SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
                                   (Mark One)

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

                  For the quarterly period ended June 30, 2000

                                       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 Number 0-26676

                     MULTIMEDIA CONCEPTS INTERNATIONAL, INC.
                     ---------------------------------------
        (Exact Name of Small Business Issuer as Specified in its Charter)

<TABLE>
<CAPTION>
<S>                                                                             <C>
                       Delaware                                             13-3835325
--------------------------------------------                  --------------------------------------------
         (State or Other Jurisdiction of                      (I.R.S. Employer Identification No.)
          Incorporation or Organization)
</TABLE>

               1385 Broadway, Suite 814, New York, New York 10018
                    (Address of Principal Executive Offices)

                                 (212) 391-1111
              (Registrant's Telephone Number, Including Area Code)

                                       N/A
               --------------------------------------------------
              (Former Name, Former Address, and Former 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  Securities  Exchange  Act of 1934 during the past 12
months (or for such  shorter  period that  registrant  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 CORPORATE ISSUERS

     State the number of shares of each of the issuer's classes of common equity
outstanding as of the latest  practicable date: Common Stock,  $0.001 per share:
3,005,000 shares outstanding as of July 31, 2000.
<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

<TABLE>
<CAPTION>


                                                TABLE OF CONTENTS

       PART I.                   FINANCIAL INFORMATION                                                              Page Number

       Item 1.          FINANCIAL STATEMENTS
<S>                               <C> <C>                                                                               <C>
                        Consolidated Balance Sheets as of June 30, 2000 (unaudited)
                        and March 31, 2000                                                                              3-4

                        Consolidated Statements of Operations (unaudited) for the
                        Three Months Ending June 30, 2000 and 1999                                                        5

                        Consolidated  Statements of Cash Flows  (unaudited)  for
                        the Three  Months  Ended  June 30, 6-7 2000 and June 30,
                        1999                                                                                            6-7

                        Notes to Financial Statements (unaudited)                                                      8-11

       Item 2.          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                        AND RESULTS OF  OPERATIONS                                                                    12-13

</TABLE>
                                        1

<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                     As of June 30, 2000 and March 31, 2000


<TABLE>
<CAPTION>

                                                                      June 30,    March 31,
                                                                       2000         2000
                                                                                 (Restated)
                                                                                  (Note 5)

                                     ASSETS

   CURRENT ASSETS:
<S>                                                               <C>            <C>
  Cash and cash equivalents ...................................   $   351,568    $ 1,109,166

  Accounts receivable .........................................       243,175        556,591

  Advances to supplier ........................................       575,661        737,145

  Prepaid expenses and other current assets
                                                                        5,689          5,689
  Investment in affiliates ....................................       570,552        570,552
                                                                  -----------    -----------
          Total current assets ................................     1,746,645      2,979,143
                                                                  -----------    -----------

FURNITURE, FIXTURES AND EQUIPMENT
  Furniture, fixtures and equipment ...........................        72,789         72,789
  Accumulated depreciation on furniture, fixtures and equipment
                                                                      (69,096)       (68,861)
                                                                  -----------    -----------
  Furniture, fixtures and equipment - Net
                                                                        3,693          3,928
                                                                  -----------    -----------

OTHER ASSETS:
Due from affiliates ...........................................     1,014,818      1,014,818

Advances to equity affiliate ..................................       140,000        140,000

Deposits and other assets .....................................        28,961         28,961
                                                                  -----------    -----------
          Total other assets ..................................     1,183,779      1,183,779
                                                                  -----------    -----------


          Total assets ........................................   $ 2,934,117    $ 4,166,850
                                                                  ===========    ===========

</TABLE>

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

                                        2
<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES


                           CONSOLIDATED BALANCE SHEETS
                     As of June 30, 2000 and March 31, 2000
<TABLE>
<CAPTION>



                                                                                      June 30,        March 31,
                                                                                        2000            2000
                                                                                                     (Restated)
                                                                                                       (Note 5)

