**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**Washington,      D.C. 20549 **

----

**FORM      10-QSB **

----

**January      31, 2007 **

**Commission      File Number **
**000-29313      **

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. **

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

**2160      Headquarters Plaza, 10**
**th**

**      Floor, Morristown, New Jersey 07960 **

**973-644-0900      **

** **

----

----

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**PART      I - FINANCIAL INFORMATION**

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**INDEX      TO FINANCIAL STATEMENTS**

**January      31, 2007**

**(Unaudited)**

|                                                                           | Pages                   |
|--------------------------------------------------------------------------------|-------------------------|
|                                                                           |                    |
| INDEX                                                                          | F1                      |
|                                                                           |                    |
| FINANCIAL                STATEMENTS:                                           |                    |
|                                                                           |                    |
| Condensed                Consolidated Balance Sheet                            | F2                      |
|                                                                           |                    |
| Condensed                Consolidated Statements of Income                     | F3                - F4  |
|                                                                           |                    |
| Condensed                Consolidated Statement of Stockholders’ Deficit | F5                - F6  |
|                                                                           |                    |
| Condensed                Consolidated Statement of Cash Flows                  | F7                - F8  |
|                                                                           |                    |
| Notes                to Condensed Consolidated Financial Statements            | F9                - F15 |
|                                                                           |                    |

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**CONDENSED      CONSOLIDATED BALANCE SHEET**

**January      31, 2007**

**(Unaudited)**

| **ASSETS**                                                                                                                                                                     |   |   |        |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|
|                                                                                                                                                                           |   |   |        |   |   |
| **CURRENT                  ASSETS:**                                                                                                                                           |   |   |        |   |   |
| Cash                                                                                                                                                                           |   | $      | 7,974       |   |   |   |   |
| Prepaid                  insurance                                                                                                                                             |   |   | 7,603       |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
| Total                  current assets                                                                                                                                          |   |   |        |   | $      | 15,577 |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
| **PROPERTY                  & EQUIPMENT -**net                  of accumulated depreciation                                                                                |   |   |        |   |   | 39,086 |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
| **OTHER                  ASSETS:**                                                                                                                                             |   |   |        |   |   |   |   |
| Deposits                                                                                                                                                                       |   |   | 11,862      |   |   |   |   |
| Goodwill                                                                                                                                                                       |   |   | 120,828     |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   | 132,690 |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   | $      | 187,353 |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
| **LIABILITIES                  & STOCKHOLDERS’ EQUITY**                                                                                                              |   |   |        |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
| **CURRENT                  LIABILITIES:**                                                                                                                                      |   |   |        |   |   |   |   |
| Current                  portion long-term debt                                                                                                                                |   | $      | 30,000      |   |   |   |   |
| Short-term                  notes payable                                                                                                                                      |   |   | 660,168     |   |   |   |   |
| Accounts                  payable                                                                                                                                              |   |   | 1,147,295   |   |   |   |   |
| Notes                  payable - related parties                                                                                                                               |   |   | 248,856     |   |   |   |   |
| Accrued                  liabilities                                                                                                                                           |   |   | 1,623,782   |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   | $      | 3,710,101 |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
| **LONG-TERM                  LIABILITIES:**                                                                                                                                    |   |   |        |   |   |   |   |
| Long-term                  debt                                                                                                                                                |   |   | 5,021,307   |   |   |   |   |
| Convertible                  debentures                                                                                                                                        |   |   | 2,705,990   |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   | 7,727,297 |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
| **STOCKHOLDERS’                  EQUITY:**                                                                                                                               |   |   |        |   |   |   |   |
| Preferred                  stock; $.0001 par value; 100,000,000 shares authorized                                                                                              |   |   | 0           |   |   |   |   |
| Common                  stock; par value $.001; 500,000,000 shares authorized, 13,848,204                  issued                  and outstanding, 58,463 shares to be issued |   |   | 23,218      |   |   |   |   |
| Paid-in                  capital                                                                                                                                               |   |   | 2,969,705   |   |   |   |   |
| Deficit                  accumulated during the development stage                                                                                                              |   |   | (14,242,968 | )      |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   |   | (11,250,045 | ) |
|                                                                                                                                                                           |   |   |        |   |   |   |   |
|                                                                                                                                                                           |   |   |        |   | $      | 187,353 |   |
|                                                                                                                                                                           |   |   |        |   |   |   |   |

