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

                                    FORM 10-Q

[ X ]           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2002

                                       OR

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

                For the transition period from         to
                                               -------    -------

                         Commission File No.: 000-25677

                           CYBERNET INTERNET SERVICES
                              INTERNATIONAL, INC.
             (Exact name of Registrant as specified in its charter)

                     Delaware                          51-0384117
           (State or other jurisdiction             (I.R.S. Employer
         of incorporation or organization)        Identification  No.)

  Suite 1620 - 400 Burrard Street, Vancouver, British Columbia, Canada V6C 3A6
                              (Address of office)

                                 (604) 683-5767
              (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 the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the Registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.   YES  X      NO
                                              ---         ---

Indicate the number of shares outstanding of each of the Registrant's classes of
common  stock,  as  of  the  latest  practicable  date:

          Class                           Outstanding at August 31, 2002
          -----                           ------------------------------

     Common Stock, $0.001                           26,445,627
          par value

<PAGE>

FORWARD-LOOKING  STATEMENTS

Statements  in  this  report,  to  the  extent  they are not based on historical
events,  constitute   forward-looking   statements.  Forward-looking  statements
include,  without  limitation,  statements  regarding  the  outlook  for  future
operations, forecasts of future costs and expenditures, the evaluation of market
conditions, the outcome of legal proceedings, the adequacy of reserves, or other
business  plans.  When used herein, such statements may use words such as "may",
"will",  "expect",  "believe", "plan" and similar terminology.  These statements
reflect  management's current expectations regarding future events and operating
performance  and speak only as of the date hereof.  Investors are cautioned that
forward-looking  statements  are subject to an inherent risk that actual results
may  vary  materially  from  those described herein.  Factors that may result in
such variance, in addition to those accompanying the forward-looking statements,
include  changes  in  international,  national  and  local business and economic
conditions, competition,  changes  in  interest  rates,  actions by competitors,
actions  by  government   authorities,   uncertainties   associated  with  legal
proceedings,  technological  development,  future  decisions  by  management  in
response  to  changing  conditions  and  misjudgments in the course of preparing
forward-looking  statements.  The  foregoing  list of factors is not exhaustive.


                          PART I. FINANCIAL INFORMATION
                                  ---------------------


ITEM  1.     FINANCIAL  STATEMENTS


                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.

                        CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2002

                                  (UNAUDITED)

                                        2

<PAGE>

                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.

                          CONSOLIDATED BALANCE SHEETS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                      December 31, 2001  June 30, 2002
                                                      -----------------  -------------
                                                            (Euros in thousands)

<S>                                                       <C>              <C>
ASSETS
Current Assets
  Cash and cash equivalents                               E  2,735         E 36,126
  Restricted cash                                            2,743            2,315
  Short-term investments                                       149               67
  Trade accounts receivable, net                             8,903            3,558
  Related party receivable                                     356                -
  Other receivables                                          2,721            1,629
  Restricted investments                                    10,567            4,686
  Prepaid expenses                                             574              205
  Other current assets                                         947              221
                                                          --------         --------
    Total current assets                                    29,695           48,807

Long-Term Assets
  Property and equipment, net                               32,653            4,964
  Product development costs, net                               806                -
  Investments in equity-method investees                     2,770              400
  Deferred debt issuance and other charges                   6,048            4,072
                                                          --------         --------

TOTAL ASSETS                                              E 71,972         E 58,243
                                                          ========         ========

LIABILITIES
Current Liabilities
  Overdrafts and short-term borrowings                    E    170         E      -
  Overdrafts and short-term borrowings, related party            -            3,417
  Trade accounts payable                                    13,155            6,108
  Other accrued liabilities                                 11,835           16,408
  Current portion long-term debt and capital lease
   obligations                                               1,060                -
  Accrued personnel costs                                    1,848            1,645
                                                          --------         --------
    Total current liabilities                               28,068           27,578

Long-Term Liabilities
  Long-term debt                                           164,573          156,431
  Capital lease obligations                                    435                -
                                                          --------         --------
    Total liabilities                                      193,076          184,009
                                                          --------         --------
SHAREHOLDERS' DEFICIENCY
  Common stock                                                  25               25
  Additional paid-in capital                               127,718          127,718
  Accumulated deficit                                     (249,473)        (253,565)
  Other comprehensive income                                   626               56
                                                          --------         --------
    Total shareholders' deficiency                        (121,104)        (125,766)
                                                          --------         --------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY            E 71,972         E 58,243
                                                          ========         ========

</TABLE>


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

                                        3

<PAGE>

                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.

          CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                    Three Months Ended        Six Months Ended
                                                         June 30,                 June 30,
                                                  ----------------------   ----------------------
                                                     2001        2002         2001        2002
                                                  ----------  ----------   ----------  ----------
                                                    (Euros in thousands, except per share data)

<S>                                              <C>        <C>          <C>          <C>

Revenues                                         E   9,901   E   6,724   E  19,781    E  16,032
Costs and expenses:
    Direct cost of services                          6,160       4,004      11,653        8,537
    Network operations                               2,103       1,310       4,230        2,329
    General and administrative expenses              3,160       4,744       6,541       10,223
    Sales and marketing expenses                     2,824       1,337       5,509        3,264
    Research and development                           156           -         384            -
    Impairment of assets                             2,556       6,645       2,556        6,645
    Depreciation and amortization                    5,029       2,037       9,871        4,512
                                                 ---------   ---------   ---------    ---------
       Total costs and expenses                     21,988      20,077      40,744       35,510
                                                 ---------   ---------   ---------    ---------
Operating loss                                     (12,087)    (13,353)    (20,963)     (19,478)
Other income and expenses:
    Interest expense                                (6,657)     (6,559)    (12,433)     (13,393)
    Interest income                                    501          98       1,079          201
    Gain on disposal of assets and businesses            -      13,233           -       13,233
    Equity in losses of equity-method investees       (153)       (134)       (304)        (269)
    Foreign currency gains (losses)                 (4,415)     17,187     (10,674)      15,607
                                                 ---------   ---------   ---------    ---------
Income (loss) before taxes and extraordinary
  item                                             (22,811)     10,472     (43,295)      (4,099)
Income tax benefit                                   2,836           8       4,425            7
                                                 ----------  ---------   ---------    ---------
Income (loss) before extraordinary item            (19,975)     10,480     (38,870)      (4,092)
Extraordinary item:
    Gain on extinguishment of debt (net of tax)          -           -       4,016            -
                                                 ---------   ---------   ---------    ---------
Net income (loss)                                  (19,975)     10,480     (34,854)      (4,092)
Accumulated deficit, beginning of period          (129,712)   (264,045)   (114,833)    (249,473)
                                                ----------   ---------   ---------    ---------
Accumulated deficit, end of period               E(149,687)  E(253,565)  E(149,687)   E(253,565)
                                                 =========   =========   =========    =========

Earnings (loss) per share, basic:
    Earnings (loss) per share before
     extraordinary item                          E   (0.77)  E    0.39   E   (1.50)   E   (0.15)
    Gain on extraordinary item                           -           -        0.15            -
                                                 ---------   ---------   ---------    ---------
    Net income (loss) per share                  E   (0.77)  E    0.39   E   (1.35)   E   (0.15)
                                                 =========   =========   =========    =========
Earnings (loss) per share, diluted:
    Earnings (loss) per share before
     extraordinary item                          E   (0.77)  E    0.12   E   (1.50)   E   (0.57)
    Gain on extraordinary item                           -           -        0.15            -
                                                 ---------   ---------   ---------    ---------
    Net income (loss) per share                  E   (0.77)  E    0.12   E   (1.35)   E   (0.57)
                                                 =========   =========   =========    =========
Weighted average number of shares
  outstanding (in thousands):
    For basic loss (earnings) per share             25,845      26,445      25,845       26,445
                                                 =========   =========   =========    =========
    For diluted loss (earnings) per share           25,845      30,391      25,845       30,391
                                                 =========   =========   =========    =========

</TABLE>


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

                                        4

<PAGE>

                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
<CAPTION>

                                                                 Six Months Ended June 30,
                                                                 -------------------------
                                                                    2001          2002
                                                                 ----------   ------------
                                                                   (Euros in thousands)

