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GAC

Groen Aeronautics Corporation

Revolutionizing Vertical Flight

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GAC

“A gyroplane is an airplane that doesn’t need a runway!”

http://www.GroenAeronautics.com/

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GAC

DARPA Chose GBA For Heliplane Project

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Groen Brothers Aviation (GBA) is Groen Aeronautics Corporation Predecessor

Selected by the US Department of Defense to: Lead development of the DARPA Heliplane

Phase 1 successfully completed with all program goals having been met 400 mph VTOL gyrodyne 1,000 nm range & 1,000 lb payload HOGE (Hover Out of Ground Effect) at 4,000 ft and 95°(4k/95 = density altitude of ~7,800 ft) at

Max Gross Weight and climb out vertically from that high altitude out of ground effect hover!

Patented and proprietary advanced technology for Gyroplanes and Gyrodynes: Approximately 40 patents issued (or approved for issue) of a total of more than 60 either

issued, pending, or under application. The work on DARPA Heliplane generated many patents of advanced technology that can be used throughout GAC’s aircraft designs.

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GAC

High Lift/Drag Ratio~10 (efficient cruise)

400 mph Max Cruise Speed with 1,000 nm Range and 1,000 lb Payload

Wing Carries Majorityof Lift at 400 mph

Rotor Essential for Hover, VTOL, and Low Speed FlightTwin Turbofan

Forward Propulsion

Enable a > 2X Increase over Helicopter Max Cruise Performance

Low Disc Loading (downwash similar to conventional helicopters)

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DARPA Heliplane Goals Met

Hover: HOGE 4k/95o (at max gross weight)

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GAC

Most Powerful Rotorwing Science Team

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7 winners of the American Helicopter Societie’s most prestigious award for a life of excellence in rotorwing science: the Alexander A. Nikolsky Award

This team also included the top rotorwing scientists from: NASA & NASA Ames Research Center US Government DoD US Army’s AFDD (Aeroflightdynamics Directorate) Rotorwing Industry’s Highest Ranking Engineers Senior Engineering Professors:

Georgia Institute of Technology University of Maryland Penn State University Utah State University University of Arizona Washington University St. Louis

The Most Powerful Rotorwing Science Team Ever Assembled

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GAC’s Advanced Gyroplane Designs

Hawk “Point Five”

RevCon 6 Gyroplane

SparrowHawk GyroplaneHawk Ranger Gyroplane (Turbine)

H2X Gyroplane

Hawk 1 Gyroplane

Hawk 4 Gyroplane (Piston)

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GAC

The Future of Rotorwing Aviation

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GAC

Runway Independent Airliners Transform Airline Industry by Providing Rescue from Airport Gridlock

Currently more than 40% of runway operations are commuter distances

Nearly all of these can be operated ‘off runway’ by Runway Independent Aircraft (“RIA”) GyroLiners

Runway capacity is nearly doubled for large, profitable aircraft, each of which carry on average twice the passengers as commuter airliners

This means > 50% increase in the number of people and higher earnings for airlines and associated shops, restaurants, hotels, ground transport, etc.

Create City-Center to City-Center Airline Transport Airline passenger terminals downtown with no need for runways

Allows Rollout of Ultra-Short-Strip Airports in undeveloped countries

GAC GyroLiner: Runway Independent

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Size From 19 Passengers to 100 Passengers with Baggage

Cargo Variants in similar sizes to the passenger versions

Performance 350 mi (563 km) Range with IFR Reserve

240 mph (378 kph) Cruise

1.5 hrs to fly 350 miles

Operations Vertical Takeoff and Landing (VTOL), or

Ultra-Short Takeoff and Landing (U-STOL), both permitting RIA operations: the ultra-short ground roll distance is approximately 1.5 times the GyroLiner’s rotor diameter permitting a 10% to 20% increase in useful load

Pressurized Comfort with All Weather Reliability (flight into known icing conditions – very rare for rotor-wing aircraft yet easy to do with a GAC GyroLiner)

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GAC GyroLiner: Baseline Design Criteria

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Partner w/ Commuter Airliner Manufacturers

