Strong bookings for the second quarter of $269 million drove backlog at June 30, 2005 to another record level of approximately $820 million, which was 33 percent greater versus the company`s June 30, 2004 backlog and was up eight percent on a sequential quarterly basis. Orders for the quarter were driven both by strong international fleet refurbishment programs and the first major North American coach class retrofit program since the events of September 11, 2001. ``Our investments in new product development over the past several years continue to convert into market share gains and backlog growth,`` said Robert Khoury, President and Chief Executive Officer of B/E Aerospace, Inc.

These investments have generated a host of new products including:

-- Electric lie-flat seats

-- The MiniPod(R) seating product suite for wide-body aircraft -- selected by 14 major international carriers

-- Super first class compartments -- selected by 5 international airlines to date

-- Next generation steam oven -- selected by 10 airlines including the first four A380 customers

-- Spectrum(R) platform seats, including first class, tourist class and regional jets -- selected by nearly 50 customers

-- New ICON(TM) long-haul, wide-body tourist class seat -- successfully launched with two major international carriers

-- LED lighting systems -- selected by over 80 customers

-- New beverage making systems -- selected by over 20 customers, and

-- B/E`s new patent-protected Pulse Oxygen(R) system -- which was recently selected by Boeing for installation on all 787 Dreamliner aircraft

We believe the many customer program awards we have won during the quarter support our belief that our new product innovations are contributing to our recent results in the marketplace. Some of the programs awarded during the quarter include the following:

Air Canada selected B/E to upgrade its fleets of narrow-body, wide-body and regional jets with B/E`s Spectrum seats in a program valued in excess of $50 million. This represents the product launch for our Spectrum first class seat, which is a product line extension of the existing Spectrum platform which has now been ordered by nearly 50 customers for their narrow-body aircraft. Under this program, B/E will manufacture and deliver its Spectrum family of coach class and first class seating products for all of Air Canada`s Airbus and Boeing narrow-body aircraft as well as its fleet of Bombardier regional jets. In addition, B/E will also retrofit Air Canada`s fleet of wide-body aircraft with its coach class Spectrum product. Mr. Khoury commented, ``Air Canada is the first North American airline to undertake a major fleet-wide retrofit program since the events of September 11, 2001.``

During the second quarter the company also successfully launched ICON, its next generation long-haul wide-body, tourist class seat with two major international carriers in programs initially valued at approximately $50 million. This premium coach seat platform includes numerous product innovations designed to increase passenger comfort while reducing airlines` total cost of ownership. We believe this new product and these two programs favorably position B/E for future upgrade opportunities in the emerging long-haul coach class seating segment.

In addition, during the second quarter, Boeing selected B/E`s recently developed, patent-protected aircraft oxygen system, the Pulse Oxygen system, for all Boeing 787 Dreamliners. The Pulse Oxygen system utilizes B/E`s proprietary technology. This award enhances B/E`s competitive position and sets the stage for additional future awards on other new generation aircraft platforms.

Mr. Khoury commented, ``This clearly is the most vibrant marketing period in our history. The company has been generating record backlogs over the past twelve months, while reporting substantial revenue and earnings growth, all at the outset of the recovery in our industry. The second quarter has been our best quarter ever in terms of customer program awards, totaling approximately $375 million, and, as a result, we expect to continue to see robust growth in our backlog during the balance of 2005, which we believe will result in new records for backlog at the end of the third and fourth quarters and rising to approximately $1 billion by year-end. We are increasingly confident in our ability to generate revenues in excess of $800 million during 2005 and to generate revenues in excess of $900 million in 2006. The company is maintaining 2005 earnings guidance of $0.50 per share in spite of overperformance on revenue, bookings and backlog, electing to spend more on product development and marketing. In addition, as announced on June 20, 2005, the company is raising its 2006 earnings guidance to a range of $1.00 - $1.10 per share.``

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