Titan Anticipates Recovery of Previous FET Payments with Filing of Fiscal 2007 Tax Return

Newsletter

November 4, 2006

Volume VII, Issue 88

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To OTC Journal Members:

Titan Global (OTC BB: TTGL); $3.5 Million Windfall Coming

We're off to a great start with Titan Global. The idea was published one week ago today, and if you acted in the first couple of hours during Monday's trading, you are enjoying about a 13% return on your capital in the first week of coverage.

This could just be the beginning of what could turn out to be a big winner if the company can deliver the results forecast in last Friday's press release. More detailed information was made available in this week's conference call.

I really liked the action in the stock on Friday. It was the first down day of the week, and as you can see from the volume bars the stock traded the lowest volume of the week. The stock tried to back down and made an effort to head back below $.90, but was rapidly rebuffed and closed very near the high of the week; also a multi year high.

We are destined to see more action of this type in 2007 in many stocks. Over the last year, surges have proven to be selling opportunities. The market for good micros seems to be changing. Pullbacks are now being used as buying opportunities, and new highs are not only being made- they are holding.

Friday, just after the market closed, TTGL made a very powerful announcement on more than one level. The company announced it was entitled to a tax rebate from the Federal Government of $3.5 million. They announced the revenues would be booked in the 4th qtr of fiscal 2006, which ended on the last day of August. We should be able to review the annual results by the end of this month.

The funds coming to the company are being awarded compliments of a retroactive tax reduction. TTGL has been paying a 3% excise tax on the 30 million pre paid phone cards it sells annually. The IRS has decided all of the excise taxes paid since August of 2005 will be rebated to the company.

In my view, there is a more important element than the $3.5 million one time cash rebate. Consider the following- TTGL generates nearly $100 million in annual long distance sales. If you believe the CEO, that number is going to go up this fiscal year. 3% of $100 million equates to $3 million the company no longer has to pay in taxes. Those funds will flow directly to the bottom line, improving both profits and cash flow going forward. This is not one time- it is ongoing. If they can keep their pricing at the same level, margins will simply go up. 3% is huge for a high volume, low margin business model.

The picture is starting to have more credibility. Consider this- even after a 20% move to $1, this stock is still trading at a mere $44.5 million market valuation (44.5 million shares Issued and Outstanding)- this against trailing revenues of about $112 million.

In the market environment I visualize for the remainder of this year and into 2007 there is no way this stock continues trading at this low valuation if investors perceive the turnaround in their bottom line is for real.

Friday's announcement supports their claims. It looks like it's time to get aggressive. My suggestion in light of Friday's revelation: accumulate up to $1.20; move the SSL up to $.80 from $.60.

Here is the complete text of Friday's news release for your review:

Press Release Source: Titan Global Holdings, Inc.

Titan Global Holdings Announces Recognition of $3.5 Million in Income for Recovery of Federal Excise Taxes

Friday November 3, 4:01 pm ET

Titan Anticipates Recovery of Previous FET Payments with Filing of Fiscal 2007 Tax Return

DALLAS--(BUSINESS WIRE)--Titan Global Holdings, Inc. (OTCBB: TTGL - News), a high-growth diversified holding company, today announced that its independent auditors concur that Titan should recognize $3.5 million in income for recovery of federal excise taxes ("FET") paid since August 2005, following the retroactive elimination of the excise tax.

The $3.5 million in newly recognized income further strengthens Titan's financial results, and includes no negative or stock-dilutive impact.

In May 2006, The United States Treasury Department formally conceded the legal dispute over federal excise taxes on long-distance telephone service, resulting in Titan's ability to claim the funds as income. Titan will recognize this income gain in the 4th quarter of fiscal 2006.

According to the United States Treasury Department, the Internal Revenue Service will process principal and interest refunds for all FET paid for long-distance services during the last three years.

Oblio Telecom, Inc., a unit of Titan's Communication Division, has paid FET of 3% of gross revenues generated from communications services provided to its customers. The FET have been included in the cost of sales as reported in its historical financial statements.

"The federal excise tax on telephone calls was put into place over 100 years ago, and we are very pleased to see the Treasury Department has agreed to eliminate these excise taxes," said Kurt Jensen, President and CEO of Titan's Oblio Telecom division. "Our customers ultimately win from this decision as we will have more resources to create new, innovative products to meet our customers' needs and to generate increased revenues."

In August 2005, Titan announced its independent auditors confirmed Titan's ability to use a portion of its cumulative net operating losses ("NOL's") against the future net income generated from Oblio. Pursuant to Internal Revenue Service regulations, Titan's qualified NOL's are preserved and available against future net income from the Oblio unit. The recovery of the FET will be offset by Titan's NOL's. Therefore, one hundred percent of the FET recovery will be available to Oblio.

"The removal of the federal excise taxes on our services will proportionately increase our operating margins in future periods," stated Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "Upon receipt of our refund, we intend to use the proceeds to reduce our corporate debt and our monthly interest expense."

About Titan Global Holdings

Titan Global Holdings, Inc. ("Titan") (OTCBB: TTGL - News) is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets and advanced technologies. In its last fiscal year Titan generated in excess of $110 million in revenues on a consolidated basis.

Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets.

Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels.

Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.

For more information, please visit: www.titanglobalholdings.com or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.

Forward Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.

Contact:

Investor Relations:
Trilogy Capital Partners
Paul Karon, Toll-free: 800-592-6067
www.trilogy-capital.com

Source: Titan Global Holdings, Inc.

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