SALT LAKE CITY - August 12, 2003: American Autogyro Inc. (AAI), a wholly owned subsidiary of Groen Brothers Aviation, Inc. (OTC:BB GNBA), is the recipient of two prestigious aviation awards in connection with the debut of the companyís SparrowHawk Gyroplane at the annual conventions of both the Popular Rotorcraft Association (PRA) at Mentone, Indiana, and the Experimental Aircraft Association (EAA) at Oshkosh, Wisconsin. At these popular events, the SparrowHawk prototype captured the attention of rotorcraft enthusiasts, the media and the general aviation community.

The Popular Rotorcraft Association award for "Best New Design" highlights the associationís acknowledgment of the safety benefits inherent in the American Autogyro Inc. SparrowHawk.

At the EAA convention at Oshkosh, the Aero-News Network presented to AAI their award for important "Contributions to General Aviation." This award underscores AAIís commitment to safe, stable and sensible rotorcraft design.

Jim Mayfield, President of AAI, said "It is indeed an honor to be acknowledged by the aviation community for our success in designing a gyroplane offering this level of engineering excellence coupled with unparalleled safety. Simply put, our design incorporates features that ensure both static and dynamic stability. These features, which include centerline thrust and a generous horizontal stabilizer, increase safety, enhance enjoyment, and make our aircraft fun and easy to fly."

In addition to its SparrowHawk, AAI designs and produces stability augmentation kits for other manufacturersí kit built gyroplanes. More information about American Autogyro Incorporated can be found at http://www.americanautogyro.com.

About Groen Brothers Aviation

Groen Brothers Aviation has developed the first commercially viable modern gyroplane. The gyroplane is a hybrid aircraft with the low operating cost of an airplane and the off-runway operating capability of a helicopter. The Company has a nationwide dealership network and the Hawk 4, upon which the Homeland Defender is based, is in the process of certification with the FAA. Information about Groen Brothers Aviation, its products, and individual members of "GBA Team Hawk" are available on the company's web site at: www.gbagyros.com.

Safe Harbor Statement/Forward-looking Information Disclaimer

Certain statements in this news release are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information is subject to risk and uncertainty. Certain statements in this Press Release may contain "forward-looking" information that involves risk and uncertainty, including projections for deliveries, sales, and other trend projections. Actual future results and trends may differ materially depending on a variety of factors, including the Company's successful execution of internal performance plans; product performance; risks associated with regulatory certifications of the Company's commercial aircraft by U.S. and foreign governments; other regulatory uncertainties; collective bargaining labor disputes; performance issues with key suppliers and subcontractors; governmental export and import policies; and the ability to adequately finance operations to the date of FAA certification, manufacturing, and delivery.