Titan Guardian Products to Launch at Intelecard Expo Are Expected to Generate Approximately $45 Million in Fiscal 2008
Sep 11, 2007 - Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL), a high growth diversified holding company, today announced the planned launch of the Company's Guardian™ brand of prepaid calling card products at the Intelecard Expo in Las Vegas (www.intelecardexpo.com), scheduled between September 18 and 20. The Company recently announced that its Guardian products will be on retail shelves by October, 2007.
Last week, Titan announced the formation of Titan Card Services, Inc. ("Card Services") to capitalize on the burgeoning $289 Billion international prepaid money transfer sector. The launch of Card Services further validates the Company's high-growth business model and provides a seamless brand extension for Titan's growing family of prepaid products that are sold through a nationwide network of more than 65,000 retailers. The Guardian prepaid calling card products are Card Services' first branded products. In fiscal 2008, Card Services has been projected to generate revenues of $45 million as its management executes on its opportunities for revenue and earnings acceleration.
Given Titan's familiarity with the prepaid sector and the specific needs of its core demographic customer base, which includes first and second generation Americans, the Company's senior management identified a significant need in this growing market to transfer funds internationally.
While fast and convenient money transfer is very attractive to consumers, at the core of the Guardian products is an instant issue prepaid debit Master Card. Consumers will be provided incentives to move up the value chain from a one time use remittance to multiple remittances and, finally, onto a personalized prepaid debit card. Through the combination of proprietary card-based technology and the resources of industry partners while offering debit card capabilities, Guardian products are unique in the remittance space. To protect its proprietary technology, Titan recently retained a leading Washington D.C.-based intellectual property firm and also filed a patent application that is currently pending.
The competitive landscape in the money transfer industry is diverse. Western Union, a company with 305,000 agent locations and $1.2 billion in net income in fiscal 2006, is the largest accounting for 17.2% of all cross border transfers. Money Gram is currently the second largest with 125,000 agent locations and $156 million in net income in 2006. Other companies include online transfer operations, card-to-card, bank-to-bank and others. Each model provides complementary services but ultimately accomplishes the same thing: moving money across the border to loved family members and friends. The average remittance amount is between $300 and $400.
The rate at which Latin American migrants remit on a regular basis is relatively consistent at 60% to 70% of adults.
From a customer perspective, the Guardian Instant Money Transfer product is a simple three step process. First the customer purchases the product. Second, the customer calls customer service to register and provide basic information. Third, the customer is provided with the ability to contact the receiving party via live transfer or using the INTL LD PIN provided with the product.
"We are thrilled to launch our Guardian product line next week at Intelecard Expo," said Kurt Jensen, President of Titan's Communication and Card Services Division. "We are enhancing the lives of our customers by providing additional value-added services that permit them to transfer money efficiently and conveniently to friends and family around the globe."
As Titan distributes over 35 million international calling card products per year, the company is positioned to efficiently reach consumers that transfer money regularly, thus expanding services and profits from the same customer base. Additionally, Titan announced that its Guardian Money Transfer Cards will function in a similar fashion to prepaid international phone cards which will accelerate market acceptance and customer understanding.
"This is an example of our business unit leadership identifying and leveraging core competencies," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "Kurt and his team organically developed Guardian over the last twelve months. We are excited to launch Guardian as it holds solid profitability while offering our customers a clear value proposition. Guardian is a natural progression of adding additional services to our current offerings in the market segment."
About Titan Global Holdings
Titan Global Holdings, Inc. is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets, advanced technologies and energy. In its last fiscal year Titan generated in excess of $109 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. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. 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.
