SOURCE: BRS Aerospace

BRS Aerospace

June 18, 2010 16:00 ET

BRS Aerospace Announces Completion of Capital Restructuring

SOUTH ST. PAUL, MN--(Marketwire - June 18, 2010) -  Ballistic Recovery Systems, Inc. d/b/a BRS Aerospace ("BRS" or the "Company") of South St. Paul, Minnesota, USA (PINKSHEETS: BRSI) announced today that it completed a capital restructuring totaling $1.8 million in a combination of debt and equity. High F Inc., a private fund based in Miami, Florida, completed a series of investments in the Company, including the purchase of the Company's bank debt and restructured its existing debt notes in a transaction that includes new senior secured debt facilities and equity. 

"By completing the restructuring, we have resolved several outstanding issues with our lenders and achieved the goals of strengthening our balance sheet, reducing our cost of capital, and establishing a debt payment schedule consistent with the Company's cash flow generation," stated Larry E. Williams, President and CEO of BRS. "Over the last several months we have enhanced our cash flow and made important progress in improving the Company's balance sheet. By restructuring our capital we will be able to use our cash flow and enhanced access to financing to help fund the rapid expansion we are experiencing. Over the last six months, we have seen consistent improvement in revenue and cash flow, crowned by successive record sales for the Company in the last two months. With the decisive support of our largest shareholder, High F, we have eased the daily working capital pressure we have been experiencing. This now allows us to focus confidently on delivering on our strong growth prospects and profitability goals."

The transaction with High F includes new senior secured debt facilities and equity, whereby High F became the largest shareholder in BRS. In addition to facilitating a substantial increase to the Company's existing receivables financing arrangements, the new capital structure will allow BRS to seek further secured debt financing through commercial banks or SBA loan programs. The Company intends to use the proceeds from future financings to fund working capital and investments related to the growth in its operations.

"We are pleased that we have completed this refinancing which enhances value for our shareholders," added Williams. "The investments by High F over the last six months, including new equity, reflects a strong commitment on their part, as we focus on growing both our top and bottom lines. We are pleased with our investors' confidence in our management team and its ability to execute our strategy to become a significant player in the aerospace and defense industry."

About BRS Aerospace
Based in South Saint Paul, Minnesota, BRS Aerospace consists of three divisions: BRS Aviation which designs, manufactures, and distributes whole-aircraft emergency parachute systems for general aviation and recreational aircraft; BRS Defense which designs and manufactures a variety of parachute systems for US Department of Defense and foreign military customers; and BRS Safety which designs and manufactures reflective and load-bearing safety vests and other. Since 1981, BRS Aerospace has delivered more than 31,000 parachute systems to aircraft owners worldwide, including over 4,700 systems on FAA-certificated aircraft such as Cessna 172/182 and the new C-162 Skycatcher, as well as the Piper Sport LSA. To date, BRS Aerospace parachute recovery systems have been credited with saving the lives of 250 pilots and passengers.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words such as "anticipates," "expects," "plans," "believes," "intends," and other similar words or phrases. These statements are only predictions, and are based on current information and expectations. Such statements involve a number of risks and uncertainties, including market fluctuations, pricing, procurement, manufacturing efficiencies, operating risks, 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. All forward-looking statements are qualified in their entirety by this cautionary statement, and BRS Aerospace undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

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