Gyrodyne Announces Terms for Rights Offering to Shareholders

Gyrodyne Company of America, Inc. GYRO announced today that it has set the terms for its previously announced rights offering. Under the terms of the rights offering, Gyrodyne will distribute, at no charge, to the holders of its common stock as of 5:00 p.m., New York time, on August 15, 2011, one non-transferable subscription right for each share of Gyrodyne common stock then owned. Every 7.5 subscription rights will entitle the holder to purchase one share of common stock at a purchase price of $53.00 per share, which represents an 18.5% discount to the closing price of Gyrodyne's common stock on August 4, 2011. Any fractional rights resulting from the share allocation process will be rounded up to the nearest whole number. Assuming the rights offering is fully subscribed, Gyrodyne currently expects the gross proceeds of the offering to be approximately $9,210,000.