U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
    1934

                  For the quarterly period ended June 30, 2003

      [ ] Transition report under Section 13 or 15(d) of the Exchange Act

              For the transition period from ________ to _________

                         Commission File Number 0-027073

                                  INVESTCO, INC
        (Exact name of small business issuer as specified in its charter)

               Nevada                                   87-0381511
---------------------------------                       ----------
 (State or other jurisdiction                         (IRS Employer
of incorporation or organization)                   Identification No.)

                                9444 Old Katy Rd
                              Houston, Texas 77055
                    (Address of principal executive offices)

         Issuer's telephone number, including area code: (713) 722-9988
                                                         --------------

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ] No [ X ]

State the number of shares outstanding of each of the Issuer's classes of common
equity, as of the latest practical date: At March 31, 2004 there were
outstanding 3,034,400 shares of Common Stock, $.001 par value per share.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]




<PAGE>

                                TABLE OF CONTENTS

                                                                        PAGE
                                     PART I

Item 1.   Financial Statements:

          Balance Sheet as of June 30, 2003 (Unaudited)...................1

          Statements of Operations for the Three and Six
               Months ended June 30, 2003 and 2002 (Unaudited)............2

          Statements of Cash Flows for the Six Months ended
               June 30, 2003 and 2002 (Unaudited).........................3

          Notes to Financial Statements..................................4-5

Item 2.   Management's Discussion and Analysis or Plan of Operation......5-8

Item 3.   Controls and Procedures.........................................9

                                     PART II

Item 1.   Legal Proceedings...............................................9

Item 2.   Changes in Securities...........................................9

Item 3.   Defaults Upon Senior Securities.................................9

Item 4.   Submission of Matters to a Vote of Security Holders.............9

Item 5.   Other Information...............................................10

Item 6.   Exhibits and Reports on Form 8-K................................10

Signatures

Certification




<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS:


                                 Investco, Inc.
                                  Balance Sheet
                                  June 30, 2003
                                   (Unaudited)

                                     ASSETS


Total assets                                             $      -
                                                         ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
   Bank overdraft                                        $    21,924
   Accounts payable                                        1,058,001
   Accrued expenses                                          861,494
   Dividends payable                                         114,642
   Stock issuance cost payable                               254,840
                                                         ------------
    Total current liabilities                              2,310,901
                                                         ------------


Stockholders' Deficit:
   Series A convertible redeemable preferred stock,
    $0.001 par value, 2,500,000 shares authorized and
    391,500  shares issued and outstanding                       392
   Series B convertible redeemable preferred stock,
    $0.001 par value, 1,700,000 shares authorized and
    872,100 shares issued and outstanding                        872
   Series D convertible redeemable preferred stock,
    $0.001 par value, 4,000,000 shares authorized and
    3,575,000 shares issued and outstanding                    3,575
   Series E convertible redeemable preferred stock,
    $0.001 par value, 500,000 shares authorized and
    162,500 shares issued and outstanding                        163
   Common stock, $.001 par value, 100,000,000 shares
    authorized, 3,034,400 shares issued and outstanding.       3,034
   Additional paid-in capital                             11,929,318
   Deferred compensation                                    (363,338)
   Accumulated deficit                                   (13,884,917)
                                                         ------------
    Total stockholders' deficit                           (2,310,901)
                                                         ------------
    Total liabilities and stockholders' deficit          $      -
                                                         ============

            See accompanying notes to unaudited financial statements

                                       1

<PAGE>

                                    Investco
                            Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                          For the six months              For the three months
                                                            ended June 30,                    ended June 30,
                                                  --------------------------------  -------------------------------
                                                        2003             2002          2003             2002
                                                  ------------------  ------------  ------------  -----------------
<S>                                               <C>                 <C>          <C>            <C>
    Revenues                                      $            -      $      -     $       -      $           -

    Cost of Revenues                                           -             -             -                  -
                                                  ------------------  ------------  ------------  -----------------
    Gross profit                                               -             -             -                  -

    General and administrative                              157,764     2,452,296        45,707          1,201,166
                                                  ------------------  ------------  ------------  -----------------

