----

----

**Signet      International Holdings, Inc.**

| Delaware                                | 16-1732674                              |
|-----------------------------------------|-----------------------------------------|
| (State                of incorporation) | (IRS                Employer ID Number) |

----

| Part                I - Financial Information                                     | *Page* |
|-----------------------------------------------------------------------------------|--------|
|                                                                              |   |
| Item                1 Financial Statements                                        | 3      |
|                                                                              |   |
| Item                2 Management's Discussion and Analysis or Plan of Operation   | 14     |
|                                                                              |   |
| Item                3 Controls and Procedures                                     | 16     |
|                                                                              |   |
|                                                                              |   |
| Part                II - Other Information                                        |   |
|                                                                              |   |
| Item                1 Legal Proceedings                                           | 17     |
|                                                                              |   |
| Item                2 Recent Sales of Unregistered Securities and Use of Proceeds |   |
|                                                                              |   |
| Item                3 Defaults Upon Senior Securities                             | 17     |
|                                                                              |   |
| Item                4 Submission of Matters to a Vote of Security Holders         |   |
|                                                                              |   |
| Item                5 Other Information                                           | 17     |
|                                                                              |   |
| Item                6 Exhibits                                                    | 17     |
|                                                                              |   |
|                                                                              |   |
| Signatures                                                                        | 17     |

----

**Signet          International Holdings, Inc. and Subsidiary**

**Balance          Sheets**

**(Unaudited)**

|                                                                                                                                 |   | September 30, |     | September 30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------------------|--------|
|                                                                                                                                 |   | 2006               |     | 2005               |   |
| **ASSETS**                                                                                                                           |   |               |     |               |   |
| **Current                    Assets**                                                                                                |   |               |     |               |   |
|                        Cash in bank                                                                              |   | $                  | 170,947  |               | $      | 156,980 |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
| **Total                    Assets**                                                                                             |   | $                  | 170,947  |               | $      | 156,980 |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
| **LIABILITIES                    AND SHAREHOLDERS’ EQUITY (DEFICIT)**                                                          |   |               |     |               |   |   |   |
| **Liabilities**                                                                                                                      |   |               |     |               |   |   |   |
| **                       Current Liabilities**                                                                        |   |               |     |               |   |   |   |
|           Note                    payable                                          |   | $                  | -        |               | $      | 90,000 |   |
|           Accounts                    payable - trade                              |   |               | 12,877   |               |   | - |   |
|           Other                    accrued liabilities                        |   |               | 102,337  |               |   | 39,171 |   |
|           Accrued                    officer compensation                          |   |               | 199,920  |               |   | 133,170 |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
| **Total                    Current Liabilities**                                                                                |   |               | 315,134  |               |   | 262,341 |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
| **Commitments                    and Contingencies**                                                                                 |   |               |     |               |   |   |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
| **Shareholders’                    Equity (Deficit)**                                                                          |   |               |     |               |   |   |   |
|                        Preferred stock - $0.001 par value                                                             |   |               |     |               |   |   |   |
|           50,000,000                    shares authorized                          |   |               |     |               |   |   |   |
|           5,000,000                    shares issued and outstanding, respectively |   |               | 5,000    |               |   | 5,000 |   |
|                                                                               |   |               |     |               |   |   |   |
|                        Common stock - $0.001 par value.                                                               |   |               |     |               |   |   |   |
|           50,000,000                    shares authorized.                         |   |               |     |               |   |   |   |
|           4,102,000                    and                    3,621,000            |   |               |     |               |   |   |   |
|           shares                    issued and outstanding, respectively           |   |               | 4,102    |               |   | 3,621 |   |
|                        Additional paid-in capital                                                                |   |               | 737,592  |               |   | 257,554 |   |
|                        Deficit accumulated during the development stage                                          |   |               | (890,881 | )                  |   | (371,536 | ) |
|                                                                                                                                 |   |               |     |               |   |   |   |
|                                                                                                                                 |   |               |     |               |   |   |   |
| **Total                    Shareholders’ Equity (Deficit)**                                                               |   |               | (144,187 | )                  |   | (105,361 | ) |
|                                                                                                                                 |   |               |     |               |   |   |   |
| **Total                    Liabilities and Shareholders’ Equity**                                                         |   | $                  | 170,947  |               | $      | 156,980 |   |

