| OMB                  APPROVAL                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| OMB                  Number 3235-0416Expires:                  March 31, 2007Estimated                  average burdenhours                  per response........182 |

**UNITED      STATES 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,                2006** |
|--------|------------------------------------------------------------------------------------|

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

|   | For                the transition period from ____________ to                ________________ |
|--------|-----------------------------------------------------------------------------------------------|

| ** EXPRESS                SYSTEMS CORP.**               |
|--------------------------------------------------------------|
|  (Name                of small business in its charter) |

| Nevada                                                                               |  333-107002                        |  91-1918324                                                      |
|--------------------------------------------------------------------------------------|-----------------------------------------|-----------------------------------------------------------------------|
| (State                or other jurisdiction of                incorporation)         | (Commission                File Number) | (I.R.S.                Employer Identification                Number) |
|                                                                                 |                                    |                                                                  |
|  114                W. Magnolia Street, Suite 446, Bellingham                WA |                                    |   98225                                                     |
|  (Address                of principal executive                offices)         |                                    | (Zip                Code)                                        |

| Registrant's                telephone number, including area code:  (800)                661-7830 |
|--------------------------------------------------------------------------------------------------------|

**APPLICABLE          ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS          DURING THE PRECEDING FIVE YEARS**

**APPLICABLE          ONLY TO CORPORATE ISSUERS **

----

**SEC          2334 (11-06)**

**Persons          who are to respond to the collection of information contained in this form          are          not required to respond unless the form displays a currently valid OMB          control          number. **

----

**Express      Systems Corporation**

**Form      10-QSB**

**Index**

|  **Part              I.**  |  **Financial              Information**                                                    |  **Page** |
|---------------------------------|-------------------------------------------------------------------------------------------------|----------------|
|                            |                                                                                            |           |
|  Item              1.      | Financial              Statements                                                               |  F-1      |
|                            |                                                                                            |           |
|  Item              2.      |  Management’s              Discussion and Analysis or Plan of              Operation |  1        |
|                            |                                                                                            |           |
|  Item              3.      |  Controls              and Procedures                                                      | 7              |
|                            |                                                                                            |           |
|  **Part              II.** |  **Other              Information**                                                        | 9              |
|                            |                                                                                            |           |
|  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              |
|                            |  Signatures                                                                                | 10             |
|                            |                                                                                            |           |
|                            |  **Certifications**                                                                        |           |
|  Exhibit              31.1 |  Certification              of Chief Executive              Officer                        |           |
|  Exhibit              31.2 |  Certification              of Principal Financial              Officer                    |           |
|  Exhibit              32.1 |  Certificate              of Chief Executive              Officer                          |           |
|  Exhibit              32.2 |  Certificate              of Principal Financial              Officer                      |           |

