HEICO Corporation Announces Important Acquisition; Future Aviation purchase marks entry into fast-growing regional aircraft market

Business Wire, June 8, 2000

Business Editors

MIAMI and HOLLYWOOD, Fla.--(BUSINESS WIRE)--June 8, 2000

HEICO Corporation (NYSE:HEI and HEI.A) today announced that its Flight Support Group has acquired substantially all of the assets and certain liabilities of Future Aviation, Inc., a leading and fast-growing aircraft accessory component repair and overhaul company principally serving the regional and commuter aircraft market, for approximately $14 million in cash paid at closing.

Naples, Florida-based Future reported sales of approximately $12.7 million in 1999. HEICO stated it anticipates that the transaction will be accretive to its earnings within the first year of ownership. HEICO's Flight Support Group includes operations which are leading participants in the accessory component overhaul and repair industry for non-regional commercial jet aircraft. Future expands HEICO's repair and overhaul capabilities and offers substantial potential operating synergies.

Founded fifteen years ago by Future's President, Charles S. Eddy, and its Treasurer, Michele E. Eddy, Future believes that it is the largest (in annual sales) independent provider of accessory component repair and overhaul to the regional and commuter aircraft market. According to Aviation Week & Space Technology magazine, regional and commuter aircraft (which are generally defined as aircraft containing fewer then 90 seats) are anticipated to be the fastest growing segment in the aerospace industry over the next decade. Included in this market are the newly-popular "Regional Jet" aircraft currently being rapidly introduced throughout the world to expand the regional aircraft fleet and to replace smaller turbo prop commuter aircraft. Current estimates indicate that more than 8,300 regional jets worth more than $160 billion will be delivered over the next 18 years. HEICO believes that this market offers enormous growth and that Future offers a highly profitable, experienced and well managed entry.

HEICO stated that it does not expect any significant employee turnover at Future, which currently employs approximately 45 people at its primary facility in Naples, Florida. Mr. and Mrs. Eddy will be remaining with Future in their pre-acquisition capacities.

Laurans A. Mendelson, HEICO's Chairman, President, and Chief Executive Officer, remarked, "Future Aviation fits HEICO's acquisition criteria perfectly. It is growing very quickly, expands our aerospace product offerings to airlines, is expected to be accretive to our earnings, is a market leader and its management culture is compatible with HEICO's. We are convinced that we can experience strong growth in the regional aircraft market by leveraging Future's high quality reputation and strong relationships with regional and commuter aircraft operators."

Certain matters discussed in this press release include forward-looking statements which involve risks and uncertainties. The Company's actual experience may differ materially from that discussed as a result of factors, including, but not limited to, lower commercial air travel, product specifications costs and requirements, governmental and regulatory demands, competition on military programs, product pricing levels, the Company's ability to achieve operating synergies from acquisitions, interest rates and economic conditions within and outside of the aerospace, aviation and defense industries. Parties receiving this material are encouraged to review all filings of the Company with the Securities and Exchange Commission, including, but not limited to filings on Forms 10-K, Forms 10-Q and Forms 8-K.

HEICO Corporation is engaged in certain niche segments of the aerospace, aviation and defense industries through its Hollywood, FL-based HEICO Aerospace Holdings Corp. subsidiary and its Miami, FL-based HEICO Aviation Products Corp. subsidiary. HEICO's customers include a majority of the world's airlines and airmotives as well as numerous defense contractors and military agencies worldwide, including the United States Air Force, Navy and NASA. HEICO has developed and successfully employs programs which emphasize Synchronous and Flow Manufacturing, Lean Production principles, Equipment Enhancement and Process Improvements to enhance its manufacturing operations and has followed highly focused marketing and product development programs to greatly expand product offerings and marketing reach following acquisitions. For more information concerning HEICO, please see our World Wide Web site at: http://www.heico.com/