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

                                   FORM 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
MARCH 31, 2001

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: 000-26668

                    DIAMOND HITTS PRODUCTION, INC.
          (Exact name of Registrant as specified in its charter)


           Florida                                  65-0036344
(State or jurisdiction of incorporation          I.R.S. Employer
           or organization)                      Identification No.)

92 Corporate Park, Suite C-802, Irvine, California         92606
   (Address of principal executive offices)           (Zip Code)

           Registrant's telephone number:  (800) 660-4292

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:
Common stock, $0.001 par value

Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) been subject to such filing
requirements for the past 90 days.  Yes   X    No.

As of March 31, 2001, the Registrant had 183,700,172 shares
of common stock issued and outstanding.

                             TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION                                   PAGE

ITEM 1.  FINANCIAL STATEMENTS

         BALANCE SHEETS AS OF
         MARCH 31, 2001 AND DECEMBER 31, 2000                       3

         STATEMENTS OF OPERATIONS
         FOR THE THREE MONTHS ENDED
         MARCH 31, 2001 AND MARCH 31, 2000                          4

         CONSOLIDATED STATEMENTS OF CASH FLOWS
         FOR THE THREE MONTHS ENDED
         MARCH 31, 2001 AND MARCH 31, 2000                          5

         NOTES TO FINANCIAL STATEMENTS                              6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS              8

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
         ABOUT MARKET RISK                                         11

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS                                         11

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS                 14

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                           14

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS       14

ITEM 5.  OTHER INFORMATION                                         15

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                          15

SIGNATURE                                                          15

PART I.

ITEM 1.  FINANCAL STATEMENTS.

                    DIAMOND HITTS PRODUCTION, INC.
                   (formerly Hitsgalore.com, Inc.)
                           BALANCE SHEETS
              MARCH 31, 2001 AND DECEMBER 31, 2000

                                                     2001           2000
                                                  (UNAUDITED)

                                ASSETS

Cash                                            $        507   $        25
Accounts receivable                                   20,000         5,000
Property and equipment to be disposed of                   -        20,000
Total assets                                    $     20,507   $    25,025

               LIABILITIES AND STOCKHOLDERS' DEFICIT

Short-term borrowings from related parties,
less unamortized debt discount of $84,661
in 2001 and $218,485 in 2000                    $    720,641   $   586,817
Due to officers and stockholders                      39,382        31,077
Accounts payable and accrued expenses                755,443       662,474
Accrued compensation and employee benefits            42,760       152,933
Merger related liabilities                         2,736,411     2,681,594

Total liabilities                                  4,294,637     4,114,895

Commitments and contingencies

Stockholders' deficit:
Class B convertible preferred stock, stated
value and liquidation preference - $1.00 per
share; authorized 10,000,000 shares, issued
and outstanding 100,000 shares                        54,764        54,764

Common stock, $0.001 par value; authorized
550,000,000 shares; issued and outstanding
183,700,172 shares in 2001 and 111,883,095
shares in 2000                                       183,700       111,883
Additional paid-in capital                         8,364,642     5,826,171
Accumulated deficit                              (12,877,236)  (10,082,688)
Total stockholders' deficit                       (4,274,130)   (4,089,870)

Total liabilities and stockholders' deficit   $       20,507   $    25,025

                      See Notes to Financial Statements

                       DIAMOND HITTS PRODUCTION, INC.
                      (formerly Hitsgalore.com, Inc.)
                         STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                (Unaudited)

                                                       2001          2000

Net Revenues                                    $     5,076     $  13,042
Operating costs and expenses:
Selling, general and
administrative expenses                           2,594,677       569,667
Depreciation and amortization                             -        70,403
Total operating costs and expenses                2,594,677       640,070
Loss from operations                             (2,589,601)     (627,028)
Interest expense                                   (204,947)            -
Net loss                                        $(2,794,548)    $(627,028)

Basic and diluted loss per share                $     (0.02)    $   (0.01)

Weighted average number of shares
outstanding:
Basic                                           132,058,464    48,264,768
Diluted                                         132,058,464    48,264,768

                      See Notes to Financial Statements

                       DIAMOND HITTS PRODUCTION, INC.
                      (formerly Hitsgalore.com, Inc.)
            STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED
                           MARCH 31, 2001 AND 2000
                                 (Unaudited)

                                                2001           2000

Net cash used in operating activities     $   (12,823)   $ (338,248)

Cash flows from investing activities:
Capital expenditures                                -       (49,751)
Net cash used in investing activities               -       (49,751)

Cash flows from financing activities:
Proceeds from issuance of stock and
exercise of options and warrants                5,000        61,499
Proceeds from short-term borrowings                 -       298,669
Borrowings from and (payments to)
stockholders and officers, net                  8,305        41,705

Net cash provided by financing
activities                                     13,305       401,873
Net increase in cash                              482        13,874
Cash at beginning of period                        25         2,223
Cash at end of period                     $       507    $   16,097

Supplemental disclosure of Cash Flow Information and Non-Cash Investing and
Financing Activities.

