SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10QSB


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

         For the quarterly period ended March 31, 1999 or

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

         For the transition period from ________ to _________


                        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 15(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 March 31, 1999, was 8,567,148.

<PAGE>

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

                    THREE AND SIX MONTHS ENDED MARCH 31, 1999


                                TABLE OF CONTENTS
                                                                                                                  Page
<CAPTION>
<S>           <C>                                                                                                    <C>
PART I - FINANCIAL INFORMATION

Item 1        Financial Statements:

              Balance  Sheets at March 31,  1999  (unaudited)                                                        1

              Statements  of Stockholders'  Equity,  3  and  6  months  Ended  March  31,  1999 (unaudited)        2-3

              Statements of Operations, 3 and 6 months Ended March 31, 1999 (unaudited)                              4

              Statements of  Comprehensive  Loss, 3 and 6 months  Ended  March 31, 1999  (unaudited)                 5

              Statements  of Cash Flows, 3 and 6 months Ended March 31, 1999  (unaudited)                          6-7

              Notes to Financial Statements                                                                        8-9

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

              General                                                                                               10

              Results of Operations                                                                                 11

              Liquidity and Capital Resources                                                                    11-12

              Inflation                                                                                             13

              Annual Stockholders' Meeting                                                                          13


PART II - OTHER INFORMATION

Item 1        Legal Proceedings                                                                                     13

Item 2        Changes in Securities                                                                                 13

Item 3        Defaults Upon Senior Securities                                                                       13

Item 4        Submission of Matters to a Vote of Security Holders                                                   13

Item 5        Other Information                                                                                     13

Item 6        Exhibits and Reports on Form 8-K                                                                      13


Signature                                                                                                           14

Financial Data Schedule                                                                                             15
</TABLE>

<PAGE>




                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A Development Stage Company)



                         PART I - FINANCIAL INFORMATION



                              FINANCIAL STATEMENTS

                    THREE AND SIX MONTHS ENDED MARCH 31, 1999




<PAGE>

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

                                 BALANCE SHEETS

                                     ASSETS
<CAPTION>

                                                         MARCH 31,      SEPTEMBER 30,
                                                            1999             1998
                                                        (Unaudited)       (Audited)
                                                        -----------      -----------
<S>                                                     <C>              <C>        
CURRENT ASSETS
     Cash                                               $   167,834      $ 1,447,444
     Marketable securities                                  559,014          385,012
     Notes receivable                                       485,900             --
     Notes receivable, related parties                      155,416          135,000
     Interest receivable                                     30,529            1,446
     Other                                                   10,518             --
                                                        -----------      -----------
          Total current assets                            1,409,211        1,968,902
                                                        -----------      -----------

EQUIPMENT                                                    97,015           77,581
                                                        -----------      -----------

OTHER ASSETS
     Notes receivable, related parties                       24,515           31,631
     Deposits                                                 3,220           13,220
     Mining rights                                            5,000            5,000
                                                        -----------      -----------
          Total other assets                                 32,735           49,851
                                                        -----------      -----------

TOTAL ASSETS                                            $ 1,538,961      $ 2,096,334
                                                        ===========      ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable                                   $      --        $    11,450
     Accrued salaries                                        92,000           44,000
                                                        -----------      -----------
          Total current liabilities                          92,000           55,450
                                                        -----------      -----------

STOCKHOLDERS' EQUITY
     Common stock, $.01 par value, authorized
      20,000,000 shares; issued and outstanding
      8,567,148 shares                                       42,735           42,735
     Preferred stock, $.01 par value,
     authorized 20,000,000 shares; issued
     and outstanding 3,000 shares                                30               30
     Additional paid-in capital                           8,335,647        8,335,647
     Deficit accumulated during
       development stage                                 (6,423,871)      (5,627,088)
     Accumulated deficit prior to
       development stage                                   (695,452)        (695,452)
     Accumulated other comprehensive income (loss)          187,872          (14,988)
                                                        -----------      -----------
          Total stockholders' equity                      1,446,961        2,040,884
                                                        -----------      -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $ 1,538,961      $ 2,096,334
                                                        ===========      ===========
</TABLE>


                       See notes to financial statements.

