News Release

Gulfstream Reports Record Aircraft Sales In 2000
New Gulfstream Aircraft Orders Reach 82 Units for the Year Sales of 27 Gulfstream V-SPs Mark Best Product Launch in Company History

Savannah, Ga., Jan. 25, 2001 -- Gulfstream Aerospace Corporation, a wholly owned subsidiary of General Dynamics (NYSE:GD), recorded sales of 82 aircraft in 2000, setting an all-time mark for retail sales. The 2000 sales figures include 27 orders for the next-generation Gulfstream, the GV-SP. The successful GV-SP sales launch has resulted in program deliveries being sold out through mid-2004.

"From our record aircraft sales mark to our tremendous growth in service, Gulfstream had an outstanding 2000," said Bill Boisture, president and chief operating officer for Gulfstream. "We are also extremely gratified that the new GV-SP is being well received in the marketplace. It will be a great airplane and the ultra-long range business aircraft market is anxious for it."

Gulfstream recorded sales of 35 GIV-SPs and 20 GVs, in addition to the highly successful GV-SP product launch. The company also produced and completed in excess of 70 aircraft in 2000. At year-end, Gulfstream's order backlog reached $3.5 billion.

"All sales divisions at Gulfstream exceeded their goals for the year," said Boisture. "We had our best international sales year ever and a highly successful year in military sales with six aircraft sold. Gulfstream continues to prove that it is the leader in the large-cabin, long and ultra-long range business aircraft markets."

The Gulfstream V in-service fleet now exceeds 100 aircraft. In its four years of service, the Gulfstream V has established itself as the world's finest ultra-long-range business jet and has changed the parameters of world travel.

Fully certified in 1997, the Gulfstream V is the world's most technologically advanced intercontinental business jet aircraft. Capable of flying 6,500 nautical miles at speeds up to Mach .885 and a maximum cruise altitude up to 51,000 feet, the Gulfstream V has outdistanced the competition. The GV fleet has exceeded 80,000 flight hours with a dispatch reliability of 99%.

The new Gulfstream V-SP program was announced last October. The aircraft will offer greater range, the largest cabin area in the ultra-long range business aircraft class, additional baggage volume, a greater weight allowance and the most advanced avionics suite in the industry. Rapid progress is being made in its development program and the first flight of the aircraft is on target for the fourth quarter of 2001.

Gulfstream's government sales in 2000 were highlighted by a $477 million lease and maintenance agreement with the U.S. government for five C-37A aircraft. The Gulfstream GV is designated C-37A by the U.S. government. The Multi-Year Aircraft Lease Pilot program will supply additional aircraft for the Department of Defense regional Commander-in-Chief (CINC) mission and maintenance support services for up to 10 years.

Gulfstream's service and refurbishment businesses were boosted in 2000 by expansions at both the Savannah and Brunswick facilities. A $3 million state-of-the-art completions and service hangar was opened in Brunswick and the $5.5 million refurbishment and completions support facility in Savannah significantly enhanced Gulfstream's refurbishment, completion and service support capabilities. Gulfstream announced last week a further expansion of its service business with acquisition of BBA Aviation's Regional Maintenance Centers. The maintenance facilities, located in Dallas, Las Vegas, Minneapolis and West Palm Beach, will add 160,000 square-feet of hangar space that provides Gulfstream with an additional 20-30 aircraft service positions for Gulfstream, Hawker, Challenger, Falcon and other turbine-powered aircraft customers.