SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.20549

                                   FORM 10QSB

         QUARTERLY  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended December 31, 1999 or

         TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from October 1, 1999 to December 31, 1999

                        Commission File Number 000-24877

               ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          DELAWARE                                             77-0096608
          --------                                             ----------
(State or other jurisdiction of                             (I.R.S. employer
Incorporation or Organization)                             Identification No.)

                        5380 NORTH STERLING CENTER DRIVE
                           WESTLAKE VILLAGE, CA 91361
--------------------------------------------------------------------------------
          (Address of principal executive offices including zip code)

                                 (818) 865-2205
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                 NOT APPLICABLE
--------------------------------------------------------------------------------
              (Former Name, Former Address and Former Fiscal Year,
                         if changed since last report)

Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required to be filed by Section 13 or 13(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  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 [ ]

the number of shares  outstanding of the Issuer's Common Stock,  par value $0.01
per share, as of December 31, 1999, was 8,894,959.
+



<PAGE>
                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                                   FORM 10-QSB
                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1999

                                Table of Contents

                                                               PAGE
                                                               ====
Item 1  Financial Statements

Balance sheet at December 31, 1999 (unaudited)                 1

Statement of Stockholders' Equity                              2

Statements of Operations for the three months ended
December 31, 1999 and 1998 (unaudited)                         3

Statements of comprehensive loss                               4

Statements of Cash Flows for the three months ended
December 31, 1999 and 1998 (unaudited)                         5-6

Notes to Financial Statements (unaudited)                      7-9

Item 2  Management's Discussion and Analysis of Plan
  of Operations                                                10

General                                                        10

Results of Operations                                          10

Liquidity and Capital Resources                                11


<PAGE>



                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                              FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999


<PAGE>


                 ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                          (A Development Stage Company)
<TABLE>
<CAPTION>

                                 BALANCE SHEETS

                                             ASSETS

                                                               DECEMBER 31,  SEPTEMBER 30,
                                                                  1999           1999
                                                               (Unaudited)     (Audited)
                                                               -----------   ------------
<S>                                                            <C>            <C>
CURRENT ASSETS
               Cash                                            $     8,332    $   105,058
               Marketable securities                                69,329         69,343
               Notes receivable                                     13,093         14,296
               Notes receivable, related parties                   187,401        187,401
               Interest receivable                                  35,087         16,575
               Other                                                19,131         19,131
                                                               -----------   ------------
                    Total current assets                           332,373        411,804
                                                               -----------   ------------

EQUIPMENT                                                           35,096         43,790
                                                               -----------   ------------

OTHER ASSETS
               Notes receivable                                      1,297          1,508
               Notes receivable, related parties                    32,798         32,798
               Deposits                                              3,220          3,220
               Mining rights                                         5,000          5,000
                                                               -----------   ------------
                    Total other assets                              42,315         42,526
                                                               -----------   ------------

TOTAL ASSETS                                                   $   409,784    $   498,120
                                                               ===========    ===========

                            LIABILITIES AND STOCKHOLDERS EQUITY

CURRENT LIABILITIES

               Accounts payable                                $   161,849   $     16,297
               Due to officers                                       8,950          8,950
               Accrued salaries                                    175,000        151,000
                                                               -----------   ------------
                   Total current liabilities                       345,799        176,247
                                                               -----------   ------------

STOCKHOLDERS' EQUITY
               common stock, $.O1 par value, authorized
                 20,000,000 shares; issued and outstanding
                 8,567,148 shares                                   88,949         88,149
               Preferred stock, $.01 par value,
               authorized 20,000,000 shares; issued
               and outstanding 3,000 shares                             20             20
               Additional paid-in capital                        8,568,842      8,568,842
               Deficit accumulated during
                   development stage                            (7,843,406)    (7,584,718)
               Accumulated deficit prior to
                   development stage                              (695,452)      (695,452)
               Accumulated other comprehensive income (loss)       (54,968)       (54,968)
                                                               -----------   ------------
                    Total stockholders' equity                      63,985        321,873
                                                               -----------   ------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $   409,784    $   498,120
                                                               ===========    ===========
</TABLE>

                       See notes to financial statements.

