--------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                   FORM 10-QSB

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                For the quarterly period ended December 31, 2000

                                       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 No. 0-15260

                                Biorelease Corp.
         ---------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

                  Delaware                                88-0218411
     ------------------------------              -----------------------------
    (State or other jurisdiction of               (Internal Revenue Service
     incorporation or organization)              Employer  Identification No.)

                 340 Granite St. Suite 200, Manchester, NH 03102
                -------------------------------------------------
                (Address of principal Executive offices Zip Code)


                                 (603) 641-8443
                 ----------------------------------------------
                 Issuer's telephone number, including area code

         Former name,  former  address and formal  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

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the last practicable  date,  12,124,238 shares of
common stock, par value $.01 per share as of February 21, 2001.

       -----------------------------------------------------------------

         Transitional Small Business Disclosure Format (Check One) Yes    No  X
                                                                      ---    ---

                                     1 of 12

<PAGE>


                                BIORELEASE CORP.


                                      INDEX

PART I.  FINANCIAL INFORMATION
<TABLE>
<CAPTION>
                                                                                                       Page
                                                                                                       Number
                                                                                                       ------
<S>                                                                                                      <C>
Item 1.    Financial Statements .........................................................................3

           Balance sheet as of December 31, 2000 (unaudited) and
           consolidated balance sheet at June 30, 2000...................................................3

           Consolidated Statements of Operations for the Three Months and Six Months Ended
           December 31, 2000 (unaudited) and 1999 (unaudited), and from October 20, 1989 (inception)
           to December 31, 2000 (unaudited)..............................................................4

           Consolidated  Statements  of Cash  Flows  for the  Six  Months  Ended
           December 31, 2000 (unaudited) and 1999 (unaudited),  and from October
           20, 1989 (inception) to December 31, 2000 (unaudited) ........................................5

           Notes to Unaudited Consolidated Financial Statements .........................................7

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operation..........8

PART II.   OTHER INFORMATION

Item 1.    Legal Proceedings.............................................................................9

Item 2.    Changes in Securities ........................................................................9

Item 3.    Defaults Upon Senior Securities ..............................................................9

Item 4.    Submission of Matters to a Vote of Security Holders...........................................9

Item 5.    Other Information.............................................................................9

Item 6.    Exhibits and Reports on Form 8-K. ............................................................9
</TABLE>


                                     2 of 12

<PAGE>


PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statement

                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                                 BALANCE SHEETS
                       December 31, 2000 and June 30, 2000

<TABLE>
<CAPTION>
                                                                                      December 31,                       June 30,
                                                                                         2000                              1999
                                                                                      ------------                       --------
                                                                                       (Unaudited)                    (Consolidated)
                               ASSETS

<S>                                                                      <C>                                <C>
Current Assets:
   Cash                                                                  $                       940        $                   502
   Accounts receivable                                                                             -                              -
   Inventories                                                                                     -                         16,012
   Other receivables                                                                          28,549                         29,447
   Prepaid expenses and other current assets                                                       -
                                                                                   -----------------                ---------------
Total current assets                                                                          29,489                         45,961
                                                                                   -----------------                ---------------
Equipment and leasehold improvements, net                                                         39                          1,734
                                                                                   -----------------                ---------------
Other assets:
   Intangible assets, net                                                                          -                              -
   Investments in related party securities                                                     9,131                              -
   Other non current assets                                                                        -
                                                                                   -----------------                ---------------
Total assets                                                             $                    38,659        $                47,695
                                                                                   =================                ===============

         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCIES)
Current liabilities:

   Notes payable                                                         $                         -        $                     -
   Accounts payable                                                                            1,034                         14,792
   Accrued expenses                                                                           10,000                         17,000
   Notes payable stockholders,current                                                              -                              -
   Deferred Income                                                                                 -                              -
   Other current liabilities                                                                   5,000                          5,000
                                                                                   -----------------                ---------------
   Total current liabilities                                                                  16,034                         36,792
   Notes payable stockholders, long term                                                           -                              -
   Notes payable others, long term                                                                 -                              -
   Other liabilities                                                                               -                          1,000
                                                                                   -----------------                ---------------
Total liabilities                                                                             16,034                         37,792
                                                                                   -----------------                ---------------
Stockholders' equity (Deficiency):
     Common stock of $.01 par value,  50,000,000 shares  authorized,  12,124,238
     and 12,124,238 issued and 12,124,238 and 12,124,238 Outstanding at December
     31, 2000 and June 30, 2000                                                              121,242                        121,242

