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                                  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 MARCH 31, 2003

                                       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  by  check  mark  whether  the  Registrant  is an accelerated filer (as
defined  in  Rule  12b-2  of  the  Act)   YES          NO    X
                                               -----       -----

The  Registrant  had  26,445,627  shares  of  common  stock,  $0.001  par  value
outstanding  as  of  July  29,  2003.


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<PAGE>

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

ITEM  1.     FINANCIAL  STATEMENTS


                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.

                        CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2003

                                  (UNAUDITED)

                                        2

<PAGE>

                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                           DECEMBER 31, 2002    MARCH 31, 2003
                                           -----------------    --------------
                                                  (Euros in thousands)
                  ASSETS

<S>                                        <C>                  <C>
Current Assets
  Cash and cash equivalents                E  22,976            E  21,039
  Restricted cash                              1,815                  923
  Receivables                                  5,355                  588
  Prepaid and other                              419                  772
                                           ---------            ---------
     Total current assets                     30,565               23,322

Long-Term Assets
  Properties                                   1,125                  190
  Deferred debt issuance cost                  3,653                3,364
                                           ---------            ---------
                                               4,778                3,554
                                           ---------            ---------
    Total assets                           E  35,343            E  26,876
                                           =========            =========

     LIABILITIES AND SHAREHOLDERS' DEFICIENCY

Current Liabilities
  Trade accounts payable                   E   3,078            E   1,395
  Other accrued expenses                      10,838                6,649
  Accrued personnel costs                      1,079                  987
                                           ---------            ---------
    Total current liabilities                 14,995                9,031

Long-Term Liabilities
  Long-term debt                             158,342              157,409
                                           ---------            ---------
    Total liabilities                        173,337              166,440

Common stock                                      25                   25
Additional paid-in capital                   127,718              127,718
Accumulated deficit                         (287,931)            (293,609)
Other comprehensive income                    22,194               26,302
                                           ---------            ---------
    Total shareholders' deficiency          (137,994)            (139,564)
                                           ---------            ---------
                                           E  35,343            E  26,876
                                           =========            =========

</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>

                                                   FOR THE THREE               FOR THE THREE
                                                   MONTHS ENDED                MONTHS ENDED
                                                   MARCH 31, 2002              MARCH 31, 2003
                                                  ---------------              --------------
                                                  (Euros in thousands, except per share data)
<S>                                               <C>                          <C>
Revenues                                          E   9,308                    E     630

Costs and expenses:
    Direct cost of services                           4,533                          397
    Network operations                                1,019                           80
    General and administrative expenses               5,479                        2,116
    Sales and marketing expenses                      1,927                          124
    Depreciation and amortization                     2,475                           62
                                                  ---------                    ---------
      Total costs and expenses                       15,433                        2,779
                                                  ---------                    ---------
Operating loss                                       (6,125)                      (2,149)

Other income and expenses:
    Interest expense                                (6,834)                       (6,044)
    Interest income                                    103                            41
    Equity in losses of equity-method investees       (135)                            -
    Gain on sale of assets and other                     -                         2,437
    Foreign currency gains (losses)                 (1,580)                           37
                                                  ---------                    ---------
Loss before taxes                                   (14,571)                      (5,678)
Income tax benefit (expense)                             (1)                           -
                                                  ---------                    ---------
Net loss                                            (14,572)                      (5,678)

Accumulated deficit, beginning of period           (249,473)                    (287,931)
                                                  ---------                    ---------
Accumulated deficit, end of period                E(264,045)                   E(293,609)
                                                  =========                    =========

Loss per share, basic and diluted                 E   (0.55)                   E   (0.21)
                                                  =========                    =========

Number of shares used to compute loss per share
  (thousands)                                        26,445                       26,445
                                                  =========                    =========

