SOUTH ST. PAUL, Minn., Aug. 15 /PRNewswire-FirstCall/ -- Ballistic Recovery Systems, Inc. (OTC:BRSI) (BULLETIN BOARD: BRSI) ( http://brsparachutes.com/ ), a manufacturer of whole-airplane parachute recovery systems for general aviation and recreational aircraft, reported today a total of $2,112,091 in sales for the third quarter of fiscal year 2005. This total represents an increase of 20.3 percent over the $1,755,944 figure reported over the same period in fiscal year 2004. On a year-to-date basis fiscal year 2005 sales figures are at $6,093,862, which is 35.9 percent higher than comparable fiscal 2004 figures of $4,482,833. Net income for the third quarter was $41,769 versus $56,831 for the previous third quarter's results. On a year-to-date basis -- net income was $168,946 versus 2004 $60,183. Commenting on the results, Larry E. Williams, Chief Executive Officer, said, "The general aviation segment continues to show strength and produced year-to-date sales of $6.1 million, approximately 36 percent higher than 2004. Quarterly net income fell to 2 percent of total sales from 3.2 percent in the previous quarter as we have boosted our investment in the company through increased spending on research and development, production equipment repairs, maintenance and upgrades to meet the strong growth in sales. The operating margin through the first nine months was 38.7 percent of total sales compared with 32 percent for the same period last year due to improvements in cost management and labor utilization. Lower selling prices as a result of intense price competition in Europe and higher legal, healthcare and employee costs all contributed to the lower net income for the quarter. This trend is likely to continue. The markets for both our general aviation and sport products are improving and we have been investing aggressively in research and development." On May 25, 2005, the Company filed an amended 10KSB for the year ended September 30, 2004 in connection with the restated valuation of certain warrants issued to Cirrus Design Corporation that became exercisable during the year ended September 30, 2004. The restatement was to decrease sales, gross profit, income from operations and income before income taxes by $369,831, decrease the income tax expense by $146,700 and decrease net income by $223,131 for the year ended September 30, 2004. The restatement increased total assets, deferred tax asset -- current and shareholders' equity by $146,700 as of September 30, 2004. In addition, the basic earnings per common share and diluted earnings per common share decreased by $.03 and $.04 for the year ended September 30, 2004, respectively. On August 12, 2005, the Company filed amended 10QSB's for the first three quarters of fiscal year 2004 in connection with this revaluation. BRS is a South St. Paul, Minnesota, based company that designs, manufactures and distributes whole-plane emergency parachute systems for use on general aviation and recreational aircraft. Since the early 1980s, BRS has delivered more than 20,000 parachute systems to aircraft owners around the world including over 2,000 systems on certified aircraft like the Cirrus Design aircraft manufactured in Duluth, Minnesota. The forward looking matters discussed here should be considered subject to risks and uncertainties, including market fluctuations, pricing, procurement, manufacturing efficiencies, the results of litigation 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. DATASOURCE: Ballistic Recovery Systems, Inc. CONTACT: Robb Leer, +1-612-701-0608, or , for Ballistic Recovery Systems, Inc.; or Larry E. Williams of Ballistic Recovery Systems, Inc., +1-651-457-7491, or Web site: http://brsparachutes.com/

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