| FLORIDA                                                       | 11-3331350                          |
|---------------------------------------------------------------|-------------------------------------|
| (State orother jurisdiction of incorporation or organization) | (I.R.S.Employer Identification No.) |

| UniverCellHoldings, Inc.   |
|----------------------------|
| ConsolidatedBalance Sheets |
|                            |
| ASSETS                     |
|                            | September 30, |  | December31, |

|                                                           | 2003                                                |  | 2002                                      |
|-----------------------------------------------------------|-----------------------------------------------------|--|-------------------------------------------|
|                                                           | (Unaudited)                                         |  |                                           |
| Current Assets                                            |                                                     |  |                                           |
| Cash                                                      | $251,185                                            |  | $79,668                                   |
| Restricted Cash                                           | 0                                                   |  | 10,070                                    |
| Accounts Receivables(Net ofAllowance of $293,923)         | 393,276                                             |  | 380,797                                   |
| Prepaid Expenses                                          |         968 |  |     62,500            |
|                                                           |                                                     |  |                                           |
| Total Current Assets                                      |   645,429                                 |  |   533,035                       |
|                                                           |                                                     |  |                                           |
| Property & Equipment (Net)                            |     64,810                      |  |     59,791            |
|                                                           |                                                     |  |                                           |
| Other Assets                                              |                                                     |  |                                           |
| Deferred Financing Costs                                  | 54,154                                              |  | 123,780                                   |
| Deferred Beneficial Conversion Costs (net ofamortization) | 105,875                                             |  | 242,000                                   |
| Deposits                                                  |       7,688           |  |       8,656 |
|                                                           |                                                     |  |                                           |
| Total Other Assets                                        |   167,717                                 |  |   374,436                       |
|                                                           |                                                     |  |                                           |
| Total Assets                                              | $877,956                                            |  | $967,262                                  |

| LIABILITIESAND STOCKHOLDERS' EQUITY                                                                  |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |
| Current Liabilities                                                                                  |  |  |  |
|                                                                                                      |  |  |  |
| Accounts Payable                                                                                     | $555,682 |  | $423,345 |
| Accrued Expenses                                                                                     | 47,668 |  | 90,795 |
| Current Portion of LeaseObligations                                                                  |      17,325 |  |      13,969 |
|                                                                                                      |  |  |  |
| Total Current Liabilities                                                                            | 620,675 |  | 528,109 |
|                                                                                                      |  |  |  |
| Long-Term Debt                                                                                       |  |  |  |
| Convertible Debentures                                                                               | 474,427 |  | 650,000 |
| Obligations under CapitalLease                                                                       | 19,994 |  | 33,853 |
| Current Portion of LeaseObligations                                                                  |     (17,325) |  |     (13,969) |
|                                                                                                      |  |  |  |
| Total Long Term Debt                                                                                 | 477,096 |  | 669,884 |
|                                                                                                      |  |  |  |
| Total Liabilities                                                                                    | 1,097,771 |  | 1,197,993 |
|                                                                                                      |  |  |  |
| Stockholders' Equity                                                                                 |  |  |  |
| Common Stock,Authorized 50,000,000 Shares, $.0001 Par Value, Issued and Outstanding52,201,504 shares | 6,740 |  | 3,990 |
| Additional Paid in Capital                                                                           | 692,138 |  | 464,315 |
| Retained Earnings (Deficit)                                                                          | (918,693) |  | (699,036) |
|                                                                                                      |  |  |  |
| Total Stockholders' Equity                                                                           |   (209,745) |  | (230,731) |
|                                                                                                      |  |  |  |
| Total Liabilities andStockholders' Equity                                                            | $877,956 |  | $967,262 |

| Theaccompanying notes are an integal part of theses financial statements. |
|---------------------------------------------------------------------------|

| UniverCellHoldings, Inc.             |
|--------------------------------------|
| ConsolidatedStatements of Operations |
|                                      | (Unaudited) |  |  |  |  |  |  |
|                                      |  |  |  |  |  |  |  |
|                                      | For the threemonths Ended | For the ninemonths Ended |
|                                      | September30, |  | September30, |
|                                      | 2003 |  | 2002 |  | 2003 |  | 2002 |
|                                      |  |  |  |  |  |  |  |
|                                      |  |  |  |  |  |  |  |
| Revenues                             | 363,885 |  | 346,755 |  | 854,084 |  | 649,141 |
|                                      |  |  |  |  |  |  |  |
| Cost of Sales                        | 255,569 |  | 173,409 |  | 371,242 |  | 338,873 |
|                                      |  |  |  |  |  |  |  |
| Gross Profit (Loss)                  | 108,316 |  | 173,346 |  | 482,842 |  | 310,268 |
|                                      |  |  |  |  |  |  |  |
| Operating Expenses                   |  |  |  |  |  |  |  |
| Bad Debt expense                     |  |  |  |  | 7,879 |  |  |
| General &Administrative          | 182,943 |  | 277,055 |  | 668,928 |  | 693,053 |
|                                      |  |  |  |  |  |  |  |
| Total Operating Expenses             | 182,943 |  | 277,055 |  | 676,806 |  | 693,053 |
|                                      |  |  |  |  |  |  |  |
| Net Operating Income (Loss)          | (74,627) |  | (103,709) |  | (193,964) |  | (382,785) |
|                                      |  |  |  |  |  |  |  |
| Other Income(Expense)                |  |  |  |  |  |  |  |
| Interest Income                      | 63 |  | 1,707 |  | 309 |  | 2,006 |
| Interest Expense                     | (11,153) |  | (150,380) |  | (26,001) |  | (270,796) |
| Other Income (Expense)               |             - |  |               - |  |                - |  |                 - |
|                                      |  |  |  |  |  |  |  |
| Total OtherIncome(Expense)           | (11,090) |  | (148,673) |  | (25,692) |  | (268,790) |
|                                      |  |  |  |  |  |  |  |
| Net Income (Loss)                    | $(85,717) |  | $(252,382) |  | $(219,656) |  | $(651,575) |
|                                      |  |  |  |  |  |  |  |
| Net Income (Loss) Per Share          | $(0.00) |  | $(0.01) |  | $0.00 |  | $(0.02) |
|                                      |  |  |  |  |  |  |  |
| Weighted Average Shares Outstanding  | 56,399,324 |  | 40,314,410 |  | 52,460,998 |  | 39,930,202 |