    Loss from operations                                   (157,764)   (2,452,296)      (45,707)        (1,201,166)
                                                  ------------------  ------------  ------------  -----------------
    Interest expense                                           -           (2,164)         -                  -
                                                  ------------------  ------------  ------------  -----------------
    Loss from continuing operations                       (157,764)    (2,454,460)      (45,707)        (1,201,166)

    Discontinued operations:

    Income (loss) from discontinued operations                -            12,356           -               (2,750)
                                                  ------------------  ------------  ------------  -----------------
    Total income (loss) from discontinued
     operations                                               -            12,356           -               (2,750)
                                                  ------------------  ------------  ------------  -----------------
    Net loss                                               (157,764)   (2,442,104)      (45,707)        (1,203,916)

    Less: Preferred stock dividend                          (13,590)      (13,590)       (6,833)            (6,833)
                                                  ------------------  ------------  ------------  -----------------
    Loss available to common stockholders         $        (171,345)  $(2,455,694)  $   (52,540)  $     (1,210,749)
                                                  ==================  ============  ============  =================
    Basic and diluted income (loss) per common
     share
    Continuing operations                         $           (0.06)  $     (1.52)  $     (0.02)  $          (0.59)
    Discontinued operations                                     -            0.01           -                (0.01)
                                                  ------------------  ------------  ------------  -----------------
    Net loss per common share                     $           (0.06)  $     (1.51)  $     (0.02)  $          (0.60)
                                                  ==================  ============  ============  =================

    Weighted average number of shares outstanding         3,034,400     1,622,893     3,034,400          2,034,400
                                                  ==================  ============  ============  =================

</TABLE>

            See accompanying notes to unaudited financial statements

                                       2

<PAGE>


                                 Investco, Inc.
                             Statement of Cash Flow
                                   (Unaudited)

                                                     For the six months ended
                                                               June 30,
                                                      --------------------------
                                                          2003          2002
                                                      ------------- ------------
Cash flows from operating activities:

Loss from continuing operations                       $   (157,764) $(2,454,460)
 Adjustments to reconcile net loss from continuing
  operations to net cash used in operating activities:
   Issuance of common and preferred stock for services        -         250,000
   Issuance of common stock for compensation               134,414    2,000,000
   Changes in operating assets and liabilities:
(Increase) decrease in:
    Accounts receivable                                       -             795
    Prepaid expenses                                          -           3,750
    Security deposits                                         -           7,819
 Increase (decrease) in:
    Accounts payable                                          -           3,270
    Accrued expenses                                         5,126       65,595
                                                      ------------- ------------
 Cash used in continuing operating activities              (18,224)    (123,231)
                                                      ------------- ------------
Adjustments to reconcile income from
 discontinued operations to net cash provided
 by (used in) discontinued activities:
Income from discontinued operations                           -          12,356
                                                      ------------- ------------
    Cash provided by discontinued operating
     activities                                               -          12,356
                                                      ------------- ------------
    Cash used in operating activities                      (18,224)    (110,875)
                                                      ------------- ------------
Cash flows from investing activities:
 Proceed from sale of property and equipment                  -          12,250
                                                      ------------- ------------
    Cash provided by investing activities                     -          12,250
                                                      ------------- ------------
Cash flows from financing activities:
 Due from related parties                                   18,224        3,353
 Proceeds from issuance of common and
  preferred stock, net                                        -          95,000
                                                       ------------- -----------
    Cash provided by financing activities                   18,224       98,353
                                                      ------------- ------------
    Net decrease in cash                                      -            (272)

    Cash and cash equivalents at beginning of year            -             789
                                                      ------------- ------------
    Cash and cash equivalents at end of period        $       -     $       517
                                                      ============= ============

NON-CASH INVESTING AND FINANCING ACTIVITIES:

    Accrual of dividends payable                      $     13,590  $    13,590
                                                      ============= ============
    Capital lease and note payable converted to
     accounts payable                                 $       -     $   202,894
                                                      ============= ============


            See accompanying notes to unaudited financial statements.

                                       3

<PAGE>

                                 INVESTCO, INC.

