BBA Aviation and Gulfstream Aerospace Announce Strategic Acquisitions.

Business Editors

ORLANDO, Fla. & SAVANNAH, Ga.--(BUSINESS WIRE)--Jan. 16, 2001

Agreements Expand Gulfstream's Aircraft Service Capacity and BBA's

Dallas Airmotive Engine Services Operations

BBA Aviation and Gulfstream Aerospace Corporation today announced they have signed definitive agreements for the purchase of specific aftermarket aircraft and engine service businesses.

The deals also include a commitment by the companies to enter into a cooperative marketing agreement.

Under the terms of separate purchase agreements, BBA will acquire Gulfstream's engine overhaul and repair business operations in Dallas, TX and Gulfstream will purchase BBA's Regional Maintenance Centers in Dallas, Las Vegas, Minneapolis and West Palm Beach. The transactions are subject to applicable regulatory approvals. Closing of the transactions is expected to take place before the second quarter of 2001.

"This agreement strengthens the aftermarket service businesses of both Gulfstream and BBA," said Bill Boisture, Gulfstream's president and chief operating officer. "It improves our competitiveness and results in a winning deal for both companies and our respective customers."

"We are extremely pleased and excited to establish this relationship with an acknowledged industry leader like Gulfstream," said Bruce Van Allen, president and chief executive officer for BBA Aviation North America. "Gulfstream's strong commitment to setting the industry standard for aftermarket aircraft support is commensurate with BBA's goal of providing our network customers with the highest quality services in a convenient, one-stop format."

The Gulfstream engine overhaul and repair business will become part of BBA's widely respected Dallas Airmotive engine services subsidiary. The facility provides factory-authorized service for the popular Honeywell TFE731, ALF502, ATF3, CFE738 and 36-100 series engines and Auxiliary Power Units (APUs), Sundstrand APS 500 series APUs and the General Electric CF34 series engine. The operating unit is an industry leader in TFE731 aftermarket services. The net transaction cost to BBA is US $43 million.

"The addition of the new engine authorizations and support capabilities at Dallas Airmotive will enable us to significantly expand both the range and scope of services we provide to our customers," BBA's Van Allen said.

The Regional Maintenance Centers will now operate as Gulfstream facilities. In addition to providing factory authorized service for Gulfstream aircraft, the centers will also provide a wide range of maintenance, avionics, refurbishment and spares support for Hawker, Challenger, Falcon and other turbine-powered aircraft.

"As the Gulfstream fleet grows and as our non-Gulfstream maintenance business grows, it is important that we provide additional service capacity and convenient locations for our customers," said Larry Flynn, senior vice president of aircraft services. "Last year we upgraded our facilities in Savannah and Brunswick. This year, we're adding service locations in Las Vegas, Minneapolis, and West Palm Beach and additional capacity in Dallas."

BBA Aviation and Gulfstream also will establish a long-term marketing agreement. It is designed to fully develop the synergies between the companies and maximize customer benefit throughout BBA's worldwide aviation services network. Under the terms of the agreement, Gulfstream will be a preferred supplier to Dallas Airmotive for engine removal, reinstallation and related services. The companies will also cooperatively market their respective engine and aircraft support capabilities. New Gulfstream IV-SP, Gulfstream V and Gulfstream V-SP aircraft will receive a discount off the retail price of Jet A fuel at BBA's U.S. Signature Flight Support locations for one year following delivery of their aircraft.

BBA Group, PLC, is a publicly held corporation traded on the London stock exchange. The Group's companies are engaged in providing products and services to the specialty materials and aviation industries. BBA Aviation, a division of BBA Group, PLC, serves the world's business aviation, regional airline, helicopter and commercial aviation markets through its primary operating companies and their subsidiaries that include: Dallas Airmotive; Signature Flight Support; Signature Combs Aircraft Sales; International Turbine Service; APPH Group; Texstars; Ozone Industries; H+S Aviation; Precision Avionics and Instruments; Oxford Aviation and Signature Aircraft Engineering.

Each of these companies is an acknowledged leader in its respective field and allows BBA Aviation the ability to offer customers a wide range of capabilities and support of the highest caliber, including turbine engine overhaul and repair; pilot and technician training services; airframe and avionics maintenance; flight support services; landing gear manufacture, maintenance and repair; aircraft transparencies; and aircraft sales and charter. Through a strategy of ongoing investment in personnel, facilities and service enhancements, BBA Aviation is dedicated to establishing a tradition of total support, exceptional service and outstanding shareholder value for customers and investors worldwide.

Gulfstream, a wholly owned subsidiary of General Dynamics Corporation (NYSE: GD), designs, develops, manufactures and markets the world's most technologically advanced intercontinental business jet aircraft. The company has produced more than 1,200 aircraft for customers around the world since 1958. To meet the aviation needs of its customers, Gulfstream offers a full range of aircraft products and services, including the Gulfstream IV-SP(R), the ultra-long range Gulfstream V(R) and new Gulfstream V-SP(R), Gulfstream Shares(R), Gulfstream Financial Services, Gulfstream Lease(R), Gulfstream Pre-Owned Aircraft Sales(R), Gulfstream Charter Services(R), Gulfstream Management Services(R) and Gulfstream ServiceCare(R). The company employs 8,200 people at eight locations. Our website at www.gulfstream.com contains photos of Gulfstream aircraft and related information.

General Dynamics, headquartered in Falls Church, Va., has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation. The corporation employs approximately 44,000 people worldwide and has annualized sales of approximately $10 billion. More information about the company can be found at www.generaldynamics.com.