The Prepaid Press - October 15, 2008 - (Page 13)

CALLING CARDS October 15 · 2008 - 13 Oblio Wins Judgment Texas Jury Awards $2.5 Million Titan lost $18.7 million on revenues of $22.3 million in the Communications Division in the first quarter of 2008, compared to revenues of $24.5 and a loss of $126,000 in the same quarter of 2007. The 2008 loss included a “goodwill impairment” charge of 14.6 million. Chance blamed the losses on uncollected and reserved accounts receivable in its lease network operations. In April, the company reported that there had been a significant decrease in both sales and collections at Oblio. Because of what it called an “extended collection process,” along with losses in its network operations, Titan decided to stop doing business as Oblio in the prepaid international long distance market. It also said that it had ceased its Titan Wireless RM wireless subsidiary operations and sold the assets to Boomerang Wireless for $1,000 and a release of liability. Although TPP could not confirm that the spinoff has occurred, Titan did create Titan Comand calls to the company for comment had not been returned at press time. from page 1 with financial problems, but the Communications Division’s $18.7 million loss was the largest. The company said that it was making the split because it would create “significantly greater opportunities” for building shareholder value. Bryan Chance, President and Chief Executive Officer of Titan Global Holdings, said that the various subsidiaries comprising Titan’s Communications Division would be spun off to Titan’s shareholders, and each existing Titan communication unit will become a division of Pinless, Inc., a wholly owned subsidiary of Titan. Pinless, Inc. was to be renamed to Planet Direct, Inc. and its prepaid phone card products will be marketed under the Planet Direct brand name. Chance told The Prepaid Press that “very serious acts were perpetrated against our communications division and we intend to prosecute those acts to the fullest extent available under the law.” munications, Inc. and began operations as Planet Direct. In June, the company reported that it was creating a new VoIP platform to serve the calling card industry. There was no indication that the spin offs announced in February had occurred Litigation History Simultaneous with the split, Oblio announced that it had commenced fraud litigation against a number of parties, including a former employee of Oblio. Several distributors of its most popular prepaid telephone calling cards were also named. The lawsuit alleged that the former employee conspired with Oblio’s distributors in what it termed “illegal schemes and racketeering activities.” Oblio said the actions were designed to defraud Oblio out of millions of dollars of prepaid telephone cards. It also said that the actions were in violation of the Racketeer Influenced and Corrupt Organizations (R.I.C.O.) Act. In February, Chance told The Prepaid Press that “very serious acts were perpetrated against our communications division and we intend to prosecute those acts to the fullest extent available under the law.” Chance said that the acts had “significant impact” to Titan’s market capitalization, and its operations and its ability to continue to provide prepaid calling cards to its customers. The lawsuit seeks injunctive, monetary, and other appropriate relief for trademark infringement, false designation of origin, and unfair competition under the Lanham Act and related causes of action under the common law of Texas. In commenting on the jury award, Kurt Jensen, President and CEO of Titan’s Communication Division, said, “Through the passage of time and our continued effort, we have gained momentum in our litigation and we expect such efforts to intensify this fall. We will not slow down in our efforts to hold those responsible for the fraud and related losses at Oblio accountable.” Calling Cards in Brief Pactolus Communications Software, makers of SIP applications and service creation/delivery solutions, has announced that its SIPdev.org Developer Community’s open source framework/ open access service creation environment (SCE) has received the “Best of Show Award” for Open Source products at Technology Marketing Corporation (TMC)’s INTERNET TELEPHONY Conference and EXPO West 2008. The award recognizes SIPdev.org’s freely available service creation environment, and its support for new levels of feature innovation and service breadth. Pactolus Communications Software www.pactolus.com TMC - www.tmcnet.com tactical plans that maximize growth and profitability and for accelerating the company’s global expansion efforts. Dialogic – www.dialogic.com Virgo Publishing, a business-to-business information services company, has acquired certain media assets formerly owned by Pulvermedia through a foreclosure by TICC, Pulvermedia’s secured creditor. DeSilva+Phillips, LLC, the New York-based investment bank specializing in media and digital media, provided financial advisory services in this transaction. With the assets, primarily databases and trademarks, Virgo Publishing plans to launch new industry-targeted products as part of its Telecom Division. Virgo – www.vpico.com IDT Corporation’s (NYSE:IDT; IDT.C) Board of Directors have approved a CEO succession plan, an extended employment and compensation arrangement with Howard Jonas, an agreement by its Vice Chairman/CEO to accept his base salary in IDT stock in lieu of salary and the retention of Jefferies & Company, Inc. to act as financial advisor to the Company. IDT founder and Chairman, Howard Jonas, has agreed to become the Company’s Chief Executive Officer upon the retirement of the Company’s current CEO, Jim Courter. Courter’s current employment contract expires on October 21, 2009. Jonas will enter into a five-year employment agreement with IDT, providing for the payment of his base compensation in shares of Common Stock for the five-year period beginning on January 1, 2009. Under the Agreement, Jonas will receive a total of 3,518,518 shares of Common Stock in lieu of compensation in the fourth and fifth years of the agreement, and the restrictions on these additional shares will lapse at the end of the term of the agreement. The arrangement is subject to finalizing a revised definitive employment agreement between the Company and Jonas. IDT – www.idt.net Dialogic Corporation, a provider of products and technologies for media and signal processing, has appointed Kevin Cook as Senior Vice President of Worldwide Sales. In this new capacity, Cook will be charged with growing, developing and leading the company’s sales, service and support organizations. He will have direct responsibility for creating strategic and FreeConference, providers of free audio conference call services, will start distributing low cost calling cards for conferencing and all long distance calls. These prepaid cards from Excite Telecom (ETI) can be used for any one-to-one or conference call, both in the US and internationally. Cards are available through the FreeConference website, and can be purchased by anyone — with or without a FreeConference account. Purchasers receive their pin number instantly for immediate use, and gift recipients are sent their pin number via email. FreeConference - www.freeconference.com http://www.allstatecentral.com http://www.dialogic.com http://www.SIPdev.org http://www.SIPdev.org http://www.SIPdev.org http://www.allstatecentral.com http://www.pactolus.com http://www.tmcnet.com http://www.idt.net http://www.vpico.com http://www.allstatecentral.com http://www.freeconference.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - October 15, 2008

