HEICO Reports Record Quarterly Sales and Operating Income in Third Quarter; 49% Increase in Operating Income on 24% Increase in Net Sales

Operating income was up 49% to a record $11,749,000 for the thirdquarter of fiscal 2005 from $7,870,000 for the third quarter of fiscal2004 and up 41% to a record $31,843,000 for the first nine months offiscal 2005 from $22,615,000 for the first nine months of fiscal 2004.

Net income for the third quarter of fiscal 2005 was $6,046,000, or23 cents per diluted share, versus $8,115,000, or 32 cents per dilutedshare, in the third quarter of fiscal 2004. Fiscal 2004 third quarternet income included one-time income of $4.0 million (16 cents perdiluted share) in proceeds from a key-person life insurance policy.Net income for the first nine months of fiscal 2005 increased 5% to$16,187,000, or 62 cents per diluted share, from $15,464,000, or 60cents per diluted share, in the first nine months of fiscal 2004,which included the one-time $4.0 million (16 cents per diluted share)in life insurance proceeds.

(NOTE: HEICO has two classes of common stock traded on the NYSE.Both classes, the Class A Common Stock (HEI.A) and the Common Stock(HEI), are virtually identical in all economic respects. The onlydifference between the share classes is the voting rights. The Class ACommon Stock (HEI.A) receives 1/10 vote per share and the Common Stock(HEI) receives one vote per share.)

Laurans A. Mendelson, HEICO's Chairman, President & ChiefExecutive Officer, remarked, "We are extremely pleased to reportrecord quarterly net sales and operating income for the secondconsecutive quarter. Both our Flight Support Group and our ElectronicTechnologies Group reported increased net sales of 25% and 21%,respectively, over the third quarter of fiscal 2004. All the salesincrease within the Flight Support Group was organic growth,reflecting the continued recovery in aftermarket demand within thecommercial airline industry, as well as our continued success in thedevelopment of new products and services for our customers. The salesincrease within our Electronic Technologies Group principally reflectsstrong results from two strategic acquisitions made earlier in fiscal2005.

"Operating income of our Flight Support Group increased 74% to$10.5 million for the third quarter of fiscal 2005 up from $6.0million for the third quarter of fiscal 2004 and increased 55% to$26.9 million for the first nine months of fiscal 2005 up from $17.3million for the first nine months of fiscal 2004. The increase inoperating income of the Flight Support Group for the third quarter offiscal 2005 and the first nine months of fiscal 2005 reflects both theincrease in net sales and higher operating margins resultingprincipally from improved operating efficiencies. Operating margins ofthe Flight Support Group improved to 20.8% in the third quarter offiscal 2005 from 15.0% in the third quarter of fiscal 2004 andimproved to 19.4% in the first nine months of fiscal 2005 from 15.5%for the first nine months of fiscal 2004.

"Operating income of our Electronic Technologies Group increased11% to $3.8 million for the third quarter of fiscal 2005 up from $3.4million for the third quarter of fiscal 2004 and increased 9% to $10.5million for the first nine months of fiscal 2005 up from $9.6 millionfor the first nine months of fiscal 2004. Operating margins of theElectronic Technologies Group were 20.1% in the third quarter offiscal 2005 and 19.2% in the first nine months of fiscal 2005, downslightly from 21.8% in the third quarter of fiscal 2004 and 22.5% forthe first nine months of fiscal 2004, due principally to a lessfavorable product sales mix. Based on the current backlog within ourElectronic Technologies Group, we expect operating margins for thefull fiscal 2005 year to approximate 20%.

"Our consolidated operating margins improved to 17.0% in the thirdquarter of fiscal 2005 from 14.1% in the third quarter of fiscal 2004and to 16.5% for the first nine months of fiscal 2005 from 14.6% forthe first nine months of fiscal 2004.

"Cash flow from operating activities for the first nine months offiscal 2005 totaled $21.0 million versus $32.6 million in the firstnine months of fiscal 2004 principally due to a higher investment ininventories required to meet increased sales demand and longer leadtimes for certain raw materials, as well as increased accountsreceivable due to the higher sales levels. In light of these requiredinvestments in working capital, we are revising our fiscal 2005targeted cash flow from operating activities to a range of $30 to $35million. Our net capital expenditure budget for fiscal 2005 remains inthe range of $6 to $8 million, net of $3.5 million in proceeds wereceived from the sale of an excess facility.

"Based on current market conditions, we continue to target fiscal2005 consolidated sales of approximately $255 to $260 million anddiluted net income per share in the range of $.84 to $.86. The netsales and earnings targets exclude the impact of additionalacquisitions, if any.

"As we look to the remainder of fiscal 2005, fiscal 2006 andbeyond, we believe the increasing product demand from the commercialairline industry, our commitment to develop new products and services,our strong financial position and select acquisition opportunitiesprovide the foundation for long-term growth in sales and earnings."

