Groen Brothers, American Autogyro To Merge Operations

[Alan Coats]

Found this on the EAA e-Hotline. Maybe everyone already knew about this, but I thought I'd share it anyway.

"Groen Brothers, American Autogyro To Merge Operations
Groen Brothers Aviation, Inc. will merge its two wholly owned subsidiaries, American Autogyro, Inc. (AAI) and Groen Brothers Aviation USA, Inc. (GBA-USA) effective November 1, 2004. GBA-USA developed the Hawk 4 Gyroplane, the world’s first turbine engine powered autogiro. It will take on the manufacturing, sales and marketing functions of AAI’s award-winning SparrowHawk Gyroplane, the first fully enclosed two-place, center-line-thrust gyroplane in kit form. Groen Brothers Aviation USA, Inc. will be doing business as American Autogyro, for all of its SparrowHawk operations. Jim Mayfield, former AAI president, has joined the GBA-USA board of directors and has been promoted to executive vice president. Mayfield also heads the company’s experimental R&D arm, Hawk Werks division of GBA-USA based in Buckeye, Arizona. For more information, visit www.americanautogyro.com and www.gbagyros.com."

[Mayfield]

Here is the entire press release issued by GBA:

27 Oct 2004, 12:19 PM EDT
Msg. 722 of 722
Jump to msg. #
Groen Brothers Aviation, Inc. Merges Subsidiaries

SALT LAKE CITY, UT -- (MARKET WIRE) -- 10/27/2004 -- 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 world's first turbine engine powered autogiro, the Hawk 4 Gyroplane, will take on the manufacturing, sales and marketing functions of AAI's 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 Company's 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 Company's 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 Autogyro's 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 Homeland Defender? Gyroplane, based on the Hawk 4, is perfectly suited to airborne law enforcement roles. The Company has a nationwide dealership network which will provide flight training and maintenance support.

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 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.



Hank Parry/Media
Al Waddill/Investor Information
Groen Brothers Aviation, Inc.
801/973-0177

SOURCE: Groen Brothers Aviation, Inc.

[Cobra Doc]

Jim;
Congratulations on the promotion! Does this mean I don't get to fly with you any more? Give me a call Monday morning. I need to go over some final details before I beat up on my boss. Hopefully by Wednesday (Friday at the latest) I have this all wrapped up.
Cody

[Mike Hook]

Congrats on the new position:


Does this mean that the price will go down a bit now????
"Our Salt Lake City facility was originally designed as a manufacturing plant and can therefore efficiently and economically produce this aircraft."



Mike

[PW_Plack]

Will the team of instructors be relocating to UT?

[Mayfield]

Paul,

To my knowledge, David Groen has not made a decision to move GBA flight Ops.

Jim