UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-QSB

(Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
     OF 1934

     For the quarterly period ended June 30, 2002

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT
     For the transition period from ______________ to _______________

Commission file number:

                            UNIVERSAL ICE BLAST, INC.
       (Exact name of small business issuer as specified in its charter)

              Nevada                                        88-0360067
(State or other jurisdiction of               (IRS Employer Identification No.)
 incorporation or organization)


                   533 6th Street South, Kirkland, WA 98033
                   (Address of principal executive offices)

                                (425) 893-8424
                          (Issuer's telephone number)

(Former  name,  former  address  and  former fiscal year, if changed since last
report)

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS

Check whether the registrant filed all  documents  and  reports  required to be
filed by Section l2, 13 or 15(d) of the Exchange Act after the distribution  of
securities under a plan confirmed by a court. Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS

State  the  number  of  shares  outstanding  of each of the issuer's classes of
common equity, as of the latest practicable date:  34,559,986 at July 29, 2002.













<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB


                              TABLE OF CONTENTS



                       Part I - Financial Information

Item 1.  Consolidated Financial Statements (Unaudited)                        1
Item 2.  Management's Discussion and Analysis of Financial Condition         10
         And Results of Operations
Item 3.  Quantitative and Qualitative Disclosure about Market Risk           15

                        Part II - Other Information

Item 1.  Legal Proceedings                                                   15
Item 2.  Changes in Securities                                               15
Item 3. Defaults Upon senior Securities                                      (a)
Item 4. Submission of Matters to a Vote of Security Holders                  (a)
Item 5. Other Information                                                    (a)
Item 6. Exhibits and Reports on Form 8-K                                     16
Signature Page                                                               16
Index to Exhibits                                                            16

(a) There are no issues requiring disclosure for these items and they have
    therefore been omitted


































<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

                         PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

UNIVERSAL ICE BLAST, INC.
CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                  June 30,                 December 31,
                                                                    2002                      2001
                                                                 (Unaudited)
                                                             ------------------        ------------------
<S>                                                          <C>                      <C>
ASSETS
CURRENT ASSETS
    Cash and cash equivalents                                $          46,195         $          54,455
    Accounts receivable - trade                                         81,220                   347,147
    Interest receivable on shareholder notes                            37,701                       -
    Inventory                                                           63,710                   322,090
    Prepaid expenses and other                                           8,152                       -
                                                             ------------------        ------------------
       Total current assets                                            236,978                   723,692
                                                             ------------------        ------------------
EQUIPMENT, net                                                         180,898                   230,166
OTHER ASSETS                                                            10,525                    10,525
                                                             ------------------        ------------------
                                                             $         428,401         $         964,383
                                                             ==================        ==================
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
    Accounts payable                                          $        340,045          $        467,982
    Notes payable                                                      292,487                   123,000
    Accrued liabilities                                                 47,572                    40,087
    Customer deposits                                                    9,700                       -
    Advances from officers                                               4,805                    62,087
    Deferred revenue                                                   189,094                   341,327
    Current portion of capital lease obligations and
      long-term debt                                                    95,609                  108,335
                                                             ------------------        ------------------
       Total current liabilities                                       979,312                1,142,818
                                                             ------------------        ------------------
LONG-TERM LIABILITIES
    Capital lease obligations, net of current portion                   31,861                    57,109
    Long-term debt, net of current portion                             127,288                   141,964
    Deferred gains from sale/leasebacks                                 22,529                    28,895
    Deferred officers' compensation                                    164,705                   116,262
                                                             ------------------        ------------------
       Total long-term liabilities                                     346,383                   344,230
                                                             ------------------        ------------------
STOCKHOLDERS' DEFICIT
    Preferred stock, $0.001 par value, 5,000,000 shares
      authorized, none issued.                                             -                         -
Common stock, $0.001 par value, 100,000,000 shares
      authorized, 34,239,987 and 33,109,654 shares issued
      and outstanding in 2002 and 2001, respectively                    34,239                    33,109
    Additional paid-in capital                                       4,238,852                 4,085,370
    Shareholder notes receivable                                    (1,169,650)               (1,169,650)
    Stock options and warrants                                         103,654                    84,738
    Accumulated deficit                                             (4,104,389)               (3,556,232)
                                                             ------------------        ------------------
       Total stockholders' deficit                                    (897,294)                 (522,665)
                                                             ------------------        ------------------
                                                             $         428,401         $         964,383
                                                             ==================        ==================
</TABLE>


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

<PAGE>
UNIVERSAL ICE BLAST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

<TABLE>
<CAPTION>

                                          Three Months Ended June 30,      Six Months Ended June 30,
                                        ------------------------------  ------------------------------

                                             2002            2001            2002            2001
                                        --------------  --------------  --------------  --------------
<S>                                     <C>             <C>             <C>             <C>
REVENUE

