AirNet Systems, Inc. Announces
Second Quarter Results

CONTACT:

AirNet Systems, Inc. Gary Qualmann (614) 532-4072

InvestQuest, Inc. Bob Lentz (614) 876-1900

COLUMBUS, Ohio -- August 12, 2004 -- AirNet Systems, Inc. (NYSE: ANS) today reported total net revenues of $42.1 million for the three months ended June 30, 2004 compared to $36.6 million the prior year. This 15.2% increase was led by strong growth in Express Services and Passenger Charter Services revenues. Bank Services revenues were comparable to the second quarter of the prior year even though there was one fewer flying day in 2004. Higher expenses related to both the growth in revenues and increased operating costs of the Company's businesses contributed to a net loss of $0.1 million, or $0.01 per diluted share, for the second quarter of 2004 compared to net income of $0.7 million, or $0.07 per diluted share, for the same period last year.

Joe Biggerstaff, Chairman of the Board, Chief Executive Officer and President, stated, "The solid growth in second quarter revenues reflects further progress in diversifying our customer base and revenue streams. Combined revenues for Express Services and Passenger Charter Services represented more than 37% of total net revenues for the second quarter of 2004, while our Bank Services revenues remained relatively stable. Although we are pleased with the marketplace acceptance of our Express and Passenger Charter services, we are not satisfied with our bottom line results for the quarter. Costs incurred to support our growth have strengthened our infrastructure and are anticipated to enhance sales growth and improve long-term performance. At the same time, we are analyzing our operating costs and pricing structures to identify opportunities for improvement in operating margins."

Mr. Biggerstaff continued, "Our strategy remains focused on pursuing specific growth initiatives for Express and Passenger Charter in conjunction with offering a range of aviation services for banks. We are actively evaluating ways to utilize our airline more efficiently while responding to the needs of all of our customers. This transformation is particularly challenging as our airline is still largely configured to meet the needs of the banking community, and we are faced with increasing costs of operating the airline to meet the needs of both traditional Bank customers and our growing base of Express customers. As we move forward, airline assets will be deployed to those routes and customers that offer the best opportunities for the Company to achieve sustained future profitability."

Second Quarter Results
Bank Services revenues rose to $26.2 million for the second quarter of 2004 from $25.7 million the prior year, a 2.1% increase. This was primarily due to a $0.5 million increase in fuel surcharge versus the second quarter of 2003. The increase in total shipments for the quarter was partially offset by lower net revenue per shipment compared to a year ago.

Express Services revenues increased 40.6% to $12.1 million for the second quarter of 2004 from $8.6 million a year ago. Solid growth was achieved in each of Express' target markets, which include Aerospace, Entertainment, and Life Sciences, as well as other complementary businesses. Express Services revenues represented 28.7% of total revenues for the second quarter of 2004 compared to 23.6% for the same period last year.

Passenger Charter Services revenues were $3.6 million for the second quarter of 2004, which was 103.5% more than the second quarter of 2003. Demand for these services continues to increase as reflected in the higher number of hours flown by these aircraft, and improved scale to serve a number of key major metropolitan markets in the United States. During the past year, the number of aircraft dedicated to this business grew from seven (two Learjet 60 and five Learjet 35) at June 30, 2003 to fourteen aircraft (nine Learjet 60 and five Learjet 35) at June 30, 2004.

Passenger Charter Services revenues increased to nearly 8.6% of total revenues for the second quarter of 2004 compared to 4.9% a year ago. These revenues were included as part of Aviation services revenues through the third quarter of 2003.

Total costs and expenses increased 19.4% to $41.9 million for the second quarter of 2004 from $35.1 million for the same period last year. Most of the higher second quarter 2004 costs was attributable to increased air and ground activity and costs to support the Company's Express and Passenger Charter growth.

Ground courier costs increased to $7.9 million for the second quarter of 2004 from $6.2 million for the same period last year. This was due to a larger percentage of point-to-point Express shipments utilizing ground-only and traditional next flight out services during the second quarter of 2004. Fuel costs were $1.2 million higher for the second quarter of 2004 versus a year ago, reflecting the increase in fuel price and additional fuel purchased at higher retail rates at FBO locations outside of the Port Columbus facility. These fuel price increases were partially recovered through fuel surcharges. Depreciation expense for the second quarter of 2004 was $0.7 million above the prior year due to the addition of seven Learjet 60 aircraft for Passenger Charter since the second quarter of 2003 and reductions to the Company's estimates of aircraft and engine salvage values.

Six Month Results
Total net revenues increased 12.2% to $82.6 million for the first six months of 2004 compared with $73.7 million last year. Bank Services revenues increased to $52.1 million for the first six months of 2004, which was principally due to higher bank weekend revenues and fuel surcharge revenues. Express Services revenues rose 29.7% to $22.9 million for the year-to-date period primarily due to strong growth in Life Sciences as well as Entertainment, and, to a lesser extent, other target markets. Passenger Charter Services revenues more than doubled to $7.3 million for the first six months of 2004 compared with $3.2 million for the same period in 2003.

Total expenses were $81.5 million for the six months ended June 30, 2004 compared with $71.3 million the prior year. This increase was primarily due to higher ground courier costs ($2.6 million), followed by aircraft fuel ($1.8 million) and depreciation ($1.4 million). A majority of the increase in wages and benefits ($0.6 million) and travel, training and other ($0.9 million) was attributable to significant growth in the Passenger Charter business during the first half of 2004 versus a year ago.

Net income was $0.2 million for the six months ended June 30, 2004, or $0.02 per diluted share, versus $1.0 million, or $0.10 per diluted share, for the same period in 2003.

