**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 JUNE 30,  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**

**203-222-9333**

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

**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 August 20,                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 JUNE 30, 2007**

**TABLE      OF CONTENTS**

| **PART                I. FINANCIAL INFORMATION**                                                                                                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM                1. FINANCIAL STATEMENTS                (UNAUDITED)                                                                                  | 03     |
| Consolidated                Balance Sheet as of June 30, 2007 (Unaudited) and                December 31, 2006                                          | 05     |
| Consolidated                Statements of Operations – For the Three Months                Ended June 30, 2007 (Unaudited) and June 30, 2006 | 06     |
| Consolidated                Statements of Cash Flows – For the Three Months                and Six Months Ended June 30, 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                                                                                                              | 11     |
| ITEM                2. - CHANGES IN SECURITIES AND USE OF                PROCEEDS                                                                       | 11     |
| ITEM                3. - DEFAULTS UPON SENIOR                SECURITIES                                                                                 | 12     |
| ITEM                4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY                HOLDERS                                                             | 12     |
| ITEM                5. - OTHER INFORMATION                                                                                                              | 12     |
| ITEM                6. - EXHIBITS AND REPORTS ON FORM                8-K                                                                                | 12     |
|                                                                                                                                                    |   |
| **SIGNATURES**                                                                                                                                          | 13     |

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**PART      I. FINANCIAL INFORMATION**

**ITEM      1.                      FINANCIAL STATEMENTS**

**SATELLITE      NEWSPAPERS CORP. AND SUBSIDIARY**

**FINANCIAL      STATEMENTS**

**JUNE      30, 2007 AND 2006**

----

**SATELLITE      NEWSPAPERS CORP. AND SUBSIDIARY**

**INDEX      TO FINANCIAL STATEMENTS**

**JUNE      30, 2007 AND 2006**

| **FINANCIAL                STATEMENTS (UNAUDITED)**                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                              |
| Consolidated                Balance Sheet as of June 30, 2007 (Unaudited) and December 31,                2006                                                                    |
|                                                                                                                                                                              |
| Consolidated                Statements of Operations (Unaudited) –                For the Three Months and Six Months Ended June 30, 2007 and                2006 |
|                                                                                                                                                                              |
| Consolidated                Statements of Cash Flows (Unaudited) –                For the Six Months Ended June 30, 2007 and 2006                                      |
|                                                                                                                                                                              |
| Notes                to Unaudited Condensed Financial                Statements                                                                                                   |

----

|                                                                                                                                                     |   |                        |        |   |                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-------------|--------|---------------------------------|--------|
|                                                                                                                                                     |   |                        |        |   |                            |   |
| **SATELLITE                    ENTERPRISE CORP. AND SUBSIDIARIES**                                                         |
|                                                                                                                                                     |   |                        |        |   |                            |   |
| **CONSOLIDATED                    BALANCE SHEETS**                                                                         |
|                                                                                                                                                     |   |                        |        |   |                            |   |
|                                                                                                                                                     |   | June                    30, |        |   | December                    31, |   |
|                                                                                                                                                     |   |  2007                  |        |   | 2006                       |   |
|                                                                                                                                                     |   | (Unaudited)                 |        |   |                            |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |
| ASSETS                                                                                                                                                   |   |                        |        |   |                            |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |
| CURRENT                    ASSETS                                                                                                                        |   |                        |        |   |                            |   |
| Cash                                                                                                                                                     |   | $                           | 1,042       |   |                            | $      | 1,334 |   |
|       Total                    Current Assets                                                                              |   |                        | 1,042       |   |                            |   | 1,334 |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |   |   |
|                     Total                    Assets  |   | $                           | 1,042       |   |                            | $      | 1,334 |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |   |   |
| LIABILITIES                    AND STOCKHOLDERS' DEFICIT                                                                                                 |   |                        |        |   |                            |   |   |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |   |   |
| CURRENT                    LIABILITIES                                                                                                                   |   |                        |        |   |                            |   |   |   |
| Accounts                    payable                                                                                                                      |   | $                           | 166,539     |   |                            | $      | 1,326,620 |   |
| Accrued                    salaries and related expenses                                                                                                 |   |                        | 125,400     |   |                            |   | 213,180 |   |
| Accrued                    expenses                                                                                                                      |   |                        | 11,604      |   |                            |   | 1,591 |   |
| Notes                    payable to related parties                                                                                                      |   |                        | 415,000     |   |                            |   | 461,486 |   |
| Loans                    payable                                                                                                                         |   |                        | 2,007       |   |                            |   | 1,899,949 |   |
|       Total                    Current Liabilities                                                                         |   |                        | 720,550     |   |                            |   | 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                    June 30, 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                    June 30, 2007 and December 31, 2006                                                                        |   |                        | 423,478     |   |                            |   | 423,478 |   |
| Additional                    paid-in-capital                                                                                                            |   |                        | 13,548,781  |   |                            |   | 12,949,303 |   |
| Accumulated                    deficit                                                                                                                   |   |                        | (14,693,947 | )      |                            |   | (17,327,202 | ) |
| Accumulated                    other comprehensive income                                                                                                |   |                        |        |   |                            |   | 51,271 |   |
|       Total                    Stockholders' Deficit                                                                       |   |                        | (719,508    | )      |                            |   | (3,901,492 | ) |
|                                                                                                                                                     |   |                        |        |   |                            |   |   |   |
|                Total                    Liabilities and Stockholders' Deficit |   | $                           | 1,042       |   |                            | $      | 1,334 |   |
|                                                                                                                                                     |   |                        |        |   |                            |   |   |   |

