U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                 Quarterly Report under Section 13 or 15 (d) of
                         Securities Exchange Act of 1934

                       For the Period ended July 31, 2006

                        Commission File Number 333-124304


                             MILK BOTTLE CARDS INC.
                 (Name of small business issuer in its charter)


        Nevada                         2771                     20-1904354
(State of incorporation)      (Primary SIC Number)      (IRS Employer ID Number)


                              127 East 18th Avenue
                          Vancouver, BC, Canada V5V 1E4
                             Telephone (604)733-6194
                                Fax (604)733-6195
          (Address and telephone number of principal executive offices)

Check 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 [ ]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

There were 3,000,000 shares of Common Stock outstanding as of July 31, 2006.
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                                 Balance Sheets

<TABLE>
<CAPTION>
                                                                July 31, 2006     January 31, 2006
                                                                -------------     ----------------
                                                                 (unaudited)
<S>                                                               <C>                <C>
                                   A S S E T S

Current Assets
  Cash                                                            $ 12,655            $ 19,230
                                                                  --------            --------
      Total  Assets                                               $ 12,655            $ 19,230
                                                                  ========            ========

                              L I A B I L I T I E S

Current Liabilities
   Accounts Payable and Accrued Liabilities                       $  2,814            $  2,771
                                                                  --------            --------
      Total Current Liabilities                                      2,814               2,771
                                                                  --------            --------

                      S T O C K H O L D E R S ' E Q U I T Y

Common Stock (Note 3)
  100,000,000 authorized common shares, par value $0.001
   3,000,000 common shares issued and outstanding
   (January 31, 2006 - 3,000,000)                                    3,000               3,000
  Additional Paid-in-Capital                                        32,000              32,000
  Deficit accumulated during development stage                     (25,159)            (18,541)
                                                                  --------            --------
      Total Stockholders' Equity                                     9,841              16,459
                                                                  --------            --------

Total Liabilities and Stockholders' Equity                        $ 12,655            $ 19,230
                                                                  ========            ========
</TABLE>

Going Concern Contingency (Note 1)

                 The accompanying notes are an integral part of
                      these interim financial statements.

                                       2
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                        Interim Statements of Operations
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                                              Cumulative from
                                       Three months      Three months       Six months        Six months     November 19, 2004
                                           ended             ended             ended             ended        (inception) to
                                       July 31, 2006     July 31, 2005     July 31, 2006     July 31, 2005     July 31, 2006
                                       -------------     -------------     -------------     -------------     -------------
<S>                                     <C>               <C>               <C>               <C>               <C>
REVENUES                                $        --       $        --       $        --       $        --       $       476

COST OF GOODS SOLD                               --                --                --                --               210
                                        -----------       -----------       -----------       -----------       -----------

GROSS PROFIT                                     --                --                --                --               266
                                        -----------       -----------       -----------       -----------       -----------
EXPENSES
  General and Administrative Expenses         2,392             2,541             6,618             4,497            25,425
                                        -----------       -----------       -----------       -----------       -----------

NET LOSS                                $    (2,392)      $    (2,541)      $    (6,618)      $    (4,497)      $   (25,159)
                                        ===========       ===========       ===========       ===========       ===========
Basic and Diluted Net Loss Per
 Common Share                           $     (0.00)      $     (0.00)      $     (0.00)      $     (0.00)
                                        ===========       ===========       ===========       ===========
Weighted Average Number of
 Common Shares Outstanding                3,000,000         2,000,000         3,000,000         2,000,000
                                        ===========       ===========       ===========       ===========
</TABLE>

                 The accompanying notes are an integral part of
                      these interim financial statements.

                                       3
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                        Statement of Stockholders' Equity
 For the period from November 19, 2004 (inception) to July 31, 2006 (unaudited)

<TABLE>
<CAPTION>
                                                                                             Deficit
                                                                                           Accumulated
                                                      Common Shares           Additional     During          Total
                                                                 $0.001        Paid-In     Development    Stockholders'
                                                   Shares       Par Value      Capital        Stage         Equity
                                                   ------       ---------      -------        -----         ------
<S>                                             <C>           <C>          <C>            <C>             <C>
Balance, November 19, 2004                              --       $    --       $    --      $     --       $     --

Stock Issued for cash at $0.005 per share
 November 29, 2004                               2,000,000         2,000         8,000            --         10,000

Net Loss                                                --            --            --        (6,034)        (6,034)
                                               -----------       -------       -------      --------       --------

Balance, January 31, 2005                        2,000,000         2,000         8,000        (6,034)         3,966

Stock Issued for cash at $0.025 per share
 September 20, 2005                              1,000,000         1,000        24,000            --         25,000

Net Loss                                                --            --            --       (12,507)       (12,507)
                                               -----------       -------       -------      --------       --------

Balance, January 31, 2006                        3,000,000         3,000        32,000       (18,541)        16,459

Net Loss                                                                                      (6,618)        (6,618)
                                               -----------       -------       -------      --------       --------
Balance, July 31, 2006                         $ 3,000,000       $ 3,000       $32,000      $(25,159)      $  9,841
                                               ===========       =======       =======      ========       ========
</TABLE>

                 The accompanying notes are an integral part of
                      these interim financial statements.

