CirTran Ships First Order on $5.4 Million Contract for Sold-on-TV Fitness Equipment
SALT LAKE CITY, March 7 , 2007 -- CirTran Corporation (OTC BB: CIRT ) announced today that it has shipped the first order completed against a $5.4 million exclusive manufacturing contract it signed late last year to build the CorEvolution ™ , new fitness product for the sold-on-TV market www.mycorevolution.com .
Iehab J. Hawatmeh, president and CEO of CirTran, an international full-service contract manufacturer, marketer and distributor of IT, consumer and consumer electronics products, said the shipment of approximately $60,000 in product “is a good sign that the initial testing of the infomercial and the CorEvolution now underway is positive,” he said.
The contract with Evolve Projects, LLC, of Akron , Ohio was signed by CirTran in December for the CorEvolution, which Mr. Hawatmeh described as a fitness product designed to strengthen and rehabilitate the lower back and adjacent areas of the body. The first production units were manufactured by CirTran in China after final changes were approved by Evolve, who will oversee the on-TV marketing of the product.
Matthew A. Heinle, an Evolve principal, approved the first shipment from China , and said that his company “is excited about the prospects for the CorEvolution. CirTran is delivering high quality product we believe will prove to be very popular among consumers looking to get in better shape, particular as the warm weather months approach.”
Mr. Hawatmeh said that the order now in route to the U.S. is part of a first year commitment of $1.2 million against the contract. He said the agreement calls for minimum orders of $1.8 million in the second year and $2.4 million in the third year as part of the five-year agreement.
“Test marketing and focus groups indicated that the CorEvolution fits well into the current physical fitness boom,” Mr. Hawatmeh said. “Getting the product into the pipeline via TV infomercials now is a key to its early success as people look to tone their bodies and get ready for the summer.”
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.
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