**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

|   | **QUARTERLY                REPORT** |
|--------|-------------------------------------|

|   | **UNDER                SECTION 13 OR 15(d)** |
|--------|----------------------------------------------|

|   | **OF                THE SECURITIES EXCHANGE ACT OF                1934** |
|--------|--------------------------------------------------------------------------|

**FOR      QUARTER ENDED MARCH 31,  2007**

**       **

**SATELLITE        NEWSPAPERS CORP.**

| **Nevada****--------------------------------**                                               | **000-26607****--------------------------------** | **88-0390828****----------------------------------------------** |
|----------------------------------------------------------------------------------------------|---------------------------------------------------|------------------------------------------------------------------|
| (State                or other jurisdictionof                incorporation or organization)) | (Commission                File Number)           | (I.R.S.                Employer Identification Number)      |

**Bank      of America Building**

**980      Post Road East**

**Westport,      Connecticut      06880**

**203-401-8089**

**---------------------------------------------------------------------------**

**Check      whether the issuer (1) filed all reports required to be filed by Section 13      or      15(d) of the Securities Exchange Act during the past 12 months (or for such      shorter period that the registrant was required to file such reports), and      (2)      has been subject to such filing requirements for the past 90      days.     Yes [X]   No      [  ]**

|   | **Number                of shares of the registrant’s common stock outstanding as of May 21, 2007                was: 423,477,518** |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | **Traditional                Small Business Disclosure Format:  Yes                [  ]   No                [X]** |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SATELLITE      NEWSPAPAERS CORP. **

**FORM      10-QSB**

**FOR      QUARTER ENDED MARCH 31, 2007**

**TABLE      OF CONTENTS**

| **PART                I. FINANCIAL INFORMATION**                                                                                                                         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM                1. FINANCIAL STATEMENTS                (UNAUDITED)                                                                                                   | 03     |
| Consolidated                Balance Sheet as of March 31, 2007 (Unaudited) and                December 31, 2006                                                          | 05     |
| Consolidated                Statements of Operations – For the Three Months                Ended March 31, 2007 (Unaudited) and March 31,                2006 | 06     |
| Consolidated                Statements of Cash Flows – For the Three Months                Ended March 31, 2007 (Unaudited)                                        | 07     |
| Notes                to Unaudited Condensed Consolidated Financial                Statements                                                                             | 08     |
| ITEM                2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF                OPERATION                                                                    | 09     |
|                                                                                                                                                                     |   |
| **PART                II. OTHER INFORMATION**                                                                                                                            |   |
| ITEM                1. - LEGAL PROCEEDINGS                                                                                                                               | 12     |
| ITEM                2. - CHANGES IN SECURITIES AND USE OF                PROCEEDS                                                                                        | 12     |
| ITEM                3. - DEFAULTS UPON SENIOR                SECURITIES                                                                                                  | 13     |
| ITEM                4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY                HOLDERS                                                                              | 13     |
| ITEM                5. - OTHER INFORMATION                                                                                                                               | 13     |
| ITEM                6. - EXHIBITS AND REPORTS ON FORM                8-K                                                                                                 | 13     |
|                                                                                                                                                                     |   |
| **SIGNATURES**                                                                                                                                                           | 14     |

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**PART      I. FINANCIAL INFORMATION**

**ITEM      1.                      FINANCIAL STATEMENTS**

**SATELLITE      NEWSPAPERS CORP. AND SUBSIDIARY**

**FINANCIAL      STATEMENTS**

**MARCH      31, 2007 AND 2006**

----

**SATELLITE      NEWSPAPERS CORP. AND SUBSIDIARY**

**INDEX      TO FINANCIAL STATEMENTS**

**MARCH 31,      2007 AND 2006**

| **FINANCIAL                STATEMENTS (UNAUDITED)**                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                            |
| Consolidated                Balance Sheet as of March 31, 2007 (Unaudited) and December 31,                2005                                 |
|                                                                                                                                            |
| Consolidated                Statements of Operations (Unaudited) –                For the Three Months Ended March 31, 2007 and 2006 |
|                                                                                                                                            |
| Consolidated                Statements of Cash Flows (Unaudited) –                For the Three Months Ended March 31, 2007 and 2006 |
|                                                                                                                                            |
| Notes                to Unaudited Condensed Financial                Statements                                                                 |