----

**EXPRESS        SYSTEMS CORPORATION**

**AND        SUBSIDIARY**

**(A        Development Stage Company)**

**CONSOLIDATED        BALANCE SHEETS**

| **ASSETS**                                                                               |   | **December                        31,****2006** |   |   | **March                      31,****2006** |   |
|------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                                                                     |   | (Unaudited)                           |   |   | (Audited)                                  |   |
|                                                                                     |   |                                            |   |   |                                       |   |
|                                                                                     |   |                                            |   |   |                                       |   |
| **CURRENT                      ASSETS:**                                                 |   |                                            |   |   |                                       |   |
| Cash                      and cash equivalents                                           | $      | 21,234                                          |   | $      | 7,925                                      |   |
| Trade                      accounts receivable                                           |   | -                                               |   |   | 52,455                                     |   |
| Prepaid                      expenses                                                    |   | 9,412                                           |   |   | 1,138                                      |   |
| Interest                      receivable                                                 |   | 1,400                                           |   |   | 1,400                                      |   |
|                                                                                     |   |                                            |   |   |                                       |   |
|  *Total                      current assets*                                        |   | 32,046                                          |   |   | 62,918                                     |   |
|                                                                                     |   |                                            |   |   |                                       |   |
| **EQUIPMENT                      AND SOFTWARE, net of accumulated depreciation**         |   |                                            |   |   |                                       |   |
|  **depreciation                      of $5,072 and $4,901 respectively**            |   | 623                                             |   |   | 1,136                                      |   |
|                                                                                     |   |                                            |   |   |                                       |   |
| ** *****TOTAL                      ASSETS***                                        | **$**  | **32,669**                                      |   | **$**  | **64,054**                                 |   |
|                                                                                     |   |                                            |   |   |                                       |   |
|                                                                                     |   |                                            |   |   |                                       |   |
| **LIABILITIES                      AND SHAREHOLDERS' EQUITY**                            |   |                                            |   |   |                                       |   |
|                                                                                     |   |                                            |   |   |                                       |   |
| **CURRENT                      LIABILITIES:**                                            |   |                                            |   |   |                                       |   |
| Accounts                      payable and accrued liabilities                            | $      | 77,147                                          |   | $      | 36,312                                     |   |
| Due                      to related parties                                              |   | 27,442                                          |   |   | 1,416                                      |   |
|                                                                                     |   |                                            |   |   |                                       |   |
|  *Total                      current liabilities*                                   |   | 104,589                                         |   |   | 37,728                                     |   |
|                                                                                     |   |                                            |   |   |                                       |   |
| **SHAREHOLDERS'                      EQUITY (DEFICIT) (Note 2):**                        |   |                                            |   |   |                                       |   |
| Common                      stock, $.001 par value, 25,000,000 shares authorized,        |   |                                            |   |   |                                       |   |
| 20,110,400                      shares and 6,110,000 shares issued and outstanding as of |   |                                            |   |   |                                       |   |
| December                      31, 2006 and March 31, 2006 respectively.                  |   | 20,110                                          |   |   | 6,110                                      |   |
| Additional                      paid-in capital                                          |   | 618,816                                         |   |   | 492,816                                    |   |
| Deficit                      accumulated during the development stage                    |   | (710,846                                        | )      |   | (472,600                                   | )      |
|                                                                                     |   |                                            |   |   |                                       |   |
|  *Total                      shareholders' equity (deficit)*                        |   | (71,920                                         | )      |   | 26,326                                     |   |
|                                                                                     |   |                                            |   |   |                                       |   |
| ** *****TOTAL                      LIABILITIES AND SHAREHOLDERS' EQUITY***          | **$**  | **32,669**                                      |   | **$**  | **64,054**                                 |   |
|                                                                                     |   |                                            |   |   |                                       |   |

