EXHIBIT 99.1


           CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR"
          PROVISIONS OF THE PRIVATE SECURITIES REFORM ACT OF 1995
          -------------------------------------------------------


     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",  "target"  and  similar  expressions  are  intended  to identify
forward looking statements.  In addition, these factors relate specifically
to the  Company's  statements  regarding  earnings  per  share for 1998 and
subsequent years and the assumptions underlying those statements, including
assumptions  regarding  green  aircraft  deliveries,   completions,  margin
improvements, new aircraft sales and backlog stability.

AIRCRAFT PRODUCTION AND COMPLETION

     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 the green  aircraft is delivered to
the customer.  The Company records  revenues from completion  services when
the outfitted  aircraft is delivered to the customer.  The Company plans to
deliver  approximately  60 green  aircraft  in fiscal 1998 and 65 in fiscal
1999,  and  completions  are expected to nearly  double in 1998 compared to
1997. Risks  associated with green  deliveries and completions  include the
following:

          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  a
     disruption  should occur,  the failure of the  Company's  suppliers to
     meet the Company's  performance  specifications,  quality standards or
     delivery  schedules  could  have  a  material  adverse  impact  on the
     Company's delivery schedule.

          Workforce.  The  Company's  ability  to meet its  production  and
     completion  schedules  depends on the  Company  meeting  its needs for
     skilled labor. Although the Company's ability to hire required skilled
     labor  has not to date  adversely  affected  its  ability  to meet its
     production  and completion  schedules,  there can be no assurance that
     this favorable  condition will continue.  In 1996, the Company entered
     into a  5-year  contract  with a  union  representing  certain  of its
     employees at its Oklahoma  Facility.  Although employee  relations are
     generally good, a work stoppage or other labor action could materially
     and adversely affect the Company's production schedule.

          Facilities.   Green  aircraft  are  assembled  at  one  facility.
     Detailed parts and  subassemblies  are  manufactured at two additional
     facilities. Completions are performed at five facilities. Although the
     Company maintains property and business  interruption  insurance,  any
     severe  property  damage  or  other  casualty  loss  at one  of  these
     facilities   could  materially  and  adversely  affect  the  Company's
     delivery schedule.

          Gulfstream  V  Efficiency.  The  Company  expects to become  more
     efficient  at  producing  and  completing  Gulfstream V aircraft as it
     gains more  experience  in this  aircraft  program.  If the Company is
     unable to achieve  anticipated  efficiencies,  its  delivery  schedule
     could be adversely impacted.

          Period-to-Period  Fluctuations.  Since the Company  relies on the
     sales of a  relatively  small  number of high unit  selling  price new
     aircraft to provide the  substantial  portion of its revenues,  even a
     small  decrease in the number of deliveries in any period could have a
     material  adverse  effect on the results of operation for that period.
     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.

MARGIN IMPROVEMENTS

     The  Company  expects  gross  margins  (excluding   inventory  step-up
resulting from the K-C Aviation  acquisition and pre-owned aircraft,  which
are typically sold at break-even levels) to improve from 20% in 1997 to the
mid-20s  by  the  end of  1998.  Risks  associated  with  projected  margin
improvement include the following:

          Gulfstream V Learning Curve.  The Company expects  production and
     completion  costs to fall as the  Company  gains  more  experience  in
     producing and completing Gulfstream V aircraft.  Delays in anticipated
     cost reductions would adversely affect projected margin  improvements.
     If subsequent  improvement is not achieved as quickly or to the extent
     anticipated, the Company may be unable to achieve its margin targets.

          Cost of Materials.  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. Although the Company
     has in place revenue share and long-term supply arrangements that help
     protect  it  against   materials  price  increases,   if  the  Company
     experiences  price  pressure on materials,  margins could be adversely
     affected.

