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For the quarterly period ended April 30, 2006




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For the transition period from


Commission File Number 000-29313


CRYSTAL INTERNATIONAL TRAVEL GROUP, INC.  (Name of small business issuer in its charter)


|Delaware                                                       | 20-0121007                          
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)

641 Shunpike Road - Suite 333 - Chatham, NJ 07928  (Address of principal executive offices & zip code)


973-644-0900  Registrant's telephone number, including area code:


(Former Name or Former Address, if Changed Since Last Report)




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State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 11,582,928




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CRYSTAL INTERNATIONAL TRAVEL GROUP, INC. BALANCE SHEET (UNAUDITED)
PERIOD ENDED APRIL 30, 2006

4/30/06ASSETSCURRENT ASSETSCash
$
3,995Prepaid expenses and other current assets
50,000Total current assets
53,995OTHER ASSETS:Intangible assets - net of amortization
4,896,666Other assets
-4,896,6664,950,661LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIESAccounts payable
525,688Accrued expenses
1,191,036Notes payable - related party
264,456Current portion of long-term debt
54,211Total current liabilities
2,035,391NON-CURRENT DEBT:Long term debt - net of current portion
6,014,654Debentures
350,000Other liabilities
30,0006,394,654STOCKHOLDERS' EQUITYCommon stock
23,012Retained earnings
(3,502,396)(3,479,384)$
4,950,661

See Notes to consolidated financial statements






























|                                    |               | 12/8/2005           |             |           
|----------------------------------- | ------------- | ------------------- | ----------- | ----------
|                                    | Quarter to    | (Date of Inception) | Prior Year  | Prior Year
|                                    | Date          | to                  | Qtr to Date | to Date   
|                                    | 4/30/2006     | 4/30/2006           | 4/30/2005   | 4/30/2005 
|                                    |               |                     |             |           
|REVENUE:                            |               |                     |             |           
|Gross revenue                       | $
-           | $
-                 | $
-         | $
-       
|                                    |               |                     |             |           
|                                    | -             | -                   | -           | -         
|                                    |               |                     |             |           
|COST AND EXPENSES:                  |               |                     |             |           
|Cost of goods sold                  | 152,620       | 152,620             | -           | -         
|General and administrative expenses | 534,298       | 611,169             | -           | -         
|                                    | 686,918       | 763,789             | -           | -         
|                                    |               |                     |             |           
|OPERATING INCOME                    | (686,918)     | (763,789)           | -           | -         
|                                    |               |                     |             |           
|OTHER INCOME (EXPENSES)             |               |                     |             |           
|Depreciation & amortization         | (125,000)     | (125,000)           | -           | -         
|Interest expense                    | (47,530)      | (47,530)            | -           | -         
|Loss on sale of assets              | -             | -                   | -           | -         
|Liabilities in excess of asset      |               |                     |             |           
|on purchase                         | (2,566,077)   | (2,566,077)         | -           | -         
|Other income                        | -             | -                   | -           | -         
|                                    |               |                     |             |           
|                                    | (2,738,607)   | (2,738,607)         | -           | -         
|                                    |               |                     |             |           
|                                    |               |                     |             |           
|NET INCOME (LOSS)                   | $ (3,425,525) | $
(3,502,396)       | $
-         | $
-       
|                                    |               |                     |             |           
|WEIGTED AVERAGE NUMBER OF SHARES    | 11,454,229    | 11,502,491          |             |           
|                                    |               |                     |             |           
|LOSS PER SHARE                      | $
(0.30)      | $
(0.30)            |             |           












































|                                                                | Quarter to Date | Year to Date 
|--------------------------------------------------------------- | --------------- | -------------
|                                                                | 2006            | 2006         
|                                                                |                 |              
|Net income                                                      | $
(3,425,525)   | $
(3,502,396)
|                                                                |                 |              
|Adjustments to reconcile net income to net cash                 |                 |              
|provided by (used for) operating activities:                    |                 |              
|Gain or loss on disposal of fixed assets                        | 7,668           | -            
|Liabilities in excess of assets                                 | 2,566,077       | 2,566,077    
|Depreciation and amortization                                   | 125,000         | 125,000      
|Changes in operating assets and liabilities:                    |                 |              
|Decrease in investments held for sale                           | 38              | -            
|Decrease in accounts receivable                                 | 57,259          | -            
|Increase in other current assets                                | (49,909)        | (50,359)     
|Decrease in deferred revenue                                    | (58,243)        |              
|Increase in accounts payable                                    | 162,096         | 117,527      
|(Increase) decrease in accrued expenses                         | 330,360         | 460,678      
|                                                                |                 |              
|Total adjustments                                               | 3,140,346       | 3,218,923    
|                                                                |                 |              
|Net cash used in operations                                     | (285,179)       | (283,473)    
|                                                                |                 |              
|                                                                |                 |              
|Cash flows from financing activities:                           |                 |              
|Payments on related party debt                                  | 116,746         | -            
|Proceeds on short term notes payable                            | 151,965         | 264,456      
|Proceeds from sale of stock                                     | -               | 23,012       
|                                                                |                 |              
|Net cash provided by (used in)                                  |                 |              
|financing activities                                            | 268,711         | 287,468      
|                                                                |                 |              
|NET INCREASE (DECREASE) IN CASH                                 | (16,468)        | 3,995        
|                                                                |                 |              
|CASH AT BEGINNING OF PERIOD                                     | 20,463          | -            
|                                                                |                 |              
|CASH AT END OF PERIOD                                           | $
3,995         | $
3,995      
|                                                                |                 |              
|                                                                |                 |              
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:              |                 |              
|                                                                |                 |              
|Non-cash activities:                                            |                 |              
|Exchange of debt for intangible assets                          |                 | $
5,021,307  
|                                                                |                 |              
|                                                                |                 |              
|Acquisition of
MobileReach International and Subsidiaries, Inc. |                 |              
|Assets assumed:                                                 |                 |              
|Cash                                                            |                 | $
292        
|                                                                |                 |              
|Liabilities assumed:                                            |                 |              
|Accounts payable                                                |                 | 408,453      
|Accrued expenses                                                |                 | 712,397      
|Debt                                                            |                 | 1,065,519    
|Convertible debentures & other liabilities                      |                 | 380,000      
|                                                                |                 |              
|                                                                |                 | 2,566,369    
|                                                                |                 |              
|Net liabilities exceeding net assets                            |                 | $
(2,566,077)







