Ballistic Recovery Systems to Restate 2004 Year End Financial Statements SOUTH ST. PAUL, Minn., May 24 /PRNewswire-FirstCall/ -- Ballistic Recovery Systems, Inc. (OTC:BRSI) (BULLETIN BOARD: BRSI) ( http://brsparachutes.com/ ) today reported that in response to comment letters from the Securities and Exchange Commission (SEC) regarding the value of certain warrants issued to Cirrus Design in 1999, it would restate its 2004 Year End financial statements. The restatement revolves around BRS's valuation of the warrants that were to be acquired by Cirrus, a total of 650,000 shares of the company's common stock at an exercise of $1.25 per share provided Cirrus met a certain purchase commitment to BRS. The Company has recalculated the warrant value to show an additional sales reduction of $369,831. The impact of the recalculation is prompting the Company to restate its Year End financial statements for 2004. The Year End financial restatement reduces sales, income from operations and income before income taxes by $369,831 and net income by $223,131. The restatement increased total assets, deferred tax asset-current and shareholders' equity by $146,700 as of September 30, 2004. In February of 2005, Cirrus Design exercised their options on an additional 650,000 shares of BRS stock, brining its total beneficial ownership to 15.3%. The stock warrant purchase impacted final sales and income figures that were reported earlier by BRS for Financial Year 2004. Robert L. Nelson, Chairman of the Board, said, "Cirrus is our second largest BRS shareholder, it's that commitment to aviation safety that has us positioned for continued growth in sales and product development, this adjustment further clarifies our position of strength in the marketplace." The stock warrant was the last of 4 sets of options that were granted to Cirrus Design under a volume purchasing contract signed in September 17, 1999. BRS also announced they will be filing the restatement and an amended 10-KSB for the year ended September 30, 2004. In the company's 25 year history, BRS has sold nearly 20,000 of its whole- plane parachute systems; BRS units have been documented to have saved over 177 lives. In April, BRS was honored as one of the best of the best in Aerospace & Technology when they were presented a Laureate Award by Aviation Week magazine as the recipient as the top Business and General Aviation Company in 2004 The forward-looking matters discussed here should be considered subject to risks and uncertainties, including market fluctuations, pricing, procurement, manufacturing efficiencies, and other risks that could cause the actual results to differ materially from those projected. For more information, review the company's filings with the Securities and Exchange Commission, particularly the Company's annual report on Form 10-KSB. For more information on BRS contact: Larry E. Williams; BRS, Inc: Fleming Field, 300 Airport Road; South St. Paul, MN 55075; USA ( ) TEL 651.457.7491 ; FAX 651.457.8651 or Robb Leer media liaison at 952-842-8133 ( ). DATASOURCE: Ballistic Recovery Systems, Inc. CONTACT: Robb Leer for Ballistic Recovery Systems, +1-612-701-0608; or Larry E. Williams of Ballistic Recovery Systems (BRS), +1-651-457-7491 or Web site: http://brsparachutes.com/

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