</TABLE>


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

                                        4

<PAGE>

                      CYBERNET SERVICES INTERNATIONAL, INC.
                  CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                   FOR THE THREE            FOR THE THREE
                                                   MONTHS ENDED             MONTHS ENDED
                                                   MARCH 31, 2002           MARCH 31, 2003
                                                   --------------           --------------
                                                            (Euros in thousands)
<S>                                                <C>                      <C>
Net loss                                           E   (14,572)             E   (5,678)
Other comprehensive income (loss):
  Foreign currency translation adjustment                    6                   4,108
  Net unrealized gains (losses) on
    available-for-sale securities                         (579)                      -
                                                   -----------              ----------
  Other comprehensive income (loss)                       (573)                  4,108
                                                   -----------              ----------
Comprehensive loss                                 E   (15,145)             E   (1,570)
                                                   ===========              ==========

</TABLE>


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

                                        5

<PAGE>

                      CYBERNET SERVICES INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                    FOR THE THREE          FOR THE THREE
                                                                    MONTHS ENDED           MONTHS ENDED
                                                                    MARCH 31, 2002         MARCH 31, 2003
                                                                    --------------         --------------
<S>                                                                 <C>
                                                                             (Euros in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                            E   (14,572)           E   (5,678)
ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH USED IN OPERATIONS:
  Depreciation and amortization                                           2,475                    62
  Equity in losses of equity-method investees                               135                     -
  Provision for losses on accounts receivable                             1,492                   378
  Amortization of bond discount                                             664                   544
  Accreted interest expense on long-term debt                             3,443                 3,674
  Gain on disposal of assets                                                  -                (1,969)
  Foreign currency translation loss (gain)                                  639                   (25)
CHANGES IN OPERATING ASSETS AND LIABILITIES:
  Restricted cash                                                           560                   891
  Trade accounts receivable                                                 777                 1,946
  Other receivables                                                         577                 1,071
  Other assets                                                              (32)                 (416)
  Prepaid expenses                                                         (193)                   (3)
  Other current assets                                                     (130)                   57
  Trade accounts payable                                                   (305)               (1,171)
  Other accrued expenses and liabilities                                 (1,216)               (2,632)
  Accrued personnel costs                                                 1,003                   (17)
                                                                    -----------            ----------
    Net cash used in operating activities                                (4,683)               (3,288)

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of short-term investments                                145                     -
Proceeds from restricted investments                                      5,304                     -
Purchase of property and equipment                                          (87)                   (1)
Proceeds from sale of property and equipment                                837                     -
Sale of businesses, net of cash sold                                          -                 1,733
Payment of deferred purchase obligations                                      -                    (2)
                                                                    -----------            ----------
    Net cash provided by investing activities                             6,199                 1,730

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments under capital lease obligations                       (1,497)                    -
Proceeds from borrowings                                                    866                     -
Repayment of borrowings                                                  (1,036)                    -
                                                                    -----------            ----------
    Net cash used in financing activities                                (1,667)                    -

Impact of foreign exchange rate changes                                     156                  (379)
                                                                    -----------            ----------
Net increase (decrease) in cash and cash equivalents                          5                (1,937)
Cash and cash equivalents at beginning of period                          2,735                22,976
                                                                    -----------            ----------
Cash and cash equivalents at end of period                          E     2,740            E   21,039
                                                                    ===========            ==========

</TABLE>


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

                                        6

<PAGE>

                 CYBERNET INTERNET SERVICES INTERNATIONAL, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED MARCH 31, 2003
                                   (UNAUDITED)

1.     BASIS  OF  PRESENTATION

The  accompanying  interim period unaudited consolidated financial statements of
Cybernet  Internet Services International, Inc. (the "Company" and together with
its subsidiaries "Cybernet") 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 (the "SEC") 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 three months ended March
31,  2003  are not necessarily indicative of results to be expected for the year
ended  December  31,  2003.  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, 2002.  Certain
reclassifications  have  been  made  to the prior period financial statements to
conform  to  the  current  period  presentation.

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.  These  conditions  raise
substantial  doubt  about  the Company's ability to continue as a going concern.
The  Company  is currently reviewing its strategic options including identifying
alternative  financing  sources,  seeking  changes  to  its  debt  structure,
considering  sales  of  assets and liquidation. However, there are no assurances
that  management's  review  of  these options will result in a plan which can be
accomplished or will provide sufficient cash to fund the Company's operations or
satisfy  its  creditors  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  March  31,  2002 and 2003, 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.