**See        Notes to Condensed Consolidated Financial Statements**

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

**(Unaudited)**

|                                               |   | For              the Quarter                  |       | Year                to Date                                                                        |   | From                Inception                    |   |
|----------------------------------------------------|--------|----------------------------------------------------|------------|---------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |
|                                               |   | Three                Months Ended January 31, 2007 |       | Period                from December 8, 2005 (Date of Inception) through January 31,                2006 |   | Six                Months Ended January 31, 2007 |   | Period                from December 8, 2005 (Date of Inception) through January 31,                2006 |   | Period                from December 8, 2005 (Date of Inception) through January 31,                2007 |   |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |
| **REVENUE:**                                       |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |
| Sales                                              |   | $                                                  | 27,869     |                                                                                                    | $      | 0                                                |   | $ | 55,693 |   | $ | 0 |   | $ | 55,693 |   |
| License                & fees                  |   |                                               | 0          |                                                                                                    |   | 0                                                |   |   | 0 |   |   | 0 |   |   | 6,628 |   |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                                               | 27,869     |                                                                                                    |   | 0                                                |   |   | 55,693 |   |   | 0 |   |   | 62,321 |   |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| **COST                AND EXPENSES:**              |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Cost                of goods sold                  |   |                                               | 17,091     |                                                                                                    |   | 0                                                |   |   | 30,924 |   |   | 0 |   |   | 30,924 |   |
| Sales                & marketing               |   |                                               | 0          |                                                                                                    |   | 0                                                |   |   | 0 |   |   | 0 |   |   | 0 |   |
| General                and administrative expenses |   |                                               | 757,200    |                                                                                                    |   | 199,377                                          |   |   | 1,382,229 |   |   | 199,377 |   |   | 8,560,882 |   |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                                               | 774,291    |                                                                                                    |   | 199,377                                          |   |   | 1,413,153 |   |   | 199,377 |   |   | 8,591,806 |   |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                LOSS**                  |   |                                               | (746,422   | )                                                                                                       |   | (199,377                                         | )      |   | (1,357,460 | ) |   | (199,377 | ) |   | (8,529,485 | ) |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| **OTHER                INCOME (EXPENSES):**        |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                    |   |                                               | (632,219   | )                                                                                                       |   | (581                                             | )      |   | (1,836,091 | ) |   | (                581 | ) |   | (3,190,806 | ) |
| Product                development costs           |   |                                               | 0          |                                                                                                    |   | 0                                                |   |   | (22,082 | ) |   | 0 |   |   | (22,082 | ) |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                                               | (632,219   | )                                                                                                       |   | (                581                             | )      |   | (1,858,173 | ) |   | (                581 | ) |   | (3,212,888 | ) |
|                                               |   |                                               |       |                                                                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| **NET                LOSS BEFORE INCOME TAXES**    |   |                                               | (1,378,641 | )                                                                                                       |   | (199,958                                         | )      |   | (3,215,633 | ) |   | (199,958 | ) |   | (11,742,373 | ) |

