CirTran and Diverse Talent Group Enter Agreement
SALT LAKE CITY and LOS ANGELES, May 22, 2007 -- CirTran Corporation (OTCBB: CIRT) and Diverse Talent Group, Inc. (DTG), said today that they have mutually agreed to terminate their Exclusive Services Agreement and all related agreements, assignments and guarantees between the companies and their affiliates and to realign their relationship. The agreement is retroactively effective as of March 31, 2007.
As a result of the realignment, CirTran's wholly-owned subsidiary formerly known as Diverse Media Group Corp. has changed its name to CirTran Media Corp. (CMC). DTG's public parent corporation Diverse Media Group, Inc. (Pink Sheets: DVME) will now indirectly own the name and website formerly held by CMC as well as the business assets of Los Angeles based DTG. All previously announced contracts awarded to CirTran's subsidiary for manufacturing, marketing and distribution of various products will remain with CMC.
As part of the agreement, 9,000,000 shares of DVME will be issued into an escrow account for CirTran's benefit, giving it approximately 8% ownership of DVME. A portion of the shares are subject to surrender under certain circumstances.
CirTran and CMC will continue developing and marketing consumer and entertainment products through its multi-channel distribution outlets to the general market, direct response and entertainment industries while DTG and DVME will concentrate on talent and literary representation within the entertainment Industry.
Further terms and information about the settlement agreement will be made available in CirTran's forthcoming 10-Q filing.
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.