Ballistic Recovery Systems Enters into Letter of Intent for Acquisition

South St. Paul, MN – October 2, 2007 – Ballistic Recovery Systems Inc. today announced that it has entered into a non-binding Letter of Intent for the establishment of Advanced Tactical Fabricators (ATF), a subsidiary to be partially owned by Minnesota-based Head Lites Corporation following fulfillment of certain pre-conditions. The new company will acquire the Vis-Mat™, Vis-Tac™ and reflective components/trims assets of Head Lites Corporation and establish operations in St. Paul, Minnesota, Pine Bluff, North Carolina and Tijuana, Mexico.

The consummation of the transaction is subject to fulfillment of certain agreed conditions, principally the satisfactory completion of due diligence investigations. The definitive agreement is expected to be completed by the end of this year.

"This acquisition would reinforce our commitment to capitalize on what we believe are attractive long-term growth prospects in textile fabrication for aviation and non-aviation applications," said BRS CEO Larry E. Williams. "BRS believes that ATF would play a pivotal role by combining the strengths of BRS and Head Lites’ and could immediately improve our opportunity for top line growth and operational efficiencies.”

ATF would focus on the growing opportunity for textile fabrication operations and meet the need for United States-based sewing for parachutes and other products related to US Department of Defense work. Head Lites is a leader in the reflective safety products and had 2006 revenues of more than $3.5 million.

Head Lites President Gary Lesley said, "This agreement would merge the strong brands, technical expertise and market presence of our two companies. We also expect to achieve substantial synergies to further enhance the already profitable Vis-Mat, Vis-Tac and Head Lites brand components/trims business."

“We see our activities in establishing ATF as forming a very important part of our businesses diversification strategy,” commented BRS Chairman Robert L. Nelson.

Williams went on to add, “We believe the wealth of experience and expertise which we have accumulated from our BRS textile fabrication activities in Tijuana will enable us to excel in this new business line. The focus of ATF would broaden from our traditional ones – whole airplane parachutes - to include non-aviation safety applications. This transaction, if consummated, together with other projects previously announced by us, is ample evidence that we have the ability to overcome complexities and generate attractive business opportunities in other areas, therefore accomplishing our diversification strategy."

The forward looking matters discussed here should be considered subject to risks and uncertainties, including final consummation of the acquisition of assets from Head Lites Corporation, [the ability to maintain certain agreements and customers of Head Lites], the establishment of North Carolina manufacturing facilities, integration of the Head Lites acquired assets with our business,, 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.