Additional paid-in capital                                                                 6,983,979                      9,114,115
Development stage accumulated deficit                                                     (7,082,596)                    (9,212,078)
                                                                                   -----------------                ---------------
                                                                                              22,625                         23,279
   Less: Deferred offering costs                                                                   -                        (13,376)
                                                                                   -----------------                ---------------
Total Stockholder's Equity (Deficiencies)                                                     22,625                          9,903
                                                                                   -----------------                ---------------
Total liabilities and stockholders' equity (deficiencies)                $                    38,659        $                47,695
                                                                                   =================                ===============


The  accompanying  notes  are an  integral  part of the  consolidated  financial statements.
</TABLE>



<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENTS OF OPERATIONS

      For the Three Months and Six Months Ended December 31, 2000 and 1999,
          and the Cumulative Period from Inception to December 31, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                                       Inception
                                             Three Months Ended December 31,      Six Months Ended December 31,   (October 20, 1989)
                                             -------------------------------      -----------------------------           To
                                                  2000              1999               2000             1999       December 31, 1999
                                                  ----              ----               ----             ----       -----------------
                                              (Unaudited)       (Unaudited)        (Unaudited)      (Unaudited)       (Unaudited)
<S>                                         <C>               <C>                <C>              <C>
Revenues                                    $        6,060    $           -      $       14,315   $                 $     588,816
Cost of goods sold                                     353                -               2,698       (      )           (31,251)
                                               -----------          -------         -----------      ---------        -----------
Gross profit                                         5,707                -              11,617              -            557,565
Costs and expenses:
   Research and development                              -                -                   -              -        (2,558,041)
   Purchased technology                                  -                -                   -              -          (690,000)
   General and administrative income (expense)       4,451          (9,670)             (1,644)       (15,307)        (4,335,479)
   Biotech selling expenses                              -                -                   -              -          (601,116)
                                               -----------          -------         -----------      ---------        -----------
        Total costs and expenses                    4,4518          (9,670)             (1,644)       (15,307)        (8,184,636)
                                               -----------          -------         -----------      ---------        -----------
   (Loss)/Gain from operations                      10,158          (9,670)               9,973       (15,307)        (7,627,071)
                                               -----------          -------         -----------      ---------        -----------
   Other Income (Costs):
      Interest, net                                      -                -                   -              -             66,824
      Lease commitment costs                             -                -                   -              -          (315,000)
      Litigation costs                                   -                -                                  -           (99,242)
      Offering costs                                (1,697)               -            (10,441)              -          (346,887)
      Option compensation                                -                -                   -              -          (219,375)
      Other income (cost)                                -           19,685                             19,685             31,832
      Realized loss for decline in value
        of investment                           (3,659,141)               -          (3,659,141)             -         (5,159,141)
     Gain on sale of assets                          2,133                -               2,133              -             64,748
     Income recognized on indemnified                    -                -                   -              -            241,636
      Income recognized on settlements                                (821)                   -          (821)            372,555
                                               -----------          -------         -----------      ---------        -----------
Total other income (cost)                      (3,658,705)           18,864          (3,667,449)        18,864        (5,362,050)
                                               -----------          -------         -----------      ---------        -----------
</TABLE>

                                    4 of 12
<PAGE>
<TABLE>
<CAPTION>

<S>                                         <C>               <C>                <C>              <C>
Gain (loss) before provision for (benefit
Provision for income taxes                               -                -                   -              -            343,873
                                               -----------       ----------         -----------     ----------       ------------
Gain (loss) before cumulative effect of        (3,648,547)            9,194         (3,657,476)          3,557       (13,332,994)
Cumulative effect of change in accounting                -                -                   -            -              463,440
                                               -----------       ----------         -----------     ----------       ------------
Net gain (loss)                             $  (3,648,547)    $       9,194      $  (3,657,476)   $      3,557      $(12,869,554)
                                               ===========       ==========         ===========     ==========       ============
Weighted average shares                        13,634,058        13,654,858          13,664,458     13,654,858          8,563,373
Basic and fully diluted loss per share      $        (.27)    $      (0.00)      $      ($0.27)   $    ($0.00)      $     ($1.46)

The  accompanying  notes  are an  integral  part of the  consolidated  financial statements.