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Relatively Easy Conversion of the Existing Design of Production Runway Dependant Commuter Airliners to Runway Independent GyroLiners

Significant Savings in GyroLiner Development Time

Significant Savings in the Cost of: Design and Development of the Airframe and all of its Systems

Type Certification and Production Certification

Establishment of World Wide Product Support

These Savings Exist Because: FAA/EASA Qualified Engineering for the Airframe Exists (except rotor related)

FAA/EASA Qualified Supplier Chain for the Airframe Exists (except rotor related)

FAA/EASA Qualified Manufacturing Facility, Manufacturing Plan, Assembly Line, and Tooling & Fixtures Exists (except rotor related)

A Trained and ‘Learning Curve’ Experienced Production Workforce

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GAC

GyroLiner History - The Fairey Rotodyne

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The world’s first Runway Independent Airliner!

Even today, the Rotodyne would still be the fastest way to get from downtown London to downtown Paris!

200 mph when most helicopters could barely fly 100 mph!

VIDEOS

Promotional Video of the Rotodyne, by Faireyhttp://www.youtube.com/watch?v=y9633v6U0wo

Explanation of the Rotodyne program end.http://www.youtube.com/watch?v=wKlOfpCw8aE (Including interview of Sir David Gibbings, the Chief Flight Test Engineer on the Rotodyne and a long friend of David Groen.)

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GAC

GAC’s sustained autorotative flight aircraft technologies in the form of gyroplanes offers the world affordable Runway Independent Light Aircraft:

The GAC ArrowHawk: Advanced Composite (Models: 6, 7, 8, 9 seat single-engine; 10, 12, 14 seat multi-engine) Air Taxi & Tour Guide Agricultural Aerial Application (AG) Executive Transport & Package/Cargo Transport Airborne Law Enforcement

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The GAC ShadowHawk: Advanced Composite Tandem 2 Seat Gyroplane FAA/EASA Type Certified Aerial Patrol of Infrastructure:

Power Line, Pipeline, Waterway, Roadways, Land Survey, Fish & Wildlife, etc.

Airborne Law Enforcement : Police, Border Patrol, Coastline Patrol,

Security, Surveillance, etc.

The GAC ScoutHawk LSA: Civil Personal Light Sport Aircraft (SportHawk) “Small Town” Airborne Law Enforcement

(ScoutHawk)

GAC Advanced Hawk Series Gyroplanes

GAC ShadowHawk Gyroplane

GAC ArrowHawk Gyroplane

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ArrowHawk: Baseline Design CriteriaDesign Speeds @ Sea Level - Int. Standard Atmosphere (S/L ISA)

Vc Cruise Speed: 184 mph (297 km/h)

VH Max Cruise Speed / Dash speed at MCP: 198 mph (319 km/h)

Vne Never to Exceed Speed: 209 mph (337 km/h)

Range ISA, best range speed, normal fuel cap 739 mi (1190 km)

Weight Design Maximum Gross Weight: 4410 lb (2000 kg)

Empty Weight target: 1820 lb (825 kg )

Useful Load: 2180 lb (989 kg)

Seating and Cargo Data Seating single-engine (6, 7, 8, & 9) Pilot and 6, 7, or 8 Passengers

Seating multi-engine (10, 12, & 14) Pilot and 9, 11, or 13 Passengers

Baggage compartment capacity (7 seat): 25.44 cu ft (0,72 cu m )

Cabin space (7 seat): 1 Pilot and 179.04 cu ft (5,07 cu m )

* Note: each seating configuration of both single and multi engine versions are of different airframe sizes & engine hp.

Confidential

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ShadowHawk: Baseline Design Criteria Airborne Patrol Vehicle

The ShadowHawk is an advanced-composite FAA/EASA Type Certified tandem two-seat gyroplane designed for patrol and surveillance roles

The tandem two-seat configuration and composite light-weight fuselage of the ShadowHawk translates into:

Higher speed, greater range, and greater useful load capabilities with lower power requirements, lower noise-levels, and low observability, each important attributes in a patrol aircraft

With a relatively economical price tag & operating costs, the ShadowHawk is a valuable and cost-effective “force multiplier” that offers much greater surveillance coverage per dollar spent when compared to other ground-based methods

Easy to fly “hands-off-stable,” VTOL, low maintenance, reliable & mission ready, and unmatched safety!