Accounts recievable from sale of assets   $    20,000    $        -
Issuance of common stock for services       2,572,953             -
Issuance of common stock in exchange for
debt                                            3,008             -
Issuance of stock for offering costs                -        25,000

                    See Notes to Financial Statements.

                     DIAMOND HITTS PRODUCTION, INC.
                    (formerly Hitsgalore.com, Inc.)
                     NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)

NOTE 1 - THE REGISTRANT AND BUSINESS

Effective as of February 16, 2001, the Registrant, through its
new management, determined that the Registrant's "dot com" assets
were not cost effective and sold a majority of such assets for
$20,000. Effective as of March 29, 2001, the Registrant changed
its name from Hitsgalore.com, Inc. to Diamond Hitts Production,
Inc.  The Registrant is a Florida corporation.

The Registrant is in the process of reinventing its business from
a pure "dot com" Registrant to a multifaceted
entertainment/Hollywood-Active production Registrant.  The
Registrant's current business is to seek and acquire profitable
entertainment assets and liquidate, modify, extend or otherwise
satisfy the indebtedness of the Registrant.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements have been prepared in
accordance with generally accepted accounting principals
consistent in all material respects with those applied in the
Company's Annual Report on Form 10-K for the year ended December
31, 2000. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting
principles for complete financial statements. The interim
financial information is unaudited, but reflects all normal
adjustments which are, in the opinion of management, necessary to
provide a fair statement of results for the interim periods presented.

Certain amounts in the 2000 financial statements have been
reclassified to conform to the 2001 presentation.

Earnings Per Share.

The weighted average number of shares outstanding during the
three months ended March 31, 2001 and 2000 was approximately
132,058,464 shares and 48,264,768 shares, respectively. For each
of the periods presented, the inclusion of potentially dilutive
securities in the calculation of earnings per share would have
been anti-dilutive, thus both basic and diluted earning per share
are the same.

NOTE 3 - GOING CONCERN

The accompanying financial statements have been prepared on a
going concern basis, which contemplates the realization of assets
and liquidation of liabilities in the ordinary course of
business.  The Registrant incurred operating losses of $2,794,548
in the first quarter of 2001 and $4,826,641 and $2,624,461,
respectively, in the previous two fiscal years. As of March 31,
2001, the Registrant had a working capital deficiency of
approximately $4.3 million and is subject to numerous judgments
awarded by courts of competent jurisdiction.  The amounts of
outstanding judgments awarded against the Registrant are included
as liabilities in the accompanying balance sheet, however, the
Registrant is currently unable to satisfy these judgments or
enter into any settlement agreements due to its lack of financial
resources.  In the absence of a sufficient amount of cash flows
from future operations or from financing transactions, the
Registrant would be required to seek other alternatives,
including sale, merger or discontinuance of operations.  The
financial statements do not include any adjustments that might
result from the outcome of these uncertainties.

NOTE 4 - SHORT-TERM BORROWINGS FROM RELATED PARTIES

As of March 31, 2001, short-term borrowings from related parties
consist of $701,500 payable under a Consolidated Promissory Note
Agreement and $103,802 payable under a convertible promissory
note agreement, dated as of September 20, 2000.

As of March 31, 2001, the Company is in violation of the payment
terms and\or conversion privliges contained in these debt
agreements. The principal amounts of borrowings that have not
been paid and\or converted into shares of the Registrants common
stock according to the terms of the related agreements was
approximately $500,000. The number of shares of the Registrant's
common stock that such debt would have been converted into as of
March 31, 2001 was approximately thirty (30) million shares.