The Prepaid Press - October 15, 2008 Oblio Wins Judgment Mobile Remittance Providers Look to Latin America Contents The Retske Report: The Game Changer Regulatory Rundown: New Rules and Requirements Likely for 2009 5 Minutes With Saul Bienenfeld, President of Pop2Call Prepaid Wireless Roundup MetroPCS Sues Virgin Mobile Wireless in Brief Leap’s Cricket Service Introduces Cricket PAYGo Virgin Mobile USA to Launch the Shuttle New Study Shows Mobile Phones Merging Roles TracFone Launches SafeLink Wireless in FL IVI and Titan Sign Agreement with YA Global Boost Mobile Launches New Phone The State of Prepaid Technology: Will the Coming Market Bring You Problems or Opportunities? Calling Cards in Brief The Legal Line Tata Awarded Cisco Powered Status IDT Fails to Meet NYSE Listing Standards BillSoft Offers New Taxation Service Dialogic to Acquire NMS Platforms Business STi Acquires Sprint’s Calling Card Business TelcoBridges Introduces ToolPack System Manager Hypercom Increases Multilane Team Mobile Banking: CGAP Spurs Market Prepaid Resources Introduces PORTABLES Bancorp and Obopay Introduce Payment Card Verities, Inc. Partners with BBB and i2c Inc. The Bancorp Bank Partners with LeagueSafe Donor Dialogue Partners with Springbok Services Mercator Offers New Merchant Report Travelex Launches Budget Calculator MPOWER Companies Join Clinton Global Initiative Payments in Brief Promotions Evolve into Must-Have Marketing Strategy for Prepaid Sector Access Launches Cash-Back Rewards VendTek Partners with United Bank Card Flash Foods, Tedeschi Partner with Pinnacle Prepaid 101: Basics of PINs Gasoline Cards to Benefit Armed Forces, Veterans i2c Inc. Signs Agreement with Diestel iPayStation Partners with Pronto Envios Sodexo Releases Prepaid Incentive Card Heartland Leverages VeriFone Managed Services Retail Focus in Brief Our Advertisers Contact Us

The Prepaid Press - October 15, 2008

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