  Sales of machines and accessories     $     381,350   $       7,130   $     384,944   $      10,313
  Service and rental income                    28,575          55,656          71,481         121,120
                                        --------------  --------------  --------------  --------------
  Total Revenue                               409,925          62,786         456,425         131,433
                                        --------------  --------------  --------------  --------------

COST OF REVENUE
  Machines and accessories                    365,815           1,114         366,440           1,114

  Service and rental                           29,558          19,441          65,645          55,160
                                        --------------  --------------  --------------  --------------
   Total Cost of Revenue                      395,373          20,555         432,085          56,274
                                        --------------  --------------  --------------  --------------
                                               14,552          42,231          24,340          75,159
                                        --------------  --------------  --------------  --------------

OPERATING EXPENSES
  General and administrative                  220,865         182,793         405,455         307,724

  Research and development                     50,527          49,757          92,943          95,931
  Selling and marketing                        48,810          12,794          69,605          26,249
                                        --------------  --------------  --------------  --------------
  Total Operating Expenses                    320,202         245,344         568,003         429,904
                                        --------------  --------------  --------------  --------------


OPERATING LOSS                               (305,650)       (203,113)       (543,663)       (354,745)

INTEREST INCOME                                19,695             -            38,793             -

INTEREST EXPENSE                              (19,875)         (9,551)        (43,287)        (19,304)
                                        --------------  --------------  --------------  --------------
NET LOSS                                $    (305,830)  $    (212,664)  $    (548,157)  $    (374,049)
                                        ==============  ==============  ==============  ==============

BASIC AND DILUTED

NET LOSS PER SHARE                      $       (0.01)  $       (0.01)  $       (0.02)  $       (0.02)
                                        ==============  ==============  ==============  ==============


WEIGHTED AVERAGE SHARES
OUTSTANDING USED IN BASIC AND

DILUTED PER-SHARE CALCULATION              34,166,654      22,250,949      33,687,044      21,761,393
                                        ==============  ==============  ==============  ==============
</TABLE>









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

<PAGE>
UNIVERSAL ICE BLAST, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
SIX MONTHS ENDED  JUNE 30, 2002
(UNAUDITED)


<TABLE>
<CAPTION>
                                                                                          Stock
                                                             Additional   Shareholder     Options
                                 Common Stock                 Paid-in        Notes          and       Accumulated
                                   Shares        Amount       Capital      Receivable     Warrants       Deficit       Total
                                ------------  ------------  ------------  ------------  ------------  ------------  ------------
<S>                              <C>          <C>           <C>           <C>            <C>          <C>            <C>

BALANCE, December 31, 2001        33,109,654  $    33,109   $ 4,085,370   $(1,169,650)  $    84,738   $(3,556,232)  $  (522,665)

   Common stock issued for cash      853,333          853       127,109           -             -             -         127,962

    Shares  and  warrants issued
      to consultants providing
      services to the Company        277,000          277        26,373           -          15,916           -          42,566

   Stock options issued as
     compensation                        -            -             -             -           3,000           -           3,000

   Net loss                              -            -             -             -             -        (548,157)     (548,157)
                                ------------  ------------  ------------  ------------  ------------  ------------  ------------

BALANCE, June 30, 2002            34,239,987  $    34,239   $ 4,238,852   $(1,169,650)  $   103,654   $(4,104,389)  $  (897,294)
                                ============  ============  ============  ============  ============  ============  ============
</TABLE>



































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

<PAGE>
UNIVERSAL ICE BLAST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

<TABLE>
<CAPTION>
                                                                           Six Months Ended June 30,
                                                                         ------------------------------
                                                                              2002            2001
                                                                         --------------  --------------
<S>                                                                      <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
       Net loss                                                          $    (548,157)  $    (374,049)
       Adjustments to reconcile net loss to net cash used by
        operating activities
           Depreciation and amortization                                        49,856          43,769
           Common stock and warrants issued for goods and services              42,566          11,250
           Stock options issued as compensation                                  3,000             -
           Amortization of deferred stock-based compensation                       -            3,000
           Amortization of deferred gain on sale/leaseback transactions         (6,366)        (6,366)
           Changes in operating assets and liabilities
                Accounts receivable - trade                                    265,927          8,676
                Accounts receivable - related parties                              -           (7,039)
                Interest receivable on shareholder notes                       (37,701)           -
                Inventory                                                      258,380        (20,630)
                Prepaid expenses and other                                      (8,152)       (16,598)
                Accounts payable                                               (30,981)        68,950
                Accrued liabilities                                              7,485         (8,480)
                Due to related parties                                             -              (50)
                Deferred revenue                                              (152,233)           -
                Deferred officers' compensation                                 48,443         48,443
                Customer deposits                                                9,700            -
                                                                         --------------  --------------
                    Net cash  used in operating activities                     (98,233)       (249,124)
                                                                         --------------  --------------

CASH FLOWS FROM INVESTING ACTIVITIES
       Purchases of equipment                                                     (588)        (22,260)
                                                                         --------------  --------------
                   Net cash used in investing activities                          (588)        (22,260)
                                                                         --------------  --------------

