U.S. SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB


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

        For the quarterly period ended February 28, 2001

[ ]     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. 0-31343

                         OZOLUTIONS INC.
(Exact name of small business issuer as specified in its charter)

           Delaware                         98-0229321
(State or Other Jurisdiction of           (IRS Employer
Incorporation or Organization)         Identification No.)

 30 Denver Crescent, Suite 200, Toronto, Ontario, Canada M2J 1G8
            (Address of principal executive offices)

                         (416) 490-0254
                   (Issuer's telephone number)

                         Not Applicable
(Former name, address and fiscal year, if changed since last report)

Check  whether the issuer (1) has filed all reports required  to
be  filed by Section 13 or 15(d) of the Exchange Act during  the
preceding 12 months (or for such shorter period that the  issuer
was required to file such reports), and (2) has been subject  to
such filing requirements for the past 90 days.  Yes [X] No [ ]

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

Check whether the registrant has filed all documents and reports
required  to  be  filed by Sections 12,  13,  or  15(d)  of  the
Exchange Act subsequent to the distribution of securities  under
a plan confirmed by a court.  Yes  [   ]   No [   ]

APPLICABLE ONLY TO CORPORATE ISSUERS:
State  the number of shares outstanding of each of the  issuer's
classes of common equity, as of the latest practicable date:  At
April  10,  2001, there were 18,999,133 shares of  common  stock
outstanding.

<PAGE>

                           FORM 10-QSB
                        OZOLUTIONS, INC.

                              INDEX
                                                       Page

PART I.   Item 1. Financial Information                   3

          Balance Sheets at February 28, 2001             3
          (Unaudited) and August 31, 2000

          Statements of Changes in Stockholders'          4
          Equity (Deficit) for the Three Months
          and Six Months Ended February 28, 2001
          and 2000 and for the Period from
          Date of Inception (January 10, 1996)
          through February 28, 2001 (Unaudited)

          Statements of Operations for the Three          6
          Months Ended February 28, 2001 and 2000,
          and for the Period from Date of Inception
          (January 10, 1996) through February 28,
          2001 (Unaudited)

          Statements of Operations for the Six            7
          Months Ended February 28, 2001 and
          2000 (Unaudited)

          Statements of Cash Flows for the Six            8
          Months Ended February 28, 2001 and 2000,
          and for the Period from Date of Inception
          (January 10, 1996) through February 28,
          2001 (Unaudited)

          Notes to Financial Statements                  10

          Item 2. Management's Discussion and            13
          Analysis or Plan of Operation

PART II.  Other Information                              15

Signatures                                               16

                                  2
<PAGE>

                                PART I.
                     Item 1. Financial Information

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada

BALANCE SHEETS

                                                          (U.S. Dollars)

                                                    (Unaudited)
                                                    February 28,   August 31,
                                                       2001          2000

ASSETS

Cash and Cash Equivalents                            $   1,532     $       -
Marketing Rights, Net of Accumulated Amortization      920,226       998,969
Deposits                                                22,292             -

Total Assets                                         $ 944,050     $ 998,969

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities
Accounts Payable                                     $  25,795     $   6,845
Due to 1421209 Ontario Limited - Due Within One Year   800,000       800,000
Due to Director                                         14,741             -
Due to Stockholders                                    109,543        28,883

Total Current Liabilities                              950,079       835,728

Other Liabilities
Due to 1421209 Ontario Limited - Due After One Year    200,000       200,000

Total Liabilities                                    1,150,079     1,035,728

Stockholders' Equity (Deficit)
Common Stock: $.001 Par; 50,000,000 Shares
   Authorized, 18,999,133 Issued and Outstanding        18,999        18,999

Additional Paid-In Capital                              57,217        33,217
Deficit Accumulated During Development Stage          (282,245)      (88,975)

Total Stockholders' Equity (Deficit)                  (206,029)      (36,759)

Total Liabilities and Stockholders' Equity (Deficit) $ 944,050     $ 998,969

The accompanying notes are an integral part of this financial statement.