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
<S>                                                                                <C>           <C>
Accounts payable                                                                   $    93,664   $    998,469

Accrued expenses and other current liabilities
                                                                                       128,991        128,754
Due to affiliates
                                                                                       129,817        481,239
                                                                                   -----------    -----------

     Total current liabilities
                                                                                       352,472      1,608,462
                                                                                   -----------    -----------

          Total liabilities
                                                                                       352,472      1,608,462
                                                                                   -----------    -----------

MINORITY INTERST IN SUBSIDIARIES (Note 3)
                                                                                      (157,197)      (151,266)
                                                                                   -----------    -----------

STOCKHOLDERS' EQUITY:
Common stock, $.001 par value;  10,000,000 shares  authorized;  3,005,000 shares
   issued and outstanding at June 30, 2000 and March 31, 1999 respectively
                                                                                         3,005          3,005
  Additional paid-in capital
                                                                                     5,852,005      5,852,005
  Retained earnings (Deficit)
                                                                                    (3,116,168)    (3,145,356)
                                                                                   -----------    -----------

          Total stockholders' equity
                                                                                     2,738,842      2,709,654
                                                                                   -----------    -----------

          Total liabilities and stockholders' equity ...........................   $ 2,934,117    $ 4,166,850
                                                                                   ===========    ===========
</TABLE>






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


                                        3

<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                            Three Months Ended
                                                                           June 30,     June 30,
                                                                             2000         1999
                                                                                      (Restated)
                                                                                        (Note 5)

<S>                                                                      <C>          <C>
Net sales ............................................................   $1,405,751   $  989,235
                                                                         ----------   ----------
Cost of sales
                                                                          1,190,833      690,795
                                                                         ----------   ----------
Gross profit
                                                                            214,918      298,440
                                                                         ----------   ----------
Operating expenses:
     Operating expenses
                                                                            193,257      171,639
     Depreciation and amortization                                              235          235
                                                                         ----------   ----------
               Total operating expenses
                                                                            193,492      171,874
                                                                         ----------   ----------
               Operating  income (loss)
                                                                             21,426      126,566
                                                                         ----------   ----------
               Other income:
                          Interest and other income
                                                                              1,831       20,613
                                                                         ----------   ----------
Income before Minority interests
                                                                             23,257      147,179
                                                                         ----------   ----------
   Minority interest in net (loss) of consolidated subsidiary (Note 3)
                                                                              5,931        8,031
                                                                         ----------   ----------

Net income ...........................................................     $ 29,188   $  155,210
                                                                         ==========   ==========

Calculation of basic and diluted common share and share equivalents:
Basic and diluted income per common share and share equivalents
                                                                         $      .01   $      .05
                                                                         ==========   ==========

Weighted average number of common shares outstanding .................    3,005,000    3,005,000
                                                                         ==========   ==========

</TABLE>


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


                                        4


<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)
                           Increase (Decrease) in Cash

<TABLE>
<CAPTION>


                                                                            Three Months Ended
                                                                           June 30,   June 30,
                                                                             2000       1999
                                                                                    (Restated)
                                                                                      (Note 5)

   CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                        <C>          <C>
Net income (loss) .....................................................    $ 29,188    155,210
                                                                          ---------    -------

Adjustments to reconcile net loss to cash (used) provided for operating
   activities:
   Depreciation and amortization
                                                                                235        235
   Minority interests in net losses of subsidiaries
                                                                             (5,931)    (8,031)
Changes in assets and liabilities:
   (Increase) decrease in accounts receivable
                                                                            313,416    452,727
   (Increase) decrease in advances to supplier
                                                                            161,484    (77,800)
   (Increase) decrease in Merchandise inventories
                                                                               --      (21,000)
   (Increase) decrease in prepaid expenses and other current assets
                                                                               --         (101)
   (Increase) decrease in deposits and other assets
                                                                               --       (6,000)
   Increase (Decrease) in accounts payable
                                                                           (904,805)    55,306
   Increase (Decrease) in accrued expenses and liabilities
                                                                                237         13
                                                                          ---------    -------