</TABLE>



                                    5 of 12
<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
             For the Six Months Ended December 31, 2000 and 1999 and
            the Cumulative Period from Inception to December 31, 2000
                                   (Unaudited)

                                  ------------
<TABLE>
<CAPTION>

                                                                                                          Inception
                                                                           Six Months Ended          (October 20, 1989)
                                                                             December 31,              to December 31,
                                                                        1999               1999              2000
                                                                        ----               ----              ----
<S>                                                               <C>                      <C>             <C>
Cash flows from operating activities:
Net (loss)/Gain                                                   $(3,657,476)             $ 3,557         $(12,869,554)
   Adjustments to reconcile net loss to net cash used in
     Depreciation and amortization                                         314                 726              285,929
     Cumulative effect of change in accounting principle                     -                   -             (463,440)
     Recognized loss on investment                                   3,659,141                   -            5,159,141
     (Gain) Loss on sale of assets                                     (2,133)                   -             (40,836)
     Loss on extinguishment of debt                                          -                   -               42,000
     Common Stock issued in exchange for
         Purchased technologies                                              -                   -              605,000
     Common Stock issued in exchange for
         services rendered                                                   -                   -              128,453
     Common stock options issued in exchange of
         services rendered                                                   -                   -               52,300
     Amortization of unearned compensation                                   -                   -              140,625
     Re-pricing of A Warrants                                                -                   -               78,750
   (Increase) Decrease in current assets:

     Accounts Receivable                                                     -                   -                    -
     Inventories                                                        16,012                   -                    -
     Other receivables                                                     898            (19,685)             (28,549)
     Prepaid expenses and other current assets                               -                   -                  360
     Deferred tax asset                                                      -                   -              463,440
     Related party securities                                          (9,131)                                  (9,131)
     Other non-current assets                                                -                   -                    -
   Increase (Decrease) in current liabilities:

     Accounts payable                                                 (13,758)              12,876               71,985
     Accrued expenses                                                  (7,000)             (4,695)               17,468
     Other current liabilities                                               -                   -                5,000
     Other liabilities                                                 (1,000)             (7,200)                    -
                                                                     -----------          --------         ------------
Net cash used in operating activities                                $(14,133)           $(14,421)         $(6,361,059)
                                                                     -----------          --------         ------------

The  accompanying  notes  are an  integral  part of the  consolidated  financial statements.

</TABLE>


                                    6 of 12
<PAGE>


                                BIORELEASE CORP.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                      CONSOLIDATED STATEMENT OF CASH FLOWS
             For the Six Months Ended December 31, 2000 and 1999 and
            the Cumulative Period from Inception to December 31, 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                        Inception
                                                                          Three Months Ended        (October 20, 1989)
                                                                             December 31,            To December 31,
                                                                        2000               1999               2000
                                                                        ----               ----               ----
<S>                                                                   <C>                <C>               <C>
Cash flows from investing activities:
   Purchase of collateralized mortgage obligations                           -                   -         (1,000,000)
   Proceeds from collateralized mortgage obligations                         -                   -           1,000,000
   Purchase of fixed assets                                                  -                   -           (333,187)
   Purchase of intangible assets                                             -                   -           (105,205)
   Proceeds from sale of assets                                         14,571          (        -)            204,313
                                                                      --------           ---------           ---------
Net cash used in investing activities                                   14,571          (        -)          (234,079)
                                                                      --------           ---------           ---------
Cash flows from financing activities:
   Advances from and amounts due to
       Stockholders                                                          -                   -             594,385
   Payments of advances from stockholders                                    -                   -           (159,975)
   Notes receivable                                                          -                   -                   -
   Notes payable                                                             -                   -                   -
   Issuance of common stock, net                                             -              12,000           2,153,868
   Payment of deferred offering costs                                        -              (7,459)           (13,376)
   Purchase of treasury stock                                                -                   -            (10,000)
   Re-capitalization                                                         -                   -           4,031,176
                                                                      --------           ---------           ---------
Net cash provided by investing activities                                    -               4,541           6,596,078
                                                                      --------           ---------           ---------
Net increase (decrease) in cash                                            438              (9,880)                940
Cash at beginning of period                                                502              12,232
                                                                      --------           ---------           ---------
Cash at end of period                                                 $    940           $   2,352           $     940
                                                                      ========           =========           =========

The accompanying notes are an integral part of the consolidated financial statements.