**See        Notes to Condensed Consolidated Financial Statements**

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**CONDENSED      CONSOLIDATED STATEMENT OF INCOME**

**(Continued)**

**(Unaudited)**

|                                                  |   | For                the Quarter                     |       | Year                to Date                                                                             |   |                From                Inception |   |
|-------------------------------------------------------|--------|----------------------------------------------------|------------|---------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                  |   |                                               |       |                                                                                                    |   |                                              |   |   |   |   |   |
|                                                  |   | Three                Months Ended January 31, 2007 |       | Period                from December 8, 2005 (Date of Inception) through January 31,                2006 |   | Six                Months Ended January 31, 2007  |   | Period                from December 8, 2005 (Date of Inception) through January 31,                2006 |   | Period                from December 8, 2005 (Date of Inception) through January 31,                2007 |   |
|                                                  |   |                                               |       |                                                                                                    |   |                                              |   |   |   |   |   |
| **NET                LOSS BEFORE INCOME TAXES**       |   |                                               | (1,378,641 | )                                                                                                       |   | (199,958                                          | )      |   | (3,215,633 | ) |   | (199,958 | ) |   | (11,742,373 | ) |
|                                                  |   |                                               |       |                                                                                                    |   |                                              |   |   |   |   |   |   |   |   |   |   |
| **INCOME                TAX (EXPENSE) BENEFIT**       |   |                                               | 0          |                                                                                                    |   | 0                                                 |   |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                  |   |                                               |       |                                                                                                    |   |                                              |   |   |   |   |   |   |   |   |   |   |
| **NET                LOSS**                           |   | $                                                  | (1,378,641 | )                                                                                                       | $      | (199,958                                          | )      | $ | (3,215,633 | ) | $ | (199,958 | ) | $ | (11,742,373 | ) |
|                                                  |   |                                               |       |                                                                                                    |   |                                              |   |   |   |   |   |   |   |   |   |   |
| **WEIGHTED                AVERAGE NUMBER OF SHARES**  |   |                                               | 12,561,451 |                                                                                                    |   | 7,100,000                                         |   |   | 12,482,254 |   |   | 7,100,000 |   |   | 10,484,065 |   |
|                                                  |   |                                               |       |                                                                                                    |   |                                              |   |   |   |   |   |   |   |   |   |   |
| **LOSS                PER SHARE - BASIC AND DILUTED** |   | $                                                  | (0.11      | )                                                                                                       | $      | (0.03                                             | )      | $ | (0.26 | ) | $ | (0.03 | ) | $ | (1.12 | ) |
|                                                  |   |                                               |       |                                                                                                    |   |                                              |   |   |   |   |   |   |   |   |   |   |

**See          Notes to Condensed Consolidated Financial Statements**

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT**

**(Unaudited)**

|                                                                                                  | Common                Stock |   |         |   |                           |   |                                                        |
|-------------------------------------------------------------------------------------------------------|-----------------------------|--------|--------------|--------|--------------------------------|--------|-------------------------------------------------------------|
|                                                                                                  | Shares                      |   | Amount       |   | Paid-in                Capital |   | Deficit                Accumulated During Development Stage |   | Total |
| **Balance                at December 8, 2005 (Date of Inception)**                                    | 0                      | $      | 0       | $      | 0                         | $      | 0                                                      | $ | 0  |
|                                                                                                  |                        |   |         |   |                           |   |                                                        |   |   |
| Common                shares issued in formation of Crystal Hospitality Holdings,                Inc. | 200                    |   | 23,012  |   | 0                         |   | 0                                                      |   | 23,012  |
|                                                                                                  |                        |   |         |   |                           |   |                                                        |   |   |
| Net                loss                                                                               | 0                      |   | 0       |   | 0                         |   | (76,871)                                                    |   | (76,871) |

| **Balance                at January 31, 2006**                                                             | 200         |   | 23,012  |   | 0          |   | (76,871)     |   | (53,859)        |
|------------------------------------------------------------------------------------------------------------|------------------|--------|--------------|--------|-----------------|--------|--------------|--------|-----------------|
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| Shares                exchanged for common shares of Mobile Reach International,                Inc.       | (200)            |   | 0       |   | 0          |   | 0       |   | 0          |
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| Common                shares issued to Crystal Hospitality Holdings, Inc.                stockholders      | 7,100,000   |   | 0       |   | 0          |   | 0       |   | 0          |
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| Common                shares owned by Mobile Reach International, Inc.                stockholders         | 4,743,276   |   | 0       |   | 0          |   | 0       |   | 0          |
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| Net                liabilities in excess of assets acquired in share exchange                              | 0           |   | 0       |   | 0          |   | (2,477,311)  |   | (2,477,311)     |
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| Fair                market value of warrants attached to short-term debt                issued             | 0           |   | 0       |   | 68,000     |   | 0       |   | 68,000     |
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| Fair                market value of beneficial conversion feature of convertible                debentures | 0           |   | 0       |   | 1,990,711  |   | 0       |   | 1,990,711  |
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| Net                loss                                                                                    | 0           |   | 0       |   | 0          |   | (8,473,153)  |   | (8,473,153)     |
|                                                                                                       |             |   |         |   |            |   |         |   |            |
| **Balance                at July 31, 2006**                                                                | 11,843,276  | $      | 23,012  | $      | 2,058,711  | $      | (11,027,335) | $      | (8,945,612)     |
|                                                                                                       |             |   |         |   |            |   |         |   |            |