                                  3
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


STATEMENTS  OF  CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  FOR  THE  THREE
MONTHS  AND SIX MONTHS ENDED FEBRUARY 28, 2001 AND 2000 AND FOR THE PERIOD
FROM  DATE  OF  INCEPTION  (JANUARY 10, 1996) THROUGH  FEBRUARY  28,  2001
(UNAUDITED)
<TABLE>
<CAPTION>
                                                                (U.S. Dollars)
                                                                                 Deficit
                                                                               Accumulated    Total
                                                                   Additional    During    Stockholders'
                                    Number        Par     Common     Paid-In   Development    Equity
                                  of Shares      Value     Stock     Capital      Stage     (Deficit)
<S>                               <C>          <C>       <C>        <C>        <C>          <C>
Balance - January 10, 1996                 -   $     -   $      -   $      -   $       -    $       -

January 11, 1996
Common  Stock Issued in
Exchange for Expenses Paid by
Stockholders                      10,999,133     0.001     10,999          -           -       10,999

Net Loss for the Period                    -         -          -          -     (11,049)     (11,049)

Balance - August 31, 1999         10,999,133     0.001     10,999          -     (11,049)         (50)

Net Loss for the Period                    -         -          -          -           -            -

Balance - November 30, 1999       10,999,133     0.001     10,999          -     (11,049)         (50)

June 21, 2000
Common Stock issued as partial
consideration for acquisition
of marketing contracts             8,000,000     0.001      8,000          -           -        8,000

Cash Contribution of Capital               -         -          -     17,217           -       17,217

Territory Fee Paid by
Stockholder on Behalf of the
Corporation                                -         -          -     10,000           -       10,000

Consulting Services Contributed
by Officers/Directors                      -         -          -      6,000           -        6,000

Net Loss for the Period                    -         -          -          -     (77,926)     (77,926)

Balance - August 31, 2000         18,999,133   $ 0.001   $ 18,999   $ 33,217   $ (88,975)   $ (36,759)

</TABLE>
The accompanying notes are an integral part of this financial statement.

                                                             - continued -
                                  4
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


STATEMENTS  OF  CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  FOR  THE  THREE
MONTHS  AND SIX MONTHS ENDED FEBRUARY 28, 2001 AND 2000 AND FOR THE PERIOD
FROM  DATE  OF  INCEPTION  (JANUARY 10, 1996) THROUGH  FEBRUARY  28,  2001
(UNAUDITED) - continued

<TABLE>
<CAPTION>
                                                                (U.S. Dollars)
                                                                                 Deficit
                                                                               Accumulated    Total
                                                                   Additional    During    Stockholders'
                                    Number        Par     Common     Paid-In   Development    Equity
                                  of Shares      Value     Stock     Capital      Stage     (Deficit)
<S>                               <C>          <C>       <C>        <C>        <C>          <C>
Balance - August 31, 2000         18,999,133   $ 0.001   $ 18,999   $ 33,217   $ (88,975)   $ (36,759)

Consulting Services Contributed
by Officers/Directors                      -         -          -      9,000           -        9,000

Net Loss for the Period                    -         -          -          -     (95,765)     (95,765)

Balance - November 30, 2000       18,999,133     0.001     18,999     42,217    (184,740)    (123,524)

Consulting Services Contributed
by Officers/Consultants                    -         -          -     15,000           -       15,000

Net Loss for the Period                    -         -          -          -     (97,505)     (97,505)

Balance - February 28, 2001       18,999,133   $ 0.001   $ 18,999   $ 57,217   $(282,245)   $(206,029)
</TABLE>
The accompanying notes are an integral part of this financial statement.

                                  5
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 28,  2001
AND  2000 AND FOR THE PERIOD FROM DATE OF INCEPTION (JANUARY 10, 1996)
THROUGH FEBRUARY 28, 2001 (UNAUDITED)

                                 (U.S. Dollars)
                                       Date
                                   of Inception
                                      Through     Three Months Ended
                                    February 28,      February 28,
                                       2001         2001        2000

Revenues                             $       -   $       -   $        -

Expenses
Amortization of Marketing Contracts    104,991      39,372            -
Contracts
Consulting Fees                         75,000      34,500            -
Professional Fees                       43,843       6,110            -
Organization Costs                      11,049           -            -
Territory Fee                           10,000           -            -
Transfer Agent Fees                     16,605       8,555            -
General and Administrative               8,276       2,087            -
Marketing                               12,481       6,881            -

Total Expenses                         282,245      97,505            -

Net Loss for the Period              $(282,245)  $ (97,505)  $        -

Weighted Average of Common Shares
Outstanding                                      18,999,133  10,999,133

Net Loss per Common Share - Basic
and Diluted                                      $     (.01) $   (0.000)


The accompanying notes are an integral part of this financial statement.

