UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   Form 10-KSB

                                   (Mark One)

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

                  For the fiscal year ended: December 31, 1999

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

                        For the transition period from to

                           Commission File No.0-27720

                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (FORMERLY KNOWN AS EUROMED, INC.)
             (Exact name of registrant as specified in its charter)
<TABLE>
<S>                                       <C>

Nevada                                     88-031770
(State or other jurisdiction          IRS Employer Identification No.)
of incorporation or organization)
</TABLE>

                    5910 North Central Expressway, Suite 1480
                                Dallas, TX 75206
                    (Address of principal executive offices)

                                  214-237-3223
               Registrant's telephone number, including area code

           Securities registered pursuant to Section 12(b) of the Act:

                                      None

           Securities registered pursuant to Section 12(g) of the Act:
                          Common Stock, $.01 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) has  been  subject  to such  filing
requirements for the past 90 days.

                                 Yes [x] No [ ]

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of Registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-KSB. [x]

      State issuer's revenue for its most recent fiscal year: $9,709,826

 The                            number shares  outstanding  of the  registrant's
                                common stock as of May 8, 2000 was:

           2,289,000 shares of common stock, par value $.01 per share.





                                                                               1


<PAGE>





The  aggregate  market value of the voting stock held by  non-affiliates  of the
registrant  as computed by reference to the average of the closing bid and asked
prices of such stock,  as reported by the Bulletin  Board, on May 8, 2000 ($1.00
per  share) is  $1,127,500.  Shares of voting  stock  held by each  officer  and
director  and by each person who owns 10% or more of the  Company's  outstanding
voting  stock  have  been  excluded  in that  such  persons  bay be deemed to be
affiliates.  This  determination  of  affiliate  status  is  not  necessarily  a
conclusive determination for other purposes.

                                        2

                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (FORMERLY KNOWN AS EUROMED, INC.)

                      For the Year Ended December 31, 1999

                                Table of Contents

<TABLE>
<S>               <C>                                                                                                    <C>
                                                                                                                    Page

Part I

    Item 1:        Business...............................................................................................4

    Item 2:        Properties.............................................................................................9

    Item 3:        Legal Proceedings......................................................................................9

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


Part II

    Item 5:        Market for the Registrant's Common Equity and Related Stockholder Matters.............................10

    Item 6:        Management's Discussion and Analysis of Financial Condition and Results of Operations.................11

    Item 7:        Financial Statements and Supplementary Data...........................................................14

    Item 8:        Changes in and Disagreements with Accountants on Accounting and Financial Disclosure..................15

Part III

    Item 9:        Directors and Executive Officers of Institutional Equity Holdings, Inc................................15

    Item 10:       Executive Compensation................................................................................16

    Item 11:       Security Ownership of Certain Beneficial Owners and Management........................................18

    Item 12:       Certain Relationships and Related Transactions........................................................19

Part IV

    Item 13:       Exhibits, Financial Statement Schedules, and Reports on Form 8-K......................................20

</TABLE>







                                                                               3

                                                           PART I

Item 1. Business

Swiss  Nassau  Corporation  was  incorporated  on May 17,  1994 in the  State of
Nevada,  with 1,000 shares of authorized common stock with no par value. On June
15,1994,  all authorized shares of common stock of Swiss Nassau Corporation were
issued.  On October 20,  1995,  Swiss Nassau  Corporation  changed its name into
EuroMed, Inc. and increased its authorized shares to 20,000,000 shares of common
stock with a new par value of $0.01 per share,  and 5,000,000  preferred  shares
with a par value of $0.01 per share. On October 20, 1995, EuroMed, Inc. effected
a 150 for 1 stock split of its common stock.  On April 23, 1999,  EuroMed,  Inc.
changed its name to  Institutional  Equity  Holdings,  Inc.  (the  "Company"  or
"IEH").

In November 1995, the Company began acquiring pharmaceutical companies operating
exclusively  in Europe.  The Company  completed the  acquisitions  using the net
proceeds from the sale of 1,150,000  shares of its common stock (issue price was
$6.50 per  share) in March  1996 and the  issuance  of  2,700,000  shares of its
common stock.  Subsequent to the  acquisitions,  laws relating to the pricing of
pharmaceuticals  in Europe were  changed and as a result the  operations  of the
pharmaceutical companies owned by the Company were severely impacted,  resulting
in significant operating losses. The Company realized  approximately  $1,146,000
in cash and  cancelled  2,700,000  shares of its  common  stock upon sale of its
European subsidiaries in 1997.

