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 March 31, 2004

                        Commission File Number 000-26375


                   Military Communications Technologies, Inc.
             ------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


     Delaware                                        84-1472120
  (State or other jurisdiction of            (IRS Employer Identification
    incorporation or organization)                     Number)


            19200 Von Karman Ave, Suite 500, Irvine California 92612
            ---------------------------------------------------------
                    (Address of principal executive offices)


                                 (949) 622-5508
              ----------------------------------------------------
                           (Issuer's telephone number)


                    Military Communications Technologies Inc
          -------------------------------------------------------------

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15(d) of 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  May 14, 2004, 138,532,678 common shares, $.001 par value per share, were
outstanding.


<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.

                                      INDEX

                                                                   Page
Part  I    FINANCIAL  INFORMATION

   Item  1.

      Balance  Sheet  as  of  March  31,  2004
      (Unaudited)  and  June  30,  2003                              2

      Statements  of  Operations  for  the
      Three  months  ended  March  31,  2004  and
      March  31,  2003  (Unaudited)                                  3

      Statements  of  Operations  for  the
      Nine  months  ended  March  31,  2004  and
      March  31,  2003  (Unaudited)                                  4

     Statement  of  Cash  Flows  for  the
      Nine  months  ended  March  31,  2004  and
      March  31,  2003  (Unaudited)                                  5

      Notes  to  Unaudited  Financial  Statements                    6

   Item  2.  Management's Discussion and Analysis of Financial
                Condition and Results of Operations                 11

   Item  3.  Controls and Procedures                                14

PART  II  -  OTHER  INFORMATION

   Item  1.  Legal  Proceedings

   Item  2.  Changes  in  Securities

   Item  3.  Default  on  Senior  Securities

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

   Item  5.  Other  Information

   Item  6.  Exhibits  and  Reports  on  Form  8-K

SIGNATURES



<PAGE>
                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                                  Balance Sheet

<TABLE>
<CAPTION>
<S>                                                                        <C>           <C>
                                                                           Mar 31        June 30,
                                                                           2004          2003
                                                                           ------------  ------------
                                                                           (Unaudited)   See Note 1
ASSETS

Current Assets
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $        70   $         -
                                                                           ------------  ------------
Total Current Assets. . . . . . . . . . . . . . . . . . . . . . . . . . .           70             -
                                                                           ------------  ------------

Non-Current Assets
Investment in Military SDR Technologies Pty Ltd,. . . . . . . . . . . . .            -             -
     Less Valuation Allowance of $107,354
Computer Equipment,
     Less Accumulated Depreciation of $1,489 and $744 respectively. . . .        7,445
                                                                           ------------  ------------
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $     7,515   $         -
                                                                           ============  ============

LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities:
Accounts payable and accrued expenses . . . . . . . . . . . . . . . . . .  $   605,260   $   581,431
Note Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      177,692       177,692
Advances from shareholders. . . . . . . . . . . . . . . . . . . . . . . .      200,270       142,000
                                                                           ------------  ------------
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .      983,222       901,123
                                                                           ============  ============

Commitments and contingencies (Notes 4,5,6,7)

Shareholders' (deficit):
   Preferred stock - 20,000,000 shares authorized; $0.001 Par; no shares
issued and outstanding. . . . . . . . . . . . . . . . . . . . . . . . . .            -             -
   Common Stock - $0.001 Par Value, 200,000,000 shares authorized;
   138,532,678 and 125,843,329 shares issued and outstanding. . . . . . .      138,532       125,843
Warrants Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       62,061             -
Additional paid in capital. . . . . . . . . . . . . . . . . . . . . . . .    3,811,405     2,290,443
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . .   (4,987,705)   (3,317,409)
                                                                           ------------  ------------
Total Shareholders (Deficit). . . . . . . . . . . . . . . . . . . . . . .     (975,707)     (901,123)
                                                                           ------------  ------------

Total Liabilities and Shareholders (Deficit). . . . . . . . . . . . . . .  $     7,515   $         -
                                                                           ============  ============

</TABLE>


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

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                       Statement of Operations (Unaudited)


<TABLE>
<CAPTION>
<S>                                                   <C>                 <C>
                                                            For Three Months
                                                      Mar 31              Mar 31,
                                                      2004                2003
                                                      ------------------  -------------

Operating Expenses
           General and Administrative Expenses . . .             25,283
           Professional Fees . . . . . . . . . . . .            673,691              -
           Directors Fees. . . . . . . . . . . . . .             18,750              -
           Sales and Marketing Expenses. . . . . . .             35,347              -
                                                      ------------------  -------------
Total Operating Expenses . . . . . . . . . . . . . .            753,071              -
                                                      ------------------  -------------

Net Operating (Loss) . . . . . . . . . . . . . . . .           (753,071)             -
                                                      ------------------  -------------