                                  6
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2001 AND 2000

                                                 Six Months Ended
                                                   February 28,
                                                 2001         2000

Revenues                                      $        -   $        -

Expenses
Amortization of Marketing Contracts               78,743            -
Contracts
Consulting Fees                                   69,000            -
Professional Fees                                 17,510            -
Organization Costs                                     -            -
Territory Fee                                          -            -
Transfer Agent Fees                                9,570            -
General and Administrative                         5,966            -
Marketing                                         12,481            -

Total Expenses                                   193,270            -

Net Loss for the Period                       $ (193,270)  $        -


Weighted Average of Common Shares              18,999,133  10,999,133
Outstanding

Net Loss per Common Share - Basic
and Diluted                                   $    (0.01)  $   (0.000)


The accompanying notes are an integral part of this financial statement.

                                  7
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada

STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2001
AND  2000  AND  FOR THE PERIOD FROM DATE OF INCEPTION (JANUARY  10,
1996) THROUGH FEBRUARY 28, 2001 (UNAUDITED)

                                                 (U.S. Dollars)

                                            Date of
                                           Inception    Six Months Ended
                                            Through       February 28,
                                          February 28,
                                              2001       2001       2000

Cash Flows from Operating Activities

Net Loss for the Period                    $(282,245) $(193,270)  $     -

Adjustments:
Contributed Services                          30,000     24,000         -
Amortization of Marketing Contracts          104,991     78,743         -

Changes in Assets and Liabilities:
Marketing Rights                             (17,217)         -         -
Deposits                                     (22,292)   (22,292)        -
Accounts Payable                              25,795     18,950         -
Due to Director                               14,741     14,741         -
Due to Stockholders                          109,543     80,660         -

Net Cash Flows from Operating Activities     (36,684)      1,532        -

Cash Flows from Investing Activities               -           -        -

Cash Flows from Financing Activities
Paid-In Capital                               27,217           -        -
Proceeds from Common Stock                    10,999           -        -

Net Cash Flows from Financing Activities      38,216           -        -

Net Increase in Cash and Cash Equivalents      1,532       1,532        -

Cash and Cash Equivalents - Beginning of           -           -        -
Period

Cash and Cash Equivalents - End of Period  $   1,532  $    1,532  $     -

The accompanying notes are an integral part of this financial statement.

                                  8
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

                                            Date of
                                           Inception    Six Months Ended
                                            Through       February 28,
                                          February 28,
                                              2001       2001       2000

Acquisition of Marketing Contracts
            Assets Purchased              $ 1,025,217   $     -   $      -

Less:  Purchase Price Financed via
       Payable to 1421209 Ontario Limited  (1,000,000)        -          -

Less:  Purchase Price Paid via Stock
       Issuance                                (8,000)        -          -

Cash Paid - Non-Refundable Deposit        $    17,217   $     -   $      -

The accompanying notes are an integral part of this financial statement.

                                  9
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


NOTES TO FINANCIAL STATEMENTS

Note A - Basis of Presentation
      The  condensed  financial statements  of  Ozolutions,  Inc.
      (the  "Company") included herein have been prepared by  the
      Company,   without  audit,  pursuant  to  the   rules   and
      regulations of the Securities and Exchange Commission  (the
      "SEC").    Certain  information  and  footnote  disclosures
      normally  included  in  financial  statements  prepared  in
      conjunction  with generally accepted accounting  principles
      have  been condensed or omitted pursuant to such rules  and
      regulations,  although  the  Company  believes   that   the
      disclosures are adequate to make the information  presented
      not   misleading.   These  condensed  financial  statements
      should  be  read  in  conjunction with the  annual  audited
      financial statements and the notes thereto included in  the
      Company's Form 10SB, and other reports filed with the SEC.

