Cirmaker Technology Reports Third Quarter Financial Results Increased Sales of High Margin Cooling Units Produces Positive Operating Earnings NEW YORK, Dec. 2 /PRNewswire-FirstCall/ -- Cirmaker Technology Corporation (BULLETIN BOARD: CRKT.OB) , which manufactures set top boxes for the Chinese digital TV market, cooling systems for personal computers and electronic parts, today announced results for the third quarter and nine months, ended September 30, 2003. Increased sales of high-margin units of cooling systems for laptop and personal computers produced positive earnings from operations, a turnaround compared to negative operating earnings in the same quarter a year ago. Revenue in the third quarter of 2003 was $3.36 million versus $4.54 million in the same quarter of 2002, as lower unit sales of higher margin cooling systems replaced traditional high volume, low margin electrical component sales. Third quarter loss per share was $0.01, which was flat compared to the same quarter a year ago. Growing sales of the cooling systems, which carry much higher margins, produced operating earnings for the quarter of $260,800 compared to a loss of $371,952 in the same period a year ago. Gross profit grew 123.5% to $747,388 during the third quarter of 2003, as compared to $334,325 during the same period in the prior year, even though sales had declined. The improvement is a result of the high gross margins on the company's new CPU cooling systems products. President Bill Liao of Cirmaker Technology, said, "The dramatic turnaround in operating earnings based on sales of our higher-margin computer cooling systems is testimony to the company's successful new strategy. Our traditional business of making electrical components was built on design flexibility, quality manufacturing and customer service. We have proven that we can carry these strengths into the manufacturing of new products, such as cooling system units and digital TV receivers and as a result earn higher returns." The net loss in the third quarter was $222,593, 41.7% less than the net loss of $382,286 in the same quarter of last year. The net loss in this year's third quarter includes a one-time reorganization expense of $310,411. Income from operations for the third quarter was $260,800 versus a loss of $371,952 in the same quarter last year. For the first nine months of 2003, while revenue declined slightly, the Company also generated operating earnings in contrast to a loss in the year earlier period. Revenue was $11.37 million, down slightly from the $11.89 million recorded in the same period in the earlier year. Operating income was $571,390, a significant improvement from the loss of $447,986 in the first nine months of 2002. The net loss for the period declined 91.3% to $41,512 from $482,466 in the same nine months in 2002. Gross profit in the nine-month period, ended September 30, 2003, grew substantially. The gross profit rose 86.7% to $1.96 million, up from $1.05 million in the same period a year ago. As of September 30, 2003, the Company had $216,628 in cash and cash equivalents on the balance sheet. Mr. Liao added, "For the past two years, Cirmaker has invested heavily in research and marketing alliances to build upon our core competencies in design, quality manufacturing and service. For the remainder of this year and in 2004, we expect to expand on our success in computer cooling systems and compound this growth with a strong entry into the market for digital television products and services in China." About Cirmaker Technology Corporation Cirmaker Technology manufactures cooling systems for laptop and personal computers, a variety of electronic components and digital set top boxes for television sets. Headquartered in Taiwan with an office in New York City, Cirmaker has developed digital television set top boxes that can convert analog television broadcast signals into digital formats so that analog TV sets can receive digital programming. Cirmaker believes it is the only manufacturer operating in China that can produce in volume a device that meets all the required standards of Chinese broadcasting authorities. It is also poised to distribute its system worldwide as it complies with all international HDTV standards for high definition television. The system receives, processes, stores and broadcasts analog, digital and streaming media signals, and it supports pay-per-view as well as video-on-demand channel signals. Forward-Looking Statements The matters discussed in this news release contain forward-looking statements, including statements regarding Cirmaker's continued growth for the remainder of this year and in 2004 and regarding Cirmaker's ability to enter into the market for digital television products and services in China. These statements are subject to various risks, uncertainties and other factors that could cause actual results to vary materially from the results anticipated in such forward-looking statements. Such risks, uncertainties and other factors include Cirmaker's potential inability to raise additional capital, its potential inability to satisfy its contractual commitments with IDN Telecom, Inc. or its other potential failure to realize the potential benefits of its arrangement with IDN Telecom, its potential inability to compete with other companies that may be more experienced and better capitalized than Cirmaker, changes in domestic and foreign laws, regulations and taxes, changes in economic conditions, uncertainties related to the legal systems in Cirmaker's target markets, including, China's legal system and economic, political and social events in China and other target markets, foreign relations between Taiwan, China and Cirmaker's other potential target markets, a general economic downturn, a downturn in the securities markets, Securities and Exchange Commission regulations which affect trading in the securities of "penny stocks," and other risks and uncertainties detailed from time to time in Cirmaker's filings with the Securities and Exchange Commission. These forward-looking statements represent management's judgment as of the date of this release. Cirmaker disclaims any intent or obligation to update these forward-looking statements. DATASOURCE: Cirmaker Technology Corporation CONTACT: Charles R. Skeele, CEO and CFO, of Cirmaker +1-917-639-4098, , or Truc N. Nguyen, VP, Investor Relations of Stern & Co., +1-212-888-0044,

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