          Total adjustments
                                                                           (435,364)   395,349
                                                                          ---------    -------

          Net cash provided by operating activities
                                                                           (406,176)   550,559
                                                                          ---------    -------

CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in property and equipment                                              --         --
                                                                          ---------    -------
Investment in affiliates                                                        --         --
                                                                          ---------    -------


          Net cash provided by (used for) investing activities
                                                                          $     --     $   --
                                                                          ---------    -------
</TABLE>






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



                                        5
<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES



                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)
                           Increase (Decrease) in Cash

<TABLE>
<CAPTION>


                                                           Three Months Ended
                                                          June 30,     June 30,
                                                           2000         1999
                                                                     (Restated)
                                                                      (Note 5)


CASH FLOWS FROM FINANCING ACTIVITIES:
<S>                                                   <C>            <C>
  Loans and advances-affiliates ...................   $  (351,422)   $  (153,000)
                                                      -----------    -----------

          Net cash provided by financing activities
                                                         (351,422)      (153,000)
                                                      -----------    -----------

NET INCREASE (DECREASE) IN CASH
                                                         (757,598)       397,559
                                                      -----------    -----------
Cash, beginning of period .........................     1,109,166        984,999
                                                      -----------    -----------


Cash, end of period ...............................   $   351,568    $ 1,382,558
                                                      ===========    ===========


Supplemental disclosure of cash flow information:
Interest paid                                         $        --    $        --
                                                      ===========    ===========
Taxes paid                                            $        --    $        --
                                                      ===========    ===========




</TABLE>



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


                                        6

<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2000
                                   (Unaudited)

NOTE 1 -          BASIS OF PRESENTATION

                  The accompanying  unaudited  consolidated financial statements
                  have been  prepared  in  accordance  with  generally  accepted
                  accounting  principles for interim  financial  information and
                  the  instruction  to  Form  10-QSB.  Accordingly,  they do not
                  include  all  the  information   and  footnotes   required  by
                  generally  accepted  accounting  principles  for more complete
                  financial  statements.  In  the  opinion  of  management,  the
                  interim   financial   statements   include   all   adjustments
                  considered  necessary for a fair presentation of the Company's
                  financial  position and the results of its  operations for the
                  three  months  ended  June 30,  2000  and are not  necessarily
                  indicative  of the results to be expected for the fiscal year.
                  For further information,  refer to the Company's Annual report
                  on Form 10-KSB for the twelve  months ended March 31, 2000, as
                  filed with the Securities and Exchange Commission.

                  In December  1997, the Company's  Board of Directors  voted to
                  change the end of the  Company's  fiscal  year from  September
                  30th to March 31st.

NOTE 2 -          DESCRIPTION OF COMPANY:

                  Multimedia Concepts  International,  Inc. (the "Company") is a
                  Delaware  corporation  which was  organized in June 1994 under
                  the name U.S. Food  Corporation.  The Company changed its name
                  to American Eagle Holdings  Corporation in April 1995 and then
                  to its present  name in June 1995.  The Company was  initially
                  formed as a holding  company  for the  purpose  of  forming an
                  integrated  clothing design,  manufacturing,  and distribution
                  operation.  In June  1994,  the  Company  acquired  55% of the
                  outstanding   shares  of  common   stock  of  American   Eagle
                  Industries  Corp.,  which  acquired  100%  of the  outstanding
                  shares of Match II, Inc. The Company also  acquired 34% of the
                  issued and outstanding  common stock of Multi Media Publishing
                  Corp. in June 1995.

