CirTran Announces 37% Increase in Revenues in Third Quarter over Second Quarter Financial Results.

Company Continues to Expand Consumer Marketing Strategy

SALT LAKE CITY -- CirTran Corporation (OTCBB: CIRT), an international full-service contract manufacturer, marketer and distributor of IT, consumer and consumer electronics products, today announced financial results for the third quarter and first nine months of fiscal 2006, the period ended September 30, 2006. CirTran's management believes that comparisons of the financial results from the third quarter of 2006 to the third quarter of fiscal 2005 do not provide an accurate picture of the Company's progress in executing its new consumer marketing strategy. While management is providing those comparisons for informational purposes, the Company is also providing sequential comparisons to the second fiscal quarter, which provide a more meaningful comparison relative to the Company's progress.

For the period ended September 30, 2006, CirTran reported net sales of $3.0 million, a 37% sequential improvement compared to the $2.2 million reported for the previous quarter ended June 30, 2006, and a 27.2% decrease compared to the $4.3 million reported for the third quarter of fiscal 2005. It was the third consecutive quarter of sales growth for CirTran, which had sales of $1.7 million in the first quarter of fiscal 2006. The year-over-year decrease is due to a considerable decrease in the sale of Ab King product, which is a matter of ongoing litigation for the Company. The sales in the other divisions have remained consistent. Cost of sales decreased by 12% to $2.3 million, or gross profit margin of 26.8%, for the third quarter of 2006 from cost of sales of $2.6 million with gross profit margin of 39.0%, for the third quarter of 2005 due to the decrease in revenue. Gross profit margins were 44.6% for the second quarter of fiscal 2006.

Selling, general and administrative expenses were $1.1 million for the third quarter of 2006, a sequential decrease of 44.9% compared to the $1.92 million for the second fiscal quarter of 2006 and an increase of 2.5% compared to $1.03 million for the third quarter of 2005. The increase is due to the additional salaries, commissions paid to Diverse Media Group, legal fees, and consulting fee paid primarily to an outside force.

In addition, the Company's 10-QSB filing includes the application of EITF 00-19 and SFAS 133 to its convertible debentures. These standards were addressed by the SEC in its December 1, 2005, version of "Current Accounting and Disclosure Issues in the Division of Corporate Finance." This guidance helped clarify the application of the above mentioned standards to the Company. The application of the SEC's December 1 guidance resulted in a non-cash charge of $693,494 for accretion expense including interest and $1,961,840 for derivative expense that were charged to fiscal third quarter results related to the convertible debentures issued to Highgate House Funds, Ltd., and Cornell Capital Partners. These non-cash changes resulted in total expense of $2,655,334. Inclusive of these charges, the Company's net loss was $2.9 million.

Other major areas of financial growth for CirTran included:

* A 65.9% improvement in EBITDA to $(333,383) as compared to a $(977,291) reported for the previous quarter, and;

* A 16.1% improvement in total assets to $12.9 million from $11.1 million reported for the previous quarter.

Third Quarter and Subsequent Operational Highlights Include:

* CirTran's wholly owned Diverse Media Group (DMG) subsidiary signed an exclusive licensing, manufacturing and marketing agreement with Beautiful Eyes[R], Inc., of Malibu, California, for a new "hot lashes" product, which it will bring to the sold-on-TV and retail marketplaces.

* CirTran's wholly owned Racore Technology subsidiary received and processed its first order from Lear Siegler Services, Inc., of San Antonio. Lear Siegler, a major provider of operations, maintenance, modification, overhaul, systems integration, logistics support and training services to government agencies and commercial customers in the U.S. and abroad, placed an initial order for 100 of Racore's 100 Mbps Fiber Optic PCI Fast Ethernet Network Adapters with ST Fiber Connectors.

* CirTran signed an exclusive agreement for the international marketing of its True Ceramic Pro Flat Iron Kit by Williams Worldwide Television of Santa Monica, California.

* DMG signed an exclusive contract to market and distribute the Solar Style line of solar chargers to major retailers in the U.S. and abroad. The Solar Style product uses solar power to charge portable electronics, including iPods[R], cell phones and PDAs, laptop computers, and personal DVD players. DMG is targeting retailers including Wal-Mart for this innovative product.

