CirTran Corporation Completes Compromise Settlement with IRS.

SALT LAKE CITY -- CirTran Corporation (OTCBB:CIRT) said today it has completed a compromise settlement with the Internal Revenue Service, taking what it called "a major step forward" in restructuring its balance sheet.

Iehab J. Hawatmeh, founder, president and CEO of CirTran, an international full-service contract manufacturer of IT, consumer and consumer electronics products, said the agreed-to $500,000 was sent to the IRS "on-schedule and in accordance" with a the settlement reached late last year (see "CirTran's Offers in Compromise Accepted by the Internal Revenue Service," Business Wire, Nov. 22, 2004).

"CirTran has now satisfied all of its outstanding federal tax liabilities, thus taking a major step forward in restructuring our balance sheet," he said.

The IRS said it was owed $2.3 million by CirTran as of September 30, 2004, when the company began the appeals process. In November 2004, it notified CirTran that its offer in compromise had been accepted.

Concurrent with announcing its settlement with the IRS in November, CirTran also said it had reached agreement with Utah State Tax Commission, allowing it to pay its liability in equal monthly installments through December 2005. Mr. Hawatmeh said CirTran is "on-schedule " with these payments as well.

"The difficult times endured by the IT industry worldwide took their toll on CirTran as well," said Mr. Hawatmeh. "Now we see light at the end of the tunnel, and believe that all these problems will soon be behind us. CirTran had a strong second half of fiscal 2004 (see "CirTran Sites New Consumer Manufacturing Business for 'Dramatic Increases' in Q4 and 2004 Year-end Results," Business Wire, Jan. 14, 2004) and are about the progress made in the early days of 2005."

About CirTran Corporation

Founded in 1993, CirTran Corporation (OTCBB:CIRT) (www.CirTran.com) is a premier international full-service contract manufacturer of low to mid size volume contracts for printed circuit board assemblies, cables and harnesses to the most exacting specifications. Headquartered in Salt Lake City, CirTran's modern 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.

About CirTran-Asia

CirTran-Asia (www.CirTran-Asia.com) was formed in 2004 as a high-volume manufacturing arm and wholly-owned subsidiary of CirTran Corporation 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 being a leading manufacturer for the multi-billion dollar Direct Response Industry, which sells through infomercials, print and Internet advertisements.

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.