Dublin, Ireland, August 3, 2011 – FLY Leasing Limited (NYSE: FLY) (“FLY”), a global lessor of modern, fuel-efficient commercial jet aircraft, today announced it has entered into an agreement to purchase a $1.4 billion portfolio of 49 aircraft, increasing FLY’s total aircraft under operating lease to more than $3 billion. The aircraft were previously managed by Global Aviation Asset Management, an Australian company. The aircraft are on lease to 23 airlines in 15 countries.

After completing the transaction, FLY will have 109 aircraft on lease to 53 airlines in 29 countries. The purchase price will be fully funded from FLY’s unrestricted cash and the assumption of existing non-recourse debt.

“This is a transformational transaction for FLY, growing our portfolio of modern and fuel-efficient commercial aircraft by more than 80 percent,” said Colm Barrington, CEO of FLY. “This major acquisition provides FLY with significant benefits: First, it adds 49 modern aircraft to our portfolio, growing FLY’s fleet to a total of 109 aircraft, all of which are currently on lease. Secondly, it increases our EPS and Available Cash Flow and is immediately accretive to both of these measures, and does not require us to issue additional equity or source new debt. Thirdly, it adds 19 new lessees around the world, including some of the industry’s strongest credits, further diversifying our revenues.”

“This is a very compelling acquisition for FLY,” said Steve Zissis, the President and CEO of BBAM LP. “The aircraft are leased to strong, well-run airlines around the world that will increase FLY’s annualized revenues by over 80 percent to approximately $370 million. The transaction was sourced and negotiated by BBAM and highlights the benefit to FLY of the deep industry relationships BBAM has around the world.”

Aircraft Portfolio

The portfolio to be acquired consists of 49 aircraft with a weighted average age of 7.6 years at June 30, 2011 based on current market appraisals. The following table shows the aircraft to be acquired, FLY’s current portfolio and the resulting combined portfolio.

The average age of the combined portfolio is 8.0 years as of June 30, 2011, weighted by the net book value of FLY’s current aircraft and current market value appraisals for the portfolio to be acquired. The combined average remaining lease term is 4.0 years, also weighted by the above methodology. The aircraft are on lease to 53 airlines in 29 countries. The combined leases currently generate annualized revenues of approximately $370 million.

The Lessees

Lessees of the 49 aircraft include well-known airlines, with 50% of the rents coming from European carriers and 38% from the Asia-Pacific region. There is little overlap with FLY’s current lessees, with only four common lessees.

The Transaction

FLY will acquire three entities, currently owned by Australian investors, each indirectly holding between one and 39 aircraft. Each of the entities or their subsidiaries is financed with debt that will be assumed in the transaction. The non-recourse debt is in place through five facilities with six different lenders.

The transaction has been approved by FLY’s board of directors and is subject to lender consent, as well as other customary closing conditions. The transaction is expected to close in the fourth quarter.

Advisors

BBAM sourced the transaction and acted as financial, technical and asset advisor. Clifford Chance US LLP acted as the legal advisor to FLY. Jones Day acted as special counsel to FLY’s board of directors.