CASH FLOWS FROM FINANCING ACTIVITIES
       Payments on capital lease obligations                                   (35,863)        (27,782)
       Proceeds from long term debt borrowing                                      -            49,500
       Proceeds from borrowings on notes payable                               148,979             -
       Proceeds from issuance of common stock                                  127,962         248,649
       Advances from officers                                                    4,000             -
       Payments on advances from officers                                      (61,282)        (54,274)
       Payments on long-term debt                                              (16,787)         (8,279)
       Payments of notes payable                                               (76,448)            -
                                                                         --------------  --------------
                   Net cash provided by financing activities                    90,561         207,814
                                                                         --------------  --------------

DECREASE IN CASH AND CASH EQUIVALENTS                                           (8,260)        (63,570)
CASH AND CASH EQUIVALENTS
       Beginning of period                                                      54,455          66,413
                                                                         --------------  --------------
       End of period                                                     $      46,195   $       2,843
                                                                         ==============  ==============

SUPPLEMENTAL CASH FLOW DISCLOSURE:
    Interest paid                                                        $      38,156   $      19,036
    Income taxes paid                                                    $         -     $         -
NON-CASH INVESTING AND FINANCING TRANSACTIONS
       Conversion of accounts payable to notes payable                   $      96,956   $         -
       Stock options issued as compensation                              $       3,000   $         -
       Common stock and warrants issued for goods and services           $      42,566   $         -
</TABLE>


The accompanying notes are an integral  part  of  these  consolidated financial
statements

<PAGE>
UNIVERSAL ICE BLAST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2002
(UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION OF UNAUDITED INTERIM FINANCIAL INFORMATION

     The accompanying unaudited  financial  statements  have  been  prepared in
accordance  with accounting principles generally accepted in the United  States
of America for  interim  financial statements and with instructions to Form 10-
QSB pursuant to the rules  and  regulations  of  the  Securities  and  Exchange
Commission. Accordingly, they do not include all of the information required by
accounting  principles  generally accepted in the United States of America  for
complete financial statements.  The accompanying financial statements should be
read in conjunction with  the  audited consolidated financial statements of the
Company included in the Company's  December  31, 2001 Annual Report on Form 10-
KSB.

     In the opinion of management, all adjustments,  consisting  only of normal
recurring  accruals  considered  necessary  for a fair presentation, have  been
included. The results of operations for the six-month  period  ended  June  30,
2002 are not necessarily representative of operating results to be expected for
the entire fiscal year.

NOTE 2 - USE OF ESTIMATES

      The  preparation  of  financial  statements in conformity with accounting
principles  generally  accepted  in  the  United  States  of  America  requires
management to make estimates and assumptions  that  affect the amounts reported
in the financial statements and accompanying notes. Actual results could differ
from those estimates.

NOTE 3 - FINANCIAL CONDITION, LIQUIDITY AND GOING CONCERN

     The Company's consolidated financial statements  have  been  prepared on a
going   concern  basis,  which  contemplates  the  realization  of  assets  and
settlement  of liabilities and commitments in the normal course of business for
the foreseeable  future.   Since inception in 1995, the Company has accumulated
losses aggregating $4,104,000,  including  a loss of $548,000 for the six-month
period ended June 30, 2002.

     The Company had a working capital deficit  of $742,000 and a stockholders'
deficit  of  $897,000  at  June  30,  2002. Management's  plans  for  continued
existence include a focus towards sales  of  ice blast systems and machines and
raising additional capital through the sale of  common  stock  and  issuance of
debt.  The  Company  is  actively  pursuing  marketing  arrangements  for their
products in the precision, environmental and industrial cleaning markets. These
efforts include the arrangement with Ford Motor Company ("Ford") as more  fully
described  in  Note  6.   The  Company's  future  success is dependent upon its
ability  to  achieve  profitable operations and generate  cash  from  operating
activities, and upon obtaining  additional  financing.   There  is no assurance
that  the  Company will be able to generate sufficient cash from operations  or
through the  sale  of  additional  shares  of  common  stock or from additional
borrowings.

      During  the  six  months  ended  June  30,  2002,  the Company  converted
approximately $97,000 in trade accounts payable to two suppliers  to short-term
notes  payable bearing interest at annual rates of 12% and 18%.  The  Company's
ability  to  obtain additional cash could have a material adverse effect on its
financial position,  results  of  operations  and  its  ability  to continue in
existence. The consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
<PAGE>
UNIVERSAL ICE BLAST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2002
(UNAUDITED)

NOTE 4 - COMMON STOCK

      During  the  six  months ended June 30, 2002, the Company issued  853,333
shares of common stock through  private  placements  under  Section 4(2) of the
Securities  Act in the aggregate amount of $127,962 to five investors,  all  of
whom were accredited  investors  and/or  existing  shareholders of the Company.
During the same period, under Section 4(2) of the Securities  Act  the  Company
issued  277,000  shares  of common stock and 100,000 warrants to four investors
for goods and services having  a  fair  market  value  of  $42,566.  All common
shares issued above are restricted subject to Rule 144.