                                       1


<PAGE>

                       ENVIRONMENTAL PRODUCTS TECHNOLOGIES
                                   CORPORATION
                          (A Development Stage Company)

                       STATEMENTS OF STOCKHOLDERS' EQUITY

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)
<TABLE>
<CAPTION>

                             Common stock      Preferred stock
                          ------------------   ---------------   Additional
                           # of                # of               paid-in
                          shares      Amount   shares   Amount    capital
                          ------      ------   ------   ------    -------

<S>                       <C>        <C>        <C>       <C>    <C>
Balance at
September 30,
1999                      8,814,921  $ 88,149   2,000     $ 20   $ 8,568,842
                          ---------  --------   -----     ----   -----------

Common stockholder
loss for The period               -         -       -        -             -

Unrealized loss on
marketable
securities                   80,038       800       -        -             -

Balance at
December31, 1999          8,894,959    88,949   2,000       20     8,568,842
                          =========    ======   =====       ==     =========
</TABLE>

<TABLE>
<CAPTION>



                            Deficit      Accumulated
                          accumulated      deficit       Accumulated
                          during the    prior to the        other           Total
                          development    development    comprehensive    stockholders
                             stage          stage        income (loss)     equity
                             -----          -----        -------------     ------
<S>                      <C>             <C>                 <C>          <C>
Balance at
September 30,
1999                     $ (7,584,718)   $ (695,452)         $ (54,968)   $ 321,873

Common stockholder
loss for the period          (258,688)            -                  -     (258,688)

Unrealized loss on
marketable
securities                          -             -                  -             -
                         -------------   -----------         ----------   ----------
Balance at
December 31, 1999          (7,843,406)     (695,452)           (54,968)     (63,185)
                         =============   ===========         ==========   ==========

</TABLE>


                       See notes to financial statements.



                                       2

<PAGE>

<PAGE>

                 ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF OPERATIONS

                                 FOR THE PERIODS
                                   (Unaudited)

                                                  THREE MONTHS ENDED
                                              -------------------------
                                                      DECEMBER 31,
                                              -------------------------
                                                  1999           1998
                                                  ----           ----

 SALES                                        $      -        $     -
                                              ----------      ---------

 EXPENSES

     Consulting                                   39,191         26,016
     Depreciation                                  8,694          8,694
     Legal and professional                       99,755         96,925
     Liability insurance                             -              -
     Miscellaneous                                 3,523         13,180
     Office supplies end expenses                    983          8,424
     Other expenses                                  -              -
     Rent                                          6,169          8,328
     Repairs and maintenance                         385            454
     Research and development                     39,356         88,400
     Salaries and payroll taxes                   63,009         78,156
     Telephone and utilities                       2,533          4,470
     Travel                                       14,330         37,257
     Writedown of mining rights                      -              -
                                              ----------      ---------
         Total expenses                          277,928        370,304
                                              ----------      ---------

 LOSS FROM OPERATION                            (277,928)      (370,304)

 OTHER INCOME (EXPENSE)
     Interest income                              19,240         22,668
     Interest expense                                -              -
     Loss on sale of marketable securities           -          (28,858)
                                              ----------      ---------

         Total other Income (expense)             19,240         (6,190)

 LOSS BEFORE EXTRAORDINARY ITEM                 (258,688)      (376,494)

 EXTRAORDINARY ITEM
     Gain on extinguishment of debt                  -              -

 NET LOSS                                       (256,688)      (376,494)

 PREFERRED STOCK DIVIDEND

 NET LOSS ATTRIBUTABLE TO
     COMMON SHAREHOLDERS                      $ (258,688)    $ (376,494)
                                              ==========     ==========
 NET L0SS PER COMMON SHARE                    $    (0.03)    $    (0.04)
                                              ==========     ==========


                       see notes to financial statements.

