Salt Lake City - January 27, 2004 - Groen Brothers Aviation Inc. (OTC:BB GNBA) announced today that it's wholly owned subsidiary, American Autogyro Inc. (AAI) is further expanding its sales network by opening a dealership in Moscow, Russia. The dealership is owned and operated by Mr. Alex Lameko, President of the TwistAir Club in Moscow. This is AAI's fifth international dealership location.

In addition to selling the AAI SparrowHawk, Mr. Lameko's dealership will provide service, pilot training and builder assist programs for SparrowHawk customers in the region. "We are very happy that we could form this relationship with Mr. Lameko and the TwistAir Club" says Mr. James Mayfield, President of AAI. "Alex is very well known in the region and is very familiar with all facets of light aircraft operation in Russia and Eastern Europe. The setting up of the dealership and the associated sale of two SparrowHawks to TwistAir this week is already generating great interest within and beyond Russian borders."

Mr. Lameko said, "The Twistair Club, of which I am President, has been well-known in Russian and CIS general aviation since 1995. We are the most experienced private aviation company in Russia. We provide sales and services for private pilots and newcomers to general aviation. We have two main goals in our organization. The first is to give the customer exactly what he needs. The second is to do all we can to increase flight safety. For both these goals we have chosen the model which we believe is the most suitable for Russian customers and local conditions: the American Autogyro SparrowHawk from Groen Brothers Aviation."

The SparrowHawk is ideal for many government jobs and for private use including: Border, Pipeline and Powerline Patrol, VIP Commuting, Fish and Wildlife Regulation, Agricultural Spraying, Traffic Control and Airborne Law Enforcement, Search and Rescue, Overhead Photography and Surveying, Sport Flying, Flight Training.

"This is an important opportunity for us," says Mr. Mayfield. "The Eastern European market is virtually untapped. By introducing our aircraft into this market, at this time, we make safe, reliable rotary wing flight available to a huge population, who will make good use of our extremely affordable gyroplanes."

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.