Ornge purchases aviation assets from CHL for $30 million; enters into $90 million service agreement for helicopter fleet

On March 31, 2009, Ornge and Canadian Helicopters Income Fund (TSX: CHL.UN) (the "Fund") announced that Ornge had purchased from Canadian Helicopters Limited ("CHL"), a subsidiary of the Fund, the current fleet of eleven medically equipped Sikorsky S-76 helicopters, and aviation assets including four hangars for an aggregate purchase price of $30 million.

CHL will continue to provide services in support of Ornge's transport medicine operation for a period of three years starting April 1, 2009 (and a potential two year extension at Ornge's option). Under the new services agreement, CHL will continue to provide flight operations, maintenance, airworthiness and related support for Ornge's fleet of helicopters. Total revenue to the Fund is expected to be approximately $90 million for the initial three-year period.

In late 2010, the 11 Sikorsky S-76 aircraft are scheduled for replacement by Ornge over an approximate two-year period coinciding with the delivery of its 10 new state of the art AgustaWestland helicopters. The purchase of the CHL hangars will enable Ornge to secure the provision of Transport Medicine for the citizens of Ontario.

Ornge operates from a number of bases across the province of Ontario and performs approximately 18,000 admissions annually. It coordinates all aspects of Ontario's aero medical transport system, the new critical care land transport program, and the authorization of air and land ambulance transfers between hospitals. Ornge is dedicated to the provision of high quality patient care through innovative transport medicine.

Ornge was represented in-house by Catherine Rosebrugh, who was assisted by Fasken Martineau with a team that included Cynthia Heinz, Alfred Apps, Lynne Golding, Brent Lewis, Craig Carter, Corina Weigl, Paul Casuccio, Sean Morley, Michael Gleeson, Dugan Edmison and student-at-law Sarah Vokey.