Gulfstream Aerospace and Lockheed Martin Team to StudySupersonic Business Jet.

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

Two Aviation Leaders Will Evaluate Technical and Economic Feasibility of SBJ

Gulfstream Aerospace Corporation (NYSE:GAC) and Lockheed Martin Skunk Works (LMSW), a division of Lockheed Martin Corporation (NYSE:LMT), have agreed

"We are excited to team with the world's premier developer of technologically advanced aircraft and systems in this undertaking," said Bill Boisture, president and chief operating officer, Gulfstream Aircraft, Inc. "Lockheed Martin Skunk Works and Gulfstream share a competitive drive to be the best and the first in our respective fields. If the supersonic business jet proves to be a logical step in meeting the needs of business aviation customers, then Gulfstream will likely again be the first to market."

"Lockheed Martin is excited to work with Gulfstream and apply the ingenuity of our Skunk Works unit to this feasibility study," said James A. "Micky" Blackwell, president and chief operating officer, Lockheed Martin Aeronautics Sector. "The Skunk Works' understanding of supersonic aircraft and their creativity in problem-solving will make a strong contribution to the evaluation of the technical and market potential for a Supersonic Business Jet."

The globalization of business and emergence of new markets in far-flung regions, combined with a heightened sensitivity to security and the inability of commercial airlines to satisfy executive travel needs have been key drivers in this growth. Fractional ownership programs have also played a role in expanding the business aviation market. Business aircraft are now considered essential business tools - a view validated by the fact that over 60 percent of Fortune 500 companies operate one or more business aircraft. As a result, Gulfstream has a record level of firm aircraft orders in its backlog, as do several aircraft manufacturers. The large cabin business aircraft market has grown at a compound annual rate of more than six percent since 1992.

Gulfstream recognizes that a successful SBJ must retain the key attributes of today's business jet. In addition to supersonic cruise capability, the SBJ must be able to operate out of key general aviation airports, be able to efficiently fly at subsonic speeds and merge with other air traffic, have an initial cruise altitude capability above other subsonic traffic and be able to fly non-stop Europe to the central United States.

Gulfstream and LMSW defined the initial SBJ requirements as: cruise capability between 1.6 and 2.0 Mach; range capability of more than 4,000 nautical miles; a stand-up cabin with room for eight passengers and three crew; an outfitting allowance typically associated with Gulfstream aircraft; and takeoff noise characteristics compatible with anticipated future community standards. It is expected that the advancement of the program toward the introduction into service of a SBJ would take at least eight to ten years.

Gulfstream and Lockheed Martin Skunk Works are well matched to tackle the challenge of defining a supersonic business jet. For more than 50 years, The Skunk Works has earned a reputation for being the leading edge of technology. Gulfstream is the world leader in the large cabin business jet market with a customer base and product support network that spans the globe. The company also has core competencies in aircraft design, production, outfitting and marketing. In 1997, Gulfstream has introduced the world's first ultra-long range business jet, the Gulfstream V. The Gulfstream V received the prestigious Robert J. Collier Trophy for 1997 from the National Aeronautic Association, recognizing it as the top aeronautical achievement for the year. The Skunk Works has received three Robert J. Collier Trophies.

Headquartered in Bethesda, Maryland, Lockheed Martin is a highly diversified enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. The Corporation's core business spans space, telecommunications, electronics, information and services, aeronautics, energy and systems integration. Employing approximately 170,000 worldwide, Lockheed Martin had 1997 sales surpassing $28 billion.

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