----

**Signet          International Holdings, Inc. and Subsidiary**

**Consolidated          Statements of Operations and Comprehensive Loss**

**(Unaudited)**

|                                                                                                   |   | Nine monthsended                    September 30,                    2006  |      | Nine monthsended                    September 30,                    2005 |   | Three                    monthsended                    September 30,                    2006 |    | Three                    monthsendedSeptmeber 30,                    2005 |      | Period                    fromOctober                    17, 2003                    (date                    of inception)through September                    30, 2006 |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |
| **Revenues**                                                                                           |   | $                                                                                         | -         |                                                                                | $      | -                                                                                                  |    | $                                                                              | -         |                                                                                                                                                                               | $      | - |   | $ | - |   |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **Expenses**                                                                                           |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                        Organizational and                                               |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                              formation expenses           |   |                                                                                      | -         |                                                                                |   | 48,991                                                                                             |    |                                                                           | -         |                                                                                                                                                                               |   | 48,991 |   |   | 89,801 |   |
|                        Officer compensation                                             |   |                                                                                      | 52,500    |                                                                                |   | 52,500                                                                                             |    |                                                                           | 17,500    |                                                                                                                                                                               |   | 17,500 |   |   | 204,170 |   |
|                        Other salaries                                                   |   |                                                                                      | 26,375    |                                                                                |   | 16,500                                                                                             |    |                                                                           | 9,502     |                                                                                                                                                                               |   | 6,000 |   |   | 61,625 |   |
|                        Other general and                                                |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                              administrative expenses      |   |                                                                                      | 404,887   |                                                                                |   | 80,333                                                                                             |    |                                                                           | 36,751    |                                                                                                                                                                               |   | 70,457 |   |   | 526,285 |   |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **    Total                    Expenses**                                          |   |                                                                                      | 483,762   |                                                                                |   | 198,324                                                                                            |    |                                                                           | 63,753    |                                                                                                                                                                               |   | 142,948 |   |   | 881,881 |   |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **Loss                    from Operations**                                                            |   |                                                                                      | (483,762  | )                                                                                   |   | (198,324                                                                                           | )       |                                                                           | (63,753   | )                                                                                                                                                                                  |   | (142,948 | ) |   | (881,881 | ) |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **Other                    Expense**                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                       Interest expense                                                       |   |                                                                                      | (4,436    | )                                                                                   |   | (2,296                                                                                             | )  |                                                                           | -         |                                                                                                                                                                               |   | (2,296 | ) |   | (9,000 | ) |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **Loss                    before Provision for**                                                       |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **  Income                    Taxes**                                                        |   |                                                                                      | (488,198  | )                                                                                   |   | (200,620                                                                                           | )       |                                                                           | (63,753   | )                                                                                                                                                                                  |   | (145,244 | ) |   | (890,881 | ) |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **Provision                    for Income Taxes**                                                      |   |                                                                                      | -         |                                                                                |   | -                                                                                                  |    |                                                                           | -         |                                                                                                                                                                               |   | - |   |   | - |   |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **Net                    Loss**                                                                        |   |                                                                                      | (488,198  | )                                                                                   |   | (200,620                                                                                           | )       |                                                                           | (63,753   | )                                                                                                                                                                                  |   | (145,244 | ) |   | (890,881 | ) |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| Ot**her                    Comprehensive Income**                                                      |   |                                                                                      | -         |                                                                                |   | -                                                                                                  |    |                                                                           | -         |                                                                                                                                                                               |   | - |   |   | - |   |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| **Comprehensive                    Loss**                                                              |   | $                                                                                         | (488,198  | )                                                                                   | $      | (200,620                                                                                           | )       | $                                                                              | (63,753   | )                                                                                                                                                                                  | $      | (145,244 | ) | $ | (890,881 | ) |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| Loss                    per weighted-average share                                                     |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                              of common stock outstanding, |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                              computed on Net Loss -       |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                              basic and fully diluted      |   | $                                                                                         | (0.12     | )                                                                                   | $      | (0.06                                                                                              | )       | $                                                                              | (0.02     | )                                                                                                                                                                                  | $      | (0.04 | ) | $ | (0.27 | ) |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
| Weighted-average                    number of shares                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |
|                              of common stock outstanding  |   |                                                                                      | 3,956,084 |                                                                                |   | 3,465,150                                                                                          |    |                                                                           | 4,102,000 |                                                                                                                                                                               |   | 3,467,413 |   |   | 3,312,502 |   |
|                                                                                                   |   |                                                                                      |      |                                                                                |   |                                                                                               |    |                                                                           |      |                                                                                                                                                                               |   |   |   |   |   |   |