<S>                                                               <C>         <C>
Cash Flows from Operating Activities:
Net loss                                                          E (34,854)  E  (4,092)
Adjustments to reconcile net loss to net cash used
 by operations:
  Deferred taxes                                                     (4,425)          -
  Depreciation and amortization                                       9,871       4,512
  Equity in losses of equity-method investees                           141         269
  Provision for losses on accounts receivable                           528       2,298
  Loss on sale of short-term investment                                 122           -
  Amortization of bond discount                                       1,335       1,298
  Accreted interest expense on long-term debt                         5,443       6,771
  Impairment of assets                                                2,556       6,645
  Gain on disposal of assets                                              -     (15,011)
  Loss on disposal of businesses                                          -       1,778
  Gain on extinguishment of debt                                     (4,016)          -
  Foreign currency translation loss (gain)                           10,950     (14,810)
  Changes in operating assets and liabilities:
      Restricted cash                                                   137         428
      Trade accounts receivable                                         310         716
      Other receivables                                               1,284         983
      Other assets                                                      530          21
      Prepaid expenses                                                    7          (3)
      Other current assets                                              282        (130)
      Trade accounts payable                                         (1,949)     (1,063)
      Other accrued expenses and liabilities                            540       4,415
      Accrued personnel costs                                          (560)        324
                                                                  ---------   ---------
          Net cash used in operating activities                     (11,768)     (4,651)

Cash Flows from Investing Activities:
Proceeds from sale of short-term investments                         16,496          85
Proceeds from sale of restricted investments                          4,192       5,368
Purchase of property and equipment                                   (6,455)       (334)
Proceeds from sale of property and equipment                              -      32,106
Acquisition of equity method investments                               (409)          -
Sale of businesses, net of cash sold                                      -        (346)
Payment of deferred purchase obligations                             (2,034)          -
                                                                  ---------   ---------
          Net cash provided by investing activities                  11,790      36,879

Cash Flows from Financing Activities:
Principal payments under capital lease obligations                     (278)     (1,561)
Proceeds from borrowings                                                  -       3,417
Repayment of borrowings                                              (3,430)       (170)
                                                                  ---------   ---------
          Net cash (used in) provided by financing activities        (3,708)      1,686
                                                                  ---------   ---------
Impact of foreign exchange rate changes                                 (77)       (523)
                                                                  ---------   ---------
Net (decrease) increase in cash and cash equivalents                 (3,763)     33,391
Cash and cash equivalents at beginning of period                      5,972       2,735
                                                                  ---------   ---------
Cash and cash equivalents at end of period                        E   2,209   E  36,126
                                                                  =========   =========

</TABLE>


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

                                        5

<PAGE>

                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                       FOR SIX MONTHS ENDED JUNE 30, 2002

1.     Basis  of  Presentation

The  accompanying  interim period unaudited consolidated financial statements of
Cybernet  Internet  Services  International,  Inc.  (the  "Company")  have  been
prepared  in  accordance  with  United  States   generally  accepted  accounting
principles  ("U.S.  GAAP")  and the rules and regulations of the U.S. Securities
and  Exchange Commission relating to interim financial information. Accordingly,
they  do  not  include  all  of  the  information  required  under U.S. GAAP for
financial  statements  for  a  full  year.  In  the  opinion  of management, all
adjustments (consisting of normal recurring adjustments and accruals) considered
necessary  for  a  fair  presentation  of  the financial position and results of
operations  of  the  Company  for  the  periods  presented  have  been included.
Operating  results  for  the  six months ended June 30, 2002 are not necessarily
indicative  of results to be expected for the year ended December 31, 2002.  For
further  information, refer to the audited consolidated financial statements and
notes  thereto included in the Company's annual report on Form 10-K for the year
ended  December  31,  2001.

2.     Going  Concern

The  Company  has incurred significant operating losses since inception, and has
not  achieved  and  does  not  expect  to achieve sufficient revenues to support
future  operations without additional financing. The Company is currently in the
process of identifying alternative financing sources, negotiating changes to its
debt  structure  and  evaluating  its  strategic  options. However, there are no
assurances  that  these  plans  can  be  accomplished  or that they will provide
sufficient  cash  to  fund  the  Company's  operations  in  the  future.

The  accompanying  consolidated financial statements have been prepared assuming
that  the  Company  will  continue  as  a going concern and, accordingly, do not
include  any  adjustments  to  reflect  the  possible   future  effects  on  the
recoverability and classification of assets or the amounts and classification of
liabilities  that  may  result  from  the  outcome  of  these  uncertainties.

3.     Earnings  (Loss)  Per  Share

Basic  earnings (loss) per share is computed by dividing income (loss) available
to common shareholders by the weighted  average  number  of  shares  outstanding
during  the  period.   Diluted  earnings  per  share  takes  into  consideration
shares  outstanding  (computed  under basic  earnings per share) and potentially
dilutive shares. For the periods ended June 30, 2001, the computation of diluted
loss  per  share excludes the convertible preferred stock, convertible notes and
stock  options  because the inclusion of these items would have an anti-dilutive
effect.