* Note: the ShadowHawk comes in 5 variants depending upon performance and altitude use requirements of end user.

GAC ShadowHawk Gyroplane

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GAC

The ScoutHawk LSA is designed for the personal Light Sport Aircraft market but will also be desirable by Law Enforcement Entities who otherwise would not be able to afford “eyes-in-the-sky”

The ScoutHawk LSA enjoys the low weight and power advantages of its composite fuselage

This enables the ScoutHawk LSA to meet the max-gross-weight restrictions of international ASTM regulations making the product viable in many countries around the world while providing acceptable payload and range

The ScoutHawk LSA Gyroplane is VTOL and still meets ASTM’s LSA “non-complex” requirements

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GAC ScoutHawk Gyroplane

ScoutHawk LSA: Baseline Design Criteria

The ScoutHawk is also called the “SportHawk” when used for light sport aviation rather than airborne law enforcement roles, though there are some minor differences between these models

Confidential

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Military – High-Speed VTOL Gyrodyne

Fast! – 400 mph

Long Range! – 1,000 nm

Gyroplane Simplicity!

Vertical Takeoff and Landing!Hover! – HOGE @ 4k/95o

Heliplane

Confidential

GAC

Gyrodyne – Tip Jets

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A Gyrodyne, as shown in the diagram above, is a gyroplane to which thrust-jets (reaction drives) are added to the rotor tips to power the blades, enabling both hovering and substantial lifting capacity. In forward flight, the tip-jets are turned off and the rotor flies in autorotation like a gyroplane, greatly extending its range while still maintaining a fraction of the complexity of helicopters.

A Gyrodyne is a gyroplane whose rotors are powered for takeoff, hovering, and landing, and can be powered for forward flight through part of its speed range. The GAC Gyrodyne Rotors are powered by thrust-jets (reaction drives called “tip-jets”) added to the tips of the rotor blades. In forward flight, the tip-jets are turned off and the rotor flies in sustained autorotation like a gyroplane, greatly extending its speed, range, and load carrying ability while still maintaining a fraction of the complexity of helicopters.

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* Tip-jets only on during take off and landing

Powered Components Comparison

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Sustained Autorotative Flight

The core of GAC’s Gyroplane and Gyrodyne technology is GAC’s unparalleled understanding of sustained autorotative flight. Autorotation is the ability of a free-spinning rotor to generate lift.

For a Gyroplane in forward flight, as shown in the diagram above, the unpowered rotor creates lift through autorotation, with forward thrust provided by an engine-driven propeller(s) or by jet engine(s).

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GAC

Advantages of Sustained Autorotative Flight

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Performance, Reliability,Mission Readiness, Cost & Profitability,

and Safety

Multi-engine ArrowHawk 10 Twin

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VTOL (vertical takeoff and landing): Mechanical Prerotation of the Rotor in Hawk Series

Cold Air Tip Jet Prerotation for the GAC GyroLiner

Hover Power Tip Jets with burners, for the Heliplane and GAC GyroLifter Gyrodyne aircraft (primarily military)

Not constrained by the physics-imposed speed, range, and payload limitations of a helicopter! Gyroplanes offer substantial performance advantages:

Higher speed,

Greater range, and

Higher payload efficiencies.

Advantages of Sustained Autorotative Flight

Performance

Hawk 4 Flying for theUtah Olympic Public Safety Command

Hawk 4 Near Phoenix Arizona

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GAC

Design Simplicity – Much less complicated than helicopters which are far less complicated than tilt-rotor aircraft – thus, next to airplanes, gyroplanes and gyrodynes are the least complex of all

Reliability – Far fewer moving parts means fewer problems

Mission Readiness – Far less maintenance required to remain airworthy, so nearly always available

Lower acquisition and operating costs – The pocketbook benefits of simplicity

Cost and Profitability – Low Cost = High Profitability: lower complexity, maintenance, acquisition cost, and operational costs = much higher profitability

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Advantage of Sustained Autorotative Flight (cont.)