----

**Signet          International Holdings, Inc. and Subsidiary**

**Consolidated          Statements of Cash Flows**

**(Unaudited)**

|                                                                                                          |   | Nine Months                    endedSeptember 30, |     | Nine Months                    endedSeptmeber 30, |   | Period                    fromOctober                    17, 2003(date                    of inception)throughSeptember30, |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|----------|-------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                          |   | 2006                                                        |     | 2005                                                        |   | 2006                                                                                                                       |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |
| **Cash                    Flows from Operating Activities**                                                   |   |                                                        |     |                                                        |   |                                                                                                                       |   |
|                        Net loss                                                           |   | $                                                           | (488,198 | )                                                           | $      | (200,620                                                                                                                   | )      | $ | (890,881 | ) |
|                        Adjustments to reconcile net income to net cash                         |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
|                          provided by operating activities                            |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
|         Depreciation                                                  |   |                                                        | -        |                                                        |   | -                                                                                                                          |   |   | - |   |
|         Organizational                    expenses paid with issuance |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
|           of                    common and preferred stock  |   |                                                        | -        |                                                        |   | 10,000                                                                                                                     |   |   | 50,810 |   |
|   Expenses                  paid with common stock                                                  |   |                                                        | 250,000  |                                                        |   | 56,430                                                                                                                     |   |   | 306,430 |   |
|         Increase                    (Decrease) in                     |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
|                              Accounts payable - trade            |   |                                                        | 12,877   |                                                        |   | -                                                                                                                          |   |   | 12,877 |   |
|                              Accrued liabilities                 |   |                                                        | 68,398   |                                                        |   | 14,671                                                                                                                     |   |   | 102,337 |   |
|                              Accrued officers compensation  |   |                                                        | 51,500   |                                                        |   | 51,500                                                                                                                     |   |   | 199,920 |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| **Net                    cash used in operating activities**                                             |   |                                                        | (105,423 | )                                                           |   | (68,019                                                                                                                    | )      |   | (218,507 | ) |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| **Cash                    Flows from Investing Activities**                                              |   |                                                        | -        |                                                        |   | -                                                                                                                          |   |   | - |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| **Cash                    Flows from Financing Activities**                                                   |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
|                        Cash proceeds from note payable                                         |   |                                                        | -        |                                                        |   | 90,000                                                                                                                     |   |   | 90,000 |   |
|                        Cash paid to retire note payable                                        |   |                                                        | (90,000  | )                                                           |   | -                                                                                                                          |   |   | (90,000 | ) |
|                        Cash proceeds from sale of common stock                                 |   |                                                        | 15,000   |                                                        |   | 135,570                                                                                                                    |   |   | 416,089 |   |
|                        Purchase of treasury stock                                              |   |                                                        | (50,000  | )                                                           |   | -                                                                                                                          |   |   | (50,000 | ) |
|                        Cash paid to acquire capital                                       |   |                                                        | -        |                                                        |   | (10,447)                                                                                                                   |   |   | (10,447 | ) |
|                        Capital contributed to support operations                          |   |                                                        | -        |                                                        |   | 9,876                                                                                                                      |   |   | 33,812 |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| **Net                    cash provided by financing activities**                                              |   |                                                        | (125,000 | )                                                           |   | 224,999                                                                                                                    |   |   | 389,454 |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| **Increase                    (Decrease) in Cash and Cash Equivalents**                                  |   |                                                        | (230,423 | )                                                           |   | 156,980                                                                                                                    |   |   | 170,947 |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| Cash                    and cash equivalents at beginning of period                                           |   |                                                        | 401,370  |                                                        |   | -                                                                                                                          |   |   | - |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| Cash                    and cash equivalents at end of period                                            |   | $                                                           | 170,947  |                                                        | $      | 156,980                                                                                                                    |   | $ | 170,947 |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| **Supplemental                    Disclosures of Interest and**                                               |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
| **Income                    Taxes Paid**                                                                      |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |
|                        Interest paid during the period                                    |   | $                                                           | -        |                                                        | $      | -                                                                                                                          |   | $ | - |   |
|                        Income taxes paid (refunded)                                            |   | $                                                           | -        |                                                        | $      | -                                                                                                                          |   | $ | - |   |
|                                                                                                          |   |                                                        |     |                                                        |   |                                                                                                                       |   |   |   |   |