                                       1

<PAGE>

               ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                         (A Development Stage Company)

                       STATEMENTS OF STOCKHOLDERS' EQUITY

                   THREE AND SIX MONTHS ENDED MARCH 31, 1999
                                  (Unaudited)



                           Common stock        Preferred stock
                       -------------------    ----------------   Additional
                         # of                   # of               paid-in 
                        shares     Amount      shares  Amount      capital 
                        ------     ------      ------  ------      ------- 
Balance at
September 30,
1998                   8,567,148  $ 42,735      3,000  $ 30     $ 8,335,647

Common stockholder
loss for the period

Unrealized loss on
marketable
securities
                       -------------------      -----------     -----------

Balance at
December 31, 1998      8,567,148    42,735      3,000    30       8,335,647
                       -------------------      -----------     -----------

Common stockholder
loss for the period

Unrealized gain on
marketable
securities
                       -------------------      -----------     -----------

Balance at
March 31, 1999         8,567,148  $ 42,735      3,000  $ 30     $ 8,335,647
                       ===================      ===========     ===========


                       See notes to financial statements.

                                       2

<PAGE>

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

                       STATEMENTS OF STOCKHOLDERS' EQUITY

                   THREE AND SIX MONTHS ENDED MARCH 31, 1999
                                  (Unaudited)
<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,
1998                   $(5,627,088)     $  (695,452)     $   (14,988)     $ 2,040,884

Common stockholder
loss for the period       (376,494)                                          (376,494)

Unrealized loss on
marketable
securities                                                  (133,896)        (133,896)
                       -----------      -----------      -----------      -----------

Balance at
December 31, 1998       (6,003,582)        (695,452)        (148,884)       1,530,494
                       -----------      -----------      -----------      -----------

Common stockholder
loss for the period       (420,289)                                          (420,289)

Unrealized gain on
marketable
securities                                                   336,756          336,756
                       -----------      -----------      -----------      -----------

Balance at
March 31, 1999         $(6,423,871)     $  (695,452)     $   187,872      $ 1,446,961
                       ===========      ===========      ===========      ===========
</TABLE>


                       See notes to financial statements.

                                       3

<PAGE>

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

                            STATEMENTS OF OPERATIONS

                                FOR THE PERIODS
                                  (Unaudited)
<CAPTION>

                                                   THREE MONTHS ENDED                  SIX MONTHS ENDED            OCT 1, 1995
                                               ----------------------------      ----------------------------
                                                         MARCH 31,                         MARCH 31,                    to
                                               ----------------------------      ----------------------------
                                                  1999             1998             1999             1998          MAR 31, 1999
                                               -----------      -----------      -----------      -----------      -----------
<S>                                                    <C>             <C>             <C>              <C>                <C>
SALES                                                  $ -             $ -             $ -              $ -                $ -
                                               -----------      -----------      -----------      -----------      -----------
EXPENSES
     Consulting                                     32,316          239,028           58,332          246,414          776,087
     Depreciation                                    8,694              796           17,388              796           35,845
     Legal and professional                         87,268           23,787          184,193           36,153          439,923
     Liability insurance                              --               --               --                 92           13,501
     Miscellaneous                                    --              4,608           13,180            5,364           65,410
     Office supplies and expenses                   57,904            6,244           66,328           15,186          104,704
     Other expenses                                  9,910             --              9,910             --             54,134
     Rent                                           11,623            7,888           19,951           10,408          115,514
     Repairs and maintenance                         1,457             --              1,911             --              6,591
     Research and development                      119,747           34,092          208,147          247,996          662,747
     Salaries and payroll taxes                     71,647           19,307          149,803           38,615          389,417
     Telephone and utilities                         4,716            1,160            9,186            1,276           25,266
     Travel                                         36,728            1,000           73,985            7,324          160,292
     Writedown of mining rights                       --               --               --               --             35,000
                                               -----------      -----------      -----------      -----------      -----------

          Total expenses                           442,010          337,910          812,314          609,624        2,884,431
                                               -----------      -----------      -----------      -----------      -----------