Reliability & Mission Readiness

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GAC

Lower Acquisition Costs* – Est. Savings: 25% Other than the airplane type engine and propeller, in flight the only moving parts are a free-spinning rotor

with a few bearings – helicopters are “moving parts flying in formation!”

Maintenance – Est. Savings: 50% (conservative) GAC estimates maintenance costs at approximately 20% above fixed-wing costs which are far below

those of a helicopter

Fuel costs – Est. Savings: 15% Lower empty weight (less necessary equipment) and better flight performance (separation of lift and

propulsion) means less fuel and lubricants required

Insurance – Est. Savings: 25% Sustained autorotative flight is safer, and there is no tail rotor – a prime cause of accidents

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Cost Savings Affect on Profitability

*GAC anticipates that the maintenance and operational costs savings will create enough demand to allow sales prices to rise above helicopter prices and still

cost the end user less. This makes even higher profits for the Company!

Advantage of Sustained Autorotative Flight (cont.)

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A-Star ArrowHawk Cost/Hour $1,096 $857 Cost/Trip (30 min) $548 $428 Trip Cost/Passenger Seat $91 $71 Avg Annual Utilization (hrs.) 1,200 1,200      Profitability Analysis     Ticket Price (30 min) $120 $120 Passenger revenue per hour $1,440 $1,440 Gross Profit per hour $344 $583 Gross Profit Margin 24% 41% Profit Advantage Gyroplane 70% More Profit!      Ticket Price (30 min) $100 $100 Passenger revenue per hour $1,200 $1,200 Gross Profit per hour $104 $343 Gross Profit Margin 9% 29% Profit Advantage Gyroplane 230% More Profit!      Ticket Price (30 min) $90 $90 Passenger revenue per hour $1,080 $1,080 Gross Profit per hour ($16) $223 Gross Profit Margin -1% 21% Profit Advantage Gyroplane Essentially Infinite

The key issue is profitability! Even though “cost per 30min”

comparisons shows the ArrowHawk cost at 3/4th that of the A-Star, the ArrowHawk Gyroplane profitability can easily be significantly higher than a typical helicopter!

At existing Aerial Tour-Guide ticket prices, the ArrowHawk Gyroplane would have a profit that is 70% more than the A-Star.

At a price that is too low for the A-Star to be profitable, the ArrowHawk still has profit of $223 per hour.

Being able to offer a lower seat price can significantly increase total revenue. A lower price instantly grows the size of the market since the lower the price, the more affordable it becomes to even more people.

Helicopter v. ArrowHawk Gyroplane ComparisonAerial Tour Guide: Profit Advantage Gyroplane

A-Star and ArrowHawk each at 1,200 hours per year.

Confidential

GAC

Engine failure No runway required – all airplanes need a long, hard, flat surface; a gyroplane engine out can land softly anywhere it fits Pilot actions minimal – simply steer to landing area and land; helicopters require highly skilled, practiced, immediate pilot action Glide path 3 times farther than helicopter – provides a 9 fold increase in the landing area available Rate of descent lower – giving more time for pilot to make his emergency decisions; helicopter pilots must act, no time for

decisions

Cannot Stall – Will not stall and fall! Airplanes if flown too slow stall and fall – most common during takeoff

and landing when too close to the ground to recover Gyroplanes if flown too slow to maintain level flight will begin to

descend right side up and controllable even at zero forward airspeed,

simply lower the nose to fly out of the decent

Highly Stable “Hands off” stable! - pilot training is easier and less expensive

Lack of Complexity with Few Moving Parts Fewer moving parts means fewer “in-flight-failure” risks

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GAC Ag Hawk Gyroplane Crop Spraying

SAFETY!

Properly designed, Sustained Autorotative Flight Aircraft are the safest form of powered flight ever invented!

Advantage of Sustained Autorotative Flight (cont.)

