CirTran Issues Shareholder Update
SALT LAKE CITY, May 16, 2007 –CirTran Corporation (OTC BB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today issued a shareholder update on several of the company's business units.
“Along with our shareholders, corporate management is disappointed in the recent performance of our stock,” Mr. Hawatmeh said. “In accordance with SEC requirements and good business practices, CirTran regularly issues press releases on all news concerning the company, and is unaware of any unreported negative news or events that may have caused this recent dip.”
Mr. Hawatmeh did speculate, however, that certain shareholders might have taken “short” positions on CirTran, “which could well have a negative effect on our price.
“Management believes that as the company and its subsidiaries continue to perform and execute our short and long term plans, the price of CirTran shares should reflect our overall progress and growth,” he said.
“One of the company's goals is to move to the American Stock Exchange in the near future so that institutional buyers may hold CirTran stock,” Mr. Hawatmeh said.
Growth in Asia and the U.S.
Mr. Hawatmeh said that the “backlog is very strong in Asia , where CirTran-Asia, which we founded three ago, continues to emerge as a rising star in the offshore manufacturing market. We have been most successful in the made-for-TV infomercial-driven market,” he said, “where CirTran-Asia has won several contracts for millions of dollars.
“Right now,” said Mr. Hawatmeh, “we are progressing in our efforts to complete several new contracts for CirTran-Asia,” he said, noting that the company hopes to finalize the agreements before end of the June.
Mr. Hawatmeh said that CirTran was also continuing what he termed “steady growth and opening new markets” in the U.S., operating from its ISO 9001:2000-certified 40,000-square-foot facility in Salt Lake, the largest non-captive manufacturing center in the Utah-Nevada Intermountain Region.
Working to Win Business from Wal-Mart
CirTran is also working to win business from Wal-Mart (NYSE: WMT), and has opened an office for its Direct Marketing Group (DMG) subsidiary in close proximity to Wal-Mart's world headquarters in Arkansas . The office is headed by Oliver Mulcahy, who has an on-going relationship with Wal-Mart.
“Wal-Mart is the largest and most significant retailer in the world, and we are working to build a long-term relationship there as part of our strategic marketing initiative,” Mr. Hawatmeh said. “By recruiting Mr. Oliver, who has a strong relationship with Wal-Mart buyers and operations personal, and by establishing a local presence in Wal-Mart's backyard, we have put ourselves in position to achieve this key objective.
New COC Subsidiary Having ‘Huge Impact'
Mr. Hawatmeh said that the formation earlier this year of CirTran Online Corporation (COC) has “had a huge impact on our overall marketing program and capabilities. COC is selling CirTran products via the Internet, offering training, software, marketing tools, web design and support, and providing other e-commerce services to Internet entrepreneurs.
CirTran signed a three-year Assignment and Exclusive Services Agreement for COC with Global Marketing Alliance (GMA) and its affiliate companies, Online Profit Academy, LLC, and Online 2 Income, LLC, including Webprostore.com and Myitseasy.com. Based in Salt Lake , the companies offer a wide range of e-commerce services, focusing on the eBay® (NASDAQ: EBAY) marketplace. CirTran also signed a three-year Employment Agreement with. Sov Ouk, the founder of Global Marketing, to serve as senior vice president of the new subsidiary.
Legal Update
Mr. Hawatmeh also reported that “CirTran looks forward to winning” its suit against Michael Casey and Michael Casey Enterprises, Inc., which was filed in early 2005. The suit alleges breach of contract and good faith, as well as interference with economic relations and contracts regarding an agreement for CirTran-Asia to be the exclusive manufacturer of the AB King Pro™ and any and all products Mr. Casey and his company developed or brought to market through June 2007. The suit is against Mr. Casey and his company, as well as others who were party to the Exclusive Manufacturing Agreement between Mr. Casey, Casey Enterprises and CirTran-Asia.
“CirTran does not take litigation lightly or frivolously,” Mr. Hawatmeh said. “It is our hope and expectation that this matter will be ruled on by the courts in our favor later this year.”
Looking Forward to Great Upcoming Quarters
Mr. Hawatmeh said that all indications pointed to great improvements in revenue and bottom line results in the upcoming quarters.
“With a growing business base in the U.S. and in China , CirTran is carrying out its strategic business plan virtually to the letter,” he said. “All corporate managers are continuing to hold ownership in the company, and are looking forward to a brighter tomorrow when the price of CirTran shares is more reflective of the financial and business renaissance the company has achieved over the past three years.”
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.