SOURCE: Groen Brothers Aviation, Inc.

April 21, 2005 06:00 ET

Groen Brothers Aviation Inc. Grants Six Month Funding Window to Chinese Investment Group

SALT LAKE CITY, UT -- (MARKET WIRE) -- April 21, 2005 -- Groen Brothers Aviation, Inc. (GBA) (OTC BB: GNBA) today announced that in exchange for a minimum equity investment of $1 million, GBA has granted a Chinese investment group a six month period in which to bring to the Company a funding/partnering package sufficient to fund the completion of the Hawk 4 Gyroplane program up through FAA Certification and production. In addition, during this same period, the Agreement grants this investment group the right to bring a funding/partnering package for the development of larger commercial GBA GyroLiner gyrodynes of Groen Brothers Aviation's design.

As a result of this agreement, Jay Groen, Chairman of GBA, and Robin Wilson, Executive VP & Head of Business Development, traveled to China in March to meet with government officials and aerospace executives. These high-level meetings were arranged by this investment group, executives of which accompanied GBA during the twelve-day visit. In these meetings, GBA made presentations covering the application of GBA's gyroplane and gyrodyne technologies to China's commercial needs. The presentations were well received and resulted in GBA being invited back to China to discuss specific proposals for joint ventures or cooperation.

"There can be a very large market for our products in China, from the SparrowHawk size gyroplanes, to the Hawk 4 Gyroplane and its variants, to the varying sizes of tip-jet powered gyrodynes in commuter airline and transport category aircraft," said David Groen, President & CEO. "With China's burgeoning economy requiring rapid development of its transportation infrastructure, these types of safe, economical, high performance Ultra-Short and Vertical Takeoff and Landing (USTOL & VTOL) aircraft can be very important in helping to solve their transportation needs. We are pleased at this progress."

About Groen Brothers Aviation, Inc.

Groen Brothers Aviation, Inc. has developed the first commercially viable modern gyroplane, the "Hawk 4." The gyroplane is a hybrid aircraft with the low operating cost of an airplane and the off-runway operating capability of a helicopter. Through its wholly owned subsidiary, Groen Brothers Aviation USA, Inc., the Company has also developed and is currently selling a smaller kit gyroplane, the "SparrowHawk," to meet the growing demands of the home-built gyroplane kit market, and to provide a safe, economical airborne patrol vehicle for law enforcement and other government applications. The Company continues to develop a nationwide dealership network for the sale of these products.

The Company is also offering its proprietary technology to develop large compound rotorcraft capable of vertical take-off with ultra-heavy payloads and substantial range. Applications for this technology include land and sea-based heavy-lift military freighters, an aerial fire-fighting vehicle and a runway-independent commercial airliner. Further information about the Company, its products, and individual members of "GBA Team Hawk" is 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 but not limited to 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 of products.

Contact Information

  • FOR FURTHER INFORMATION:

    Media:
    Hank Parry

    Investor Information:
    Al Waddill
    Groen Brothers Aviation, Inc.
    801/973-0177