Credit Facility
The Company amended and restated its term loan and revolving facility ("Credit Facility") with its banks during the second quarter of 2004. The amended Credit Facility is secured. In conjunction with the amended Credit Facility, the Company paid off its three five-year term loans totaling approximately $3.4 million. During the second quarter of 2004, the Company entered into four seven-year term loans totaling approximately $22.5 million with fixed interest rates of 6.7% each secured by aircraft.

The Company had $58.4 million of total debt outstanding at June 30, 2004 versus $37.8 million at December 31, 2003.

Capital Expenditures
During the six months ended June 30, 2004, the Company's capital expenditures were $35.0 million compared to $8.8 million for the same period last year. Most of this amount, $31.6 million, was for the purchase of four Learjet 60 aircraft dedicated to Passenger Charter Services, major periodic aircraft inspections and major engine overhauls, and related flight equipment. In addition, the Company has begun construction of a new corporate and operational headquarters at Rickenbacker International Airport which is expected to be completed by the third quarter of 2005. As of June 30, 2004, $3.6 million has been invested in construction of the new headquarters of the estimated $12.5 million total cost for this project.

AirNet Systems, Inc.
AirNet Systems, Inc., through its operating subsidiaries, focuses its resources on providing value-added, time-critical aviation services to a diverse set of customers in the most service-intensive, cost-effective manner possible. AirNet operates an integrated national transportation network that provides expedited transportation services to banks and time-critical small package shippers nationwide. Jetride, Inc., a wholly-owned subsidiary, provides Passenger Charter services nationwide to individuals and businesses. The Company owned 123 aircraft and managed or leased five aircraft at June 30, 2004, located strategically throughout the United States. To find out more, visit AirNet's website at www.airnet.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Except for the historical information contained in this release of AirNet Systems, Inc., the matters discussed, including, but not limited to, information regarding future economic performance and plans and objectives of AirNet's management, are forward-looking statements that involve risks and uncertainties. When used in this release, the words "believe", "anticipate", "estimate", "expect", "intend", "may", "plan", "project" and similar expressions are intended to be among statements that identify forward-looking statements. Such statements involve risks and uncertainties including, but not limited to, the following which could cause actual results to differ materially from any forward-looking statement: potential regulatory changes by the Federal Aviation Administration ("FAA"), which could increase the regulation of AirNet's business, or the Federal Reserve, which could change the competitive environment of transporting canceled checks; changes in check processing and shipment patterns of bank customers; adverse weather conditions; potential declines in the values of aircraft in AirNet's fleet and any related asset impairment charges; the ability to successfully market the Passenger Charter business in light of global changes in the commercial airline industry; potential changes in locally and federally mandated security requirements; increases in aviation fuel costs not fully offset by AirNet's fuel surcharge program; potential cost overruns associated with the construction of a new facility at Rickenbacker International Airport; acts of war and terrorist activities; the acceptance of AirNet's time-critical service offerings within targeted Express markets; technological advances and increases in the use of electronic funds transfers; as well as other economic, competitive and domestic and foreign governmental factors affecting AirNet's markets, prices and other facets of its operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Please refer to Item 7 of the Annual Report on Form 10-K for the fiscal year ended December 31, 2003 of AirNet Systems, Inc. for additional details relating to risk factors that could affect AirNet's results and cause those results to differ materially from those expressed in forward-looking statements.

                           AirNet Systems, Inc.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

    In thousands, except per          Three Months Ended   Six Months Ended
    share data                              June 30,            June 30,
                                        2004      2003      2004      2003
    NET REVENUES
      Air transportation, net of
       excise tax
      Delivery services:
        Bank services                  $26,230   $25,682   $52,062  $52,005
        Express services                12,083     8,631    22,881   17,641
         Total delivery services
          revenues                      38,313    34,313    74,943   69,646

        Passenger charter services       3,616     1,777     7,253    3,216
        Aviation services and other
         operations                        211       494       415      798
    Total net revenues                  42,140    36,584    82,611   73,660

    COSTS AND EXPENSES
      Air transportation
        Wages and benefits               6,657     6,148    13,003   12,360
        Aircraft fuel                    6,186     4,951    11,722    9,893
        Aircraft maintenance             3,690     2,954     6,880    6,335
        Contracted air costs             3,127     2,378     6,197    5,185
        Ground courier                   7,887     6,174    15,029   12,440
        Depreciation                     5,050     4,319     9,939    8,511
        Insurance, rent and landing
         fees                            2,638     2,384     5,202    4,628
        Travel, training and other       2,650     2,165     5,211    4,343
        Selling, general and
         administrative                  4,050     3,648     8,009    7,578
        Net (gain)loss on disposition
         of assets                          (3)        -       289        -
    Total costs and expenses            41,932    35,121    81,481   71,273
    Income from continuing operations      208     1,463     1,130    2,387
    Interest expense                       407       340       774      742

    Income (loss) from continuing
     operations before income taxes       (199)    1,123       356    1,645
    Provision for income taxes             (86)      438       153      641

    Income (loss) from continuing
     operations                          ($113)     $685      $203   $1,004

    Income from discontinued operations,
     net of taxes                           $0       $39        $0      $17

    Net income (loss)                    ($113)      724      $203   $1,021

    Income (loss) per share - basic
     and diluted
      Continuing operations             ($0.01)    $0.07     $0.02    $0.10
      Discontinued operations                -         -         -        -
    Net income (loss) per share -
     basic and diluted                  ($0.01)    $0.07     $0.02    $0.10

    See notes to condensed consolidated financial statements