----

Table          of Contents

**EXPRESS        SYSTEMS CORPORATION**

**AND        SUBSIDIARY**

**(A        Development Stage Company)**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

|                                                  |   | **Three                            Months****Ended                          December 31,****2006** | ** ** | ** ** | **Three                          Months****Ended                        December 31,****2005** | ** ** | ** ** | **Nine Months****Ended                        December 31,****2006** |   |
|-------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|------------|------------|------------------------------------------------------------------------------------------------|------------|------------|---------------------------------------------------------------------------|--------|
|                                                  |   | (Unaudited)                                                                                   |       |       | (Unaudited)                                                                                    |       |       | (Unaudited)                                                               |   |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **REVENUE**                                           | $      | 6,000                                                                                              |       | $          | 9,232                                                                                          |       | $          | 6,791                                                                     |   |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **EXPENSES:**                                         |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| Advertising                                           |   | -                                                                                                  |       |       | 5,972                                                                                          |       |       | -                                                                         |   |
| Bad                        debts                      |   | 52,455                                                                                             |       |       | -                                                                                              |       |       | 52,455                                                                    |   |
| Consulting                                            |   | 15,173                                                                                             |       |       | 12,000                                                                                         |       |       | 21,353                                                                    |   |
| Depreciation                        and amortization  |   | 171                                                                                                |       |       | -                                                                                              |       |       | 513                                                                       |   |
| Filing                        fees                    |   | 8,616                                                                                              |       |       | -                                                                                              |       |       | 9,490                                                                     |   |
| General                        and administrative     |   | 38,847                                                                                             |       |       | 3,983                                                                                          |       |       | 41,304                                                                    |   |
| Management                        fee                 |   | -                                                                                                  |       |       | -                                                                                              |       |       | 1,000                                                                     |   |
| Professional                        fees              |   | 81,342                                                                                             |       |       | 20,956                                                                                         |       |       | 90,126                                                                    |   |
| Travel                                                |   | 28,796                                                                                             |       |       | 4,000                                                                                          |       |       | 28,796                                                                    |   |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| ***Total                        operating expenses*** |   | 225,400                                                                                            |       |       | 46,911                                                                                         |       |       | 245,037                                                                   |   |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| ***Loss                        from operations***     |   | (219,400                                                                                           | )          |       | (37,679                                                                                        | )          |       | (238,246                                                                  | )      |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **OTHER                        INCOME (EXPENSE):**    |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| Interest                        income                |   | -                                                                                                  |       |       | -                                                                                              |       |       | -                                                                         |   |
| Loss                        on disposal of assets     |   | -                                                                                                  |       |       | -                                                                                              |       |       | -                                                                         |   |
| Total                        other income (expense)   |   | -                                                                                                  |       |       | -                                                                                              |       |       | -                                                                         |   |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **NET                        LOSS**                   | **$**  | **(219,400**                                                                                       | **)**      | **$**      | **(37,679**                                                                                    | **)**      | **$**      | **(238,246**                                                              | **)**  |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **BASIC                        AND DILUTED LOSS PER** |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **COMMON                        SHARE**               |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| Net                        loss per common share      | **$**  | **(0.01**                                                                                          | **)**      | **$**      | **(0.01**                                                                                      | **)**      | **$**      | **(0.02**                                                                 | **)**  |