                                        7

<PAGE>

4.     SEGMENT  INFORMATION

The  Company  operates  in  one  line  of  business, which is providing Internet
related  communication  services,  principally  for  corporate  customers.

5.     DISPOSAL  OF  ASSETS  AND  BUSINESSES

In  the  quarter  ended March 31, 2003, the Company completed asset dispositions
for  total  sales  proceeds  of approximately E2.7 million, which relates to the
disposal  of  assets  of  Cybernet  (Schweiz)  AG  to  Viatel  AG  for a gain of
approximately  E2.5  million,  subject  to  adjustments.

6.     DEFERRED  DEBT  ISSUANCE  COSTS

Deferred  debt  issuance  costs  consist principally of expenses incurred by the
Company in connection with the notes issued during 1999.  Deferred debt issuance
costs are being amortized to interest expense over the period of the maturity of
the  said  notes.

7.     RELATED  PARTY  TRANSACTIONS

MFC  Bancorp  Ltd. ("MFC") is considered a related party as 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 provided a
revolving  senior secured credit facility in an aggregate amount of E7.0 million
to  the  Company,  which  expired  on March 12, 2003. In April 2002, the Company
entered  into  an  agreement  to  engage  MFC  to provide strategic advisory and
restructuring  services.  Pursuant to such agreement, MFC will be paid a success
fee  upon  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 E175,000 in advance to MFC.  The
agreement  is  terminable  by  either  party  on  30 days' prior written notice.

8.     COMMITMENTS/LEASES

As at March 31, 2003, the Company had commitments under rental payments totaling
approximately E0.6  million,  payable over the nine-month period ending December
31,  2003.

9.     SUBSEQUENT  EVENTS

Subsequent to March 31, 2003, the Company entered into a joint venture agreement
for  the  participation and investment in the field of electronic commerce.  The
joint  venture will provide customer relationship management services through an
Internet  enabled contact center in India for technology companies and financial
institutions  in  the  European  and  United  States  markets.

Subsequent  to  March  31,  2003,  the Company also repurchased for cancellation
Approximately $46.0  million in  principal  amount of its outstanding 14% senior
notes  due 2009 for approximately $9.4 million, or $20.50 per $100 face value of
each  note.

10.     RECLASSIFICATIONS

Certain  reclassifications  have  been  made  to  the  prior  period  financial
statements  to  conform  with  the  current  period's  presentation.

                                        8

<PAGE>

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

The following discussion and analysis of the results of operations and financial
condition  of Cybernet Internet Services International, Inc. for the three month
period  ended March 31, 2003 should be read in conjunction with the consolidated
financial  statements  and  related  notes included in this quarterly report, as
well  as  our  latest annual report on Form 10-K for the year ended December 31,
2002.  Certain  reclassifications  have  been made to the prior period financial
statements  to  conform  to  the  current  period  presentation.

In  this  document:  (i)  "we",  "our",  "us",  the "Company" or "Cybernet" mean
Cybernet  Internet Services International, Inc. and its subsidiaries, unless the
context  otherwise  suggests; (ii) information is provided as of March 31, 2003,
unless  otherwise  stated;  (iii)  all  references  to  monetary  amounts are to
"Euros",  the  lawful  currency  adopted  by most members of the European Union,
unless  otherwise  stated;  and  (iv)  "E"  refers  to  Euros.

RESULTS  OF  OPERATIONS  -  THREE  MONTHS  ENDED  MARCH  31,  2003

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

<TABLE>
<CAPTION>

                                             THREE MONTHS ENDED MARCH 31,
                                         -----------------------------------
                                            2002                     2003
                                         ----------               ----------
<S>                                      <C>                      <C>
                                                (Euros in thousands)
Revenues
  Internet data center services          E  2,709                 E     47
  Connectivity                              6,484                      583
  E-business                                  115                        -
                                         --------                 --------
    Total revenues                       E  9,308                 E    630
                                         ========                 ========

</TABLE>

Total revenues decreased from E9.3 million in the three-month period ended March
31,  2002  to E0.6  million  in  the comparative period of 2003. The decrease in
revenues  resulted  primarily  from the disposition of assets in 2002 as part of
the  rationalization of our operations.  Internet data center revenues decreased
from E2.7  million  in  the  three-month  period  ended  March  31,  2002  to
approximately E47,000  in the comparative period of 2003.  Connectivity revenues
decreased  from E6.5  million  in  the first three months of 2002 to E0.6 in the
current  quarter.

