SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB

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

                      For Quarter Ending December 31, 2002

                       Commission File Number 000-26375


                             NetSalon Corporation
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         Delaware                                       84-1472120
------------------------                        ---------------------------
(State of incorporation)                        (I.R.S. Employer ID Number)


           2235 1st Street, Suite 216, Fort Meyers, Florida 33901
         ---------------------------------------------------------
         (Address of principal executive offices)        (zip code)


                                (941) 791-3300
              ----------------------------------------------------
              (Registrant's telephone number, including area code)






Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of Securities Exchange Act of 1934
during the preceding 12 months (or for such a shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                                Yes [ X ] No [ ]




As of February 17, 2003, 19,630,900 common shares, $.001 par value per share,
were outstanding.








<PAGE>
                             NETSALON CORPORATION

                                     INDEX

                                                                 Page
Part I FINANCIAL INFORMATION

   Item 1.

      Consolidated Balance Sheet as of December 31, 2002
       (Unaudited) and June 30, 2002                              3

      Consolidated Statements of Operations for the
       three months ended December 31, 2002 and
       December 31, 2001 (unaudited)                              4

      Consolidated Statements of Operations for the
       six months ended December 31, 2002 and
       December 31, 2001 (unaudited)                              5

      Consolidated Statement of Cash Flows for the
       six months ended December 31, 2002 and
       December 31, 2001 (Unaudited)                              6

      Notes to Unaudited Consolidated Financial Statements        7

   Item 2.  Management's Discussion and Analysis of Financial
      Condition and Results of Operations                         9

PART II - OTHER INFORMATION

   Item 1. Legal Proceedings                                      11

   Item 2. Changes in Securities                                  11

   Item 3. Default on Senior Securities                           11

   Item 4. Submission of Matters to a Vote of Security Holders    11

   Item 5. Other Information                                      11

   Item 6. Exhibits and Reports on Form 8-K                       11

SIGNATURES                                                        12
















                                       2

                            NETSALON CORPORATION
                         Consolidated Balance Sheet

                                                December 31,    June 30,
                                                    2002         2002
                                                (Unaudited)   (See Note 1)
                                                -----------   -----------
                                   ASSETS

Current assets:
   Cash                                         $         -   $    12,660
   Accounts receivable                               28,780         1,555
                                                -----------   -----------
                                                     28,780        14,215

Capitalized software costs, net of accumulated
amortization of $12,163                               2,795         7,069

Property and equipment, net of accumulated
 depreciation of $29,867                              7,045        14,202
Other                                                 2,100             -
                                                 ----------   -----------
     Total Assets                                $   40,720   $    35,486
                                                 ==========   ===========

                  LIABILITIES AND SHAREHOLDERS' (DEFICIT)

Current liabilities:
   Accounts payable and accrued expenses         $   520,162   $  458,908
   Checks in excess of bank balance                    4,192
   Deferred revenue                                        -       10,440
   Notes payable                                     534,445      534,445
   Loans payable to shareholders                     411,793      341,243
                                                 -----------   ----------
                                                   1,470,592    1,345,036
                                                 -----------   ----------
     Total Liabilities                             1,470,592    1,345,036
                                                 -----------   ----------

Commitments and contingencies (Note 2)                     -            -

Stockholders' (Deficit)
   Preferred stock - 20,000,000 shares authorized;
     $.001 Par; no shares issued                           -            -
   Common stock - 100,000,000 shares authorized;
     $.001 Par; 19,630,900 shares issued              19,630       19,630
   Additional paid-in capital                      1,236,749    1,236,749
   Accumulated deficit                            (2,686,251)  (2,565,929)
                                                 -----------   ----------
     Total Stockholders' (Deficit)                (1,429,872)  (1,309,550)
                                                 -----------   ----------
Total Liabilities and Stockholders' (Deficit)    $    40,720   $   35,486
                                                 ===========   ==========

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


                                      3

                             NETSALON CORPORATION
                     Consolidated Statements of Operations
                                 (Unaudited)

                                            For the            For the
                                          Three Months      Three Months
                                             Ended             Ended
                                          December 31,      December 31,
                                              2002              2001
                                        --------------     -------------