----

**Signet          International Holdings, Inc. and Subsidiary**

**Notes          to Consolidated Financial Statements**

**Note        A - Organization and Description of Business**

**Note        B - Preparation of Financial Statements**

----

**Signet          International Holdings, Inc. and Subsidiary**

**Notes          to Consolidated Financial Statements**

**Note        B - Preparation of Financial Statements - Continued**

**Note        C - Going Concern Uncertainty**

**Note        D - Summary of Significant Accounting Policies**

| 2. |   | Organization                    costs |
|----|--------|---------------------------------------|

| 3. |   | Research                    and development expenses |
|----|--------|------------------------------------------------------|

----

**Signet          International Holdings, Inc. and Subsidiary**

**Notes          to Consolidated Financial Statements**

**Note        D - Summary of Significant Accounting Policies - Continued**

| 4. |   | Advertising                    expenses |
|----|--------|-----------------------------------------|

| 5. |   | Income                    Taxes |
|----|--------|---------------------------------|

| 6. |   | Earnings                    (loss) per share |
|----|--------|----------------------------------------------|

**Note        E - Fair Value of Financial Instruments**

----

**Signet            International Holdings, Inc. and Subsidiary**

**Notes            to Consolidated Financial Statements**

**Note        F - Note Payable**

|                                                                                                                 |   | September 30, |   | September 30, |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------------------|--------|
|                                                                                                                 |   | 2006               |   | 2005               |   |
| $90,000                    note payable to an individual. Interest at 10.0%.                                         |   |               |   |               |   |
|     Principal                    and                    accrued interest due at maturity in June |   |               |   |               |   |
|     2006.                    Collateralized by controlling interest in the                       |   |               |   |               |   |
|     common                    stock of Signet International Holdings, Inc.                       |   |               |   |               |   |
|     Note                    paid in Full on June 30, 2006.                                  |   | $                  | --     |               | $      | 90,000 |   |

|                                               |   | Nine Months                  ended |   | Nine Months                  ended |   | Period                  fromOctober                  17, 2003(date                  of inception)through |   |
|----------------------------------------------------|--------|-----------------------------------------|--------|-----------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                               |   | September 30,                      |   | September 30,                      |   | September 30,                                                                                       |   |
|                                               |   | 2006                                    |   | 2005                                    |   | 2006                                                                                                     |   |
| Federal:                                           |   |                                    |   |                                    |   |                                                                                                     |   |
|                      Current        |   | $                                       | -      |                                    | $      | -                                                                                                        |   | $ | - |   |
|                      Deferred       |   |                                    | -      |                                    |   | -                                                                                                        |   |   | - |   |
|                                               |   |                                    | -      |                                    |   | -                                                                                                        |   |   | - |   |
| State:                                             |   |                                    |   |                                    |   |                                                                                                     |   |   |   |   |
|                      Current   |   |                                    | -      |                                    |   | -                                                                                                        |   |   | - |   |
|                      Deferred  |   |                                    | -      |                                    |   | -                                                                                                        |   |   | - |   |
|                                               |   |                                    |   |                                    |   | -                                                                                                        |   |   | - |   |
| Total                                              |   | $                                       | -      |                                    | $      | -                                                                                                        |   | $ | - |   |