4.     Segment  Information

The  Company  operates in one line of business, which is providing international
Internet  backbone  and  access  services  and  network  business  solutions for
corporate  customers.


                                        6

<PAGE>

5.     Comprehensive  Income (Loss)

Accumulated other comprehensive income (loss) consists of  unrealized  gains  or
losses  on  available-for-sale  securities   and  translation  adjustments  from
consolidation. The  following  table sets forth the comprehensive  income (loss)
for the periods ended  June  30,  2001  and  2002:

<TABLE>
<CAPTION>

                                               Three Months Ended         Six Months Ended
                                                     June 30,                 June 30,
                                              ---------------------      ------------------
                                                2001        2002           2001      2002
                                              --------    --------       --------  --------
                                                          (Euros in thousands)

<S>                                           <C>         <C>              <C>      <C>

Net income (loss)                             E(19,975)   E 10,480       E(34,854)  E(4,092)
Net unrealized gains (losses) on
  available-for-sale securities                     12         (52)           160       (46)
Unrealized gains (losses) on foreign currency
  adjustments, net of tax                           (4)         55             33      (524)
                                              --------    --------       --------   -------
Comprehensive income (loss)                   E(19,967)   E 10,483       E(34,661)  E(4,662)
                                              ========    ========       ========   =======

</TABLE>

6.     Disposal  of  Assets  and  of  Businesses

On  April  16,  2002,  the  Company entered into a share purchase agreement with
Westwood  Corporation  ("Westwood") wherein  the  Company sold all of the shares
of Cybernet Italia S.p.A. to Westwood in consideration for $10,000. The  Company
recognized a loss of approximately Euro 1.8 million in connection with this sale
transaction.

On  June  25,  2002,  Cybernet  Internet  Dienstleistungen AG ("Cybernet AG"), a
wholly-owned  subsidiary  of  the  Company,  entered  into an asset purchase and
transfer  agreement  (the  "Data  Center  Agreement")  with  Disko  Leasing GmbH
("Disko"),  pursuant  to which Cybernet AG sold assets, equipment, furniture and
fixtures  located  in its data centers in Hamburg, Frankfurt and Munich, Germany
(the "Data  Centers")  to  Disko, effective April 30, 2002. Pursuant to the Data
Center  Agreement,  Cybernet  AG also cancelled certain lease agreements for the
Data  Centers,  terminated  operating  agreements  for the Data Centers, amended
certain service agreements for the Data Centers in Frankfurt and Munich, Germany
and  paid  an  arrangement  fee  to  Telehouse  Deutschland  GmbH.  The  Company
recognized a gain of approximately Euro 15.0 million as a  result of  this  sale
transaction.

7.     Deferred  Debt  Issuance  and  Other  Charges

Deferred  debt  issuance  and  other  charges  consist  principally  of expenses
incurred  by  the  Company  in  connection with the notes issued during 1999 and
amounts  allocated  to customer base and management contracts in connection with
business  acquisitions.  Deferred  debt  issuance charges are being amortized to
interest  expense  over  the  period  of  the maturity of the said notes.  Other
deferred  charges are being amortized on a straight-line basis over their useful
lives.

8.     Related  Party  Transactions

MFC  Bancorp  Ltd. ("MFC") is considered a related party as MFC maintains voting
rights  on  behalf  of  two  shareholders  that  hold  approximately  26% of the
Company's  outstanding  shares  and  an  executive officer and a member of MFC's
board  of  directors is an executive officer and a member of the Company's board
of directors.  A Swiss bank affiliate of MFC provides a revolving senior secured
credit  facility  in  an  aggregate amount  of  Euro 7.0 million to the Company.
In April 2002,


                                        7

<PAGE>

the  Company  entered  into  an  agreement  to  engage  MFC to provide strategic
advisory and  restructuring services.  Pursuant  to  such agreement, MFC will be
be paid a success fee upon the completion  of  a  successful  debt restructuring
and on specified  transactions,  measured  as  a percentage  of  the   amount of
debt restructured or transactions completed and  subject  to  an  overall cap on
total  fees.  In  the  interim,  the  Company  pays  a  monthly work fee of Euro
175,000 to MFC. The agreement is terminable by either party on  30  days'  prior
written notice.

9.     Commitments/Leases

As at  June 30,  2002, the Company  had  commitments  under operating leases and
rental payments  totaling  approximately  Euro  4.5  million,  payable  over the
18-month period ending December  31,  2003.


