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", and similar expressions
are intended to identify forward looking statements.

AIRCRAFT PRODUCTION

     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 a Gulfstream V
aircraft is delayed more than six months after a customer's scheduled
delivery date. An extended delay in the production 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.

     In contrast to its historical practice of discontinuing prior
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. In addition, the
Company has announced its plan to increase its annual production rate
to approximately 60 aircraft by 1999, a two-fold increase over its
1996 annual production rate. 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 60% to 70% 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, according to published reports, is scheduled
for certification in May 1998, 18 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 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.

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, 1991 and 1990. The
revenue agent's report includes several proposed adjustments involving
the deductibility of certain compensation expense, items relating to
the initial capitalization of the Company as well as 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 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.