Cirmaker Technology Reports Third Quarter 2004 Financial Results Company Makes Significant Strides in the Digital Set Top Box Market in Mainland China and Taiwan NEW YORK, Nov. 24 /PRNewswire-FirstCall/ -- Cirmaker Technology Corp. (OTC:CRKT.OB) (BULLETIN BOARD: CRKT.OB) , which manufactures set top boxes (STB's) for digital TV signal reception, LCD flat screens for televisions and PC's, CPU coolers for computers and electronic components, today announced its financial results for the third quarter ended September 30, 2004. Revenues for the nine month period ended September 30, 2004 increased to $3,464,922 from $3,063,091 during the comparable period of the prior year. The results for first, second and third quarters of 2003 have been restated to reflect the Company's 25% minority interest in Cirmaker Taiwan, its manufacturing operation located in Taiwan. Gross profit was $401,491 for the third quarter of 2004, versus $801,394 in the third quarter of 2003. The Company attributed the gross profit decline to increased operating expenses of Cirmaker USA and the Company's factory in Guangdong, China. The net loss for the three months ended September 30, 2004 was $438,119, or $(0.02) per share, before foreign currency translation adjustment and $488,638 after foreign currency translation adjustment. This compares to a net loss in the same period in 2003 of $34,608, or $(0.02) per share, before currency adjustment and a net loss of $140,760 after the currency adjustment. Net losses increased largely by expenses incurred with the Company's new facility expansion initiative in Guangdong, China. The Guangdong factory commenced manufacturing in July 2004. Operational expenses associated with the factory in China were approximately $350,000 during the nine month period ended September 30, 2004. Revenue for the first nine months of 2004 rose 12.2% to $12.8 million from $11.4 million in the first nine months of the prior year. The gross profit for the current nine month period was $1,050,504 versus a gross profit of $1,957,727 million in the prior period. As of September 30, 2004, the Company had $135,448 in cash and cash equivalents, down 37% from $216,628 in cash holdings a year ago. The decrease in cash reflects an increase in Cirmaker's restricted cash account required to be held to meet the Company's debt covenants. The Company also had significant business developments during the third quarter of 2004: * On September 9, 2004, Shaanxi New Century Electronic Co., Ltd. ("New Century"), a subsidiary of the Company, entered into a Satellite Receiver Sales Agreement with Xian Huaxing Electronic Technology Co. Ltd. ("Xian Huaxing"), pursuant to which Xian Huaxing agreed to purchase from New Century all of Xian Huaxing's requirements for satellite set top box receivers that convert digital television broadcast signals into analog formats. The basic unit price for satellite receivers sold under the agreement is RMB 230 (approximately US$27.79). This price, however, may be increased under the agreement if estimated volume levels are not met. * On September 13, 2004, Xian Huaxing made, and New Century accepted, a purchase order from Mainland China under the aforementioned agreement for 240,000 Satellite Receivers at a unit price of RMB 230 (approximately US$27.79) for an aggregate price of RMB 55,200,000 (approximately US$6,669,600). * Cirmaker began production on the 240,000 STB order from Mainland China, and is expected to complete the order by the end of the year. Bill Liao, President of Cirmaker Technology, commented, "During the third quarter of 2004, we have announced significant developments within the Set Top Box market. We have successfully entered the China Mainland and Taiwan STB marketplace and are in the process of fulfilling our existing order with Mainland China. We are also ramping up our manufacturing facility to prepare from anticipated orders from the Taiwan marketplace." He continued, "We continue to focus on our three main businesses: digital set top boxes, electrical cooling systems for laptop and personal computers, and terminals and electrical connectors. To date, Cirmaker has been able to respond quickly to our customers' demands and requirements, and adapt to their needs in our products. Commenting on the reduction in gross profit for the third quarter, Mr. Liao said, "A substantial portion of our loss in this and the previous quarter was due to increases in operating expenses of Cirmaker USA and in our factory in China." "We recently announced an order from Mainland China for two hundred and forty thousand digital set top boxes worth $6,669,600 million. The Company is in the process of preparing the first shipment of the STB order. In addition, we recently announced the Company's entry into Taiwan's digital set top box market, and are looking forward to receiving orders from the marketplace. We have already conducted several tests with a few thousand of our STB's within the Taiwan market for two of our new STB product offerings, Direct T and Direct S, and we are encouraged by the positive feedback and results we have received from consumers," Mr. Liao concluded. About Cirmaker Technology Corp. Headquartered in Taiwan with offices in New York City, Beijing, and Guangdong province, Cirmaker Technology manufactures 3G MHP (3rd generation multimedia home platform) digital set top boxes for television sets, LCD flat screens for televisions and PC's, cooling systems for laptop and personal computers, electrical and electronic components. Cirmaker has developed set top boxes that convert digital television broadcast signals into analog formats so that analog TV sets can receive digital programming. The system also receives, processes, stores and broadcasts analog, digital and streaming media signals, and supports pay-per-view and video-on-demand functions. Cirmaker believes it is the only 3G MHP STB manufacturer operating in China able to produce in volume a device that meets all the required standards of Chinese broadcasting authorities. It also complies with all international HDTV standards for high definition television. The Company's subsidiary, Shaanxi New Century Electronic Co., produces a new generation satellite set top box that converts digital television broadcast signals into analog formats so that analog TV sets can receive digital programming. This device meets all the required standards of Chinese broadcasting authorities. Because the Chinese government plans to change all TV broadcast signals from analog to digital, there is a significant demand in Mainland China for this product. For further information on Cirmaker Technology Corp., please visit http://www.cirmaker.com.tw/ Forward-Looking Statements The matters discussed in this news release contain forward-looking statements, including statements regarding the demand for set top box satellite receivers in China, future sales made by Cirmaker in China, and the potential success of the strategic alliance between Shaanxi Ruyi Electric Co. and Cirmaker. 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, the potential breach by the counterparty to the sales agreement of its obligations to buy satellite receivers thereunder, Cirmaker's 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. For more information, please contact: Company Contact: Cirmaker Technology Corporation Charles R. Skeele General Manager Telephone: 917-639-4098 Email: Investor Relations Contact: ROI Group Associates, Inc. Charles A. Nelson / Sarah Shepard Vice President / Vice President Telephone: 212-495-0200, ext. 15 / 17 Email: / http://www.roiny.com/ You may register to receive Cirmaker's future press releases and to be added to the company's distribution list by visiting: http://www.roiny.com/form.php. DATASOURCE: Cirmaker Technology Corp. CONTACT: Charles R. Skeele, General Manager of Cirmaker Technology Corporation, +1-917-639-4098, ; or Investor Relations Contact: Charles A. Nelson, Vice President, +1-212-495-0200, ext. 15, , or Sarah Shepard, Vice President, +1-212-495-0200, ext. 17, , both of ROI Group Associates, Inc., for Cirmaker Technology Corp. Web site: http://www.cirmaker.com.tw/ http://www.roiny.com/form.php

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