                                        8

<PAGE>

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

Cybernet  Internet Services International, Inc. (the "Company" and together with
its  subsidiaries   "Cybernet")  is  an  Internet  service  provider,  providing
international  Internet  backbone  and  access  services  and  network  business
solutions  for corporate customers. The following discussion and analysis of the
results  of operations and financial  condition of the Company for the six month
and  three  month periods ended June  30,  2002  should  be  read in conjunction
with the consolidated financial statements and related notes included  elsewhere
herein.

Results  Of  Operations  -  Six  Months  Ended  June  30,  2002
-----------------------     -----------------------------------

The  following  table  sets  forth  selected  sales data for the Company for the
periods  indicated:

<TABLE>
<CAPTION>

                                             Six Months Ended June 30,
                                             -------------------------
                                                2001           2002
                                             ----------     ----------
                                                (Euros in thousands)

<S>                                           <C>           <C>

Revenues
     Internet data center services            E  5,301      E  3,811
     Connectivity                               13,855        11,822
     E-business                                    625           399
                                              --------      --------
        Total revenues                        E 19,781      E 16,032
                                              ========      ========

</TABLE>

In  the  six  months  ended June 30, 2002, total revenues decreased to Euro 16.0
million from Euro 19.8 million in the comparable period of 2001. The decrease in
revenues  reflected  lower  revenues in all segments, resulting from a difficult
economic   environment   wherein  customers  have  been  delaying  projects  and
investments.  For  the  six months  ended  June  30,  2002, internet data center
service  ("IDC") revenues decreased to Euro 3.8 million from Euro 5.3 million in
the same period of 2001. Connectivity revenues decreased to Euro 11.8 million in
the first half of 2002 from Euro 13.9 million in the same period  of 2001.  Such
decreases in revenues resulted primarily  from  the disposition of the Company's
operations in Italy in April 2002 and the sales of assets and  equipment located
in  its  data  centers  in  Hamburg,  Frankfurt  and Munich,  Germany (the "Data
Centers") effective  April  30,  2002 pursuant to an asset purchase and transfer
Agreement (the "Data Center Agreement") made between the Company's  wholly-owned
subsidiary, Cybernet Internet  Dienstleistungen AG  ("Cybernet AG"),  and  Disko
Leasing  GmbH  ("Disko")  dated  June  25,  2002.

Direct cost of services decreased to Euro 8.5 million in the first six months of
2002  from  Euro  11.7  million in the comparable period of 2001. Direct cost of
services  consists of: 1) telecommunications expenses which mainly represent the
cost  of  transporting Internet traffic from our customers' locations through a
local telecommunications carrier to one of our access nodes, transit and peering
costs,  and the cost of leasing lines to interconnect our backbone nodes, and 2)
the cost of hardware and software sold. The Company mainly utilizes leased lines
for  its  backbone  network,  and to connect its network to its major customers'
premises.

Network  operations  costs decreased to Euro 2.3 million in the first six months
of  2002  from  Euro  4.2  million  in  the  comparable  period of 2001. Network
operations  mainly  consist  of:  1)  the  personnel  costs  of   technical  and
operational  staff  and  related  overhead,  2) the rental of premises solely or
primarily  used  by  technical  staff,  including  premises used to generate our
co-location  services revenues and 3) consulting expenses in the area of network
and  software  development.  The  decrease


                                        9

<PAGE>

reflects  a  continuous   effort  to reorganize  Cybernet's  technical structure
to reduce personnel related costs.  Cybernet had 33 network operations personnel
at June 30, 2002, compared to 84 at June  30,  2001.

General  and administrative expenses increased to Euro 10.2 million in the first
six  months  of 2002 from Euro 6.5 million in the comparable period of 2001. The
increase  results  primarily  from  reserves  for  accounts  receivable  from  a
principal  distressed  connectivity  reseller  in  Germany  and  provisions  for
potential litigation, business rationalization and related costs. Synergies from
integrating  various  operations and cost control measures instituted during the
last  12 months resulted in lower personnel and personnel related costs. General
and  administrative expenses consist principally of salaries and other personnel
costs  for  administrative  staff,  rent,  allowance  for bad debts and external
advisory costs. Cybernet had 26 general and administrative personnel at June 30,
2002,  compared  to  48  at  June  30,  2001.

Sales  and  marketing  expenses  decreased  to Euro 3.3 million in the first six
months  of  2002  from  Euro  5.5 million in the comparable period of 2001. This
decrease  is  mainly  due  to  Cybernet  reorganizing  its  sales  and marketing
organization.  Sales  and marketing expenses consist principally of salaries for
sales  and  marketing  personnel and advertising and communication expenditures.
Cybernet  had  50  sales  and marketing  personnel at June 30, 2002, compared to
approximately  131  at  June  30,  2001.