Revenue                                        131,808           231,185
Cost of revenue                                 23,003           114,498
                                           -----------       -----------
Gross margin                                   108,805           116,687

Operating expenses:
   Research and development                      8,381                 -
   General and administrative expenses         174,961           259,124
   Selling and marketing                         1,102            46,942
                                           -----------       -----------
                                               184,444           306,066
                                           -----------       -----------
Operating income (loss)                        (75,639)         (189,379)
                                           -----------       -----------

Other income and (expenses):
   Interest income                                  29                 -
   Disposition of fixed assets                                         -
   Interest expense                            (21,837)          (16,782)
                                           -----------       -----------
                                               (21,808)          (16,782)
                                           -----------       -----------
Net (loss)                                 $   (97,447)      $  (206,161)
                                           ===========       ===========

Basic and diluted earnings per share:
   Basic loss per common share             $    (0.005)      $    (0.011)
                                           ===========       ===========
   Weighted average common shares
   outstanding                              19,630,900        19,630,900
                                           ===========       ===========
   Diluted earnings per common share       $    (0.005)      $    (0.011)
                                           ===========       ===========
   Weighted average diluted common
   shares outstanding                       19,630,900        19,630,900
                                           ===========       ===========





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

                                       4



                             NETSALON CORPORATION
                     Consolidated Statements of Operations
                                 (Unaudited)

                                            For the           For the
                                          Six Months         Six Months
                                             Ended             Ended
                                         December 31,       December 31,
                                              2002              2001
                                         -------------      ------------

Revenue                                        350,709           382,743
Cost of revenue                                 73,829           133,379
                                           -----------       -----------
Gross margin                                   276,880           249,364

Operating expenses:
   Research and development                     15,101            44,618
   General and administrative expenses         334,367           416,869
   Selling and marketing                         8,165           124,069
                                           -----------       -----------
                                               357,633           585,556
                                           -----------       -----------
Operating income (loss)                        (80,753)         (336,192)
                                           -----------       -----------

Other income and (expenses):
   Interest income                                  74                 -
   Disposition of fixed assets                                    (2,933)
   Interest expense                            (39,643)          (34,384)
                                           -----------       -----------
                                               (39,569)          (37,317)
                                           -----------       -----------
Net (loss)                                 $  (120,322)      $  (373,509)
                                           ===========       ===========

Basic and diluted earnings per share:
   Basic loss per common share             $    (0.006)      $    (0.019)
                                           ===========       ===========
   Weighted average common shares
   outstanding                              19,630,900        19,630,900
                                           ===========       ===========
   Diluted earnings per common share       $    (0.006)      $    (0.019)
                                           ===========       ===========
   Weighted average diluted common
   shares outstanding                       19,630,900        19,630,900
                                           ===========       ===========


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

                                       5



                            NETSALON CORPORATION
                    Consolidated Statements of Cash Flows
                                 (Unaudited)

                                                For the           For the
                                              Six Months        Six Months
                                                 Ended             Ended
                                              December 31,      December 31,
                                                  2002              2001
                                              -----------       -----------

Net loss                                      $  (120,322)      $  (373,509)

Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
  Depreciation of property and equipment            8,893             8,266
  Loss on asset disposition                             -             2,933
  Amortization of capitalized software costs        4,274             6,362
Changes in operating assets and liabilities:
  (Increase) decrease in accounts receivable      (27,225)         (239,336)
  Decrease in prepaid expenses                          -               918
  (Increase) decrease in software licenses              -            91,200
  Increase in accounts payable and accrued
   expenses                                        61,254           231,053
  Increase (decrease) in deferred revenue         (10,440)          235,110
  Increase in accrued compensation to
   officers (shareholders)                         70,550            90,000
  Other                                             2,092            (3,922)
                                              -----------       -----------
     Net cash provided by (used in)
     operating activities                         (10,924)           39,075
                                              -----------       -----------
Cash flows from investing activities:
  Capitalized software costs                            -           (14,796)
  Disposition of furniture                                          (12,172)
  Purchase of equipment                            (1,736)             (490)
                                              -----------       -----------
     Net cash provided by (used in)
     investing activities                          (1,736)          (27,458)
                                              -----------       -----------
Cash flows from financing activities:
  Repayments of shareholder loan                        -           (11,293)
                                              -----------       -----------
     Net cash provided by (used in)
     financing activities                               -           (11,293)
                                              -----------       -----------
Increase (decrease) in cash                       (12,660)              324