NOTE 5 - STOCK OPTIONS AND WARRANTS

     The Company has a stock option plan under which employees, consultants and
others  may  be  awarded  incentive  or non-statutory stock options.  The  plan
authorizes the grant of options for the  purchase  of up to 6 million shares of
common stock. At December 31, 2001 options outstanding,  all of which were non-
statutory, totaled 1,021,175.  New options to purchase 650,000  shares of stock
were granted to employees at prices from $0.20 to $0.25 during the  six  months
ended June 30, 2002.  Of the options granted, 350,000 vested immediately,  with
the  balance  vesting  over  four  years.  Based on the intrinsic value method,
150,000 of the vesting options included a compensation element in the amount of
$3,000.   During the three months ended  June  30,  2002,  employees  forfeited
200,000 of the issued but unvested options.

NOTE 6 - CONTRACT WITH THE FORD MOTOR COMPANY

     During  2001  the  Company  designed, assembled, and installed a precision
gear cleaning ice blast system under  the  terms  of a purchase order from Ford
Motor Company. The purchase order is for a price of approximately $341,000 with
commitments  for  an  additional  three similar systems.  In  June  2002,  Ford
notified the Company that Ford has accepted the system and that orders for more
systems will be forthcoming.  Management believes the delivery of these systems
could occur in 2002 or 2003.    During the six months ended June 30, 2002, Ford
paid all amounts due to the Company  under  the  terms  of the initial purchase
order.

     As a result of Ford's acceptance of the gear cleaning  system, the Company
recognized approximately $341,000 in revenue during the quarter  ended June 30,
2002.   Costs  associated  with  the  system, also recognized during the  three
months ended June 30, 2002, were approximately  $344,000 resulting in a loss of
approximately $3,000. Because of the initial design  costs associated with this
project,  the  foregoing  results were in line with management's  expectations.
However, management expects  that  future systems will provide the Company with
margins that will secure the profitability of the Company in the long term.

NOTE 7 - FOREIGN OPERATIONS

     During the six month period ended  June  30,  2002, the Company reached an
agreement in principle to acquire certain assets of  its Dutch distributor. The
Company is in the process of forming a Dutch subsidiary  in order to consummate
the transaction.  Terms are still being negotiated and no definitive agreements
have been signed.  The Company expects to finalize the formation  of  its Dutch
subsidiary and the acquisition of these assets during the second half of fiscal
2002.


<PAGE>
UNIVERSAL ICE BLAST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2002
(UNAUDITED)

NOTE 8 - COMMITMENTS AND CONTINGENCIES

      Certain vendors of the Company have threatened to bring legal action  for
payment  of  overdue  amounts. One suit has been filed, however the Company has
agreed to a payment plan  with the vendor.  In addition, the Company has agreed
to  a settlement with a former  sales  representative  who  was  attempting  to
collect  disputed  commissions.   All reasonable amounts relating to these past
due and disputed liabilities have been  accrued  in  the accompanying financial
statements.

      In  June  2002, the Company issued a promissory note  in  the  amount  of
$25,000 to a major  supplier.  The note bears interest at an annual rate of 12%
and is payable on demand  with  90  days'  written  notice.   Terms of the note
include  a  provision whereby the supplier may convert its outstanding  payable
from the Company  to  common  stock  at  a price not to exceed $0.15 per share.
Accounts payable to the supplier are approximately  $60,000  at  June 30, 2002.
The  conversion right expires in two years.  In addition, the note  terms  call
for the  Company  and  the supplier to enter into a separate and fully executed
manufacturing  rights  licensing   agreement.    Terms  under  negotiation  are
discussed in Note 9.

NOTE 9 - SUBSEQUENT EVENTS

     Subsequent to June 30, 2002, the Company issued  319,999  shares of common
stock  through private placements under Section 4(2) of the Securities  Act  in
the aggregate  amount of $47,970 to five investors, all of whom were accredited
investors and/or existing shareholders of the Company.

     Of the $292,000  in  notes payable at June 30, 2002, approximately $92,000
was collateralized by accounts  receivable  from Ford.  As discussed in Note 6,
Ford has paid the Company all amounts due under  the  initial  purchase  order.
The  Company is negotiating revised repayment terms with its lenders, including
the possible conversion of the amounts due into equity.

     Under the terms of the Promissory Note discussed in Note 8, the Company is
in discussions  with  a major supplier for the supplier to become the Company's
manufacturing partner.   No  agreement has been signed.  Terms being negotiated
include the supplier's financing  of material purchases in order to provide the
working capital to build future equipment for Ford and other customers.

     Subsequent to June 30, 2002, the  Company  agreed to issue to a consultant
options to acquire approximately 133,000 shares of  the Company's common stock.
The consultant may pay a nominal cash acquisition price  of  $0.01  per  share,
with  the difference between the market price and the acquisition price of  the
stock attributable to services rendered.