Other Income and (Expenses)
     Depreciation Expense. . . . . . . . . . . . . .               (744)             -
     Interest Expense. . . . . . . . . . . . . . . .             (4,442)             -
                                                      ------------------  -------------

Net (Loss) before Discontinued Operations. . . . . .           (758,257)             -

Loss from Discontinued Operations. . . . . . . . . .                  -       (112,997)
                                                      ------------------  -------------

Net (Loss) . . . . . . . . . . . . . . . . . . . . .  $        (758,257)  $   (112,997)
                                                      ==================  =============


 Basic loss per common share . . . . . . . . . . . .  $            (.01)  $        Nil
 Weighted average common shares outstanding. . . . .        130,595,253    101,000,000

 Diluted earnings per common share . . . . . . . . .  $            (.01)  $        Nil
 Weighted average diluted common shares outstanding.        130,595,253    101,000,000

</TABLE>


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

<PAGE>
                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                       Statement of Operations (Unaudited)

<TABLE>
<CAPTION>
<S>                                                   <C>                <C>           <C>
                                                             For Nine Months
                                                      Mar 31             Mar 31,       From July 1, 2003
                                                      2004               2003          (New Development)
                                                                                       Through Mar 31, 2004
                                                      -----------------  ------------  -------------------

Operating Expenses
           General and Administrative Expenses . . .           149,774             -              149,774
           Professional Fees . . . . . . . . . . . .         1,360,177             -            1,360,177
           Directors Fees. . . . . . . . . . . . . .            53,750             -               53,750
           Sales and Marketing Expenses. . . . . . .            91,812             -               91,812
                                                      -----------------  ------------  -------------------
Total Operating Expenses . . . . . . . . . . . . . .         1,655,513             -            1,655,513
                                                      -----------------  ------------  -------------------

Net Operating (Loss) . . . . . . . . . . . . . . . .        (1,655,513)            -           (1,655,513)
                                                      -----------------  ------------  -------------------

Other Income and (Expenses)
     Depreciation Expense. . . . . . . . . . . . . .            (1,489)            -               (1,489)
     Interest (Expense). . . . . . . . . . . . . . .           (13,327)            -              (13,327)
     Interest Income . . . . . . . . . . . . . . . .                33             -                   33
                                                      -----------------  ------------  -------------------

Net (Loss) before Discontinued Operations. . . . . .        (1,670,296)            -           (1,670,296)

Loss from Discontinued Operation . . . . . . . . . .                        (233,320)
                                                      -----------------  ------------  -------------------

Net (Loss) . . . . . . . . . . . . . . . . . . . . .  $     (1,670,296)  $  (233,320)  $       (1,670,296)
                                                      =================  ============  ===================



 Basic loss per common share . . . . . . . . . . . .  $           (.01)  $       Nil   $             (.01)
 Weighted average common shares outstanding. . . . .       119,135,365    19,630,900          119,135,365

 Diluted earnings per common share . . . . . . . . .  $           (.01)  $       Nil   $             (.01)
 Weighted average diluted common shares outstanding.       119,135,365    46,754,000          119,135,365
</TABLE>


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

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                       Statement of Cash Flows (Unaudited)


<TABLE>
<CAPTION>
<S>                                                       <C>                <C>                  <C>
                                                                   For Nine Months                From July 1, 2003
                                                          Mar 31             Mar 31               (New Development)
                                                          2004               2003                 Through Mar 31, 2004
                                                          -----------------  -------------------  ----------------------

Net Loss . . . . . . . . . . . . . . . . . . . . . . . .  $     (1,670,296)  $         (233,320)  $          (1,670,296)

Adjustments to reconcile net loss to cash
   used in operating activities:
  Depreciation of property and equipment . . . . . . . .             1,489               13,381                   1,489
  Amortization of capitalized software costs . . . . . .                                  6,411                       -
  Shares issued for Services . . . . . . . . . . . . . .         1,074,370                    -               1,074,370

Change in assets and liabilities:
  (Increase) decrease in advances, related party
  Increase in accounts payable and accrued expenses. . .           394,771              137,288                 394,771
  Increase in officer (shareholder) compensation payable                                 94,863
  (Decrease) in Deferred revenue . . . . . . . . . . . .                                (10,440)                      -
  Increase (Decrease) in Accounts Receivable . . . . . .                                 (3,301)
Other. . . . . . . . . . . . . . . . . . . . . . . . . .                                 (3,100)

                                                          -----------------  -------------------  ----------------------
Net cash provided by (used in) operating activities. . .          (199,666)               1,782                (199,666)
                                                          -----------------  -------------------  ----------------------

Cash Flows From Investing Activities:
 Purchase of property and equipment. . . . . . . . . . .            (8,934)              (3,450)                 (8,934)
                                                          -----------------  -------------------  ----------------------

 Net cash provided by (used in) investing activities . .            (8,934)              (3,450)                 (8,934)
                                                          -----------------  -------------------  ----------------------