**See        Notes to Condensed Consolidated Financial Statements**

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT**

**(Continued)**

**(Unaudited)**

|                                                                                                           |   | Common                  Stock |       |   |   |                             |   |                                                          |      |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|--------|----------------------------------|--------|---------------------------------------------------------------|-----------|
|                                                                                                           |   | Shares                        |       | Amount |   | Paid-in                  Capital |   | Deficit                  Accumulated During Development Stage |      | Total |   |
| **Balance                  at July 31, 2006**                                                                  |   |                          | 11,843,276 |   | $      | 23,012                           |   | $                                                             | 2,058,711 |   | $ | (11,027,335 | ) | $ | 0 |   |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| Common                  shares issued in connection with conversion of debentures                              |   |                          | 562,518    |   |   | 56                               |   |                                                          | 228,779   |   |   | 0 |   |   | 0 |   |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| Fair                  market value of beneficial conversion feature of convertible                  debentures |   |                          | 0          |   |   | 0                                |   |                                                          | 630,000   |   |   | 0 |   |   | (8,945,612 | ) |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| Net                  loss                                                                                      |   |                          | 0          |   |   | 0                                |   |                                                          | 0         |   |   | (1,836,975 | ) |   | 228,835 |   |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| **Balance                  at October 31, 2006**                                                               |   |                          | 12,405,794 |   |   | 23,068                           |   |                                                          | 2,917,490 |   |   | (12,864,310 | ) |   | (9,923,752 | ) |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| Common                  shares issued in connection with conversion of debentures                              |   |                          | 1,400,873  |   |   | 150                              |   |                                                          | 35,735    |   |   | 0 |   |   | 35,885 |   |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| Fair                  market value of warrants attached to short-term debt                  issued             |   |                          | 0          |   |   | 0                                |   |                                                          | 16,480    |   |   | 0 |   |   | 16,480 |   |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| Net                  loss                                                                                      |   |                          | 0          |   |   | 0                                |   |                                                          | 0         |   |   | (1,378,641 | ) |   | (1,378,641 | ) |
|                                                                                                           |   |                          |       |   |   |                             |   |                                                          |      |   |   |   |   |   |   |   |
| **Balance                  at January 31, 2007**                                                               |   |                          | 13,806,667 |   | $      | 23,218                           |   | $                                                             | 2,969,705 |   | $ | (14,242,951 | ) | $ | (11,250,028 | ) |