                                       3

<PAGE>



                 ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                    STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

                                 FOR THE PERIODS
                                   (Unaudited)



                                                 THREE MONTHS ENDED
                                                 ------------------
                                                     DECEMBER 31,
                                                     ------------
                                               1999             1998
                                               ----             ----

Net loss                                    $ (258,688)      $ (376,494)

Other comprehensive income:
     Unrealized holding
     gains arising                                 -                -
     during the period

     Add: Reclassification
     adjustment for losses
     included in net loss                          -                -
                                            ----------       ----------

Net unrealized gain (loss)                         -                -
                                            ----------       ----------

Comprehensive loss                         $  (258,688)      $ (376,494)
                                           ===========       ==========



                       See notes to financial statements.


                                       4

<PAGE>



                 ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

                                 FOR THE PERIODS
                                   (Unaudited)

                                                   THREE MONTHS ENDED
                                                   -------------------
                                                      DECEMBER 31,
                                                   -------------------
                                                   1999           1998
                                                   ----           ----

CASH FLOWS FROM
OPERATING ACTIVITIES

Net loss                                       $  (258,688)    $  376,494
                                               -----------     ----------
Adjustments to reconcile net loss
      to net Cash used in operating
      activities:
      Depreciation and amortization                  8,694          8,694
      Loss on sale of marketable securities            -           28,858
      Loss on abandoned equipment                      -              -
      Write down of mining rights                      -              -
      Gain on extinguishment of debt                   -              -
      Noncash research & development                   -              -
      Noncash consulting fees                          -              -
      Noncash executive compensation                   -              -
      (Increase) decrease in operating assets:
           Prepaid expenses                            -              -
           Interest receivable                     (18,521)       (10,571)
           Deposits                                    -           10,000
           Other                                       -           (8,400)
      Increase (decrease) in operating
        liabilities:
          Accounts payable                          92,588        (11,450)
          Accrued salaries                          24,000         24,000
          Accrued interest                             -              -
          Settlement payable                           -              -
                                               -----------     ----------
             Total adjustments                     106,761         41,131

NET CASH USED IN                                       -              -
                                               -----------     ----------
OPERATING ACTIVITIES                              (151,927)      (335,363)
                                               -----------     ----------

CASH FLOWS FROM INVESTING ACTIVITIES
      Loans to related parties                        (900)      (485,000)
      Loans to unrelated parties                   (23,982)           -
      Purchase of equipment                           -           (25,049)
      Purchase of mining rights                       -               -
      Purchase of marketable securities               -          (204,785)
      Proceeds from sale of marketable                -               -
           securities                                 -           204,785

NET CASH USED IN                                      -               -
                                               -----------     ----------
INVESTING ACTIVITIES                               (24,882)      (510,049)
                                               -----------     ----------

                       See notes to financial statements.


                                       5


<PAGE>



                 ENVIRONMENTAL PRODUCTS TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

                                 FOR THE PERIODS
                                   (Unaudited)

                                                          THREE MONTHS ENDED
                                                          ------------------
                                                              DECEMBER 31,
                                                          ------------------
                                                          1999          1998
                                                          ----          ----

        CASH FLOWS FROM FINANCING ACTIVITIES
             Sale of common stock                         80,083           -
             Sale of preferred stock                         -             -
             Costs to raise capital                          -             -
             Loan payments
             Common stock redeemed                           -             -


        NET CASH PROVIDED BY FINANCING
                                                    ------------   -----------
             ACTIVITIES                                   80,083          -
                                                    ------------   -----------

        NET INCREASE (DECREASE) IN CASH                  (96,726)     (845,412)

        CASH, BEGINNING                                  105,058     1,447,444
                                                    ------------   -----------
        CASH, ENDING                                $      8,332   $   602,032
                                                    ============   ===========

                       See notes to financial statements.

