EXHIBIT 99.1

                                

     CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR"
     PROVISIONS OF THE PRIVATE SECURITIES REFORM ACT OF 1995
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     Gulfstream Aerospace Corporation (the "Company" or
"Gulfstream") cautions readers that the important factors set
forth below, as well as factors discussed in other documents
filed by the Company with the Securities and Exchange Commission
(the "SEC"), among others, could cause the Company's actual
results to differ materially from statements contained in this
report, future filings by the Company with the SEC, the Company's
press releases and oral statements made by or on behalf of the
Company.  The words "estimate", "project", "anticipate",
"expect", "intend", "believe", and similar expressions are
intended to identify forward looking statements.

GULFSTREAM V CERTIFICATION AND PRODUCTION

     The Gulfstream V is a new aircraft product that is still in
the FAA certification process.  Neither the Gulfstream V nor its
BMW Rolls Royce BR710 engines have yet been delivered to
customers.  While the Company believes that the Gulfstream V is
currently on schedule to obtain FAA certification in the last
quarter of 1996, no assurance can be given that certification
will occur as scheduled or that changes in FAA policies or
procedures will not delay certification.

     An extended delay in the FAA certification process may have
a near-term adverse effect on the Company's results of
operations.  In addition, while the Company generally receives
non-refundable deposits in connection with each order, an order
may be cancelled (and the deposit returned) under certain
conditions if the delivery of the Gulfstream V is delayed more
than six months after a customer's scheduled delivery date.  An
extended delay in the FAA certification process could cause an
increase in the number of cancellations of orders for Gulfstream
Vs, which could have an adverse effect on the Company's results
of operations.
     In contrast to its historical practice of discontinuing
existing models, the Company will continue to manufacture and
sell Gulfstream IV-SPs at the same time that it manufactures and
sells Gulfstream Vs.  The Company expects to increase its
aircraft production rate in 1997 as compared to its aircraft
production rate in 1996.  No assurance can be given as to the
extent to which the Company can successfully increase its rate of
production.

THE BUSINESS JET AIRCRAFT MARKET

     The Company's principal business is the design, development,
manufacture and marketing of large and ultra-long range business
jet aircraft.  Because of the high unit selling price of its
aircraft products and the availability of commercial airlines and
charters as alternative means of business travel, a downturn in
general economic conditions could result in a reduction in the
orders received by the Company for its new and pre-owned
aircraft.  The Company would not be able to rely on sales of
other products to offset a reduction in sales of its aircraft.
If a potential purchaser is experiencing a business downturn or
is otherwise seeking to limit its capital expenditures, the high
unit selling price of a new Gulfstream aircraft could result in
such potential purchaser deferring its purchase or changing its
operating requirements and electing to purchase a competitor's
lower priced aircraft.  Since the Company relies on the sales of
a relatively small number of high unit selling price new aircraft
to provide approximately 55% to 65% of its revenues, small
decreases in the number of aircraft delivered in any year could
have a material adverse effect on the results of operation for
that year.
     
     The Company believes that its reputation and the exemplary
safety record of its aircraft are important selling points for
new and pre-owned Gulfstream aircraft.  However, if one or a
number of catastrophic events were to occur with the Gulfstream
fleet, Gulfstream's reputation and sales of Gulfstream aircraft
could be adversely affected.
     
     In many cases, the Company has agreed to accept, at the
customer's option, the customer's pre-owned aircraft as a trade-
in in connection with the purchase of a Gulfstream V.  Based on
the current market for pre-owned aircraft, the Company expects to
continue to be able to resell such pre-owned aircraft, and does
not expect to suffer a loss with respect to the possible trade-in
of such aircraft.  However, an increased level of pre-owned
aircraft or changes in the market for pre-owned aircraft may
increase the Company's inventory costs and may result in the
Company receiving lower prices for its pre-owned aircraft.
     