<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

ITEM 2.   MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION AND
RESULTS OF OPERATIONS

      The following discussion and analysis should be read in conjunction  with
the Company's  interim  consolidated financial statements included elsewhere in
this Quarterly Report on  Form  10-QSB  (the  "Quarterly  Report") and with the
Company's consolidated annual financial statements and management's  discussion
and analysis included in the Company's December 31, 2001 Annual Report  on Form
10-KSB (the "Annual Report").

       Certain   forward-looking  statements  contained  herein  regarding  the
Company's business  and  prospects  are  based  upon numerous assumptions about
future  conditions,  which may ultimately prove to  be  inaccurate  and  actual
results may materially  differ  from  anticipated  results  described  in  such
statements. The Company's ability to achieve such results is subject to certain
risks  and  uncertainties,  such  as  the  impact  of  competition and pricing,
changing market conditions, general economic conditions,  the Company's history
of  losses  and  need  for additional capital and other risks.  Forward-looking
statements are identified  by  words such as "believe", "anticipate", "expect",
"intend", "plan", "will", "may", "confident" and other similar expressions. Any
forward-looking statements contained herein represent the Company's judgment as
of the date hereof. The Company disclaims, however, any intent or obligation to
update such forward-looking statements.  As  a  result, the reader is cautioned
not to place undue reliance on any forward-looking statements contained herein.

CRITICAL ACCOUNTING POLICIES

The  Company's  financial statements and accompanying  notes  are  prepared  in
accordance with accounting  principles  generally accepted in the United States
of  America.  Preparing  financial  statements   requires  management  to  make
estimates  and  assumptions  that  affect  the  reported   amounts  of  assets,
liabilities,  revenue,  and  expenses.  These  estimates  and  assumptions  are
affected   by   management's   application  of  accounting  policies.  Critical
accounting  policies  for Universal  Ice  Blast  include  revenue  recognition,
accounting  for research  and  development  costs,  and  accounting  for  stock
compensation expense, as well as the preparation of the financial statements on
a going concern basis.

Revenue Recognition  -  Revenue from the sale of stand alone Ice Blast machines
and accessories to end users and distributors are shipped FOB shipping point at
which time the title passes  and revenue is recognized. Where customers require
installation services and operational  acceptance,  shipment is FOB destination
and  revenue  is  recognized  upon  acceptance  by the customer.  Revenue  from
services is recognized as the services are provided. Revenue from the rental of
Ice Blast machines is recognized over the rental  period  based on the terms of
the rental agreements.

Research and Development Costs - Research and development costs  are charged to
expense  as  incurred.  These  costs primarily consist of salaries, development
materials, supplies and related  costs  of  personnel  directly involved in the
research and development of new technology.








<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

Stock-Based  Compensation  -  The Company applies Accounting  Principles  Board
Opinion No. 25, "Accounting for Stock Options Issued to Employees," and related
interpretations including Financial  Accounting  Standards Board Interpretation
No.  44,  "Accounting for Certain Transactions Involving  Stock  Compensation."
The Company  accounts  for  stock-based  compensation  to  employees  using the
intrinsic  value  method,  whereby  compensation  cost  is  recognized when the
exercise price at the date of grant is less than the fair market  value  of the
Company's   common   stock.  The  Company  discloses  the  proforma  effect  of
compensation cost based  on  the fair value method for determining compensation
cost.  The  value  of stock-based  compensation  awarded  to  non-employees  is
determined using the  fair  value  method. Compensation cost is recognized over
the service or vesting period.

RESULTS OF OPERATIONS

Three months ended June 30, 2002 compared to three months ended June 30, 2001

     During the three months ended June 30, 2002, revenues increased by 553% to
$410,000 as compared to the three months  ended  June  30, 2001. Second quarter
2002 sales of machines and accessories increased to $381,000 from $7,000 during
the  comparable  three month period of 2001, while service  and  rental  income
decreased 49% to $29,000  during  the  three  months  ended  June 30, 2001 from
$56,000 during the comparable period of 2001. The increase in  machine sales is
due  to  the  recognition of revenue on the Ford gear cleaning system  project.
Machine revenue  also  includes  $3,000  in  amortization  of deferred gains on
sale/leaseback transactions originating in 1999.  The decrease  in  service and
rental  income is attributable to fewer service jobs performed during  2002  as
well as the  Company's  focus  on  installation  and support of the Ford system
during 2002 at the expense of potential rental opportunities.

