Ballistic Recovery Systems

Ballistic Recovery Systems, Inc. (BRSI), incorporated in 1980, designs, manufactures and distributes rocket deployed whole aircraft emergency parachute systems for use on general aviation and sport recreational aircraft. The emergency parachute systems are designed to bring down the entire aircraft and its occupants in the event of an in-air emergency. The parachute system is designed for in-air emergencies that include, but are not limited to, midair collisions, structure failure, engine out at night, engine out over unlandable terrain, pilot incapacitation and unintentional flight into certain meteorological conditions. In addition, the Company has designed and sold systems for use with various military and civilian unmanned aircraft. Since its inception, BRSI has delivered over 18,000 systems that have been installed on general aviation and recreational aircraft worldwide.

The Company's general aviation product lines accounted for 75% of its revenues during the fiscal year ended September 30, 2003 (fiscal 2003). Its primary general aviation product has been for the Cirrus SR20 (SR20) and SR22 aircraft manufactured by Cirrus Design Corporation. Sales to Cirrus Design accounted for 74% of revenues for fiscal 2003. Cirrus Design is manufacturer of single-engine certified aircraft. Both models of Cirrus Design's aircraft utilize the Company's parachute system as a required standard equipment feature. In addition, BRSI began delivering its aftermarket Federal Aviation Administration (FAA)-certified parachute system for the Cessna 172 aircraft called the BRS172. The development of the parachute systems for the SR20 and SR22 aircraft was a joint effort between the Company and Cirrus Design. The Company has retained the developed technology for the parachute systems in general and Cirrus Design has retained the developed technology that is specific to their individual aircraft.

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