News Release

GULFSTREAM DELIVERS FIRST OF FIVE C-37A AIRCRAFT TO U.S. AIR FORCE
Specially Configured Gulfstream V Will Transport High-Level Government, Military Officials

Savannah, Georgia, Aug. 28, 2001 - Gulfstream Aerospace Corporation, a wholly owned subsidiary of General Dynamics (NYSE:GD), has delivered the first of five Gulfstream C-37A aircraft to the U.S. Air Force as part of a $477 million lease and support service agreement.

The special mission C-37A aircraft departed Savannah International Airport July 25 for MacDill Air Force Base in Tampa, Florida, where it will be stationed. The C-37A, the U.S. military designation for the Gulfstream V, the world's first ultra-long range business jet, was piloted by Gen. Charles T. Robertson, commanding general, Transportation Command and Air Mobility Command.

"The Gulfstream V, configured as a C-37A, is the optimal size to provide fast, safe and reliable worldwide transportation for members of the Cabinet, the Congress, and senior government and military officials," said Bill Boisture, Gulfstream's president and chief operating officer. "Replacing older, costlier transports with a modern fleet of C-37As will significantly reduce operating and support costs for the CINC support mission."

The C-37A aircraft was delivered at the Gulfstream facility in Savannah. When configured to carry 14 passengers, a crew of five and communications equipment, the aircraft has a nonstop range of up to 5,300 nautical miles.

This aircraft is the first to be delivered and supported under a multi-year Aircraft Lease Program awarded to Gulfstream late last year. When deliveries are complete, this fleet of C-37A aircraft will assist Department of Defense Commanders-in-Chief (CINCs) and other senior government officials in accomplishing their missions. Military leaders require the capability to deploy by air transportation immediately on matters of national security in response to changing world events. C-37A aircraft must be able to fly into and out of civil and military airfields during peace and war.

The lease and support service agreement provides the Air Force an excellent opportunity for periodic modernization of this portion of its fleet at very affordable costs in the future.

The new C-37As are replacing aging, airline-type CINC aircraft that are 40 years old on average. The older airplanes were experiencing poor reliability and operational availability, and were not considered candidates for modernization. Leasing the
C-37A fleet will enable the Air Force to save approximately $400 million through cost-avoidance and reduced operating and maintenance costs.

The second C-37A is scheduled for delivery in August. The third is scheduled for March 2002, the fourth for June 2002, and the fifth for September 2002, a year ahead of Air Force delivery requirements. As part of the agreement, Gulfstream will provide full maintenance support for the five new aircraft.

Three of the C-37A aircraft will be stationed at MacDill Air Force Base, the fourth will be stationed at Hickam Air Force Base in Hawaii, and the fifth will be assigned to an air base at Chievres, Belgium.

"The Gulfstreams in government service are performing exactly as expected," said Monroe "Buddy" Sams, Gulfstream's senior vice president, government sales and marketing. "They're equipped with the latest avionics and safety features, and they're capable of meeting stringent noise and emissions requirements anywhere in the world.

"The new C-37As are a more suitable choice for the CINC support mission," Sams added. "They provide state-of-the-art communications to allow the CINCs to maintain constant command and control."

The Gulfstream V, winner of the Robert J. Collier Trophy, aviation's most prestigious award, offers advanced aerodynamic design and BMW Rolls-Royce BR-710 engines.
The technologically advanced Gulfstream V, with its range of 6,500 nautical miles, is ideally suited to military surveillance applications. Its range and altitude capability enable the aircraft to remain on-station longer and at higher altitudes than most aircraft.

Gulfstream has been producing the most capable and cost-effective, special-missions aircraft for more than 35 years. Gulfstream aircraft are serving the special-missions needs of more than 30 world governments and military services today. Some 56 Gulfstream IV and Gulfstream IV-SP aircraft are in service to governments worldwide. The Japanese Defense Agency ordered its fourth Gulfstream IV-MPA (Multi-Purpose Aircraft) recently. The U.S. government also operates a fleet of C-20 aircraft, based on the Gulfstream III and Gulfstream IV, in a variety of VIP and special mission roles.

 

NOTE TO EDITOR

Gulfstream Aerospace Corporation, a wholly owned subsidiary of General Dynamics (NYSE:GD), designs, develops, manufactures and markets the world's most technologically advanced intercontinental business jet aircraft. Gulfstream 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 100®, Gulfstream 200®, Gulfstream IV-SP®, the ultra-long range Gulfstream V® and Gulfstream V-SP®, Gulfstream Shares®, Gulfstream Financial Services®, Gulfstream Lease®, Gulfstream Pre-Owned Aircraft Sales®, Gulfstream Charter Services®, Gulfstream Management Services® and Gulfstream ServiceCare®. The company employs more than 8,750 people at eight locations. We invite you to visit our Web site at www.gulfstream.com for photos of Gulfstream aircraft and related information.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 49,000 people and anticipates 2001 sales of approximately $11.5 billion. The company has leading market positions in business aviation, information systems, shipbuilding and marine systems, and land and amphibious combat systems. More information about the company can be found at www.generaldynamics.com.