Cash Flows From Financing Activities
Cash Received from sale of shares. . . . . . . . . . . .           150,400                    -                 150,400
Shareholder loan advances. . . . . . . . . . . . . . . .            58,270                    -                  58,270
Shareholder loan repayments. . . . . . . . . . . . . . .                                      -
                                                          -----------------  -------------------  ----------------------

Net Cash Provided By (Used In) Financing Activities. . .           208,670                    -                 208,670
                                                          -----------------  -------------------  ----------------------
`
Increase (decrease) in cash. . . . . . . . . . . . . . .  $             70   $           (1,668)  $                  70
Cash, beginning of period. . . . . . . . . . . . . . . .                                 12,660                       -
                                                          -----------------  -------------------  ----------------------
Cash, end of the period. . . . . . . . . . . . . . . . .  $             70   $           10,992   $                  70
                                                          =================  ===================  ======================

Supplemental disclosure of cash flow information

Liabilities converted to common stock. . . . . . . . . .  $        370,942                        $             370,942
                                                          -----------------  -------------------  ----------------------

</TABLE>

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

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2004

1.     Unaudited  Statements
--     ---------------------

The  balance  sheet  as  of March 31, 2004, the statements of operations and the
statements  of  cash flows for the three months periods ended March 31, 2004 and
2003,  have  been  prepared  by  Military  Communications Technologies Inc. (the
"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  March 31, 2004 and for all periods presented, have been
made.

It  is  suggested that these statements be read in conjunction with the June 30,
2003  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.     Operations  and  business  description
--     --------------------------------------

The  Company  was initially incorporated in the State of Texas on March 18, 1994
under  the  name  of  American/National  Trucking,  Inc.  On  August 28, 1998, a
Colorado corporation was merged into the Company and the name of the Company was
changed to Makepeace Capital Corp.  Makepeace specialized in the contracting and
management  of  the  construction of commercial properties and retail homes.  On
August  17,  2000 the Company entered into a share exchange agreement to acquire
99%  of  NetSalon  Corporation ("Legacy NSLN"), whereby MKPC changed its name to
NetSalon  and  Legacy  NetSalon continued operating as a subsidiary with the new
Corporate  name  of  NetSalon  I,  Inc.  ("NSLN  I").

In accordance with the business combination agreement, Makepeace transferred its
existing  assets  and liabilities to its former majority shareholder.  Makepeace
had  no assets or liabilities as of the business combination date.  As required,
the  business  combination  was  accounted  for as a reverse acquisition whereby
Legacy  NetSalon was defined, as the accounting acquirer while Makepeace was the
legal  acquirer.

Because  of  the  reverse  acquisition  and  in accordance with SEC regulations,
comparative information does not reflect Makepeace Capital Corp. operations, but
reflects  Legacy  NetSalon  operations.

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2004

Legacy  NetSalon  originally  maintained a calendar year accounting period while
Makepeace  maintained  a fiscal year accounting period ending on June 30 of each
year.  The  new  entity,  Military  Communications  Technologies  Inc., formerly
NetSalon  Corporation  is  keeping  the  same  accounting  period  as Makepeace.

Legacy  NetSalon  began  operations  in  November 1998 developing internet-based
technologies  and had reached a point of technical feasibility with its products
by  December  31,  2000.  During  2000,  Legacy  NetSalon  emerged  from  its
developmental  stage,  entered  into  a business combination with Makepeace, and
established  itself  in the marketplace obtaining customers and establishing its
business  model.

On  December  2,  2002,  the  Company entered into an Acquisition Agreement with
Global Investment Fund Pty. Ltd., an Australian corporation, which resulted in a
change  of  control  of  the  Company as Global shareholders acquired 88% of the
NetSalon  common  stock  and  appointed  a  majority  of  the  directors.  Upon
completion  of  the  acquisition  by  Global,  the  Company  changed its name to
Military  Communications  Technologies,  Inc.  and  commenced  operating its new
telecommunications  business  as  more  fully  set  forth  below.

For  the  financial year ended June 30, 2003, the primary business was conducted
through  the Company's wholly owned subsidiary, NetSalon I Inc.  This subsidiary
was  primarily  an  enterprise  application  development  company  providing
internet-based  applications  for affinity and direct sales companies.  NetSalon
also  provided  custom web development, database design, multi-media application
development  and  other  consulting  services.

On  September  12,  2003  the  Company entered into an agreement with two former
officers  and  directors  of  the  Company  effectuating  a management buyout of
NetSalon  I  Inc. The agreement was effective June 30, 2003, and resulted in the
Company  assuming  the liabilities of NSLN I while the operating assets remained
with  the  subsidiary.