The Company had no business activities in the calendar year of 1998, except that
on November 6, 1998 the Company's  Board of Directors  approved and executed the
"Agreement and Plan of Reorganization"  by and among the Company,  Institutional
Equity Corporation ("IEC", a wholly owned subsidiary of the Company and formerly
known as Redstone Acquisition Corp.) and Redstone Securities, Inc. ("Redstone"),
a licensed broker and dealer of securities.

Effective  February  16,  1999,  Redstone  was merged  into the newly  organized
subsidiary  IEC. The Company  issued  600,000  shares of its common stock to the
three principals of Redstone,  Thomas Laundrie,  Gary Prucell,  and Richard Belz
(collectively  referred to as the "Redstone  Shareholders") and was obligated to
issue an additional 500,000 shares of its common stock (the "Restricted Shares")
upon the market price of the  Company's  common  stock  reaching  certain  price
levels or IEC reporting certain levels of net income.  Notwithstanding the price
levels of the common  stock or net income  performance  levels,  the  Restricted
Shares fully vest on February 16,  2002.  Redstone has been a registered  broker
dealer since 1988.

The  Redstone  Shareholders  agreed to  terminate  their  relationship  with the
Company in February 2000 subject to certain compensation  payments, to forgo the
collection of the Company's subordinate notes due the Redstone Shareholders,  to
assume an investment  in a certain  security at its book value and to modify the
number of shares of the Company's  common stock from 1,100,000 to 500,000 shares
of fully vested common stock. The Company has a right to repurchase these shares
of its common stock at a price of $2.00 per share as follows:

          Number of                           Redemption
          Shares                               Period

         100,000                           Calendar year 2000
         100,000                           Calendar year 2001
         300,000                           On or before February 16, 2002

IEH is a holding  company whose only operating  subsidiary is IEC a full service
brokerage  firm engaged in the purchase and sale of  securities  from and to the
public and for its own account and investment  banking  activities.  The Company
operates in one industry segment,  the financial services industry.  At December
31, 1999, IEC employed 124 brokers  registered with the National  Association of
Securities  Dealers,  Inc.  ("NASD").  IEH also  employed a support  staff of 30
persons in its headquarters in Dallas, TX and in its branch offices. At December
31, 1999, IEH had 4 branch offices  throughout the United States.  The Company's
headquarters are located at 5910 North Central  Expressway,  Suite 1480, Dallas,
TX 75206. Its telephone number is (214) 237-3223.

                                                                               4

                    Principal Products, Services and Markets

Virtually  all of IEH's  business is carried on through  IEC. IEC is involved in
the  purchase  and sale of most  investment  securities  but is not  involved in
commodities  or  futures.   Three  broad  categories  of  securities  activities
contribute  to revenues of IEC:  general  securities  (or  retail),  trading and
market making (or wholesale) and corporate  finance/investment banking. IEC also
receives  revenues  from  gains and  losses  in  investment  accounts,  from the
exercise of  underwriter  warrants  received in  connection  with its  corporate
finance activities, and from other sources.

The following table  indicates the approximate  percentage of revenues that were
accounted for by each of these categories and from investment  income (including
underwriter warrants) in the last five fiscal years:

<TABLE>
<S>                                             <C>        <C>          <C>           <C>           <C>

                                               1999         1998        1997          1996        1995

    Commissions                                 89%          70%          46%          38%          29%
    Gain (Loss) on Firm Securities
       Accounts                                 (3)          20           46           49           57
    Underwriting and syndicate income           12            5            1            8           11
    Other                                        2            5            7            5             3
                                               100%         100%         100%         100%         100%
</TABLE>


In this table, "Trading" includes only the net profit or loss from IEC's trading
activities. See "Trading and Market Making."

                               General Securities

As a securities  broker, IEC acts as agent for its customers in the purchase and
sale of common and  preferred  stocks,  options  and debt  securities  traded on
securities exchanges or in the over-the-counter  ("OTC") market. A major portion
of  its  revenues  is  derived  from   commissions   from   customers  on  these
transactions.  In the OTC market,  transactions with customers in securities not
listed on an exchange may be effected as principal, rather than agent, primarily
where  IEC  is a  market  maker  in  that  security.  Customer  transactions  in
securities are effected either on a cash or margin basis.

IEC enters into dealer  agreements  with mutual fund  management  companies  and
publicly  registered  limited  partnerships.  Commissions  on the  sale of these
securities  are derived from the standard  dealers  discounts,  which range from
approximately  one  percent  (1%) to eight and  one-half  percent  (8.5%) of the
purchase price of the securities, depending on the terms of the dealer agreement
and the amount of the purchase. IEC does not generally sell interests in limited
partnerships which are not publicly registered.