**See        Notes to Condensed Consolidated Financial        Statements**

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**CONDENSED      CONSOLIDATED STATEMENT OF CASH FLOWS**

**(Unaudited)**

|                                                                                                            |   | Six                Months Ended January 31, 2007 |       | December                8, 2005 (Date of Inception) through January 31, 2006 |   | December                8, 2005 (Date of Inception) through January 31, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|------------|------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |
| **Net                loss**                                                                                     |   | $                                                | (3,215,633 | )                                                                            | $      | (199,958                                                                     | )      | $ | (11,757,799 | ) |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |
| **Adjustments                to reconcile net income to net cash used in operating                activities:** |   |                                             | 2,334,720  |                                                                         |   | 88,498                                                                       |   |   | 9,821,863 |   |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |
| **Net                cash used in operating activities**                                                        |   |                                             | (880,913   | )                                                                            |   | (111,460                                                                     | )      |   | (1,935,936 | ) |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |
| **Cash                flows used in investing activities**                                                      |   |                                             | (135,419   | )                                                                            |   | 0                                                                            |   |   | (177,650 | ) |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |
| **Cash                flows provided by financing activities**                                                  |   |                                             | 988,817    |                                                                         |   | 111,467                                                                      |   |   | 2,121,560 |   |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |
| **Net                (decrease) increase in cash**                                                              |   |                                             | (27,515    | )                                                                            |   | 7                                                                            |   |   | 7,974 |   |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |
| **Cash                - beginning of period**                                                                   |   |                                             | 35,489     |                                                                         |   | 0                                                                            |   |   | 0 |   |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |
| **Cash                - end of period**                                                                         |   | $                                                | 7,974      |                                                                         | $      | 7                                                                            |   | $ | 7,974 |   |
|                                                                                                            |   |                                             |       |                                                                         |   |                                                                         |   |   |   |   |

**See        Notes to Condensed Consolidated Financial Statements**

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION**

|                                                              |   |   | Six                Months Ended January 31, 2007  |   |   | Six                Months Ended January 31, 2006  |   |   | December                8, 2005 (Date of Inception) through January 31, 2007  |   |
|-------------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------|
|                                                              |   |   |                                                   |   |   |                                                   |   |   |                                                                               |   |
| **Non-cash              activities:**                             |   |   |                                                   |   |   |                                                   |   |   |                                                                               |   |
| Conversion                of debentures for common stock          |   | $      | 294,055                                                |   | $      | 0                                                      |   | $      | 294,055                                                                            |   |
| Refinancing                of short-term debt to convertible debt |   |   | 0                                                      |   |   | 0                                                      |   |   | 100,000                                                                            |   |
| Exchange                of debt for intangible assets             |   |   | 0                                                      |   |   | 0                                                      |   |   | 5,021,307                                                                          |   |
|                                                              |   |   |                                                   |   |   |                                                   |   |   |                                                                               |   |

| **Acquisition              of Travel House, Inc.:** |   |   |    |   |   |   |   |   |    |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
| Purchase                price                       |   | $      | 123,500 |   | $      | 0      |   | $      | 123,500 |   |
| Add:                                                |   |   |    |   |   |   |   |   |    |   |
| Cash                                                |   |   | 1,132   |   |   | 0      |   |   | 1,132   |   |
|                                                |   |   |    |   |   |   |   |   |    |   |
| Subtract:                                           |   |   |    |   |   |   |   |   |    |   |
| Accounts                payable                     |   |   | (3,804  | )      |   | 0      |   |   | (3,804  | )      |
|                                                |   |   |    |   |   |   |   |   |    |   |
| Goodwill                                            |   | $      | 120,828 |   | $      | 0      |   | $      | 120,828 |   |
|                                                |   |   |    |   |   |   |   |   |    |   |

| **Acquisition              of Mobile Reach International and Subsidiaries:** |   |   |      |
|------------------------------------------------------------------------------|--------|--------|-----------|
| Assets                assumed:                                               |   |   |      |
| Cash                                                                         |   | $      | 262       |   |
|                                                                         |   |   |      |   |
| Liabilities                assumed:                                          |   |   |      |   |
| Accounts                payable                                              |   |   | 408,527   |   |
| Accrued                expenses                                              |   |   | 507,859   |   |
| Short-term                debt                                               |   |   | 294,169   |   |
| Long-term                and convertible debt                                |   |   | 1,267,018 |   |
|                                                                         |   |   |      |   |
|                                                                         |   |   | 2,477,573 |   |
|                                                                         |   |   |      |   |
| Net                liabilities exceeding net assets                          |   | $      | 2,477,311 |   |
|                                                                         |   |   |      |   |

**See          Notes to Condensed Consolidated Financial Statements**

----

**CRYSTAL      INTERNATIONAL TRAVEL GROUP, INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**(F**
**ormerly      Mobile Reach International, Inc.)**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note      1 - Summary of Accounting Policies:**