On  February  11,  2004,  management  announced  that the Company had become the
marketing  and distribution arm for Military SDR Technologies Pty Ltd ("MSDRT").
Under  the terms of the Agreement, the Company is appointed the exclusive global
sales  agent  for MSDRT and its core products, SpectruCell and PC4.  The Company
will  receive  a  commission  of  25%  of  the  gross  sales.

On  March  11,  2004,  management announced that the Company had entered into an
agreement  to  purchase  20%  of  Australian  based,  Advanced  Power Management
(Australia)  Pty  Ltd.  Under  the terms of the transaction, which are yet to be
finalized,  the  Company  established  a  wholly  owned  subsidiary  in the USA,
Advanced  Power  Management  (USA)  Inc.  The subsidiary will have the exclusive
rights  to  market  products  developed  by  ADM  AU  into the Central and North
American  market.

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2004

3.     Calculation  of  Earnings  (Loss)  Per  Share
--     ---------------------------------------------

Earnings  (or  loss)  per  share  ("eps")  are calculated in accordance with the
provisions  of  SFAS  No.  128,  Earnings  Per  Share. SFAS No. 128 requires the
Company  to  report  both  basic  earnings  per  share,  which  is  based on the
weighted-average  number  of common shares outstanding, and diluted earnings per
share,  which  is  based  on  the  weighted-average  number  of  common  shares
outstanding  plus all dilutive potential common shares outstanding, except where
the  effect  of their inclusion would by anti-dilutive (i.e., in a loss period).
Potentially dilutive shares of 4,500,000 were not included in the calculation of
diluted  loss  per share for the period ended March 31, 2004, as their inclusion
would  have  been  anit-dilutive.

4.     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.

5.     Investment  in  Unconsolidated  Affiliate
--     -----------------------------------------

On  January  30  2003,  the  Company purchased 15% of the equity of Military SDR
Technologies  Pty  Ltd, an Australian private company.  In consideration for the
purchase  the  Company  issued shares of the Company's outstanding common stock.
Due  to  the  uncertainties  with  respect  to valuation of this investment, the
Company  has  recorded  a  valuation  allowance  for  the  total  investment.  A
contingency exists with respect to this matter, the ultimate resolution of which
cannot  presently  be  determined.

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                    Notes to Financial Statements (Unaudited)
                                December 31, 2003

6.     Common  Stock
--     -------------

On  June  29,2003,  the Company issued 400,000 shares of restricted common stock
for  services  valued  at  $39,600  and  $400  cash.

On  October  8,  2003  the  Company  issued  100,000  shares  to  an  entity  in
consideration  for  $30,000  in  professional  services.

On  November  27,  2003  the  Company issued 500,000 shares of restricted common
stock  and 1,500,000 warrants to an equity investor in consideration for $50,000
cash.  See  note  7.

On December 1, 2003 the Company entered a contract with an entity for investment
banking  and  advisory  services.  Under  the  terms of the contract the Company
issued 250,000 shares of restricted common stock for services valued at $25,000.

On  December  12,  2003  the  Board  approved  performance  bonuses  for  three
individuals  for  a  total  of  1,300,000  shares  valued  at  $169,000.

On  December  31,  2003 the Company issued 3,001,000 shares of restricted common
stock  to  five  individuals  in  exchange  for  accrued  compensation  totaling
$300,100.

On  December  31,  2003  the  Company issued to two directors 125,000 restricted
shares  respectively  for  their  services  as  Directors  of  the  Company.

On  December  31,  2003 the Company issued 708,421 shares of free trading common
stock  to  its  legal counsel in exchange for accrued Legal Expenses of $70,842.

On January 1, 2004, the Company issued 200,000 shares of restricted common stock
to  an  individual  in  exchange  for  accrued  compensation  valued at $28,000.

On  March 15, 2004 the Board approved the issuance of 3,200,000 shares of common
stock  for  six  entities  for  future professional services valued at $384,000.

On March 15, 2004 the Company issued 200,000 shares of free trading common stock
to  its  legal  counsel  in  exchange  for  accrued  Legal  Expenses of $24,000.

On March 15, 2004, the Board approved the issuance of 1,050,000 shares of common
stock  for  an  individual for accrued compensation valued at $40,000 and future
services  valued  at  $86,000.

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2004

On  March 15, 2004 the Board approved the issuance of 5,000,000 shares of common
stock  to  the management and consultants of the Company under an Employee Share
Plan.  Please  see  Note  11.

On  March 31, 2004, the Company issued 251,428 shares of restricted common stock
to  an  individual  in  exchange  for  accrued  compensation  valued at $25,143.

On  March  31,  2004,  the  Company issued to three directors 187,500 restricted
shares  respectively  for  their  services  as  Directors  of  the  Company.

7.     Stock  Purchase  Warrants
--     -------------------------

On  November  26,  2003,  the Company issued warrants to two equity investors in
connection with an equity offering in which the Company raised $150,000.  Series
A,  Series  B  and  Series  C warrants were issued to the investor entitling the
investor  to  purchase an aggregated 4,500,000 shares of restricted common stock
with exercise prices of $.20, $.35 and $.50, all of which expire on November 26,
2005.