                     Notes to Unaudited Financial Statements

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and Article 310 of Regulation S-B. Accordingly, they do not include all of the
information and footnotes required for complete financial statements. In the
opinion of management, all adjustments necessary for a fair presentation of the
results for the interim periods presented have been included. Such adjustments
consist of normal recurring accruals and other adjustments.

These results have been determined on the basis of generally accepted accounting
principles and practices applied consistently with those used in the preparation
of the Company's Annual Financial Statements for the year ended December 31,
2002 on Form 10-KSB. Operating results for the six months ended June 30, 2003
are not necessarily indicative of the results that may be expected for the year
ending December 31, 2003.

Investco has historically incurred significant losses and has substantial
negative cash flow from operations. Investco's auditors have included a
paragraph in their audit report in the Company's annual financial statements for
the year ended December 31, 2002, which expresses concern about Investco's
ability to continue as a going concern unless it can secure additional
financing.

It is recommended that the accompanying financial statements be read in
conjunction with the financial statements and notes thereto included elsewhere
in this filing.

NOTE 2- RECLASSIFICATIONS

Certain amounts previsouly reported for 2002 have been reclassified to conform
with the classifications used in 2003. Such reclassifications had no effect on
the reported net loss.

NOTE 3 - GOING CONCERN

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company has experienced
substantial losses from operations since its inception as well as negative cash
flows from operations. These matters raise substantial doubt about the Company's
ability to continue as a going concern. The Company's ability to continue in
existence as a going concern is dependent upon its ability to increase sales and
to obtain equity and/or debt financing. Management plans to pursue business
development and acquisitions in the telecommunications sector. The Company
intends to offer and sell an additional 500,000 shares of convertible preferred
stock by private placement.

                                       2

<PAGE>

NOTE 4-RECENT ACCOUNTING PRONOUNCEMENTS

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities." This statement addresses financial accounting
and reporting for costs associated with exit or disposal activities and
nullifies Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." SFAS No. 146 is
effective for exit or disposal activities initiated after December 31, 2002. The
Company does not expect the application of the provisions of SFAS No. 146 to
have an impact on its financial position, results of operations or cash flows.

In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation--Transition and Disclosure." This statement amends SFAS No. 123, to
provide alternative methods of transition for a voluntary change to the fair
value based method of accounting for stock-based employee compensation. In
addition, this statement amends the disclosure requirements of SFAS No. 123 to
require prominent disclosures in both annual and interim financial statements
about the method of accounting for stock-based employee compensation and the
effect of the method used on reported results. The Company does not expect the
application of the provisions of SFAS No. 146 to have an impact on its financial
position, results of operations or cash flows.

In November 2002, the FASB issued FASB Interpretation ("FIN") No. 45,
"Guarantor's Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others." FIN No. 45 requires the
recognition of a liability for certain guarantee obligations issued or modified
after December 31, 2002. FIN No. 45 also clarifies disclosure requirements to be
made by a guarantor of certain guarantees. The disclosure provisions of FIN No.
45 are effective for fiscal years ending after December 15, 2002. The Company
has adopted the disclosure provisions of FIN No. 45 as of February 28, 2003. The
Company does not expect the adoption of FIN No. 45 to have a material impact on
its financial position, results of operations or cash flows.

In January 2003, the FASB issued FIN No. 46, "Consolidation of Variable Interest
Entities, an Interpretation of ARB No. 51." FIN No. 46 requires certain variable
interest entities to be consolidated by the primary beneficiary of the entity if
the equity investors in the entity do not have the characteristics of a
controlling financial interest or do not have sufficient equity at risk for the
entity to finance its activities without additional subordinated financial
support from other parties. FIN No. 46 is effective for all new variable
interest entities created or acquired after January 31, 2003. For variable
interest entities created or acquired prior to February 1, 2003, the provisions
of FIN No. 46 must be applied for the first interim or annual period beginning
after June 15, 2003. The Company is currently analyzing the existing guidance
and reviewing any developments with regard to the proposed FASB Staff Positions
issued on the implementation of FIN No. 46 which are currently subject to public
comment. Therefore, the Company cannot determine whether there will be an impact
on its financial position, results of operations, or cash flows at this time.