----

| **SATELLITE                    NEWSPAPERS CORP. AND SUBSIDIARIES**                                                                                       |   |                         |        |   |                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|--------|---------------------------------|--------|
|                                                                                                                                                     |   |                         |        |   |                            |   |
| **CONSOLIDATED                    BALANCE SHEETS**                                                                                                       |   |                         |        |   |                            |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |
|                                                                                                                                                     |   | March                    31, |        |   | December                    31, |   |
|                                                                                                                                                     |   | 2007                         |        |   | 2006                            |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |
| ASSETS                                                                                                                                                   |   |                         |        |   |                            |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |
| CURRENT                    ASSETS                                                                                                                        |   |                         |        |   |                            |   |
| Cash                                                                                                                                                     |   | $                            | 1,075       |   |                            | $      | 1,334 |   |
|       Total                    Current Assets                                                                              |   |                         | 1,075       |   |                            |   | 1,334 |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
|                     Total                    Assets  |   | $                            | 1,075       |   |                            | $      | 1,334 |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
| LIABILITIES                    AND STOCKHOLDERS' DEFICIT                                                                                                 |   |                         |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
| CURRENT                    LIABILITIES                                                                                                                   |   |                         |        |   |                            |   |   |   |
| Accounts                    payable                                                                                                                      |   | $                            | 160,786     |   |                            | $      | 1,326,620 |   |
| Accrued                    salaries and related expenses                                                                                                 |   |                         | 113,543     |   |                            |   | 213,180 |   |
| Accrued                    expenses                                                                                                                      |   |                         | 5,082       |   |                            |   | 1,591 |   |
| Notes                    payable to related parties                                                                                                      |   |                         | 327,000     |   |                            |   | 461,486 |   |
| Loans                    payable                                                                                                                         |   |                         | 5,045       |   |                            |   | 1,899,949 |   |
|       Total                    Current Liabilities                                                                         |   |                         | 611,456     |   |                            |   | 3,902,826 |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
| STOCKHOLDERS'                    DEFICIT                                                                                                                 |   |                         |        |   |                            |   |   |   |
| Preferred                    stock, par value $0.001 authorized                                                                                          |   |                         |        |   |                            |   |   |   |
|   500,000,000                    shares, 2,179,533 and 1,657,533 Class                                                                         |   |                         |        |   |                            |   |   |   |
|     A                    convertible preferred shares issued and outstanding                                                         |   |                         |        |   |                            |   |   |   |
|       at                    March 31, 2007 and December 31, 2006, respectively                                             |   |                         | 2,180       |   |                            |   | 1,658 |   |
| Common                    stock authorized 500,000,000 shares,                                                                                           |   |                         |        |   |                            |   |   |   |
|   par                    value $0.001, issued and outstanding 423,477,518 shares                                                               |   |                         |        |   |                            |   |   |   |
|     at                    March 31, 2007 and December 31, 2006                                                                       |   |                         | 423,478     |   |                            |   | 423,478 |   |
| Additional                    paid-in-capital                                                                                                            |   |                         | 13,548,781  |   |                            |   | 12,949,303 |   |
| Accumulated                    deficit                                                                                                                   |   |                         | (14,584,820 | )      |                            |   | (17,327,202 | ) |
| Accumulated                    other comprehensive income                                                                                                |   |                         |        |   |                            |   | 51,271 |   |
|       Total                    Stockholders' Deficit                                                                       |   |                         | (610,381    | )      |                            |   | (3,901,492 | ) |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
|                Total                    Liabilities and Stockholders' Deficit |   | $                            | 1,075       |   |                            | $      | 1,334 |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |
| See                    accompanying notes to financial statements.                                                                                       |   |                         |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                         |        |   |                            |   |   |   |

