U.S. Helicopter Announces $2.5 Million Strategic Equity Investment

NEW YORK, April 3, 2008 /PRNewswire-FirstCall/ -- U.S. Helicopter Corporation (BULLETIN BOARD: USHP) (the "Company") announced today the completion of a strategic equity investment with a group of the Company's existing shareholders (the "Investors") resulting in the receipt of $2.5 million in gross offering proceeds.

The Company received gross proceeds of $1.25 million from each of its two strategic investors. In connection with the financing, the Company issued to one investor a secured convertible debenture in the principal amount of $1.25 million and a warrant to purchase up to 2,783,333 shares of the Company's common stock, and issued to the second investor two warrants to purchase up to an aggregate of 6,950,000 shares of the Company's common stock. The $1.25 million convertible debenture is convertible at the investor's option at a price equal to the lower of $0.30 per share or 80% of the lowest closing bid price of the Company's common stock during the 15 days prior to the conversion date, subject to adjustment and as determined in accordance with the terms of the debenture. In addition, the $1.25 million debenture provides for an annual interest rate of 18% and a maturity date on the earlier of September 30, 2008 or the closing of the Company's next equity financing resulting in not less than $5.0 million in gross proceeds. The Company is obligated to use approximately $613,000 of the proceeds from the $1.25 million convertible debenture to pay principal and accrued interest due on the debenture issued by the Company to the same investor on March 14, 2008. All warrants have an exercise price of $0.01 per share and an exercise term of five years from the date of issuance.

"We are grateful to our strategic investor partners for this investment, which represents yet another tremendous vote of confidence in U.S. Helicopter by our investor base," said Jerry Murphy, CEO and President of the Company. Murphy continued, "The funding will allow us to continue implementing our business plan to achieve our goals of expanding our operations in the New York-area market and beyond with our Global Airline Partners Continental and Delta Airlines and to add a fifth aircraft to our fleet. In addition, the new $2.5 million investment will help position the Company to complete a larger institutional raise which was one of the pre-conditions to an institutional investment. The Company also continues to focus its efforts with new airline partners that have long-haul flights into and out of the New York Metropolitan Area Airports who can utilize the Company's shuttle service to enhance their product offering and attract greater market share."

About U.S. Helicopter

U.S. Helicopter (BULLETIN BOARD: USHP) is the first scheduled airline helicopter service between Manhattan, JFK and Newark Airports in more than two decades. Presently, U.S. Helicopter operates 290 weekly flights to/from the Downtown Manhattan Heliport, Atlantic Metroport at East 34th Street, JFK International Airport and Newark Liberty International Airport, as well as service to/from Bridgeport Sikorsky Memorial Airport serving Fairfield and New Haven counties.

Founded in 2003, U.S. Helicopter provides scheduled, reliable, fast and affordable helicopter transportation designed to meet the needs of time-sensitive business travelers. All flights utilize state-of-the-art Sikorsky S-76 helicopters configured for eight passengers and staffed with two pilots. U.S. Helicopter Scheduled Airline Service is designed for business travelers ... "because you're too important to wait." For more information please visit our website at http://www.flyush.com/.

Safe Harbor for Forward-Looking Statements:

The foregoing contains "forward-looking statements", which are based on management's beliefs, as well as on a number of assumptions concerning future events and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside U.S. Helicopter's control that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see US Helicopter's filings with the Securities and Exchange Commission. U.S. Helicopter disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

First Call Analyst:
FCMN Contact:

Source: U.S. Helicopter Corporation

CONTACT: Tom Gallagher, Corporate Secretary of U.S. Helicopter
Corporation, +1-609-452-6000

Web site: http://www.flyush.com/

2008-04-03 16:18:17 0328006 PRNEWSWIRE