United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


  [X]   Quarterly Report Pursuant to Section 13 or 15 (d) of the
          Securities and Exchange Act of 1934



 For the Quarter Ended                       Commission File Number

 February 28, 2001                                0-12423

ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
(Exact name of registrant as specified in its charter)


Nevada
                                            94-2906927
(state or other jurisdiction of             (I.R.S. Employer
 incorporation or organization)              Identification No.)


1801 Avenue of the Stars, Suite 635, Los Angeles, Ca 90067
(Address of principal executive offices)

Registrants telephone number, including area code:   (310) 552-0870


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 each of the registrants classes of
common stock, as of February 28, 2001 was  30,042,257 shares, all of one
class of $.00 par value Common Stock.

ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
FORM 10-Q
Quarter Ended February 28, 2000

                           TABLE OF CONTENTS

FINANCIAL INFORMATION                                               PAGE

Item 1-   Consolidated Financial Statements
          Consolidated Balance Sheets as of
          February 28, 2001 and August 31, 2000                     3

         Consolidated Statements of Operations
         for the three months ended February 28, 2001
         and February 28, 2000                                      4

         Consolidated Statements of Cash Flows
         for the three months ended February 28, 2001
         and February 28, 2000                                      6

         Notes to Consolidated Financial Statements               7,8

Item 2-  Managements Discussion and Analysis of Financial
         Condition and Results of Operations                     9-11

OTHER INFORMATION

Item 1-  Legal Proceedings                                       12

Item 2-  Changes in Securities                                   12

Item 3-  Defaults upon Senior Securities                         12

Item 4-  Submission of Matters to a Vote of Security Holders     12

Item 5-  Other Information                                       12

Item 6-  Exhibits and Reports on Form 8-K                        12


SIGNATURES                                                       13









ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
PART 1: FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEETS
AS OF February 28, 2001 AND AUGUST 31, 2000



                                 February 28           August 31,
                                  2001                  2000
                                (Unaudited)            (Note 1)

Non Current Assets             $ 5,153,814          $  5,137,301

Total Assets                   $ 5,153,814          $  5,137,301


Liabilities and Shareholders Equity

Current liabilities

Accounts and taxes payable     $     -                $ 51,052

Total current liabilities       $    -                $ 51,052

Commitments

Shareholders Equity

 Common Stock-no par value;
 50,000,000     shares authorized,
 31,142,257 issued and 30,042,257
 outstanding as of February 28, 2001
 and    August 31, 2000          1,333,229           1,552,349

Additional paid-in capital       6,283,149           6,219,443

Accumulated deficit-accumulated (2,462,564)          (2,685,543)

Total shareholders equity        5,183,814          $ 5,086,249

Total liabilities and
shareholders equity           $  5,183,814          $ 5,137,301


See Notes to Consolidated Financial Statements

ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED FEBRUARY 28, 2001 AND 2000
(UNAUDITED)


                                 Three Months         Three Months
                                  Ended                   Ended
                                  February 28,          February 28,
                                    2001                   2000

Net revenue                     $  -             $          -

Costs and expenses:

General and administrative         5,000                    -
  Depreciation and amortization       -                     -

Income (loss) from operations    $    -                     -

Other income (expense):

  Interest expense                    -                     -
  Loss on sale of fixed assets        -                     -
  Loss on sale of investments         -                     -
  Income from debt adjustment         -                     -
Total other income (expense)          -                     -


Income (loss) before taxes
 on income                        (5,000)                   -

Taxes on income                       -                     -

Net income (loss)                     -                     -

Net income (loss) per share         nil                    nil

Weighted average number of shares
  and share equivalents
  outstanding                    31,142,257             30,052,257

See Notes to Consolidated Financial Statements


ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED FEBRUARY 28, 2001 AND 2000
(UNAUDITED)



Increase (Decrease) in Cash and Cash Equivalents



                                    Three Months         Three Months
                                      Ended                Ended
                                    February 28,          February 28,
                                       2001               2000