Supplemental disclosure of non-cash transactions:

Cash paid for interest                                                       -                                   7,752

Issuance of common stock for subscription receivable                         -                  -               50,000

Liabilities repaid through issuance of common stock                          -                  -              652,731

Non-marketable security acquired through the issuance                        -                  -            1,500,000
   Of common stock
</TABLE>

                                    7 of 12
<PAGE>


                                BIORELEASE CORP.
                          (A DEVELOPMENT STAGE COMPANY)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
               FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 and 1999
      AND CUMULATIVE FROM INCEPTION (OCTOBER 20, 1989) TO DECEMBER 31, 2000

ITEM 1.    Basis of presentation

           The accompanying  unaudited  consolidated  financial  statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim financial  information and with the instructions to Form 10-QSB and Rule
310 of Regulation S-B.  Accordingly,  they do not include all of the information
and footnotes required by generally accepted accounting  principles for complete
consolidated  financial  statements and should be read in  conjunction  with the
Company's audited  consolidated  financial statements at and for the fiscal year
ended June 30, 2000. In the opinion of management,  all adjustments  (consisting
only of normal recurring accruals)  considered necessary for a fair presentation
have been included. Operating results for the six months ended December 31, 2000
are not necessarily  indicative of the results that may be expected for the year
ended June 30, 2001.

                  At December  31, 2000 the Company  transferred  sixty  percent
(60%) of the stock it held in Biorelease  Technologies,  Inc.  (the  Subsidiary)
under provisions of an Asset Purchase  Agreement dated April 1999. Prior to that
date the Company owned  approximately  ninety percent (90%) of the  subsidiaries
common stock.  At December 31, 2000 the  statement of operations  and cash flows
through December 31, 2000 include the consolidated operations of Biorelease Corp
and its Subsidiary. The accompanying balance sheet at December 31, 2000 includes
only the assets and liabilities of Biorelease Corp at December 31, 2000.

         Future operations will be only those of Biorelease Corp.

ITEM 2   Investment in related parted securities

         Under the terms of the Asset  Purchase  Agreement  an option to acquire
sixty percent (60%) of the Company's subsidiary was exercised effective December
31, 2000. Of the 4,582,122 shares of the subsidiaries  common stock owned by the
Company,  2,749,373  shares were sold to an entity that is  controlled by family
members  of the  Company's  President.  A  onetime  charge to the  statement  of
operations  in  the  amount  of  $3,659,141  represents  the  original  cost  of
Biorelease's investment in the subsidiary.  The remaining basis of the 1,832,749
shares of common  stock of the  subsidiary,  Biorelease  Technology,  Inc.,  are
computed utilizing the equity method of accounting.



                                    8 of 12
<PAGE>


ITEM 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Results of Operations

           The  following   discussion   includes  the  business  of  Biorelease
Technologies,  Inc.  (the  "Subsidiary"),   since  the  Company,  prior  to  its
acquisition of the Subsidiary,  had no operations other than raising capital and
searching for an acquisition  candidate (i.e., the Subsidiary).  Where relevant,
all numbers retroactively take into account the acquisition of the Subsidiary by
the Company.

Three Months Ended December 31, 2000 and 1999

           For the three  months  ended  December  31,  2000,  the  Company  had
revenues of $6,060,  cost of goods sold of $353, a reduction  of  administrative
expenses of $4,451, offering costs associated with a terminated merger agreement
with POLAR of $1,697, a realized loss for the decline in value of its investment
in the subsidiary of $3,659,141,  a gain in the sale of assets of $2,133 therein
yielding  a net loss of  $3,648,547  as  compared  with the three  months  ended
December  31, 1999 in which the Company had  revenues of $0, costs of goods sold
of $0, general and administrative  expenses of $9,670,  other income of $19,685,
costs on settlements  of $821 and no income taxes,  resulting in a net income of
$9,194.