                                       6

<PAGE>



                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)

1.       Summary of significant accounting policies

Financial statements

The balance  sheet as of  December  31,  1999,  and the  related  statements  of
stockholders'  equity,  operations  and cash  flows for the three  months  ended
December 31, 1999 and 1998, are unaudited.  Such unaudited financial  statements
have been prepared in accordance with generally accepted  accounting  principles
for  interim  financial  reporting  and with the  instructions  to Form  10-QSB.
Accordingly, they do not include all of the information and disclosures required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of management,  all  adjustments,  consisting of normal recurring
accruals  considered  necessary  for a fair  presentation,  have been  included.
Results for the three  months  ended  December  31,  1999,  are not  necessarily
indicative of the results that may be achieved for any other  interim  period or
for the fiscal year ending September 30, 2000.  These statements  should be read
in conjunction  with the financial  statements and related notes included in the
Company's Annual Report on Form 10-KSB for the year ended September 30, 1999.

Fair market value of financial instruments

The fair market value of the notes receivable  approximate cost based on current
borrowing  rates.  Equity  securities held by the Company include  available for
sale securities,  which are reported at fair value. Unrealized holding gains and
losses for available for sale securities are excluded from earnings and reported
net of any income tax affect as a component of stockholders'  equity. See Note 4
for further discussion.

Loss per share

The  computations  of loss per share of common  stock are based on the  weighted
average number of shares  outstanding of 8,894,959 (1999),  8,567,148 (1998) and
7,563,515 (cumulative period).

                                       7

<PAGE>
                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)


1.       Summary of significant accounting policies (continued)

Comprehensive net loss

On October 1, 1998, the Company  adopted FASB No. 130,  Reporting  Comprehensive
Income. Statement No. 130 requires the reporting of comprehensive income/loss in
addition to net income/loss from operations.  Comprehensive income/loss requires
the inclusion of certain financial information not recognized in the calculation
of net income/loss,  including  unrealized holding gains and losses on available
for sale of securities.

Concentration of credit risk

The Company primarily  transactions its business with two financial institutions
and may maintain deposits in excess of federally insured limits. At December 31,
1999, the Company has not  experienced  any losses in such accounts and believes
it is not exposed to any significant credit risk on cash and cash equivalents.

2.       Notes receivable

At December 31, 1999, notes receivable consist of the following:

         Note receivable, interest at
         10% per year, collateralized
         by interest in a mining company,
         due by March 15, 2000                                $185,000

         Note receivable, interest at
         12% per year, collateralized
         by equipment and common stock,
         due by February 25, 2000                             $135,000

         Note receivable, interest at
         10% per year, uncollateralized
         due by February 25, 2000                             $100,000
                                                              --------

                                                              $420,000
                                                              ========

                                       8

<PAGE>
                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)


3.       Stock options and warrants outstanding


                        Options          Exercise           Exercise date
                        Warrants          Price
                        --------          -----             -------------

Options granted            280,000      $0.1875            July 16, 1999 to
                                                         September 30, 2006

Options granted             50,000       0.1875    Up to September 30, 2006
Warrants issued            300,000       2.0000      Up to January 21, 2001
Warrants issued            300,000       3.8750            Up to April 2003
                    --------------

Options/warrants
Outstanding at

 December 31, 1999         930,000
                    ==============

Options/warrants
Exercisable at

 December 31, 1999         850,000
                    ==============

                                       9

<PAGE>
                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)



Item 2.  MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS


         The company was  incorporated  in 1983 as CCRS,  III, Inc. In 1989, the
Company changed its name to Central  Corporate  Reports  Services,  Inc., merged
with  Information  Bureau Inc. and operated in the  financial  public  relations
business until March 1990 when the Company became inactive.  In 1990 the Company
changed its name back to Combined  Assets,  Inc. and in 1991 changed its name to
ACP  International,  Inc. and in 1994 changed its name back to Combined  Assets,
Inc. In January 1995, the Company's name was changed to Environmental Products &
Technologies Corporation.  At the end of 1995, the Company commenced development
of a waste  management  system to control  odors and solid  stream  waste in the
farming  industry.  In  addition,   the  company  is  developing  organic  based
insecticides for agricultural, commercial and residential use.