As previously announced, HEICO will hold a conference call onTuesday, August 30, 2005 at 9:00 a.m. Eastern Daylight Time to discussits third quarter results. Individuals wishing to participate in theconference call should dial: U.S./Canada/International/Local785-832-1508, wait for the conference operator and provide theoperator with the "Verbal" Passcode/Conference ID 7HEICO. A digitalreplay will be available one hour after the completion of theconference for 14 days. To access, dial:U.S./Canada/International/Local 402-220-2569 and enterPasscode/Conference ID 7HEICO.

There are currently approximately 14.5 million shares of HEICO'sClass A Common Stock (HEI.A) outstanding and 10.1 million shares ofHEICO's Common Stock (HEI) outstanding. The stock symbols for HEICO'stwo classes of common stock on most web sites are HEI.A and HEI.However, some web sites change HEICO's Class A Common Stock stocksymbol (HEI.A) to HEI/A or HEIa.

HEICO Corporation is engaged primarily in certain niche segmentsof the aviation, defense, space and electronics industries through itsHollywood, FL-based HEICO Aerospace Holdings Corp. subsidiary and itsMiami, FL-based HEICO Electronic Technologies Corp. subsidiary.HEICO's customers include a majority of the world's airlines andairmotives as well as numerous defense and space contractors andmilitary agencies worldwide in addition to telecommunications,electronics and medical equipment manufacturers. For more informationabout HEICO, please visit our web site at http://www.heico.com.

Certain statements in this press release constituteforward-looking statements, which are subject to risks, uncertaintiesand contingencies. HEICO's actual results may differ materially fromthose expressed in or implied by those forward-looking statements as aresult of factors including, but not limited to: lower demand forcommercial air travel or airline fleet changes, which could causelower demand for our goods and services; product specification costsand requirements, which could cause an increase to our costs tocomplete contracts; governmental and regulatory demands, exportpolicies and restrictions, reductions in defense or space spending byU.S. and/or foreign customers, or competition from existing and newcompetitors, which could reduce our sales; HEICO's ability tointroduce new products and product pricing levels, which could reduceour sales or sales growth; HEICO's ability to make acquisitions andachieve operating synergies from acquired businesses, customer creditrisk, interest rates and economic conditions within and outside of theaviation, defense, space and electronics industries, which couldnegatively impact our costs and revenues; and HEICO's ability tomaintain effective internal controls, which could adversely affect ourbusiness and the market price of our common stock. Parties receivingthis material are encouraged to review all of HEICO's filings with theSecurities and Exchange Commission, including, but not limited tofilings on Form 10-K, Form 10-Q and Form 8-K. We undertake noobligation to publicly update or revise any forward-looking statement,whether as a result of new information, future events or otherwise.
HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended July 31,
---------------------------
2005 2004
------------ ------------
Net sales $69,169,000 $55,820,000
Cost of sales 43,170,000 36,204,000
Selling, general and administrative
expenses 14,250,000 11,746,000
------------ ------------
Operating income 11,749,000 7,870,000 (1)
Interest expense (252,000) (250,000)
Interest and other income 341,000 93,000
Life insurance proceeds --- 5,000,000 (2)
------------ ------------
Income before income taxes and
minority interests 11,838,000 12,713,000
Income tax expense 4,294,000 2,591,000
------------ ------------
Income before minority interests 7,544,000 10,122,000
Minority interests' share of income 1,498,000 2,007,000
------------ ------------
Net income $6,046,000 $8,115,000 (1)(2)
============ ============

Net income per share:
Basic $.25 $.34 (1)(2)
Diluted $.23 $.32 (1)(2)

Weighted average number of common
shares outstanding:
Basic 24,500,372 24,165,595
Diluted 26,368,520 25,755,455


Three Months Ended July 31,
---------------------------
2005 2004
------------ ------------
Operating segment information: -
Net sales:
Flight Support Group $50,146,000 $40,086,000
Electronic Technologies Group 19,047,000 15,743,000
Intersegment sales (24,000) (9,000)
------------ ------------
$69,169,000 $55,820,000
============ ============

Operating income:
Flight Support Group $10,454,000 $6,006,000 (1)
Electronic Technologies Group 3,820,000 3,428,000
Other, primarily corporate (2,525,000)(3) (1,564,000)
------------ ------------
$11,749,000 $7,870,000
============ ============
HEICO CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)

Nine Months Ended July 31,
-----------------------------
2005 2004
------------- -------------
Net sales $193,123,000 $154,764,000
Cost of sales 121,799,000 100,898,000
Selling, general and
administrative expenses 39,481,000 31,251,000
------------- -------------
Operating income 31,843,000 22,615,000 (1)
Interest expense (785,000) (882,000)
Interest and other income 421,000 95,000
Life insurance proceeds --- 5,000,000 (2)
------------- -------------
Income before income taxes and
minority interests 31,479,000 26,828,000
Income tax expense 11,430,000 7,447,000
------------- -------------
Income before minority interests 20,049,000 19,381,000
Minority interests' share of
income 3,862,000 3,917,000
------------- -------------
Net income $16,187,000 $15,464,000 (1)(2)
============= =============

