BE Aerospace reports fiscal 1996 results, including impact of accounting change and expenses associated with Burns Aerospace acquisition; Announces interactive video shipment.

WELLINGTON, Fla.--(BUSINESS WIRE)--May 2, 1996--BE Aerospace Inc. (NASDAQ-NMS:BEAV) today announced results for its fourth quarter and fiscal year ended Feb. 24, 1996.

BEA's fourth quarter sales were $64,349,000, up nine percent versus fiscal 1995 fourth quarter sales of $59,302,000. As previously announced, effective at the beginning of the year ended Feb. 24, 1996, the company changed its method of accounting for customer program engineering expenditures, which are now expensed as incurred, rather than included as a component of inventories and amortized over future deliveries. The impact of this change in accounting, together with expenses associated with the acquisition of Burns Aerospace Corp. and costs related to organizational changes brought about by this acquisition, are the principal factors leading to a net loss for the fourth quarter of $(31,254,000), or $(1.92) per share. The company reported fiscal 1995 fourth quarter net earnings of $465,000, or three cents per share.

Sales for the full fiscal year ended Feb. 24, 1996, were $232,582,000, up $3,235,000, or one percent, from the prior year's sales level of $229,347,000. Gross profit for fiscal 1996 was $72,551,000, as compared to $74,484,000 in the prior year. Operating earnings and net earnings were impacted by the accounting change, which had a full year effect of approximately $65 million and, together with certain expenses associated with the previous announced acquisition of Burns Aerospace Corp. and costs related to organizational changes brought about by this acquisition, were the principal causes of BEA's net loss of $(83,413,000), or $(5.15) per share.

BEA Chairman Amin J. Khoury stated, "We believe it is appropriate to change our method of accounting for customer program engineering expenditures. While this change in accounting method, and expenses related to the Burns acquisition, negatively impacted our operating results for the year just ended, we believe these steps will place the Company on a solid financial base for future growth. The Company now stands poised to benefit from its growing backlog and strong market shares in a marketplace which now shows robust fundamentals."

Khoury continued, "We believe we are now in our turnaround quarter. This past week, the entire interactive Multi-media Digital Distribution System (MDDS) was shipped to British Airways for installation later this month. The system as shipped has a full complement of MDDS features, including Nintendo games, gambling, shopping, industry-leading, high-quality video and sound and full 'Video on Demand' available on all 400 seats. Our current backlog of approximately $475 million is at a record level, bolstered particularly by refurbishment activity at the airlines resulting in significant strength in our seating and galley products backlogs. The airline industry reported record profits in calendar 1995, with the expectation of further increases this year. Driven by their record earnings and continuing growth in airline travel worldwide, airline orders for new aircraft have rebounded strongly, leading to recent announcements by Boeing of up to a 50-percent increase in production levels by this time next year. Each of these indicators bodes well for a healthy turnaround in BEA's results beginning with the first quarter of this year."

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. -0-

This press release contains forward-looking statements. Any such statements are subject to risks and uncertainties that could cause actual results to vary materially from those anticipated; among these are the company's dependence upon conditions in the airline industry, the company's financial leverage, the size and resources of many of the company's competitors and the need for the company to continue to effectively integrate acquired businesses and successfully manufacture and deliver technologically advanced products. Additional information with respect to these and other factors which could materially affect the company is included in the company's filings with the Securities and Exchange Commission, including its most recent proxy statement and 10-K, its 10Q for the fiscal quarter ended Nov. 25, 1995 and the prospectus relating to the company's 9-7/8 percent series B senior subordinated notes due 2006. -0-

                          BE Aerospace Inc.
                Consolidated Statements of Earnings
                            (Unaudited)
               (In thousands, except per share data)

                           Three Months Ended          Full Year Ended
                          Feb. 24      Feb. 25,    Feb. 24,      Feb. 25,
                            1996         1995        1996          1995

Net sales                 $64,349      $59,302     $232,582      $229,347
Cost of sales              46,685       40,781      160,031       154,863
Gross profit               17,664       18,521       72,551        74,484
 -- Percent                  27.5%        31.2%        31.2%         32.5%

OPERATING EXPENSES:
Selling, general and
 administrative            16,692        7,889       42,020        31,787
Research, development
 and engineering           21,071        3,960       58,327        12,860
Amortization                2,518        2,327        9,499         9,954
Other expenses                                        4,150        23,736
 Total operating expenses  40,281       14,176      113,996        78,337

OPERATING EARNINGS/(LOSS) (22,617)       4,345      (41,445)       (3,853)
 -- Percent                 (35.1)%        7.3%       (17.8)%        (1.7)%

Interest expense, net       6,247        3,939       18,636        15,019

Earnings (loss) before
 tax expense/(benefit)
 and cumulative effect of
 accounting change         28,864          406      (60,081)      (18,872)
Income taxes expense/
 (benefit)                  2,390          (59)         ---        (6,806)
Earnings (loss) before
 cumulative effect of
 accounting change        (31,254)         465      (60,081)      (12,066)

Cumulative effect of
 accounting change                                   23,332

NET EARNINGS (LOSS)      $(31,254)     $   465     $(83,413)     $(12,066)

NET EARNINGS (LOSS)
 PER COMMON SHARE        $  (1.92)     $   .03     $  (5.15)     $   (.75)

Common and common
 equivalent shares         16,274       16,063       16,185        16,021

CONTACT: Jay Jacobson

Financial Relations (NYC)

212/889-6362