During  2002,  Cybernet  continued  to  re-focus its activities towards its core
operations  and  rationalize  its  business. As a result, Cybernet terminated or
re-assessed  various  projects  and  initiatives,  such  as  Voice Telephony and
Connectivity, and  the  Company recorded impairment losses of approximately Euro
6.6  million in the first six months of 2002.  Cybernet's review of its core and
other  operations  is  currently  ongoing  and may, in the future, result in the
Company  reassessing  the  carrying  value  of  its  assets and/or providing for
associated  costs  and  expenses.

Depreciation  and  amortization  expenses  decreased  to Euro 4.5 million in the
first six months of 2002 from Euro 9.9 million in the comparable period of 2001.
This  decrease  reflects  the  nearly complete write-off on December 31, 2001 of
goodwill  related  to  prior  acquisitions.

For  the  six months ended June 30, 2002, the Company reported an operating loss
of  Euro 19.5 million, compared to Euro 21.0 million in the comparable period of
2001.

Interest  expense  for the six months ended June 30, 2002 increased to Euro 13.4
million  from Euro 12.4 million in the comparable period of 2001, primarily as a
result of an increase in indebtedness  during  the  current  period.

In  the first half of 2002, the Company reported a net gain of Euro 13.2 million
on the disposition of assets and businesses, primarily resulting from the sale
of the Data Centers by Cybernet AG pursuant to the Data Center Agreement.

In  the  first  six months of 2002, the Company recorded a  net foreign currency
gain  of  Euro  15.6  million,  primarily  as  a  result  of  the  effect of the
strengthening  of  the  Euro versus the U.S. dollar on the Company's U.S. dollar
denominated  debt.  The  Company  reports  its  financial results in Euros and a
portion  of  its  outstanding  indebtedness  is  denominated and payable in U.S.
dollars.  As the Euro fluctuates in value against the U.S. dollar, the amount of
the Company's U.S. dollar denominated debt as reported in Euros also fluctuates.
These  differences are recorded as either foreign  currency


                                       10

<PAGE>

gains  or  losses  by the Company  in  any  particular  reporting period.   Such
reported foreign currency gains or losses will fluctuate with the exchange  rate
for  Euros  to  U.S.  dollars from reporting period to reporting period.  In the
comparable period of 2001, the Company  recorded  a  net  foreign exchange  loss
of  Euro  10.7  million.

For the six months ended June 30, 2002, the Company's net loss decreased to Euro
4.1  million from Euro 34.9 million for the comparable period of 2001, primarily
as  a  result  of  the  non-recurring  gain  resulting from the sale of the Data
Centers  by  Cybernet  AG  and a non-cash foreign currency translation gain.

Results  of  Operations  -  Three  Months  Ended  June  30,  2002
-----------------------     -------------------------------------

The  following  table  sets  forth  selected  sales data for the Company for the
periods  indicated:

<TABLE>
<CAPTION>

                                                   Three Months Ended June 30,
                                                   ---------------------------
                                                      2001             2002
                                                   ----------       ----------
                                                       (Euros in thousands)

<S>                                                <C>              <C>

Revenues
     Internet data center services                 E 2,640          E 1,102
     Connectivity                                    7,140            5,338
     E-business                                        121              284
                                                   -------          -------
         Total revenues                            E 9,901          E 6,724
                                                   =======          =======

</TABLE>

Total  revenues decreased to Euro 6.7 million in the three months ended June 30,
2002  from Euro 9.9 million in the second quarter of 2001, primarily as a result
of  lower  IDC  and  Connectivity  revenues, resulting from a difficult economic
environment  wherein  customers have been delaying projects and investments. For
the  quarter  ended  June  30, 2002, IDC revenues decreased to Euro 1.1  million
from  Euro 2.6 million in the comparable period of 2001.  Connectivity  revenues
decreased to Euro 5.3  million  in  the quarter ended  June 30, 2002  from  Euro
7.1 million in the comparable period of 2001.  Connectivity  revenues  decreased
principally  due  to  a  decrease  in  the  number  of  customers as a result of
competitive conditions and the disposition of the Company's  Italian operations.