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| **SATELLITE                        ENTERPRISE CORP. AND SUBSIDIARIES     **                                                                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ** **                                                                                                                                                             |   | ** ** |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                        STATEMENTS OF OPERATIONS (UNAUDITED)**                                                                       |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   | Three                        Months Ended June 30, |   |   | Six                        Months Ended June 30, |   |
|                                                                                                                                                                   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                        SALES                                                                                                                                       |   |   |   |   | $ | 265,720 |   |   |   |   |   | $ | 334,649 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST                        AND EXPENSES                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                        of services                                                                                                                                |   |   |   |   |   | 73,421 |   |   |   |   |   |   | 159,699 |   |
| Selling,                        general and                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    administrative                                                                                                                                       |   |   | 102,604 |   |   |   | 103,978 |   |   |   | 111,402 |   |   |   | 436,400 |   |
| Research                        and development                                                                                                                        |   |   |   |   |   |   | 74,142 |   |   |   |   |   |   |   | 74,142 |   |
| Depreciation                        and                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    amortization                                                                                                                                         |   |   |   |   |   |   | 88,777 |   |   |   |   |   |   |   | 196,699 |   |
|           Total                        Costs and Expenses                                                            |   |   | 102,604 |   |   |   | 340,318 |   |   |   | 111,402 |   |   |   | 866,940 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                        OPERATING LOSS                                                                                                                              |   |   | (102,604 | ) |   |   | (74,598 | ) |   |   | (111,402 | ) |   |   | (532,291 | ) |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                        INCOME (EXPENSE)                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency                        Gain                                                                                                                                   |   |   |   |   |   |   | (63,862 | ) |   |   |   |   |   |   | (36,479 | ) |
| Interest                        expense                                                                                                                                |   |   | (6,523 | ) |   |   | (35,331 | ) |   |   | (10,014 | ) |   |   | (66,612 | ) |
|                                                                                                                                                                   |   |   | (6,523 | ) |   |   | (99,193 | ) |   |   | (10,014 | ) |   |   | (103,091 | ) |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                        LOSS FROM CONTINUING OPERATIONS                                                                                                             |   | $ | (109,127 | ) |   | $ | (173,791 | ) |   | $ | (121,416 | ) |   | $ | (635,382 | ) |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED                        OPERATIONS                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                        from discontinued operations (less applicable                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    income                        taxes of 0)                                                                                                            |   |   |   |   |   |   | (132,303 | ) |   |   | (788,736 | ) |   |   | (132,303 | ) |
| Gain                        from the disposal of discontinued operations                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (less                        applicable income taxes of 0)                                                                                           |   |   |   |   |   |   | 603,625 |   |   |   | 3,543,407 |   |   |   | 603,625 |   |
| Gain                        from discontinued operations                                                                                                               |   |   | - |   |   |   | 471,322 |   |   |   | 2,754,671 |   |   |   | 471,322 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                        GAIN (LOSS)                                                                                                                                 |   | $ | (109,127 | ) |   | $ | 297,531 |   |   | $ | 2,633,255 |   |   | $ | (164,060 | ) |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                        GAIN (LOSS) PER COMMON                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARE                        (BASIC AND                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED)                                                                                                                                                               |   |   |   |   |   |   |   |   |   | $ | 0.01 |   |   | $ | (0.01 | ) |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                        AVERAGE                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMMON                        SHARES                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OUTSTANDING                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   | 423,477,518 |   |   |   | 423,477,518 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                        accompanying notes to financial statements.                 |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                           |   |                                           |       |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|--------|--------|--------|
| **SATELLITE                      ENTERPRISE CORP. AND SUBSIDIARIES**                                            |   |
|                                                                                                                           |   |                                           |       |   |   |   |
| **CONSOLIDATED                      STATEMENTS OF CASH FLOWS (UNAUDITED)**                                      |   |
|                                                                                                                           |   |                                           |       |   |   |   |
|                                                                                                                           |   |                                           |       |   |   |   |
|                                                                                                                           |   | Six                      Months Ended June 30, |       |
|                                                                                                                           |   | 2007                                           |       |   | 2006   |   |