LOSS FROM OPERATIONS                              (442,010)        (337,910)        (812,314)        (609,624)      (2,884,431)

OTHER INCOME (EXPENSE)
     Interest income                                21,721              784           44,389            2,583          101,156
     Interest expense                                 --             (3,090)            --             (6,180)         (23,313)
     Loss on sale of marketable securities            --               --            (28,858)            --            (28,858)
                                               -----------      -----------      -----------      -----------      -----------

          Total other income (expense)              21,721           (2,306)          15,531           (3,597)          48,985

LOSS BEFORE EXTRAORDINARY ITEM                    (420,289)        (340,216)        (796,783)        (613,221)      (2,835,446)

EXTRAORDINARY ITEM
     Gain on extinguishment of debt                                                                                     64,208

NET LOSS                                          (420,289)        (340,216)        (796,783)        (613,221)      (2,771,238)

PREFERRED STOCK DIVIDEND                                                                                            (3,295,610)

NET LOSS ATTRIBUTABLE TO
     COMMON SHAREHOLDERS                       $  (420,289)     $  (340,216)     $  (796,783)     $  (613,221)     $(6,066,848)
                                               ===========      ===========      ===========      ===========      ===========

NET LOSS PER COMMON SHARE                      $     (0.05)     $     (0.04)     $     (0.09)     $     (0.08)     $     (0.82)
                                               ===========      ===========      ===========      ===========      ===========
</TABLE>


                       See notes to financial statements.

                                       4

<PAGE>

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

                   STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

                                FOR THE PERIODS
                                  (Unaudited)
<CAPTION>


                                       THREE MONTHS ENDED                 SIX MONTHS ENDED           OCT 1, 1995
                                  ----------------------------      ----------------------------
                                            MARCH 31,                         MARCH 31,                   to
                                  ----------------------------      ----------------------------
                                     1999             1998             1999             1998         MAR 31, 1999
                                  -----------      -----------      -----------      -----------      -----------
<S>                               <C>              <C>              <C>              <C>              <C>         
Net loss                          $  (420,289)     $  (340,216)     $  (796,783)     $  (613,221)     $(2,771,238)

Other comprehensive income:
       Unrealized holding
       gains arising                  336,756             --            174,002             --            174,002
       during the period

       Add:  Reclassification
       adjustment for losses
       included in net loss              --               --             28,858             --             28,858
                                  -----------      -----------      -----------      -----------      -----------

Net unrealized gain                   336,756             --            202,860             --            202,860
                                  -----------      -----------      -----------      -----------      -----------

Comprehensive loss                $   (83,533)     $  (340,216)     $  (593,923)     $  (613,221)     $(2,568,378)
                                  ===========      ===========      ===========      ===========      ===========
</TABLE>


                       See notes to financial statements.

                                       5

<PAGE>

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

                            STATEMENTS OF CASH FLOWS

                                FOR THE PERIODS
                                  (Unaudited)
<CAPTION>


                                                         THREE MONTHS ENDED                 SIX MONTHS ENDED            OCT 1, 1995
                                                    ----------------------------      ----------------------------
                                                              MARCH 31,                          MARCH 31,                   to
                                                    ----------------------------      ----------------------------
                                                       1999             1998             1999             1998          MAR 31, 1999
                                                    -----------      -----------      -----------      -----------      -----------
<S>                                                 <C>              <C>              <C>              <C>              <C>         
CASH FLOWS FROM
OPERATING ACTIVITIES