                                       4
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                        Interim Statements of Cash Flows
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                             Cumulative from
                                                                                            November 19, 2004
                                                  Six months ended     Six months ended       (inception) to
                                                    July 31, 2006        July 31, 2005        July 31, 2006
                                                    -------------        -------------        -------------
<S>                                                   <C>                  <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss                                            $ (6,618)            $ (4,497)            $(25,159)
  Changes in non-cash working capital items:
    Accounts Payable and Accrued Liabilities                43               (1,621)               2,814
                                                      --------             --------             --------
Net Cash Used in Operating Activities                   (6,575)              (6,118)             (22,345)
                                                      --------             --------             --------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Common Stock issued for cash                              --                   --               35,000
                                                      --------             --------             --------
Net Cash Provided by Financing Activities                   --                   --               35,000
                                                      --------             --------             --------

Increase in Cash                                        (6,575)              (6,118)              12,655

Cash Balance, Beginning                                 19,230                9,841                   --
                                                      --------             --------             --------

Cash Balance, Ending                                  $ 12,655             $  3,723             $ 12,655
                                                      ========             ========             ========

Supplemental Disclosures:
  Cash Paid for interest                              $     --             $     --             $     --
                                                      ========             ========             ========
  Cash Paid for income taxes                          $     --             $     --             $     --
                                                      ========             ========             ========
</TABLE>

                 The accompanying notes are an integral part of
                      these interim financial statements.

                                       5
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                            July 31, 2006 (unaudited)
                      Notes to Interim Financial Statements


NOTE 1 - NATURE OF OPERATIONS

ORGANIZATION

Milk Bottle Cards Inc. (the  "Company") was  incorporated  under the laws of the
State of Nevada on November 19, 2004 for the purpose of producing,  distributing
and marketing a collection of greeting cards.

These financial  statements  have been prepared on a going concern basis,  which
implies that the Company will  continue to realize its assets and  discharge its
liabilities in the normal course of business.  The Company's ability to continue
as a going  concern is  dependent on raising  additional  capital to fund future
operations and ultimately to attain profitable operations.  The Company has been
in the initial  organization  stage since inception and as at July 31, 2006, the
Company has accumulated losses of $25,159 since inception.  Since inception, the
Company  has  funded   operations   through  the  issuance  of  capital   stock.
Management's plan is to continue raising  additional funds through future equity
or debt  financings  until it achieves  profitable  operations from sales of its
greeting cards.  There is no certainty that additional funding will be available
when  needed.  Accordingly,  these  factors  raise  substantial  doubt as to the
Company's ability to continue as a going concern.  These financial statements do
not include any adjustments to the recoverability and classification of recorded
asset amounts and  classification  of liabilities that might be necessary should
the Company be unable to continue as a going concern.

UNAUDITED INTERIM FINANCIAL STATEMENTS

The accompanying  unaudited interim  financial  statements have been prepared in
accordance  with United States  generally  accepted  accounting  principles  for
interim  financial  information  and with the  instructions  to Form  10-QSB  of
Regulation S-B. They do not include all  information  and footnotes  required by
United States generally  accepted  accounting  principles for complete financial
statements.  However,  except as  disclosed  herein,  there has been no material
changes in the  information  disclosed in the notes to the financial  statements
for the year ended January 31, 2006  included in the Company's  Annual Report on
Form 10-KSB  filed with the  Securities  and  Exchange  Commission.  The interim
unaudited  financial  statements  should  be  read  in  conjunction  with  those
financial  statements included in the Form 10-KSB. In the opinion of Management,
all adjustments considered necessary for a fair presentation,  consisting solely
of normal recurring  adjustments,  have been made. Operating results for the six
months ended July 31, 2006 are not  necessarily  indicative  of the results that
may be expected for the year ending January 31, 2007.

                                       6
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                            July 31, 2006 (unaudited)
                      Notes to Interim Financial Statements


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

These financial  statements are presented in United States dollars and have been
prepared  in  accordance  with  United  States  generally  accepted   accounting
principles.

DEVELOPMENT STAGE ENTERPRISE

The  Company  is  a  development  stage  enterprise,  as  defined  in  Financial
Accounting Standards Board Statement ("SFAS") No. 7 "Accounting and Reporting by
Development  Stage  Enterprises".  The  Company is  devoting  all of its present
efforts to securing  and  establishing  a new  business.  Its planned  principal
operations have commenced;  however, the Company has yet to derive a significant
amount of revenue from operations.

USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  on
contingent assets and liabilities at the date of the financial  statements,  and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

The Company considers all liquid investments, with an original maturity of three
months or less when purchased, to be cash equivalents.

REVENUE RECOGNITION

The Company recognizes revenue when products have been shipped,  the amounts are
fixed  or  determinable  and  collection  is  reasonably  assured.  The  Company
recognizes  revenue from sales of  consignment  goods when cash is received from
the consignor.

FINANCIAL INSTRUMENTS

In accordance  with the  requirements of SFAS No. 107,  "Disclosures  about Fair
Value of Financial  Instruments,"  the Company has determined the estimated fair
value  of  financial   instruments   using  available  market   information  and
appropriate  valuation  methodologies.  The carrying values of cash and accounts
payable and accrued  liabilities  approximate  fair values due to the short-term
maturity of the instruments.