         The Company is currently in the development stage of operations and, to
this  time,  has  devoted  its time to  rising  capital,  product  and  supplier
development  and  marketing  future  products.  No  product  has been  assembled
manufactured  or marketed at this time,  except that the Company has assembled a
prototype  Closed- Loop Waste  Management  System or  demonstration  purpose and
three prototype systems for operation by various universities.

         The Company has projected expense of $ 850,000 through June 2000. As of
September  30,1999,  the  Company had  approximately  $ 174,000 of cash and cash
equivalents.  The  Company is in the process of raising  additional  funds which
will allow the  Company  to operate  even is the  Company  generates  no revenue
during this period.

         The Company intends to continue  product  development  with the test of
three  full-scale  systems to be operated at Utah State  University,  Cal Poly -
Pomona and the University of Wisconsin.  The portable units will be employed for
continued demonstrations and sales activity. The goal of such tests is to refine
the process from a batch load to a continuous feed system.  At the same time the
development  of an input/ feed  conveyor  system and a variable  discharge  rate
screw  mechanism to load the bioreactor  needs to be completed.  In addition,  a
solid waste process will also need to be developed.

RESULTS OF OPERATION

COMPARISON OF THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998.

         The Company generated no revenue for the three months ended December 31
1999 and 1998. During each such quarter,  the Company's efforts were directed at
researching,  designing,  developing  and  testing  its Closed  Loop  Management
System.

                                       10

<PAGE>
                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)


         Research and  development  expenses for three months ended December 31,
1999 decreased by $49,044,  to $39,356 from $88,400,  for the three months ended
December 31 1998.  This decrease in research and development  expenses  reflects
expenses  associated with the research,  design and development of the Company's
Closed -Loop Waste Management System.

         General and administrative expenses for three months ended December 31,
1999,  decreased by 43,332, or approximately 15% to $238,572,  from $281,904 for
the  three  months  ended  December  31  1998.  This  decrease  in  general  and
administrative expenses was primarily the result of the decrease in salaries and
travel that was partially offset by increase in consulting and other expenses.

LIQUIDTY AND CAPITAL RESOURCES

         The  Company's  primary  capital needs have been to fund the design and
development of its prototype  Closed-Loop Waste Management System. The Company's
primary  sources of liquidity  have been private  placements  of equity and debt
securities and loans from officers/ stockholders on an as needed basis.

         Between  October and December  1995, the Company sold 100,000 shares of
Common Stock for an aggregate of $10,000, or $.10 per share. Between January and
March1996,  the Company sold 400,000  shares of Common Stock for an aggregate of
$189,650,  or  approximately  $.47 per share.  Between April and June 1996,  the
Company sold 40,000 shares of Common Stock for an aggregate of $35,000,  or $.87
per share.  Between July and September  1996, the Company sold 480,000 shares of
Common  Stock for an aggregate of  $149,200,  or  approximately  $.31 per share.
Between June and September 1997, the Company sold 550,000 shares of Common Stock
for an aggregate of $337,925,  or approximately  $.614 per share. The figures in
the paragraph do not give effect to the two-for-one forward stock split that was
effected by the Company in May 1998.

         In April  1998,  the  Company  sold 3,000  shares of Series A preferred
Stock  together with warrants  (the  "Private  Placement  Warrants") to purchase
300,000 shares of Common Stock (the "1998 Private Placement") for gross proceeds
of $3,000,000.  The net proceeds to the Company of approximately $2,675,000 will
be used for  continue  research  and  development,  working  capital and general

                                       11

<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)


corporate purpose. The Private Placement Warrants have an initial exercise price
of $3.875 per share.  Private  Placement  Warrants expire on March 31,2003.  The
Private Placement Warrants contain provisions for the adjustment of the exercise
price and the aggregate  number of shares  issuable upon exercise  under certain
circumstances,  including  without  limitation,  stock dividends,  stock splits,
reorganization,  reclassification,  consolidations,  certain  dilutive  sales of
securities for which the Private Placements Warrants are exercise able below the
then  existing  Market  Price (as  defined) and failure to maintain a sufficient
number of  authorized  shares of Common Stock for  issuance  and  delivery  upon
exercise of the Private Placement Warrants.

