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16th January 2001

BBA Aviation Announces Acquisitions and Alliance Agreements with Gulfstream Aerospace Corporation

BBA Group PLC announces that it is entering into a series of acquisitions and alliance agreements with Gulfstream Aerospace Corporation. Under these agreements, BBA will acquire Gulfstream's engine overhaul and repair business operations at Dallas and Gulfstream will separately purchase the assets and assume operation of BBA's Regional Maintenance Centers (RMC's). Net consideration for these transactions, payable by BBA in cash, is $43million. Closing is subject to regulatory approval and change of control consents.

The Gulfstream engine overhaul and repair business, which will become part of BBA's Dallas Airmotive engine services subsidiary, provides factory authorized service for the Honeywell TFE731, ALF502, and the General Electric CF34 series engines, as well as auxiliary power units (APU's) produced by Honeywell and Sundstrand. The TFE731 engine is one of the most successful turbofan engines to enter the business jet market and powers many small to mid-sized jets used in executive service today.

Although BBA will no longer own the RMC airframe and avionics service business in Dallas, Las Vegas, Minneapolis and West Palm Beach, which will now be operated as Gulfstream facilities, BBA will continue to make available the full range of RMC services to its customers through its alliance with Gulfstream.

BBA and Gulfstream will also enter into a strategic marketing and product support agreement, which will allow both to take full advantage of the synergies that exist between the two companies and maximize the benefits to their customers. The companies will also market jointly their respective engine and aircraft support capabilities.

Commenting on the agreements, Roy McGlone, Deputy CEO of BBA, said:

"This alliance with Gulfstream, an acknowledged industry leader, is an important step in the development of BBA Aviation. It provides BBA with new engine programs supplementing our existing range, thereby enhancing our market position.

In line with our stated strategy, BBA will continue to look for similar strategic alliances to strengthen further the quality and depth of the business."

ENQUIRIES:

Roy McGlone, Deputy Chief Executive, BBA Group PLC, 020 7842 4900
Susan Gilchrist/Nigel Prideaux, Brunswick, 020 7404 5959