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GAC benefits from more than twenty-five years and well more than a hundred million dollars in the Science, Engineering, and Research & Development of Advanced Sustained Autorotative Flight aircraft.

Aerospace Industries Association (AIA in the US) has said “What the Wright Brothers did for the airplane, the Groen Brothers are doing for the gyroplane today” [Groen Brothers Aviation is the predecessor to Groen Aeronautics Corporation “GAC”]

Rotor & Wing magazine stated that “the Groen Brothers [Heliplane] team amounts to a powerhouse of rotorcraft research,”

Boeing has said “…no one understands autorotative flight better than GBA”

There have been more than 400 news stories published about GBA and its aircraft, in Magazines, Newspapers, Radio, and local and national TV news, including: The Hawk 4 Gyroplane was featured as the cover story on Aviation Week and Space Technology and

Time Magazine chose the Hawk Gyroplane as one of the 100 most important new technologies National Geographic Chanel aired a story on the Hawk 4 Gyroplane and GBA’s participation in security for

the 2002 Olympic Winter Games; the Discovery Channel and the History Channel each aired stories about this company’s capabilities and aircraft.

Recognized Leader in Gyroplane Technology

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Deutsches Zentrum für Luft und Raumfahrt e.V., (Germany’s equivalent to US NASA) Institute of Flight Systems’ Director and Head of Institute, visited GBA (now GAC) in mid 2009 stating that they expect the future of rotorcraft and commuter transportation to be sustained autorotative flight, stating that GBA is the only company in the world who fully understands this technology and is ahead by 20 years.

Successfully completed 7 experimental flight test programs on increasingly more sophisticated gyroplanes, including the Hawk 4 Gyroplane – the world’s first turbine-powered gyroplane

The Hawk 4 Gyroplane flew an eight week security mission for the 2002 Winter Olympics – the only rotorcraft that remained available and airworthy 24/7 for the whole of the mission: The Hawk 4 Gyroplane has been flying since 1999 and has flown hundreds of hours without incident or

accident

Recognized Leader in Gyroplane Technology (cont.)

Multi-engine ArrowHawk 12

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45 years in leadership roles, 30 years in executive leadership of Groen Brothers Aviation the predecessor of Groen Aeronautics Corporation, with 27 years as its President and CEO, becoming Chairman of the Board in 2006 and now Chairman, President, & CEO of Groen Aeronautics Corporation Led in the creation of its patented technologies and many aircraft including:

Hawk 4 Gyroplane: World’s first turbine-powered gyroplane

Heliplane: Department of Defense Program designed to develop a 400 mph long range rotorcraft

Prior Executive & Management positions covering multiple activities including: Chief Financial Officer (CFO) and Chief Operating Officer (COO)

Operations Manager, Safety Officer, and Branch Manager

Chief Pilot and Lead Pilot

Emergency Medical Services, Power Line Construction, Forest Fire Fighting, Off/On Shore Oil Drilling, Seismic Oil Exploration, USGS Topographic Survey, U.S. Fish & Wildlife Survey, and many others

Combat Pilot Aircraft Commander and Air Mission Commander in Vietnam flying hundreds of combat sorties, a significant number of which were led by Mr. Groen

7,000 Hours of Flight Time in Rotary Wing & Fixed Wing Aircraft

David Groen, FRAeS Chairman, President & CEO

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GAC

Co-Founder of Carter Global, a financial consultancy firm

38 years of experience in business and finance

Nonprofit humanitarian experience with The Carter Center (http://www.cartercenter.org)

University of Georgia School of Law, J.D.

Georgia Institute of Technology, BS in Physics

U.S. Navy ETR2 Vietnam

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John W. Carter Member of the Board of Directors

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GAC

Mankind went from the Stone Age to the Agrarian Age to the Industrial Age and finally to the Information Age. And now comes the Transportation Age as life’s current “bottle-neck to progress” can now be resolved by affordable Runway Independent Aircraft!

Groen Aeronautic Corporation’s development of runway independent airliners can have an impact on the world’s transportation system, the likes of which have not been seen since the advent of the Jet Age.

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Final Comments

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GAC

Groen Aeronautics Corporation