We  have  entered  into  a  joint  venture  agreement  for the participation and
investment  in the field of electronic commerce.  The joint venture will provide
customer  relationship  management  services through an Internet enabled contact
center  in  India  for  technology  companies  and financial institutions in the
European  and  United  States markets. The joint venture is in the developmental
stage.  We  intend  to focus our activities upon opportunities in the electronic
commerce  field.

Costs  and  expenses decreased in the current period from the comparative period
in  2002,  primarily as a result of the disposition of assets in 2002 as part of
the  rationalization  of  our operations. Direct cost of services decreased from
E4.5 million  in  the  three  months ended March 31, 2002 to E0.4 million in the
comparative  period  of  2003.  Direct  cost  of  services  consists  of:  (i)
telecommunications  expenses  which primarily 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
(ii)  the  cost  of  hardware  and  software  sold.

                                        9

<PAGE>

Network  operations  costs decreased from E1.0 million in the first three months
of  2002  to E0.1  million  in  the current quarter.  General and administrative
expenses decreased from E5.5 million in the three months ended March 31, 2002 to
E2.1  million  in  the current quarter.   Sales and marketing expenses decreased
from E1.9  million  in  the  first  three  months of 2002 to E0.1 million in the
current  quarter.

Depreciation  and amortization expenses decreased from E2.5 million in the three
months  ended March 31, 2002 to E0.1 million in the current quarter, as a result
of  the  disposition  of  various  assets  in  2002.

Interest expense decreased from E6.8 million in the three months ended March 31,
2002  to E6.0  million  in the current quarter as a result of the lower exchange
rate  between  the  U.S.  dollar and Euro in the current period. Interest income
decreased  from E0.1  million  in  the  three  months  ended  March  31, 2002 to
approximately E41,000  in the current quarter and represented interest earned on
the proceeds of offerings before the proceeds were utilized in our business.  We
had  other  income  of E2.4  million  in  the current period, primarily from the
disposition  of  assets  of  our  Swiss  subsidiary,  Cybernet  (Schweiz)  AG.

For  the  three  months  ended  March  31,  2003, we reported a net loss of E5.7
million, or E0.21 per share on a basic and diluted basis, compared to a net loss
of E14.6  million,  or E0.55  per  share  on  a  basic and diluted basis, in the
comparative  period  of  2002.

LIQUIDITY  AND  CAPITAL  RESOURCES

Since  our  inception, we have financed our operations and growth primarily from
the  proceeds  of  private and public sales of securities and, accordingly, have
incurred  a  significant  amount of debt.  Total net proceeds of debt and equity
offerings  in  the  past  five  years  amounted  to  approximately $293 million,
including  the issuance of $225 million of public debt during 1999.  As a result
of  the  significant  adjustment  in the telecommunications industry and capital
market  trends  that began in 2001 and which continued and worsened in 2002, our
financial  condition  has  been  materially adversely affected.  The significant
amount of debt we have incurred has hindered our ability to raise further funds.

At  March  31,  2003,  we  had cash and cash equivalents totalling approximately
E21.0  million, compared to approximately E23.0 million at  December  31,  2002.
Our  working  capital,  defined  as  the  excess  of our current assets over our
current  liabilities,  was E14.3  million  at  March  31,  2003.


Operating  activities  used cash of E3.3 million in the three months ended March
31,  2003, compared to E4.7 million in the comparative period of 2002, primarily
to fund operations.  A decrease in restricted cash provided cash of E0.9 million
in  the  current quarter, compared to E0.6 million in the comparative quarter of
2002.  A  decrease in trade accounts receivable provided cash of E1.9 million in
the  current  quarter, compared to E0.8 million in the  comparative  quarter  of
2002.  A  decrease  in  other  receivables  provided cash of E1.1 million in the
current quarter, compared to E0.6 million in the comparative quarter of 2002.  A
decrease  in  trade  accounts  payable  used cash of E1.2 million in the current
quarter,  compared  to E0.3  million  in  the  comparative  quarter  of 2002.  A
decrease  in other accrued expenses and liabilities used cash of E2.6 million in
the  current  quarter,  compared  to E1.2  million in the comparative quarter of
2002.

