CirTran Corporation (CIRX)

[HarryOsbornJr]

Agreed! We should be happy, this is good news for us.

On February 28, 2008, CirTran Corporation (the "Company") entered into a Subscription Agreement (the "Agreement") with Haya Enterprises, LLC, a California limited liability company (the "Investor") relating to the issuance of a promissory note (the "Note") in the principal amount of $700,000.

The Note bears interest at a rate of ten percent (10%) per year, and matures on February 25, 2011. The Company is not required to make interim payments of principal or interest, although the Company may make interim payments with no penalty. In the event of a default by the Company, the unpaid principal balance and accrued and unpaid interest will bear interest at a rate of twelve percent (12%).

The foregoing description of the Note is not complete and is qualified in its entirety by reference to the Note, a copy of which is filed herewith as Exhibit 99.1 and incorporated herein by reference.

In connection with the issuance of the Note, the Investor also received warrants (collectively, the "Warrants") to purchase shares of the Company's common stock, as follows:

- Warrants to purchase up to 25,000,000 shares of the Company's common stock at an exercise price of $0.02 per share;
- Warrants to purchase up to 10,000,000 shares of the Company's common stock at an exercise price of $0.10 per share;
- Warrants to purchase up to 10,000,000 shares of the Company's common stock at an exercise price of $0.15 per share;
- Warrants to purchase up to 10,000,000 shares of the Company's common stock at an exercise price of $0.25 per share; and
- Warrants to purchase up to 20,000,000 shares of the Company's common stock at an exercise price of $0.50 per share.

The warrants expire after five years, and the exercise prices are subject to certain adjustments as set forth in the Warrants. The terms, conditions, and restrictions of the Warrants, other than the amounts and exercise prices, as set forth above, are consistent between the Warrants.