----

| **SATELLITE                    NEWSPAPAERS CORP. AND SUBSIDIARIES**                                                                  |   |                                           |        |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|-------------|--------|--------|--------|
|                                                                                                                                 |   |                                           |        |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF OPERATIONS                    (UNAUDITED)**                                          |   |                                           |        |   |   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |
|                                                                                                                                 |   | For                    The Three Month Ended   |        |
|                                                                                                                                 |   | March                    31,    |        |
|                                                                                                                                 |   | 2007                                           |        |   | 2006   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |
| NET                    SALES                                                                                                         |   |                                           |        |   | $      | 68,929 |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |
| COST                    AND EXPENSES                                                                                                 |   |                                           |        |   |   |   |   |
| Cost                    of services                                                                                                  |   |                                           |        |   |   | 86,278 |   |
| Selling,                    general and administrative                                                                               |   |                                           | 8,798       |   |   |   | 332,422 |   |
| Depreciation                      and amortization                                                                                   |   |                                           |        |   |   |   | 107,922 |   |
|           Total                    Costs and Expenses                              |   |                                           | 8,798       |   |   |   | 526,622 |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| NET                    OPERATING LOSS                                                                                                |   |                                           | (8,798      | )      |   |   | (457,693 | ) |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| OTHER                    INCOME (EXPENSE)                                                                                            |   |                                           |        |   |   |   |   |   |
| Currency                    Gain                                                                                                     |   |                                           |        |   |   |   | 27,383 |   |
| Interest                    expense                                                                                                  |   |                                           | (3,491      | )      |   |   | (31,281 | ) |
|                                                                                                                                 |   |                                           | (3,491      | )      |   |   | (3,898 | ) |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| NET                    LOSS FROM CONTINUING OPERATIONS                                                                               |   | $                                              | (12,289     | )      |   | $      | (461,591 | ) |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| DISCONTINUED                    OPERATIONS                                                                                           |   |                                           |        |   |   |   |   |   |
| Loss                      from discontinued operations (less applicable income taxes of                      0)                 |   |                                           | (788,736    | )      |   |   |   |   |
| Gain                      from the disposal of discontinued operations (less applicable                      income taxes of 0) |   |                                           | 3,543,407   |   |   |   |   |   |
| Gain                    from discontinued operations                                                                                 |   |                                           | 2,754,671   |   |   |   |   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| NET                    GAIN (LOSS)                                                                                                   |   | $                                              | 2,742,382   |   |   | $      | (461,591 | ) |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| NET                    GAIN (LOSS) PER COMMON SHARE                    (BASIC AND DILUTED)                                           |   | $                                              | 0.01        |   |   | $      | (0.01 | ) |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| WEIGHTED                    AVERAGE COMMON                    SHARES OUTSTANDING                                                     |   |                                           | 423,477,518 |   |   |   | 422,844,185 |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |
| See                    accompanying notes to financial statements.                                                                   |   |                                           |        |   |   |   |   |   |
|                                                                                                                                 |   |                                           |        |   |   |   |   |   |

----

| **SATELLITE                    NEWSPAPERS CORP. AND SUBSIDIARIES**                                                                               |   |                                           |       |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|--------|--------|--------|
|                                                                                                                                             |   |                                           |       |   |   |   |
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS                    (UNAUDITED)**                                                      |   |                                           |       |   |   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |
|                                                                                                                                             |   | For                    The Three Month Ended   |       |
|                                                                                                                                             |   | March                    31,    |       |
|                                                                                                                                             |   | 2007                                           |       |   | 2006   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |
| CASH                    FLOWS FROM OPERATING ACTIVITIES                                                                                          |   |                                           |       |   |   |   |
| CONTINUING                    OPERATIONS                                                                                                         |   |                                           |       |   |   |   |
| Net                    loss                                                                                                                      |   | $                                              | (12,289    | )      |   | $      | (461,591 | ) |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
| Adjustments                    to reconcile net gain/(loss) to cash flows used in operating                    activities:                       |   |                                           |       |   |   |   |   |   |
|       Depreciation                                                                                                 |   |                                           |       |   |   |   | 107,922 |   |
| Changes                    in operating assets and liabilities:                                                                                  |   |                                           |       |   |   |   |   |   |
|       Accounts                    receivable                                                                       |   |                                           |       |   |   |   | (43,773 | ) |
|       Accounts                    payable                                                                          |   |                                           |       |   |   |   | 115,854 |   |
|       Accrued                    expenses                                                                          |   |                                           | 3,491      |   |   |   | (43,663 | ) |
|       Accrued                    salaries and related expenses                                                     |   |                                           |       |   |   |   | 161,325 |   |
|          NET                    CASH USED IN CONTINUING OPERATING ACTIVITIES                        |   |                                           | (8,798     | )      |   |   | (163,926 | ) |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVITIES                                                                                          |   |                                           |       |   |   |   |   |   |
|    Advances                    (to)/from noted payable to related parties                                                         |   |                                           |       |   |   |   | 94,024 |   |
|    Change                    in loans payable                                                                                     |   |                                           |       |   |   |   | 41,164 |   |
|    Proceeds                    from issuance of common stock                                                                      |   |                                           |       |   |   |   |   |   |
|                            NET CASH PROVIDED IN CONTINUING  FINANCING                    ACTIVITIES |   |                                           |       |   |   |   | 135,188 |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
| Discontinuing                    operations                                                                                                      |   |                                           |       |   |   |   |   |   |
| Net                    income                                                                                                                    |   |                                           | 2,754,671  |   |   |   |   |   |
| Decrease                    in net liabilities of entities discontinued                                                                     |   |                                           | (3,294,861 | )      |   |   |   |   |
|          NET                    CASH USED IN DISCONTINUED OPERATION                            |   |                                           | (540,190   | )      |   |   |   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES                                                                                          |   |                                           |       |   |   |   |   |   |
|    Proceeds                    from issuance of common stock                                                                      |   |                                           | 600,000    |   |   |   |   |   |
|       NET                    CASH PROVIDED IN FINANCING ACTIVITIES                                            |   |                                           | 600,000    |   |   |   |   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
| EFFECT                    OF EXCHANGE RATE                                                                                                       |   |                                           |       |   |   |   |   |   |
|    CHANGES                    ON CASH                                                                                             |   |                                           | (51,271    | )      |   |   | 6,353 |   |
| (DECREASE)                    INCREASE IN CASH                                                                                                   |   |                                           | (259       | )      |   |   | (22,385 | ) |
| CASH,                    BEGINNING OF PERIOD                                                                                                     |   |                                           | 1,334      |   |   |   | 37,509 |   |
| CASH,                    END OF PERIOD                                                                                                           |   | $                                              | 1,075      |   |   | $      | 15,124 |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
| See                    accompanying notes to financial statements.                                                                               |   |                                           |       |   |   |   |   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |
|                                                                                                                                             |   |                                           |       |   |   |   |   |   |