Operating activities:

  Net income (loss)                  $    -                 -
  Adjustments to reconcile net loss
    to cash used in operating
    activities:
  Amortization expense                    -                 -
  Changes in operating assets and
     liabilities:
    Accounts receivable                   -                 -
    Inventories                           -                 -
    Accounts payable                      -                 -
Cash provided by (used in)
 operating activities                     -                 -
Investing activities:
   Investment in Fixed Assets             -                 -
Financing activities:
  Contribution by shareholder             -                 -
  Issuance of capital stock               -                 -
Cash provided by financing
 activities                               -                 -
Net increase (decrease) in
 cash and cash equivalents                -                 -
Cash and cash equivalents,
 beginning of period                      -                 -
Cash and cash equivalents,
 end of period                        $   -                 -




See Notes to Consolidated Financial Statements


ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FEBRUARY 28, 2001

Note 1 - Basis of Presentation


The accompanying consolidated 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-Q and Rule 10-01 of Regulation
S-X.  Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles
for complete financial statements.  In the opinion of management,
all adjustments considered necessary for a fair presentation have
been for the three months ended February 28, 2001 are not
necessarily indicative of the results that may be expected for
the year ended August 31, 2001.  For further information, refer
to the consolidated financial statements and footnotes thereto
included in the Company's Form 10-K for the year ended August
31, 2000 after taking into account subsequent 8-k filings.

Note 2 - Net Income (Loss) Per Share


Net income (loss) per share and common equivalent share is
computed using The weighted average number of shares outstanding
during each period.


Note 3- Mergers and Acquisitions

The Company acquired 100% ownership of Allied Entertainment Group
valued at historic cost of $2,000,000.  The Company issued 500,000
shares for this business. The Company has written down this
$2,000,000 figure to the amount of capital investment of $600,000,
since Allied may not have the value originally represented to the
Company.  In the Company's 10-K for 2000, this transaction was
accounted for as a purchase, with the results of operations of
the acquired entity included in the consolidated statement of income.
Refer to latest 8-k for possible litigation that may result from
misrepresentation made by the seller of Allied Entertainment Group.


ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FEBRUARY 28, 2001



Note 4 - Contributed Assets

Controlling interest in ALLIED ARTISTS ENTERTAINMENT GROUP, INC.,
a Nevada Corporation, and its predecessor (the "Company"), was
transferred from  Jen Investment Corporation to the following
entities:

1. Selective Entertainment                   3,250,000 shares
2. United Assurance Company, Ltd.            3,250,000 shares
3. Apple Juice Productions	               3,250,000 shares
4. International Synergy Corporation         3,250,000 shares
5. International Annuity Trust Corporation   3,250,000 shares
6. IAT Mortgage Bankers		               3,250,000 shares

As a result of the transfer of controlling interest, the above listed
companies  have irrevocably  transfered into the Company assets having a
value $5,000,000 as follows:

1.	Master Tapes: Value of $1,203,814 appraised by George L. (Sonny)
        Carter, Tape Librarian, MCA Records, Inc.

2.	Films:  Two motion pictures ready for production; value of
       $880,000 appraised by Dr. Philip Chamberlin of the Academy of
      Motion Picture Arts & Sciences.

3.	30,000 Dino Babies animation cels valued at $3,000,000 as
      appraised by Edward N. Okil, National Institute of Appraisers.
      A nominal value of $10 per cel is considered reasonable.



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ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
NOVEMBER 30, 2000

Item 2 - Managements Discussion and Analysis of Financial Condition
         and Results  of Operations or Plan of Operation


The following review concerns the three and nine month periods ended
February 28, 2001 and February 28, 2000, which should be read in
conjunction with the financial statements and notes thereto presented
in the Form 10-Q.