                                       7
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                            July 31, 2006 (unaudited)
                      Notes to Interim Financial Statements


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CON'T)

INCOME TAXES

The Company has adopted  SFAS No. 109  "Accounting  for Income  Taxes" as of its
inception.  Pursuant  to SFAS No.  109,  the  Company is required to compute tax
asset benefits for net operating  losses carried forward.  Potential  benefit of
net  operating  losses have not been  recognized in these  financial  statements
because the Company cannot be assured it is more likely than not it will utilize
the net operating losses carried forward in future years.

LOSS PER COMMON SHARE

The  Company  computes  net loss per  share in  accordance  with  SFAS No.  128,
"Earnings  per  Share".  SFAS No. 128  requires  presentation  of both basic and
diluted  earnings per share (EPS) on the face of the  statement  of  operations.
Basic  EPS is  computed  by  dividing  net  income  (loss)  available  to common
shareholders  (numerator) by the weighted  average number of shares  outstanding
(denominator)  during the period.  Diluted EPS gives  effect to all  potentially
dilutive  common shares  outstanding  during the period using the treasury stock
method and  convertible  preferred  stock using the "if  converted"  method.  In
computing  diluted  EPS,  the  average  stock  price  for the  period is used in
determining  the number of shares  assumed to be purchased  from the exercise of
stock options or warrants.  Diluted EPS excludes all potentially dilutive shares
if their  effect is anti  dilutive.  The Company has not issued any  potentially
dilutive  instruments  since inception and accordingly only basic loss per share
is presented.

FOREIGN CURRENCY TRANSLATION

The Company's  functional currency and reporting currency is the U.S. dollar. In
accordance with SFAS No. 52, "Foreign Currency Translation", foreign denominated
monetary assets and liabilities are translated to their U.S. dollar  equivalents
using foreign exchange rates which prevailed at the balance sheet date.  Revenue
and  expenses  are  translated  at average  rates of  exchange  during the year.
Related  translation  adjustments  are  reported  as  a  separate  component  of
stockholders'  equity,  whereas gains or losses  resulting from foreign currency
transactions are included in results of operations.  To date the Company has not
reported any translation adjustments or transaction gains or losses.

                                       8
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                            July 31, 2006 (unaudited)
                      Notes to Interim Financial Statements


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CON'T)

STOCK-BASED COMPENSATION

In December  2004, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement  of Financial  Accounting  Standard  ("SFAS")  No. 123R,  "Share-Based
Payment", which replaced SFAS No. 123, "Accounting for Stock-Based Compensation"
and superseded APB Opinion No. 25,  "Accounting  for Stock Issued to Employees".
In January 2005,  the Securities  and Exchange  Commission  ("SEC") issued Staff
Accounting  Bulletin  ("SAB") No. 107,  "Share-Based  Payment",  which  provides
supplemental  implementation  guidance for SFAS No. 123R. SFAS No. 123R requires
all  share-based  payments to  employees,  including  grants of  employee  stock
options,  to be recognized in the financial  statements  based on the grant date
fair value of the award. SFAS No. 123R was to be effective for interim or annual
reporting periods beginning on or after June 15, 2005, but in April 2005 the SEC
issued a rule that will permit most  registrants  to implement  SFAS No. 123R at
the beginning of their next fiscal year, instead of the next reporting period as
required by SFAS No. 123R. The pro-forma disclosures  previously permitted under
SFAS  No.  123  no  longer  will  be  an  alternative  to  financial   statement
recognition.  Under SFAS No. 123R,  the Company must  determine the  appropriate
fair value model to be used for valuing share-based  payments,  the amortization
method for  compensation  cost and the  transition  method to be used at date of
adoption.  The transition methods include  prospective and retroactive  adoption
options.  Under the retroactive options, prior periods may be restated either as
of the  beginning  of the year of  adoption or for all  periods  presented.  The
prospective  method  requires  that  compensation  expense be  recorded  for all
unvested  stock  options  and  restricted  stock at the  beginning  of the first
quarter of adoption of SFAS No. 123R, while the retroactive methods would record
compensation  expense  for all  unvested  stock  options  and  restricted  stock
beginning  with  the  first  period  restated.   The  Company  has  adopted  the
requirements of SFAS No. 123R for the fiscal year beginning on February 1, 2006.

Prior to the  adoption  of SFAS No.  123R,  the  Company  measured  compensation
expense for its  employee  stock-based  compensation  plans using the  intrinsic
value  method  prescribed  by APB  Opinion  No.  25.  The  Company  applied  the
disclosure  provisions  of SFAS No. 123 as amended by SFAS No. 148,  "Accounting
for  Stock-Based   Compensation  -  Transition  and   Disclosure",   as  if  the
fair-value-based  method had been  applied in  measuring  compensation  expense.
Under APB Opinion  No. 25, when the  exercise  price of the  Company's  employee
stock options was equal to the market price of the underlying  stock on the date
of the grant, no compensation expense was recognized.

The  Company  has not  granted any stock  options  since  inception  and has not
recorded any stock-based compensation.

                                       9
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                            July 31, 2006 (unaudited)
                      Notes to Interim Financial Statements


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CON'T)

COMPREHENSIVE INCOME

SFAS No.  130,  "Reporting  Comprehensive  Income,"  establishes  standards  for
reporting  and  presentation  of  comprehensive   income,   its  components  and
accumulated balances.  Comprehensive income is defined to include all changes in
equity except those resulting from  investments by owners and  distributions  to
owners.  Among other  disclosures,  SFAS No.130 requires that all items that are
required to be recognized  under current  accounting  standards as components of
comprehensive income be reported in a financial statement that is presented with
the same prominence as other financial statements. The Company does not have any
assets requiring disclosure of comprehensive income.

