Ballistic Recovery Systems (BRS) Releases Fiscal Year 2006 Results.

SOUTH ST. PAUL, Minn. -- Ballistic Recovery Systems, Inc. (OTCBB:BRSI)(BRSparachutes.com), a manufacturer of whole-airplane parachute recovery systems for general aviation and recreational aircraft, announced today a total of $9,191,729 in sales for the fiscal year ended September 30, 2006. This total represents an increase of 13.3% over the $8,115,544 in sales reported for the fiscal year ended September 30, 2005. The Company reported income before taxes of $45,577 for the year ended September 30, 2006 compared to a loss before taxes of ($1,762,764) for the year ended September 20, 2005.

Commenting on the results, Larry E. Williams, Chief Executive Officer said, "We are pleased with our fourth quarter and full year performance as well as our ability to achieve consistent growth in revenue and a return to profitability. We continued to benefit from ongoing market expansion efforts as reflected by the increase in sales over FY05, especially in the recreation/Light Sport Aircraft area where we saw 47 percent growth over last year. We are seeing unprecedented success in market acceptance of whole airplane emergency recovery parachutes. With the addition of new applications such as the Diamond D-Jet, we have undertaken a significant investment in operations and engineering to respond to market demand. Labor and operating expenses reflected continuing improvement and the early payment of debt associated with last year's legal settlement will result in lower overall interest expense over the $132,249 we experienced in FY06."

The Company also reported receiving notice of save number 199. "Our most important achievement is the result of the use of our products," commented BRS Chairman, Robert L. Nelson. He continued, "The Board earlier this year committed additional funding to research and development with the goal to increase applications and get our product on more airplanes. As we see the growing use of BRS systems, more and more lives will be saved."

Chief Financial Officer Donald Hedquist said, "We had great improvement in earnings notwithstanding the fact that we had increased insurance costs associated with the Cirrus product liability coverage, had increased debt payments, completed integration of the Mexican acquisition and met operational goals we set at the beginning of the year. The experienced management team, the strength of our international distribution network and certainly our successful renegotiation of the Cirrus contract, all contributed greatly to our improvement in FY06."

Some Highlighted Results of Operations for the Fiscal Year Ended September 30, 2006:

* Sales and G&A expenses improved from 29.4% of sales in FY05 to 27.9% in FY06

* R&D Investment increased from 4.4% of sales in FY05 to 5.1% of sales in FY06

* Payroll as a percent of sales reduced by 0.4% reflecting better labor utilization

* Interest expense increased to $132,249 in FY06 from $24,630 in FY05.

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 1981, BRS has delivered more than 25,000 parachute systems to aircraft owners around the world including over 3,000 systems on certified aircraft like the Cirrus Design aircraft manufactured in Duluth, Minnesota. To date, BRS parachute recovery systems have been credited with saving the lives of 199 pilots and passengers.

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 ([e-mail]) TEL [phone]; FAX [phone]