     Gross profit decreased to $15,000 during the  three  months ended June 30,
2002 as compared to $42,000 during the comparable period of  the prior year. As
a percent of sales, gross profit decreased to 4% during the three  months ended
June  30,  2002 as compared to 67% during the comparable period of 2001.  Gross
profits from  sales  of  machines  and accessories increased $10,000 to $15,000
during the three months ended June 30,  2002  compared  to  the comparable 2001
period. Second quarter 2002 gross profits include the sale of  a  machine  to a
customer  in  Japan  offset  by a $3,000 loss on the Ford gear cleaning system.
Gross profits for the comparable  2001  period  relate primarily to the sale of
parts  and  accessories  as  no machines were sold during  that  period.  Gross
profits from services and rental  income  decreased  to a loss of $1,000 during
the three months ended June 30, 2002 as compared to profits  of $36,000 for the
comparable  period  of 2001. The $37,000 decrease in service and  rental  gross
profit is the result  of  decreased  volumes,  lower  rental  and service rates
obtained on 2002 work and an increase in depreciation expense on new equipment.

      For  the  three  months  ended  June 30, 2002, general and administrative
expense increased 21% to $221,000 from $183,000 during the comparable period of
2001. Increased payroll costs of $57,000  due, in part, to the appointment of a
Chief  Engineer  and  a  Production  Engineer as  well  as  increased  employee
benefits,  were offset by reductions in  fees  paid  to  financing  and  public
relations consultants and decreased SEC compliance expenses.

     Research and development expenses increased 1% to $50,000 during the three
months ended  June 30, 2002 as compared to $49,000 during the comparable period
of 2001. The $1,000 increase in research and development expenses is the result
of less management  and  consultant  time  spent on the Ford project, offset by
increases in patent expense and general research and development.

<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

     Selling and marketing expenses increased  $36,000  to  $49,000  during the
three  months  ended  June  30,  2002 as compared to $13,000 for the comparable
prior  year  period.  The  increase  in   selling  and  marketing  expenses  is
attributable to the hiring of a Vice President  of  Sales  & Marketing in early
2002 as well as the settlement costs associated with a dispute  with  a  former
sales representative.

      The Company's operating losses increased by $103,000 to $306,000 for  the
three months  ended June 30, 2002 from $203,000 for the comparable 2001 period.
The $37,000 decrease  in  gross profit on service and rental sales, the $38,000
increase  in general and administrative  costs  and  the  $36,000  increase  in
selling and  marketing  expenses  represent  the  majority  of  the  decline in
profitability.   Management  anticipates  incurring additional future operating
losses through the remainder of 2002.

      During the quarter ended June 30, 2002,  the  Company  recorded  interest
income in the amount of $19,000 in connection with Shareholder notes receivable
in the  aggregate  amount  of  approximately  $1,170,000. The Shareholder notes
receivable resulted from the Company's issuance of common stock to officers and
employees  during the year ended December 31, 2001.  The  Company  reported  no
interest income during the three month period ended June 30, 2001.

     Interest  expense  increased by $11,000 to $20,000 during the three months
ended June 30, 2002 as compared  to  $9,000  for the comparable three months of
the prior year. This increase is the result of  interest  on new long-term debt
and  notes payable that the Company incurred in late 2001 and  in  2002.  As  a
result  of the Company's working capital deficit of $742,000, interim financing
necessary  to  settle  operating  liabilities  arising  from  the  assembly and
installation  of  the  Ford  gear  cleaning  system  as  well as to cover other
operating  expenses is anticipated to be expensive if adequate  equity  capital
cannot be raised.  Should the Company be required to finance anticipated future
operations with debt  as  opposed  to  equity,  future  interest expense can be
expected to increase significantly.

Six months ended June 30, 2002 compared to six months ended June 30, 2001

     During the six months ended June 30, 2002, revenues  increased  by 247% to
$456,000  as  compared to the six months ended June 30, 2001. Sales of machines
and accessories during the six months ended June 30, 2002 increased to $385,000
from $10,000 during  the comparable six month period of 2001, while service and
rental income decreased  41%  to  $71,000  during the six months ended June 30,
2001  from  $121,000 during the comparable period  of  2001.  The  increase  in
machine sales  is  due  to the recognition of revenue on the Ford gear cleaning
system  project.  Machine revenue  also  includes  $6,000  in  amortization  of
deferred  gains  on  sale/leaseback   transactions  originating  in  1999.   In
addition, during the six months ended June  30,  2002, orders were received and
assembly initiated on two machines for customers other  than Ford.  The Company
has  invoiced  customers  for approximately $185,000 on these  orders  but  all
revenue has been deferred until the machines are complete, shipped and accepted
by the customers.  The decrease in service and rental income is attributable to
fewer service jobs performed  during  2002  as  well  as the Company's focus on
installation  and  support of the Ford system during 2002  at  the  expense  of
potential rental opportunities.






