Mark Cuban, Internet Pioneer, Buys New Gulfstream V Over the Web

Business Wire, Dec 20, 1999

Business Editors

SAVANNAH, Ga.--(BUSINESS WIRE)--Dec. 20, 1999

First New Business Jet Purchase Utilizing Internet Communications

Largest Transaction Ever Conducted Over the Web

Gulfstream Aerospace Corporation, a wholly-owned subsidiary of General Dynamics (NYSE:GD), announced today that Mark Cuban, co-founder of broadcast.com, has purchased a new ultra-long range Gulfstream V via the Internet. The sale is the first new aircraft sold over the Internet by Gulfstream. With a retail price in excess of $40 million, it is the largest transaction ever conducted over the World Wide Web.

Cuban selected the Gulfstream V after a thorough review, negotiation and communications process conducted almost entirely over the Web and with e-mail. Although the demonstration flight on the Gulfstream V from Dallas to Boston was real, all the arrangements for it were made via e-mail.

Capable of flying 6,500 nautical miles and at speeds up to Mach .885, the Gulfstream V is the world's first and most successful ultra-long range business aircraft. The Gulfstream V, with 63 world and national records since its introduction into service in 1997, offers the most advanced technology available in business aircraft today.

"Time is our most precious commodity. Gulfstream's Internet site gave me the opportunity to gather in-depth information and do my research during non-working hours," said Cuban. "Their willingness to communicate via e-mail and answer all my questions simplified the process to such an incredible degree that by the time I took the test ride, all the hard work was behind us! Had Gulfstream pushed me to buy `the old fashioned way,' I don't think this deal would have gotten done."

"The Internet and especially our own highly successful Web site are revolutionizing our responsiveness to our customers," said Joe Walker, Gulfstream's senior vice president of sales and marketing. "It's most fitting that Mark Cuban, a true pioneer in the Internet industry, has become the first to purchase a new Gulfstream V over the Web.

"We started discussing possible new aircraft choices after Mr. Cuban first visited our pre-owned aircraft Web site," said Walker. "He was able to view the available Gulfstream aircraft and their interiors using the IPIX feature, which allowed him to virtually tour all our aircraft. As e-mail discussions continued, Mr. Cuban downloaded specifications for both the Gulfstream IV-SP and Gulfstream V. As he became more focused on the Gulfstream V, arrangements for a demo flight were also coordinated electronically. The face-to-face discussions with a Gulfstream sales executive took place during that flight demonstration.

"We are extremely proud of the technology we incorporate into our aircraft and equally proud of the technology we are incorporating into our sales and services," said Walker. "Being the first in business aviation to incorporate innovative technology designed to meet our customers' needs is Gulfstream's forte. Today's transaction is more than just another sale. From a big picture e-commerce perspective, it validates that the Internet can be an extremely effective tool in the sale of large, complex capital goods."

Gulfstream was the first aircraft manufacturer to offer its aircraft online when it launched a Web site devoted to online pre-owned sales in June 1999. Prospective customers are able to obtain technical specifications and view the pre-owned aircraft in the company's inventory at both the company's corporate Web site (www.gulfstream.com) and at a pre-owned sales site. Using state-of-the-art IPIX technology, visitors can visually inspect all aspects of an aircraft's interior, eliminating the time and expense required in travelling to the aircraft's location. A complete maintenance history is also available online. During the first six months of operation, Gulfstream featured 20 aircraft on the site.

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 full 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 LeaseSM, Gulfstream Pre-Owned Aircraft Sales(TM), Gulfstream Charter Services(R), Gulfstream Management ServicesSM and Gulfstream ServiceCare(R). The company employs more than 8,000 people at eight locations.

General Dynamics, which is headquartered in Falls Church, Virginia, has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation. The corporation employs approximately 44,000 people worldwide and has annualized sales of approximately $10 billion. More information about the company can be found at www.generaldynamics.com.