      The  accompanying  unaudited interim  financial  statements
      reflect  all  adjustments of a normal and recurring  nature
      which  are,  in  the  opinion of management,  necessary  to
      present   fairly   the  financial  position,   results   of
      operations  and cash flows of the Company for  the  interim
      periods  presented.   The results of operations  for  these
      periods  are  not necessarily comparable to, or  indicative
      of,  results  of any other interim period  of  or  for  the
      fiscal  year  taken as a whole.  Factors  that  affect  the
      comparability of financial data from year to year  and  for
      comparable  interim periods include non-recurring  expenses
      associated  with  the  Company's  registration   with   the
      Securities  and Exchange Commission and costs  incurred  to
      raise  capital and acquisitions of patents and  trademarks.
      Certain  financial  information that is  not  required  for
      interim financial reporting purposes has been omitted.

Note B - Other Matters
      Deposits
      During  the six months ended February 28, 2001, the Company
      deposited  $22,292  with  vendors to  purchase  twenty-five
      (25) Ozone Titan Water Purification Systems.

      Additional Capital Contribution
      During  the six months ended February 28, 2001, the Company
      received  an additional capital contribution of $18,000  in
      the  form  of  services  contributed  by  an  officer.   In
      addition,  one consultant contributed capital in  the  form
      of services which amounted to $6,000.

      Going Concern
      The  Company's financial statements have been presented  on
      the  basis  that it is a going concern, which  contemplates
      the   realization   of  assets  and  the  satisfaction   of
      liabilities  in the normal course of business. The  Company
      reported  net losses of $282,245 for the period  from  date
      of  inception (January 10, 1996) through February 28, 2001.
      As  a  result  there is a retained deficit of  $282,245  at
      February 28, 2001.

      The  Company's  continued existence is dependent  upon  its
      ability  to  raise  capital or to successfully  market  and
      sell  its  products.   The  financial  statements  do   not
      include any adjustments that might be necessary should  the
      Company be unable to continue as a going concern.

                                  10
<PAGE>

OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


NOTES TO FINANCIAL STATEMENTS


Note C - Marketing Rights
      Marketing   rights  represent  the  exclusive   rights   to
      distribute  "Hankin  Atlas  Ozone  Systems"  acquired  from
      1421209 Ontario Limited.  Contracts are recorded at cost.

      The  aggregate purchase price for the marketing rights  has
      been  allocated  to the three territories  based  upon  the
      estimated  net  revenue  of  each  of  the  territories  as
      follows:

                                                             2001

       Ontario Territory                             $    798,644
       Mexico Territory                                   150,912
       Caribbean Territory                                 75,661

       Total Marketing Contracts                     $  1,025,217
       Less:  Accumulated Amortization                    104,991

       Net Marketing Contracts                       $    920,226

      Contracts   for   the   Ontario,   Canada   and   Caribbean
      territories  are  being  amortized over  the  remainder  of
      their  useful  lives  of nine years  which  represents  the
      contractual  terms  of  three  years  plus  two   automatic
      renewal  extensions of three years each.  The contract  for
      the  Mexico territory is being amortized over the remainder
      of  its  initial  contract term of  three  years.   Renewal
      provisions of two, three year terms in the Mexico  contract
      were  not  included in the amortization period,  since  the
      renewal   was   contingent  upon  the   Company   achieving
      approximately $666,000 (U.S.) of sales during each term  of
      the  contract,  which is uncertain as of the  date  of  the
      financial statements.

      The  remaining contractual lives at the date of acquisition
      (June  21, 2000) upon which amortization expense  is  being
      charged to operations is as follows:

       Ontario Territory                               102 Months
       Mexico Territory                                 33 Months
       Caribbean Territory                             105 Months

      Amortization expense amounted to $78,743 and $-0-  for  the
      six months ended February 28, 2001 and 2000, respectively.


