03/06/09

ST. JAMES, NY., March 6, 2009…Gyrodyne Company of America, Inc. (NASDAQ: GYRO) announced today that it had received an Order from the Court of Claims establishing an August 3, 2009 trial date for the Company’s claim for just compensation for property appropriated in November 2005 by New York State under the power of eminent domain.

The Order sets aside August 3rd through August 5th and August 10th through August 14th for witness testimony and presentations by counsel for Gyrodyne and the State of New York on behalf of Stony Brook University.

Stephen Maroney, President of Gyrodyne stated “we are looking forward to having our day in court because we believe we have built a formidable case for just compensation. As we have indicated before, we also believe the State’s appraisal of the property is seriously flawed in that it misapplied the eminent domain law’s requirement that just compensation be determined based upon the highest and best use and the probability that such use could have been achieved.”

About the Company

Gyrodyne owns a 68 acre site approximately 50 miles east of New York City on the north shore of Long Island, including four industrial and office buildings. The Company also owns ten medical office buildings in Port Jefferson Station, New York and five medical office buildings in Cortlandt Manor, New York. The Company is currently contesting the value paid by New York State for 245.5 adjoining acres taken under eminent domain proceedings. The Company is also a limited partner in the Callery Judge Grove, L.P., which owns a 3,700 plus acre property in Palm Beach County, Florida. Gyrodyne's common stock is traded on the NASDAQ Stock Market under the symbol GYRO. Additional information about Gyrodyne may be found on its web site at http://www.gyrodyne.com.

Forward-Looking Statements

The statements made in this press release that are not historical facts constitute “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995, and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, which can be identified by the use of forward-looking terminology such as “may,” “will,” “anticipates,” “expects,” “projects,” “estimates,” “believes,” “seeks,” “could,” “should,” or “continue,” the negative thereof, other variations or comparable terminology. Important factors, including certain risks and uncertainties, with respect to such forward-looking statements that could cause actual results to differ materially from those reflected in such forward-looking statements include, but are not limited to, uncertainties inherent in the scheduling of trial proceedings and in the litigation process generally and other risks detailed from time to time in Gyrodyne’s SEC reports.

CONTACT:
Evelyn Francisco, Caryl Communications Inc. (201) 796-7788