Net loss                                            $  (420,289)     $  (340,216)     $  (796,783)     $  (613,221)     $(2,771,238)
                                                    -----------      -----------      -----------      -----------      -----------
Adjustments to reconcile net loss
       to net cash used in operating
       activities:
       Depreciation and amortization                      8,694              796           17,388              796           35,845
       Loss on sale of marketable securities               --               --             28,858             --             28,858
       Loss on abandoned equipment                         --               --               --               --              1,093
       Write down of mining rights                         --               --               --               --             35,000
       Gain on extinguishment of debt                      --               --               --               --            (64,208)
       Noncash research & development                      --               --               --            131,250          131,250
       Noncash consulting fees                             --            178,428             --            185,282          536,306
       Noncash executive compensation                      --              5,737             --             25,383           23,460
        (Increase) decrease in operating assets:
            Prepaid expenses                               --               --               --               --               --
            Interest receivable                         (21,721)            (784)         (32,292)          (1,568)         (33,738)
            Deposits                                       --               --             10,000           (2,520)          (3,220)
            Other                                          --               --             (8,400)            --             (8,400)
       Increase (decrease) in operating liabilities:
            Accounts payable                               --               --            (11,450)          (6,078)          (5,258)
            Accrued salaries                             24,000           34,000           48,000           36,308          148,888
            Accrued interest                               --               --               --             (1,910)           7,320
            Settlement payable                             --               --               --            (17,005)          10,000
                                                    -----------      -----------      -----------      -----------      -----------
                Total adjustments                        10,973          218,177           52,104          349,938          843,196

NET CASH USED IN
                                                    -----------      -----------      -----------      -----------      -----------
OPERATING ACTIVITIES                                   (409,316)        (122,039)        (744,679)        (263,283)      (1,928,042)
                                                    -----------      -----------      -----------      -----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES
       Loans to related parties                            (900)            --           (485,900)         (12,116)        (755,531)
       Loans to unrelated parties                       (23,982)            --            (23,982)         (23,982)
       Purchase of equipment                               --               --            (25,049)            --           (122,180)
       Purchase of mining rights                           --               --               --            (35,000)         (40,000)
       Purchase of marketable securities                   --               --           (204,785)            --           (604,785)
       Proceeds from sale of marketable                    --
            securities                                     --               --            204,785             --            204,785

NET CASH USED IN
                                                    -----------      -----------      -----------      -----------      -----------
INVESTING ACTIVITIES                                    (24,882)            --           (534,931)         (47,116)      (1,341,693)
                                                    -----------      -----------      -----------      -----------      -----------
</TABLE>


                       See notes to financial statements.

                                       6

<PAGE>

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

                            STATEMENTS OF CASH FLOWS

                                FOR THE PERIODS
                                  (Unaudited)
<CAPTION>


                                                         THREE MONTHS ENDED                 SIX MONTHS ENDED            OCT 1, 1995
                                                    ----------------------------      ----------------------------
                                                              MARCH 31,                          MARCH 31,                   to
                                                    ----------------------------      ----------------------------
                                                       1999             1998             1999             1998          MAR 31, 1999
                                                    -----------      -----------      -----------      -----------      -----------
<S>                                                 <C>              <C>              <C>              <C>              <C>         
CASH FLOWS FROM FINANCING ACTIVITIES
       Sale of common stock                                --               --               --             90,625          820,100
       Sale of preferred stock                             --               --               --               --          3,000,000
       Costs to raise capital                              --            (25,000)            --            (25,000)        (357,023)
       Loan payments                                       --               --               --                500          (22,000)
       Common stock redeemed                               --               --               --               --             (5,700)

NET CASH PROVIDED BY FINANCING
                                                    -----------      -----------      -----------      -----------      -----------
       ACTIVITIES                                          --            (25,000)            --             66,125        3,435,377
                                                    -----------      -----------      -----------      -----------      -----------

NET INCREASE/(DECREASE) IN CASH                        (434,198)        (147,039)      (1,279,610)        (244,274)         165,642

CASH, BEGINNING                                         602,032          174,125        1,447,444          271,360            2,192
                                                    -----------      -----------      -----------      -----------      -----------

CASH, ENDING                                        $   167,834      $    27,086      $   167,834      $    27,086      $   167,834
                                                    ===========      ===========      ===========      ===========      ===========
</TABLE>


                       See notes to financial statements.

                                       7

<PAGE>

                ENVIRONMENTAL PRODUCTS & TECHNOLOGIES CORPORATION
                          (A development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                    THREE AND SIX MONTHS ENDED MARCH 31, 1999
                                   (Unaudited)

1.       Summary of significant accounting policies

Financial statements

The  balance  sheet  as of  March  31,  1999,  and  the  related  statements  of
stockholders'  equity,  operations  and cash  flows for the three and six months
ended  March  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 and six months  ended March 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, 1999. 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,
1998.