Net income per share:
Basic $.66 $.64 (1)(2)
Diluted $.62 $.60 (1)(2)

Weighted average number of common
shares outstanding:
Basic 24,425,235 23,986,315
Diluted 26,280,695 25,709,844


Nine Months Ended July 31,
-----------------------------
2005 2004
------------- -------------
Operating segment information: -
Net sales:
Flight Support Group $138,462,000 $112,053,000
Electronic Technologies Group 54,808,000 42,825,000
Intersegment sales (147,000) (114,000)
------------- -------------
$193,123,000 $154,764,000
============= =============

Operating income:
Flight Support Group $26,921,000 $17,344,000 (1)
Electronic Technologies Group 10,501,000 9,615,000
Other, primarily corporate (5,579,000)(3) (4,344,000)
------------- -------------
$31,843,000 $22,615,000
============= =============
HEICO CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)

July 31, 2005 October 31, 2004
---------------- ----------------
Cash and cash equivalents $2,635,000 $214,000
Accounts receivable, net 41,666,000 36,798,000
Inventories 58,873,000 48,020,000
Prepaid expenses, deferred taxes and
other current assets 9,991,000 8,880,000
---------------- ----------------
Total current assets 113,165,000 93,912,000
Property, plant and equipment, net 42,482,000 40,558,000
Goodwill 232,349,000 216,674,000
Other assets 11,000,000 13,111,000
---------------- ----------------
Total assets $398,996,000 $364,255,000
================ ================

Current maturities of long-term debt $58,000 $58,000
Other current liabilities 35,751,000 31,984,000
---------------- ----------------
Total current liabilities 35,809,000 32,042,000
Long-term debt, net of current
maturities 22,028,000 18,071,000
Deferred income taxes 19,923,000 16,262,000
Other non-current liabilities 6,672,000 5,834,000
---------------- ----------------
Total liabilities 84,432,000 72,209,000
Minority interests in consolidated
subsidiaries 48,033,000 44,644,000
Shareholders' equity 266,531,000 247,402,000
---------------- ----------------
Total liabilities and
shareholders' equity $398,996,000 $364,255,000
================ ================


Condensed Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended July 31,
---------------------------------
2005 2004
---------------- ----------------
Operating Activities:
Net income $16,187,000 $15,464,000
Depreciation and amortization 5,267,000 5,126,000
Deferred income tax provision 2,914,000 3,654,000
Minority interests' share of
income 3,862,000 3,917,000
Tax benefit from stock option
exercises 2,826,000 1,252,000
Increase in accounts receivable (2,760,000) (897,000)
(Increase) decrease in inventories (8,833,000) 2,459,000
Other 1,501,000 1,629,000
---------------- ----------------
Net cash provided by operating
activities 20,964,000 32,604,000
---------------- ----------------
Investing Activities:
Acquisitions and related costs,
net of cash acquired (19,043,000) (28,064,000)
Capital expenditures (6,804,000) (4,253,000)
Proceeds from sale of building
held for sale 3,520,000 -
Other 224,000 (348,000)
---------------- ----------------
Net cash used in investing
activities (22,103,000) (32,665,000)
---------------- ----------------
Financing Activities:
Borrowings on revolving credit
facility, net 4,000,000 4,000,000
Cash dividends paid (1,224,000) (1,201,000)
Proceeds from stock option
exercises 1,338,000 712,000
Other (554,000) 499,000
---------------- ----------------
Net cash provided by financing
activities 3,560,000 4,010,000
---------------- ----------------
Net increase in cash and cash
equivalents 2,421,000 3,949,000
Cash and cash equivalents at
beginning of year 214,000 4,321,000
---------------- ----------------
Cash and cash equivalents at end of
period $2,635,000 $8,270,000
================ ================
HEICO CORPORATION

Footnotes to Condensed Consolidated Statements of Operations
(Unaudited)

(1) Operating income was reduced in fiscal 2004 by an aggregate of
$600,000 in restructuring expenses recorded by certain
subsidiaries of the Flight Support Group that provide repair and
overhaul services including $350,000 recorded in cost of sales and
$250,000 recorded in selling, general and administrative expenses.
The restructuring expenses decreased net income by $301,000, or
$.01 per basic and diluted share.

(2) Represents proceeds from a $5.0 million key-person life insurance
policy maintained by a subsidiary of the Flight Support Group. The
minority interests' share of this income totaled $1.0 million,
which is reported as a component of minority interests' share of
income. Accordingly, the life insurance proceeds increased fiscal
2004 net income by $4.0 million, or $.17 per basic and $.16 per
diluted share.

(3) Fiscal 2005 results reflect increased costs to comply with the
Sarbanes-Oxley Act of 2002 and higher accrued performance awards.