The  proceeds  from  the  sale  of stock were allocated between the warrants and
common  stock.  The  estimated  fair  value  of  the  warrants  of  $190,554 was
determined  using  the  Black-Scholes  option-pricing  model.  The warrants were
allocated  $62,061  of  the  net  proceeds of the sale of stock, and $87,939 was
allocated  to  common  stock  and  additional  paid  in  capital.

The  following  table  summarizes  information  about  warrants  outstanding  at
December  31,  2003:

                                              Weighted-Average
                           Warrants          Remaining  Contractual
     Exercise  Price       Outstanding          Life  in  Years

          .20               1,500,000               1.88
          .35               1,500,000               1.88
          .50               1,500,000               1.88

8.     Commitments  and  Contingencies
--     -------------------------------

On  July  18, 2003 the Company entered into an Investor Relations agreement with
an  entity for a term of six-months, whereby the entity would provide consulting
services in exchange for 400,000 shares of the Company's restricted common stock
and  a  monthly  retainer of $5,000 per month to be paid in cash or free trading
shares.  For  the six-month period ending December 31, 2003 the Company has paid
the  entity,  25,000  free  trading

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2004

common  stock and 400,000 restricted common stock. The agreement was canceled by
the  Company  as  of  February  4,  2003.

On October 8, 2003 the Company entered into an Investor Relations agreement with
an  entity, whereby the entity would provide consulting services in exchange for
100,000  shares  of  the Company's restricted common stock. The Company canceled
the  agreement  on  January 2, 2004 and is requesting the return of common stock
that  was  paid  in  consideration  for  the  contract.

On  October  21, 2003 the Company entered into a Public Relations Agreement with
an  entity,  whereby  the  entity  would  provide  public  relations services in
exchange  for  a  monthly  retainer  of  $3,000 cash per month.  The term of the
contract  is  one-year.  As of March 31, 2004 the Company owes the entity $9,019
for  prior  services.

On  November 18, 2003, the Company entered in to a finders fee agreement with an
entity,  whereby the Company would pay a 5% cash fee and warrants equal to 5% of
the  value of the transaction between the Company and the prospective purchaser.

On  December 1, 2003 the Company entered into a one-year contract with an entity
for  investment banking and advisory services in exchange for $5,000 monthly fee
paid  in cash or free trading stock, for 325,000 free trading shares and 250,000
restricted  shares  of  the Company's common stock upon signing the contract and
another  125,000 free trading shares and 750,000 restricted shares over the life
of the contract.  As of February 15, 2004, the entity has not yet commenced work
in  association with this contract, and the Company intends to officially cancel
this contract. The Company issued 250,000 shares of its restricted common stock,
and  the  Company's  Executive  Director  transferred  460,000 shares of already
issued  stock. The entity has verbally agreed to return the stock to the Company
and  therefore,  no entry has been made to record the transfer of 460,000 shares
to  the entity. This contract has subsequently been cancelled by the Company due
to  non-performance  and the Company has received verbal assurances that 250,000
shares  will  be  returned  to  the  Company  without  recourse.

On  February  11,  2004,  management  announced  that the Company had become the
marketing and distribution arm for MSDRT.  Under the terms of the Agreement, the
Company  is  appointed  the  exclusive global sales agent for MSDRT and its core
products,  SpectruCell and PC4.  The Company will receive a commission of 25% of
the  gross  revenues,  once  the  gross  revenues  equal  at  least  $1,000,000.

On March 11, 2004 the Company entered into a verbal agreement to purchase 20% of
the  equity  of  a company controlled by a related party. The terms and price of
the  purchase have not yet been finalized and are subject to due diligence being
completed  by  the  Company.

<PAGE>

                   MILITARY COMMUNICATIONS TECHNOLOGIES, INC.
                           A DEVELOPMENT STAGE COMPANY
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2004

On  March 15, 2004 the Board approved the issuance of 5,000,000 shares of common
stock  to  the management and consultants of the Company under an Employee Share
Plan.  Please  see  Note  11.

On  March  15,  2004  the  Company  issued  3,200,000  shares of common stock as
retainer  to engage the services of five law firms and a professional consulting
firm  to  protect  the  shareholders  interest with the rights to distribute the
SpectruCell  technology  in  North  and  South  America.

On  March 17, 2004, the Company entered into an agreement with a consulting firm
to  provide CEO and CFO services to the Company. The initial engagement is for a
period  of  four  months  at  $30,000  per month at which time the Board has the
option  to  extend  the  consulting  agreement  into  a  full  time  engagement.

