WWW.SAADVISORY.COM WEBSITE--May 14, 2007

The company ( Circuit Research Lab- crli.ob) develops, manufactures & markets electronic audio processing , transmission encoding and noise reduction equipment for the worldwide radio, TV, cable, Internet and professional audio markets. Main product lines control the audio quality and range of radio, TV, cable and Internet audio reception and allow radio and TV stations to broadcast in mono and stereo.

CHECK OUT WEBSITE FOR COMPLETE LIST OF PRODUCTS-- WWW.ORBAN.COM
DURING THE PAST FEW YEARS - CRLI.OB HAS IMPLEMENTED A MAJOR RE-ORG OF OPERATIONS AND DEBT PLATFORM- RESULTING IN POOR FINANCIAL RESULTS IN 06. According to management results for 06 are primarily attributed to costs incurred consolidating and moving to new facility in Tempe, AZ, along with experiencing long lead times for components associated with the implementation of a EU directive concerning electrical and electronic equipment.

CORPORATE INFORMATION:

WORLDWIDE- 48,400 RADIO STATIONS

19,200 TV STATIONS

US- 13,500 RADIO AND 4500 TV STATIONS
INTERNET- 6100 RADIO SITES- OF THOSE 4700 RADIO STATIONS ARE OFFERING WEBCAST OR SCREAMING SERVICES.

MOVING SAVING/YR-- $432,000.00

CURRENT BACKLOG- $3 MILLION

HUGE R&D FOR 05 & 06- $1.6 AND $1.8 MILLION RESPECTIVELY

THIS HUGE R&D EXPENSE WAS PRIMARILY USED FOR PC BASED PRODUCTS AND DIGITAL ENCODERS AND DECODERS WHICH ARE USED FOR DIGITAL TRANSMISSION SYSTEMS FOR USE OVER THE INTERNET!!

EMPLOYEES-75

STOCK PRICE RANGE

2005--.30 LOW --$2.11 HIGH

2006--.24 LOW--$.99 HIGH

2007--.16 LOW--..54 HIGH



NOL---$8 MILLION

SHARES OUTSTANDING -8.6 MILLION

OPTIONS--CONFUSING BUT WE ASSUME AROUND 3 MILLION SHARES AVAILABLE FOR OUT OF MONEY OPTIONS.--NOT INCLUDED IN CALCULATIONS.

REV FOR 06-$12.6 MIL AND LOSS .25/SH VS REV OF $15 MIL AND GAIN OF ..25/sh ( GAIN OF DEBT RESTRUCTURE)

MANAGEMENT THOUGHTS FOR 07!!

According to management- statements made in recent 10k filed mid April 2007.

"During 07 we expect to increase the output because we are not going to have facilities off-line during a move. The expected return to historical sales volume will absorb fixed expenses and generate increased operating profits and working capital should permit us to settle current obligation on a more timely basis."



THE WAY WE SEE IT!

WE BELIEVE THAT FROM MANAGEMENT COMMENTS THAT REV FOR 07 WILL AT LEAST REACH $15 MILLION AND MAY EVEN HIT $20 MILLION, BUT THAT FIGURE IS REAL HIGH- WE THINK! WHEN YOU REALIZE THAT THE CMPY WILL SAVE $400K FROM THE MOVE ANNUALLY AND MOST LIKELY THE COMPANY WILL REDUCE R&D BY $1 MILLION AND INCREASE GROSS MARGINS BACK TO 58% AND BENEFIT FROM THE EURO CONVERSION INTO DOLLARS ( AROUND $6 MILLION IN SALES FROM 06) THAT CRLI.OB WILL SHOW A PROFIT FOR 07 OF AROUND .10/SH BASED UPON $15 MILLION AND.20/SH BASED UPON $20 MILLION IN REV.

DEBT RESTRUCTURE REDUCED DEBT BY AROUND 50% AND SOME MAY EVEN BE CONVERTED INTO COMMON SHARES DURING THE 3RD Q OF 07.

WHY WE THINK CRLI.OB HAS THE TICKET FOR SUCCESS!

1. GREAT PRODUCT LINE FOR STRONG GROWTH CONCERNING THE INTERNET AND RADIO AND TV AUDIO ENHANCEMENTS.

2. LARGE BACKLOG OF $3 MILLION

3. ADDED ADDITIONAL WORK SHIFTS BECAUSE OF PRODUCT DEMAND.

4.REDUCED DEBT BY 50%

5 $400K ANNUAL SAVING/YR BECAUSE OF RELOCATION TO AZ.

6.VALUABLE NOL OF $7.9 MILLION WHICH SHIELDS COMPANY FROM FEDERAL TAX FOR MANY YEARS AND ALSO MAKES CRLI.OB ATTRACTIVE FOR POSSIBLE MERGER OF "LIKE" COMPANY.

7. TRADING NEAR 3 YEAR LOW

8. DURING 08 AN ADDITIONAL $1 MILLION IN SAVINGS FROM CONTINUED DEBT REDUCTION<.BR>
9. TRADING @ AN EST. 5X PE AND .3 PRS BASED UPON 07 ESTIMATES- ASSUMING REV OF 15 MILLION AND NET OF .10/SH

10. VERY QUALIFIED MANAGEMENT THAT CONTROL LARGE AMOUNT OF SHARES OUTSTANDING.



IF WE ASSIGN A PE OF 15 TO CRLI.OB AND EARNINGS REACH .10 OR .20/S FOR 07 A RESULTING SHARE PRICE IS VERY POSSIBLE, THAT IS, $1.50 TO $3.00. ASSUMING GROWTH CONTINUES INTO 08 AND BEYOND TAKING IN ACCOUNT THE ADDITION .10 IN SAVING DURING 08- THEN EARNING WILL ACCELERATE EVEN MORE SO INTO 08 AND THE SHARE PRICE SHOULD MOVE MUCH HIGHER.

AS THE FINANCIAL STRENGTH OF CLRI.OB FIRMS IT IS OBVIOUS THAT MANAGEMENT WOULD LIKE TO GROW THE COMPANY EITHER BY MERGER OR ACQUISITION AND TAKE ADVANTAGE OF THE ATTRACTIVE NOL.



NOTE: FIRST Q OF 07 SHOULD BE RELEASED WITHIN DAYS-WE ARE NOT SURE WHAT TO EXPECT, BUT ANTICIPATE POSITIVE RESULTS LEADING TOWARD A POSITIVE YEAR- END RESULTS. WE BELIEVE THAT CLRI.OB DUCK'S ARE ALL IN PLACE FOR STOCK APPRECIATION DURING THE NEXT 18 MONTHS. WE SEE VERY LITTLE DOWNSIDE RISK FROM CURRENT LEVELS. WE WILL MONITOR CRLI.OB WITHIN OUR PORTFOLIO FOR % GAIN PERFORMANCE

WE RATE CRLI.OB WITH A STRONG BUY RATING FOR SPECULATIVE ACCOUNTS.