CirTran Forms Online Subsidiary to Sell Offshore Products
To Sell Through E-commerce and Provide Services to Sellers of multiple auction sites.
CirTran Online to Also Telemarket Directly to Previous Buyers
SALT LAKE CITY, April 23, 2007 – CirTran Corporation (OTC BB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today announced that it has formed a new wholly owned marketing-driven subsidiary to sell its products via the internet, to offer training, software, marketing tools, web design & support as well as other E-commerce related services to internet entrepreneurs, and to telemarket directly to previous buyers of its products & services.
CirTran signed a three-year Assignment and Exclusive Services Agreement for its subsidiary -- CirTran Online Corporation (COC) -- with Global Marketing Alliance (GMA), founded by Mr. Sov Ouk, and its affiliate companies, Online Profit Academy, LLC, and Online 2 Income, LLC including Webprostore.com and Myitseasy.com. Based in the Salt Lake area, the companies offer a wide range of services for E-commerce including eBay sellers ( NasdaqGS: EBAY) .
CirTran also signed a three-year Employment Agreement with Mr. Ouk to serve as Senior Vice President of the new subsidiary.
New Sales Territories , Increased Margins
“CirTran launched COC to establish new sales territories through the e-commerce Web portal and also by directly telemarketing to tens of thousands of hosted clients, buyers of products we've made,” said Iehab J. Hawatmeh, its chairman and CEO, noting that selling via e-commerce and telemarketing should “dramatically increase profit margins on these services & products.”
Mr. Hawatmeh said that by working with GMA and Mr. Ouk, “CirTran Online should hit the ground running. GMA and its affiliate companies are all steeped in the entrepreneurial spirit of Sov Ouk, and have flourished in the world of e-commerce sales, hosting and auctions. By joining forces with the GMA team, CirTran will be able to leverage and blend their success in training, marketing and sales together with our success as one of the most successful manufacturers of products for the direct response/sold-on-TV marketplace and in the direct response industry, including production of TV infomercials.”
GMA and its affiliates offer a range of complementary capabilities and products for e-commerce, including seminars on how to buy and sell on the World Wide Web. GMA has helped build tens of thousands of e-commerce websites and currently host sites for internet entrepreneurs.
“CirTran will now be able to present this army of online sellers with attractive opportunities to offer products we have manufactured to sell directly on web stores or multiple auction formats,” he said.
Mr. Hawatmeh said GMA will also develop Web sites and manage online marketing for some of its new and already-popular sold-on-TV products, including The Real Deal Grill™, a contact cooker endorsed by four-time former heavyweight champion Evander Holyfield, the True Ceramic Pro™ hair styler, the HotLashes™ heated eyelash curler, and a makeup kit licensed from John Maldonado.
‘New Opportunity ' in Telemarketing
Mr. Hawatmeh described the plan for CirTran Online to also sell via telemarketing as a “new opportunity with unlimited potential, cost-effectively trimming our marketing and media costs while increasing income and profit margins on every sale.
“Our efforts will not be simply ‘dial and sell',” he said. “COC will be demographically direct in its approach, telemarketing to those previous buyers of products we manufactured, telling them about new and exciting products from CirTran. This is an innovative and highly targeted approach,” Mr. Hawatmeh said. “It is an approach we believe will be both effective and cost-effective for our new subsidiary, the parent company, and our shareholders.”
About CirTran Corporation
Founded in 1993, CirTran Corporation (OTC BB: CIRT, www.CirTran.com ) is a premier international full-service contract manufacturer. Headquartered in Salt Lake City, its ISO 9001:2000-certified, non-captive 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 Corporation in 1997. Continuing to grow, in 2004 CirTran formed CirTran-Asia as a high-volume manufacturing arm and wholly owned subsidiary with its principal office in ShenZhen , China . Today, CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment, and household products manufacturing, focusing on the multi-billion-dollar direct response industry.
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. The Company disclaims any obligation or intention to update any forward-looking statements.
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