9.     Share  Dividend
--     ---------------

On  February  18,  2004  the  Company  announced  its intention to issue a stock
dividend to all shareholders of record as of March 19, 2004. Each shareholder of
record  on  this  date will be issued 1 share for each 15 shares held. As of the
filing  of  this  document  this  dividend  has  not  been  paid.

10.     Related  Party  Transaction
---     ---------------------------

On  March 11, 2004 the Company announced it had verbally committed to purchase a
20%  interest in Advanced Power Management Pty Ltd, a related party company. The
terms  and  conditions of this purchase, including consideration, are subject to
completion  of  due  diligence  by  the  Company  and  approval  by the Board of
Directors.  All  details  pertaining  to  this transaction will be released upon
completion  of  the  transaction.

11.  Employee  Share  Plan
--------------------------

On  March 15, 2004 the Board approved the adoption of an Employee Share Plan. On
April 23, 2004 the Company filed an S-8 registration statement, which included 5
million  shares  to be issued under the Employee Share Plan. As of the filing of
this  Quarterly  Report  for  the  quarter  ending  March 31, 2004 the terms and
conditions  pertaining to the Employee Share plan are yet to be finalized and no
shares  have  been  issued  under  this  Plan.

<PAGE>

ITEM  2.   MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION AND
CAUTIONARY  STATEMENTS:

This Quarterly Report on Form 10-QSB contains certain forward-looking statements
within  the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of  the  Securities  Exchange  Act  of  1934.  The  Company  intends  that  such
forward-looking  statements  be  subject  to  the  safe  harbors created by such
statutes.  The  forward-looking  statements included herein are based on current
expectations  that  involve a number of risks and uncertainties. Accordingly, to
the  extent  that  this  Quarterly  Report  contains  forward-looking statements
regarding  the financial condition, operating results, business prospects or any
other  aspect  of  the  Company,  please  be  advised  that the Company's actual
financial  condition,  operating  results  and  business  performance may differ
materially  from  that  projected or estimated by the Company in forward-looking
statements.  The  differences  may  be caused by a variety of factors, including
but  not  limited to adverse economic conditions, intense competition, including
intensification  of price competition and entry of new competitors and products,
adverse  federal,  state  and  local  government regulation, inadequate capital,
unexpected  costs  and  operating  deficits,  and  increases  in  general  and
administrative  costs,  and  other specific risks that may be alluded to in this
Quarterly  Report  or  in other reports issued by the Company.  In addition, the
business  and  operations  of  the Company are subject to substantial risks that
increase  the  uncertainty  inherent  in  the  forward-looking  statements.  The
inclusion  of  forward looking statements in this Quarterly Report should not be
regarded  as  a  representation  by  the  Company  or  any other person that the
objectives  or  plans  of  the  Company  will  be  achieved.

THREE  MONTHS  ENDED  MARCH  31,  2004  VS.  THREE  MONTHS  ENDED MARCH 31, 2003

During  the  three  months  ended March 31, 2004, the Company did not report any
operational  revenue.  During the three months ended March 31, 2003, the Company
reported  a  loss from discontinued operations of ($112,997).  These numbers are
reflective  of  the  Company's  decision  on  September  12,  2003  to  sell its
operational division NetSalon I, Inc. The Company has not yet generated revenues
from  its  telecommunications  business.

During  the  three months ended March 31, 2004 operating expenses were $753,071.
During  the  three months ended March 31, 2003 the Company included all expenses
in  discontinued  operations.

During  the  three months ended March 31,2004, other income and expenses totaled
$5,186  and  included  interest  expense  of  $4,442  and  depreciation of $744.

The  net  loss  was  ($758,257)  for  the  three months ended March 31, 2004, as
compared  to a net loss of ($112,997) for the three months ended March 31, 2003.

<PAGE>

NINE  MONTHS  ENDED  MARCH  31,  2004  VS.  NINE  MONTHS  ENDED  MARCH  31, 2003

During  the  nine  months  ended  March 31, 2004, the Company did not report any
operational  revenue.  During  the nine months ended March 31, 2003, the Company
reported discontinued operations of ($233,320).  These numbers are reflective of
the  Company's  decision  on September 12, 2003 to sell its operational division
NetSalon  I,  Inc.  The  Company  has  not  yet  generated  revenues  from  its
telecommunications  business.

During  the nine months ended March 31, 2004 operating expenses were $1,655,513.
For  the  nine  months  ending  March  31, 2004 professional and consulting fees
comprised  of  82%  of total operating expenses incurred of $1,655,513.  For the
nine  months  ended  March  31,  2003  the  Company  included  all  expenses  in
discontinued  operations.

The  net  loss  was  ($1,670,296)  for  the  nine months ended March 31, 2004 as
compared  to  a net loss of ($233,320) for the nine months ended March 31, 2003.

LIQUIDITY  AND  CAPITAL  RESOURCES

As  of  March  31,  2004, the Company had a working capital deficit of $975,707.

