Company Says "Several Issues" With Lenders Resolved

Ballistic Recovery Systems (BRS) of South St. Paul, MN announced Friday 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 financing to fund working capital and investments related to the growth in its operations.

"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," Williams added. "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."

FMI: www.BRSAerospace.com