BRSI Ballistic Recovery Systems Inc (CE)

Ballistic Recovery Systems, Inc. (OTCBB:BRSI) (BRSparachutes.com), a manufacturer of whole-airplane parachute recovery systems for general aviation and recreational aircraft, reported its earnings for the fiscal quarter ended March 31, 2006. The Company reported an increase of revenue of 11.9 percent to $2,366,069 from $2,115,148 in the same period a year earlier. Net income for the quarter ended March 31, 2006 was $(27,612), down from $75,322 a year earlier. BRS officials said that income declined in the current quarter due to costs associated with the start up operations in Mexico as well as interest costs associated with the new long-term debt. "We are pleased by the continued growth in revenue. Although we have posted a net loss for the first two quarters of 2006, we have successfully transitioned enough production into our new Mexico facility that we are now operating at slightly better than break-even point beginning in March 2006, just six months after the purchase. As we complete the certification requirements needed to move additional production into Mexico, we should begin realizing substantial cost savings going forward" said Donald R. Hedquist, BRS's Chief Financial Officer. 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 21,000 parachute systems to aircraft owners around the world including over 2,300 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, 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 (LarryWilliams@BRSparachutes.com) TEL 651.457.7491; FAX 651.457.8651