GIA Gulfstream

Gulfstream International Group, Inc. (“Gulfstream” or the “Company”) (AMEX: GIA) announced today that it has received a commitment for an investment of up to $2.5 million from Sah-Vul Strategic Partners, LLC (“Sah-Vul”) that will enable the Company to strengthen its financial position, and enables it to expand its strategic plan with an increased focus on growth and maximization of stockholder value. The commitment includes an initial $1.5 million in the form of a secured convertible note, and provides an option for Sah-Vul to invest an additional $1.0 million.

Consummation of the transaction is expected to occur shortly and is subject to certain conditions, including receipt of third party consents and approvals.

Gulfstream International Airlines currently operates more than 150 scheduled flights per day, serving nine destinations in Florida, 10 destinations in the Bahamas, five destinations from Continental Airline’s Cleveland hub under the Department of Transportation’s Essential Air Service Program, as well as licensed daily charter flights to Cuba. A sixth destination from Cleveland is scheduled to start October 1. Gulfstream has code-share and alliance agreements with Continental Airlines, United Airlines and Copa Airlines of Panama.

With this investment, the Company will look to expand service in its current geographic markets and open new regional markets that are underserved by larger carriers. In addition, Sah-Vul plans to work with the Company to refinance its fleet of aircraft from Raytheon Aircraft Credit Corporation and lower its operating costs.

Sah-Vul Managing Partner Scott R. Silverman will assume the role of Vice Chairman of Gulfstream’s board of directors upon consummation of the investment. Commenting on the investment, Silverman said, “Based on our evaluation of Gulfstream’s operations and its unique model in its geographic markets, we believe the Company presents a compelling growth opportunity that can return significant value for Sah-Vul and all GIA stockholders. We believe that our capital and vision can help Gulfstream as we work to unlock its potential value.”

Silverman is currently the Chairman and CEO of PositiveID Corporation, and has led public companies including VeriChip Corporation and Digital Angel Corporation (formerly Applied Digital Solutions, Inc.). Silverman graduated from the University of Pennsylvania in 1985 and Villanova University School of Law in 1989.

Thomas A. McFall, Chairman and Senior Executive Officer of Gulfstream, said, “We look forward to bringing in Sah-Vul as a partner and new investor, with its significant capital markets experience, a proven track record of enhancing shareholder value, and its belief in the prospects of Gulfstream. With the continuing consolidation of larger airlines, the Company has an unprecedented number of growth opportunities available to it and we are excited about proceeding to develop those, particularly as we expand our initial base in the Northeast.”

About Gulfstream International Group, Inc.

Gulfstream is a regional air carrier based in Fort Lauderdale, Florida, operating for more than 20 years. The Company specializes in providing travelers with access to niche locations not typically covered by major carriers. For more information on the company, visit the company's website at http://www.gulfstreamair.com.

Special Note Regarding Forward-Looking Statements

In addition to historical information, this release contains forward-looking statements. Gulfstream may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things: its business strategy; its value proposition; the market opportunity for its services, including expected demand for its services; information regarding the replacement, deployment, acquisition and financing of certain numbers and types of aircraft, and projected expenses associated therewith; costs of compliance with FAA regulations, Department of Homeland Security regulations and other rules and acts of Congress; the ability to pass taxes, fuel costs, inflation, and various expenses to its customers; certain projected financial obligations; estimates regarding capital requirements; the likelihood that Gulfstream will receive any of the committed funding; and any other plans, objectives, expectations and intentions contained in this release that are not historical facts.

These statements, in addition to statements made in conjunction with the words "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate" and similar expressions, are forward-looking statements. These statements relate to future events or future financial performance and only reflect management's expectations and estimates. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Gulfstream as of such date. The following is a list of factors, among others, that could cause actual results to differ materially from the forward-looking statements: changes to external competitive, business, budgeting, fuel cost or supply, weather or economic conditions; changes in its relationships with employees or code share partners; availability and cost of funds for financing new aircraft and the ability to profitably manage its existing fleet; adverse reaction and publicity that might result from any accidents; the impact of current or future laws and government investigations and regulations affecting the airline industry and its operations; additional terrorist attacks; and consumer unwillingness to incur greater costs for flights.

Gulfstream assumes no obligation to update any forward-looking statement. Risk factors, cautionary statements and other conditions which could cause actual results to differ from management's current expectations are contained in Gulfstream's filings with the Securities and Exchange Commission, including Part I, Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the Year Ended December 31, 2009 and subsequent Form 10-Q filings.

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