350403--3/11/2008--PHI

related topics

{gas, price, oil}

{cost, contract, operation}

{stock, price, share}

{operation, international, foreign}

{regulation, government, change}

{debt, indebtedness, cash}

{competitive, industry, competition}

{product, liability, claim}

{stock, price, operating}

{financial, litigation, operation}

{cost, regulation, environmental}

{cost, operation, labor}

{provision, law, control}

{personnel, key, retain}

{operation, natural, condition}

{system, service, information}

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RISKS INHERENT IN OUR BUSINESS Our operations are affected by adverse weather conditions and seasonal factors. We may not be able to obtain acceptable customer contracts covering some of our new helicopters, and there will be a delay between the time that a helicopter is delivered to us and the time that it can begin generating revenues. Our contracts generally can be terminated or downsized by our customers without penalty. Increased governmental regulations could increase our costs or reduce our ability to operate successfully. The helicopter services business is highly competitive. The failure to maintain our safety record would seriously harm our ability to attract new customers and maintain our existing customers. Helicopter operations involve risks that may not be covered by our insurance or may increase the cost of our insurance. Our air medical operations expose us to numerous special risks, including collection risks, high start-up costs and potential medical malpractice claims. Our international operations are subject to political, economic and regulatory uncertainty. Our failure to attract and retain qualified personnel could adversely affect us. RISKS SPECIFIC TO OUR COMPANY We are highly dependent on the offshore oil and gas industry. Our pilot workforce is represented by the Office and Professional Employees International Union, with which the Company is engaged in strike-related litigation. We depend on a small number of large oil and gas industry customers for a significant portion of our revenues, and our credit exposure within this industry is significant. Our Chairman of the Board and Chief Executive Officer is also our principal stockholder and has voting control of the Company. Our substantial indebtedness could adversely affect our financial condition and impair our ability to operate our business. The United States Department of Justice ( DOJ ) investigation could result in criminal proceedings and the imposition of fines and penalties. Our stock has a low trading volume. We do not pay dividends. Provisions in our articles of incorporation and by-laws and Louisiana law make it more difficult to effect a change in control of us, which could discourage a takeover of our company and adversely affect the price of our common stock.

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350403--3/11/2008--PHI_INC