NOTE 5 - STOCKHOLDERS' EQUITY

During the three months ended March 31, 2001, the Registrant
issued 5,250,731 shares pursuant to its Year 2000 Stock Award
Plan and 47,216,346 shares pursuant to its Retainer Stock Plan
for Non-Employee Directors and Consultants and recorded total
stock compensation expense of approximately $1.9 million. In
addition, the Registrant made the following sales of unregistered
securities during the first quarter of 2001:

(a)  The Registrant issued 250,000 shares of its common stock in a
private placement transaction and received net proceeds of $5,000.

(b)  The Registrant issued 15,000,000 shares of its common
stock to Dorian Reed, the Registrant's former Chairman
of the Board, and recorded stock compensation expense of $451,200.

(c)  The Registrant issued 4,000,000 shares of its common
stock pursuant to an Internet traffic agreement and
recorded a charge to income of $240,000.

(d)  The Registrant issued 100,000 shares of its common
stock in payment of a $2,000 debt and recorded
interest expense of $1,008.

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

The following discussion should be read in conjunction with
the financial statements of the Registrant and notes thereto
contained elsewhere in this report.

Results of Operations.

(a)  Net Revenues.

Net revenues for the three months ended March 31, 2001 and
2000 were $5,076 and $13,042, respectively. The lack of revenues
for the first quarter of 2001 reflects the Registrant's inability
to develop a market for its "bid by impression" and "media rich
data description" products, an overall decline in "dot com"
industry conditions and the sale of the Registrant's "dot com"
assets in February 2001. The Registrant's inability to develop a
market for its "bid by impression" and "media rich data
description" products was principally due to the Registrant's
lack of financial resources.

Net revenues in the first quarter of 2000 reflect the
adverse effects of the Registrant's agreement with the Life
Foundation Trust.

(b)  Selling, General and Administrative Expenses.

Selling, general and administrative expenses for the three
months ended March 31, 2001 and 2000 were $2,594,677 and
$569,667, respectively. The increase from period to period
principally reflects the effect of charges to income from the
issuance of shares of the Registrant's common stock for services
rendered and to be rendered to the Registrant by non-officer
directors, employees and consultants in furtherance of the
Registrant's transformation from a "dot com" to a "multi-faceted
entertainment" company. During the first quarter of 2001, the
Registrant issued an aggregate of approximately 70.5 million
shares of its common stock to its officers, employees, non-
employee directors, consultants and other service providers and
recorded total charges to income of approximately $2.6 million.
These charges were offset by reductions in personnel and other costs.

(c)  Depreciation and Amortization.

As of December 31, 2000, the Registrant classified all of
its "dot com" assets, consisting principally of property and
equipment and acquired intangible assets as "assets to be
disposed of." These assets were disposed of in February 2001 for
a total purchase price of $20,000. Accordingly, no depreciation
and amortization is reflected in the accompanying financial
statements for the three months ended March 31, 2001. The
carrying value of these assets as of December 31, 2000 was
$20,000.  No gain or loss was recognized upon disposition of
these assets.

Depreciation and amortization expense was $70,403 for the
first quarter of 2000. Capital expenditures were approximately
$107,187 in 2000, $444,910 in 1999 and $31,663 during the period
from inception to December 31, 1998.

(d)  Interest Expense.

Interest expense for the three months ended March 31, 2001
principally consists of interest on merger-related liabilities
and short-term borrowings. Interest on merger-related liabilities
was approximately $54,816 and interest on short-term borrowings,
consisting principally of amortization of debt discounts, was
approximately $147,662.

As of March 31, 2000, the Registrant had no significant interest
bearing liabilities.

Liquidity and Capital Resources.

Hitsgalore.com, a closely held Nevada corporation ("Old
Hitsgalore.com"), was organized in July 1998 to develop a porn
free, or adult content free, business to business Internet search
engine.  On March 19,1999, Old Hitsgalore merged, in a reverse
merger transaction, with Systems Communication, Inc., a Florida
corporation, and the name of the surviving corporation was
changed to Hitsgalore.com, Inc.  Effective as of February 16,
2001, the Registrant, through its new management, determined that
the Registrant's "dot com" assets were not cost effective and
sold a majority of such assets for $20,000.  Effective as of
March 29, 2001, the Registrant changed its name from
Hitsgalore.com, Inc. to Diamond Hitts Production, Inc., a Florida
corporation.