Direct  cost  of services decreased to Euro 4.0 million in the second quarter of
2002  from Euro 6.2 million in the second quarter of 2001. The decrease reflects
a  continuous  effort  by the Company to reorganize and rationalize its network.
Network operations costs decreased to Euro 1.3 million in the second quarter of
2002  from Euro 2.1 million in the second quarter of 2001. The decrease reflects
a  continuous  effort  by  the Company to reorganize its technical structure and
reduce  personnel  related  costs.

General  and administrative expenses increased to Euro 4.7 million in the second
quarter  of  2002  from  Euro  3.2  million  in  the second quarter of 2001. The
increase  resulted  primarily  from  reserves  for  accounts  receivable  from a
principal distressed connectivity reseller in Germany, as well as provisions for
litigation,  business  rationalization  and  related  expenses.

Sales and marketing expenses decreased to Euro 1.3 million in the second quarter
of  2002  from  Euro 2.8 million in the second quarter of 2001. Depreciation and
amortization  expenses  decreased  to  Euro 2.0 million in the second quarter of
2002  from  Euro  5.0  million  in  the  second  quarter  of  2001.

In  the  second  quarter of 2002, the Company reported an operating loss of Euro
13.4  million,  compared  to  Euro  12.1  million  for  the same period of 2001.


                                       11

<PAGE>

Interest expense was Euro 6.6 million in the second quarter of 2002, compared to
Euro  6.7  million  in  the  second  quarter  of  2001.

During the second quarter of  2002, the Company recorded a net gain of Euro 13.2
million  on  the  disposition of assets primarily resulting from the sale of the
Data  Centers  by  Cybernet  AG  pursuant  to  the  Data  Center  Agreement.

In  the  second  quarter  of  2002,  the Company reported a net foreign currency
translation  gain  of  Euro  17.2  million,  compared  to a net loss of Euro 4.4
million in the second quarter of 2001, primarily reflecting the  effect  of  the
strengthening  of  the  Euro versus the U.S. dollar on the Company's U.S. dollar
denominated  debt.

During  the second quarter of 2002, the Company reported net income of Euro 10.5
million,  compared  to a net loss of Euro 20.0 million for the comparable period
of  2001,  primarily as a result of a non-recurring gain resulting from the sale
of the Data  Centers  by Cybernet AG and a non-cash foreign currency translation
gain.

Liquidity  and  Capital  Resources
----------------------------------

Operating  activities  used  cash of Euro 4.7 million in the first six months of
2002,  compared  to  Euro  11.8  million  in the comparable period in 2001. This
reflected  lower  losses  and  decreased  expenditures in all major areas of the
Company.

For  the  first  six months of 2002, investing activities generated cash of Euro
36.9  million,  compared  to Euro 11.8 million in the comparable period in 2001.
The increase in cash resulted primarily from the disposition of the Data Centers
by  Cybernet  AG  pursuant to the terms of the Data Center Agreement, as well as
the sale of investments, partially offset by the cash outflows for the purchases
of  property  and  equipment.  Expenditures for property and equipment consisted
principally  of  the  fit-out  of  POP's  and  data facilities, the purchases of
computer hardware and software and other expenditures related to the maintenance
of  the  Company's  Internet  backbone  and  equipment.

For the first six months of 2002, financing activities provided cash of Euro 1.7
million. The increase in cash generated from financing activities represents the
net  proceeds of approximately Euro 3.2 million from borrowings partially offset
by  the  cash  outflows for the early termination of one leasing contract in the
amount  of  Euro  1.6  million.  In  the  comparable  period  in 2001, financing
activities  used  cash  of  Euro  3.7  million.

On  July  1, 2002, the Company paid the semi-annual interest payment of Euro 4.7
million  on  its  outstanding  senior convertible notes due 2009 from restricted
investments deposited in its interest escrow account.  As a result, the interest
escrow  account  for  such  notes  has  been  fully  disbursed.

On  June  30, 2002, working capital, defined as the  excess  of  current  assets
over current liabilities, was Euro 21.2 million, compared to Euro 1.6 million at
December  31,  2001.

Net  accounts  receivable as at June 30, 2002 decreased to Euro 3.6 million from
Euro  8.9 million as at December 31, 2001. Cash and cash equivalents amounted to
Euro  36.1  million and Euro 2.7 million at June 30, 2002 and December 31, 2001,
respectively.  At June 30, 2002, the Company  had approximately Euro 4.7 million
of  restricted  investments  held in  escrow.  This amount was invested


                                       12

<PAGE>

in  U.S. treasury  securities and  was  used to  pay  interest  on the Company's
senior convertible  notes  in  July  2002.

