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Welcome to Issue #39 of our web site update column. We appreciate your interest in Groen Brothers Aviation, Inc. (GBA) and our aircraft. Although emphasis over the last few issues has dealt primarily with the progress and success of the SparrowHawk, GBA continues to promote the use of our Hawk 4 Homeland Defenderô Gyroplane in governmental (Public Use Market) applications. Our Gyrodyne concept aircraft continues to be a topic in the aviation media and has drawn interest from the aerospace industry. You can be automatically notified of new issues of Hawkís Nest, News Releases and web site updates by clicking here on "Contact Us" and following the easy directions. We invite you to enjoy the many informational aspects of our comprehensive web site.

PRA & EAA EVENTS SUCCESSFUL FOR AAI
American Autogyro of Seattle, WA recently attended the Northwest EAA Fly-In and Sport Aviation Convention at Arlington, WA Airport. AAI also exhibited at the Popular Rotorcraft Associationís (PRA) National Convention and Fly-In at Mentone, IN and at the Experimental Aviation Associationís (EAA) AirVenture in Oshkosh, WI. Congratulations to Dan Reagan of American Autogyro of Cincinnati, OH, who won the Grand Champion Two-Place Gyroplane award at the PRA Fly-in with his SparrowHawk prototype. SparrowHawk sales at the events pushed the total to over 50 aircraft sold. Over 150 people took an Introductory Flight Lesson, offered in conjunction with both events, and had great fun experiencing the safe, stable flight characteristics of the SparrowHawk. Interest in taking gyroplane flight lessons was very high at all shows. Many of our AAI Dealers have SparrowHawk or SparrowHawk Prototypes (stability augmented RAF2000) and Certified Flight Instructors available for training. For more information and to find the nearest dealer in your area, please click here on "AAI Dealers." 


The SparrowHawk attracted the interest of many at AirVenture 2004.

Terry Eiland, AAI of Crystal River, FL, with student on introductory flight lesson.

Dan Reagan's award winning SparrowHawk Prototype at PRA National Fly-in.

THE SPARROWHAWK & THE NEW FAA LIGHT SPORT AIRCRAFT RULES
The sport pilot certificate is a new pilot certification category created by the FAA as part of its new Light Sport Aircraft (LSA) rule that is expected to go into effect by year's end. This "sport pilot" portion of the rule specifically addresses the desire of individuals wishing to fly aircraft primarily for recreational purposes by relaxing medical requirements for such pilots. When the rule is effective, a sport pilot's only medical requirement will be possession of a valid U.S. driver's license, provided no official denial or revocation of medical eligibility is on file with the FAA. As the rule is intended for recreational pilots, a sport pilot will only be permitted to operate in daytime, visual flight rules (VFR) in an aircraft with a maximum gross weight (MGW) of 1,320 lbs or less. We are pleased that a sport pilot with a rotorcraft gyroplane endorsement will thus be permitted to operate a SparrowHawk gyroplane provided the aircraft was originally and continuously certified and placarded at a MGW of no more than 1,320 lbs.

Gyroplanes, while included in the definition of "Light Sport Aircraft," will not initially be eligible for issuance of LSA or ELSA (Experimental LSA) airworthiness certificates. When the FAA first submitted the proposed rule to the Office of Management and Budget (OMB) the gyroplane community had not reached a consensus on "stability and performance" as required by the FAA. Subsequently, however, a stability and performance consensus standard has been established and submitted to the FAA, who have stated that inclusion of gyroplanes would be considered when a consensus was reached. We will keep you informed of the FAA's progress on this issue.

For detailed information on the new LSA/ELSA classifications, please click here on "Sport Pilot" to visit the EAA Sport Pilot website.

AVIATION HISTORY AUTOGYRO ARTICLE
The September issue of Aviation History magazine features a wonderful article, "From Autogyro to Gyroplane" written by Dr. Bruce Charnov, author of the acclaimed book by the same title. From the article "Given the enthusiastic reception of the Hawk series, it seems likely that the Groensí design will continue to find success in the market. That would mean that the Autogiro, in its newest gyroplane configurations, could achieve an acceptance that has been elusive since the PCA-2 took to the air." The PCA-2 was one of Harold Pitcairnís successful autogyros from the 1930's. Copies of the magazine are available at your favorite newstand.

SPARROWHAWK APV TO BE OFFERED IN INDIA
Mr. Poonam Asthana has been authorized by GBA/AAI to officially promote AAI and the SparrowHawk APV (Aerial Patrol Vehicle) Gyroplane in India. Mr. Asthana will be working closely with the AAI Sales Department in bringing notice to the appropriate governmental authorities in India the particular advantages of the two-seat SparrowHawk in its APV role. The SparrowHawk APV, a fully assembled gyroplane specially equipped for military/law enforcement missions, offers a safe and economical platform for aerial surveillance. Mr. Asthana joins Mr. Kim of Korea and AAI Dealers in Russia, New Zealand, Ecuador, Costa Rica, Canada and the Bahamas in promoting the SparrowHawk worldwide.

TAKING STOCK OF GBA
Groen Brothers Aviation, Inc. is a fully reporting, publicly traded corporation, listed on the OTC Bulletin Board as GNBA at any Stock Brokerage Company. Investment information including stock reports, Market Makers and SEC annual and quarterly reports are accessible on or through our web site by clicking on Investment.