The Registrant assumed a substantial amount of indebtedness
in connection with the merger between Hitsgalore.com, a closely
held Nevada corporation, and Systems Communication, Inc. in March
1999.  In addition, the Registrant has incurred operating losses
in each of the last two fiscal years and in the first quarter of
2001, has discontinued the payment or conversion of outstanding
convertible debt securities and has deferred the payment of trade
and other liabilities to maintain its operations.  In February
2001 the Registrant, after considering the current state of the
Internet industry, market conditions and other factors, disposed
of its "dot com" business.  The Registrant's current business is
to reinvent itself, under the direction of a new management team,
from a "dot com" Registrant to a multifaceted
entertainment\Hollywood-Active production Registrant, seek and
acquire profitable entertainment assets and liquidate, modify,
extend or otherwise satisfy the indebtedness of the Registrant.
As of March 31, 2001, the Registrant is not conducting any
revenue generating activities, has a stockholders' deficit of
approximately $4.3 million and has no significant assets.

New management believes that it has the ability attract the
necessary capital to carryout the transformation of the
Registrant, and has targeted certain operating companies that may
have an interest in entering into a business combination or
similar transaction.  In addition, the Registrant believes that
its creditors are willing to give the Registrant time to reinvent
the business and negotiate the terms upon which such debts are to
be repaid or satisfied.

As of December 31, 2000, the Registrant had a commitment for
a $2,500,000 equity line of credit, which was to be funded over a
twelve-month period, subject to an informal arrangement in
connection with a proposed acquisition and subject to negotiation
of a definitive agreement. The proposed acquisition did not
materialize and the equity line of credit is not currently
available to the Registrant. The Registrant is exploring other
sources of financing in lieu of or in addition to the equity line
of credit to fund the acquisition of entertainment related
businesses and provide the Registrant with the ability to
liquidate, modify, extend or otherwise satisfy the indebtedness
of the Registrant.

The Registrant believes that it will be successful in its
efforts to raise additional equity capital and\or other funding
sources. If the Registrant is successful in raising additional
equity capital and\or other financing sources, the percentage
ownership of the then current stockholders may be reduced and
such reduction may be substantial. However, there is no assurance
that the Registrant's efforts will be successful.

While the Registrant's new management believes it will be
successful in arranging adequate lines of equity or debt
financing to carry out its business plan, there is no assurance
of that occurring. In that event, the Registrant would, in all
likelihood, cease operations. As of March 31, 2001, the
Registrant has no committed sorces of liquidity and it is
uncertain as to whether or not the Registrant can maintain the
business.

Impact of Inflation.

The Registrant is not aware of any inflationary pressures
that have had any significant impact on the Registrant's
operations in the past and the Registrant does not anticipate
that inflationary factors will have a significant impact on
future operations.

Forward Looking Statements.

The foregoing Management's Discussion and Analysis of
Financial Condition and Results of Operations contains "forward
looking statements" within the meaning of Rule 175 under the
Securities Act of 1933, as amended, and Rule 3b-6 under the
Securities Act of 1934, as amended, including statements
regarding, among other items, the Registrant's business
strategies, continued growth in the Registrant's markets,
projections, and anticipated trends in the Registrant's business
and the industry in which it operates.  The words "believe,"
"expect," "anticipate," "intends," "forecast," "project," and
similar expressions identify forward-looking statements.  These
forward-looking statements are based largely on the Registrant's
expectations and are subject to a number of risks and
uncertainties, certain of which are beyond the Registrant's
control.  The Registrant cautions that these statements are
further qualified by important factors that could cause actual
results to differ materially from those in the forward looking
statements, including, among others, the following: reduced or
lack of increase in demand for the Registrant's products,
competitive pricing pressures, changes in the market price of
ingredients used in the Registrant's products and the level of
expenses incurred in the Registrant's operations.  In light of
these risks and uncertainties, there can be no assurance that the
forward-looking information contained herein will in fact
transpire or prove to be accurate.  The Registrant disclaims any
intent or obligation to update "forward looking statements."

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

PART II.

ITEM 1.  LEGAL PROCEEDINGS.

Other than as set forth below, the Registrant is not a party
to any material pending legal proceedings other than ordinary
routine litigation incidental to the business and, to the best of
its knowledge, no such action by or against the Registrant has
been threatened.

Securities and Exchange Commission Action.

On June 9, 2000, staff members of the Securities and
Exchange Commission ("Commission") advised the Registrant that a
recommendation would be made to the Commission seeking authority
to file a civil injunctive action in United States District Court
against the Registrant and Steve Bradford, the Registrant's
former President and Chief Executive Officer.  The recommended
action involves alleged violations of Section 10(b) of the
Securities Exchange Act of 1934, and Rule 10b-5, promulgated
thereunder, in connection with certain press releases issued by
the Registrant prior to May 1999, regarding the Life Foundation Trust.