                                       10

<PAGE>

Investing  activities  provided  cash  of E1.7 million in the three months ended
March  31, 2003, primarily as a result of the disposition of  businesses, net of
cash  sold.  Investing  activities  provided  cash  of E6.2 million in the three
months  ended  March  31,  2002,  primarily  as  a result of the sale of certain
restricted  investments.

Financing  activities did not use cash in the three months ended March 31, 2003.
Financing  activities  used  cash  of E1.7  million in the comparative period of
2002,  primarily as a result of the early termination of one of our main leasing
contracts.

On March 12, 2002, we entered into a Credit Facility Agreement with MFC Merchant
Bank S.A. which provided for a credit facility in the aggregate principal amount
of  up  to E7.0  million (the "Credit Facility") to be made available to us. The
Credit  Facility expired on March 12, 2003 pursuant to its terms.  There were no
amounts  outstanding  under  the  Credit  Facility  when  it  expired.

In  July  2003,  we  repurchased for cancellation approximately $46.0 million in
principal  amount of our outstanding 14% senior notes due 2009 for approximately
$9.4  million,  or  $20.50  per  $100  face  value  of  each  note.

As a result of certain dispositions made in 2002, we have a sufficient amount of
funds  to finance our present operations.  However, we do not have the financial
resources to satisfy our debt obligations as they mature or upon acceleration in
the  event  of default.  Our ability to continue as a going concern is dependent
upon  our  ability  to obtain additional financing and restructure our debt.  We
are  currently  in  the  process of identifying sources of additional financing,
seeking  changes  to  our  debt  structure and evaluating our strategic options.
However,  there  are  no  assurances  that  these  plans  can be accomplished on
satisfactory terms, or at all, or that they will provide sufficient cash to fund
our  operations,  pay  the principle of, and interest on, our indebtedness, fund
our  other  liquidity  needs or permit us to refinance our indebtedness. Options
under  review  include,  but  are  not limited to, pursuing restructuring of our
indebtedness  on  a  consensual  basis  or  under  the  provisions of bankruptcy
legislation,  or  liquidating  our  business  and  operations.

CRITICAL  ACCOUNTING  POLICIES

The  preparation  of  financial statements in conformity with generally accepted
accounting  principles requires our management to make estimates and assumptions
that  affect  the  reported  amounts of assets and liabilities and disclosure of
contingent  assets  and  liabilities at the date of the financial statements and
the  reported  amounts  of  revenues  and expenses during the reporting periods.

Our  management  routinely  makes  judgments  and estimates about the effects of
matters  that  are  inherently  uncertain.  As  the  number  of  variables  and
assumptions  affecting  the  probable  future  resolution  of  the uncertainties
increase,  these  judgments  become  even  more  subjective and complex. We have
identified  certain  accounting  policies  that  are  the  most important to the
portrayal  of  our  financial  condition  and  results  of  operations.

For information about our critical accounting policies, see our annual report on
Form  10-K  for  the  year  ended  December  31,  2002.

                                       11

<PAGE>

FOREIGN  CURRENCY

We have incurred a substantial amount of debt in U.S. dollars.  Accordingly, our
financial  position  for  any  given  period,  when  reported  in  Euros, can be
significantly  affected  by  the  exchange  rate for the U.S. dollar to the Euro
prevailing  during  the  period.

We  translate  foreign assets and liabilities into Euros at the rate of exchange
on  the  balance sheet date. Revenues and expenses are translated at the average
rate  of exchange prevailing during the period.  Unrealized gains or losses from
these translations are recorded as shareholders' equity on our balance sheet and
do  not  affect  our  net  earnings.