Consolidated Changes in Stockholders' EquityApril 30, 2006 and 2005Common StockShares
Amount
Accumulated Deficit
TotalBalance at December 8, 2005
-
$-
$-
$-Common stock issued to Crystal International Travel Group, Inc. stockholders
200
23,012
-
23,012Net loss
-
-
(76,871)
(76,871)Balance at January 31, 2006
200
23,012
(76,871)
(53,859)Common stock owned by Mobile Reach International, Inc. stockholders
4,322,543
-
-
-Shares issued for retirement of debt
260,385
-
-
-Common shares issued in merger to Crystal International Travel Group, Inc. stockholders
6,999,800
-
-
-Net loss
-
-
(3,425,525)
(3,425,525)Balance at April 30, 2006
11,582,928
$23,012
$(3,502,396)
$(3,479,384)  NOTES TO FINANCIAL STATEMENTS























Note 1 – Summary of Significant Accounting Policies:
















































































Note 2 - Going Concern:








Note 2 – Intangibles:




















Note 3 – Pro-forma information:





|                                   | Three Months Ended 4/30/2006 | Nine Months Ended 4/30/2006
|---------------------------------- | ---------------------------- | ---------------------------
|Net revenue                        | $
41,938                     | $
374,426                  
|Operating loss                     | (683,710)                    | (3,502,396)                
|Loss per share - basic and diluted | (0.06)                       | (0.30)                     




Note 3 - Notes Payable:








|Note payable to a vendor dated February 2005; due in eighteen monthly installments of $1,007 including interest at six percent.                                                                                                                             
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Note payable to a vendor dated July 2005; due in eighteen monthly installments of $390 including interest at eight percent.                                                                                                                                 
|Note payable to a vendor dated December 2004; due in six monthly installments of $2,836 including interest at eighteen percent, note is in default.                                                                                                         
|Note payable to former employee and former owner of Waves dated December 2004; bearing no interest and no specified repayment terms.                                                                                                                        
|Note payable for accrued wages; bearing interest at six percent; due and payable with interest at the earliest of (a) Company obtaining debt or equity funding greater than $1,000,000 in a quarter or (b) Company earns revenues of $1,000,000 in a quarter
|Note payable for F.S. SunTours purchase of 84 monthly payments of $100,000 of principle and interest discounted at 5.5 percent                                                                                                                              

Note 4 - Convertible Debentures:




















Note 6 - Shares Outstanding:








Note 7 – Related Party Transactions:






































Note 8 - Other Matters:








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Note 9 – Subsequent Events:








Note 10 – Legal proceedings:





















Results of Operations
 
 Nine months ending April 30, 2006 Compared to April 30, 2005
 
 
 
 
 
 
 
 Three Months ending April 30, 2006 Compared to Three Months ending April 30, 2005
 
 
 
 April 30, 2006
 
 LIQUIDITY AND CAPITAL RESOURCES
 
 
 
 OTHER SIGNIFICANT MATTERS







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not applicable




not applicable




not applicable




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|EX-31.1 | CERTIFICATION OF CEO PER SECTION 302
|------- | ------------------------------------
|EX-31.2 | CERTIFICATION OF CFO PER SECTION 302
|EX-32.1 | CERTIFICATION OF CEO PER SECTION 906
|EX-32.2 | CERTIFICATION OF CFO PER SECTION 906

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|                    |     |                                               
|------------------- | --- | ----------------------------------------------
|                    |    
|Date: June 21, 2006 | By: | /s/ Fabrizzio Busso Campana                   
|                    |     | Fabrizzio Busso CampanaChief Executive Officer

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