Ballistic Recovery Systems, Inc. and Charles F. Parsons and Aerospace Marketing, Inc. Reach Settlement
September 20 2005 - 5:30PM
PR Newswire (US)
Whole-airplane parachute manufacturer looking forward to future
success in saving lives SOUTH ST. PAUL, Minn., Sept. 20
/PRNewswire-FirstCall/ -- Ballistic Recovery Systems, Inc.
(OTC:BRSI) (BULLETIN BOARD: BRSI) ( http://brsparachutes.com/ ),
announced today that it has reached a settlement that resolves all
claims in a breach of contract suit involving Charles F. Parsons
and Aerospace Marketing, Inc. (collectively," Parsons"). The
lawsuit, relates to the termination of the sales and marketing
contract between the Company and Parsons relating to the GARD-150
and GARD-172 products. Under the terms of the settlement, BRS
agreed to pay Parsons $1.9 million over an eight year graduated
payout schedule. In July of 2005, a Jury verdict against BRS
awarded Parsons $3.4 million in damages. This negotiated settlement
brings to an end the business relationship established for Parsons
to have the exclusive rights for the BRS-172 product designed for
the Cessna aftermarket. Commenting on the results, Larry E.
Williams, the Chief Executive Officer of BRS, said, "The settlement
terms allow BRS to continue on its growth path in selling aviation
safety products while not adversely affecting ongoing operations.
It is unfortunate that this matter required legal intervention.
This settlement represents an opportunity for BRS to move on and to
continue the product development and market penetration that has
made us so successful for 25 years. Moreover, we have the
capability to pay this settlement over time with minimal impact to
operations." "We are excited to once again direct 100 percent of
our focus and effort to providing our customers with truly
outstanding aviation safety products backed by personal customer
service," Williams said. 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 1980's 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, Minn. To date, BRS
on-board emergency parachute systems have been credited with saving
181 lives. 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. 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 612-701-0608 ( ) DATASOURCE: Ballistic Recovery
Systems, Inc. CONTACT: Robb Leer, +1-612-701-0608, , or Larry E.
Williams of Ballistic Recovery Systems, Inc. (BRS),
+1-651-457-7491, Web site: http://brsparachutes.com/
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