In  connection  with the Company's divestment of its stock ownership in NetSalon
I, Inc. the Company will continue to attempt to enter into conversion agreements
with  several  debtors  of  the  Company  that  were  incurred  under  previous
management.  The  Company  continues to seek to complete other such conversions.

On August 20, 2002, the Company entered into an agreement with James S. Williams
to  settle  a  litigation  matter brought by Mr. Williams.  Mr. Williams and the
Company  presently  have a dispute with respect to the correct performance under
that  agreement.  The  Company is vigorously defending its position with respect
to  that  agreement and believes that the outcome of this matter will not have a
material  impact  on  its  financial  statements.

Australian  Affiliate:  Military  SDR  Technologies  Pty  Ltd
-------------------------------------------------------------

Military  SDR  Technologies  Pty  Ltd  ("MSDRT")  is an Australian based private
company  in the business of developing communications equipment for the wireless
communications  industry  in  both  the  commercial  and  military  fields.  The
technology  has  been  developed  over the last four years in Australia, and has
ownership of several patent applications, developed by its engineering division,
for  a  revolutionary new Software Defined Radio multiple protocol wireless base
station  technology  known  as  SpectruCell.

MSDRT has had discussions with underwriters in the United Kingdom relating to an
IPO  of  the  business  onto  the London Stock Exchange administered AIM market.
Initial  discussions  indicate  that  the  IPO would be scheduled for the second
quarter  of  2004.  While  there  can be no assurance that MSDRT will be able to
complete  this  offering,  Management  of MSDRT believes that this potential IPO
could  provide  additional  capital  resources  required to fulfill its business
plan.  This  would  also permit the Company to properly reflect the value of its
holdings  in  MSDRT  on  the  Company's  balance  sheet.

<PAGE>

Marketing  Efforts  for  SpectruCell  and  PC4
----------------------------------------------

On  February  11,  2004,  management  announced  that the Company had become the
marketing and distribution arm for MSDRT.  Under the terms of the Agreement, the
Company  is  appointed  the  exclusive global sales agent for MSDRT and its core
products,  SpectruCell and PC4.  The Company will receive a commission of 25% of
the  gross  sales.

In  line  with this Agency Agreement the Company intends to expand the Company's
operational  presence  not  only in North America within the current fiscal year
but  into  Europe and Asia in the next fiscal year. Each facility to be operated
by  the Company will include testing and demonstration facilities to support all
marketing  and  sales  efforts.  These facilities will be staffed with engineers
from  its  affiliate  MSDRT  and  will  also  include  testing and demonstration
equipment  that  should  assist  the  sales  and  marketing initiatives in North
America.

Advanced  Power  Management  Pty  Ltd  and  Advanced  Power  Management USA Inc.
--------------------------------------------------------------------------------

On  March  12,  2004  the Company announced its intention to purchase 20% of the
outstanding  equity  of  Advanced Power Management Pty Ltd. Under the agreement,
which  is yet to be finalized, the Company would receive the exclusive rights to
market  and  distribute  the  meter  reading  technologies within North America.

As  such,  the Company has established a wholly owned subsidiary, Advanced Power
Management  USA  Inc.,  a  Delaware corporation to coordinate these efforts. The
subsidiary  was  inactive  for  the  quarter  ending  March  31,  2004.

ITEM  3.  CONTROLS  AND  PROCEDURES

Roger  May,  the  Company's  principal  executive  and  financial  officer,  has
evaluated  the effectiveness of the Company's disclosure controls and procedures
(as defined in Rule 13a-14(c) under the Securities Exchange Act of 1934) as of a
date  within 90 days of the filing of this report.  Based on that evaluation, he
has concluded that the Company's disclosure controls and procedures are adequate
and effective.  There have been no significant changes in the Company's internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the  date  Mr.  May  completed  his  evaluation.



<PAGE>
                          PART II  - OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS.

None

ITEM  2.  CHANGES  IN  SECURITIES.

On  June  29, 2003, the Company issued 400,000 shares of restricted common stock
for  services  valued  at  $39,600  and  $400  cash.

On  October  8,  2003  the  Company  issued  100,000  shares  to  an  entity  in
consideration  for  $30,000  in  professional  services.

On  November  27,  2003 the Company issued 1,500,000 shares of restricted common
stock and 4,500,000 warrants to an equity investor in consideration for $150,000
cash.

On December 1, 2003 the Company entered a contract with an entity for investment
banking  and  advisory  services.  Under  the  terms of the contract the Company
issued 250,000 shares of restricted common stock for services valued at $25,000.

On  December  12,  2003  the  Board approved the issuance of 1,300,000 shares to
three  individuals  as a bonus for services provided to the Company. At the time
of  approval  these  shares  were  valued  at  $169,000.

On  December  31,  2003 the Company issued 3,001,000 shares of restricted common
stock  to  five  individuals  in  exchange  for  accrued  compensation  totaling
$300,100.

