February 2011 G-IVSP Market Update

February 2011 G-IVSP Market Update There are currently nine (9) G-IVSP aircraft for sale with prices ranging from $11.95MUSD to $17.85MUSD. At various times throughout 2010, different segments of the G-IVSP market (1200/1300/1400 series) showed very tight inventories. In the 4th quarter of last year this changed dramatically as the entire G-IVSP market at the start of 2011 shows very scarce supply. Currently there are two (2) G-IVSP aircraft under contract. Only three (3) 1200 series G- IVSP aircraft are realistically priced, two (2) 1300 series G-IVSP aircraft and one (1) G-IVSP aircraft in the 1400 series remain attractive values. This relegates a qualified buyer to less than a half dozen aircraft to choose from. Gulfstream will be adding one 1400 series and one 1300 series to the market in the first quarter of 2011 but this will do little to improve the inventory outlook for buyers. The G-IVSP market has represented the "value" choice for large cabin buyers since the 2008 global financial crisis. With price drops of nearly 50% since the peak in mid-2008, the G-IVSP market represents a buyer with near G450 performance (roughly 200 nm less) at about half the cost depending on model year. The popularity of this aircraft can be evidenced in the sales numbers over the past two years with nearly forty five (45) aircraft changing hands over that time period. Prices for 1200 series aircraft will trade in the range of $11.0MUSD to $12.0MUSD. Prices for 1300 series aircraft are expected to trade in the $13.0MUSD to $14.0MUSD. Lastly 1400 series aircraft will trade in the $14.0MUSD to $16.5MUSD range. Under Contract SS AF Time sE Pro. Erig, Status Part Paint Interior Contract Price 135 1295 12,662 Yes Not Due Yes 2005 2007 $8.SMUSD 1495 3050 Yes Not Due No 2003 2003 $16.50MUSD EFTA01105015 Sales Past 90 Days SAI AF Time sE Pro. aE ig, Status Part Paint Interior Sale Price 135 1220 11899 Yes Due 300 Yes 2006 2006 $8.SMUSD 1221 8463 Yes 291 SOH Yes N/A N/A $10.758AUSD 1292 8213 Yes 37 SOH No 2006 2002 $11.8MUSD 1310 6462 No Due 600 No 2004 2004 $11.5MUSD 1331 4769 Yes 1107 SOH Yes 2005 2007 $13.258AUSD 1371 4910 Yes 1043 SOH Yes 2007 2000 $13.20MUSD G-IVSP 2011 Outlook The G•IVSP market faces the steepest inventory constraints since the 2008 global financial crisis. With nearly forty five (45) trades in the past twenty four months' supply has dried up. Prices for 1200 series aircraft have gained $1.0MUSD on average in the past two quarters. The price appreciation in the 1300 series segments is fast approaching $2.0MUSD on average. Only in the 1400 series where prices stabilized at years end, has price appreciation been absent but this will likely change in the first quarter of 2011. Overall we expect inventory to remains low, buying interest to continue to be strong, and a dear bias for further 7% to 10% price appreciation across the entire model line for 2011. Clearly 2010 saw a shift from a buyer's market to a seller's market. 2008 — 2010 Statistical Analysis Gulfstream IVSP Inventory / Ask Prices / Sale Prices 45 40 3S 30 2S 20 15 10 S 0 Dec. 2008 — Inventory — Ask Price — Sale Price Dec. 2009 Dec. 2010 EFTA01105016