CirTran Forms Products Division to Sell Directly to Major Retailers; Also Reports Success in Two Legal Issues

Business Wire, Dec 2, 2005

SALT LAKE CITY -- CirTran Corp. (OTCBB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, announced today that it has formed CirTran Products, which will offer products for sale at retail.

Iehab J. Hawatmeh, CirTran's founder and president, said the division will be run from CirTran's new Los Angeles office with Trevor Saliba, the company's executive vice president for worldwide business development, spearheading sales.

"CirTran is currently in the process of becoming a 'vendor of record' so as to sell directly to large retailers in the U.S.," he said. "It is our hope and expectation that consumer products built by our CirTran-Asia subsidiary, as well as products we will acquire for merchandising, will be on retailers' shelves by the end of the first quarter of 2006."

'Exciting New Venture'

Hawatmeh called the formation of CirTran Products "an exciting new venture for the company, its employees, and most of all, for our shareholders.

"CirTran will bring products to market that have existing demand, as well as products new to the U.S. consumer marketplace, including licensed merchandise in sports, racing and entertainment," he said.

"CirTran-Asia was formed in 2004, and has become a driving force in our achieving profitability over the last two quarters," Hawatmeh said. "Now our plan is to leverage and build upon that success with our new CirTran Products Division."

Two Victories in Court

Hawatmeh also announced two recent "victories" by CirTran in court.

He said U.S. District Judge Bruce Jenkins (U.S. District Court for the District of Utah) ruled in favor of CirTran-Asia, keeping its claims against International Edge Inc., in Utah. International Edge's affiliate, Telebrands, produces infomercials and markets products, including the AB King Pro, on TV in Europe.

CirTran-Asia's claims against International Edge are included in an action brought by CirTran-Asia against TV infomercial marketer Michael Casey, Michael Casey Enterprises Inc., David Hayek, one of Casey's business associates, and HIPMG Inc., Hayek's company which works with Asian manufacturers.

"International Edge filed a motion to dismiss, arguing it did not have sufficient contacts with Utah for the U.S. District Court in Utah to exercise personal jurisdiction over it," Hawatmeh said. "But Judge Jenkins rejected that argument and denied the motion. This decision is very positive because it will allow us to proceed more effectively and cost-efficiently against all defendants in the U.S. District Court here.

Hawatmeh also said that CirTran-Asia will file documents to collect attorney fees as part of legal action won against Mindstorm Technologies LLC of Boynton Beach, Fla. A default judgment was signed in October by Judge Sandra Peuler (Third Judicial District Court, Salt Lake County, State of Utah), awarding CirTran $288,000 for goods provided. As part of that judgment, he said that Judge Peuler awarded "fair and reasonable" attorney fees, plus interest, to CirTran.

About CirTran Corp.

Founded in 1993, CirTran Corp. (www.CirTran.com) is a premier international full-service contract manufacturer of low- to midsize- volume contracts for printed circuit board assemblies, cables and harnesses to exacting specifications. Headquartered in Salt Lake City, its ISO 9001:2000-certified, noncaptive 40,000-square-foot manufacturing facility is the largest in the Intermountain Region, providing "just-in-time" inventory management techniques designed to minimize an OEM's investment in component inventories, personnel and related facilities while reducing costs and ensuring speedy time to market. In 1998, CirTran acquired Racore Technology (www.racore.com), founded in 1983 and reorganized as Racore Technology Corp. in 1997.

About CirTran-Asia

CirTran-Asia (www.CirTran-Asia.com) was formed in 2004 as a high-volume manufacturing arm and wholly owned subsidiary of CirTran Corp. with its principal office in ShenZhen, China. CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment and household products manufacturing, focusing on being a leading manufacturer for the multibillion-dollar direct response industry, which sells through infomercials, print and Internet advertisements.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.