Pursuant to an agreement between IEC, First Southwest Company ("FSW") and Fiserv
(FIS), FSW and FIS carry all of IEC's customer  securities accounts and performs
the following services: (1) preparation and mailing of monthly statements to IEC
customers;  (2) settlement of contracts and  transactions in securities  between
IEC and other broker-dealers and between IEC and its customers;  (3) custody and
safe-keeping of securities and cash, the handling of margin accounts, dividends,
exchanges, rights offerings and tender offers; and (4) the execution of customer
orders  placed on an exchange.  IEC  determines  the amount of  commission to be
charged to its  customers  on agency  transactions  and the price of  securities
purchased or sold in principal  transactions.  FSW and FIS receives compensation
based on the size of the  transaction,  subject to certain  minimum  and maximum
amounts.  The agreements  between IEC and FSW and IEC and FIS may be canceled by
either party upon 60 days written notice, which period may be reduced in certain
events. In the event of a liability arising from a bad debt from a customer, IEC
is required to indemnify FSW or FIS against any loss.  This potential  liability
is uninsured.

                                        5

In addition to  providing  clearing  services for IEC, FSW and FIS loan money to
IEC in the ordinary course of IEC's business,  pursuant to an arrangement  under
which FSW and FIS agrees to finance IEC's trading accounts. At December 31, 1999
no  loans  were  outstanding  pursuant  to  this  arrangement.  See  "Item  6  -
Management's Discussion and Analysis or Plan of Operation."

                            Trading and Market Making

In addition to executing  trades as an agent,  IEC regularly acts as a principal
in  executing  trades  in  equity  securities,  corporate  debt  securities  and
municipal  bonds. The amount of trading by IEC in the high yield bond market has
not been material.  At December 31, 1999, IEC made a market in  approximately 55
securities of 54 issuers.  Of these, two (2) were corporations for which IEC has
acted as managing or co-managing underwriter of public financings.  In addition,
at December  31, 1999,  IEC held  securities  of 24 companies in its  investment
account.  In 1999,  the value of  securities  held in the trading  accounts  and
investment  account  ranged  between  $464,034  and  $1,385,456.  The  level  of
positions   carried  in  IEC's  trading  and  investment   accounts   fluctuates
significantly.  The  size of the  securities  positions  at any  date may not be
representative  of IEC's  exposure  on any  other  date,  because  the  security
positions vary substantially depending upon economic and market conditions,  the
allocation  of capital  among types of  inventories,  underwriting  commitments,
customer demands and trading volume. The aggregate value of inventories that IEC
may carry is limited by certain requirements under the SEC's net capital rules.
See "Net Capital Requirements."

IEC's market  making  activities  are  conducted  both with other dealers in the
"wholesale  market" and with IEC's  customers.  Transactions  with customers are
effected as principal at a net price equal to the current interdealer price plus
or minus the approximate  equivalent of a brokerage  commission.  Securities are
purchased  primarily to provide an inventory  for customers who wish to buy, and
short sales are likewise made primarily to serve customers.  IEC's  transactions
as principal  expose IEC to risk  because  securities  positions  are subject to
fluctuations  in market  value and  liquidity.  Profits or losses on trading and
investment  positions  depend upon the skills of the  employees in IEC's trading
department  and  employees  responsible  for taking  investment  positions.  The
    trading department is headquartered in IEC's Plainview, New York office.

                                Corporate Finance

IEC raises capital through public offerings of securities for corporations  that
are engaged in a variety of businesses.  IEC  participates in  underwritings  of
corporate  securities  as  managing  underwriter  and  as  a  syndicate  member.
Management  of  an  underwriting  account  is  generally  more  profitable  that
participation as a member of an underwriting  syndicate.  Revenues  generated by
syndicate participations have not been material.

IEC generally  underwrites  public  offerings of securities in the range of $1.5
million to $10 million on a "firm commitment"  basis, which means that it agrees
to purchase a specific  amount of securities from the issuer at a discount after
the  registration  statement  for the  offering  is  declared  effective  by the
Securities and Exchange  Commission (the SEC") and resells the securities to the
public at a specified price.  The  underwriting  involves risk of loss if IEC is
unable to resell at a profit the  securities  it is committed to purchase.  This
risk is usually reduced by accepting other stock brokerage firms as a part of an
underwriting  syndicate  in which each  member  commits to  purchase a specified
amount of the offering.  IEC and other  underwriters  may also sell a portion of
their  commitment  through a "Selling Group" of other stock brokerage firms that
participate  in selling the  offering  but are not  subject to an  underwriter's
commitment. As an underwriter,  IEC is also subject to potential liability under
federal and state securities laws and other laws if the  registration  statement
or prospectus  contains a material  misstatement  or omission.  IEC's  potential
liability as an underwriter is uninsured.