**General:**

**Business:**

**Basis      of presentation:**

**See          Notes to Condensed Consolidated Financial Statements**

----

**Development      stage operations:**

**Concentrations      of credit risk:**

**Intangible      assets:**

**Income      taxes:**

**See          Notes to Condensed Consolidated Financial          Statements**

----

**Fair      value of financial instruments:**

**Use      of accounting estimates:**

**Note      2 - Going Concern:**

**See          Notes to Condensed Consolidated Financial Statements**

----

**Note      3 - Property and Equipment:**

|                                          |   | January                31, 2007 |   | Estimated                Useful Lives |   |
|-----------------------------------------------|--------|---------------------------------|--------|---------------------------------------|--------|
|                                          |   |                            |   |                                  |   |
| Office                and computer equipment  |   | $                               | 44,960 |                                  |   | 3                to 7 years |   |
| Less:                accumulated depreciation |   |                            | (5,874 | )                                     |   |   |   |
|                                          |   | $                               | 39,086 |                                  |   |   |   |
|                                          |   |                            |   |                                  |   |   |   |

**Note      4 - Accrued Liabilities:**

|                                      |   |   |      |
|-------------------------------------------|--------|--------|-----------|
| Salary                and wages payable   |   | $      | 259,059   |   |
| Accrued                and withheld taxes |   |   | 515,839   |   |
| Accrued                interest           |   |   | 427,820   |   |
| Accrued                service expense    |   |   | 410,089   |   |
| Other                accrued expenses     |   |   | 10,975    |   |
|                                      |   |   |      |   |
| Total                accrued expenses     |   | $      | 1,623,782 |   |
|                                      |   |   |      |   |

**Note      5 - Short-term Notes Payable:**

|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Note                payable due to a vendor dated February 2005; due in eighteen monthly                installments of $1,007 including interest at ten percent; note is                in                default.                                                                                                                                                                                                                               |   | $      | 5,524  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Note                payable for accrued wages dated August 2002; 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 is in                default.                                      |   |   | 49,908 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| 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.                                                                                                                                                                                                                                                  |   |   | 17,027 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Note                payable to former employees for accrued wages and expenses dated                February                and March 2005; bearing                no interest and due and payable 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 is in                default. |   |   | 24,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |

**See          Notes to Condensed Consolidated Financial Statements**

----

| Note                payable to a vendor dated March 2005; bearing no interest due in                four                equal monthly payments of $14,000; note is in default.               |   |   | 56,000  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                                                                                                         |   |   |    |   |
| Note                payable to former employee dated April 2005; bearing no interest                and due                in six monthly installments of $5,000; note is in default.        |   |   | 30,000  |   |
|                                                                                                                                                                                         |   |   |    |   |
| Note                payable to a vendor dated July 2005; due in eighteen monthly installments                of $390 including interest at eight percent; note is in                default. |   |   | 6,243   |   |
|                                                                                                                                                                                         |   |   |    |   |
| Note                payable to former employee dated December 2004; bearing no interest                and no                specified repayment terms.                                      |   |   | 12,740  |   |
|                                                                                                                                                                                         |   |   |    |   |
| Note                payable to vendor dated July 2005; due in eleven monthly installments                of                $1,500; note is in default.                                       |   |   | 15,888  |   |
|                                                                                                                                                                                         |   |   |    |   |
| Notes                payable to former employees dated March 2006; due in a single payment                on                June 30, 2006; notes are in default.                             |   |   | 42,838  |   |
|                                                                                                                                                                                         |   |   |    |   |
| Note                payable dated November 2006; due in a single payment with interest                accrued                at twelve percent on March 31, 2007.                            |   |   | 400,000 |   |
|                                                                                                                                                                                         |   |   |    |   |
| Total                short-term notes payable                                                                                                                                                |   | $      | 660,168 |   |
|                                                                                                                                                                                         |   |   |    |   |