         The Company also has commitments under (I) an employment agreement with
Marvin  Mears,  the  Company's  President and Chief  Executive  Officer;  (ii) a
consulting agreement with Strategic Planning Consultants,  Inc., a consultant of
the Company; and (iii) an officer lease that expires December 31,1999.

         Based on its  current  operating  plan,  the Company  anticipates  that
additional  financing  will be required to finance  its  operations  and capital
expenditures.  The Company's  currently  anticipates levels of revenues and cash
flow are  subject to any  uncertainties  and  cannot be  assured.  Further,  the
Company's  business plan may change, or unforeseen  events may occur,  requiring
the  Company to raise  additional  funds.  The amount of funds  required  by the
Company will depend upon many factors, including without limitations, the extent
and timing of sales of the Company's  waste  management  system,  future product
cost, the timing and cost associated with the  establishment and / or expansion,
as appropriate,  of the Company's  manufacturing,  development,  engineering and
customer  support  capabilities,  the timing and cost of the  Company's  product
development  and  enhancement  activities and the Company's  operating  results.
Until the Company generates cash flow from operations,  which will be sufficient
to satisfy  its cash  requirements,  the Company  will need to seek  alternative
means for financing its operations and capital expenditures and / or postpone or
eliminate certain investments or expenditures.  Potential  alternative means for

                                       12

<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1999
                                   (Unaudited)



financing may include leasing capital equipment,  obtaining a line of credit, or
obtaining additional,  or available on acceptable terms. The inability to obtain
additional  financing or generate  sufficient cash form operations could require
the Company to reduce or eliminate expenditures for capital equipment,  research
and development, production or marketing of its product, or otherwise curtail or
discontinue  its operations,  which could have a material  adverse effect on the
Company's business, financial condition and results of operations.  Furthermore,
if the Company  raises funds through the sale of additional  equity  securities,
the Common Stock currently outstanding may be further diluted.

INFLATION

         Although  certain  of the  Company's  expenses  increase  with  general
inflation  in the  economy,  inflation  has not  had a  material  impact  on the
Company's financial results to date.

YEAR 2000 COMPLIANCE

         We have  completed a  comprehensive  review of our computer  systems to
identify all software  applications  that could be affected by the  inability of
many existing computer systems to process  time-sensitive data accurately beyond
the year 1999 (referred to as the "Year 2000" issue).  We are also continuing to
monitor our computer systems and we are monitoring the adequacy of the processes
and progress of third-party  vendors of systems that may be affected by the Year
2000 issue.  We are  dependent on  third-party  computer  systems  applications,
particularly  with respect to such  critical  tasks as  accounting,  billing and
buying. We also rely on our own computer  systems.  EPTC expects to its complete
its Year 2000  compliance  program by mid-1999  and  anticipates  that its total
expenditures  on  such  programs  will  not  exceed  $20,000.  However,  we  may
experience  cost overturns or delays,  in the future,  which could have material
adverse effect on our business,  results of operations and financial  condition.
While we believe our procedures  are designed to be  successful,  because of the
complexity of the Year 2000 issue and the interdependence of organizations using
computer systems,  our efforts, or those of third-parties with whom we interact,
may  not  be  satisfactorily  completed  in a  timely  fashion.  If we  fail  to
satisfactorily  address  the Year 2000  issue,  then our  business,  results  of
operations and financial condition could be materially adversely affected.

                                       13

<PAGE>
                                    SIGNATURE

         In accordance with the requirements of the Exchange Act, the registrant
caused  this  report to be signed on its behalf by the  undersigned,  thereunder
duly authorized.

                               ENVIRONMENTAL PRODUCTS &
                               TECHNOLOGIES CORPORATION

Dated:   March 24, 2000        By:/s/Marvin Mears
         --------------        ------------------
                               Marvin Mears
                               Chief Executive Officer