|                                                  |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **WEIGHTED                        AVERAGE SHARES**    |   |                                                                                               |       |       |                                                                                           |       |       |                                                                      |   |
| **OUTSTANDING**                                       |   | **19,554,252**                                                                                     |       |       | **5,120,400**                                                                                  |       |       | **10,774,844**                                                            |   |

----

Table          of Contents

**EXPRESS        SYSTEMS CORPORATION**

**AND        SUBSIDIARY**

**(A        Development Stage Company)**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

|                                            |   |  ** Nine                      Months**** Ended December                    31,****2005** |   |   | **Period                  from Inception (July 9, 1998) to December 31,                  2006** |   |
|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|
|                                            |   | (Unaudited)                                                                                        |   |   | (Unaudited)                                                                                     |   |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| **REVENUE**                                     | $      | 24,875                                                                                                  |   | $      | 366,383                                                                                         |   |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| **EXPENSES:**                                   |   |                                                                                                    |   |   |                                                                                            |   |
| Advertising                                     |   | 7,231                                                                                                   |   |   | 48,791                                                                                          |   |
| Bad                  debts                      |   | -                                                                                                       |   |   | 101,005                                                                                         |   |
| Consulting                                      |   | 45,945                                                                                                  |   |   | 354,975                                                                                         |   |
| Depreciation                  and amortization  |   | 390                                                                                                     |   |   | 5,414                                                                                           |   |
| Filing                  fees                    |   | -                                                                                                       |   |   | 23,885                                                                                          |   |
| General                  and administrative     |   | 45,254                                                                                                  |   |   | 168,411                                                                                         |   |
| Management                  fee (Note 3)        |   | 3,000                                                                                                   |   |   | 31,100                                                                                          |   |
| Professional                  fees              |   | 67,330                                                                                                  |   |   | 288,406                                                                                         |   |
| Travel                                          |   | 7,000                                                                                                   |   |   | 43,252                                                                                          |   |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| ***Total                  operating expenses*** |   | 176,150                                                                                                 |   |   | 1,065,239                                                                                       |   |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| ***Loss                  from operations***     |   | (151,275                                                                                                | )      |   | (698,856                                                                                        | )      |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| **OTHER                  INCOME (EXPENSE):**    |   |                                                                                                    |   |   |                                                                                            |   |
| Interest                  income                |   | -                                                                                                       |   |   | 1,510                                                                                           |   |
| Loss                  on disposal of assets     |   | -                                                                                                       |   |   | (13,500                                                                                         | )      |
| Total                  other income (expense)   |   | -                                                                                                       |   |   | (11,990                                                                                         | )      |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| **NET                  LOSS**                   | **$**  | **(151,275**                                                                                            | **)**  | **$**  | **(710,846**                                                                                    | **)**  |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| **BASIC                  AND DILUTED LOSS PER** |   |                                                                                                    |   |   |                                                                                            |   |
| **COMMON                  SHARE**               |   |                                                                                                    |   |   |                                                                                            |   |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| Net                  loss per common share      |   | **(0.03**                                                                                               | **)**  |   |                                                                                            |   |
|                                            |   |                                                                                                    |   |   |                                                                                            |   |
| **WEIGHTED                  AVERAGE SHARES**    |   |                                                                                                    |   |   |                                                                                            |   |
| **OUTSTANDING**                                 |   | **6,047,376**                                                                                           |   |   |                                                                                            |   |