RECENT ACCOUNTING PRONOUNCEMENTS

In March 2005, the FASB issued FASB  Interpretation  ("FIN") No. 47,  ACCOUNTING
FOR CONDITIONAL  ASSET RETIREMENT  OBLIGATIONS.  Under the provisions of FIN No.
47, the term conditional  asset  retirement  obligation as used in SFAS No. 143,
ACCOUNTING FOR ASSET  RETIREMENT  OBLIGATIONS,  refers to a legal  obligation to
perform  an asset  retirement  activity  in which the  timing  and/or  method of
settlement  are  conditional on a future event that may or may not be within the
control of the entity  while the  obligation  to  perform  the asset  retirement
activity is  unconditional.  Accordingly,  an entity is required to  recognize a
liability for the fair value of a conditional asset retirement obligation if the
fair value of the  liability can be  reasonably  estimated.  The fair value of a
liability  for the  conditional  asset  retirement  obligation is required to be
recognized  when   incurred--generally   upon  acquisition,   construction,   or
development  and/or through the normal  operation of the asset.  The Company has
adopted FIN No. 47 as of December 31, 2005.  Adoption of this  pronouncement did
not have a significant effect on the 2005 financial  statements,  and management
does not expect this pronouncement to have a significant effect on the Company's
future reported financial position or earnings.

In November  2005, the FASB issued Staff Position  ("FSP")  FAS115-1/124-1,  THE
MEANING  OF  OTHER-THAN-TEMPORARY  IMPAIRMENT  AND ITS  APPLICATION  TO  CERTAIN
INVESTMENTS,  which  addresses  the  determination  as to when an  investment is
considered  impaired,  whether that impairment is other than temporary,  and the
measurement  of  an  impairment   loss.   This  FSP  also  includes   accounting
considerations   subsequent  to  the  recognition  of  an   other-than-temporary
impairment and requires certain  disclosures  about unrealized  losses that have
not been recognized as  other-than-temporary  impairments.  The guidance in this
FSP amends FASB Statements No. 115,  ACCOUNTING FOR CERTAIN  INVESTMENTS IN DEBT
AND EQUITY SECURITIES,  and No. 124,  ACCOUNTING FOR CERTAIN INVESTMENTS HELD BY
NOT-FOR-PROFIT  ORGANIZATIONS,  and APB  Opinion  No. 18,  THE EQUITY  METHOD OF
ACCOUNTING FOR INVESTMENTS IN COMMON STOCK.  This FSP is effective for reporting
periods  beginning  after  December  15, 2005.  Management  does not believe the
adoption  of this  FSP will  have a  material  impact  on the  Company's  future
reported financial position or results of operations.

                                       10
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                            July 31, 2006 (unaudited)
                      Notes to Interim Financial Statements


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CON'T)

RECENT ACCOUNTING PRONOUNCEMENTS (CON'T)

In February 2006, the FASB issued SFAS No. 155,  "Accounting  for Certain Hybrid
Financial  Instruments-an  amendment  of FASB  Statements  No. 133 and 140",  to
simplify  and  make  more  consistent  the  accounting  for  certain   financial
instruments.  SFAS No. 155  amends  SFAS No.  133,  "Accounting  for  Derivative
Instruments and Hedging Activities",  to permit fair value remeasurement for any
hybrid  financial  instrument  with an embedded  derivative that otherwise would
require  bifurcation,  provided that the whole  instrument is accounted for on a
fair  value  basis.  SFAS No.  155  amends  SFAS No.  140,  "Accounting  for the
Impairment   or  Disposal  of   Long-Lived   Assets",   to  allow  a  qualifying
special-purpose  entity to hold a derivative  financial instrument that pertains
to a beneficial  interest other than another  derivative  financial  instrument.
SFAS No. 155 applies to all financial  instruments  acquired or issued after the
beginning of an entity's first fiscal year that begins after September 15, 2006,
with earlier  application  allowed.  Management  does not expect the adoption of
this  statement  will  have a  material  impact  on  the  Company's  results  of
operations or financial condition.

In March  2006,  the FASB  issued SFAS No. 156,  "Accounting  for  Servicing  of
Financial  Assets,  an  amendment  of FASB  Statement  No. 140,  Accounting  for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
This statement requires all separately recognized servicing assets and servicing
liabilities be initially measured at fair value, if practicable, and permits for
subsequent  measurement using either fair value measurement with changes in fair
value reflected in earnings or the amortization  and impairment  requirements of
Statement No. 140. The subsequent measurement of separately recognized servicing
assets and  servicing  liabilities  at fair value  eliminates  the necessity for
entities  that  manage the risks  inherent  in  servicing  assets and  servicing
liabilities  with  derivatives  to qualify for hedge  accounting  treatment  and
eliminates  the  characterization  of declines in fair value as  impairments  or
direct write-downs.  SFAS No. 156 is effective for an entity's first fiscal year
beginning after  September 15, 2006.  Management does not expect the adoption of
this  statement  will  have a  material  impact  on  the  Company's  results  of
operations or financial condition.

NOTE 3 - COMMON STOCK

The Company's authorized  capitalization is 100,000,000 common shares with a par
value of $0.001 per share.

Since  inception,  the Company  has not  granted  any stock  options and has not
recorded any stock-based compensation.

