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THEODORE FORSTMANN NAMED CHAIRMAN OF GULFSTREAM AEROSPACE; ROGER PENSKE AND PAUL STERN JOIN EXECUTIVE COMMITTEE OF GULFSTREAM BOARD

 SAVANNAH, Ga., Nov. 16 /PRNewswire/ -- Gulfstream Aerospace Corporation announced today that Theodore J. Forstmann, senior partner of Forstmann Little, a private investment firm that acquired Gulfstream in 1990, has been named Chairman of the Board. Forstmann replaces William C. Lowe, Gulfstream's Chairman and Chief Executive Officer since 1991, who has resigned. Fred Breidenbach, who joined Gulfstream in April as President and Chief Operating Officer, will continue to run the company on a day-to-day basis.
 Gulfstream also announced that Roger Penske, Chairman and CEO of Penske Corp., and Paul G. Stern, former Chairman and CEO of Northern Telecom and a special limited partner of Forstmann Little, have joined the Executive Committee of the Gulfstream Board of Directors.
 In addition, Gulfstream announced that Forstmann Little will convert $450 million of its own Gulfstream subordinated debt into preferred stock, giving Gulfstream approximately $650 million in total equity capitalization and an investment grade balance sheet. This additional financial strength will support full implementation of Gulfstream's extraordinary G-V program, which will bring the world's longest-range business jet aircraft to market in 1996.
 "Gulfstream is now perfectly positioned to execute its long-term growth strategy and take full advantage of its market leadership," said Forstmann. "We are irrevocably committed to the G-V, which will be the best corporate jet ever made. The G-V will be able to fly non-stop from New York to Tokyo. Other non-stop city pairs -- such as London to Singapore, Washington to Riyadh, Los Angeles to Beijing, and Mexico City to any European destination -- will also be achievable. Forstmann Little has committed its capital, customer contracts and non-refundable deposits are in hand, and production work has already begun. The G-V, the only launched ultralong-range business jet, is on budget and on schedule to fly in 1995 and begin customer deliveries in 1996. The entire 1996 production run is already sold out and we have a backlog of orders approaching $1 billion for 1996 and 1997 deliveries."
 The ultra-long-range G-V will be powered by a new BR710 engine developed by an alliance of BMW and Rolls-Royce. Other key systems will be made by revenue sharing partners Vought Aircraft & Fokker BV, as well as Honeywell. Breidenbach stated, "I'm confident that the G-V will exceed its guarantees with respect to range and payload. Gulfstream's stronger financial position also supports continued long-term production of our very successful 'wide-inside' Gulfstream IV-SP. We will continue to be the technological and performance leader of the industry with premier products."
 Based in Savannah, Ga., Gulfstream Aerospace Corporation is the only U.S. manufacturer of large corporate jets. It operates service and completion centers in Savannah and Long Beach, Calif. Gulfstream Aerospace Technologies is based in Oklahoma City.
 Based in New York, Forstmann Little & Co. is a private investment firm that has invested a total of approximately $10 billion in 18 acquisitions since it was founded in 1978. Gulfstream was acquired by Forstmann Little from Chrysler in 1990.
 -0- 11/16/93
 /CONTACT: George Sard or Anna Cordasco of Sard Verbinnen & Co., 212-687-8080/


CO: Gulfstream Aerospace Corporation ST: Georgia IN: AIR SU: PER

LG-MP -- NY029 -- 4939 11/16/93 09:34 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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