In  March  2002,  the  Company  was  granted  a  revolving senior secured credit
facility  from a Swiss Bank, a related party, that matures  in  March  2003  for
maximum  borrowings of Euro 7.0 million.  The Company is obligated to  borrow in
three tranches and each tranche is dependent upon certain conditions. The credit
facility  bears  interest  at  a  rate  of  14%  per  annum  and  is  secured by
substantially  all  of  the  Company's  assets  excluding  restricted  cash  and
investments.  The  amount   drawn  and  outstanding under the credit facility as
of  June  30,  2002  was  Euro 3.4  million.  There can be no assurance that the
Company  will  receive  further  advances  under the credit facility or that the
Company  will  have sufficient funds  to  continue its current operations in the
future.  The  Company  may need to obtain additional financing in the future and
there can be no assurance that the Company will  be successful in obtaining such
financing.


ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

Reference is made to the Company's annual report on Form 10-K for the year ended
December 31, 2001 for information concerning market risk.  The Company is of the
opinion  that  there have been no material changes in market risk since December
31,  2001.


                                       13

<PAGE>

                           PART II. OTHER INFORMATION
                                    -----------------

ITEM  1.  LEGAL  PROCEEDINGS

The  Company  is subject to routine litigation incidental to its business and is
named  from  time to time as a defendant in various legal actions.  Reference is
made to the Company's annual report on Form 10-K for the year ended December 31,
2001  for  information  concerning  legal  proceedings.

In  view  of  the inherent difficulty of predicting the outcome of such matters,
particularly in cases in which damages are sought, the Company cannot state what
the  eventual outcome of pending matters will be.  The Company is contesting the
allegations  made  in  each pending matter and while it believes, based upon its
current  knowledge,  that  the  outcome of such matters will not have a material
adverse  effect  on  the Company's consolidated financial position, such matters
may be material to the Company's  operating  results  for  a particular  period.


ITEM  5.  OTHER  INFORMATION

The  Company's  board  of  directors  was  realigned  to  be  comprised of three
directors,  being  Michael  Smith,  Slobodan  Andjic  and  Jong  Dal  Lee.


ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)   Exhibits

      99.1  -  Certification  of  Periodic  Report

(b)   Reports  on  Form  8-K

      The  Company  filed  the following reports on Form 8-K in the three
      months ended June  30,  2002  and  in  July  2002:

      Form  8-K  dated  April  3,  2002:
         Item  2.  Acquisition  or  Disposition  of  Assets

      Form  8-K  dated  April  19,  2002:
         Item  2.  Acquisition  or  Disposition  of  Assets
         Item  7.  Financial  Statements  and  Exhibits

      Form  8-K/A  dated  April  30,  2002:
         Item  7.  Financial  Statements  and  Exhibits

      Form  8-K  dated  May  2,  2002:
         Item  2.  Acquisition  or  Disposition  of  Assets


                                       14

<PAGE>

      Form  8-K  dated  May  13,  2002:
         Item  4.  Changes  in  Registrant's  Certifying  Accountant
         Item  7.  Financial  Statements  and  Exhibits

      Form  8-K  dated  May  21,  2002:
         Item  2.  Acquisition  or  Disposition  of  Assets

      Form  8-K  dated  June  19,  2002:
         Item  2.  Acquisition  or  Disposition  of  Assets

      Form  8-K  dated  June  27,  2002:
         Item  2.  Acquisition  or  Disposition  of  Assets
         Item  7.  Financial  Statements  and  Exhibits

      Form  8-K/A  dated  July  10,  2002:
         Item  7.  Financial  Statements  and  Exhibits

      Form  8-K  dated  July  22,  2002:
         Item  5.  Other  Events  and  Regulation  FD  Disclosure


                                       15

<PAGE>

                                   SIGNATURES

Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.


                                  CYBERNET INTERNET SERVICES INTERNATIONAL, INC.


Date:  September 19, 2002         By: /s/ Michael J. Smith
                                     -------------------------------------------
                                     Michael J. Smith
                                     Chief Executive Officer and Chief
                                     Financial Officer


                                       16

<PAGE>

                        CERTIFICATION OF PERIODIC REPORT


I,  Michael  J.  Smith,  certify  that:

1.     I  have  reviewed this quarterly report on Form 10-Q of Cybernet Internet
Services  International,  Inc.  (the  "Registrant");

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;  and

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.

Date:  September 19, 2002

                                       /s/ Michael J. Smith
                                     -------------------------------------------
                                     Michael J. Smith
                                     Chief Executive Officer and
                                     Chief Financial Officer


                                       17