CirTran Corp., 'On or Ahead of Strategic Plan,' Sets 2006 Goals Including Continued Growth and Move to Amex.

SALT LAKE CITY -- Citing 2005 as "a year of great progress" in which his company was "on or ahead of its strategic plan," Iehab J. Hawatmeh, founder and president of CirTran Corp. (OTCBB: CIRT) today offered a report to shareholders.

"Entering 2005, CirTran had a strategic plan -- set a series of goals -- including building sales, achieving profitability, reducing debt and generally building shareholder equity," Hawatmeh said. "Corporate management and all employees have worked hard throughout 2005 to achieve these goals, with only our share price as a disappointment heading into the new year."

Hawatmeh said that CirTran "was on target in its efforts."

"It was a record sales year for CirTran, with more than $80 million in business won, giving us a strong backlog going into 2006," he said. "Our CirTran-Asia subsidiary emerged as a significant player in the direct response/sold-on-TV industry, and operations at our Salt Lake facility, which gained ISO 9001:2000 certification during the year, grew as well, including new business in the expanding homeland security and gaming markets."

Back-to-Back Profitable Quarters

For the first time as a public company, CirTran reported a profit in the second quarter, and then reported a profitable third quarter as well -- its sixth straight quarter of growth.

In the second quarter ended June 30, CirTran reported an 11% net profit of $466,229, an $828,193 improvement over the loss of $361,964 for the same period in 2004. CirTran was also profitable for the six months ended June 30, reporting $264,501, an improvement of $1,210,087 over the loss of $945,586 for the same period a year ago for the period ended June 30, 2004.

In the third quarter, CirTran reported a profit of $575,042, a 204% increase over a loss of $552,086 for the same period in fiscal 2004, and an increase of $108,813, or 23%, over the profit of $474,042 for the previous quarter. And for the nine months ended Sept. 30, CirTran reported a net profit of $839,543, a 278% improvement over the loss of $1,497,673 reported for the same period in fiscal 2004.

CirTran's total assets also continued to grow. The company reported total assets of $10,652,661, an increase of $1,139,505 or 12% over the previous quarter, and an increase of $6,359,232, or 148%, over the $4,293,429 reported through nine months of fiscal 2004.

The company also had a dramatic improvement in total stockholders' equity, reporting $2,868,679, an increase of $5,110,712, or 178%, over a deficit of $2,242,033 reported through nine months of fiscal 2004.

"Moving Closer to the Amex"

Hawatmeh said CirTran is aiming a move to the American Stock(R) Exchange (Amex(R)) in 2006.

"That is a stated goal," he said. "We are working to move closer to meeting the minimum listing requirements and have the Amex in our sights."

New Business Opportunities Ahead

Late in 2005, CirTran opened its first satellite office and showroom in the Century City section of Los Angeles. The office is in the midst of the area housing the direct response industry, and is also being used to spearhead CirTran's new products division, which hopes to be selling consumer products it has manufactured offshore to and through major U.S. retailers.

"Everything CirTran is doing is aimed at building shareholder equity," Hawatmeh said. "When I voiced disgust with the practice of 'naked shorting' in a recent press release, it was in response to speculation by some that CirTran shares were not being treated fairly -- or honestly -- in the stock market, as well as a general condemnation of a shady, unsavory and illegal practice. We are keeping our eye on the ball and moving forward to ensure that our investors will have a fair chance to maximize their investments," he said.

Hawatmeh once again stated that, "Members of CirTran's management team continue to hold their shares, working toward and looking forward to a brighter future for us all.

"Our plan is to continue to grow our business in the U.S. and Asia, continue to be profitable, and to reward those who have invested in us," he said.

About CirTran Corp.

Founded in 1993, CirTran Corp. (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 Corp. in 1997. In 2004, it formed CirTran-Asia as a high-volume manufacturing arm and wholly owned subsidiary with its principal office in ShenZhen, China. CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment and household products manufacturing, focusing on the multibillion-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.

All trademarks are properties of their respective owners.