Effective November 29, 2004, a total of 2,000,000 shares of the Company's common
stock were issued to the founding and sole director of the Company pursuant to a
stock subscription agreement at $0.005 per share for total proceeds of $10,000.

Effective  September  20,  2005, a total of  1,000,000  shares of the  Company's
common stock were issued pursuant to stock subscription agreements at $0.025 per
share for total proceeds of $25,000.

                                       11
<PAGE>
                             Milk Bottle Cards Inc.
                        (A Development Stage Enterprise)
                            July 31, 2006 (unaudited)
                      Notes to Interim Financial Statements


NOTE 4 - RELATED PARTY TRANSACTIONS

The Company has had no significant  related party  transactions with any related
individuals or entities.

The Company  currently uses office space provided by the director of the Company
on a rent-free  basis not subject to any formal rental or lease  agreement.  The
Company has  determined  that the fair value of the office space provided is not
significant  and  accordingly no related rent expense has been recorded in these
financial statements.

The  President  currently  donates  card design and  production  services to the
Company. The Company has determined that the fair value of these services is not
significant  and  accordingly  no related  expense  has been  recorded  in these
financial statements.

                                       12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS

We are  still  in  our  development  stage  and  have  only  recently  commenced
operations and the development of our greeting card business.

For the three  months  ended July 31, 2006 we generated no revenues and incurred
operating  expenses of $2,392.  These  expenses  consisted of general  operating
expenses  incurred in  connection  with the day to day operation of our business
and the preparation and filing of our periodic reports.

We had no  revenues  for  the  three  months  ended  July  31,  2006  and  2005,
respectively. Our net loss for the three months ended July 31, 2006 and 2005 was
$2,392 and $2,541, respectively.

In their report on our audited financial statements as of the year ended January
31, 2006, our auditors  expressed their doubt about our ability to continue as a
going concern based on our current financial position.

LIQUIDITY AND CAPITAL RESOURCES

We expect to be able to satisfy  our cash  requirements  for at least the next 6
months with our cash in the bank of $12,655 at July 31, 2006  without  having to
raise additional funds or seek bank loans. After that 6 month period, if we have
not yet generated  revenues  sufficient to sustain business  operations,  we may
have to raise  additional  monies  through  sales of our  equity  securities  or
through  loans  from banks or third  parties to  continue  our  business  plans,
however no such plans are currently anticipated.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

BUSINESS OPERATIONS OVERVIEW

We have a total of  100,000,000  authorized  common  shares  with a par value of
$0.001 per share and 3,000,000  common shares issued and  outstanding as of July
31, 2006.

We have completed a form SB-2 Registration Statement under the Securities Act of
1933 with the U.S.  Securities  and Exchange  Commission  registering  1,000,000
shares of our common  stock in  connection  with an  offering  of the  1,000,000
shares at a price of $0.025 per share.  As of September  20, 2005,  we completed
the  offering  and raised a total of $25,000 on the  issuance  of the  1,000,000
shares.

On January 5, 2006 our common  stock  shares  were  approved  for trading on the
Over-the-Counter  Bulletin Board under the symbol MBTL. There has been no active
trading market to date, thus no high or low bids to report.

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<PAGE>
In furtherance of our business we have the following plans:

*    We have  launched our website at  www.milkbottlecards.com  which  currently
     displays  several  different cards for sale;  including hand painted cards,
     holiday, birthday and thank you cards. We are currently working on multiple
     series' of cards  that  utilize  the same theme but within  each theme have
     cards for birthdays, weddings, baby showers, anniversaries,  etc. We expect
     to have the new cards available for sale in October 2006.

*    Online  Paypal  purchasing  is expected to be  available by October 2006 to
     facilitate online purchasing.

*    We have  completed a client  custom card order for 100 holiday cards and we
     would like to expand the custom card business by contacting  more corporate
     entities  and  introducing  them to Milk  Bottle  Cards and our custom card
     opportunities especially for the holiday season.

*    We were recently contacted  regarding custom wedding  invitations and based
     on our research and costs the potential  customer decided to go with a more
     standard wedding  invitation.  As we anticipated it is difficult to compete
     with other  companies who do this on a much larger scale,  with much better
     equipment.  We will continue to research how we can better serve  customers
     in this area of card  making as we feel that  there is a market  for custom
     designed wedding invitations.

*    We anticipate  increasing  the card  inventory to in excess of 500 cards by
     October  2006  inclusive  of cards  of all  categories,  with an  increased
     emphasis on Thank you cards and hand painted  cards in Autumn  colors.  The
     production  of hand painted  cards by our  president  will  continue and we
     expect to have an inventory of 250 of these cards by October 2006.

*    We are looking into selling the hand painted cards and collaged cards at an
     increased  price as `original  pieces of art',  and then  scanning them and
     selling the prints of these  `originals' in limited  edition series as they
     do with art prints.

*    Our cards are  currently  available in a home  accessories  retail store in
     Vancouver  on a  consignment  basis.  We would like to expand  this type of
     business  and we will be  continuing  to contact  specialty  retailers  and
     presenting this business opportunity to them.

*    We will continue to increase our card  collection and inventory and we will
     continue to market the  collection  to other  retail  stores in  throughout
     Summer/Fall  2006. In addition,  we anticipate  participating in local gift
     and home living trade shows in Summer/Fall 2006.

