SparrowHawks to be made in China

[r.coplen]

GBA News
January 15, 2011 FOR FURTHER INFORMATION
Hank Parry/Media;
Al Waddill/Investor Information
Groen Brothers Aviation, Inc.
801/973-0177

GROEN BROTHERS AVIATION ENTERS COOPERATIVE JOINT VENTURE
AGREEMENT FOR PRODUCTION IN CHINA OF LIGHT GYROPLANES

Salt Lake City, Utah – January 15, 2011 – Groen Brothers Aviation, Inc. (“GBA”) (stock
symbol “GNBA”), announced that its wholly owned subsidiary, Groen Brothers Aviation
International, LLC ("Groen LLC"), formed to participate in the joint venture, has entered into an
agreement with Guangzhou Suntrans Aviation Science and Technology Co., Ltd. (“Suntrans”) to
form a Cooperative Joint Venture (“CJV”). The CJV will be named Foshan Suntrans-Groen
Aviation Co., Ltd. (“FSG Aviation”).

The CJV will be a limited liability company formed under the laws of the Peoples Republic of
China whose purpose is to produce in China for sales worldwide, light gyroplanes based upon
GBA’s SparrowHawk design. The agreement generally provides for FSGA to assemble,
manufacture, sell, and provide related services for GBA’s SparrowHawk Gyroplane Program,
including the most advanced version of the SparrowHawk aircraft developed to date, the
SparrowHawk III. It is expected that FSG Aviation will reintroduce the SparrowHawk III Kit into
the US and world markets, followed over the next few years by a fully assembled light gyroplane
using technology transferred by GBA to the CJV.

The agreement for the CJV will come into force upon the approval of the appropriate Chinese
regulatory authorities for which the parties are in the process of preparing the necessary papers.
The total amount of registered capital of the Joint Venture will be Chinese Renminbi
("RMB") 100 Million (approximately US$14.7 million). Under the terms of the agreement,
Suntrans will contribute RMB 75 million (approximately US$11 million) to the Joint Venture in
cash and hold 75% of the shares in FSG Aviation; in return for its contribution of the SparrowHawk
Program and transfer of certain advanced gyroplane technology, Groen LLC will hold 25% of the
shares valued at RMB 25 million (approximately US$3.67 million).
GBA considers the formation of this Joint Venture particularly of value because the Chinese
government has announced that it has begun a program to open to the public, Chinese airspace
below 3,000 meters. “An aircraft that’s easy and safe to fly, highly maneuverable and needing only
a very short runway, which is essentially what the SparrowHawk Gyroplane is, ought to be very
popular in China, as the country opens up to a new generation of private pilots,” said GBA’s Vice
President of Business Development, Al Waddill, “especially since demand for personal aircraft
should be far beyond the capability of China’s current general aviation infrastructure.”

About Groen Brothers Aviation, Inc.
Groen Brothers Aviation, Inc. has been developing gyroplane technology since 1986 and is
recognized as the world’s leading authority on sustained autorotative flight. Powered by a Rolls-
Royce gas turbine engine, GBA developed the world’s first commercially viable modern gyroplane -
the first “autogiro” to utilize a jet engine - the Hawk 4 Gyroplane. The Hawk 4 was used
extensively for security aerial patrol missions during the 2002 Winter Olympics in Salt Lake City.

GBA announced in October 2005 that DARPA, an arm of the United States Department of
Defense, awarded a contract to GBA to form and lead a team to design a proof of concept high
speed, long range, vertical takeoff and landing (VTOL) aircraft designed for use in Combat Search
and Rescue roles. This modern rotorcraft, named by DARPA as the “Heliplane,” is designed to
exploit GBA’s gyrodyne technology; offering the VTOL capability of a helicopter, the fast forward
flight of an airplane, and the safety, simplicity and reliability of a GBA gyroplane. GBA completed
Phase I of the Heliplane contract and also participated as a subcontractor to Georgia Institute of
Technology for tip-jet noise reduction work for Phase IB, which was also successful. To date
DARPA has not announced funding for Phase II and the future involvement of the Company in the
DARPA contract is unknown. The Heliplane could be the next generation rotor wing aircraft,
meeting economy and performance goals not considered achievable by any other type of VTOL
aircraft.

Further information about the Company, its products, and individual members of the GBA
Team is available on the Company's web site at: www.groenbros.com.