----

Table          of Contents

**EXPRESS        SYSTEMS CORPORATION**

**AND        SUBSIDIARY**

**(A        Development Stage Company)**

**CONSOLIDATED        STATEMENTS OF CHANGES IN        SHAREHOLDERS' EQUITY**

|                                                                  |   |   | **Common                    Shares ** |   |   | **Common                    Stock Amount** |   |   | **Additional                    Paid-In Capital** |   |   | **Deficit                    Accumulated During the Development Stage** |   |
|-----------------------------------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| **BALANCES,                    at inception (July 9, 1998)**          |   |   | -                                          |   | $      | -                                          |   | $      | -                                                 |   | $      | -                                                                       |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Sale                    of common stock to founders in July 1998      |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| for                    $.0005 per share                               |   |   | 2,000,000                                  |   |   | 2,000                                      |   |   | (1,000                                            | )      |   |                                                                    |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Sale                    of common stock in private placements:        |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| November                    1998 at $.005 per share                   |   |   | 2,000,000                                  |   |   | 2,000                                      |   |   | 8,000                                             |   |   |                                                                    |   |
| November                    1998 for $.025 per share                  |   |   | 70,000                                     |   |   | 70                                         |   |   | 1,680                                             |   |   |                                                                    |   |
| January                    2001 for $.25 per share                    |   |   | 400,000                                    |   |   | 400                                        |   |   | 99,600                                            |   |   |                                                                    |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Net                    loss for the period from inception             |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| to                    March 31, 2002                                  |   |   | -                                          |   |   | -                                          |   |   | -                                                 |   |   | (89,120                                                                 | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| **BALANCES,                    March 31, 2002**                       |   |   | 4,470,000                                  |   |   | 4,470                                      |   |   | 108,280                                           |   |   | (89,120                                                                 | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Sale                    of common stock in private placement:         |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| November                    2002 at $.25 per share                    |   |   | 430,000                                    |   |   | 430                                        |   |   | 107,170                                           |   |   | -                                                                       |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Net                    loss                                           |   |   | -                                          |   |   | -                                          |   |   | -                                                 |   |   | (121,766                                                                | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| **BALANCES,                    March 31, 2003**                       |   |   | 4,900,000                                  |   |   | 4,900                                      |   |   | 215,450                                           |   |   | (210,866                                                                | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Sale                    of common stock in private placement:         |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| May                    2003 at $.25 per share                         |   |   | 220,000                                    |   |   | 220                                        |   |   | 54,780                                            |   |   | -                                                                       |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Net                    loss                                           |   |   | -                                          |   |   | -                                          |   |   | -                                                 |   |   | (42,701                                                                 | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| **BALANCES,                    March 31, 2004**                       |   |   | 5,120,000                                  |   |   | 5,120                                      |   |   | 270,230                                           |   |   | (253,587                                                                | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Net                    loss                                           |   |   | -                                          |   |   | -                                          |   |   | -                                                 |   |   | (27,066                                                                 | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| **BALANCES,                    March 31, 2005**                       |   |   | 5,120,000                                  |   |   | 5,120                                      |   |   | 270,230                                           |   |   | (280,653                                                                | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Sale                    of common stock in private placement:         |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| April                    2005 at $.25 per share                       |   |   | 800,000                                    |   |   | 800                                        |   |   | 199,200                                           |   |   | -                                                                       |   |
| November                    2005 at $.0005 per shares                 |   |   | 160,000                                    |   |   | 160                                        |   |   | -                                                 |   |   | -                                                                       |   |
| November                    2005 shares cancelled at $.0005 per share |   |   | (160,000                                   | )      |   | (160                                       | )      |   | -                                                 |   |   | -                                                                       |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Shares                    issued for services rendered:               |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| April                    2005 at $.25 per share                       |   |   | 150,000                                    |   |   | 150                                        |   |   | 37,350                                            |   |   | -                                                                       |   |
| June                    2005 at $.25 per share                        |   |   | 40,000                                     |   |   | 40                                         |   |   | 9,960                                             |   |   | -                                                                       |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Issuance                    costs for shares issued                   |   |   | -                                          |   |   | -                                          |   |   | (23,924                                           | )      |   | -                                                                       |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Net                    loss                                           |   |   | -                                          |   |   | -                                          |   |   | -                                                 |   |   | (191,947                                                                | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| **BALANCES,                    March 31, 2006**                       |   |   | 6,110,000                                  |   |   | 6,110                                      |   |   | 492,816                                           |   |   | (472,600                                                                | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Sale                    of common stock:                              |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| October                    2006 at $.01 per share                     |   |   | 14,000,000                                 |   |   | 14,000                                     |   |   | 126,000                                           |   |   | -                                                                       |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| December                    2006 2 for 1 stock split                  |   |   | 10,055,200                                 |   |   | -                                          |   |   | -                                                 |   |   |                                                                    |   |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| Net                    loss                                           |   |   | -                                          |   |   | -                                          |   |   | -                                                 |   |   | (238,246                                                                | )      |
|                                                                  |   |   |                                       |   |   |                                       |   |   |                                              |   |   |                                                                    |   |
| **BALANCES,                    December 31, 2006**                    |   |   | **20,110,000**                             |   | **$**  | **20,110**                                 |   | **$**  | **618,816**                                       |   | **$**  | **(710,846**                                                            | **)**  |

