EXHIBIT 99.1
                                  PRESS RELEASE

                        Gyrodyne Company of America, Inc.
                         ADOPTS SHAREHOLDER RIGHTS PLAN

            St. James, New York, August 13, 2004 -- The Board of Directors of
Gyrodyne Company of America, Inc. has adopted a Shareholder Rights Plan and
declared a dividend of one Right on each outstanding share of the Company's
Common Stock. The dividend will be paid to shareholders of record on August 27,
2004.

            "The Shareholder Rights Plan is not being adopted in response to any
specific acquisition or merger proposal and the Company is not aware of any such
proposals," said Stephen Maroney, President and Chief Executive Officer. "The
Rights Plan is designed to guard against partial tender offers and other
coercive tactics that can be used to gain control of the Company and deprive
shareholders of the full value of their investment. The Board determined that
adopting the Rights Plan would give the Board additional leverage to protect
shareholder value in the event that any person or group makes an effort to gain
control of the Company at an inadequate price."

            Initially, the Rights will trade with the Common Stock of the
Company and will not be exercisable. The Rights will separate from the Common
Stock and become exercisable when any person or group of affiliated persons
acquires or makes an offer to acquire 20% or more of the Company's Common Stock.

            In the event that any person or group, without the Board's approval,
acquires 20% or more of the Company's Common Stock, then each holder of a Right
(other than such person or group) shall thereafter have the right to receive
upon exercise of such Right and payment of an exercise price of $75.00 (the
"Exercise Price") shares of Common Stock having a value equal to twice the
Exercise Price. Also, if the Company is acquired in a merger or sells more than
50% of its assets or earning power at any time after a person or group acquires
20% or more of the Company's Common Stock without board approval, each Right
will entitle its holder (other than the acquiring person or group) to purchase
shares of common stock of the acquiring company having a market value of twice
the Exercise Price. If any person or group acquires at least 20%, but less than
50%, of the Company's Common Stock, the Board of Directors may, at its option,
exchange one share of Common Stock for each Right (other than Rights held by
such person or group).

            The Rights Plan is not intended to and will not prevent a takeover
of the Company at a full and fair price, including a tender or exchange offer
for all outstanding shares of Common Stock of the Company approved by a majority
of the Board of Directors. However, the Rights Plan may cause substantial
dilution to a person or group that, without prior Board approval, acquires 20%
or more of the Company's Common Stock, unless the Rights are first redeemed by
the Board.

            The Rights may be redeemed by the Board of Directors for $0.005 per
Right and will otherwise expire on August 11, 2014.

            Shareholders will receive a summary of key terms of the Rights Plan
by mail. Detailed information and a copy of the Rights Plan will be filed with
the Securities and Exchange Commission.

            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.