Gyrodyne Acquires Medical Center in Fairfax, Virginia

ST. JAMES, N.Y., April 7 /PRNewswire-FirstCall/ -- Gyrodyne Company of America
Inc. (Nasdaq: GYRO), a Long Island-based real estate investment trust,
announced that it has acquired through a wholly-owned subsidiary the Fairfax
Medical Center in Fairfax, Virginia for $12,891,000, or $221.84 per square
foot. The acquisition represents the third medical office property purchase
for Gyrodyne since its conversion to a REIT. Virginia Commerce Bank provided
$8 million in mortgage financing.

Fairfax Medical Center, located at 10721 Main Street, sits on 3.5 acres
directly across the street from a surgical center owned by Hospital
Corporation of America ("HCA"). The property contains approximately 58,000
gross rentable square feet of medical office space that currently is
approximately 84 percent leased to 28 tenants.

The $12,891,000 purchase price represents a $269,000 reduction in the
previously announced purchase price.

Stephen V. Maroney, Gyrodyne's Chief Executive Officer, stated that "Gyrodyne
is very pleased with the acquisition of the Fairfax Medical Center, which
advances our medical office investment strategy. It also qualifies for tax
deferral treatment under Section 1033 of the Internal Revenue Code and gets us
over the finish line for investing in a tax-efficient manner within required
time limits the $26 million advance payment for property taken from us by the
State of New York under the power of eminent domain."

In 2007, Gyrodyne purchased ten buildings in the Port Jefferson Professional
Park in Port Jefferson, New York. Last year, Gyrodyne bought Cortlandt
Medical Center in Cortlandt Manor, N.Y. Fairfax Medical Center represents the
firm's first asset in the metro Washington, D.C., area.

Peter Pitsiokos, Gyrodyne's Chief Operating Officer, stated that Gyrodyne has
"identified the Metro D.C. real estate market as one positioned to perform
extremely well in the next cycle."

The property includes two four-story brick-clad buildings on approximately 3.5
acres -- directly across the street from a surgical center owned by Hospital
Corporation of America (HCA). It also sits equidistant from Inova Health
System's Fairfax and Fair Oaks hospitals, which are just 5.5 and 6.5 miles
away, respectively.

"There are few competing properties in the area," Mr. Pitsiokos said. "Both
Inova Health System and HCA are successful, well-established and deeply
respected organizations. We will be in very good company there. We look
forward to building on our past success as a responsive, handson owner that is
highly in tune with the needs of physicians and their patients."

About Gyrodyne Company of America, Inc.

Gyrodyne, a real estate investment trust, manages a diversified portfolio of
real estate properties comprising office, industrial and service-oriented
properties primarily in the New York City metropolitan area. Gyrodyne owns a
68 acre site approximately 50 miles east of New York City on the north shore
of Long Island, which includes industrial and office buildings and undeveloped
property which is the subject of development plans. Gyrodyne also owns
medical office buildings in Port Jefferson Station, New York, Cortlandt Manor,
New York and Fairfax, Virginia. Gyrodyne is currently contesting the value
paid by New York State for 245.5 adjoining acres taken under eminent domain
proceedings. Gyrodyne is also a limited partner in the Callery Judge Grove,
L.P., which owns a 3,500 plus acre property in Palm Beach County, Florida,
also the subject of development plans. 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 Statement Safe Harbor
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,
the effect of economic and business conditions, including risks inherent in
the real estate markets of Suffolk and Westchester Counties in New York, Palm
Beach County in Florida and Fairfax County in Virginia, the ability to obtain
additional capital in order to develop Gyrodyne's undeveloped property in St.
James, New York and other risks detailed from time to time in Gyrodyne's SEC
reports.

SOURCE Gyrodyne Company of America, Inc.

Evelyn Francisco of Caryl Communications Inc., for Gyrodyne Company of
America, Inc., +1-201-796-7788