Exhibit 99.01

                        Gyrodyne Company of America, Inc.
                                 102 Flowerfield
                         St. James, New York 11780-1551
                     Phone (631) 584-5400 Fax (631) 584-7075

May 25, 2004

Contact:
Peter Pitsiokos, Executive Vice President             Tel: (631) 584-5400
Gyrodyne Company of America, Inc.                     Fax: (631) 584-7075
102 Flowerfield
St. James, New York 11780

                             FOR IMMEDIATE RELEASE

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    ***** NEWS ***** NEWS ***** NEWS ***** NEWS ***** NEWS ***** NEWS *****
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"NASDAQ:GYRO" - ST. JAMES - Gyrodyne Company of America, Inc. (GYRO) reported
Gyrodyne Reacts to University Announcement

The State University of New York at Stony Brook ( Stony Brook University ), in a
filing dated May 21, 2004, announced the completion of a Draft Generic
Environmental Impact Study ( DGEIS ) which outlined its plan to acquire 246
acres of the Company's 314 acre Flowerfield property through either a negotiated
purchase or eminent domain. According to the filing, the remaining 68 acres,
which includes a substantial portion of the Gyrodyne industrial park, would be
retained by the Company.

The announcement also included a Notice of Public Hearing that established a
June 21, 2004 date for a hearing to be held at the Wang Center on the University
campus at 6:00pm.

The Company remains committed to achieving Flowerfield's highest value for its
shareholders. The Flowerfield property is the subject of applications to develop
a luxury residential golf course community with 336 home sites. The property is
located on the prestigious north shore of Long Island, N.Y. President Stephen V.
Maroney stated that "the University has been threatening to condemn our property
for some time now and, with reference to their statement regarding a negotiated
purchase, has never made an offer with regard to this announcement. The abuse of
power to condemn and impede the approval of our applications is evident to all
of us at Gyrodyne and to many others in the surrounding community; over 2,000
resident taxpayers have filed a petition to stop these threats of intimidation
and encouraging fair play."

Maroney added "... we are confident in the fact that the significant value of
the property cannot be ignored, whether it be in a negotiated transaction or in
the Court system."

Executive Vice President Peter Pitsiokos stated that "unfortunately, the
University's neighbors are keenly aware that the University can promise anything
regarding future uses, but is not bound by those promises since they are not
subject to local oversight. By contrast, the law requires Gyrodyne to engage in
a thorough comprehensive review process which culminates with a legally binding
contract between the Company and the community".

Pitsiokos added "the University plan specifically leaves open the possibility of
additional development beyond that which it included in the DGEIS and that
potential has residents concerned about a negative impact on their real estate
values."

The statements made in this press release that are not historical facts contain
"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 risk inherent in the Long Island, New York real estate market, the
ability to obtain additional capital or a viable merger candidate in order to
develop the existing real estate and other risks detailed from time to time in
our SEC reports. We assume no obligation to update the information in this press
release.