                  In December  1996,  the Company held a special  meeting of its
                  shareholders  who authorized the Company to sell or dispose of
                  its  shares  in  American  Eagle  Industries  Corp.  (and  its
                  subsidiary, Match II, Inc.) or effect the dissolution thereof.
                  These subsidiaries had ceased operations in September 1996. In
                  January 1997, in accordance with the vote of its shareholders,
                  the   Company    terminated   its   financing   and   business
                  relationships with these subsidiaries.



                                        7
<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2000
                                   (Unaudited)

NOTE 2 -          DESCRIPTION OF COMPANY (continued):

                  In December 1996, the shareholders also authorized the Company
                  to  dispose  of  its  34%   interest   in  an   unconsolidated
                  subsidiary,   Multi  Media  Publishing  Corp.,  which  had  no
                  revenues or  operations.  In January 1997, in accordance  with
                  the  vote of its  shareholders,  the  Company  terminated  all
                  business  relationships with this entity;  however, it intends
                  to seek the return of certain funds it had advanced.

                  In  January  1997,  the  Company  formed a new  wholly-owned
                  subsidiary,  U.S. Apparel Corp. ("U.S.  Apparel"),  which is
                  engaged in the design and  manufacture of a line of T-shirts
                  and other tops,  predominately  for men. U.S.  Apparel began
                  operations in January 1997.

                  On January 2, 1998, the Company  acquired  3,571,429 shares of
                  the outstanding common stock of United Textiles and Toys Corp.
                  ("United   Textiles"),   a  company  of  which  the  Company's
                  President is also President,  Chief Executive  Officer,  and a
                  Director. The issuance of these shares at a price of $0.28 per
                  share ($0.01 above the closing price on December 31, 1997) was
                  made in  conjunction  with a conversion  into equity of United
                  Textiles'  $1,000,000 debt owed to the Company for a loan made
                  by the Company.  As a result of this transaction,  the Company
                  owns 78.5% of the outstanding shares of common stock of United
                  Textiles,  effectively  making United Textiles a subsidiary of
                  the Company.

                  United   Textiles  was  a  company   engaged  in  the  design,
                  manufacturing,  and  marketing  of a variety  of lower  priced
                  women's dresses,  gowns,  and separates for special  occasions
                  and formal  events.  In March 1998,  United  Textiles,  having
                  sustained    continuous   losses,    discontinued    operating
                  activities.

NOTE 3 -          MINORITY INTEREST:

                  The  Company  owns  a  majority  interest  (78.5%)  in  United
                  Textiles.  The  minority  interest  liability  represents  the
                  minority  shareholders'  portion  (21.5%) of United  Textiles'
                  equity.

NOTE 4 -          INVESTMENT BY U.S. STORES CORP.:

                  On  January  20,  1998,  U.S.  Stores Corp. ("U.S.  Stores")
                  acquired  1,465,000  shares of the  Company's  common stock.
                  U.S. Stores was incorporated on November 10,

                                        8
<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2000
                                   (Unaudited)

NOTE 4 -          INVESTMENT BY U.S. STORES CORP. (continued):

                  1997.  The Company's  President is also President and a
                  Director of U.S. Stores.

                  After this  transaction,  U.S. Stores held an aggregate
                  of 1,868,000 shares of the Company's common stock, or 63% of
                  the  outstanding  shares,  effectively  making the Company a
                  subsidiary of U.S. Stores.

                  On February 28, 1998, American Telecom Corporation  ("American
                  Telecom")  acquired 100% of the  outstanding  common shares of
                  U.S. Stores. American Telecom was incorporated on November 10,
                  1997. The Company's President is also President and a Director
                  of American Telecom. After this transaction,  American Telecom
                  effectively obtained beneficial control of the Company and its
                  subsidiaries.