The Registrant's legal counsel entered into settlement
discussions with SEC staff members upon being advised of the
recommended enforcement action.  The SEC staff and the Registrant
have agreed upon settlement agreement terms, including that the
Registrant would not admit or deny the allegations in the SEC's
Complaint, except as to jurisdiction. SEC staff recommendations
to the Commission, however, customarily undergo considerable
review by various Commission divisions, and are subject to the
Commission's final approval.  No disgorgement or civil money
penalties are expected to be recommended against the Company.
Because the Commission has not approved the proposed settlement,
and it may accept, reject or modify the proposed settlement, the
Company is unable to determine whether or not the proposed
enforcement action could have a material adverse effect on its
financial position.

Libel Action.

On April 27, 2000 the Registrant filed a Complaint for Libel
in the Superior Court of the State of California for the County
of Los Angeles, Case No. BC 228991 against Bloomberg, L.P.
("Bloomberg") a Delaware limited partnership, and David Evans
("Evans"), a reporter with Bloomberg's news service, Bloomberg
News.  The lawsuit alleges that Bloomberg and Evans, through
Bloomberg News, published a series of defamatory articles on May
11 and May 12, 1999, which contained certain false and defamatory
statements regarding the Registrant.  As a result of the
publication of the articles, the Complaint alleges, the price of
the Registrant's stock dropped about 53% in one day.  The
Complaint seeks damages against Bloomberg and Evans in excess of
$500,000,000.

In July 2000, the Superior Court of the State of California
for the County of Los Angeles ("the Court") denied Bloomberg's
first Motion to Strike, holding that Bloomberg and Evans failed
to meet their burden of proof of showing the application of
California's "anti-SLAPP" statute.  On October 22, 2000, after
giving the defendants a second opportunity to present evidence,
the Court granted the defendants a "renewed" special motion to
strike, brought pursuant to the "anti-SLAPP" statute and
dismissed the Registrant's Complaint for Libel. The Court also
awarded the defendants attorney's fees in an amount to be
determined at a future date after an evidentiary hearing and upon
a motion to be filed by Bloomberg.  Bloomberg filed its motion
for attorney's fees and costs on January 8, 2001 seeking an award
of $327,622.  The Company filed a reply to Bloomberg's motion on
February 14, 2001.  The Company is unable to determine the amount
of attorney's fees and costs that will be awarded in favor of
Bloomberg and against the Company.  The Company intends to appeal
the Court's decision..

Obligations, Debts, and Liabilities Assumed in Merger.

During 2000, substantially all of the obligations, debts and
liabilities assumed in connection with the Merger, consisting
principally of legal actions that were pending against the
Registrant at December 31, 1999, became fixed and determinable by
the award of judgments against the Registrant by courts of
competent jurisdiction.

Merger related liabilities consist of judgments awarded
against the Registrant by courts of competent jurisdiction for
matters existing as of the date of the Merger or arising from the
Merger.  These matters are described below.

On May 21, 1997, Jeffery M. Good, as Plaintiff, filed an
action in the United States District Court, Southern District of
Iowa, Davenport Division (Case No. 3-97-CV-60085) against Systems
Communications, Inc., as Defendant, for amounts Mr. Good alleged
were due under an employment agreement.  On September 22, 2000,
the Court entered an order of Findings of Fact, Conclusions of
Law and Judgment against the Registrant.  Pursuant to the order,
the Court awarded Plaintiff $673,933 for breach of contract
damages, $31,013 for attorney fees and costs, $5,538 for
liquidated damages and $100,000 for punitive damages, plus
interest.  As of March 31, 2001, merger related liabilities
include approximately $1,066,642 for this action. This amount
includes pre and post-judgment interest of approximately
$256,158.  The excess of the amount awarded by the Court,
including pre and post judgment interest, over the amount accrued
at December 31, 2000 was approximately $600,819.  This amount is
included in impairment and other losses in the statement of
operations for the year ended December 31, 2000.