     The market for large cabin business jet aircraft is highly
competitive.  The Gulfstream IV-SP competes in the large cabin
business jet aircraft market segment, principally with Dassault
Aviation S.A. (which has announced that it will merge with
Aerospatiale SA) and Bombardier Inc. ("Bombardier").  The
Gulfstream V competes in the ultra-long range business jet
aircraft market segment, primarily with the Global Express, which
is being marketed by Canadair, a subsidiary of Bombardier, and
which is scheduled for certification at least 12 months after the
anticipated initial delivery of the Gulfstream V.  In addition,
in July 1996, The Boeing Company ("Boeing"), in partnership with
General Electric Co., publicly announced that it intends to begin
to market a version of the Boeing 737 into the ultra-long range
business jet aircraft market segment.  Boeing has indicated that
it expects that this aircraft could be available for delivery in
late 1998 or 1999.  The Company's competitors may have access to
greater resources (including, in certain cases, governmental
subsidies) than are available to the Company.
     
     The Company's ability to compete successfully in the large
business jet and ultra-long range business jet aircraft markets
over the long term requires continued technological and
performance enhancements to Gulfstream aircraft.  No assurance
can be given that the Company's competitors will not be able to
produce aircraft capable of performance comparable or superior to
Gulfstream aircraft in the future.

PURCHASED MATERIALS AND EQUIPMENT
     
     Approximately 70% of the production costs of both the
Gulfstream IV-SP and the Gulfstream V consist of materials and
equipment purchased from other manufacturers.  While the
Company's production activities have never been materially
affected by its inability to obtain components, and while the
Company maintains business interruption insurance in the event
that such a disruption should occur, the failure of the Company's
suppliers to meet the Company's performance specifications,
quality standards, pricing terms or delivery schedules could have
a material adverse impact on the profitability of the Company's
new aircraft sales or the ability of the Company to timely
deliver new aircraft to customers.

POSSIBLE FLUCTUATIONS IN QUARTERLY AND ANNUAL RESULTS
     
     The Company records revenue from the sale of a new "green"
aircraft (i.e., before exterior painting and installation of
customer selected interiors and optional avionics) when that
aircraft is delivered to the customer.  As a result, a delay or
an acceleration in the delivery of new aircraft may affect the
Company's revenues for a particular quarter or year and may make
quarter-to-quarter or year-to-year comparisons difficult.  In
addition, the Company's production schedule may be affected by
many factors, including timing of deliveries by suppliers.

PENDING TAX AUDIT
     
     The Company is involved in a tax audit by the Internal
Revenue Service covering the years ended December 31, 1990 and
1991.  The revenue agent's report includes several proposed
adjustments involving the deductibility of certain compensation
expense and items relating to the capitalization of the Company
as well as the allocation of the purchase price in connection
with the acquisition of the Gulfstream business by certain
partnerships formed by Forstmann Little & Co. (the
"Acquisition"), including the treatment of advance payments with
respect to and the cost of aircraft that were in backlog at the
time of the Acquisition and the amortization of amounts allocated
to intangible assets.  The Company believes that the ultimate
resolution of these issues will not have a material adverse
effect on its financial statements because the financial
statements already reflect what the Company currently believes is
the expected loss of benefit arising from the

resolution of these issues.  However, because the revenue
agent's report is proposing adjustments in amounts materially in
excess of what the Company has reflected in its financial
statements and because it may take several years to resolve the
disputed matters, the ultimate extent of the Company's expected
loss of benefit and liability with respect to these matters
cannot be predicted with certainty and no assurance can be given
that the Company's financial position or results of operations
will not be adversely affected.

LEVERAGE AND DEBT SERVICE
     
     The degree to which the Company is leveraged at a particular
time could have important consequences to the Company, including
the following:  (i) the Company's ability to obtain additional
financing in the future for working capital, capital
expenditures, product development, acquisitions, general
corporate purposes or other purposes may be impaired; (ii) a
portion of the Company's and its subsidiaries' cash flow from
operations must be dedicated to the payment of the principal of
and interest on its indebtedness; (iii) the Company's credit
agreement contains certain restrictive financial and operating
covenants, including, among others, requirements that the Company
satisfy certain financial ratios; (iv) a significant portion of
Gulfstream's borrowings will be at floating rates of interest,
causing Gulfstream to be vulnerable to increases in interest
rates; (v) the Company's degree of leverage may make it more
vulnerable in a downturn in general economic conditions; and (vi)
the Company's financial position may limit its flexibility in
responding to changing business and economic conditions.