Titan Global Announces Agreement in Principal with Capital Source for New Financings

Dallas, Texas (PressExposure) August 15, 2006 -- Dallas, Texas – August 14, 2006 –Titan Global Holdings, Inc. (“Titan”) (OTC BB: TTGL) announced that Titan both amended its existing financing facilities and reached an agreement in principal with Capital Source Finance, LLC (“Capital Source”) to establish a new $15,000,000 revolving credit facility and $4,974,000 senior term loan.

The new financings will be used to repay the existing credit facility of Oblio Telecom Inc. with Capital Source, to finance a portion of a recapitalization, and to provide for future working capital requirements.

The new financings will also be used, in part, to repay senior convertible loans due to Laurus Master Fund, Ltd.

The Revolving Credit Facility would have a term of three years and an interest rate of the Prime Rate of Citibank, N.A. plus 1.50%, and the Senior Term Loan would have a term of three years and would be amortized over four years on a straight line basis with an interest rate of the Prime Rate of Citibank, N.A., plus 4.00%. Titan and Capital Source expect to close the transaction by September 30, 2006.

These new financing arrangements will include the issuance of Common Stock and dilution to current shareholders. There can be no assurance that such new financing arrangements will be finalized in a timely fashion or on terms acceptable to Titan. If the parties are unable to agree on final terms, the contemplated financings will not be completed.

“In our current fiscal year we paid approximately $7.5 million to our senior lenders in interest, fees, and principal,” said David Marks, Chairman of Titan. “Given these contractual obligations, Titan wasn’t able to invest in significant organic growth. As we look towards our next fiscal year, Titan’s management is very focused on de-leveraging its balance sheet. Upon completion of these new financings, Titan will have more flexibility to use its substantial free cash flow for use to exploit Titan’s organic and strategic opportunities.”

“In our fiscal year which ends August 31, 2006 Titan made great fundamental progress in dramatically growing its revenue and EBDITA,” said Bryan Chance, CFO of Titan Global Holdings. “The completion of these financings will give our subsidiaries the working capital to exploit organic and strategic opportunities that deliver a high return on invested cash flow.”

EBIDTA is defined as earnings before interest, taxes, depreciation and amortization.

The agreement in principal is subject to Capital Source’s ongoing due diligence and audits, Titan’s execution and delivery to Capital Source of loan and security agreements, notes, and assurances as are reasonable and customary for similar loans, and as Capital Source may reasonably require in connection with the Closing. Further, the agreement in principal requires Titan to issue Capital Source 175,000 shares of its common stock and to raise additional equity or convertible debt of at least $5.5m.

Titan has filed an 8-K with the Securities and Exchange Commission relating to its financing with Capital Source.

About Titan Global Holdings, Inc. http://www.titanglobalholdings.com:

Titan Global Holdings, Inc (OTCBB: TTGL f\k\a TTGH) is an emerging growth telecommunications and technology company. The company is best known for its Picante and TCC brands marketed through its Oblio Telecom division (www.obliotel.com) which is a market leader in prepaid telecommunications services based in Richardson, Texas. Oblio Telecom provides a broad array of prepaid international calling cards through a distribution network covering an estimated 60,000 retail locations nationwide and in Puerto Rico. The Company is currently strategic partners with two tier one communications providers for its prepaid calling card services and is expanding its capacity to terminate calls internally. Additionally, the Company successfully launched BRAVO Cellular, a prepaid wireless communications division, in its second fiscal quarter of 2006. BRAVO Cellular offers prepaid wireless solutions to a rapidly expanding market segment through a mobile virtual network operator agreement with a tier one communications provider.

The Company also operates Titan PCB, a leading manufacturer of printed circuit boards with facilities in California and Massachusetts. The Massachusetts facility (www.titaneast.com) is 31032 certified by the United States Department of Defense. This facility specializes in military production and rigid flex production. The California facility (www.titanems.com) focuses primarily on innovative prototype, quick-turn and pre-production of high layer count printed circuit boards.

The Company employs more than 200 people in Amesbury, Massachusetts; Fremont, California and Richardson, Texas.

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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.

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Press Release Submitted On: August 14, 2006 at 12:58 pm
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