*    We are going to research  new  printing  techniques  in order to reduce the
     problem with wasted  materials we have encountered in our production of the
     printed cards due to the overuse of our printer.

*    Our president plans on hosting a home party sale during the Fall 2006 where
     she  will  invite  family,  friends  and  business  associates  to view and
     purchase cards from the new collection.

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<PAGE>
CRITICAL ACCOUNTING POLICIES

The unaudited financial statements as of July 31, 2006 included herein have been
prepared  without  audit  pursuant  to the  rules  and  regulations  of the U.S.
Securities and Exchange Commission. Certain information and footnote disclosures
normally  included in financial  statements  prepared in accordance with general
accepted  accounting  procedures have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals)  considered necessary for a fair presentation have
been  included.  It is  suggested  that these  financial  statements  be read in
conjunction  with our January 31, 2006 audited  financial  statements  and notes
thereto,  which can be found in our Form 10-KSB Annual Report on the SEC website
at www.sec.gov under our SEC File Number 333-124304.

BASIS OF PRESENTATION

These financial  statements are presented in United States dollars and have been
prepared  in  accordance  with  United  States  generally  accepted   accounting
principles.

DEVELOPMENT STAGE ENTERPRISE

The  Company  is  a  development  stage  enterprise,  as  defined  in  Financial
Accounting Standards Board Statement ("SFAS") No. 7 "Accounting and Reporting by
Development  Stage  Enterprises".  The  Company is  devoting  all of its present
efforts to securing  and  establishing  a new  business.  Its planned  principal
operations have commenced;  however, the Company has yet to derive a significant
amount of revenue from operations.

USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  on
contingent assets and liabilities at the date of the financial  statements,  and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

The Company considers all liquid investments, with an original maturity of three
months or less when purchased, to be cash equivalents.

REVENUE RECOGNITION

The Company recognizes revenue when products have been shipped,  the amounts are
fixed  or  determinable  and  collection  is  reasonably  assured.  The  Company
recognizes  revenue from sales of  consignment  goods when cash is received from
the consignor.

FINANCIAL INSTRUMENTS

In accordance  with the  requirements of SFAS No. 107,  "Disclosures  about Fair
Value of Financial  Instruments,"  the Company has determined the estimated fair
value  of  financial   instruments   using  available  market   information  and

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<PAGE>
appropriate  valuation  methodologies.  The carrying values of cash and accounts
payable and accrued  liabilities  approximate  fair values due to the short-term
maturity of the instruments.

INCOME TAXES

The Company has adopted  SFAS No. 109  "Accounting  for Income  Taxes" as of its
inception.  Pursuant  to SFAS No.  109,  the  Company is required to compute tax
asset benefits for net operating  losses carried forward.  Potential  benefit of
net  operating  losses have not been  recognized in these  financial  statements
because the Company cannot be assured it is more likely than not it will utilize
the net operating losses carried forward in future years.

LOSS PER COMMON SHARE

The  Company  computes  net loss per  share in  accordance  with  SFAS No.  128,
"Earnings  per  Share".  SFAS No. 128  requires  presentation  of both basic and
diluted  earnings per share (EPS) on the face of the  statement  of  operations.
Basic  EPS is  computed  by  dividing  net  income  (loss)  available  to common
shareholders  (numerator) by the weighted  average number of shares  outstanding
(denominator)  during the period.  Diluted EPS gives  effect to all  potentially
dilutive  common shares  outstanding  during the period using the treasury stock
method and  convertible  preferred  stock using the "if  converted"  method.  In
computing  diluted  EPS,  the  average  stock  price  for the  period is used in
determining  the number of shares  assumed to be purchased  from the exercise of
stock options or warrants.  Diluted EPS excludes all potentially dilutive shares
if their  effect is anti  dilutive.  The Company has not issued any  potentially
dilutive  instruments  since inception and accordingly only basic loss per share
is presented.

FOREIGN CURRENCY TRANSLATION

The Company's  functional currency and reporting currency is the U.S. dollar. In
accordance with SFAS No. 52, "Foreign Currency Translation", foreign denominated
monetary assets and liabilities are translated to their U.S. dollar  equivalents
using foreign exchange rates which prevailed at the balance sheet date.  Revenue
and  expenses  are  translated  at average  rates of  exchange  during the year.
Related  translation  adjustments  are  reported  as  a  separate  component  of
stockholders'  equity,  whereas gains or losses  resulting from foreign currency
transactions are included in results of operations.  To date the Company has not
reported any translation adjustments or transaction gains or losses.

STOCK-BASED COMPENSATION

In December  2004, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement  of Financial  Accounting  Standard  ("SFAS")  No. 123R,  "Share-Based
Payment", which replaced SFAS No. 123, "Accounting for Stock-Based Compensation"
and superseded APB Opinion No. 25,  "Accounting  for Stock Issued to Employees".
In January 2005,  the Securities  and Exchange  Commission  ("SEC") issued Staff
Accounting  Bulletin  ("SAB") No. 107,  "Share-Based  Payment",  which  provides
supplemental  implementation  guidance for SFAS No. 123R. SFAS No. 123R requires
all  share-based  payments to  employees,  including  grants of  employee  stock
options,  to be recognized in the financial  statements  based on the grant date
fair value of the award. SFAS No. 123R was to be effective for interim or annual
reporting periods beginning on or after June 15, 2005, but in April 2005 the SEC