----

**Signet              International Holdings, Inc. and Subsidiary**

**Notes              to Consolidated Financial Statements**

**Note        G - Income Taxes - Continued**

|                                                                                                                             |   | Nine Months                  ended |     | Nine Months                  ended |   | Period                  fromOctober                  17, 2003(date                  of inception)through |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|-----------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                             |   | September 30,                      |     | September 30,                      |   | September 30,                                                                                       |   |
|                                                                                                                             |   | 2006                                    |     | 2005                                    |   | 2006                                                                                                     |   |
|                                                                                                                             |   |                                    |     |                                    |   |                                                                                                     |   |
| Statutory                  rate applied to income before income taxes                                                            |   | $                                       | (166,000 | )                                       | $      | (68,000                                                                                                  | )      | $ | (303,000 | ) |
| Increase                  (decrease) in income taxes resulting from:                                                             |   |                                    |     |                                    |   |                                                                                                     |   |   |   |   |
|                       State income taxes                                                                |   |                                    | -        |                                    |   | -                                                                                                        |   |   | - |   |
|                       Non-deductible officers compensation                                              |   |                                    | 18,000   |                                    |   | 18,000                                                                                                   |   |   | 69,000 |   |
|                       Non-deductible charge for common stock                                                 |   |                                    |     |                                    |   |                                                                                                     |   |   |   |   |
|                            issued at less than "fair value"                         |   |                                    | 43,000   |                                    |   | 19,000                                                                                                   |   |   | 62,000 |   |
|                       Other, including reserve for deferred tax                                              |   |                                    |     |                                    |   |                                                                                                     |   |   |   |   |
|                            asset and application of net operating loss carryforward |   |                                    | 105,000  |                                    |   | 31,000                                                                                                   |   |   | 172,000 |   |
|                                                                                                                             |   |                                    |     |                                    |   |                                                                                                     |   |   |   |   |
| Income                  tax expense                                                                                         |   | $                                       | -        |                                    | $      | -                                                                                                        |   | $ | - |   |

|                                                                                      |   | September 30, |     | September 30, |   |
|-------------------------------------------------------------------------------------------|--------|--------------------|----------|--------------------|--------|
|                                                                                      |   | 2006               |     | 2005               |   |
| Deferred                  tax assets                                                      |   |               |     |               |   |
|                       Net operating loss carryforwards                |   | $                  | 119,000  |               | $      | 62,000 |   |
|                       Officer compensation deductible when paid  |   |               | 69,000   |               |   | 45,000 |   |
|                       Less valuation allowance                   |   |               | (188,000 | )                  |   | (107,000 | ) |
|                                                                                      |   |               |     |               |   |   |   |
|                       Net Deferred Tax Asset                     |   | $                  | -        |               | $      | - |   |