Fair market value of financial instruments

The fair market value of the notes receivable approximates cost bases 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 affected as a component of stockholders' equity.

Loss per share

The  computations  of loss per share of  common  stock on the  weighted  average
number of shares outstanding of 8,567,148 (1999), 7,949,648 (1998) and 7,389,917
(cumulative period).

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 securities.



                                       8

<PAGE>

Concentration of credit risk

The Company primarily transacts its business with two financial institutions and
may maintain  deposits in excess of federally insured limits. At March 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 March 31, 1999, notes receivable consist of the following:

                  Note receivable, interest at
                  10% per year, collateralized
                  by interest in a mining
                  company, due by June 24, 1999                        $185,900

                  Note receivable, collateralized
                  By equipment and common stock,
                  Interest at 12% per year, due
                  May 27, 1999.                                         100,000

                  Note receivable, uncollateralized,
                  Interest at 10% per year, due by
                  June 1, 1999                                          200,000
                                                                       --------

                                                                       $485,900
                                                                       ========

3.       Stock options and warrants outstanding

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

         Options granted     280,000     $ .1875     July 16, 1999 to
                                                     September 30, 2006

         Options granted      50,000       .1875     Up to
                                                     September 30, 2006

         Warrants issued     300,000       2.000     Up to
                                                     January 21, 2001

         Warrants issued     300,000       3.875     Up to April, 2003
                             -------

         Options/warrants
         Outstanding at
         March 31, 1999      930,000
                             =======

         Options/warrants
         Exercisable at
         March 31, 1999      650,000
                             =======



                                       9

<PAGE>

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

         The  following  discussion  should  be read  in  conjunction  with  the
financial  statements  and notes thereto  appearing  elsewhere in this quarterly
report on Form 10-QSB for the  quarter and six months  ended March 31, 1999 (the
"Form 10-QSB"). In addition to historical information, this Form 10-QSB contains
forward-looking  statements. The forward-looking statements contained herein are
subject to certain risks and  uncertainties  that could cause actual  results to
differ  materially  from  those  reflected  in the  forward-looking  statements.
Factors  that might  cause such a  difference  include,  but are not limited to,
those discussed in the section entitled "Management's Discussion and Analysis or
Plan of Operations."  Readers are cautioned not to place undue reliance on these
forward-looking  comments,  which reflect  management's  analysis only as of the
date hereof.  Environmental Products & Technologies  Corporation (the "Company")
undertakes no obligation to publicly revise these  forward-looking  comments, or
to reflect events or  circumstances  that arise after the date thereof.  Readers
should carefully  review the risk factors  described in the other documents that
the  Company  has  filed  and will  continue  to file from time to time with the
Securities and Exchange Commission.

GENERAL

         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 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.  The Company is currently in the development  stage of operations and,
to this time,  has devoted  its time to raising  capital,  product and  supplier
development,  and marketing  future  products.  No products have been assembled,
manufactured or marketed at this time, except that the Company has assembled one
prototype  Closed-Loop Waste Management  System for  demonstration  purposes and
three prototype systems for operation by various  universities.  As of March 31,
1999,  the Company had a deficit  accumulated  during the  development  stage of
$6,423,871  and an  accumulated  deficit  prior  to  the  development  stage  of
$695,452.

         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.  These units well be employed for
continued  demonstrations  and  sales  activity.  While  the  development  of an
input/feed conveyor system has been completed, a variable discharge mechanism to
load and unload the  Bioreactor  needs to be completed.  In addition,  a liquids
waste process has been developed but needs to have its testing completed.



                                       10

<PAGE>

RESULTS OF OPERATIONS

COMPARISON OF THE THREE AND SIX MONTHS ENDED MARCH 31, 1999 AND 1998.

         The Company  recognized  no revenue for the three and six months  ended
March 31, 1999,  and for the three and six months  ended March 31, 1998.  During
each such period, the Company's efforts were directed at researching, designing,
developing and testing its Closed-Loop Waste Management System.