                                       3

<PAGE>

In January 2003, the FASB issued EITF Issue No. 02-16, "Accounting by a Customer
(including a Reseller) for Certain Consideration Received from a Vendor." This
EITF addresses the accounting by a vendor for consideration (vendor allowances)
given to a customer, including a reseller of the vendor's products, and the
accounting by a reseller for cash consideration received from a vendor. It is
effective for certain arrangements entered into after November 21, 2002, and for
all new arrangements, including modifications to existing arrangements, entered
into after December 31, 2002. The Company adopted the provisions of the EITF in
the fourth quarter of fiscal 2003 and, as the Company's policies were already
consistent with those of EITF 02-16, the adoption of this standard did not have
a material impact on the Company's financial position, results of operations or
cash flows.

In April 2003, the FASB issued SFAS Statement No. 149, "Amendment of Statement
133 on Derivative Instruments and Hedging Activities," which amends and
clarifies financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other contracts
(collectively referred to as derivatives) and for hedging activities under FASB
Statement No. 133, Accounting for Derivative instruments and Hedging Activities.
This Statement is effective for contracts entered into or modified after June
30, 2003, except for certain hedging relationships designated after June 30,
2003. Most provisions of this Statement should be applied prospectively. The
Company does not expect the adoption of SFAS No. 149 to have a material impact
on its financial statements.

In May 2003, the FASB issued SFAS Statement No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity." This
Statement establishes standards for how an issuer classifies and measures
certain financial instruments with characteristics of both liabilities and
equity. It requires that an issuer classify a financial instrument that is
within its scope as a liability (or an asset in some circumstances). This
statement is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise is effective at the beginning of the first interim
period beginning after June 15, 2003, except for mandatory redeemable financial
instruments of nonpublic entities, if applicable. It is to be implemented by
reporting the cumulative effect of a change in an accounting principle for
financial instruments created before the issuance date of the Statement and
still existing at the beginning of the interim period of adoption. The Company
does not expect the adoption of SFAS No. 150 to have a material impact on its
financial statements.

In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No.'s 141, BUSINESS COMBINATIONS ("FAS 141") and
142, GOODWILL AND OTHER INTANGIBLE ASSETS ("FAS 142"). The provisions of FAS 141
eliminated the pooling-of-interests method of accounting for business
combinations consummated after June 30, 2001. The Company adopted FAS 141 on
July 1, 2001 and it did not have a significant impact on the Company's financial
position or results of operations. Under the provisions of FAS 142, goodwill and
indefinite lived intangible assets are no longer amortized, but are reviewed
annually for impairment. Separable intangible assets that are not deemed to have
an indefinite life will continue to be amortized over their useful lives. The
Company is required to adopt the new accounting rules beginning January 1, 2002.
Management is currently assessing the financial impact FAS 142 will have on the
consolidated financial statements, but it will not be material.

                                       4

<PAGE>

In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 144, ACCOUNTING FOR THE IMPAIRMENT OR
DISPOSAL OF LONG-LIVED ASSETS ("FAS 144"), which addresses financial accounting
and reporting for the impairment or disposal of long-lived assets and supersedes
SFAS No. 121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR
LONG-LIVED ASSETS TO BE DISPOSED OF, and the accounting and reporting provisions
of APB Opinion No. 30, REPORTING THE RESULTS OF OPERATIONS - REPORTING THE
EFFECTS OF DISPOSAL OF A SEGMENT OF A BUSINESS , AND EXTRAORDINARY, UNUSUAL AND
INFREQUENTLY OCCURRING EVENTS AND TRANSACTIONS ("APB 30"). The Company is
required to adopt the new accounting rules beginning January 1, 2002. Management
is currently assessing the financial impact FAS 144 will have on the
consolidated financial statements, but does not believe it will be material.

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

You should read the following discussion and analysis in conjunction with the
financial statements and the notes included elsewhere in this report.

OVERVIEW

Investco was an information technology, data and voice service provider. Its
products and services included computer hardware, computer networks, speech
recognition products and services, and voice-activated products and services.
Investco discontinued its speech recognition products and services business and
plans to pursue business development and acquisitions in the telecommunications
sector.

