CirTran Posts Gains in Sales and Gross Profit Margin in Second Quarter.

SALT LAKE CITY -- CirTran Corporation (OTC BB: CIRC), an international full-service contract manufacturer of IT, consumer and consumer electronics products, reported strong sales growth and improved gross profit margins in the second quarter of fiscal 2007 in its 10-QSB filing today.

CirTran reported net sales of $2,878,156, an improvement of 25.7% over the $2,288,293 reported for the period ended March 31, 2007, and a 29.4% gain over sales of $2,224,441 for the second quarter of fiscal 2006. For the six months ended June 30, CirTran reported sales of $5,166,449, a 30.4% improvement over sales of $3,962,265 reported for the first six months of fiscal 2006.

CirTran said that its gross profit margin (GPM) improved broadly, reporting a 56.5% GPM for the second quarter of fiscal 2007, as compared with 44.6% for the same period in 2006, and 52.6% for the first half of the fiscal year, as compared with 43.9% in 2006, both ended June 30.

The company reported a net loss for the quarter of $2,567,370, which it said included interest and other expenses totaling $1,345,000, primarily for non-cash accretion expense and derivative valuations relating to the convertible debentures.

Iehab J. Hawatmeh, CirTran's chairman and president, said expenses were higher in the second quarter, as compared with the first quarter and the same quarter and six-month period in 2006, due to additional marketing spending. He said the company is hopeful that the increased costs will result in increased revenues in the third and fourth quarter.

Looking ahead, Mr. Hawatmeh said that:

-- the test period of the True Ceramic Pro[TM] flat iron - one of the most popular products sold on TV - went well, with a full roll-out underway for the product now marketed as well as manufactured by CirTran;

-- the Real Deal Grill[TM], endorsed by former heavyweight champion Evander Holyfield and manufactured by CirTran, has been scheduled to begin testing via TV infomercials in mid September;

-- the new Hot Lashes[TM] beauty product, manufactured by CirTran, will launch on TV marketing early in the fourth quarter;

-- the CirTran beverage division is doing well and expect to introduce a branded energy drink in late September "with a world-class name company on the can," and

-- that samples of the new Ball Blaster[TM] exercise product manufactured by CirTran have been completed and are now being tested, with a search for a celebrity spokesperson for TV infomercials under way.

About CirTran Corporation

Founded in 1993, CirTran Corporation (OTC BB: CIRC, 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. The Company disclaims any obligation or intention to update any forward-looking statements.

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