----

Table          of Contents

**EXPRESS          SYSTEMS CORPORATION**

**AND          SUBSIDIARY**

**(A          Development Stage Company)**

**CONSOLIDATED          STATEMENTS OF CASH FLOWS**

|                                                                                    |   | **Nine                    Months Ended December 31, 2006** | ** ** | ** ** | **Nine                    Months Ended December 31, 2005** |   |
|-----------------------------------------------------------------------------------------|--------|------------------------------------------------------------|------------|------------|------------------------------------------------------------|--------|
|                                                                                    |   | (Unaudited)                                           |       |       | (Unaudited)                                                |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                            |   |                                                       |       |       |                                                       |   |
| Net                    loss                                                             | $      | (238,246                                                   | )          | $          | (151,275                                                   | )      |
| **Adjustments                    to reconcile net loss to net cash**                    |   |                                                       |       |       |                                                       |   |
| **used                    in operating acctivies:**                                     |   |                                                       |       |       |                                                       |   |
| Depreciation                    and amortization                                        |   | 513                                                        |       |       | 390                                                        |   |
| Bad                    debt expense                                                     |   | 52,455                                                     |       |       | -                                                          |   |
| Loss                    on disposals of assets                                          |   | -                                                          |       |       | -                                                          |   |
| Shares                    issued for services                                           |   | -                                                          |       |       | -                                                          |   |
| Decrease                    (increase) in accounts receivable, net                      |   | -                                                          |       |       | (10,430                                                    | )      |
| Increase                    in interest receivable, net                                 |   | -                                                          |       |       | -                                                          |   |
| Increase                    in receivable from related parties                          |   | -                                                          |       |       | -                                                          |   |
| Increase                    in prepaid expenses                                         |   | (8,274                                                     | )          |       | (2,101                                                     | )      |
| (Decrease)                    increase in due to related party                          |   | 26,026                                                     |       |       |                                                       |   |
| Increase                    (decrease) in accounts payable and                          |   |                                                       |       |       |                                                       |   |
| accrued                    expenses                                                     |   | 40,835                                                     |       |       | 51                                                         |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| Net                    cash used in operating activities                                |   | (126,691                                                   | )          |       | (174,787                                                   | )      |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITES:**                             |   |                                                       |       |       |                                                       |   |
| Purchase                    of other asset                                              |   | -                                                          |       |       | -                                                          |   |
| Purchases                    of property and equipment                                  |   | -                                                          |       |       | -                                                          |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| Net                    cash used in investing activies                                  |   | **-**                                                      |       |       | **-**                                                      |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                            |   |                                                       |       |       |                                                       |   |
| Issuance                    of common stock, net of issuance costs                      |   | 140,000                                                    |       |       | 206,231                                                    |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| **NET                    INCREASE IN CASH AND CASH EQUIVALENTS**                        |   | 13,309                                                     |       |       | 31,444                                                     |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| **CASH                    AND CASH EQUIVALENTS,**beginning                    of period |   | 7,925                                                      |       |       | 1,960                                                      |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| **CASH                    AND CASH EQUIVALENTS,**end                    of period       | **$**  | **21,234**                                                 |       | **$**      | **33,404**                                                 |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| **SUPPLEMENTAL                    DISCLOSURE OF NON-CASH**                              |   |                                                       |       |       |                                                       |   |
| **INVESTING                    AND FINANCING ACTIVITIES:**                              |   |                                                       |       |       |                                                       |   |
|                                                                                    |   |                                                       |       |       |                                                       |   |
| Write                    off of software and cancellation of                            |   |                                                       |       |       |                                                       |   |
| associated                    note payable                                              | $      | -                                                          |       | $          | -                                                          |   |
| Share                    issued for services                                            | $      | -                                                          |       | $          | -                                                          |   |

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Table            of Contents

