U.S. Air Force to Take Delivery of Ultra-Long Range Gulfstream V Aircraft Later This Month.

FARNBOROUGH, U.K.--(BUSINESS WIRE)--Sept. 8, 1998--

Delivery Will Be First of Three Aircraft Under Firm Contract

Gulfstream Aerospace Corporation (NYSE: GAC) today announced that the United States Air Force will take delivery of its first outfitted Gulfstream V ultra-long range business jet by the end of September.

Assigned to the 89th Airlift Wing - commonly referred to as the Special Air Missions - the aircraft (designated the C-37A) will be based at Andrews Air Force Base near Washington, D.C. and will be used to provide worldwide transportation for the cabinet, members of Congress, senior government officials and dignitaries. The aircraft could also be used to fly the President, if needed.

"We are pleased to continue our legacy of providing the U.S. military with high-performance aircraft and are honored to have the Gulfstream V join the distinguished ranks of the 89th Air Wing," said Bill Boisture, president and chief operating officer, Gulfstream Aircraft Incorporated. "The Gulfstream V - the ultra-long range large cabin jet currently in operational service - offers the Air Force versatility, flexibility and reliability in meeting its special mission transportation needs."

The first Gulfstream aircraft entered military service in 1967 when the U.S. Navy and Marines acquired eight Gulfstream I aircraft. In 1983, Gulfstream aircraft were inducted into service with the U.S. Air Force's 89th Airlift Wing, a distinction shared by few other airframe manufacturers. Forty Gulfstream aircraft are currently in U.S. government service in a variety of special mission roles. Outside the U.S., 38 governments have owned or currently operate Gulfstream aircraft.

Purchased as part of the VC-X program to replace the aging fleet of Boeing 707 aircraft (C-137), the Gulfstream V aircraft (C-37A) expands the mission capability and modernizes the fleet of the 89th Airlift Wing. The C-37A will join four larger airplanes to provide an optimum mix of air transportation for the Presidential Wing.

The Gulfstream V's worldwide operational capability, high speed, and ability to operate for extended periods of time from remote locations without outside assistance, enhances the Air Force's support of national priority transportation requirements. Modified to meet the unique communications needs of U.S. government leaders, the C-37A will be capable of flying 5,300 nautical miles at speeds up to Mach .885 and altitudes up to 51,000 feet. This compares with a 6,500 nautical mile range for a Gulfstream V typically outfitted for corporate use. For the first time, the 89th Airlift Wing can fly non-stop from Washington, D.C. to cities such as Moscow, Kuwait City and Buenos Aires with business-type aircraft. The C-37A provides highly efficient and cost-effective transportation in a productive, office-like environment, allowing government officials to conduct business while en route.

In April 1997, the U.S. Air Force executed a contract for the purchase of two Gulfstream V aircraft with an option to purchase four additional aircraft, under the auspices of the VC-X program. The VC-X Program has been announced as a Hammer Award Winner for its streamlined acquisition approach. In March 1998, the Air Force added one option for the purchase of a third Gulfstream V aircraft for the U.S. Army. Gulfstream will provide technical and logistic support, spare parts and overhaul services to the Air Force for up to 10 years.

The Gulfstream V is the world's first ultra-long range, large cabin business jet. The aircraft has set 55 world and national records for speed, distance, altitude, time-to-climb and payload carrying capability since receiving Federal Aviation Administration certification in April 1997. In May, Gulfstream received aviation's most prestigious award - the Robert J. Collier Trophy - from the National Aeronautical Association for the Gulfstream V.

Gulfstream Aerospace Corporation is the leading designer, developer, manufacturer and marketer of the world's most technologically advanced intercontinental business jet aircraft. The Company has produced more than 1,000 aircraft for customers around the world since 1958. Gulfstream offers a range of aircraft products and services to meet the aviation needs of its customers, including the Gulfstream IV-SP(R), the ultra-long range Gulfstream V(R), Gulfstream Shares(R), Gulfstream Financial Services, Gulfstream Pre-Owned Aircraft Sales, Gulfstream Charter ServicesSM, Gulfstream Management ServicesSM , Gulfstream ServiceCareSM and Gulfstream LeaseSM. In 1997, Gulfstream reported revenues of $1.9 billion. The company employs approximately 7,300 people at eight locations. Gulfstream Aircraft, Inc. is the sales and marketing subsidiary of Gulfstream Aerospace Corporation.

CONTACT: Gulfstream Corporate Communications

Tricia Bergeron, 912/965-3700