The commitment of capital by IEC between the time a firm commitment underwriting
agreement becomes effective and the time IEC resells the securities  constitutes
a  charge  against  its net  capital.  Accordingly,  IEC's  participation  in or
initiation of underwritings  maybe limited by the financial  requirements of the
Sec and NASD. See "Net Capital Requirements."

Between  January  1,  1999  and  December  31,  1999 IEC  acted as the  managing
underwriter or co-managing underwriter

                                        6

for four (4) securities offerings, raising approximately $21,027,500 million for
corporate finance clients. Of these, two (2) were initial public offerings.  IEC
typically receives two (2) to three (3) percent of the aggregate amount of money
raised in an offering to cover  non-accountable  expenses and between  seven (7)
and ten (10) percent as compensation to underwriters,  selling group members and
registered  representatives,  although these percentages may be lower for larger
transactions. Typically IEC also receives warrants to purchase securities, equal
to ten (10) percent of the securities sold in the offering, for a period of five
years at a price equal to one hundred twenty percent (120) percent of the public
offering price,  although a portion of these warrants are typically  transferred
as compensation  to persons  associated with IEC and, in certain cases, to other
major underwriters in the public offering. See "Item 6 - Management's Discussion
and Analysis or Plan of Operation Liquidity and Capital Resources."

                                 Branch Offices

IEC  personnel  run IEC branch  offices  and IEC assumes  liability  for all the
operating expenses of the branch.  Persons in these branches are registered with
IEC,  and IEC  assumes  the  compliance  and  regulatory  obligations  for these
employees. As of December 31, 1999, IEC had 4 branch offices in Florida (1), New
Jersey (1) and New York (2).

                                    Research

IEC does not presently employ anyone to perform  research.  In 1999, two persons
were  employed  to gather and  analyze  information  that would be  intended  to
provide  IEC with an  adequate  basis  for  performing  its  investment  banking
activities  and to provide  customers  with a regular flow of information on the
companies for which IEC has in the past provided investment banking services.

                                   Regulation

IEC is registered with the SEC as a broker-dealer  under the Securities Exchange
Act of 1934. It is also  registered as a  broker-dealer  under laws of 48 states
and Washington, D.C. IEC is a member of the NASD.

The  securities  business is subject to extensive  regulation  under federal and
state laws. The principal purpose of regulation and discipline of broker-dealers
is the protection of customers and the securities markets rather than protection
of creditors and stockholders of  broker-dealers.  The SEC is the federal agency
charged  with  administration  of  the  federal  securities  laws.  Much  of the
regulation of  broker-dealers,  however,  has been delegated to  self-regulatory
organizations,  principally the NASD. These self-regulatory  organizations adopt
rules  (subject to approval by the SEC),  which  govern the industry and conduct
periodic  examinations  of  member  broker-dealers.  Securities  firms  are also
subject to regulation  and  examination by state  securities  commissions in the
states in which they are registered.

The  regulations  to which  broker-dealers  are subject cover all aspects of the
securities   business,   including  sales  methods,   trading   practices  among
broker-dealers,  capital structure of securities  firms,  record keeping and the
conduct of directors, officers and employees. Additional legislation, changes in
rules  promulgated  by the SEC and by  self-regulatory  bodies or changes in the
interpretation  or enforcement of existing laws and rules often affect  directly
the method of operation and profitability of  broker-dealers.  The SEC, NASD and
state regulatory authorities may conduct administrative  proceedings,  which can
result in  censure,  fine,  suspension  or  expulsion  of a  broker-dealer,  its
officers or employees.

                            Net Capital Requirements

IEC is required to maintain  minimum "net  capital"  under the SEC's net capital
rule of not less than 6.67 percent of its aggregate indebtedness. As of December
31,  1999,  IEC  had  net  capital  of  $559,737,  which  exceeded  its  minimum
requirement  of $100,000 by  $156,638.  The ratio of aggregate  indebtedness  of
$677,577 to net capital of $256,638 on December 31, 1999 was  approximately  .93
to 1. In a public offering in which IEC acts as an underwriter, IEC must

                                        7

have  sufficient  net  capital to cover the amount of  securities  underwritten,
applying  applicable  formulas  mandated by the SEC,  during the period  between
effectiveness and the closing of the transaction  (usually about one week). This
results in a significant  temporary  increase in IEC's required net capital.  In
many cases, the amount of securities underwritten by IEC has been limited by its
net capital.  Any significant  reduction in IEC's net capital,  even if IEC were
still in  compliance  with the SEC's net capital rule for its retail and trading
activities,  could have a material  adverse  impact on IEC's ability to continue
its investment banking activities.