| UniverCellHoldings, Inc.             |
|--------------------------------------|
| ConsolidatedStatements of Cash Flows |
| (Unaudited)                          |
|                                      |

|                                                          | For the nine months ended                                                             |
|----------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                          | September30,                                                                          |
|                                                          |                                                                                       |  |  |
|                                                          | 2003                                                                                  |  | 2002 |
| CASH FLOWS FROM OPERATING ACTIVITIES:                    |                                                                                       |  |  |
|                                                          |                                                                                       |  |  |
| Net Income (Loss)                                        | $(219,656)                                                                            |  | $(651,575) |
| Adjustments to Reconcile Net Loss to Net Cash            |                                                                                       |  |  |
| Provided by Operations:                                  |                                                                                       |  |  |
| Depreciation &Amortization                           | 13,948                                                                                |  | 11,600 |
| Interest Expense - DeferredFinancing Costs               | 69,626                                                                                |  | 148,542 |
| Accrued Interest - ConvertibleDebenture                  | 22,001                                                                                |  | 8,914 |
| Interest Expense - BeneficialConversion                  | 136,125                                                                               |  | 113,209 |
| Shares issued for Services                               | 15,000                                                                                |  | - |
| Bad Debt Expense                                         | -                                                                                     |  | - |
| Change in Assets and Liabilities                         |                                                                                       |  |  |
| (Increase) Decrease in AccountsReceivable                |                                                                                       | (12,479) |  | (310,747) |
| (Increase) Decrease in OtherCurrent Assets               | -                                                                                     |  | (105,407) |
| Increase (Decrease) in Depositsand Prepaids              | 62,500                                                                                |  | (6,239) |
| Increase (Decrease) in AccountsPayable/ Accrued Expenses | 67,209                                                                                |  | 298,266 |
|                                                          |                                                                                       |  |  |
| Net Cash Provided(Used) by Operating Activities          | 154,274                                                                               |  | (493,437) |
|                                                          |                                                                                       |  |  |
| CASH FLOWS FROM INVESTING ACTIVITIES:                    |                                                                                       |  |  |
|                                                          |                                                                                       |  |  |
| Redemption of Certificate ofDeposit                      | 10,070                                                                                |  | 24,930 |
| Purchases of Property andEquipment                       | (18,968)                                                                              |  | (13,931) |
| Payment from NotesReceivable                             |               - |  |                 - |
|                                                          |                                                                                       |  |  |
| Net Cash Provided (Used) byInvesting Activities          |   (8,898)                                                                   |  | 10,999 |
|                                                          |                                                                                       |  |
|                                                          |                                                                                       |  |  |
| CASH FLOWS FROM FINANCING ACTIVITIES:                    |                                                                                       |  |  |
|                                                          |                                                                                       |  |  |
| Cash Paid for Deferred FinancingCosts                    | -                                                                                     |  | (84,500) |
| Offering Costs                                           | -                                                                                     |  | - |
| Proceeds from StockholderLoan                            | -                                                                                     |  | - |
| Payment of Stockholder Loan                              | -                                                                                     |  | (1,874) |
| Proceeds from ConvertibleDebenture                       | 40,000                                                                                |  | 650,000 |
| Principal Payments on CapitalLeases                      | (13,860)                                                                              |  |                   - |
|                                                          |                                                                                       |  |  |
| Net Cash Provided(Used) byFinancing Activities           |      26,140                                                  |  |       563,626 |
|                                                          |                                                                                       |  |  |
|                                                          |                                                                                       |  |  |
| NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS          |    171,516                                                             |  | 81,188 |
|                                                          |                                                                                       |  |  |
| CASH AND EQUIVALENTS AT BEGINNING OF PERIOD              |      79,668                                                  |  |        90,560 |
|                                                          |                                                                                       |  |  |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD               | $ 251,185                                                                        |  | $  171,748 |
|                                                          |                                                                                       |  |  |
| Cash Paid For:                                           |                                                                                       |  |  |
| Interest                                                 | $  4,040                                                                              |  | $              - |
| Income Taxes                                             | $          -                        |  | $              - |
|                                                          |                                                                                       |  |  |
| Non-Cash Activities:                                     |                                                                                       |  |  |
|                                                          |                                                                                       |  |  |
| Warrant placement fees                                   | $-                                                                                    |  | $313,000 |
| Shares issued for Debentureconversion                    | 215,573                                                                               |  | - |
| Stock issued to settlepayables                           |              -       |  |      231,250 |