Investco will require additional funding to pay its current operating expenses.
The Company intends to offer and sell an additional 500,000 shares of
convertible preferred stock by private placement to pay for these expenses.
There can be no assurances, however, that Investco will be able to complete any
offerings.

Investco was incorporated in Florida in March 1990. In April 1999, it completed
a share exchange with Custom Touch Electronics, Inc., a Nevada corporation with
no material operations whose common stock traded on the OTC Bulletin Board.
Pursuant to the share exchange, all of the outstanding shares of Investco
capital stock were exchanged for 105,315 Custom Touch shares. Thereafter, Custom
Touch changed its name to Investco, Inc.

CRITICAL ACCOUNTING POLICIES

A summary of significant accounting policies is included in Note 3 to the
audited financial statements included in our Annual Report on Form 10-KSB for
the year ended December 31, 2001. The Company believes that the application of
these policies on a consistent basis enables Investco to provide useful and
reliable financial information about its operating results and financial
condition.

The preparation of financial statements in conformity with generally accepted
accounting principles requires 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 period.
Actual results may differ from those estimates.

                                       5

<PAGE>

Investco accounts for stock based compensation utilizing Statement of Financial
Accounting Standards No. 123, "Accounting for Stock-Based Compensation" ("SFAS
123"), which encourages, but does not require, companies to record compensation
cost for stock-based employee compensation plans at fair value. The Company has
chosen to account for stock-based compensation using the intrinsic value method
prescribed in Accounting Principles Board Opinion No. 25, "Accounting for Stock
Issued to Employees", and related interpretations. Accordingly, compensation
cost for stock options is measured as the excess, if any, of the estimated fair
market value of our stock at the date of the grant over the amount an employee
must pay to acquire the stock. The company has adopted the "disclosure only"
alternative described in SFAS 123 and SFAS 148 (See New Accounting
Pronouncements), which require pro forma disclosures of net income and earnings
per share as if the fair value method of accounting had been applied.

RESULTS OF CONTINUING OPERATIONS

SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO SIX MONTHS ENDED JUNE 30, 2002

          SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses for the six months ended June 30, 2003 were $157,764,
compared to $2,452,296 for the six months ended June 30, 2002, a decrease of
$2,294,532 or 94%. Of the dollar decrease, $2,100,764 represented decreased
salaries and commission costs primarily due to the reduction of the number of
employees and $149,732 represented decreased consulting services related to
corporate development, advice regarding possible reorganization and financial
planning, introductions to strategic partners, strategic investors, merger and
joint venture opportunities; The remaining decrease was attributable to other
additional selling, general and administrative expenses.

          INTEREST EXPENSE. Interest expense decreased by $2,164 to $0 for the
six months ended June 30, 2003 as compared to interest expense of $2,164 for the
six months ended June 30, 2002.

          NET LOSS. As a result of the foregoing, Investco reported a net loss
from continuing operations of $157,764 for the six months ended June 30, 2003,
compared to a net loss from continuing operations of $2,454,460 for the six
months ended June 30, 2002, a decrease of $2,296,696. As described more fully
below under the caption "Liquidity and Capital Resources. Management is actively
seeking additional funding.

THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THREE MONTHS ENDED JUNE 30, 2002

          SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses for the three months ended June 30, 2002 were
$1,201,166, compared to $45,707 for the three months ended June 30, 2003, a
decrease of $1,155,459 or 96%. Of the dollar decrease, $1,025,710 represented
decreased salaries and commission primarily due to the reduction of the number
of employees and $121,225 represented decreased consulting services related to
corporate development, advice regarding possible reorganization and financial
planning, introductions to strategic partners, strategic investors, merger and
joint venture opportunities. The remaining decrease was attributable to other
additional selling, general and administrative expenses.

