 million for 2010, compared to $6.0 million for 2009.

The increase in revenues for the Air Medical segment was primarily related to increased hospital-based contract revenues, partially offset by decreased revenues in the independent provider programs due to decreased patient transports. The decrease in patient transports was substantially due to the closure of certain bases. Decreased direct expenses and decreased selling, general and administrative expenses account for the improvement in operating profit. Flight hours in the Air Medical segment were 33,222 for the year ended December 31, 2010, compared to 33,483 flight hours for the year ended December 31, 2009. Patient transports were 18,480 for 2010, compared to 19,798 for 2009.

Technical Services revenues were $11.0 million for the year ended December 31, 2010, compared to segment revenues of $10.9 million for the year ended December 31, 2009. Segment operating profit was $2.7 million for 2010, compared to $3.6 million for 2009.

Consolidated operating revenues were $517.0 million and earnings before taxes were $14.6 million for the year ended December 31, 2010, compared to operating revenues of $487.2 million and earnings before income taxes of $21.8 million for the year ended December 31, 2009. Operating revenues increased $29.8 million year to year. The decrease in earnings before tax was primarily due to the redemption of our 7.125% Senior Notes, resulting in a $9.5 million pre-tax charge.

Net earnings for 2010 were $7.1 million, $0.46 per diluted share, compared to net earnings of $13.0 million, $0.85 per diluted share, for 2009. The decrease was primarily due to the early redemption of our 7.125% Senior Notes in the third quarter resulting in a $9.5 million pre-tax charge. Also included in 2010 earnings is a $4.3 million pre-tax credit related to termination of the warranty program for certain aircraft. We also recorded a $4.9 million pre-tax credit for termination of an aircraft warranty program in 2009. Earnings in 2009 also include a $2.1 million pre-tax insurance provision. Additionally in 2010, we recorded a valuation charge of $1.5 million in tax expense related to foreign tax credits which will expire before we are able to utilize them. These items are more fully discussed in our Form 10-K.

Certain statements in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “anticipate,” “estimate,” “project,” “intend,” “expect,” “should,” “believe,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, performance (financial or operating) or achievements to differ materially from the results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. These factors include adverse weather, competition, the level of activity in the oil and gas industry (particularly in the Gulf of Mexico) and our ability to continue to grow patient transport volumes. These and other factors are more fully discussed in the Company’s SEC filings under “Risk Factors.”

PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas industry, air medical industry and also provides third-party maintenance services to select customers. PHI Voting Common Stock and Non-Voting Common Stock are traded on The Nasdaq Global Market (symbols PHII and PHIIK)

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