                                                         - continued -
                                  11
<PAGE>


OZOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Toronto, Ontario, Canada


NOTES TO FINANCIAL STATEMENTS


Note C - Marketing Rights - continued

      Impairment of Marketing Rights
      The  Company adopted the Statement of Financial  Accounting
      Standards  (SFAS) No. 121, "Accounting for  the  Impairment
      of  Long-Lived  Assets  and for  Long-Lived  Assets  to  be
      Disposed of."  Under the provisions of this statement,  the
      Company  has evaluated its long-lived assets for  financial
      impairment,  and will continue to evaluate them  as  events
      or  changes  in  circumstances indicate that  the  carrying
      amount of such assets may not be fully recoverable.

      The  Company  evaluates  the recoverability  of  long-lived
      assets  not held for sale by measuring the carrying  amount
      of  the assets against the estimated discounted future cash
      flows  associated  with them. At the time such  evaluations
      indicate  that the future discounted cash flows of  certain
      long-lived  assets  are  not  sufficient  to  recover   the
      carrying  value of such assets, the assets are adjusted  to
      their fair values.  Based on these evaluations, there  were
      no  adjustments to the carrying value of long-lived  assets
      in 2001.

                                  12
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Plan of Operation

     At the present time, Ozolutions Inc. is in the development
stage and does not provide any product or service.  We intend to
be an international marketer and distributor of water
purification systems using ozone technology. The markets we will
target are Mexico, the Caribbean Zone, and Ontario, Canada.

     Ozolutions  acquired  the  distribution  rights  to   Hankin
products  from  1421209 Ontario Limited for 8,000,000  shares  of
Ozolutions  common stock or approximately 42% of the  outstanding
shares,  $17,217  paid  at closing, and an additional  $1,000,000
payable in installments.

     Ozolutions  was  originally required to make  a  payment  of
$550,000  to  1421209 Ontario Limited no later than November  21,
2000,  as part of the purchase price for the distribution  rights
it  acquired  from  1421209  Ontario Limited,  but  this  payment
deadline  was  extended in November 2000  to  June  30,  2001  to
provide  Ozolutions  additional time to commence  operations  and
raise capital.  Additional payments of $250,000 and $200,000  are
due  no later than August 31, 2001 and September 30,2001.   There
was no affiliation between 1421209 Ontario Limited and Ozolutions
prior to the purchase of the distribution rights.

     We  expected  to make our first sales of the  OzoTitan  (now
called  the EntrOzone) in April, 2001, but delivery of the  first
water treatment units has been delayed due to continued upgrading
of  the  EntrOzone  unit to incorporate additional  multi-barrier
protection against water borne contaminants.  Delivery of initial
units is now expected by the end of April 2001.

     There  is  no  assurance that we will be  able  to  generate
sufficient revenue from operations within a time frame that  will
allow  for  timely payment of our obligations to 1421209  Ontario
Limited.   If  this occurs, we will seek financing  from  outside
sources  to  make these payments, but we have not  finalized  any
sources of financing and there is no assurance any financing will
be available on terms acceptable to Ozolutions.  If we are unable
to  locate  financing, Ozolutions will seek an extension  of  our
payment obligations from 1421209 Ontario Limited, but there is no
assurance  that  1421209 Ontario Limited will  grant  us  another
extension  should we request it.  Failure to make our  June  2001
payment to 1421209 Ontario Limited as required under our purchase
agreement  would  give  rise to a claim against  Ozolutions  that
could  result  in a loss of our marketing rights and  effectively
terminate our business.

     1421209 Ontario Limited has agreed to lend to Ozolutions  up
to $300,000 at our option to provide financing for our operations
at the time 1421209 Ontario Limited receives its first payment of
$550,000  from  Ozolutions under the purchase agreement  for  the
distribution  rights  to  Hankin  products.   The  loan  will  be
represented  by  a note due in two years bearing interest  at  an
annual rate of 6.5% and payable quarterly in arrears.