In the three months ended March 31, 2003, we reported a net E4.1 million foreign
exchange  translation  gain, which was included in the consolidated statement of
comprehensive  loss.  The U.S. dollar declined by approximately 3.7% against the
Euro  in  the  current  period  from  December  31,  2002.

CAUTIONARY  STATEMENT  REGARDING  FORWARD-LOOKING  INFORMATION

The  statements in this report that are not based on historical facts are called
"forward-looking  statements"  within  the  meaning of the United States Private
Securities Litigation Reform Act of 1995. These statements appear in a number of
different  places  in  this  report  and  can  be  identified  by  words such as
"estimates",  "projects",  "expects",  "intends",  "believes", "plans", or their
negatives  or other comparable words. Also look for discussions of strategy that
involve  risks  and uncertainties. Forward-looking statements include statements
regarding  the  outlook for our 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.  You are
cautioned  that  any  such forward-looking statements are not guarantees and may
involve  risks  and uncertainties. Our actual results may differ materially from
those  in the forward-looking statements due to risks facing us or due to actual
facts  differing  from  the  assumptions underlying our estimates. Some of these
risks and assumptions include those set out below, as well as those contained in
reports  and  other  documents  we  have  filed  with  or  furnished to the SEC,
including  our  annual report on Form 10-K for the year ended December 31, 2002.
We  advise you that these cautionary remarks expressly qualify in their entirety
all  forward-looking  statements  attributable  to  us  or persons acting on our
behalf.  Unless  required  by  law,  we  do  not assume any obligation to update
forward-looking  statements  based  on  unanticipated  events  or  changed
expectations.  However,  you  should  carefully  review  the  reports  and other
documents  we  file  from  time  to  time  with  the  SEC.

WE  MAY  NOT  BE  ABLE  TO  CONTINUE  OUR  BUSINESS  AS  A  GOING  CONCERN.

Our ability to continue as a going concern and realize the carrying value of our
assets  is  dependent  upon  our  ability  to  obtain  additional  financing  or
restructure our debt.  We are currently in the process of identifying sources of
additional  financing and seeking changes to our debt structure.  However, there
are no assurances that these plans can be accomplished on satisfactory terms, or
at all, or that they will provide sufficient cash to fund our future operations,
pay  the  principal  of,  and  interest  on,  our  indebtedness,  fund our other
liquidity  needs  or  permit us to refinance our indebtedness.  Our inability to
obtain  additional  financing  or  restructure  our  indebtedness  would  have a
material  adverse  effect  on our financial condition, results of operations and
ability to satisfy our obligations in the future, and may result in our pursuing
a  restructuring  of  our indebtedness either on a consensual basis or under the
provisions  of  bankruptcy  legislation,  or  liquidating  our  business

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<PAGE>

and  operations.  Further,  our  inability  to  obtain  additional  financing or
restructure  our  indebtedness,  or  our  pursuing  a  restructuring  of  our
indebtedness  either on a consensual basis or under the provisions of bankruptcy
legislation,  may  result in our securityholders losing all or substantially all
of  their  investment  in  our  securities.

WE  HAVE  INCURRED  A  SUBSTANTIAL  AMOUNT  OF  DEBT.

In  order  to  finance our business, we may need to secure additional sources of
funding,  including  debt  and/or  equity financing, in the future.  However, we
have  incurred  a substantial amount of debt, which hinders our ability to raise
further  funds.  There  can  be  no  assurance  that  we  will be able to secure
additional  funding in the future.  A high level of debt, arduous or restrictive
terms  and  conditions  relating  to  accessing certain sources of funding, poor
business  performance  in  the  future  or lower than expected cash inflows from
future  operations  could  have  materially  adverse  consequences on the future
operation  of  our  business  and  result  in  our securityholders losing all or
substantially  all  of  their  investment  in  our  securities.

Other  effects  of  a  high  level  of  debt  include  the  following:

  *  we may have difficulty borrowing money in the future, or accessing sources
     of  funding;

  *  we  may  need  to  use  substantially  all  of  our  cash flow from future
     operations  to pay principal and interest on our indebtedness, which would
     reduce  the  amount  of  cash  available  to  finance  our  operations and
     other business activities;  and

  *  a  high  debt level, arduous or restrictive terms and conditions, or lower
     than  expected  cash  flows  from  future  operations  would  make us more
     vulnerable to economic  downturns  and  adverse  developments  in  our
     business.