**EXPRESS          SYSTEMS CORPORATION**

**AND        SUBSIDIARY**

**(A        Development Stage Company)**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

|                                                                                        |   | **Year                      Ended March 31, 2006** | ** ** | ** ** | **Period                      from Inception (July 9, 1998) to December 31,                      2006** |   |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|------------|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                        |   | (Audited)                                     |       |       | (Unaudited)                                                                                             |   |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| **CASH                      FLOWS FROM OPERATING ACTIVTIES:**                               |   |                                               |       |       |                                                                                                    |   |
| Net                      loss                                                               | $      | (191,947                                           | )          | $          | (710,846                                                                                                | )      |
| **Adjustments                      to reconcile net loss to net cash**                      |   |                                               |       |       |                                                                                                    |   |
| **used                      in operating acctivies:**                                       |   |                                               |       |       |                                                                                                    |   |
| Depreciation                      and amortization                                          |   | 1,227                                              |       |       | 5,414                                                                                                   |   |
| Bad                      debt expense                                                       |   | 11,746                                             |       |       | 101,005                                                                                                 |   |
| Loss                      on disposals of assets                                            |   | -                                                  |       |       | 13,500                                                                                                  |   |
| Shares                      issued for services                                             |   | 47,425                                             |       |       | 47,425                                                                                                  |   |
| Decrease                      (increase) in accounts receivable, net                        |   | (20,235                                            | )          |       | (92,053                                                                                                 | )      |
| Increase                      in interest receivable, net                                   |   | (1,400                                             | )          |       | (1,400                                                                                                  | )      |
| Increase                      in receivable from related parties                            |   | -                                                  |       |       | (8,952                                                                                                  | )      |
| Decrease                      (increase) in prepaid expenses                                |   | (1,138                                             | )          |       | (9,412                                                                                                  | )      |
| (Decrease)                      increase in due to related party                            |   | (11,397                                            | )          |       | 18,023                                                                                                  |   |
| Increase                      (decrease) in accounts payable and                            |   |                                               |       |       |                                                                                                    |   |
| accrued                      expenses                                                       |   | (4,466                                             | )          |       | 86,566                                                                                                  |   |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| Net                      cash used in operating activities                                  |   | (170,186                                           | )          |       | (550,730                                                                                                | )      |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| **CASH                      FLOWS FROM INVESTING ACTIVITES:**                               |   |                                               |       |       |                                                                                                    |   |
| Purchase                      of other asset                                                |   | -                                                  |       |       | (3,500                                                                                                  | )      |
| Purchases                      of property and equipment                                    |   | -                                                  |       |       | (16,037                                                                                                 | )      |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| Net                      cash used in investing activies                                    |   | **-**                                              |       |       | (19,537                                                                                                 | )      |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| **CASH                      FLOWS FROM FINANCING ACTIVITIES:**                              |   |                                               |       |       |                                                                                                    |   |
| Issuance                      of common stock, net of issuance costs                        |   | 176,151                                            |       |       | 591,501                                                                                                 |   |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| **NET                      INCREASE IN CASH AND CASH EQUIVALENTS**                          |   | 5,965                                              |       |       | 21,234                                                                                                  |   |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| **CASH                      AND CASH EQUIVALENTS,**beginning                      of period |   | 1,960                                              |       |       |                                                                                                    |   |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| **CASH                      AND CASH EQUIVALENTS,**end                      of period       | **$**  | **7,925**                                          |       | **$**      | **21,234**                                                                                              |   |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| **SUPPLEMENTAL                      DISCLOSURE OF NON-CASH**                                |   |                                               |       |       |                                                                                                    |   |
| **INVESTING                      AND FINANCING ACTIVITIES:**                                |   |                                               |       |       |                                                                                                    |   |
|                                                                                        |   |                                               |       |       |                                                                                                    |   |
| Write                      off of software and cancellation of                              |   |                                               |       |       |                                                                                                    |   |
| associated                      note payable                                                | **$**  | **-**                                              |       | **$**      | **50,000**                                                                                              |   |
| Share                      issued for services                                              | **$**  | **47,425**                                         |       | **$**      | **47,425**                                                                                              |   |

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Table          of Contents

**EXPRESS              SYSTEMS CORPORATION**

**AND              SUBSIDIARY**

**(A              Development Stage Company)**

**NOTES              TO CONSOLIDATED FINANCIAL STATEMENTS**

**December              31, 2006 and 2005 (Unaudited)**

**NOTE            1            - ORGANIZATION            AND BUSINESS BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING            POLICIES**

**Organization            and Business**

**Basis            of Presentation**

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**EXPRESS            SYSTEMS CORPORATION**

**AND            SUBSIDIARY**

**(A            Development Stage Company)**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**December            31, 2006 and 2005 (Unaudited)**

**(Continued)**

**Revenue            Recognition**

**Earnings            per share**

**Stock            Split**

*Recent            Accounting Pronouncements*

**SEC            Staff Accounting Bulletin 108, Considering the Effects of Prior Year            Misstatements when Quantifying Misstatements in Current Year Financial            Statement, (“SAB 108”)**

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Table                of Contents

** EXPRESS            SYSTEMS CORPORATION**

**AND            SUBSIDIARY**

**(A            Development Stage Company)**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**December            31, 2006 and 2005 (Unaudited)**

**(Continued)**

**NOTE            2- LIQUIDITY            AND MANAGEMENTS’ PLANS**

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Table                of Contents

