Groen Brothers Aviation, Inc. (GBA) (OTC:BB GNBA) announced today its intent to merge its two wholly owned subsidiaries, American Autogyro Inc. (AAI) and Groen Brothers Aviation USA, Inc. (GBA-USA). Effective November 1, 2004, GBA-USA, the developers of the worldís first turbine engine powered autogiro, the Hawk 4 Gyroplane, will take on the manufacturing, sales and marketing functions of AAIís SparrowHawk Gyroplane. Groen Brothers Aviation USA, Inc. will be doing business as (d.b.a.) American Autogyro, for all of its SparrowHawk operations.

Jim Mayfield, formerly the President of AAI, has joined the Board of Directors and has been promoted to Executive Vice President, of Groen Brothers Aviation USA, Inc. As the Companyís Chief Technical Officer (CTO), Jim Mayfield also heads the Hawk Werks division of GBA-USA based in Buckeye, Arizona. Hawk Werks is responsible for the experimental R&D efforts of the Company and the development of the Companyís future technologies.

Jim Mayfield led the team that developed the award winning SparrowHawk Gyroplane, bringing to the world the first fully enclosed two place, center-line-thrust, statically and dynamically stable gyroplane in kit form; a major safety improvement in kit gyroplanes.

"Because of the excellent performance of Jim Mayfield and his team having successfully completed the development of the SparrowHawk, including the manufacture and delivery of the first 20 aircraft, GBA-USA can now take over production. This allows our Hawk Werks team in Buckeye Arizona to concentrate on developing our future products and technologies" said David Groen, President and CEO of Groen Brothers Aviation. "Our Salt Lake City facility was originally designed as a manufacturing plant and can therefore efficiently and economically produce this aircraft."

This merger allows GBA to optimize its operations, bringing the full weight of talent and capabilities of both organizations to the success of the SparrowHawk. GBA has high expectations for the future of this technology and believes that this merger will facilitate reaching those goals. For more information on the performance and safety aspects of the SparrowHawk Gyroplane, visit American Autogyroís 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.