BE Aerospace interactive video system successfully debuts on British Airways B747; Company awarded $33 million in new seating programs.

WELLINGTON, Fla.--(BUSINESS WIRE)--Nov. 21, 1995--BE Aerospace, Inc. (Nasdaq-NMS:BEAV) announced today that the company's advanced B/E 4000 MDDS (Multimedia Digital Distribution System) video system is now operating on its first British Airways Boeing 747-400, with 400 seats in all classes of service equipped.

All MDDS switching systems are functioning as designed on the inaugural aircraft, as is all of the wiring infrastructure. Initial reports confirm superb high-fidelity sound and video quality. The British Airways aircraft went into commercial revenue-producing service on Saturday, Nov. 18, 1995.

The MDDS is the first fully integrated sound/video and voice/data interactive system ever built for an airplane. All other interactive systems have until now been unable to provide the high data rates between the seats and the front-end equipment required to support "Video-on-Demand," shopping, games, gaming and other applications. The MDDS system architecture, which is now up and running, avoids these problems.

The MDDS telephone system, designed to interface with the international, satellite-based ISDN (Integrated Signal Digital Network) system, was designed and built by BEA and is successfully functioning to permit international telephone calls. The MDDS system has now been proven to be able to handle both voice and data, which are controlled through the MDDS handset, the switching system and the wiring infrastructure.

Every major feature of MDDS has now been run, either in the airplane or on the ground, and over 98 percent of the system components have now been delivered and are working on the 747-400 aircraft. Nintendo games, gambling and shopping modules have been running since May, both at the company's Irvine, Calif. manufacturing facility and in England, along with the rest of the system and have been subjected to thousands of hours of testing. With the MDDS system functioning as designed, the addition of all interactive functions is expected to be straightforward since the system views Nintendo, gambling and shopping platforms as merely additional video outputs which are already handled by the switching system. The Nintendo, shopping and gaming platforms will be installed by BA once BEA and British Telecom, BA's software integrator, have completed software compatibility testing. The MDDS system is the only aircraft-based interactive entertainment system which has the flexibility to allow airlines to easily upgrade to allow a variety of interactive platforms, such as Nintendo, Sega and personal computer-based, as well as yet-to-be-developed future platforms for various interactive functions.

MDDS is the most ground-tested IFE system ever and is designed to be installed on all aircraft types of the world's commercial airline fleet. The B/E MDDS in-seat video system provides over 500 channels for regular video programming such as movies, as well as live broadcast television and the broadest variety of full interactive features such as video games on a variety of platforms, pay-per-view, duty-free and catalogue shopping, information menus, and both ground-based and satellite in-cabin telephone distribution. BEA's true "Video-on-Demand" will allow each of the entire aircraft's passengers to start, stop, fast forward and rewind video programs of their choice whenever they want.

The company also separately announced that its Seating Products Division has been awarded $33 million in new business for three major programs to be undertaken by Japan Airlines (JAL), Singapore Airlines and United Airlines.

Specifically, JAL has signed a Letter of Intent to purchase Business Class seats for 44 of the airline's B747 and MD-11 aircraft. The shipsets will be delivered over a two-year period beginning in May 1996. Singapore Airlines has placed an order covering both Business Class and Tourist Class seats for 17 Airbus A340 aircraft. First deliveries to Singapore are scheduled this month. In addition, BEA continues to supply its tourist class seats for all of Singapore's B747's. Lastly, BEA has received a Letter of Intent to supply its passenger seating for United Airlines new Premier Connoisseur Class on 20 of the carrier's B747 aircraft.

BEA Chairman and Chief Executive Officer Amin J. Khoury stated, "We are gratified by these developments in both our In-Flight Entertainment and Seating Products Divisions. We believe that a number of airlines have been awaiting the actual in-flight demonstration of the capabilities promised for our MDDS video system before placing their own interactive video orders. The successful launch on British Airways is obviously a long-awaited major milestone for the company and solidifies BEA's stature as the clearcut industry leader. Likewise, in seating, the aggregate new orders from these three outstanding airlines provide further evidence that the expected rebound in airline refurbishment activity for their existing fleets may be gathering steam. These new orders won't help to improve this year's financial results of operations, and our current expectations for the balance of the fiscal year which will end on February 28, 1996 are for continued lackluster financial results buoyed by a strong increase in the backlog which has clearly begun to grow."

BE Aerospace, Inc. designs, manufactures, sells and services a broad line of commercial aircraft cabin interior products, including seating products, passenger entertainment and service systems, and galley structures and inserts. BE Aerospace is the world's leading supplier of cabin interior products and services, serving virtually all the world's airlines.

CONTACT: Corporate and Financial Relations, New York 

Jay Jacobson, 212/889-6362