**Note      6 - Convertible Debentures:**

**See          Notes to Condensed Consolidated Financial Statements**

----

**Note      7 - Stockholders’ Equity:**

**Note      8 - Warrants:**

**Note      9 - Related Party Transactions:**

**Note      10 - Pro-Forma Financial Information:**

|                                              |   | Six                Months Ended January 31, 2007 |       | Six                Months Ended January 31, 2006 |   |
|---------------------------------------------------|--------|--------------------------------------------------|------------|--------------------------------------------------|--------|
| Net                revenues                       |   | $                                                | 55,693     |                                             | $      | 332,488 |   |
|                                              |   |                                             |       |                                             |   |   |   |
| Operating                loss                     |   |                                             | (3,215,633 | )                                                |   | (576,850 | ) |
|                                              |   |                                             |       |                                             |   |   |   |
| Loss                per share - basic and diluted |   |                                             | (0.26      | )                                                |   | (0.05 | ) |
|                                              |   |                                             |       |                                             |   |   |   |

**See          Notes to Condensed Consolidated Financial Statements**

----

**Note      11 - Other Matters:**

**Commitments      and legal proceedings:**

**Unsecured      creditors of the company:**

**See          Notes to Condensed Consolidated Financial Statements**

----

**Item      2. Management's Discussion and Analysis of Financial Condition and Results      of      Operations. **

**       **

We      are a      development stage company and as such, you should read the following discussion      of the Company's business and results of operations in conjunction with the      consolidated unaudited financial statements attached herein. 

**Forward      Looking Statements **

**Executive      Overview and Financial Discussion **

----

----

**Sources      of Revenue **

**CRITICAL      ACCOUNTING POLICIES **

----

**Results      of Operations **

**REVENUES**

**GENERAL      AND ADMINISTRATIVE EXPENSES**

**LIQUIDITY      AND CAPITAL RESOURCES **

----

**OTHER      SIGNIFICANT MATTERS**

**Item      3. Controls and Procedures. **

**EVALUATION      OF OUR DISCLOSURE CONTROLS AND PROCEDURES **

**DISCLOSURE      CONTROLS AND INTERNAL CONTROLS **

----

**PART      II - OTHER INFORMATION **

**Item      1. Legal Proceedings. **

**Item      1A. Risk Factors.**

**We      have been unable to gain complete control of the SunTrips, and are continued      inability may have a materially adverse impact on our      operations.**

As      of the      date of the Quarterly Report, we have not gained complete control over the      intangible assets associated with our purchase of FS Suntours’ intellectual      property. The customer database has not been delivered; the phone numbers and      the trademarks are still in control of FS Suntours. Therefore, we recorded      an      asset impairment charge of $4,896,666 in relation to these assets for the year      ended July 31, 2006. Our lack of complete control over the Suntrips assets      has      had a material impact on our business plan relating to the use of these assets.      We have been able to operate and derive marginal revenue from the web portal.      We      are attempting to secure complete control of the intangible assets. On December      8, 2006, the United States Bankruptcy Court of the Western District of Texas      entered an order requiring the return of the SunTrips assets in question, which      we expected to occur no later than December 31, 2006 but due to the complexity      of the bankruptcy case this has not yet occurred. While it is difficult to      estimate when the assets will be returned, we hope to have them no later than      June 30, 2007. In the event the assets are not returned, our operations will      continue to be materially adversely affected and increases the likelihood we      will not continue as a going concern.

----

**Due      to the fact we do not have complete control of the SunTrips assets, we have      developed a product called IntelliFares. If IntelliFares is not widely accepted      in the marketplace, it will have a material adverse affect on our      operations.**

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**Item      3. Defaults Upon Senior Securities. **

**Item      4. Submission of Matters to a Vote of Security Holders. **

**Item      5. Other Information. **

**Item      6. Exhibits and Reports on Form 8-K.**

| EX-31 | CERTIFICATION                OF CEO PER SECTION 302 |
|-------|-----------------------------------------------------|
| EX-32 | CERTIFICATION                OF CFO PER SECTION 302 |

----

----

**SIGNATURES**

|                                |                  |                                                                          |
|-------------------------------------|-----------------------|-------------------------------------------------------------------------------|
|                                |                  |
| Date:                March 26, 2007 | By:    | /s/                *Fabrizzio                Busso Campana*                   |
|                                |                  | Fabrizzio                Busso Campana Chief                Executive Officer |

----

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