         Research  and  development  expenses  primarily  consist of the cost of
personnel and equipment needed to conduct the Company's research and development
efforts.  Research and development expenses for the three months ended March 31,
1999 increased  approximately 251% or $85,655,  to $119,747 from $34,092 for the
three-month  period ended March 31, 1998.  For the six-month  period ended March
31, 1999 and 1998, the Company's research and development expenses were $208,147
and  $247,996,   respectively,   which  represent  a  decrease  of  $39,849,  or
approximately  16%. During each such period the Company  continued  research and
development work on the Closed-Loop Waste Management System.

         General and  administrative  expenses  primarily consist of general and
administrative  costs  related to the salaries of the  Company's  administrative
personnel and associated costs, including legal and consulting fees. General and
administrative  expenses for the three months ended March 31, 1999, increased by
$18,445 or six percent to $322,263  from  $303,818  for the  three-month  period
ended  March  31,  1998.  For the six  months  ended  March 31,  1999,  expenses
increased  by $242,539,  or 67%, to $604,167  from  $361,628  for the  six-month
period  ended March 31, 1998.  This is due to  increased  spending for legal and
professional fees, salaries and travel.

         The Company's loss from operations for the three months ended March 31,
1999,  increased  by  $104,100,  or  31%,  to  $442,010  from  $337,910  for the
three-month  period ended March 31, 1998. The Company's loss from operations for
the six months ended March 31, 1999, increased by $202,690,  or 33%, to $812,314
from $609,624 for the three-month  period ended March 31, 1998. This increase in
loss from operations is mainly attributed to increased research and development,
salaries,  legal and professional fees, and travel,  partially offset by reduced
consulting expenses.


LIQUIDITY 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
March 1996,  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



                                       11

<PAGE>

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
this  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 continued  research and development,  working  capital,  and general
corporate  purposes.  The Private  Placement  Warrants have an initial  exercise
price of $3.875 per share.  The 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,  reorganizations,   reclassifications,   consolidations,  certain
dilutive  sales of  securities  for which the  Private  Placement  Warrants  are
exercisable  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 to
the Company; and (iii) an office lease that expires December 31, 1999.

         Based on its current  operating plan, the Company  foresees the need to
raise  additional  capital in order to continue to pursue its business  strategy
and is currently seeking external funding.  The Company's currently  anticipated
levels of revenues and cash flow are subject to many 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
limitation,  the extent and timing of sales of the  Company's  waste  management
system,  future  product  costs,  the  timing  and  costs  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 that 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 financing may include leasing capital equipment,
obtaining a line of credit,  or obtaining  additional debt or equity  financing.
There can be no assurance that, if and when needed, additional financing will be
available, or available on acceptable



                                       12

<PAGE>

terms. The inability to obtain additional  financing or generate sufficient cash
from  operations  could require the Company to reduce or eliminate  expenditures
for capital equipment, research and development,  production or marketing of its
products, or otherwise curtail or discontinue its operations, which could have a
material  adverse affect 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.


ANNUAL STOCKHOLDERS' MEETING

         The  annual  stockholders'   meeting  was  held  April  19,  1999.  The
stockholders  elected three  directors,  R. Marvin Mears,  Charles M. Vance, and
Gerald G.  Nordstrom.  The proposals to adopt a 1999 stock  incentive plan, 1999
incentive  compensation  plan, and 1999 non-employee  director  restricted stock
plan, as well as appointment of the auditors, were all approved.


                  PART II. OTHER INFORMATION

Item 1.           Legal Proceedings.
                  ------------------
                  None.

Item 2.           Changes in Securities.
                  ----------------------
                  None.

Item 3.           Defaults Upon Senior Securities.
                  --------------------------------
                  None.

Item 4.           Submission of Matters to a Vote of Security Holders.
                  ----------------------------------------------------
                  None.

Item 5.           Other Information.
                  ------------------
                  None.

Item 6.           Exhibits and Reports on Form 8-K.
                  ---------------------------------
                  (a)   Exhibits:
                      27.   Financial Data Schedule
                  (b) Reports on Form 8-K.
                        None.



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<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:            May 10, 1999                         By: /s/Marvin Mears
                                                       Marvin Mears
                                                       Chief Executive Officer



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