GROEN BROTHERS AVIATION ANNOUNCES THE FIRST FLIGHT OF ITíS AMERICAN AUTOGYRO INC. SUBSIDIARYíS SPARROWHAWK GYROPLANE

SALT LAKE CITY - February 25, 2004: Groen Brothers Aviation, Inc. (OTC:BB GNBA) announced today the occurrence of the maiden flight of its SparrowHawk Gyroplane, designed and manufactured by their wholly owned subsidiary American Autogyro Inc. (AAI). The SparrowHawk, an enclosed, centerline thrust, two-place kit-built gyroplane, is a dynamically and statically stable aircraft that provides great safety advantages. "Based upon GBA's years of experience in aircraft structures and flight stability and control, and the several months and hundreds of fleet hours of flight time of AAI stabilization modified aircraft, we are comfortable predicting that "There will be no safer kit-built aircraft" said Jim Mayfield, President of AAI. The large two-place cabin with a width of 44 inches, more than 4 inches wider than a Cessna 172, provides great visibility and comfort for the pilot and passenger.

Jim Mayfield, the President of AAI and GBAís Chief Test Pilot and principal designer, said, "The SparrowHawk in flight handles, as was anticipated, very well. During the first flight basic handling qualities were quantified and found to be within predicted limits. We are excited about offering the aviation community a gyroplane with this level of engineering excellence coupled with unparalleled safety. The centerline thrust design, incorporating a generous horizontal stabilizer, ensures stability and increases safety. I believe that most pilots will find the SparrowHawk fun and easy to fly. Iím also proud to announce delivery of the initial components of SparrowHawk kits to many of our AAI Dealers who have already begun manufacture and assembly. The input of their experience will help ensure a satisfying and pleasurable experience for our current and future customers who build this aircraft. I speak with pride on behalf of all GBA/AAI employees who have worked so hard to make this project a reality."

GBA, recognized as the leading authority on the subject of autorotative flight, created AAI a year ago to develop and market a kit built gyroplane. AAI was to showcase GBAís technical expertise in the development and delivery of an affordable and easy to build kit. "All that weíve learned during the design, development, building, and flight testing of our other aircraft, including the four place Homeland Defender^TM Hawk 4 Gyroplane, the worldís first turbine powered gyroplane, has been utilized in nearly every aspect of the SparrowHawk" said David Groen, GBA President and CEO. "From the use of computer aided drafting and complex stress analysis programs, to performing hundreds of hours of prototype flight testing, and through the inclusion of many improvements, the SparrowHawk embodies our belief in the potential for this long overlooked form of flight."

AAI plans on flying the SparrowHawk at the upcoming PRA (Popular Rotorcraft Association) Bensen Days fly-in and the EAA (Experimental Aircraft Association) Sun ën Fun fly-in, both held during April near Lakeland, Florida. This summer, many AAI dealers plan on bringing their completed SparrowHawks to the annual International PRA convention held every July in Mentone, Indiana. The SparrowHawk prototype was given the Best New Design award at last yearís event. Following Mentone, AAI will again have a presence at the EAA annual AirVenture Air Show, an event attended annually by almost a million visitors and participants.

The SparrowHawk is also being offered as a fully assembled aircraft designed specifically for aerial observation. The SparrowHawk APV (Airborne Patrol Vehicle) model offers unequaled low cost aerial observation capabilities to both US and international government agencies. Depending on the final rule definitions, the FAAís upcoming Sport Aircraft category may allow the SparrowHawk, as a completed aircraft and/or a kit-built with minimum assembly requirements, to service effectively what is expected to be a huge market. In addition, the anticipated FAA Light Sport Pilot requirements should further expand the market for the SparrowHawk.

In addition to its SparrowHawk, AAI designs and produces stability augmentation kits for other manufacturersí kit built gyroplanes. For more information on the performance and safety aspects of the SparrowHawk Gyroplane, visit AAIís website at 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.