Cash, beginning of period                          12,660                 -
                                              -----------       -----------
Cash, end of period                           $         -       $       324
                                              ===========       ===========
Additional cash flow disclosures
  Interest paid                               $         -       $    20,000
Noncash Transactions
  Purchase of office furniture and
   Fixtures through direct loan installment   $         -       $    11,293

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

                                     6

                              NETSALON CORPORATION
                   Notes to Consolidated Financial Statements
                                 (Unaudited)
                              December 31, 2002

1.   Unaudited Statements

     The balance sheet as of December 31, 2002, the statements of operations
and the statements of cash flows for the three and six month periods ended
December 31, 2002 and 2001, have been prepared by NetSalon Corporation
(Company) without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission.  Certain information and footnote
disclosures, normally included in the financial statements prepared in
accordance with accounting principles generally accepted in the United States
of America, have been condensed or omitted as allowed by such rules and
regulations, and the Company believes that the disclosures are adequate to
make the information presented not misleading.  In the opinion of management,
all adjustments (which include only normal recurring adjustments) necessary to
fairly present the financial position, results of operations and changes in
financial position at December 31, 2002 and for all periods presented, have
been made.

     It is suggested that these statements be read in conjunction with the
June 30, 2002 audited financial statements and the accompanying notes included
in the Company's Annual Report on Form 10-KSB, filed with the Securities and
Exchange Commission.

2.   Calculation of Earnings (Loss) Per Share

     The earnings (loss) per share is calculated by dividing the net income
(loss) to common stockholders by the weighted average number of common shares
outstanding.

3.   Basis of Presentation - Going Concern

     The accompanying financial statements have been prepared in conformity
with generally accepted accounting principles, which contemplates continuation
of the Company as a going concern.  However, the Company has suffered
recurring losses from operations, has a stockholders' deficiency and a
negative working capital that raise substantial doubts about its ability to
continue as a going concern.  Management is attempting to raise additional
capital.

     In view of these matters, realization of certain assets in the
accompanying balance sheet is dependent upon continued operations of the
Company which, in turn, is dependent upon the Company's ability to meet its
financial requirements, raise additional capital as needed, and the success of
its future operations.  Management believes that its ability to raise
additional capital provides an opportunity for the Company to continue as a
going concern.







                                    7


                           NETSALON CORPORATION
                 Notes to Consolidated Financial Statements
                               (Unaudited)
                            December 31, 2002
4.   Subsequent Event

     Effective January 24, 2003 the Company's Board of Directors approved an
agreement that provided for the cancellation of 7,741,668 shares of the
Company's common stock and the issuance of 88,060,768 new shares of the
Company's common stock.  In addition, the Company has agreed to obtain
conversions, releases or other agreements such that the outstanding
liabilities, obligations and other debts, direct or indirect, contingent or
existing, shall be no more than $340,000.  The Company has agreed to change
its name to "Military Communications Technologies, Inc.," elect a specified
list of five directors and cause its shareholders to increase the authorized
common stock to 200,000,000.  Subsequent to the increase in authorized common
stock, an additional 19,293,320 shares of common stock of the Company shall be
issued.  The transaction results in a change in control of the Company.





































                                      8




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

THREE MONTHS ENDED DECEMBER 31, 2002 VS. THREE MONTHS ENDED DECEMBER 31, 2001

     During the three months ended December 31, 2002, the Company reported
revenue of $131,808 compared to revenue of $231,185 during the three months
ended December 31, 2001.

     During the three months ended December 31, 2002, the cost of revenue was
$23,003 or 17.5% of sales, compared to $114,498 or 49.5% of sales during the
three months ended December 31, 2001.

