B/E Aerospace Clarifies Statement on British Airway's MDDS Order and B/E Backlog

Business Wire, Sept 18, 1997

WELLINGTON, Fla.--(BUSINESS WIRE)--Sept. 18, 1997--B/E Aerospace (Nasdaq-NMS:BEAV) wishes to clarify and expand upon the portions of its September 16, 1997 press release relating to B/E's backlog information and to the MDDS interactive entertainment system currently being developed by B/E for British Airways.

MDDS is the term describing the family of interactive systems being developed by B/E for various airlines. The configuration designed for BA, which includes Video-on-Demand, video games, gaming, shopping, in-flight information programs, telephony, etc., is believed by BA to be not sufficiently robust to assure highly reliable functionality for its passengers. Therefore, BA has decided not to conduct a flight trial of B/E's MDDS interactive system. Such a trial would involve tens of thousands of BA passengers using the system intensively over the next 90 days in all of its functionalities.

BA's business priorities require a proven, multi-channel seat back video system to be available for first installation during the latter part of 1998. BA is continuing to plan that this requirement is met. BA has asked B/E Aerospace to quote for an upgradeable multi-channel seat back video system. As part of this, BA has made a new proposal to work with B/E using a version of the MDDS system, which is installed on one of BA's Boeing 747 aircraft, to give B/E an opportunity to prove the reliability of a multi-channel upgradeable system. BA has indicated it will make its final procurement decision before the end of 1997.

BA has also indicated that it remains interested in interactive entertainment systems for the future and this will be a consideration for BA's new IFE systems. British Airways believes that a different version of B/E's MDDS interactive system may be able to meet the goals for its future IFE requirements. B/E is hopeful that B/E and BA will be able to work together to realize a successful next generation in-flight entertainment system.

In addition, B/E wishes to clarify the reference to its backlog at the end of the Company's fiscal second quarter. As stated in the release, as of August 30, 1997, the backlog stood at $525 million. This figure represents the current B/E backlog AFTER subtracting the amount attributable to the British Airways program previously included in the Company's backlog figure. This represents a year-to-year increase of $155 million, or 42 percent, versus the Company's backlog at the end of its fiscal 1997 second quarter, as similarly adjusted to exclude the amount then attributable to the British Airways MDDS booking.

B/E 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 a complete line of food and beverage preparation and storage equipment. B/E 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. 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 Form 10-Q, proxy statement and Form 10-K and the prospectus dated December 12, 1996, relating to the Company's recent common stock offering.

CONTACT: Financial Relations

Jay Jacobson, 914/722-2737