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

        May 31, 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 May 31, 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 May 31, 2000

                                                          TABLE OF CONTENTS

FINANCIAL INFORMATION                                               PAGE

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

         Consolidated Statements of Operations
         for the three months ended May 31, 2001
         and May 31, 2000                       	         4

         Consolidated Statements of Cash Flows
         for the three months ended May 31, 2001
         and May 31, 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 May 31, 2001 AND AUGUST 31, 2000



                                 May 31           August 31,
                                  2001                  2000
                                (Unaudited)            (Note 1)

Assets                         $ 5,057,656          $  7,137,301

Total Assets                   $ 5,057,656          $  7,137,301


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 May 31, 2001
 and    August 31, 2000         1,552,349           1,552,349

Additional paid-in capital       6,219,449           8,219,443

Accumulated deficit-accumulated (2,714,142)          (2,685,543)

Total shareholders equity        5,057,656          $ 7,086,249

Total liabilities and
shareholders equity           $  5,057,656          $ 7,137,301


See Notes to Consolidated Financial Statements

ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2001 AND 2000
(UNAUDITED)


                                 Three Months         Three Months
                                  Ended                   Ended
                                  May 31,          May 31,
                                    2001                   2000

Net revenue                     $  -             $        134,068

Costs and expenses:

General and administrative        (28,599)                 438,897
  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                        ( 28,599)               (304,829)

Taxes on income                       -                     -

Net income (loss)                 ( 28,599)                 -

Net income (loss) per share        $(0.009)                 $(0.010)

Weighted average number of shares
  and share equivalents
  outstanding                    31,142,257             30,042,257

See Notes to Consolidated Financial Statements


ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MAY 31, 2001 AND 2000
(UNAUDITED)



Increase (Decrease) in Cash and Cash Equivalents



                                    Three Months         Three Months
                                      Ended                Ended
                                    May 31,          May 31,
                                       2001               2000

Operating activities:

  Net income (loss)                  $(28,599)              $134,068
  Adjustments to reconcile net loss
    to cash used in operating
    activities:
  Amortization expense                    -                 -
  Changes in operating assets and
     liabilities:
    Accounts receivable                   -               (161,237)
    Inventories                           -                (47,439)
    Accounts payable                      -                131,808
Cash provided by (used in)
 operating activities                     -                 57,200
Investing activities:
   Investment in Fixed Assets             -               (400,000)
Financing activities:
  Contribution by shareholder             -                400,000
  Issuance of capital stock               -                 14,021
Cash provided by financing
 activities                               -                414,021
Net increase (decrease) in
 cash and cash equivalents                -                 71,221
Cash and cash equivalents,
 beginning of period                    71,221                   -
Cash and cash equivalents,
 end of period                        $  42,622           $ 71,221




See Notes to Consolidated Financial Statements


ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MAY 31, 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 May 31, 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 off this $2,000,000 figure, 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)
MAY 31, 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  transferred 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
May 31, 2001 and May 31, 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.


ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
NOVEMBER 30, 2000


Results of Operations Three Months Ended May 31, 2001 and May 31, 2000.


During the three months ended May 31, 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.

ALLIED ARTISTS ENTERTAINMENT GROUP, INC.
MAY 31, 20001

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

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

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.
MAY 31, 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:  June 15, 2001     By: __________________/s/__________________

                            James Watkins, Secretary


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