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Welcome to Issue #45 of our web site update column. Thank you for your interest in Groen Brothers Aviation, Inc. (GBA) and our aircraft. You can be automatically notified of new issues of Hawk’s 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.

GBA & GOVERNMENT OF ARAGON SPAIN SIGN MOU TO FORM JOINT VENTURE
GBA announced in December, 2006 that a Memorandum of Understanding has been signed with the government of Aragón, Spain to form a joint venture (JV) to complete FAA certification, production, marketing, and delivery of GBA’s Hawk 5 Gyroplane. The intent of the parties is that the JV will acquire from GBA for an as yet undisclosed sum, the Hawk 5 program including its derivative gyroplane aircraft designs and technologies. It will fund GBA to complete FAA certification of the Hawk 5 Gyroplane in the United States, commence setting up new as well as re-establishing existing Hawk Gyroplane dealerships throughout the world, while taking advance orders, and build and operate a factory in Aragón, Spain for world wide deliveries. Please click here on “GBA/Spain News” to read the News Release. To learn more about this incredible aircraft, please click here on “Hawk 5.”

FLIGHT INTERNATIONAL HIGHLIGHTS HELIPLANE PROGRESS
As previously noted, GBA is under contract with US Defense Advanced Research Projects Agency (DARPA) to design a proof of concept high speed, long range, vertical takeoff and landing (VTOL) aircraft, named by DARPA as the “Heliplane.” In a recent article headlined “Heliplane Design Gathers Speed” from the weekly aerospace news magazine Flight International, GBA/DARPA Heliplane Project Manager Don Woodbury has reported on the progress thus far. “We did not realize how much of a challenge 400mph was, but we have a design that converges, and we have got some margin,” said Woodbury. GBA and DARPA recently completed a system requirements review on the rotor and are now involved in meeting the Milestone 5 objectives in Phase One of the project. In April, as part of the next phase, GBA and DARPA will take the complete rotor and drive system to a preliminary design review, aiming to conduct a full-scale wind tunnel test in NASA Ames large-scale tunnel.
GBA’s contract, a fifteen month $6.4 million award to develop the preliminary design and perform key technology demonstrations, is Phase One of the potential multi-year $40 million four phase program. 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. For more information on the Heliplane project, please click on “Heliplane” to view the related News Releases.

SPARROWHAWK II RECEIVES AERO-NEWS.NET “BEST OF BREED” AWARD
American Autogyro is proud to have the SparrowHawk II, for the second year in a row, chosen by Aero-News.Net (ANN) for inclusion in their 2006 Planes of The Year: Amateur-Built/Experimental Kit Category. From the article: “Each year the staff of the Aero-News Network attempts to name those aircraft that distinguish themselves in the previous year. This year, like previous years, has been a difficult one to judge from the standpoint of determining what we like to call the ‘Best of the Breed’... Let me also note that while aircraft that previously were named Best Of Breed in any category, or overall, are eligible for inclusion in this year's list, we have decided to make it more difficult (in our judging protocols) for a previous winner to take the top spot in our judging criteria, so that a repeat winner truly earns the distinction.” We invite you to visit www.Aero-News.net for more information.

GBA VICE PRESIDENT TERRY BRANDT RECIEVES AWARD
Congratulations to Terry Brandt, GBA Vice President of Flight Operations and Chief Pilot, on being chosen as the 2006-2007 Designated Pilot Examiner of the Year for the State of Arizona. The award was presented at the 35th Annual Arizona Aviation Safety Awards Banquet hosted by the Arizona Aviation Safety Advisory Group. Terry was also recently recognized by the National Association of Flight Instructors (NAFI) for earning his master CFI accreditation for the 4th time, a distinction granted to fewer than 500 out of 90,000 CFIs in the United States. Terry’s good nature and excellent piloting and teaching skills are a valuable asset to GBA. We are all proud of his accomplishments! Please click here on “Award” to view the related News Release.

GBA/AMERICAN AUTOGYRO 2007 EVENT SCHEDULE
The 2007 event schedule is now listed on the American Autogyro web site. American Autogyro and/or our Authorized Dealers will be busy almost every month this year exhibiting at many EAA (Experimental Aviation Association), PRA (Popular Rotorcraft Association) and General Aviation air shows across the country. We hope you will have the opportunity to visit with us and see the SparrowHawk at one or many of these regional, national and international events. Please click here on “2007” to view our schedule.

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 through our GBA web site by clicking on "Investment Relations.”