On April 15, 1997, Mr. Ken Lame, as Plaintiff, filed an
action in the United States District Court, District Court of
Utah, Central Division (Case No. 2:97CV0292W) against Systems
Communications, Inc. and a subsidiary Registrant that is now a
subsidiary of IHSI, as Defendants, for amounts due under a
consulting agreement.  On July 7, 2000, the United States
District Court for the District of Utah, Central Division,
entered a judgment in favor of Kenneth D. Lame against the
Registrant in the amount of $302,233, plus post judgment
interest.  As of December 31, 2000, the Registrant had accrued
$450,000 for this action.  The excess of the amount accrued at
December 31, 2000 over the amount awarded by the Court, including
interest, was approximately $133,111.  This amount was recorded
was recorded as a reduction in impairment and other losses for
the year ended December 31, 2000.

In 1996, Systems Communications, Inc. informed the
principals of Coast Communications, Inc. ("CCI") that it was
canceling the acquisition of CCI, terminating all of the related
acquisition documents and abandoning CCI's business.  In
connection with the abandonment of CCI's business, the Registrant
wrote off its remaining investment in CCI and recognized a loss
of approximately $300,000.  The principals of CCI filed suit
against the Registrant, and on October 15, 1999 the Circuit Court
of Pinellas County, Florida, Case Number 99-003990-CI-20, entered
a judgment against Systems Communications, Inc. in the amount of
$510,599.  On January 4, 2000 the Plaintiffs filed a Amended
Notice of Entry of Judgment on Sister-State Judgment in the
Superior Court of California, San Bernardino County, Case Number
RCV 044865.  As of December 31, 2000 and 1999, the Registrant has
accrued $555,000 related to this action.  An additional $13,685
in interest was accrued for the quarter ended March 31, 2001.

On June 27, 2000, the Circuit Court of the Sixth Circuit in
and for Pinellas County, Florida entered Final Judgments of
damages in favor of Mr. Edwin B. Salmon, Jr., the former Chief
Executive Officer and Chairman of the of the Board of the
Registrant, in the amount of $468,657 (Case No. 00-002088-CI-15),
and in favor of Mr. William Van Hook, the transferee of certain
Merger shares from Mr. Salmon, in the amount of $164,253 (Case
No. 00-002946-CI-15) for wrongfully denying the removal of
restrictive legends, pursuant to Rule 144 of the Securities Act
of 1933, on share certificates of the Registrant held by them.
As of March 31, 2001, the Registrant has accrued $680,942,
including accrued interest of $48,032, related to these actions.
The Registrant believes that it did not wrongfully deny the
removal of restrictive legends as a result of Mr. Salmon's
guaranty of Merger liabilities and representations made by Mr.
Salmon in connection with the Merger.

On October 26, 1999, the Supreme Court of the State of New
York entered a judgment in favor of Health Management Services,
Inc., Plaintiff, against a subsidiary Registrant that is now a
subsidiary of IHSI, as Defendant.  The amount of the judgment was
$84,674 and together with pre and post-judgment interest of
approximately $11,125, the total judgment amounts to
approximately $95,799 as of March 31, 2001.

The Company believes that its current financial position
and cash flows make it impossible for the Company to satisfy
these judgments.  Nevertheless, the Company expects to enter into
discussions with pre-merger creditors to resolve outstanding
disputes and pre-existing conditions the Company assumed in its
merger with SCMI.  The Company also plans to seek all available
remedies against Edwin B. Salmon, Jr., the Company's former
Chairman of the Board, for restitution and for monetary damages
for alleged misrepresentations made in connection with the merger.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

Sales of Unregistered Securities.

During the quarter ended March 31, 2001, the Registrant
issued the following securities without registration:

(a)  The Registrant issued 250,000 shares of its common
stock to one investor (one of the former employees of the
Registrant) in a private placement transaction and received
net proceeds of $5,000 ($0.02 per share).

(b)  The Registrant issued 15,000,000 shares of its common
stock to Dorian Reed, the Registrant's former Chairman of
the Board, and recorded stock compensation expense of
$451,200 ($0.03 per share).

(c)  The Registrant issued 4,000,000 shares of its common
stock pursuant to an Internet Traffic Agreement entered into
by the Registrant in the ordinary course of business on
December 15, 2000, and recorded a charge to income of
$240,000 ($0.06 per share).

(d)  The Registrant issued 100,000 shares of its common
stock in payment of a $2,000 debt and recorded interest
expense of $1,008. ($0.03 per share).

No commissions or fees were paid in connection with these
sales.  All of the these sales were undertaken pursuant to the
limited offering exemption from registration under the Securities
Act of 1933 as provided in Regulation D as promulgated by the
U.S. Securities and Exchange Commission.  In addition, all the
sales were made only to sophisticated investors.

Use Proceeds.

Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

As of March 31, 2001, the Registrant is in violation of the
payment terms and\or conversion privileges contained in its
short-term debt agreements with related parties. The principal
amount of borrowings that have not been paid and\or converted
into shares of the Registrant's common stock according to the
terms of the related agreements was approximately $500,000.  The
number of shares of the Registrant's common stock that such debt
would have been converted into as of March 31, 2001 was
approximately 30,000,000 shares.

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

None.

ITEM 5.  OTHER INFORMATION.

None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

Exhibits.

Exhibits included or incorporated by reference herein are
set forth in the attached Exhibit Index.

Reports on Form 8-K.

The following report on Form 8-K was filed during the first
quarter of the fiscal year covered by this Form 10-Q:

A Form 8-K was filed on February 20, 2001 to report that all
members of the Board of Directors and executive of the
Registrant resigned their positions as directors and
executive officers of the Registrant.  A new Board of
Directors was voted in by consent of the majority
shareholder.

                                 SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) 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.


                                  Diamond Hitts Production, Inc.



Dated: May 21, 2001               By: /s/  Mark Crist
                                  Mark Crist, President

                          EXHIBIT INDEX

Exhibit                           Description
No.

2.1     Agreement to Exchange Stock between the Registrant and
        Grant Kolb and Patrick Loeprich, dated November 14,
        1997 (incorporated by reference to Exhibit 10.43 of the
        Form 8-K filed on November 21, 1997).

2.2     Reorganization and Merger Agreement between
        Hitsgalore.com and Systems Communications, Inc., dated
        February 11, 1999 (incorporated by reference to Exhibit
        2 to the Form 8-K filed on February 17, 1999).

3.1     Articles of Incorporation, dated December 21, 1987
       (incorporated by reference to Exhibit 3.1 to the Form
        10 filed on July 23, 1996).

3.2     Articles of Amendment to Articles of Incorporation,
        dated July 17, 1990 (incorporated by reference to
        Exhibit 3.1 to the Form 10 filed on July 23, 1996).

3.3     Articles of Amendment to Articles of Incorporation,
        dated December 18, 1990 (incorporated by reference to
        Exhibit 3.1 to the Form 10 filed on July 23, 1996).

3.4     Articles of Amendment to the Articles of Incorporation,
        dated April 3, 1992 (incorporated by reference to
        Exhibit 3.1 to the Form 10 filed on July 23, 1996).

3.5     Articles of Amendment to the Articles of Incorporation,
        dated August 29, 1994 (incorporated by reference to
        Exhibit 3.1 to the Form 10 filed on July 23, 1996).

3.6     Articles of Amendment to the Articles of Incorporation,
        dated July 13, 1995 (incorporated by reference to
        Exhibit 3.1 to the Form 10 filed on July 23, 1996).

3.7     Articles of Amendment to Articles of Incorporation,
        dated September 11, 2000 (incorporated by reference to
        Exhibit 99.1 to the Form S-8 filed on October 2, 2000).

3.8     Articles of Amendment to Articles of Incorporation,
        dated January 3, 2001 (incorporated by reference to
        Exhibit 3.8 of the Form 10-K filed on April 17, 2001).

3.9     Bylaws (incorporated by reference to Exhibit 3.2 to the
        Form 10 filed on July 23, 1996).

4.1     Convertible Debenture Note between the Registrant and
        Telcom United North, Inc., dated December 5, 1995
       (incorporated by reference to Exhibit 4.1 of the Form
        10-SB filed on July 23, 1996).

4.2     Convertible Debenture Note between the Registrant and
        Donald T. McAllister, M.D., dated December 5, 1995
       (incorporated by reference to Exhibit 4.2 of the Form
        10-SB filed on July 23, 1996).

4.3     Convertible Debenture Note between the Registrant and
        David Fisk, dated December 5, 1995 (incorporated by
        reference to Exhibit 4 of the Form 10-SB filed on July
        23, 1996).

4.4     Convertible Debenture Note between the Registrant and
        Leonard F. D'Innocenzo, dated December 5, 1995
       (incorporated by reference to Exhibit 4 of the Form 10-
        SB filed on July 23, 1996).

4.5     Convertible Debenture Note between the Registrant and
        Dean Charles Colantino, dated December 5, 1995
       (incorporated by reference to Exhibit 4 of the Form 10-
        SB filed on July 23, 1996).