Six Months Ended December 31, 2000 and 1999

         For the six months ended  December 31, 2000 the Company had revenues of
$14,315,  cost of goods sold of $2,698, net  administrative  expenses of $1,644,
offering costs of $10,441, a realized loss for decline in value of investment of
$3,659,141,  a gain on sale of assets of $2,133 and no income taxes resulting in
a net loss of $3,657,476 as compared with the six months ended December 31, 1999
wherein  the  Company  had no  revenues,  no cost of  goods  sold,  general  and
administrative  expenses  of  $15,307,  other  income  of  $19,685,  a  loss  on
settlements  of $821 and no income  taxes  resulting  in an  income  of  $3,557.
Without  the one time charge off of the  decline in value of  investment  in the
subsidiary totaling $3,659,141 the Company would have a net income of $1,665 for
the six months ended December 31, 2000.

Inception to December 31, 1999

           From October 20, 1989, the initial date of the Subsidiary's activity,
through December 31, 2000, the Company,  including the Subsidiary,  had revenues
of  $588,816,  cost of goods sold of  $31,251,  selling  expenses  of  $601,116,
research and developmental expenses of $2,558,041, purchased technology costs of
$690,000, general and administrative expenses of $4,335,479,  other costs in the
aggregate of $5,362,050 including a charge of realized loss for decline in value
of investments of $5,159,141,  income taxes of $343,873 and a cumulative  effect
of change in accounting  principle of $463,440  thereby  yielding an accumulated
net loss of $12,869,554.

Liquidity and Capital Resources

           From  inception  until  the  closing  of  the   Reorganization,   the
Subsidiary's  primary  source  of  funds  has  been the  proceeds  from  private
offerings  of its Common and  Preferred  Stock.  Since the  Reorganization,  the
primary sources of current capital have been the Company's funds and revenues.

Dividend Policy

           The Company has not declared or paid any cash dividends on its common
stock since its inception and does not anticipate the  declaration or payment of
cash  dividends  in the  foreseeable  future.  The  Company  intends  to  retain
earnings,  if any, to finance the  development  and  expansion of its  business.
Future  dividend  policy  will be  subject  to the  discretion  of the  Board of
Directors and will be  contingent  upon future  earnings,  if any, the Company's
financial condition, capital requirements, general business conditions and other
factors.  Therefore,  there can be no assurance  that dividends of any kind will
ever be paid.


                                    9 of 12
<PAGE>


Effect of Inflation

Management  believes  that  inflation  has  not  had a  material  effect  on its
operations for the periods presented.























                                    10 of 12
<PAGE>



                                     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 Securities Holders

              None (See Item 5)

Item 5.       Other Information

              On February 7, 2001 the Company  announced the signing of a letter
              of intent  pursuant to which  Biorelease  would reverse merge with
              Electric Energy Storage Corp., a Nevada corporation  ("EES").  The
              terms of the  agreement  call for issuing  enough shares of common
              stock  to  transfer  control  of  Biorelease  to  EES  management.
              Thereafter,  Biorelease is to reverse split its outstanding common
              shares on a 1 for 12 basis.  After the reverse  stock  split,  and
              upon the  issuance of common  shares to the  shareholders  of EES,
              Biorelease  would  then  have  approximately  38,900,000  share of
              common stock issued and outstanding,  of which  35,800,000  shares
              would be owned by EES shareholders. Biorelease extended the period
              for due diligence and the signing of a definitive  agreement by an
              additional two weeks until  March 3,  2001 in  order to more fully
              evaluate the EES technologies.

              Holders  of  record  on March 31,  2001  will  participate  in the
              reverse  merger and be eligible for spin off shares of  Biorelease
              Technology, Inc. presently held by the Company

              On  January  30,  2001 the  Company  filed  Form  S-8  registering
              5,800,000  shares of its common stock for services  renders by the
              Company's officers, directors and counsel.

Item 6.       Exhibits and Reports on form 8-K.

              None.




                                    11 of 12
<PAGE>



SIGNATURE

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

           BIORELEASE CORP.




February 21, 2001          By:  /s/ R. Bruce Reeves
                                --------------------------------------
                                R. Bruce Reeves, President and
                                Principal Financial Officer
















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