                                       6

<PAGE>

          NET LOSS. As a result of the foregoing, Investco reported a net loss
from continuing operations of $45,707 for the three months ended June 30, 2003,
compared to a net loss of $1,201,166 for the three months ended June 30, 2002, a
decrease of $1,155,459. As described more fully below under the caption
"Liquidity and Capital Resources. Management is actively seeking additional
funding

LIQUIDITY AND CAPITAL RESOURCES

        Investco has historically incurred significant losses and has
substantial negative cash flow from operations. Investco has included a footnote
in its annual financial statements for the twelve months ended December 31,
2002, which expresses concern about Investco's ability to continue as a going
concern unless it can secure additional financing. Investco will require
additional funding to cover current operations. . Investco is actively seeking
additional equity financing. The Company intends to offer and sell an additional
500,000 shares of convertible preferred stock by private placement to pay for
these expenses. There can be no assurances that any additional funding will be
available.

         At June 30, 2003, Investco's had no current assets and current
liabilities totaled $2,310,901 resulting in a negative working capital ratio.
Investco had no cash on hand at June 30, 2003 and December 31, 2002. Operating
activities from continuing operations for the six months ended June 30, 2003
used cash of $18,224 primarily due to the net loss of $157,764. Financing
activities provided cash in the amount of $18,224 from related parties.

Investco will require additional funding. Management is actively seeking to
raise additional investment capital and intends to offer and sell an additional
500,000 shares of convertible preferred stock by private placement. Investco has
no material commitments for capital expenditures at the present time. Management
is in negotiations with potential investors. No assurance can be made that such
funding will be available and, if available, that such funding will be available
on terms acceptable to Investco.

FACTORS THAT MAY AFFECT FUTURE RESULTS

     Certain important factors may affect Investco's actual results and could
cause those results to differ materially from any forward-looking statements
made in this Annual Report on Form 10-KSB or that are otherwise made by Investco
or on its behalf. "Forward-looking statements" are not based on historical facts
and are typically phrased using words such as "may," "will," "expect,"
"believe," "anticipate," "intend," "could," "estimate" or "continue" and similar
expressions or variations.

      Differences in actual results may be caused by factors such as those
discussed below, as well as those discussed elsewhere in this report and in
Investco's filings with the SEC.

      Although Investco believes that the expectations reflected in the
forward-looking statements are reasonable, Investco cannot guarantee that they
will be achieved. Except as applicable law requires, Investco does not intend to
update any of the forward-looking statements to conform these statements to
actual results.

     Any or all forward-looking statements in this document and in any other
public statements made may turn out to be wrong. They can be affected by
inaccurate assumptions or by known or unknown risks and uncertainties. In
addition to general economic conditions, many factors mentioned in the
discussion below will be important in determining future results.

                                       7

<PAGE>

    Neither Investco nor its management undertake any obligation to publicly
update any forward-looking statements, whether as a result of new information,
future events or otherwise. The reader is advised, however, to consult any
further disclosures made on related subjects in Investco's future filings with
the SEC.

     For the six months ended June 30, 2003, Investco reported net losses from
continuing operations of $157,764. As of June, 30, 2003, Investco had an
accumulated deficit of $13,884,917, and stockholders` deficit of $2,310,901.
There can be no assurance that Investco will operate profitably in the future
and that Investco will not continue to sustain losses.

     Investco will need additional capital in order to continue its operations.
Investco will require additional funding. Management is actively seeking to
raise additional investment capital and intends to offer and sell an additional
500,000 shares of convertible preferred stock by private placement. .Investco
cannot be certain that any additional financing will be available to them when
needed and if available, whether it will be on favorable terms. In addition, if
Investco raises additional funds through the issuance of equity, the securities
may have rights, preferences or privileges senior to those of the rights of its
current shareholders and its shareholders may experience additional dilution.

ITEM 3.   CONTROLS AND PROCEDURES

The Chief Executive and Principal Accounting Officer is responsible for
establishing and maintaining disclosure controls and procedures for the Company.
Based upon such officers' evaluation of these controls and procedures as of a
date within 45 days of the filing of this Quarterly Report, and subject to the
limitations noted hereinafter, the Certifying Officer has concluded that the
disclosure controls and procedures are effective to ensure that information
required to be disclosed by Investco in this Quarterly Report is accumulated and
communicated to management to allow timely decisions regarding required
disclosures.

The Certifying Officer has also indicated that there were no significant changes
in the internal controls or other factors that could significantly affect such
controls subsequent to the date of his evaluation, and there were no corrective
actions with regard to significant deficiencies and material weaknesses.

