BE Aerospace reports fiscal 1997 second quarter results; record sales of $103 million; strong bookings, particularly in seating and galley products divisions.

WELLINGTON, Fla.--(BUSINESS WIRE)--Sept. 24, 1996--BE Aerospace Inc. (NASDAQ-NMS: BEAV) today announced results for its fiscal 1997 second quarter and six months ended Aug. 31, 1996.

Net sales for BEA's latest three months were very strong at $103,026,000, up 79 percent versus fiscal 1996 second quarter sales of $57,451,000. Fiscal 1997 results reflect the inclusion of Burns Aerospace Corp. acquired in January 1996. Revenues for the second quarter excluding the effect of the Burns acquisition were up 28 percent. Second quarter gross profit of $34,439,000 increased by 84 percent versus the year-earlier level of $18,719,000 reflecting the substantial increase in the level of sales as well as an improved gross margin of 33.4 percent of sales in the current quarter versus 32.6 percent in the fiscal 1996 period. Similarly, operating earnings of $9,534,000 in the most recent three months represent a $13,087,000 turnaround year to year versus the second quarter 1996 reported loss of $(3,553,000). For the fiscal 1997 second quarter, BEA reported net earnings of $1,863,000, or 11 cents per share, versus a year-earlier loss of $(7,514,000), or (47) cents per share. New order bookings in this year's second quarter of $109 million were more than double the fiscal 1996 second quarter bookings level of $50 million.

Sales for the first six months of fiscal 1997 were $200,328,000 up 77 percent from the fiscal 1996 first half. Excluding the effect of the Burns acquisition, sales were up 28 percent compared to last year's six month interim results. Likewise, gross profit in fiscal 1997 of $66,986,000, or 33.4 percent of sales, was up 80 percent versus the prior year at $37,120,000, or 32.8 percent. For the 1997 first half, BEA reported net earnings of $3,296,000, or 19 cents per share, versus a net loss of $(40,528,000), or $(2.52) per share, in fiscal 1996. In fiscal 1996, the company changed its method of accounting relating to the capitalization of certain customer-related engineering costs that were previously included as a component of inventories. As a consequence, the fiscal 1996 first half results used in the year-to-year comparison reflect not only the expensing of all MDDS engineering costs incurred in last year's first half but also the cumulative effect of this accounting change of $(23,332,000), or $(1.45) per share.

Versus fiscal 1996 year-end figures, the company's working capital increased by $20,458,000, or 49 percent, to $62,282,000. The current ratio also continued to improve, increasing to 1.64:1 from 1.51 at the end of the first quarter and from 1.39:1 at year-end. The company's backlog at the end of the fiscal 1997 second quarter was a record $480 million versus $350 million a year earlier and $450 million at the beginning of this fiscal year.

BEA Chairman Amin J. Khoury stated, "Our second quarter results were better than our previous expectations for the period and reflected increases in sales and operating earnings in all divisions -- Seating Products, Galley Products, In-Flight Entertainment and B/E Services. The recovery in airline industry fortunes continues unabated, and increased worldwide carrier profitability is being reflected in the rising rate of new refurbishment and retrofit programs which are being undertaken by the airlines. This, in turn, has led to very strong order bookings and record sales. Broad-based, full-service suppliers such as BE Aerospace with leading market positions will benefit directly first from the accelerating rebound in the refurbishment and retrofit of the existing world commercial jet fleet and then, with perhaps a six-to-nine-month lag, from the anticipated resurgence in new aircraft production as well. In addition, we believe our new product offerings in seats, food and beverage preparation equipment and, most notably, our MDDS interactive individual entertainment system will add further strength to our own performance going forward. We continue to expect that our fiscal 1997 second half performance will substantially exceed first-half levels and that our momentum will continue."

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.

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 10-Q for the fiscal quarter ended May 25, 1996 and the prospectus relating to the company's 9-7/8% 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        Six Months Ended
                          Aug. 31,     Aug. 26,    Aug. 31,      Aug. 26,
                            1996         1995        1996          1995

Net sales                $103,026      $57,451     $200,328      $113,045
Cost of sales              68,587       38,732      133,342        75,925
Gross profit               34,439       18,719       66,986        37,120
 -- Percent                  33.4%        32.6%        33.4%         32.8%

OPERATING EXPENSES:
Selling, general and
 administrative            12,669        8,443       24,254        16,743
Research, development
 and engineering            9,430       11,471       19,157        24,774
Amortization                2,806        2,358        5,514         4,650
 Total operating expenses  24,905       22,272       48,925        46,167

OPERATING EARNINGS (LOSS)   9,534       (3,553)      18,061        (9,047)
 -- Percent                   9.3%        (6.2)%        9.0%         (8.0)%

Interest expense, net       7,464        3,961       14,399         8,149

Earnings (loss) before
 income taxes and
 cumulative effect
 of change in
 accounting principle       2,070       (7,514)       3,662       (17,196)
Income taxes                  207          --           366           --
Earnings (loss) before
 cumulative effect of
 change in accounting
 principle                  1,863       (7,514)       3,296       (17,196)

Cumulative effect of
 change in accounting
 principle                    --            --          --        (23,332)

NET EARNINGS (LOSS)      $  1,863      $(7,514)    $  3,296      $(40,528)

NET EARNINGS (LOSS)
 PER COMMON SHARE            $.11        $(.47)        $.19        $(2.52)

Common and common
 equivalent shares         17,598       16,118       17,446        16,108

CONTACT: Jay Jacobson

Financial Relations (NYC)

212/889-6362