B/E Aerospace to Team With InterContinental Aircraft Services on Alaska Airlines' 737-400 Passenger-to-Freighter Conversion Program

Business Wire, July 15, 2004

WELLINGTON, Fla. -- B/E Aerospace, Inc. (Nasdaq:BEAV) announced today that Alaska Airlines has selected a team consisting of B/E's Flight Structures unit (FSI), and InterContinental Aircraft Services (ICAS) to design, build, install, and certify the conversion of its 737-400 aircraft from a passenger to freighter configuration. The Boeing Company (Boeing) will provide post-conversion engineering support. This program includes orders for 737-400 Combi (freight in forward area and passenger capacity in rear) as well as a full freighter conversion. Revenue to B/E Aerospace is expected to be approximately $1 million per 737 conversion and deliveries are expected to begin in the late 2005 time frame.

FSI is a leading provider of modification and integration services to the commercial aviation industry. With over 190 Supplemental Type Certificates, FSI specializes in the engineering and certification of aircraft modifications including freighter conversions, crew rest systems, aircraft reconfigurations and communication systems programs. These advanced engineering and certification capabilities combined with proprietary airframe data and technical support services provided by Boeing and the MRO and engineering capabilities of ICAS will provide a turnkey passenger-to-freighter solution for Alaska Airlines.

"Commercial airline passenger-to-freighter conversions represent a large potential market for B/E," said Robert Khoury, President and Chief Executive Officer of B/E Aerospace. "The size of the worldwide freighter fleet will nearly double over the next twenty years, adding almost 2,600 aircraft. Industry sources estimate that almost 70 percent of that increase is expected to come from converting commercial passenger jets to use as freighters. The Alaska Airlines award is a significant win for us as this program represents our initial 737 conversion. There are currently approximately 1,800 Boeing 737 aircraft, which are over 12 years old and prime candidates for conversion. In addition, this program enables us to expand our overall presence in this attractive market," added Mr. Khoury.

About ICAS

ICAS represents the alliance of major Taiwanese aircraft maintenance resources, including Air Asia, China Airlines (CAL), Evergreen Aviation Technologies (EGAT), and Aerospace Industrial Development Corporation (AIDC). ICAS provides aircraft manufacturing, engineering, tool design and manufacturing, parts fabrication, assembly, maintenance, modification and flight support for the global market.

About B/E Aerospace, Inc.

B/E Aerospace, Inc. is the world's leading manufacturer of aircraft cabin interior products, and a leading aftermarket distributor of aerospace fasteners. B/E designs, develops and manufactures a broad product line for both commercial aircraft and business jets and provides cabin interior design, reconfiguration and conversion services. Products for the existing aircraft fleet -- the aftermarket -- provide about 60 percent of sales. B/E sells its products through its own global direct sales organization. For more information, visit B/E's website at http://www.beaerospace.com.