The information set forth in Management's Discussion and Analysis of
Financial Condition and Results of Operations below includes forward
looking statements within the meaning of Section 27A of the Securities
Act, and is subject to the safe harbor created by that section.
Factors that could cause actual results to differ materially from
these contained in the forward looking statements are set forth in
management's Discussion and Analysis of Financial Condition and
Results of Operations.

Plan of operation.

The Company has continued its efforts to acquire, merge with, and
enter into other forms of business combinations.

The television division has signed a production and distribution
deal with Apple Juice Production who have just completed pilots
for Kings Pawn a comedy series, and the Wherehouse of Music show
that features the top urban music artist and D.J.'s playing their
latest hits for a live studio audience.  The Company may ask the
shareholders for a vote to change the name of the company to
Apple Juice Productions due to the future litigation concerning
Allied Artists and due to the fact that the Apple Juice related
television is the focus of the Company at this time.

ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
NOVEMBER 30, 2000


Results of Operations Three Months Ended February 28, 2001
and February 28, 2000.


During the three months ended February 28, 2001, the Company generated
no revenues, while continuing to incur necessary operating expenses.



Item 2 - Managements Discussion and Analysis of Financial Condition and
                Results of Operations or Plan of Operation (Continued)


As stated above in the Plan of Operation, due to the nature of the Company's
activities, the Company's prospects for the future are dependent on a number
of variables which cannot be predicted.  Generally, after identifying a
potential business opportunity, the Company could incur significant costs
in evaluating the desirability of an acquisition or other form of business
combination. Should the Company determine to proceed with the business
combination, the transaction costs could be significant.  Thereafter,
results of operation would likely be materially affected by the business
acquired or merger with the Company.

Recent accounting pronouncements:  On March 3, 1997, the Financial Accounting
Standards Board (FASB) issued the Statement of Financial Accounting Standards
(SFAS) No. 128, Earning Per Share.  This pronouncement provides a different
method of calculating earnings per share than is currently used in accordance
with Accounting Principles Board Opinion No. 15, Earnings Per Share.  SFAS No.
128 provides for the calculation of Basic and Diluted earnings per share.
Basic earnings per share includes no dilution and income available to common
shareholders by the weighted average number of common shares outstanding for
the period.  Diluted earnings per share reflects the potential dilution of
securities that could share in the earnings of an entity, similar to fully
diluted earnings per share.  The Company adopted SFAS No. 128 in the fiscal
year 1998 and its implementation is not expected to have a material effect
on the financial statements.

In June 1997, FASB issued SFAS No. 130, Reporting Comprehensive Income which
establishes standards for reporting and display of comprehensive income, as
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 required 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 displayed with the same prominence as other
financial statements.

Also, in June 1997, FASB issued SFAS No. 131, Disclosures about Segments of
an Enterprise and Related Information which supersedes SFAS No. 14, Financial
Reporting for Segments of a Business Enterprise.  SFAS No.131 establishes
standards for the way that public companies report information about operating
segments in annual financial statements and required reporting of selected
information about operating segments in interim financial statements issued to
the public.  It also establishes standard for disclosure regarding products
and services, geographic areas and major customer.  SFAS No. 131 defines
operating segments as components of a company about which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources in assessing performance

Both SFAS No. 130 and 131 are effective for financial statements for periods
beginning after December 15, 1997 and require comparative information for
earlier years to be restated.  Because of the recent issuance of these
standards, management has been unable to fully evaluate the impact, if any, they
may have on future financial statement disclosures.  Results of operations and
financial position, however, will be unaffected by implementation of these
standards.





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ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
FEBRUARY 28, 2001


PART II Other Information

Item 1        Legal Proceedings

              None. However, refer to latest 8-k for potential litigation.

Item 2        Change 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

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ALLIED ARTISTS ENTERTAINMENT GROUP, INC.






SIGNATURES


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


ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
(Registrant)



Date:  April 13, 2001     By: __________________/s/__________________

                            Jim Watkins, Secretary


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