Exhibit 99.1
Gyrodyne Company of America, Inc.
1 Flowerfield, Suite 24
St. James, New York 11780-1551
Phone (631) 584-5400 Fax (631) 584-7075
March 15, 2007
Gyrodyne Company of America, Inc.
1 Flowerfield, Suite 24
St. James, New York 11780
FOR IMMEDIATE RELEASE
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***** NEWS ***** NEWS ***** NEWS ***** NEWS ***** NEWS ***** NEWS *****
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Gyrodyne Announces Special $4 Per Share Distribution
"NASDAQ:GYRO" - ST. JAMES, N.Y., March 15, 2007- Gyrodyne Company of America,
Inc. announced today that its Board of Directors has declared a special cash
distribution of $4.00 per share. This special cash distribution will be paid on
April 9, 2007 to all shareholders of record as of the close of business on March
26, 2007.
At Gyrodyne's 2006 Annual Meeting of Shareholders, the Board reiterated that
Gyrodyne's strategic objective is to realize one or more liquidity events in a
reasonable period of time that places the maximum amount of cash or marketable
securities in the hands of its shareholders in a tax-efficient manner. This
special distribution will enable shareholders to benefit directly from a portion
of the proceeds of the $26.3 million advance payment received from the State
University of New York at Stony Brook in connection with the condemnation of 245
acres of Gyrodyne's Flowerfield property.
For income tax purposes, distributions paid to shareholders may consist of
dividend income, capital gains, and non-taxable return of capital, or a
combination thereof. Distributions that exceed current and accumulated earnings
and profits constitute a return of capital rather than taxable income to the
extent of a shareholder's tax basis in his or her shares. To the extent that a
distribution exceeds both current and accumulated earnings and profits and the
shareholder's tax basis in his or her common shares, it generally will be
treated as a gain from the sale or exchange of that shareholder's shares. The
amount of this special distribution exceeds Gyrodyne's accumulated earnings and
profits and is expected to exceed Gyrodyne's current earnings and profits, and
thus the receipt may be tax efficient for shareholders depending on their tax
basis in the stock. All shareholders are urged to consult their tax advisors as
to the particular tax consequences applicable to them.
Gyrodyne's corporate strategy includes the conversion to a real estate
investment trust ("REIT") and disposition and redeployment of Gyrodyne's assets
in a tax-efficient manner. Gyrodyne is pursuing a zoning change of the remaining
68 acres at Flowerfield and is vigorously pursuing the highest and best use
value from the State of New York for the 245.5 acres taken by eminent domain.
Work on rezoning of the Callery-Judge Grove is active and continuing.
Stephen V. Maroney, Gyrodyne's Chief Executive Officer, stated that "the Board,
with the assistance of our advisors, performed an analysis of several possible
uses of the proceeds of the advance payment received from the State of New York,
taking into consideration future requirements, and determined that a special
cash distribution to our shareholders represents the alternative that best meets
our strategic objective of maximizing after-tax shareholder value. It presents a
mechanism to place cash in the hands of our shareholders in a tax-efficient
manner now, as we continue to pursue additional liquidity events in a
tax-efficient and orderly fashion."
Forward-Looking Statement Safe Harbor
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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 risks inherent in the Long Island, New York and Palm Beach County,
Florida real estate markets, 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.
About Gyrodyne Company of America, Inc.
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Gyrodyne owns a 68-acre site approximately 50 miles east of New York City on the
north shore of Long Island. 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 3,500 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/.
MEDIA CONTACT: Rick Matthews, Rubenstein Associates, (212) 843-8267