November 1, 2005

TORONTO – Nov 1, 2005 - PB-Sales announced today that it has agreed to acquire the assets of the former Oceanic Airlines, in a transaction  valued at approximately $750 million.

Oceanic Airlines based in Los Angeles, CA, was founded in 1980 and ceased operations in January 2005. Oceanic experienced financial difficulties after the September 11, 2001 terrorist attacks along with most other commercial airlines, and reduced their fleet in 2002 from 23 to 8 aircraft in an attempt to maintain profitability.

Oceanic lost several class action lawsuits in relation to a terrorist attack on Flight 343 from Athens to Dulles in 1996, as well as an incident involving nerve gas in 2000 on Flight 762, from Sydney to Los Angeles. Although Oceanic implemented security measures to reduce the risk of terrorist attacks, the class action suit for the loss of Flight 815 in September 2004 for over $4B USD plunged Oceanic into Chapter 13 bankruptcy from which it could not recover.

Oceanic Flight 815 went missing under mysterious circumstances on a flight from Sydney to Los Angeles. No trace was ever found of Flight 815 despite intensive search and rescue operations, and the investigation concluded that the Boeing 777 aircraft with over 300 passengers broke apart on impact with the Pacific and sank without a trace.
Oceanic Airlines ceased operations on January 24th 2005 . President and founder Michael Orteig expressed regret that Oceanic had to cease operations after 25 years.

The offer to purchase the remaining assets of Oceanic Airlines by PB-Sales is considered to be a risky proposition in an industry that has faced huge financial and safety issues over the past 4 years, however PB-Sales is optimistic that Oceanic can be a viable operation focusing on the lucrative South-Pacific routes.

FAA review and approval is required prior to Oceanic being able to start flying, however PB-Sales is confident that the approval will be forthcoming and that Oceanic Airlines may be flying again as early as December 2005.
“We are excited about Oceanic Airlines and its prospects and are eager to provide a superior experience in terms of comfort and safety under the well respected Oceanic name.” said Vincent Madison, Director of Corporate Communications for PB-Sales. “The company has a long history of service in the South Pacific and attractive growth opportunities.”

The acquisition is subject to customary conditions, including receipt of required regulatory approvals, and is expected to close before the end of year or in early 2006.