CirTran Enters Forbearance Agreement, Sets Loan Repayment Schedule

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Mon Aug 17, 2009 9:20am EDT

SALT LAKE CITY--(Business Wire)--
CirTran Corporation (OTCBB:CIRC), a diversified international contract
manufacturer of consumer, consumer electronics and IT products, said today it
will file Form 8-K with the Securities and Exchange Commission detailing a
Forbearance Agreement signed with YA Global Investments of Jersey City, N.J.,
and setting a loan repayment schedule. 

"Projected positive cash flow and increased worldwide sales of the
Playboy-branded energy drinks, which are manufactured and distributed by
CirTran, will allow us to pro-actively manage our debt and eliminate the
possibility of additional shares being sold in the market under the existing
convertible debentures if all scheduled payments are made as scheduled," said
Iehab J. Hawatmeh, CirTran`s chairman and president. 

The Forbearance Agreement relates to three debentures issued by CirTran to YA
Global, formerly Cornell Capital Partners, LP: on May 26, 2005 for $3,750,000;
on December 30, 2005 for $1,500,000, and on August 23, 2006 for $1,500,000. 

Mr. Hawatmeh said CirTran made the first scheduled payment of $125,000 to YA
Global last week on signing the agreement. The repayment schedule includes
monthly payment commitments by CirTran through July 1, 2010 

"CirTran is now in better control of its finances and in better position to
reward shareholders for their loyalty," said Mr. Hawatmeh. "Moving forward, we
will focus on continuing to build our Playboy-branded beverage business
worldwide while also seeking to build business for our operations in the U.S.
and China." 

About CirTran Corporation

Founded in 1993, CirTran Corporation (www.cirtran.com) has evolved from its
roots as a premier international, full-service contract manufacturer. From its
headquarters in Salt Lake City, where it operates along with its Racore
Technology (www.racore.com) electronics manufacturing subsidiary from an ISO
9001:2000-certified facility, CirTran has grown in scope and geography. Today,
CirTran`s operations include: CirTran-Asia, a subsidiary with principal offices
in ShenZhen, China, which manufactures high-volume electronics, fitness
equipment, and household products for the multi-billion-dollar direct response
industry; CirTran Online, which offers products directly to consumers through
major retail web sites, and CirTran Beverage, which has partnered with Play
Beverages, LLC to introduce and distribute the Playboy Energy Drink. 

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.CirTran disclaims any obligation or intention to
update any forward-looking statement.

All trademarks are properties of their respective owners.



CirTran Corporation
Iehab J. Hawatmeh
+(801) 963-5112
iehab@CirTran.com

Copyright Business Wire 2009

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