WE  MAY BE SUBJECT TO INTERNATIONAL BANKRUPTCY AND RELATED LAWS WHICH MAY AFFECT
THE  ENFORCEABILITY  OF  BANKRUPTCY  JUDGMENTS.

Our  subsidiaries  are  incorporated  under  the  laws  of various countries and
conduct  operations  in countries around the world. Consequently, the bankruptcy
laws  of  one  or  more countries in which our subsidiaries operate could apply.
Under  bankruptcy  laws in the United States, courts typically have jurisdiction
over a debtor's property, wherever located, including property situated in other
countries.  There  can  be  no  assurance,  however, that courts elsewhere would
recognize  the  United  States  bankruptcy  court's  jurisdiction.  Accordingly,
difficulties  may  arise  in  administering  a  United  States  bankruptcy  case
involving  a  debtor  with  its  principal  operating  assets outside the United
States,  and  any orders or judgments of a bankruptcy court in the United States
may  not  be  enforceable.

AS  MOST OF OUR ASSETS AND OFFICERS AND DIRECTORS ARE OUTSIDE THE UNITED STATES,
SERVICE  OF  PROCESS  AND  ENFORCEMENT  OF  JUDGEMENT  MAY  BE  DIFFICULT.

We  are a Delaware corporation.  However, most of our assets are located outside
the United States.  Further, our officers and directors are not residents of the
United  States,  and  their assets are located outside the United States.  Also,
most  of  our  subsidiaries  are incorporated in countries other than the United
States  and  conduct  their  operations and hold their assets outside the United
States.  As  a

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<PAGE>

result, it may not be possible for holders of our common stock to effect service
of process in the United States upon such non-resident officers and directors or
to  enforce  in  jurisdictions  outside  the  United  States judgements obtained
against  us or our directors and officers. This applies to any action, including
civil  actions  based on the United States federal securities laws. In addition,
awards for punitive damages in actions brought in the United States or elsewhere
may  be  unenforceable  in  jurisdictions  outside  the  United  States.

ECONOMIC  CONDITIONS  IN  THE  UNITED STATES, EUROPE AND GLOBALLY, AFFECTING THE
TELECOMMUNICATIONS  INDUSTRY,  AS  WELL  OTHER  TRENDS AND FACTORS AFFECTING THE
TELECOMMUNICATIONS  INDUSTRY,  ARE  BEYOND OUR CONTROL AND MAY RESULT IN REDUCED
DEMAND  AND  PRICING  PRESSURE  FOR  OUR  PRODUCTS  AND  SERVICES.

There are trends and factors affecting the telecommunications industry which are
beyond our control and may affect our future operations. Such trends and factors
include:

  *  adverse  changes in the public and private equity and debt markets and our
     ability  to  obtain  financing  or  to  fund  working  capital and capital
     expenditures;

  *  adverse  changes in the market conditions in our industry and the specific
     markets  for  our  products  and  services;

  *  the  overall  trend  toward  industry  consolidation  and rationalization;

  *  governmental  regulation;  and

  *  effects  of  war  and  acts  of  terrorism.

Economic  conditions  affecting  the  telecommunications  industry in the United
States,  Europe  and  globally may affect our business. Reduced capital spending
and/or  negative  economic  conditions in the United States, Europe and/or other
areas of the world could result in reduced demand for or pricing pressure on our
products  and  services.

WE  HAVE  A  LIMITED  OPERATING  HISTORY.

We  have  a  relatively short operating history and we are involved in a rapidly
evolving  and  unpredictable  industry.

WE  OPERATE  IN  A HIGHLY DYNAMIC AND VOLATILE INDUSTRY CHARACTERIZED BY RAPIDLY
CHANGING  TECHNOLOGIES  AND  EVOLVING  INDUSTRY  STANDARDS.

