B/E Aerospace, Inc. (Nasdaq:BEAV), the world's leading manufacturer of aircraft cabin interior products and a leading aftermarket distributor of aerospace fasteners, today announced that China Southern, the largest airline in the People's Republic of China, has selected it to convert six of its A300-600 passenger airliners to freighter aircraft. Deliveries under this program are expected to begin in the latter part of 2007. B/E's Flight Structures group will develop the engineering and certification package and will manufacture the structural components required for the conversion, while Guangzhou Aircraft Maintenance Engineering Company (GAMECO), a China Southern affiliate, will perform the conversions. The passenger-to-freighter conversion process includes modifying the floor and floor support structures to accommodate the increased freighter floor loading, as well as the airframe to accept a cargo door and a door surround structure to accommodate large freight pallets and containers. Aircraft mechanical and electrical systems will also be modified to suit the aircraft's new mission as a freighter. The structural modification uses state-of-the-art finite element modeling to establish internal and external loads. "With nearly 300 A300-600 aircraft in service today, industry analysts have estimated over 160 are reaching the end of their useful passenger life, making this airframe an ideal candidate for conversion to a new mission as a cargo freighter, and representing a potential market of more than one billion dollars. The A300-600 passenger-to-freighter conversion offers a cargo plane with superior operating economics while significantly extending the economic operating life of the airframe asset," said Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace, Inc. "The China Southern program should allow B/E to leverage its proven capabilities in passenger-to-freighter conversions to this new airframe platform." B/E, through is Flight Structures group, currently holds over 200 supplemental type certificates (STCs), which are required whenever the structure of an aircraft is modified. Flight Structures has extensive experience in converting passenger aircraft to freighters, having previously completed 75 passenger-to-freighter conversions on the A300B4, B747-200 and B767-200 airframe platforms. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties. B/E's actual experience may differ materially from that anticipated in such statements. Factors that might cause such a difference include those discussed in B/E's filings with the Securities and Exchange Commission, including but not limited to its most recent proxy statement, Form 10-K and Form 10-Q. For more information, see the section entitled "Forward-Looking Statements" contained in B/E's Form 10-K and in other filings. The forward-looking statements included in this news release are made only as of the date of this news release and, except as required by federal securities laws, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances. 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 range of products for both commercial aircraft and business jets. B/E manufactured products include aircraft cabin seating, lighting, oxygen, and food and beverage preparation and storage equipment. The company also provides cabin interior design, reconfiguration and passenger-to-freighter conversion services. Products for the existing aircraft fleet -- the aftermarket -- generate about 60 percent of sales. B/E sells and supports its products through its own global direct sales and product support organization. For more information, visit B/E's website at http://www.beaerospace.com.
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