     Until  Ozolutions  receives outside financing  to  fund  its
capital commitments, its operations will be limited to those that
can  be effected through its officers, directors and consultants.
These persons, except for Edward G. Deans have verbally agreed to
defer  payment  of  compensation from  Ozolutions  until  revenue
generated  from  sales  of  product and  financing  from  outside
sources  provides sufficient working capital to  fund  operations
and  payment  of  their  compensation.  From  June  2000  through
February  2001, D. Brian Robertson, Joseph Cira, and Lou Shefsky,
stockholders of Ozolutions, advanced $88,494, $3,333, and $17,717
respectively  to  Ozolutions to cover  sales  and  administrative
expenses and an initial deposit of $22,292 made by Ozolutions for
the  purchase  of  25  EntrOzone water  treatment  systems.   Max
Weissengruber,  President  and  a  Director,  has  also  advanced
$14,741  to Ozolutions.  These advances do not bear interest  and
the parties have not set repayment terms.  These individuals have
verbally indicated

                                  13
<PAGE>

their willingness to make further advances  in
the  future  as  may  be  required  to  fund  ongoing  sales  and
administrative  operating costs.  These  advances  are  the  sole
source  of capital to fund operational costs.  However, there  is
no written or fixed obligation to make further advances, so there
is  no  assurance that Ozolutions will have the capital resources
to fund its operations over the next 12 months.

     Under  distribution  agreements  with  Hankin,  product   is
shipped  by  Hankin  against  purchase  orders  we  place  either
directly to the end user or dealer or to us for delivery  to  the
end   user  or  dealer.   Accordingly,  we  do  not  require  any
significant  amount  of  capital  for  inventory  or   facilities
required to maintain and distribute inventory.

     Based  solely  on  Managements evaluation of  the  potential
market, Ozolutions believes that 125 EntrOzone units can be  sold
in  Ontario by the end of June 2001.  We plan on taking  delivery
of  the  first 25 units in April and May and these units will  be
sold  directly to consumers and our independent dealers for their
initial inventory.  An additional 100 units have been ordered for
delivery   by  June  30,  2001,  against  purchase  orders   from
independent dealers.  If we have significantly over estimated the
potential  market  for  the EntrOzone, our  need  for  additional
capital could increase by as much as $170,000 to acquire and hold
that inventory of EntrOzone units.

     From the date of its inception, on January 10, 1996, through
February 28, 2001, Ozolutions has not generated any revenue  from
the  sale  of  water  treatment  systems.   Total  expenses  from
September 1, 2000 to February 28,2001, were $193,270.  This total
includes   consulting   and   professional   fees   of   $86,510,
amortization of marketing rights of $78,743, $9,570  in  transfer
agent   fees,  marketing  costs  of  $12,481,  and  general   and
administrative  expenses  of $5,966.   As  a  result,  Ozolutions
recognized a net loss for the six months ending February 28, 2001
of $193,270.

     Ozolutions  believes its general, selling and administrative
expenses  during the 12-month period following the  date  it  can
obtain  additional  financing  of  at  least  $300,000  will   be
$255,000.  Approximately $87,000 will be used for  marketing  and
sales expenses including:

     *    production of printed sales materials

     *    advertising in industry publications

     *    travel expenses associated with advancing  proposed
          projects in Mexico and the Caribbean Zone

     *    travel expenses associated with establishing an Ontario
dealer network

     Approximately $90,000 will be used to make payments under  a
consulting  contract  with  Edward  G.  Deans  who  has  assisted
Ozolutions  in  formulating marketing plans and  will  assist  in
their  implementation.  The remaining $78,000  is  the  estimated
cost of clerical and management staff and facilities required  to
operate over the next year.

Forward-Looking Statements

     All statements, other than statements of historical fact,
which address activities, actions, goals, prospects, or new
developments that Ozolutions expects or anticipates will or may
occur in the future, including such things as expansion and
growth of its operations and other such matters are forward-
looking statements.  Any one or a combination of factors could
materially affect Ozolutions' operations and financial condition.
These factors include competitive pressures, success or failure
of marketing programs, changes in pricing and availability of
products, and conditions in the capital markets.  Forward-

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looking statements made by Ozolutions are based on knowledge of its
business and the environment in which it operates as of the date
of this report.  Because of the factors listed above, as well as
other factors beyond its control, actual results may differ from
those in the forward-looking statements.

                   PART II.  OTHER INFORMATION

EXHIBITS AND REPORTS ON FORM 8-K

Exhibits

None.

Reports on Form 8-K

None

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                           SIGNATURES

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

                               OZOLUTIONS, INC.

Date: April 10, 2001           By: /s/Max Weissengruber, President

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