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CirTran Wins $30 Million Contract to Build Sold-on-TV New Fitness Machine; New `Exclusive Manufacturer` Contracts Won by CirTran-Asia Now Total $60 Million
April 28, 2005 08:30:04 (ET)
SALT LAKE CITY, Apr 28, 2005 (BUSINESS WIRE) -- CirTran Corp. (CIRT, Trade) announced today that it has been awarded a $30 million contract to be the exclusive manufacturer of a new fitness machine for the sold-on-TV direct response industry.
Trevor M. Saliba, CirTran's executive vice president for worldwide sales, said the agreement is the "third major new exclusive manufacturer contract" for CirTran-Asia, the company's wholly owned subsidiary based in China, in the first four months of 2005.
Saliba said that the total of the new manufacturing contracts won by CirTran is approximately $60 million (annualized).
In January, CirTran-Asia received a contract from E. Mishan & Sons Inc., of New York, to be the exclusive manufacturer of the Hot Dog Express, and in February it contracted with Advanced Beauty Solutions, LLC, of Los Angeles, to be the exclusive manufacturer of the "True Ceramic Pro - Flat Iron Traveling Kit." Both products are currently being sold on nationwide TV via infomercials.
Saliba said that by mid-summer the manufacturing of the new fitness machine, the Hot Dog Express and the True Ceramic Pro - Flat Iron Traveling Kit could generate as much as $6 million per month in revenue to CirTran.
Recognition Direct Response Business
"Winning business from major direct response TV marketers is great validation of the quality products manufactured by the CirTran organization," he said.
"These companies from whom CirTran has won business are world-class and worldwide," said Saliba. "They have a choice -- in fact many choices -- when it comes to finding manufacturing partners. We have won business because we have demonstrated that at CirTran and CirTran-Asia quality and quantity go hand-in-hand. Our CirTran-Asia operations, headed by Charles Ho, have turned prospects into customers when they've traveled to China to see our production line turning out quality products, 24 hours a day, seven days a week."
Leading to a Record Quarter
Saliba credited the new business won by CirTran-Asia and a steady increase in contracts won by the company's Salt Lake City facility for a record first quarter.
CirTran will report record sales of approximately $2.93 million, up 353% over the $645,612 reported for the first quarter of fiscal 2004, when it files a 10-Q with the SEC next month, he said.
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