* DMG signed a retail distribution and marketing agreement with Wines and Wines, a Miami-based distributor of fine wines and spirits from around the world. DMG will use its best efforts to market and distribute all Wines and Wines products exclusively into various distributors and retailers such as Southern Wine and Spirits, Trader Joe's, Beverages and More, Wal-Mart, Sam's Club, Costco, Young's Markets and Vendome nationally, as well as restaurants, liquor stores and entertainment venues exclusively throughout California.

* DMG signed an exclusive marketing and distribution agreement with Awareness Technologies, Inc., a Los Angeles-based company for its WebWatcher Computer Monitoring Software, to provide all marketing and distribution channels for Direct Response TV, Radio, Print, Live-Shopping, Retail, and Catalog. WebWatcher is an Activity Monitoring Software solution that was developed during the last four years by former National Security Agency (NSA) computer programmers, following discussions with intelligence and counter-terrorism officials in the Middle East.

* DMG signed an exclusive marketing and distribution agreement with Natural Product Solutions for its VirMax for Men and Women DS product line. These products, made up of clinically tested and patented natural supplements for both men and women of all ages, are utilized to improve and enhance sexual performance, sensitivity, function and feeling.

* CirTran completed a $1.5 million in financing through a securities purchase agreement with Cornell Capital Partners based on a 5% secured debenture, due April 23, 2009. As part of the transaction, he said CirTran paid a commitment fee of $120,000 and a structuring fee of $15,000, with net proceeds to the company of $1,365,000.

"As evidenced by our continued improvements in revenues and a narrowing of our net loss, excluding one-time accounting charges, we have demonstrated significant successes in our ability to execute our new business plan, obtaining agreements to market and distribute a variety of innovative products," commented Iehab J. Hawatmeh, CirTran's chief executive officer. "These new agreements validate our business model, and demonstrate our ability to pursue and win marketing business. Over time, we will expand this model to include marketing agreements with DMG at favorable terms for customers, which include manufacturing agreements for CirTran, allowing us to utilize our existing capacity and secure a greater portion of the overall product margin. This represents our 'concept to consumer' model, where CirTran is the only fully integrated provider of design, low- and high-volume manufacturing, and product marketing services to supply the entire gamut of services needed to bring products from the concept phase through manufacturing to the targeted consumer. I am pleased, but not yet satisfied with our results, but I recognize that the tremendous progress we have made in our strategic evolution has not yet been reflected in our financial results."

For the first nine months of 2006, net sales decreased 39.2% to $7.0 million as compared to $11.5 million during the same period in 2005. Cost of sales decreased by 34.9% to $4.5 million, resulting in gross profit margin of 35.4%, during the first nine months of 2006 compared to cost of sales of $7.0 million, with gross profit margins of 39.6% gross profit margin, during the same period in 2005. Selling, general and administrative expenses were $3.8 million versus $3.6 million for the same period in 2005, a 7.3% increase. The net loss for the first nine months of 2006, inclusive of a $2,504,496 million negative fluctuation in accretion expense and on the valuation of the derivative liability, was $3.9 million, compared to net income of $839,543, for the same period ended September 30, 2005.

"We continue to line up new consumer product marketing agreements, and believe that these agreements will positively impact our results beginning in 2007," Mr. Hawatmeh continued. "We have built a comprehensive organization, which brings tremendous value to our customers, providing recognized expertise in all areas of product development and marketing. This organization will exploit tremendous synergies across our entire Company, allowing CirTran to bring unprecedented value to our customers and enabling us to capture a higher portion of the revenues and margin associated with product development and marketing. As we continue to execute our strategy, we are becoming increasingly confident in our ability to drive significant shareholder value."

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About CirTran Corporation

CirTran Corporation (OTCBB: CIRT, www.CirTran.com) is a consumer products-driven Company focused on providing the entire spectrum of "Concept to Consumer" services, encompassing engineering, design, prototyping, low- and high-volume contract manufacturing, marketing and retail distribution for consumer-oriented products and technologies. Founded in 1993 and headquartered in Salt Lake City, CirTran's 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. CirTran's Racore Technology (www.racore.com) subsidiary provides sophisticated engineering services, including technology design and prototype development. CirTran's wholly owned subsidiary CirTran-Asia ("CTA") with principal office in Shenzhen, China, is a high-volume manufacturing arm, which provides customers with the economic benefits of Asian offshore manufacturing coupled with American-based project management and accountability. CirTran's Diverse Media Group (DMG) (www.diversemediagroup.com) subsidiary is a Direct Entertainment[TM] firm specializing in multi-channel product marketing, media purchasing, retail distribution and product fulfillment for the direct response and entertainment industries.

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.

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