Safe Harbor Statement/Forward-Looking Information Disclaimer

Certain statements in this news release by Groen Brothers Aviation 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,
the Company’s ability to fund ongoing operations and to complete its obligations under the government contract
and its other ongoing commitments. Future results and trends depend on a variety of factors, including the
Company's successful execution of internal performance plans and agreements; product development and
performance; risks associated with regulatory certifications of the Company's commercial aircraft by U.S. and
foreign governments; government bid and funding availability uncertainty; other regulatory uncertainties;
performance issues with key suppliers and subcontractors; governmental export and import policies; and the
ability to adequately finance operations including meeting its debt obligations, fund manufacturing and delivery of
products.

 

[CLS447]

Can I get a SH from China ?

 

[gyroplanes]

Can I get a SH from China ?

Maybe, and a Mini 500 too, or a Continental engine, or a Cirrus airplane or any Smithfield food product, etc.

 

[DennisFetters]

Maybe, and a Mini 500 too, or a Continental engine, or a Cirrus airplane or any Smithfield food product, etc.

Probably will never happen. People try to do business here thinking they will get an honest deal, only to be eaten alive. The Chinese do no better in the deal, maybe worse. They always think that as soon as they have one working model, they can take it from there and need not to honor the contract they have with you. They seem to never learn that the technology and ability is in the people they are trying to do business with, not the product, and usually fail due to lack of experience and know-how while on their own.

It took me many years to figure out how to make a living doing business with Chinese, and that involved moving here and marrying one to watch my back.

You can't blame the snake for biting you since it is in their nature to do so.... if you make your hand available.....

Good luck.

 

[PW_Plack]

Groen Brothers itself has now been swallowed whole by General Aeronautics, a Chinese company. GBA moved out of its long-time facility on California Avenue in Salt Lake City. While the official line was David Groen would remain in a management position and smaller offices were being sought in Salt Lake, we never heard anything from the company after they closed up shop, the tooling and some of the machines on hand were being sold, and the website for General Aeronautics does not appear to be active.

There is a new website for a company called "Groen Aeronautics," listing a PO box in Midvale, UT (near my home), but I don't know if there's an actual facility. I'll check when I'm back in the states to see if I can find out more.

But no, don't expect to see SparrowHawks from China sold in the US at this point. There would be production, marketing and distribution issues, and the remaining demand for a heavy, Subaru-powered two-place gyro is likely very small. A Calidus qualifies legitimately as an LSA, outperforms the SparrowHawk in every way, doesn't look like a kit when it's finished, and can be built in a fraction of the time of a SparrowHawk.

 

[Steve_UK]

Time moves along - 1990 was some 25 years ago - soon be 2016, SparrowHawk would be back to the future.

 

[n613hh]

A Calidus qualifies legitimately as an LSA, outperforms the SparrowHawk in every way, doesn't look like a kit when it's finished, and can be built in a fraction of the time of a SparrowHawk.[/QUOTE]

But is $60K higher priced.

 

[PW_Plack]

But is $60K higher priced.

And has already outsold the SparrowHawk by a factor of three or four. In just a couple years, the Cavalon is already at half the number of RAFs sold over a quarter-century. The cost of a Cavalon is what most aircraft buyers expect to pay.

The SparrowHawk didn't have enough margin in its price to be a viable business, so it's gone. A two-place gyro kit new for under $55K will not likely remain on the market long.

 

[n613hh]

And has already outsold the SparrowHawk by a factor of three or four. In just a couple years, the Cavalon is already at half the number of RAFs sold over a quarter-century. The cost of a Cavalon is what most (some) aircraft buyers expect to pay.

The SparrowHawk didn't have enough margin in its price to be a viable business, so it's gone. (Plenty of left overs still to be scarfed up.) A two-place gyro kit new for under $55K will not likely remain on the market long.

Fortunate for those of us that simply couldn't fly with the cost of a Cavalon or Cirrus, etc. that there are RAF's and Sparrowhawks and C172s and Avid Flyers and the like. eace: Hopefully my Sparrowhawk rebuild will be in the air by early to mid 2016. :wave:

 

[PW_Plack]

Hopefully my Sparrowhawk rebuild will be in the air by early to mid 2016. :wave:

Stephen, those of us north of you are still rooting for you to succeed!