                  In April 1998,  American  Telecom,  in a transaction  in which
                  shares were exchanged, exchanged all of its outstanding common
                  shares with American  Telecom,  PLC, a publicly traded company
                  in Great Britain.  After this  transaction,  American  Telecom
                  effectively  became a  subsidiary  of American  Telecom,  PLC.
                  Additionally,  as part of this transaction,  American Telecom,
                  PLC acquired  100% of the  outstanding  common  shares of U.S.
                  Stores,  thereby  effectively  making  U.S.  Stores  a  direct
                  subsidiary of American Telecom, PLC.

NOTE 5 -          RESTATEMENT OF AMOUNTS PREVIOUSLY REPORTED

                  The financial  statements  for the three months ended June 30,
                  1999  contain  certain   restatements  of  amounts  previously
                  reported.

                  These  restatements  were the  result of the  decision  by the
                  Company's subsidiary,  United Textiles and Toys Corp. ("UTT"),
                  to  deconsolidate  the  accounts  of Play Co.  as of March 31,
                  2000. At March 31, 1999, UTT's percentage of ownership in Play
                  Co. was 45.2%.  Although  UTT at that date owned less than 51%
                  of Play Co.'s  outstanding  common stock,  UTT still exercised
                  prerogative  of  control  over Play Co. and  consolidated  the
                  accounts of Play Co. into UTT.

                  At  March  31,   2000,   UTT's   percentage  of ownership in
                  Play Co. was reduced to 21.69%. Accordingly,  UTT elected to
                  deconsolidate  the accounts of Play Co., and account for its
                  investment in Play Co. on the equity  method of  accounting.
                  Under the equity method, the original investment is recorded
                  at cost,  and is  adjusted  periodically  to  recognize  the
                  investor's share of the earnings or losses of

                                       9
<PAGE>
            MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES

                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2000
                                   (Unaudited)

NOTE 5 -          RESTATEMENT OF AMOUNTS PREVIOUSLY REPORTED (continued)

                  the investee subsequent to the date of acquisition. Under this
                  method  of  accounting,  the  investment  generally  cannot be
                  reduced  below zero,  when the investee has  operating  losses
                  that  exceed  the  investment,  at which  point the use of the
                  equity method is suspended. UTT will resume accounting for the
                  investment  in Play Co. under the equity  method when Play Co.
                  subsequently reports net income and the net income exceeds the
                  Company's  accumulated  share of Play  Co.'s  net  losses  not
                  recognized  during the period of  discontinuance of the equity
                  method.

                  In 1997,  the Company  acquired  803,070  shares of Play Co.'s
                  Series  E  convertible  preferred  stock.  These  shares  were
                  acquired   from  an   affiliated   company  as  repayment  for
                  outstanding loans made to that company by Multimedia. In April
                  2000, the Company  converted these preferred  shares into Play
                  Co.  common  stock  at the  conversion  rate of one  share  of
                  preferred for six shares of common stock.  As a result of this
                  conversion,  the Company at April 2000 owned 4,818,420  shares
                  of Play Co.'s common stock. At June 30, 2000, the Company held
                  a 10.3%  minority  interest in Play Co. As this  investment in
                  Play Co.  amounts to less than 20%, the Company has  accounted
                  for this investment on the "cost basis" method.

NOTE 6-  Year 2000

                  The Company in 1999 upgraded its computer system by installing
                  a year 2000 upgrade to its software.

                  Although the Company has not experienced any problems  related
                  to the year 2000  issues,  the  possibility  still exists that
                  such problems might arise during the calendar  year.  However,
                  the  effect,  if any, of year 2000  problems on the  Company's
                  results of operations  cannot be estimated  with any degree of
                  certainty  if the  Company  or its  affiliated  companies,  or
                  service providers are not fully compliant.










                                       10
<PAGE>

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

Results of Operations

         Statements  contained in this report which are not historical facts may
be considered forward looking information with respect to plans, projections, or
future  performance  of the  Company as  defined  under the  Private  Securities
Litigation Act of 1995.  These forward  looking  statements are subject to risks
and  uncertainties  which could cause actual results to differ  materially  from
those projected.

