1405419--3/31/2009--GULFSTREAM_INTERNATIONAL_GROUP

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Risks Related To Our Industry The airline industry is unpredictable. The airline industry is subject to the impact of terrorist activities or warnings. Our operations may be adversely impacted by increased security measures mandated by regulatory authorities. The airline industry is heavily regulated. The FAA may change its method of collecting revenues. The airline industry is characterized by low profit margins and high fixed costs. The airline industry is highly competitive. Risks Related To Our Business We have substantial fixed obligations. Our recently issued debentures and warrants create additional risks and obligations. Sales of a substantial number of shares of our common stock in the public market, or the perception that this may occur, may depress the market price of our common stock. We would be adversely affected by the loss of key personnel. Expansion of operations could result in operating losses. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud and, as a result, our business could be harmed and current and potential stockholders could lose confidence in us, which could cause our stock price to fall. Gulfstream is dependent on our code share relationships. Gulfstream is dependent on the financial strength of our code share partners. We operate our code share relationships as revenue-sharing arrangements. The availability of additional and/or replacement code share partners is limited and airline strategic consolidations could have an impact on operations in ways yet to be determined. There are constraints on our ability to establish new operations to provide airline service to major airlines other than our code share partners. Fluctuations in fuel costs could adversely affect our operating expenses and results. Our business is subject to substantial seasonal and cyclical volatility. Any inability to acquire and maintain additional compatible aircraft or engines would increase our operating costs and could harm our profitability. Maintenance expenses for Gulfstream s fleet could increase. Any inability to extend the lease terms of our existing aircraft or obtain financing for additional aircraft could adversely affect our operations. The airline industry has been subject to a number of strikes which could adversely affect our business. Competitors or new market entrants may introduce smaller aircraft or direct hub flights, which could reduce our competitive advantage. Gulfstream flies and depends upon only one aircraft type, and would be adversely affected if the FAA were to ground our fleet. Gulfstream is at risk of losses and adverse publicity stemming from any accident involving our aircraft. If Gulfstream is forced to relocate our Fort Lauderdale maintenance base, we may not be able to operate as successfully. Hurricanes and other adverse weather conditions could adversely affect Gulfstream s business. Gulfstream may experience labor disruptions or an increase in labor costs. Our business is heavily dependent on the Bahamas markets and a reduction in demand for air travel to this market would harm our business. The current regulation of travel to Cuba is subject to political conditions and a change in the current restrictions could impair our ability to provide flights or minimize our competitive advantage. Cuba s status as a state sponsor of terrorism could impact the sustainability and growth of the Company s flights to Cuba. We rely on third parties to provide us with facilities and services that are integral to our business and can be withdrawn on short notice. Aviation insurance is a critical safeguard of our financial condition and it might become difficult to obtain adequate insurance at a reasonable rate in the future. Risks Related To the Academy A decrease in demand for regional airline pilots could adversely impact the Academy s ability to attract and retain students. The value of the Academy could be diminished if other airlines lower their required minimum flight hours. The inability to finance tuition costs could adversely affect the Academy s enrollment. Workplace error by graduates of the Academy could expose us to legal action. Risks Related To Our Common Stock We do not pay cash dividends on our capital stock, and we do not anticipate paying any cash dividends in the future. Our certificate of incorporation and bylaws, and Delaware law contain provisions that could discourage a takeover. Our future operating results may be below securities analysts or investors expectations, which could cause our stock price to decline. Potential investors could be prohibited from investing, or choose not to invest, in our common stock because we provide services to a company that operates flights to Cuba. Our common stock has only been publicly traded for a short period of time, and the price of our common stock could fluctuate substantially, possibly resulting in class action securities litigation. We are not in compliance with NYSE Amex continued listing standards The liability of our officers and directors is limited.

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1405419--3/31/2009--GULFSTREAM_INTERNATIONAL_GROUP_INC