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**SATELLITE NEWSPAPERS      CORP. AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL      STATEMENTS**

**MARCH      31, 2007**

**NOTE        1 BASIS OF PRESENTATION**

**NOTE        2  GOING CONCERN**

**NOTE        3 PREFERRED STOCK**

**NOTE        4  MEDIA FINANCE EN SUISSE HOLDING (BANKRUPTCY)**

**NOTE 5  LEGAL          PROCEEDINGS**

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**ITEM      2.                      MANAGEMENT’S      DISCUSSION AND ANALYSIS OR PLAN OF OERATION.**

**A.       PRIOR HISTORY OF SATELLITE**

----

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**B.      BUSINESS PLAN**

**Buildings**

| **1.  ** | **PLS.                  MORETUISLER ANTWERP**, 58 bed licenses, annual rental income €                  317,550, valued cat 6%:  €5,292,500, outstanding mortgage €                  2,700,000, net value € 2,592,500. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.  ** | **BERGHEM                  ANTWERP**, 55 bed licenses, annual rental income € 301,125, value                  at 6%: € 5,018,750, outstanding mortgage € 3,500,000, net value €                  1,518,000. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.  ** | **VOTTEM                  LIEGE**, project 0 bed licenses – 265 bed licenses after                  completion, value at € 6,000,000, outstanding mortgage € 2,300,000, net                  value € 3,700,000. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.  ** | **RED                  CROSS BUILDING**, annual rental income € 450,313, value at €                  8,204,000, outstanding mortgage € 4,300,000, net value €                  3,904,000. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.  ** | **LEOPOLDSBURG**,                  120 bed licenses, annual rental income € 657,000, value at 6%: €                  2,500,000, outstanding mortgage € 1,000,000, net value €                  1,500,000. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Land**

| **1.  ** | **LINKEROEVER                  LEND**, 40,000 m2, value € 8,000,000, no outstanding                  mortgage. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

**Net        Value:**

**Remaining        ICPB Buildings:**

**Operations:**

**Purchase        Price**

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**PART      II. OTHER INFORMATION**

**ITEM      1.      LEGAL      PROCEEDINGS**

**ITEM      2.     CHANGES IN SECURITIES AND USE OF      PROCEEDS**

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**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**

----

**SIGNATURES**

|                              |   |                                           |
|-----------------------------------|--------|------------------------------------------------|
|                              |   | **SATELLITE                NEWSPAPERS CORP..** |
|                              |   | (Registrant)                                   |
|                              |   |                                           |
|                              |   |                                           |
| Date:                May 21, 2007 |   | By:                /s/ ROY PICENI              |
|                              |   | Roy                Piceni                      |
|                              |   | Chief                Executive Officer and     |
|                              |   | Chairman                of the Board           |
|                              |   | (Duly                Authorized Officer)       |
|                              |   |                                           |
|                              |   |                                           |
| Date:                May 21, 2007 |   | By:                /s/ RANDY HIBMA             |
|                              |   | Randy                Hibma                     |
|                              |   | President                and Chief             |
|                              |   | Financial                Officer and Director  |
|                              |   | (Principal                Financial            |
|                              |   | and                Accounting Officer)         |
|                              |   |                                           |

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