4.6     Convertible Debenture Note between the Registrant and
        Donald P. Dugan, dated December 5, 1995 (incorporated
        by reference to Exhibit 4 of the Form 10-SB filed on
        July 23, 1996).

4.7     Convertible Debenture Note between the Registrant and
        Comgi Retirement Trust,John R. Lang, M.D./Sharon B. Lang:
        Trustees, dated December 5, 1995 (incorporated by reference
        to Exhibit 4 of the Form 10-SB filed on July 23, 1996).

4.8     Convertible Debenture Note between the Registrant and
        John R. Lang, M.D./Sharon B. Lang, dated December 5,
        1995 (incorporated by reference to Exhibit 4 of the
        Form 10-SB filed on July 23, 1996).

4.9     Convertible Debenture Note between the Registrant and
        Dale D. Higgins, dated December 5, 1995 (incorporated
        by reference to Exhibit 4 of the Form 10-SB filed on
        July 23, 1996).

4.10    Convertible Debenture Note between the Registrant and
        R. Thomas Jannarone, dated December 5, 1995
       (incorporated by reference to Exhibit 4 of the Form 10-
        SB filed on July 23, 1996).

4.11    Offshore Offering Distribution agreement between
        the Registrant and Victory Investments, LLC., dated
        October 1, 1996 (incorporated by reference to Exhibit
        4.11 of the Form 8-K filed on March 28, 1997).

4.12    Convertible Debenture issued to RIC Investment Fund,
        Ltd., dated November 21, 1996 (incorporated by reference to
        Exhibit 4.12 of the Form 8-K filed on March 28, 1997).

4.13    Offshore Securities Subscription Agreement for
        Cumulative Convertible Debenture between the Registrant
        and RANA Investment Registrant, dated November 26, 1996
       (incorporated by reference to Exhibit 4.13 of the Form
        8-K filed on March 28, 1997).

4.14    Cumulative Convertible Debenture Note issued by the
        Registrant to Nidan, Inc. (incorporated by reference to
        Exhibit 4.15 of the Form 10-K filed on February 20, 1998).

4.15    Convertible Debenture issued to International TeleData
        Corporation, dated January 31, 1997 (incorporated by
        reference to Exhibit 10.41 of the Form 8-K filed on
        July 28, 1997).

4.16    Offshore Securities Subscription Agreement for
        Convertible Debenture between the Registrant and
        Timboon, Ltd., dated February 24, 1997 (incorporated by
        reference to Exhibit 4.14 of the Form 8-K filed on
        March 28, 1997).

4.17    Form of Settlement Agreement between the Registrant and
        Timboon Ltd., dated March 2, 1998 (incorporated by
        reference to Exhibit 4.16 of the Form 8-K filed on
        March 10, 1998).

4.18    Form of Non-Statutory Incentive Stock Option Agreement
       (incorporated by reference to Exhibit 4.17 of the Form
        S-8 filed on May 12, 1998).

4.19    Hitsgalore.com, Inc. Year 2000 Stock Award Plan, dated
        September 29, 2000 (incorporated by reference to
        Exhibit 10.1 of the Form S-8 filed on October 2, 2000).

4.20    Retainer Stock Plan for Non-Employee Directors and
        Consultants, dated January 16, 2001 (incorporated by
        reference to Exhibit 4 of the Form S-8 filed on
        February 8, 2001)

10.1    Letter of Intent, Subscription for Stock between the
        Registrant and The Life Foundation Trust, dated April
        15, 1999 (incorporated by reference to Exhibit 10.44 of
        the Form 10-K/A filed on December 2, 1999).

10.2    Subscription Agreement and Investment Representations
        between the Registrant and The Life Foundation Trust,
        dated April 15, 1999 (incorporated by reference to
        Exhibit 10.45 of the Form 10-K/A filed on December 2, 1999).

10.3    Purchase Agreement between the Registrant and Solvere,
        Inc., dated March 29, 1999 (incorporated by reference
        to Exhibit 10.46 of the Form 10-K/A filed on December
        2, 1999)

16      Letter on change in certifying accountant, dated
        September 7, 1999 (incorporated by reference to Exhibit
        16 of the Form 8-K/A filed on September 9, 1999).

17.1    Letter on director resignation, dated July 2, 1997
       (incorporated by reference to Exhibit 17.1 of the Form
        8-K filed on July 28, 1997).

17.2    Letter on director resignation, dated June 27, 1997
       (incorporated by reference to Exhibit 17.2 of the Form
        8-K filed on July 28, 1997).