**Note        H - Preferred Stock**

----

**Signet            International Holdings, Inc. and Subsidiary**

**Notes            to Consolidated Financial Statements**

**Note        H - Preferred Stock - Continued**

**Note          I - Common Stock Transactions**

----

**Signet            International Holdings, Inc. and Subsidiary**

**Notes            to Consolidated Financial Statements**

**Note        J - Commitments**

----

**Signet            International Holdings, Inc. and Subsidiary**

**Notes            to Consolidated Financial Statements**

**Note        J - Commitments - Continued**

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**Part      I - Item 2**

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

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| 1. | We                    have already commenced the first step in the acquisition process                    of                    reviewing those markets of dominant influence (the ratings of                    TV                    households in each market.) and will continue to so during the                    first few                    months of 2007. We expect the expenses for our review of the                    markets to be                    limited to the time spent by Mr. Letiziano, our sole officer                    and director.                    We anticipate that any additional expenses will be under $1,000                    can be                    paid from our current cash in hand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| 2. | In                    January 2007, we will identify and contact the selected LPTV                    stations that                    are currently operating at a profit and in good standing with                    the FCC. We                    expect the expenses for same to be to be limited to the time                    spent by Mr.                    Letiziano, our sole officer and director. We anticipate that                    any                    additional expenses will be under $1,000 and will be paid from                    our current                    cash in hand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3. | From                    mid-January through Mid February we will continue to identify                    those LPTV                    stations for sale and those which are currently operating at                    a profit and                    in good standing with the FCC. We will then initiate contact                    with the LPTV                    station owner and legal counsel and negotiate to sign non-circumvention                    agreements and Letters of Intent. Upon execution of a letter                    of intent we                    will perform due diligence which will include the review of financial                    statements, customer base, survey of equipment and the review                    of                    compliance with FCC regulations researched through public records.                    We will                    only identify and commence negotiations at such time as our registration                    statement is declared effective by the SEC. Since our arrangements                    will be                    based upon a share exchange contract, we will not incur any cash                    expenses                    other than those incidental expenses already budgeted in our                    monthly                    expenses. We will not need to travel to undertake our due diligence                    and                    intend to have the due diligence completed and reviewed by Mr.                    Letiziano.                    Based upon same we do not expect the expenses for the due diligence                    and                    negotiations to be more than $1,000 and will be paid from our                    current cash                    in hand. |
| 4. | By                    mid-February we intend to have negotiated and finalized an agreement                    to                    purchase at least one LPTV station and file though FCC counsel                    applications for approval from the FCC to operate the target                    LPTV                    stations. The approval period takes from 60-90 days. We expect                    the                    expenses, which shall include legal fees and application fees                    to be less                    than $5,000 and will will be paid from our current cash on                    hand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 5. | Once                    the FCC has granted approval, we will then become owner of the                    LPTV                    station and will be responsible for the daily expenses associated                    with                    operating the business. The fees and expenses for operating these                    stations                    will be paid from the revenues which we anticipate we will generate                    from                    the LPTV station. At this time we are unsure of the expenses                    for operating                    the stations since we have not commenced our due diligence on                    any specific                    station. However, in the event that the stations do not generate                    the                    anticipates revenues then we will pay the fees and expenses from                    our                    current cash on hand or will rely on shareholder loans to cover                    such costs                    until the station generates sufficient revenues or until we can                    obtain                    additional debt or equity financing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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| 6. | After                    our first acquisition, we will continue to identify and negotiate                    with                    additional LPTV stations. The funds to operate the LPTV stations                    will be                    derived from revenues generated or from cash on hand. In the                    event that                    the stations do not generate the anticipates revenues then we                    will pay the                    fees and expenses from our current cash on hand or will rely                    on                    shareholder loans to cover such costs until the station generates                    sufficient revenues or until we can obtain additional debt or                    equity                    financing. The fees and expenses for the due diligence, negotiations                    and                    expenses for the additional stations will be the same as set                    above and                    will be paid from current cash on hand, revenues or stockholder                    loans. |
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| Accounting                Fees                     | $      | 2,000  |
|----------------------------------------------------|--------|--------|
| Legal                fees                          |   | 3,500  |
| General                and administrative expenses |   | 2,500  |
| Travel                & Surveys                |   | 1,500  |
| Other                Expenses                      |   | 1,000  |
|                                               |   |   |
|  **Total**                                    | $      | 10,500 |

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**Item      3 - Controls and Procedures**

**Part      II - Other Information**

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**SIGNATURES**

** **

**Signet      International Holdings, Inc.**

*/s/        Ernest W. Letiziano*