**EXPRESS            SYSTEMS CORPORATION**

**AND            SUBSIDIARY**

**(A            Development Stage Company)**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**December            31, 2006 and 2005 (Unaudited)**

**(Continued)**

**NOTE            3- RELATED            PARTY TRANSACTIONS**

**NOTE            4- INTEREST            RECEIVABLE**

**NOTE            5- DEFINITIVE            AGREEMENT WITH DWM PETROLEUM AG**

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Table                of Contents

**EXPRESS            SYSTEMS CORPORATION**

**AND            SUBSIDIARY**

**(A            Development Stage Company)**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**December            31, 2006 and 2005 (Unaudited)**

**(Concluded)**

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Table                of Contents

**Item            2. **** MANAGEMENT'S            DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONS**

**OVERVIEW**

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**RESULTS            OF OPERATIONS FOR THE NINE AND THREE MONTH PERIODS ENDED DECEMBER 31,            2006            COMPARED TO DECEMBER 31, 2005**

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Table                of Contents

**LIQUIDITY            AND CAPITAL RESOURCES**

**Related            Party Transactions**

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Table                of Contents

**Working            Capital**

**Cash            Flow from Operating Activities**

**Cash            Flow from Investing Activities**

**Cash            Flow from Financing Activities**

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Table                of Contents

*New            Accounting Pronouncements*

**SEC            Staff Accounting Bulletin 108, Considering the Effects of Prior Year            Misstatements when Quantifying Misstatements in Current Year Financial            Statement, (“SAB 108”)**

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Table                of Contents

*Application            of Critical Accounting Policies *

*Share-Based            Payment*
*Accounting            for Stock Issued to Employees*
*Accounting            for Stock-Based Compensation*
*Accounting            for Equity Instruments That Are Issued to Other Than Employees for Acquiring,            or            in Conjunction with Selling, Goods or Services*

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Table                of Contents

**ITEM            3 - CONTROLS AND PROCEDURES**

**Evaluation            of Disclosure Controls and Procedures**
**.**

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**Changes            in internal controls**
**.**

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Table            of Contents

**PART      II - OTHER INFORMATION**

|  **Item              1** |  **Legal              Proceedings**                                                            |
|-------------------------------|-----------------------------------------------------------------------------------------------------|
|                          |  None                                                                                          |
|                          |                                                                                                |
|  **Item              2** |  ****Unregistered              Sales of Equity Securities and Use of              Proceeds**** |
|                          |  None                                                                                          |
|                          |                                                                                                |
|  **Item              3** |  **Defaults by the Company on              its              Senior Securities**                |
|                          |  None                                                                                          |
|                          |                                                                                                |
|  **Item              4** |  **Submission of Matters to a              Vote              of Security Holders**        |
|                          |  None                                                                                          |
|                          |                                                                                                |
|  **Item              5** |  **Other Information**                                                                    |
|                          |                                                                                                     |
|                          |                                                                                                |
|  **Item              6** |  **Exhibits.**                                                                                 |
|                          |  (a) Exhibits                                                                             |

**INDEX      TO EXHIBITS**

| Exhibit                No. | Identification                of Exhibits                                  |
|----------------------------|----------------------------------------------------------------------------|
| 31.1                       | Certification                of Chief Executive                Officer     |
| 31.2                       | Certification                of Principal Financial                Officer |
| 32.1                       | Certificate                of Chief Executive                Officer       |
| 32.2                       | Certificate                of Principal Financial                Officer   |

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Table          of Contents

**SIGNATURES**

|                           |  **Express Systems                Corporation**                                                                                         |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                                                                                                                                         |
|  Dated: February 20, 2007 |  /s/                Randle Barrington-Foote                                                                                             |
|                           | Randle                  Barrington-FootePresident,                  CEO, and Director                                                   |
|                           |                                                                                                                                         |
|                           |                                                                                                                                         |
|  Dated: February 20, 2007 |  /s/ Richard Brown                                                                                                                      |
|                           |  Richard                  BrownPrincipal                  Accounting Officer, Principal Financial Officer and                  Director |

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