Management, including the Certifying Officer, does not expect that the
disclosure controls or internal controls will prevent all error and fraud. A
control system, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the control system
are met. In addition, the design of a control system must reflect the fact that
there are resource constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within a company have been
detected. These inherent limitations include the realities that judgments in
decision-making can be faulty, and that breakdowns can occur because of simple
error or mistake. Additionally, controls can be circumvented by the individual
acts of some persons, by collusion of two or more people or by management
override of the control. The design of any systems of controls also is based in
part upon certain assumptions about the likelihood of future events, and their
can be no assurance that any design will succeed in achieving its stated goals
under all potential future conditions. Over time, control may become inadequate
because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate. Because of these inherent limitations in a
cost-effective control system, misstatements due to error or fraud may occur and
not be detected.

                                       8

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

There are certain legal proceedings and claims against the company in which
management is vigorously defending itself. Management has quantified and accrued
any potential liability.

On August 4, 2003, a Magistrate Judge for the U. S. District Court for the
Southern District of Florida at case number 02-80466-CIV-HURLEY/LYNCH entered a
report to the Court to recommend that the Company be assessed civil penalties
for the issuance of false press releases on its behalf by Joseph L. Lents, the
former Chief Executive Officer of the Company. Until August 25, 2003, the same
attorney who represented Mr. Lents in the case also represented the Company. On
October 1, 2003, the Company retained independent counsel to enter his
appearance in the case to defend the Company from the assessment of civil
penalties.

On August 20, 2003, The Securities and Exchange Commission (the "SEC") at
Administrative Proceedings File No. 3-11228 Instituted a Public Proceeding and
Notice of Hearing pursuant to Section 12(j) of the Securities and Exchange Act
of 1934 for the failure of the Company to file: A. Annual reports on Form 10-K
for the years ended December 31, 2001 and December 31, 2002; B. Quarterly
reports on Form 10-Q for the quarters ended March 31, 2002; June 30, 2002;
September 30, 2002; and March 31, 2003; and, C. On April 1, 2003 the Nevada
Secretary of State revoked the Company's business charter for failure to file a
list of officers. The SEC will afford the Company the opportunity to answer and
attend a hearing to determine if the registration of all securities of the
Company should be suspended or revoked. The Company has retained counsel to
represent it in the proceedings, has filed its answer to admit the above
deficiencies, and to explain that the Company intends to file its periodic
reports and otherwise bring the Company in full compliance with all SEC and
State of Nevada requirements.

     On November 24, 2003, Robert G Mahony, Administrative Law Judge ordered
that the registration of all securities of Investco, Inc. is revoked. This
Initial Decision shall become effective in accordance with and subject to the
provisions of Rule 360 of the Commission's Rules of Practice, 17 C.F.R. ss.
201.360. Pursuant to that rule, a petition for review of this Initial Decision
may be filed within twenty-one days after service of the Initial Decision. It
shall become the final decision of the Commission as to each party who has not
filed a petition for review pursuant to 17 C.F.R. ss. 201.360(d)(1) within
twenty-one days after service of the Initial Decision upon it, unless the
Commission, pursuant to Rule 360(b)(1) of the Commission's Rules of Practice, 17
C.F.R. ss. 201.360(b)(1), determines on its own initiative to review this
Initial Decision as to any party.

ITEM 2.   CHANGES IN SECURITIES

         None


ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

            None.

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

            None.

                                       9

<PAGE>

ITEM 5.   OTHER INFORMATION

            None.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

         (a) Exhibits required by item 601 of Regulation S-B

         31.1    Certification by Chief Executive and Financial Officer Pursuant
                 to Section 302
         32.1    Certification by Chief Executive and financial Officer Pursuant
                 to Section 906

          (b) Reports on Form 8-K:

          Investco did not file a current report on Form 8-K.













                                       10

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                                   SIGNATURES

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

                                  INVESTCO,INC.

Dated:   April 20, 2004               By: /s/ARNOLD SALINAS
                                        -------------------------------------
                                        Chief Executive and Financial Officer