STABILITY OF BACKLOG

     At September 30, 1998, the Company had a backlog of $2.9 billion.  The
Company is currently  selling  outfitted  Gulfstream IV-SPs for delivery in
the first half of 2000 and  outfitted  Gulfstream  Vs for  delivery  in the
second  half of 2000.  Although  the  Company's  revenues  are,  therefore,
essentially  under  contract  for the  foreseeable  future,  the  following
factors could adversely affect the stability of the backlog:

          New  Orders.  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  the  potential  purchaser  deferring  its
     purchase  or  changing  its  operating  requirements  and  electing to
     purchase a  competitor's  lower priced  aircraft.  In  addition,  if a
     significant number of customers resell their purchase  contracts,  the
     Company's  new  order  intake  could  be  adversely  affected.  If the
     Company's new order intake rate varies,  the Company could be required
     to adjust its production rate.

          Production   Delays.   While  the  Company   generally   receives
     non-refundable deposits in connection with each order, an order may be
     canceled (and the deposit  returned)  under certain  conditions if the
     delivery of a  Gulfstream  V aircraft is delayed  more than six months
     after a customer's  scheduled  delivery date. An extended delay in the
     production or completion process could cause an increase in the number
     of cancellations of orders,  which could have an adverse effect on the
     Company's results of operations.

          Business and Economic  Conditions.  Although 75% of the Company's
     backlog consists of North American customers and 43% of North American
     customers  are Fortune 500  companies,  adverse  business and economic
     conditions  could  cause  customers  to  be  unable  or  unwilling  to
     consummate the purchase of an aircraft and could, therefore,  increase
     the number of cancellations experienced by the Company.

YEAR 2000 READINESS

     As part of the  Company's  initiatives,  begun  in 1996,  to  increase
production  rates and co-produce the Gulfstream IV-SP and Gulfstream V, the
Company has, and continues  to,  upgrade and replace  business  systems and
facility  infrastructure.  These  initiatives  help to reduce the potential
impact  of the  Year  2000  date  issue  on the  Company's  operations.  In
addition,  the Company has implemented a Year 2000 Compliance Plan designed
to ensure that all other  hardware,  software,  systems,  and products with
microprocessors  relevant  to the  Company's  business  are  not  adversely
affected by the Year 2000 date issue.

     The Company does not believe that the implementation of this Year 2000
Compliance  Plan will have a  material  effect  on the  Company's  business
operations, financial condition, liquidity or capital resources. Management
of the Company believes it has an effective program in place to address the
Year  2000  issue in a  timely  manner.  As a  component  of the Year  2000
Compliance  Plan, the Company is developing  contingency  plans to mitigate
the effects of potential  problems  experienced by it or its key vendors or
suppliers in the timely  implementation  of its Year 2000 Compliance  Plan.
Nevertheless,  since it is not possible to anticipate all future  outcomes,
especially when third parties are involved, there could be circumstances in
which the Company's operations would be adversely affected.

SAFETY RECORD

     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.

PRE-OWNED AIRCRAFT MARKET

     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  IV-SP or  Gulfstream  V. Based on the current
market for pre-owned  aircraft,  the Company expects to continue to be able
to resell pre-owned  aircraft taken in trade, and does not expect to suffer
a loss with respect to these trade-ins and resales.  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.

COMPETITION

     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. 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 will not be  certified by the FAA until more than 21 months after
the  initial  delivery  of  the  Gulfstream  V.  The  Boeing  Company,   in
partnership with General Electric Co., is marketing a version of the Boeing
737 into the ultra-long range business jet aircraft market segment.  Boeing
has indicated that it expects this aircraft to be available for delivery in
the fourth  quarter of 1998. In June 1997,  Airbus  Industrie  announced it
would market a version of the Airbus A319 into this market segment as well.
Airbus has indicated  that it expects the aircraft to be available in early
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.  Increased price-based competition by
the  Company's  competitors  could  pressure the Company to also reduce its
prices.  Price reductions could have a significant  impact on the Company's
margins.  In addition,  if a significant number of customers were to cancel
orders  for the  Company's  aircraft  in order to  purchase  a  competitive
product, there could be a material adverse effect on the Company's backlog.

PENDING TAX AUDIT

     The Company is involved in tax audits by the Internal  Revenue Service
covering the years 1990 through 1994. The revenue  agent's  reports include
several  proposed  adjustments   involving  the  deductibility  of  certain
compensation expense,  items relating to the initial  capitalization of the
Company,  the allocation of the original purchase price for the acquisition
by the Company of the  Gulfstream  business,  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
reports are 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.