B/E Aerospace to Sell Remaining Interest in Joint Venture.

WELLINGTON, Fla.--(BUSINESS WIRE)--Sept. 2, 1999--

B/E Aerospace, Inc. ("B/E") (Nasdaq NMS:BEAV) today announced that it has reached an agreement to sell its remaining 49% equity interest in Sextant In-Flight Systems, LLC (SIFS) to its joint venture partner, Sextant Avionique, Inc. (Sextant).

Total consideration received by B/E for 100% of its equity interest in its in-flight entertainment business, including the sale of the 49% interest announced today, and for the provision of marketing, product and technical consulting services, will be up to approximately $125 million, depending on the performance of SIFS through December 31, 2001. Total consideration received by B/E will in no event be less than $93.3 million. B/E is obligated to provide marketing, product and other technical consulting services for no additional cash consideration.

B/E will receive payments of $15.8 million on the first and second anniversaries of the closing of the transaction. The third and final amount to be paid to B/E for its remaining 49% interest in SIFS will be based on SIFS's sales and booking performance over the period from March 1, 1999 to December 31, 2001. B/E intends to use the proceeds from these payments to reduce indebtedness.

The minimum net proceeds from the sale of B/E's remaining 49% interest in SIFS will be approximately equal to B/E's investment in SIFS. As a result, B/E does not expect to report any gain from the equity sale during fiscal 2000 or 2001. The final payment to be made to B/E, which will be based on SIFS's sales and booking performance as described above, could generate a pre-tax gain of up to $30 million during fiscal year 2002.

"In-flight entertainment is fundamentally different from our core businesses," said Robert J. Khoury, Vice Chairman and Chief Executive Officer of B/E. "This is one of the reasons we sought out a partner late last year. We found a good one in Sextant. Because of the non-core nature of this business to the company, B/E naturally has a shorter-term focus than our partner. We have jointly decided that it makes sense for Sextant to have full control over operations, while placing a fair value on the business both today and in the future.

"We believe that Sextant will be successful in this venture, both in the near term and in the long term," continued Mr. Khoury. "The transaction we announce today offers advantages to both parties. Sextant will be free to run the business according to their longer-term vision. B/E will participate in the success of the business while conserving cash flow, thereby maintaining financial flexibility and facilitating our plans to significantly reduce debt over the next several years."

Sextant is a wholly-owned subsidiary of Sextant Avionique, S.A., one of the world's largest suppliers of avionics systems for commercial and military aircraft.

B/E Aerospace, Inc. is the world's leading manufacturer of cabin interior products, serving virtually all the world's airlines and aircraft manufacturers. B/E designs, develops, manufactures, sells and services a broad line of passenger cabin interior products for both commercial and general aviation aircraft and provides interior design, reconfiguration and conversion services to its customers throughout the world. Information on B/E is available on the World Wide Web at www.beaerospace.com.

This press release contains forward-looking statements which involve risks and uncertainties. The Company's actual experience may differ materially from that anticipated in such statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Company's filings with the Securities and Exchange Commission, including its most recent proxy statement and Form 10-K, and in "Risk Factors" in both its amended Form S-3 filed on December 28, 1998, relating to the registration of the Company's common stock, and amended Form S-4 filed January 13, 1999, relating to the registration of the Company's senior subordinated notes, as well as future events that may have the effect of reducing the Company's available operating income and available cash balances, such as unexpected operating losses or delays in the integration of the Company's acquired businesses, conditions in the airline industry, customer delivery requirements, new or expected refurbishments, cash expenditures related to possible future acquisitions, delays in the implementation of the Company's integrated management information system, labor disputes involving the Company, its significant customers or airframe manufacturers, delays or inefficiencies in the introduction of new products or fluctuations in currency exchange rates.