On  December  31,  2003  the  Company issued to two directors 125,000 restricted
shares  each  for  their  services  as  Directors  of  the  Company.

On  December  31,  2003 the Company issued 708,421 shares of free trading common
stock  to  its  legal counsel in exchange for accrued Legal Expenses of $70,842.

On  January 1, 2004 the Company issued 200,000 shares of restricted common stock
to  an  individual  in  exchange  for  accrued  compensation  totaling  $28,000.

On March 15, 2004 the Company issued 200,000 shares of free trading common stock
to  its  legal  counsel  in  exchange  for  accrued  Legal  Expenses  of $14,000

On  March 15, 2004 the Board approved the issuance of 3,200,000 shares of common
stock  to  six  entities  for  professional  services  valued  at  $384,000.

On  March 15, 2004 the Board approved the issuance of 5,000,000 shares of common
stock  to  the management and consultants of the Company under an Employee Share
Plan.

<PAGE>

On  March 15, 2004 the Board approved the issuance of 1,050,000 shares of common
stock  to  an  individual in exchange for accrued compensation valued at $40,000
and  future  consulting  services  valued  at  $86,000.

On  March  31, 2004 the Company issued 251,428 shares of restricted common stock
to  an  individual  in  exchange  for  accrued  compensation  totaling  $25,143.

On March 31, 2004 the Company issued three directors 65,000 shares of restricted
common  stock  each  for  services  as  Directors  of  the  Company.

ITEM  3.  DEFAULTS  OF  SENIOR  SECURITIES.

None.

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

None.

ITEM  5.  OTHER  INFORMATION.

On February 2, 2004 the Company filed an S-8 registration statement. Included in
the Registration was a share bonus to Mr. Roger May (950,000), Mr. Jeremy Norton
(250,000)  and Ms. Kristine Woo (100,000). These shares were subsequently issued
on  March  1,  2004.

On  April 23,  2004, the Company filed a S-8 registration statement. Included in
the  Registration  was 3,200,000 shares, valued at $374,000, issued to legal and
professional  representatives  to protect the rights of our shareholders against
Advanced  Communications  Technologies  Inc.  who  are  claiming  rights  to the
SpectruCell  technology  in  North  and  South  America.

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

The  Company  filed  a  Report  on  Form  8-K  on January 5, 2004 announcing the
resignation  of  Mr. Charles Wantrup, Mr. Peter Hayes Q.C and Mr. David Lockwood
as  Directors  of  the  Company  and the appointment of Mr. Jeremy Norton to the
Board  of  Directors.

The  Company  filed  a  Report  on  Form  8-K on May 5, 2004 announcing that our
affiliate, Australian based, Military SDR Technologies Pty Ltd, had entered into
a  joint venture contract with a Chinese based conglomerate for the distribution
of  SpectruCell.



<PAGE>
                                   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.

                                        MILITARY COMMUNICATIONS TECHNOLOGIES INC



                                            By: /s/ Roger May
                                                   Roger May, Executive Director
                                                             Date:  May 20, 2004

I,  Roger  May,  certify  that:

1.  I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  Military
Communications  Technologies,  Inc.  for  the  period  ended  March  31,  2004;

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 report;

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

a.  Designed  such  disclosure  controls  and procedures to ensure that material
information relating to the Company, 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  Company'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  our most recent evaluation, to the Company's
auditors and the audit committee of the Company's board of directors (or persons
performing  the  equivalent  function):

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

b.  Any  fraud,  whether  or  not  material,  that  involves management or other
Employees  who  have  a significant role in the Company's internal controls; and

6.  I have indicated in this annual 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.

                                            By: /s/ Roger May
                                                   Roger May, Executive Director
                                                             Date:  May 20, 2004


    Certification Pursuant to Sections 906 of the Sarbanes-Oxley Act of 2002

Pursuant  to  Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and
(b)  of  Section  1350, Chapter 63 or Title 18, United States Code), each of the
undersigned  officers  of  Military  Communications  Technologies,  Inc.  (The
"Company")  does  hereby  certify,  to  such  officer's  knowledge,  that:

The  Quarterly  Report  on Form 10-QSB for the three month period ended December
31,  2003  of  the  Company  fully  complies, in all material respects, with the
requirements  of  section 13(a) or 15(d) of the Securities Exchange Act of 1934,
as amended, and information contained in the Form 10-QSB fairly presents, in all
material  respects,  the  financial  condition  and results of operations of the
Company.

A  signed  original  of  this written statement required by Section 906 has been
provided  by  Military Communications Technologies, Inc. and will be retained by
Military  Communications  Technologies, Inc. and furnished to the Securities and
Exchange  Commission  or  its  staff  upon  request.

                                            By: /s/ Roger May
                                                   Roger May, Executive Director
                                                             Date:  May 20, 2004