<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

     Gross profit decreased  to  $24,000  during  the six months ended June 30,
2002 as compared to $75,000 during the comparable period  of the prior year. As
a percent of sales, gross profit decreased to 5% during the  six  months  ended
June  30,  2002  as compared to 89% during the comparable period of 2001. Gross
profits from sales  of  machines  and  accessories  increased $9,000 to $18,000
during  the  six  months ended June 30, 2002 compared to  the  comparable  2001
period. Gross profits  in  2002  include the sale of a machine to a customer in
Japan offset by a $2,000 loss on the  Ford  gear cleaning system. Gross profits
for  the comparable 2001 period relate primarily  to  the  sale  of  parts  and
accessories  as  no  machines  were sold during that period. Gross profits from
services and rental income decreased to $6,000 during the six months ended June
30, 2002 as compared to $66,000  for the comparable period of 2001. The $60,000
decrease in service and rental gross profit is the result of decreased volumes,
lower  rental and service rates obtained  on  2002  work  and  an  increase  in
depreciation expense on new equipment.

     For the six months ended June 30, 2002, general and administrative expense
increased  32%  to $405,000 from $307,000 during the comparable period of 2001.
Payroll costs increased  approximately $91,000 due, in part, to the appointment
of a Chief Engineer and a  Production  Engineer  as  well as increased employee
benefits.  Facilities rent increased $11,000 while fees  paid  to financing and
public  relations  consultants  increased $13,000.  Offsetting these  increases
were reductions of $27,000 in accounting and SEC compliance costs.

     Research and development expenses  decreased  3% to $93,000 during the six
months ended June 30, 2002 as compared to $96,000 during  the comparable period
of 2001. The $3,000 decrease in research and development expenses is the result
of  less  management and consultant time spent on the Ford project,  offset  by
increases in patent expense and general research and development.

     Selling and marketing expenses increased $43,000 to $69,000 during the six
months ended June 30, 2002 as compared to $26,000 for the comparable prior year
period. The  increase  in selling and marketing expenses is attributable to the
hiring of a Vice President  of  Sales  & Marketing in early 2002 as well as the
settlement costs associated with a dispute with a former sales representative.

     The Company's operating losses increased  by  $189,000 to $544,000 for the
six months ended June 30, 2002 from $355,000 for the  comparable  2001  period.
The  $60,000  decrease in gross profit on service and rental sales, the $98,000
increase in general  and  administrative  expenses  and the $43,000 increase in
selling and marketing expenses accounted for the increase  in operating losses.
Management anticipates incurring additional future operating losses through the
remainder of 2002.

     During the six months ended June 30, 2002, the Company  recorded  interest
income in the amount of $38,000 in connection with Shareholder notes receivable
in  the  aggregate  amount  of  approximately $1,170,000. The Shareholder notes
receivable resulted from the Company's issuance of common stock to officers and
employees during the year ended December  31,  2001.  The  Company  reported no
interest income during the six month period ended June 30, 2001.









<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

      Interest  expense  increased by $24,000 to $43,000 during the six  months
ended June 30, 2002 as compared to $19,000 for the comparable six months of the
prior year. This increase  is  the result of interest on new long-term debt and
notes payable that the Company incurred  in  late 2001 and in 2002. As a result
of  the  Company's  working  capital  deficit  of $742,000,  interim  financing
necessary  to  settle  operating  liabilities arising  from  the  assembly  and
installation  of the Ford gear cleaning  system  as  well  as  to  cover  other
operating expenses  is  anticipated  to be expensive if adequate equity capital
cannot be raised. Should the Company be  required to finance anticipated future
operations  with debt as opposed to equity,  future  interest  expense  can  be
expected to increase significantly.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

     As of June 30, 2002, the Company had cash and cash equivalents of $46,000.
During the six  months  ended  June 30, 2002, operating activities used cash of
$98,000 as compared to $249,000  during 2001. Cash used by operating activities
resulted primarily from the Company's  net  loss  reduced  by  working  capital
movements,  particularly  liquidation of balances related to the Ford contract,
as well as depreciation, amortization  and  other non-cash charges. The Company
used cash of $600 for capital expenditures during the six months ended June 30,
2002  as  compared  to  $22,000  for  2001.  The  Company  has  no  significant
commitments for future purchases of capital assets.

     Financing activities provided cash of $90,000  during the six months ended
June  30,  2002  as compared to $208,000 during 2001. Cash  has  been  provided
primarily from sale  of  Company Common Stock and, during 2002, the issuance of
notes payable to lenders.  Sales of common stock provided $128,000 and $248,000
during 2002 and 2001, respectively. Proceeds from the issuance of notes payable
were $149,000 in the first six  months  of  2002 and zero during the comparable
2001 period. Repayments on the notes were $76,000  in 2002. Payments on capital
lease obligations used cash of $36,000 and $28,000 during  2002 and 2001. Long-
term debt repayments were $17,000 in 2002 as compared to $8,000  in  2001.  The
Company  borrows  and  repays, on a revolving basis, cash advances from its two
Founders and Officers. Repayment  of  such advances totaled $61,000 and $54,000
in 2002 and 2001, respectively.