|                                                                                                                           |   |                                           |       |   |   |   |
| CASH                      FLOWS FROM OPERATING ACTIVITIES                                                                      |   |                                           |       |   |   |   |
| CONTINUING                      OPERATIONS                                                                                     |   |                                           |       |   |   |   |
| Net                      loss                                                                                                  |   | $                                              | (121,416   | )      |   | $      | (164,060 | ) |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
| Adjustments                      to reconcile net gain/(loss) to cash flows used in operating                      activities: |   |                                           |       |   |   |
| Depreciation                                                                                                                   |   |                                           |       |   |   |   | 196,699 |   |
| Changes                      in operating assets and liabilities:                                                              |   |                                           |       |   |   |   |   |   |
| Accounts                      receivable                                                                                       |   |                                           |       |   |   |   | (96,417 | ) |
| Accounts                      payable                                                                                          |   |                                           |       |   |   |   | (42,654 | ) |
| Accrued                      expenses                                                                                          |   |                                           | 10,013     |   |   |   | (4,589 | ) |
| Accrued                      salaries and related expenses                                                                     |   |                                           |       |   |   |   | (220,658 | ) |
|    NET                      CASH USED IN CONTINUING OPERATING ACTIVITIES                                        |   |                                           | (111,403   | )      |   |   | (331,679 | ) |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
| CASH                      FLOWS FROM INVESTING ACTIVITIES                                                                      |   |                                           |       |   |   |   |   |   |
| Payments                      for equipment                                                                                    |   |                                           |       |   |   |   | (126,459 | ) |
|    NET                      CASH USED IN CONTINUING INVESTING ACTIVITIES                                        |   |                                           |       |   |   |   | (126,459 | ) |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
| CASH                      FLOWS FROM FINANCING ACTIVITIES                                                                      |   |                                           |       |   |   |   |   |   |
| Advances                      from notes payable to related parties                                                            |   |                                           |       |   |   |   | 234,809 |   |
| Change                      in loans payable                                                                                   |   |                                           |       |   |   |   | 250,092 |   |
|    NET                      CASH PROVIDED IN CONTINUING FINANCING ACTIVITIES                                    |   |                                           |       |   |   |   | 484,901 |   |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
| Discontinuing                      operations                                                                                  |   |                                           |       |   |   |   |   |   |
| Net                      income                                                                                                |   |                                           | 2,754,671  |   |   |   |   |   |
| Decrease                      in net liabilities of entities discontinued                                                      |   |                                           | (2,592,289 | )      |   |   |   |   |
|    NET                      CASH USED IN DISCONTINUING OPERATION                                                |   |                                           | 162,382    |   |   |   |   |   |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
| EFFECT                      OF EXCHANGE RATE                                                                                   |   |                                           |       |   |   |   |   |   |
|    CHANGES                      ON CASH                                                                         |   |                                           | (51,271    | )      |   |   | (32,189 | ) |
| (DECREASE)                      INCREASE IN CASH                                                                               |   |                                           | (292       | )      |   |   | (5,426 | ) |
| CASH,                      BEGINNING OF PERIOD                                                                                 |   |                                           | 1,334      |   |   |   | 37,509 |   |
| CASH,                      END OF PERIOD                                                                                       |   | $                                              | 1,042      |   |   | $      | 32,083 |   |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
|                                                                                                                           |   |                                           |       |   |   |   |   |   |
| See                      accompanying notes to financial statements.                   |

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**SATELLITE NEWSPAPERS      CORP. AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL      STATEMENTS**

**JUNE      30, 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.**

**PRIOR      HISTORY OF SATELLITE**

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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:                August 20, 2007 |   | By:                /s/ ROY PICENI              |
|                                 |   | Roy                Piceni                      |
|                                 |   | Chief                Executive Officer and     |
|                                 |   | Chairman                of the Board           |
|                                 |   | (Duly                Authorized Officer)       |
|                                 |   |                                           |
|                                 |   |                                           |
| Date:                August 20, 2007 |   | By:                /s/ RANDY HIBMA             |
|                                 |   | Randy                Hibma                     |
|                                 |   | President                and Chief             |
|                                 |   | Financial                Officer and Director  |
|                                 |   | (Principal                Financial            |
|                                 |   | and                Accounting Officer)         |
|                                 |   |                                           |

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