                                       16
<PAGE>
issued a rule that will permit most  registrants  to implement  SFAS No. 123R at
the beginning of their next fiscal year, instead of the next reporting period as
required by SFAS No. 123R. The pro-forma disclosures  previously permitted under
SFAS  No.  123  no  longer  will  be  an  alternative  to  financial   statement
recognition.  Under SFAS No. 123R,  the Company must  determine the  appropriate
fair value model to be used for valuing share-based  payments,  the amortization
method for  compensation  cost and the  transition  method to be used at date of
adoption.  The transition methods include  prospective and retroactive  adoption
options.  Under the retroactive options, prior periods may be restated either as
of the  beginning  of the year of  adoption or for all  periods  presented.  The
prospective  method  requires  that  compensation  expense be  recorded  for all
unvested  stock  options  and  restricted  stock at the  beginning  of the first
quarter of adoption of SFAS No. 123R, while the retroactive methods would record
compensation  expense  for all  unvested  stock  options  and  restricted  stock
beginning  with  the  first  period  restated.   The  Company  has  adopted  the
requirements of SFAS No. 123R for the fiscal year beginning on February 1, 2006.

Prior to the  adoption  of SFAS No.  123R,  the  Company  measured  compensation
expense for its  employee  stock-based  compensation  plans using the  intrinsic
value  method  prescribed  by APB  Opinion  No.  25.  The  Company  applied  the
disclosure  provisions  of SFAS No. 123 as amended by SFAS No. 148,  "Accounting
for  Stock-Based   Compensation  -  Transition  and   Disclosure",   as  if  the
fair-value-based  method had been  applied in  measuring  compensation  expense.
Under APB Opinion  No. 25, when the  exercise  price of the  Company's  employee
stock options was equal to the market price of the underlying  stock on the date
of the grant, no compensation expense was recognized.

The  Company  has not  granted any stock  options  since  inception  and has not
recorded any stock-based compensation.

COMPREHENSIVE INCOME

SFAS No.  130,  "Reporting  Comprehensive  Income,"  establishes  standards  for
reporting  and  presentation  of  comprehensive   income,   its  components  and
accumulated balances.  Comprehensive income is defined to include all changes in
equity except those resulting from  investments by owners and  distributions  to
owners.  Among other  disclosures,  SFAS No.130 requires that all items that are
required to be recognized  under current  accounting  standards as components of
comprehensive income be reported in a financial statement that is presented with
the same prominence as other financial statements. The Company does not have any
assets requiring disclosure of comprehensive income.

RECENT ACCOUNTING PRONOUNCEMENTS

In May 2005,  the FASB  issued SFAS No.  154,  ACCOUNTING  FOR CHANGES AND ERROR
CORRECTIONS  - A  REPLACEMENT  OF APB OPINION NO. 20 AND FASB  STATEMENT  NO. 3.
Under the provisions of SFAS No. 154, a voluntary change in accounting principle
requires retrospective application to prior period financial statements,  unless
it is  impracticable  to  determine  either the  period-specific  effects or the
cumulative  effect of the change.  A change in  depreciation,  amortization,  or
depletion method for long-lived, non-financial assets must be accounted for as a
change in accounting estimate affected by a change in accounting principle.  The
guidance  contained in APB No. 20 for  reporting  the  correction of an error in
previously issued financial  statements and a change in accounting  estimate was

                                       17
<PAGE>
not changed.  The Company will implement this new standard  beginning January 1,
2006.  This  standard  is not  expected  to  have a  significant  effect  on the
Company's future reported financial position or results of operations.

In March 2005, the FASB issued FASB  Interpretation  ("FIN") No. 47,  ACCOUNTING
FOR CONDITIONAL  ASSET RETIREMENT  OBLIGATIONS.  Under the provisions of FIN No.
47, the term conditional  asset  retirement  obligation as used in SFAS No. 143,
ACCOUNTING FOR ASSET  RETIREMENT  OBLIGATIONS,  refers to a legal  obligation to
perform  an asset  retirement  activity  in which the  timing  and/or  method of
settlement  are  conditional on a future event that may or may not be within the
control of the entity  while the  obligation  to  perform  the asset  retirement
activity is  unconditional.  Accordingly,  an entity is required to  recognize a
liability for the fair value of a conditional asset retirement obligation if the
fair value of the  liability can be  reasonably  estimated.  The fair value of a
liability  for the  conditional  asset  retirement  obligation is required to be
recognized  when   incurred--generally   upon  acquisition,   construction,   or
development  and/or through the normal  operation of the asset.  The Company has
adopted FIN No. 47 as of December 31, 2005.  Adoption of this  pronouncement did
not have a significant effect on the 2005 financial  statements,  and management
does not expect this pronouncement to have a significant effect on the Company's
future reported financial position or earnings.