Our  industry  is  characterized  by  rapidly changing technologies and evolving
industry  standards.  Our  success  will  depend  on  our ability to comply with
emerging  industry  standards,  to address emerging market trends and to compete
with  technological and other developments carried out by others.  We may not be
successful  in  targeting  new  market  opportunities  or  in  achieving  market
acceptance  for  our  business.

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<PAGE>

ITEM  3.     QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT
             MARKET  RISK

Reference  is made to our annual report on Form 10-K for the year ended December
31,  2002  for  information  concerning market risk.  We are of the opinion that
there  have  been  no  material  changes in market risk since December 31, 2002.

ITEM  4.  DISCLOSURE  CONTROLS  AND  PROCEDURES

Within  90  days prior to the date of this report, we carried out an evaluation,
under  the  supervision  and  with  the participation of our principal executive
officer  and principal financial officer, of the effectiveness of the design and
operation  of our disclosure controls and procedures.  Based on this evaluation,
our  principal  executive officer and principal financial officer concluded that
our  disclosure controls and procedures are effective in timely alerting them to
material  information required to be included in our periodic reports filed with
the  SEC.  It should be noted that the design of any system of controls is based
in  part  upon  certain  assumptions about the likelihood of certain events, and
there  can  be no assurance that any design will succeed in achieving its stated
goals  under  all  future conditions, regardless of how remote.  In addition, we
reviewed  our  internal  controls, and there have been no significant changes in
such internal controls or in other factors that could significantly affect those
controls  subsequent  to  the  date  of  their  last  evaluation.

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<PAGE>

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

ITEM  1.     LEGAL  PROCEEDINGS

We  are  subject  to routine litigation incidental to our business and are named
from time to time as a defendant in various legal actions.  Reference is made to
our  annual  report  on  Form  10-K  for  the  year  ended December 31, 2002 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, we cannot state what the
eventual  outcome of pending matters will be.  We are contesting the allegations
made  in  each  pending  matter  and  while  we  believe, based upon our current
knowledge,  that  the  outcome  of such matters will not have a material adverse
effect  on  our consolidated financial position, such matters may be material to
our  operating  results  for  a  particular  period.


ITEM  6.          EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)    EXHIBITS

       10.1     Joint  Venture  Agreement  dated May 8, 2003 between Cybernet
                Internet  Services  International,  Inc.  and  Ravin  Prakash

       99.1*  -  Certifications

       ------------------------
       * In  accordance  with  Release 33-8212 of the SEC, these Certificates:
       (i) are "furnished" to  the  SEC and are not "filed" for the purposes of
       liability under the Securities Exchange Act of 1934, as amended; and (ii)
       are not to be subject to automatic incorporation by reference into any of
       our registration statements filed  under  the  Securities  Act  of  1933,
       as  amended,  for the purposes of liability  thereunder,  unless  we
       specifically  incorporate  them by reference therein.

(b)    REPORTS  ON  FORM  8-K

       We  have  filed  the following reports on Form 8-K with respect to the
       indicated items  since  December  31,  2002:

       Form  8-K  dated  January  2,  2003:
          Item  5.  Other  Events  and  Regulation  FD  Disclosure

       Form  8-K  dated  January  24,  2003:
          Item  5.  Other  Events  and  Regulation  FD  Disclosure

       Form  8-K  dated  April  29,  2003:
          Item  5.  Other  Events

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<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.


                        By:     /s/  Michael  J.  Smith
                            --------------------------------------
                            Michael  J.  Smith
                            President and Chief Financial Officer


Date:  July  29,  2003


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<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;

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

4.     The  Registrant's  other  certifying  officers  and I are responsible for
       establishing  and  maintaining disclosure  controls  and  procedures  (as
       defined in Exchange  Act  Rules  13a-14  and  15d-14)  for the Registrant
       and  have:

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

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

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

5.     The Registrant's other certifying officers and I have disclosed, based on
       our  most  recent  evaluation, to the Registrant's auditors and the audit
       committee of  the Registrant's board of directors (or persons  performing
       the equivalent functions):

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

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

6.     The  Registrant's  other certifying officers and I have indicated in this
       quarterly  report  whether  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.

Date:     July  29,  2003

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


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