Titan Companies Announces Transaction with Federated Department Stores Recovery Division

Titan Companies of Duluth, Georgia announced today that it has purchased the operating assets of First Automated Systems & Technology, Inc., a subsidiary of Federated Department Stores, and simultaneously entered into an extended placement agreement with FDS Bank, another subsidiary of Federated, for FDS Bank?s retail charge-off business relating to its Macy?s and Bloomingdale?s accounts.

The Cincinnati-based recovery center known throughout the industry as FAST handed over its operations to Titan effective June 26, 2006.

Titan founder and Chief Executive Officer, Fred Howard, stated, ?This is a remarkable achievement for our company which represents a significant milestone for our vision for Titan. We are honored to have completed this transaction with the wonderful people at FAST and FDS Bank, and will commit our best efforts to the employees of FAST and continuing the excellent reputation that they have throughout our industry.?

This announcement comes on the heels of an earlier announcement of a Shared Management Services Agreement between Titan and American Coradius International LLC of Amherst, New York, to provide management services to its collections facilities in Duluth, Georgia and Marion, Indiana. Howard noted that Titan has a specific strategy to expand its reach and capabilities through strategic alliances. ?Having relationships with partner firms such as ACI is a key to our alliance strategy, allowing us to aggressively pursue opportunities such as this one with Federated.?

While the specific terms of the deal are undisclosed, Titan officials revealed that they include provisions for uninterrupted employment transition of current FAST employees to Titan, and an extended placement agreement with FDS Bank for its existing charge-off business. ?One of our primary objectives has been to make this transition as seamless as possible, and to ensure to current FAST employees that it?s business as usual on June 26,? stated Howard. ?We?re anticipating retaining 100% of the present workforce and look forward to growing the business from there.?

FAST President, Bill Kadish, expressed his approval of the purchase by emphasizing that Titan became the early favorite because of its focus on the FAST employees. ?Since our first meeting, Titan has understood the commitment that we have to our people, and our determination to represent their interest in this transaction has been an overriding objective of the FAST management team. With the sale to Titan, we are confident that we have selected a firm that will support them through this transition and into the future.?

Titan plans on quickly expanding operations of the new division in Cincinnati to double the existing workforce. Additionally, the deal integrates well into Titan?s strategic opening of a 25,000 square foot facility in neighboring Marion, Indiana, approximately 200 miles from the Cincinnati office. ?We see these two locations as being very complementary of one another,? said Howard, ?and our objective is to focus the growth of both locations so that they work to support one another.? Titan Companies is a debt purchasing, recovery and financial services firm founded by Fred Howard, with corporate headquarters located in Duluth, Georgia. Titan is consistently ranked as one of the country?s top purchasers of distressed debt assets, and manages recovery floors in Duluth, Georgia and Marion, Indiana.