     Three  months  ended June 30, 2000  compared to the three months ended June
30, 1999:

         Consolidated  sales  for the  three  months  ended  June 30,  2000 were
$1,405,751.  The  consolidated  sales for the three  months  ended June 30, 1999
amounted to $989,255. All sales were from U.S. Apparel.

         Consolidated cost of sales for the three months ended June 30, 2000 was
$1,190,833,  or 85% of sales as  compared  to  $690,795  or 70% of sales for the
three months ended June 30, 1999.

         Consolidated operating expenses were $193,257, or 14% of sales, for the
three months ended June 30, 2000, compared to $171,639,  or 17% of sales for the
three months ended June 30, 1999.

         Consolidated  depreciation and amortization expense not included in the
consolidated  operating  expenses  for the three  months ended June 30, 2000 and
June 30, 1999 was $235.

         For the three months ended June 30, 2000,  subsequent to the adjustment
for the  minority  interest  in the net  income  of  subsidiaries,  the  Company
reported  consolidated  net  income of  $29,188,  or $.01 per common  share,  as
compared to $155,210 or $.05 per common  share for the three  months  ended June
30, 1999.

Liquidity and Capital Resources

         At June 30, 2000,  the Company  reported cash and cash  equivalents  of
$351,568, working capital of $1,394,173, and stockholders' equity of $2,738,842.

         At June 30 2000,  the Company  reported  cash and cash  equivalents  of
$1,109,166,   working  capital  of  $1,370,681,   and  stockholders'  equity  of
$2,709,654.



                                       11
<PAGE>
ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS (continued)

Liquidity and Capital Resources (continued)

         The Company has generated  operating  losses for the past several years
and has historically  financed those losses and its working capital requirements
through  loans.  There  can  be no  assurance  that  the  Company  or any of its
subsidiaries  will be able to generate  sufficient  revenues or have  sufficient
controls over expenses and other charges to achieve profitability.

         During the three months ended June 30, 2000,  operating activities used
funds in the  amount of  $406,176.  The  Company's  consolidated  net income was
$29,188,  after  adjustment  for the  minority  interest  in the net  income  of
subsidiaries.

         The Company used $351,422 in financing activities.

         As a result of these operating,  investing,  and financing  activities,
the Company reported a consolidated decrease in cash of $757,958.

Year 2000

         The Company in 1999  upgraded its computer  system by installing a year
2000 upgrade to its software.

         Although the Company has not  experienced  any problems  related to the
year 2000 issues,  the  possibility  still exists that such problems might arise
during the calendar year. However,  the effect, if any, of year 2000 problems on
the  Company's  results of  operations  cannot be  estimated  with any degree of
certainty if the Company or its affiliated  companies,  or service providers are
not fully compliant

Trends Affecting Liquidity, Capital Resources and Operations

         U.S. Apparel's sales are generated from short-term purchase orders from
customers  who place  orders  on an  as-needed  basis.  U.S.  Apparel  typically
manufactures  its products  upon receipt of orders from  customers  and delivers
finished  goods  within four weeks of receipt of an order.  In  anticipation  of
reorders from customers, U.S. Apparel generally manufactures 10% more goods than
are ordered by such customers.

         U.S. Apparel has been able to purchase raw materials from a variety  of
suppliers.

Inflation and Seasonality

         The impact of inflation on the Company's  results of operations has not
been  significant.  Each  subsidiary  attempts  to pass on  increased  costs  by
increasing product prices over time. U.S. Apparel's operations are generally not
seasonal and are generally spread throughout the year.

                                       12

<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, on this 8th day of August 2000.


                                    MULTIMEDIA CONCEPTS INTERNATIONAL, INC.



                                    By:     /s/  Ilan Arbel
                                            ----------------------------
                                            Ilan Arbel
                                            President


                                    By:     /s/ Allean Goode
                                            ------------------
                                            Allean Goode
                                            Treasurer