     The Company had a working capital  deficit of $742,000 and a stockholders'
deficit  of  $897,000  at  June  30,  2002. Management's  plans  for  continued
existence include a focus towards rental  and  sale  of  ice blast machines and
away from services. The Company is actively pursuing marketing arrangements for
their products in the precision, environmental and industrial cleaning markets.
These  efforts include the arrangement with Ford Motor Company  as  more  fully
described in Note 6.

     In  order  to  preserve liquidity, the Company's two founders and officers
have been paid no cash  compensation during the six months ended June 30, 2002.
Instead, during the first  half  of  2002,  as in prior periods, these officers
have sold portions of their personal holdings  of  the  Company's common stock.
During  the  six  months  ended June 30, 2002, such sales collectively  totaled
170,000 shares for the two officers.

     The Company's future success  is  dependent  upon  its  ability to achieve
profitable  operations  and generate cash from operating activities,  and  upon
obtaining additional financing.  There is no assurance that the Company will be
able to generate sufficient  cash  from  operations  or  through  the  sale  of
additional shares of common stock or additional borrowings.


<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

      The  current expansion of the Company's business demands that significant
financial resources  be  raised  to  fund capital expenditures, working capital
needs, debt service and the cash flow  deficits  expected  to be generated over
the next three to six months by operating losses. Current cash balances and the
realization of accounts receivable will not be sufficient to fund the Company's
current business plan beyond the next two months.   Consequently,  the  Company
is  currently  seeking  convertible debt and/or additional equity financing  as
well as the placement of a credit facility, in the aggregate amount of at least
$250,000,  to  fund the Company's  immediate  liquidity  needs.  Management  is
currently negotiating  with  existing shareholders as well as other individuals
and organizations in order to obtain the working capital necessary to meet both
current and future obligations  and  commitments.  To  further supplement these
activities, the Company has engaged two investment-banking  firms  to assist in
securing   funding,  with  an  objective  of  raising  at  least   $2  million.
Management is  confident  that  these efforts will produce financing to further
the growth of the Company.  Nevertheless,  there  can  be no assurance that the
Company will be able to raise additional capital on satisfactory  terms  or  at
all.  In the event that the Company is unable to obtain such additional capital
or to obtain  it  on  acceptable  terms  or  in  sufficient amounts, the impact
thereof  would  have  a  material  adverse  effect on the  Company's  business,
operating results and financial condition as  well  as  its  ability to service
debt  requirements.  The consolidated financial statements do not  include  any
adjustments that might result from the outcome of this uncertainty.

     As disclosed in an  explanatory  paragraph  in  the  Report of Independent
Accountants   on  the  Company's  December  31,  2001  consolidated   financial
statements included in the Annual Report, the foregoing liquidity and financial
conditions raise substantial doubt about the Company's ability to continue as a
going concern.

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

     The Company  believes  that  it  does  not  have  any material exposure to
interest  or  commodity  risks.   The  Company  does  not  own  any  derivative
instruments and does not engage in any hedging transactions.

                         PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     Certain vendors of the Company have threatened to bring legal  action  for
payment  of  overdue  amounts. One suit has been filed, however the Company has
agreed to a payment plan  with the vendor.  In addition, the Company has agreed
to  a settlement with a former  sales  representative  who  was  attempting  to
collect  disputed  commissions.   All reasonable amounts relating to these past
due and disputed liabilities have been  accrued  in  the accompanying financial
statements.

ITEM 2. CHANGES IN SECURITIES

   During the six months ended June 30, 2002, the Company issued 853,333 shares
of common stock through private placements under Section 4(2) of the Securities
Act in the aggregate amount of $127,962 to five investors,  all  of  whom  were
accredited  investors  and/or existing shareholders of the Company.  During the
same period, under Section  4(2)  of  the  Securities  Act  the  Company issued
277,000 shares of common stock and 100,000 warrants to four investors for goods
and  services having a fair market value of $42,566.  All common shares  issued
above are restricted subject to Rule 144.

<PAGE>
                           UNIVERSAL ICE BLAST, INC.
                                  FORM 10-QSB

ITEM 6. EXHIBITS AND REPORTS ON FORM 8K.

(a) Exhibits - None.



(b) Reports  on Form 8K. - On April 8, 2002 the  Company filed a report on Form
8-K disclosing that Moss Adams, LLP had declined to stand for re-appointment as
the Company's independent  accountants.   This  report  also disclosed the fact
that  the  Company  had appointed Williams & Webster, P.S. as  its  independent
accountants.






SIGNATURE

   In accordance with  the  requirements  of  the  Exchange Act, the registrant
caused  this  report to be signed on its behalf by the  undersigned,  thereunto
duly authorized.


                                   UNIVERSAL ICE BLAST, INC.



                                   By:       /S/   RORY CLARKE
                                   -----------------------------------
                                     RORY CLARKE
                                     CHIEF EXECUTIVE OFFICER







INDEX TO EXHIBITS

(99)  OTHER EXHIBITS

99.1 Certification  by  Rory Clarke pursuant to 18 U.S.C. Section 1350, as
     adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.













<PAGE>