     Operating expenses for the three months ended December 31, 2002 were
$184,444 compared to $306,066 for the three months ended December 31, 2001.

     The net loss was $75,639 in the three months ended December 31, 2002,
compared to $189,379 in the three months ended December 31, 2001.

SIX MONTHS ENDED DECEMBER 31, 2002 VS. SIX MONTHS ENDED DECEMBER 31, 2001

     During the six months ended December 31, 2002, the Company reported
revenue of $350,709 compared to revenue of $382,743 during the six months
ended December 31, 2001.

     During the six months ended December 31, 2002, the cost of revenue was
$73,829 or 21.0% of sales, compared to $133,379 or 34.8% of sales during the
six months ended December 31, 2001.

     Operating expenses for the six months ended December 31, 2002 were
$357,633 compared to $585,556 for the six months ended December 31, 2001.

     The net loss was $80,753 in the six months ended December 31, 2002,
compared to $336,192 in the six months ended December 31, 2001.

     The Company's future existence is dependent upon maintaining its present
team of officers, directors, staff and independent contractors, closing those
contracts now is negotiation, or alternatively to seek additional cash.  If no
contracts are closed in the quarter ending March 31, 2003, the Company will
have to raise additional capital in order to survive.

     The Company has managed to lower costs, increase revenues and reduce debt
over the last fiscal year.  As we move forward, NetSalon will continue to
focus on residual fee based offerings with more substantial clients, reducing
the dependence of the business on new client acquisition.  That focus in
addition to an aggressive effort to procure new strategic alliances and
programs in the MLM Industry will enable NetSalon to continue its ability to
perform and with time increase shareholder value.

     The Company has and will consider effective merger and acquisition
opportunities provided they have a reasonable chance of increasing shareholder
value.







                                      9


LIQUIDITY AND CAPITAL RESOURCES

     As of December 31, 2002, the Company had a working capital deficit of
$1,441,812.  The Company's future existence is dependent upon closing those
contracts now in negotiation, or alternatively to seek additional capital.  It
would be difficult for the Company to raise additional capital, particularly
in view of the Company's poor financial condition and the reluctance of the
participants in the equity markets to invest in speculative ventures.


















































                                   10



                        PART II - 0THER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

     None.

ITEM 2.  CHANGES IN SECURITIES.

     None.

ITEM 3.  DEFAULTS OF SENIOR SECURITIES.

     None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     None.

ITEM 5.  OTHER INFORMATION.

     None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

     None.






































                                   11

                                  SIGNATURES

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

                                   NETSALON CORPORATION



                                   By:/s/ Lance A. Perry
Date:  February 20, 2003              Lance A. Perry, President


                               CERTIFICATIONS

     I, Lance A. Perry, certify that:

     1.     I have reviewed this quarterly report on Form 10-QSB of NetSalon
Corporation;

     2.     Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

     3.     Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;

     4.     I am responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)
for the registrant and have:

            (a)  designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report is
being prepared;

            (b)  evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date
of this quarterly report (the "Evaluation Date"); and

            (c)  presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

     5.     I have disclosed, based on my most recent evaluation, to the
registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):

            (a)  all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for
the registrant's auditors any material weaknesses in internal controls; and



                                      12


            (b)  any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
controls; and

     6.     The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

Dated: February 20, 2003


                                  /s/ Lance A. Perry
                                  Lance A. Perry
                                  President
                                  (Principal Executive Officer)
                                  (Principal Financial Officer)


                 CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND
                         CHIEF FINANCIAL OFFICER OF
                            NETSALON CORPORATION
                     PURSUANT TO 18 U.S.C. SECTION 1350


     I certify that, to the best of my knowledge, the Report on Form 10-QSB of
NetSalon Corporation for the quarter ended December 31, 2002:

     (1) complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and

     (2) the information contained in the Report fairly presents, in all
material aspects, the financial condition and results of operations of
NetSalon Corporation.


                                        /s/ Lance A. Perry
                                        Lance A. Perry
                                        Chief Executive Officer
                                        and Principal Financial Officer
                                        February 20, 2003

















                                      13