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Thursday November 4, 1999 :

Gyrodyne Company of America Announces Sale of Aerospace Division

ST. JAMES, NY, USA ( Gyrodyne Press Release ) - Gyrodyne Company of America, Inc. announced today it had entered into an agreement for the sale of the Company's defunct aerospace division. The agreement, which is expected to close in mid November, calls for Gyrodyne to transfer its helicopter parts inventory and related tooling and design drawings. President Stephen V. Maroney reported that ``... This action is in keeping with our clear direction to focus on the Company's primary asset the 326 acre Flowerfield property in St. James/Stony Brook, New York.''

The sale of the aerospace division to California based Aviodyne, Inc. provides that Gyrodyne will retain potential proceeds from its existing Technology Transfer Agreement with Domier GmbH, Germany, with Aviodyne supplying expertise in the technical support function.

In combination with the disposal of its oil investments in September, the Company will realize proceeds of approximately $400,000.00.

``While neither of these sales represent a major financial impact for the Company, the Aviodyne agreement brings closure to a very significant part of Gyrodyne's history -- the design and manufacturing of helicopters for military use primarily during the 50s and 60s. ''Simply stated, from a personnel and funding standpoint, we have chosen to devote our resources on the Flowerfield property and these transactions provide some additional liquidity toward that effort,`` Maroney said.

Except for historical information contained herein, this release contains, within the meaning of the federal securities laws, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. Important factors and risks that may affect future results include but are not limited to: changes in the real estate industry, changes in laws and regulations, litigation, interest rates, available capital, limitations on future financing, the effects of adverse publicity, uncertainties relating to obtaining government approvals, failure to consummate anticipated transactions, general economic conditions, competition and other risks and uncertainties that are described from time-to-time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon written request from the Company.