In November  2005, the FASB issued Staff Position  ("FSP")  FAS115-1/124-1,  THE
MEANING  OF  OTHER-THAN-TEMPORARY  IMPAIRMENT  AND ITS  APPLICATION  TO  CERTAIN
INVESTMENTS,  which  addresses  the  determination  as to when an  investment is
considered  impaired,  whether that impairment is other than temporary,  and the
measurement  of  an  impairment   loss.   This  FSP  also  includes   accounting
considerations   subsequent  to  the  recognition  of  an   other-than-temporary
impairment and requires certain  disclosures  about unrealized  losses that have
not been recognized as  other-than-temporary  impairments.  The guidance in this
FSP amends FASB Statements No. 115,  ACCOUNTING FOR CERTAIN  INVESTMENTS IN DEBT
AND EQUITY SECURITIES,  and No. 124,  ACCOUNTING FOR CERTAIN INVESTMENTS HELD BY
NOT-FOR-PROFIT  ORGANIZATIONS,  and APB  Opinion  No. 18,  THE EQUITY  METHOD OF
ACCOUNTING FOR INVESTMENTS IN COMMON STOCK.  This FSP is effective for reporting
periods  beginning  after  December  15, 2005.  Management  does not believe the
adoption  of this  FSP will  have a  material  impact  on the  Company's  future
reported financial position or results of operations.

In February 2006, the FASB issued SFAS No. 155,  "Accounting  for Certain Hybrid
Financial  Instruments-an  amendment  of FASB  Statements  No. 133 and 140",  to
simplify  and  make  more  consistent  the  accounting  for  certain   financial
instruments.  SFAS No. 155  amends  SFAS No.  133,  "Accounting  for  Derivative
Instruments and Hedging Activities",  to permit fair value remeasurement for any
hybrid  financial  instrument  with an embedded  derivative that otherwise would
require  bifurcation,  provided that the whole  instrument is accounted for on a
fair  value  basis.  SFAS No.  155  amends  SFAS No.  140,  "Accounting  for the
Impairment   or  Disposal  of   Long-Lived   Assets",   to  allow  a  qualifying
special-purpose  entity to hold a derivative  financial instrument that pertains
to a beneficial  interest other than another  derivative  financial  instrument.
SFAS No. 155 applies to all financial  instruments  acquired or issued after the
beginning of an entity's first fiscal year that begins after September 15, 2006,
with earlier  application  allowed.  Management  does not expect the adoption of

                                       18
<PAGE>
this  statement  will  have a  material  impact  on  the  Company's  results  of
operations or financial condition.

In March  2006,  the FASB  issued SFAS No. 156,  "Accounting  for  Servicing  of
Financial  Assets,  an  amendment  of FASB  Statement  No. 140,  Accounting  for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
This statement requires all separately recognized servicing assets and servicing
liabilities be initially measured at fair value, if practicable, and permits for
subsequent  measurement using either fair value measurement with changes in fair
value reflected in earnings or the amortization  and impairment  requirements of
Statement No. 140. The subsequent measurement of separately recognized servicing
assets and  servicing  liabilities  at fair value  eliminates  the necessity for
entities  that  manage the risks  inherent  in  servicing  assets and  servicing
liabilities  with  derivatives  to qualify for hedge  accounting  treatment  and
eliminates  the  characterization  of declines in fair value as  impairments  or
direct write-downs.  SFAS No. 156 is effective for an entity's first fiscal year
beginning after  September 15, 2006.  Management does not expect the adoption of
this  statement  will  have a  material  impact  on  the  Company's  results  of
operations or financial condition.

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the  participation  of our management,  including
our principal  executive officer and the principal  financial  officer,  we have
conducted an evaluation of the  effectiveness of the design and operation of our
disclosure controls and procedures,  as defined in Rules 13a-15(e) and 15d-15(e)
under the  Securities  and  Exchange  Act of 1934,  as of the end of the  period
covered  by this  report.  Based on this  evaluation,  our  principal  executive
officer and principal financial officer concluded as of the evaluation date that
our  disclosure  controls and  procedures  were effective such that the material
information  required to be included in our Securities  and Exchange  Commission
reports is recorded, processed,  summarized and reported within the time periods
specified in SEC rules and forms  relating to our company,  particularly  during
the period when this report was being prepared.

Additionally,  there were no significant  changes in our internal controls or in
other factors that could  significantly  affect these controls subsequent to the
evaluation date. We have not identified any significant deficiencies or material
weaknesses  in our internal  controls,  and  therefore  there were no corrective
actions taken.

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<PAGE>
                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

The following exhibits are included with this registration statement filing.
Those  marked  with  an  asterisk  and  required  to  be  filed  hereunder,  are
incorporated  by  reference  and can be found in their  entirety in our original
Form SB-2 Registration Statement, filed under SEC File Number 333-124304, at the
SEC website at www.sec.gov:

      Exhibit No.                   Description
      -----------                   -----------
         3.1         Articles of Incorporation*
         3.2         Bylaws*
         31          Sec. 302 Certification of Principal Executive Officer
                     and Principal Financial Officer
         32          Sec. 906 Certification of Principal Executive Officer
                     and Principal Financial Officer

There were no reports filed on Form 8-K during the quarter ended July 31, 2006.

                                   SIGNATURES

Pursuant  to the  requirements  of  Section  13(a) or  15(d)  of the  Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

September 11, 2006                  Milk Bottle Cards Inc., Registrant


                                    By: /s/ Nicole Milkovich
                                       -----------------------------------------
                                       Nicole Milkovich, Chief Executive Officer


In  accordance  with the Exchange  Act, this report has been signed below by the
following  person on behalf of the  registrant  and in the capacities and on the
date indicated.

September 11, 2006                  Milk Bottle Cards Inc., Registrant

                                    By: /s/ Nicole Milkovich
                                       -----------------------------------------
                                       Nicole Milkovich, President, Secretary,
                                       Treasurer, Chief Executive Officer,
                                       Chief Financial Officer, and
                                       Principal Accounting Officer

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