                                   Competition

All aspects of IEC's business are highly  competitive.  In its general brokerage
activities,  IEC competes directly with numerous other  broker-dealers,  many of
which are large  well known  firms  with  substantially  greater  financial  and
personnel  resources  than  IEC.  Many of  IEC's  competitors  employ  extensive
advertising  and  actively  solicit  potential  clients  in  order  to  increase
business. In addition, brokerage firms compete by furnishing investment research
publications  to  existing  clients,  the  quality  and  breadth  of  which  are
considered  important in the  development  of new business and the  retention of
existing clients.  IEC also competes with a number of smaller regional brokerage
firms.

Some  commercial  banks  and  thrift  institutions  offer  securities  brokerage
services.  Many commercial banks offer a variety of investment banking services.
Competition   among   financial   services  firms  also  exists  for  investment
representatives and other personnel.

The  securities  industry has become  considerably  more  concentrated  and more
competitive  over the last  decade,  as  numerous  securities  firms have either
ceased  operations  or have been  acquired by or merged into other  firms.  This
trend has been particularly  pronounced among firms similar in size and business
mix to IEC. In  addition,  companies  not engaged  primarily  in the  securities
business,  but with  substantial  financial  resources,  have  acquired  leading
securities firms. These developments have increased  competition from firms with
greater  capital  resources than those of the Company.  Various  legislative and
regulatory  developments have tended to increase competition within the industry
or reduced profits for the industry. In particular,  various recent developments
have tended to increase competition from commercial banks.

The securities industry has experienced  substantial  commission  discounting by
broker-dealers  competing for  brokerage  business.  In addition,  an increasing
number  of  specialized  firms  now  offer  "discount"  services  to  individual
customers.  These firms generally effect  transactions for their customers on an
"execution  only"  basis  without  offering  other  services  such as  portfolio
valuation, investment recommendations and research. A growing number of discount
brokerage  firms offer their  services  over the  internet,  further  decreasing
offered  commission  rates  and  increasing  ease  of  use  for  customers.  The
continuation  of such  discounting  and an  increase  in the  number  of new and
existing  firms  offering  discounts  could  adversely  affect the  Company.  In
addition,  rapid  growth in the mutual  fund  industry is  presenting  potential
customers of IEC with an increasing  number of alternatives to traditional stock
brokerage accounts.

In its investment banking  activities,  IEC competes with other brokerage firms,
venture capital firms, banks and all other sources of capital for small, growing
companies.  Since IEC generally manages  offerings smaller than $10 million,  it
does not typically  compete with the  investment  banking  departments of large,
well-known national brokerage firms.  Nevertheless,  IEC may occasionally manage
larger offerings.  In addition,  large national and regional  investment banking
firms  occasionally  manage  offerings of a size that is  competitive  with IEC,
typically  for fees and  compensation  less than that  charged by IEC.  When the
market for initial public offerings is active, many small regional firms that do
not typically engage in investment banking activities also begin to compete with
IEC.

                                    Employees

At December 31, 1999, the Company had 154 employees,  of whom 30 were executives
and support staff and 124 were involved in brokerage  activities and compensated
on a commission and/or salary basis.

                                        8

ITEM 2. DESCRIPTION OF PROPERTY

The following summarizes the properties leased by the Company as of December 31,
1999:

<TABLE>
<S>                      <C>                             <C>                    <C>               <C>

                                                                                                     LEASE

                                                       SQUARE              MONTHLY               EXPIRATION
 OFFICE              ADDRESS                           FOOTAGE              RENTAL                  DATE

Plainview          101 Fairchild Ave.                     5,566              $  7,145              May 2003
                   Plainview, New York

Lynbrook           300 Merrick Road, Suite 307            3,800              $  7,217              September 2004
                   Lynbrook, New York

Newark             550 Broad Street                       5,083              $  7,201              July 2004
                   Newark, New Jersey

Boca Raton         100 East Linton Blvd.,                   800              $  1,343              October 2000
                   Suite 3013,
                   Delray Beach, Florida

Dallas             5910 N. Central Expressway             7,059               $12,353              October 2004
                   Dallas, Texas
</TABLE>


ITEM 3. LEGAL PROCEEDINGS

From  December  31,  1999,  and to May 8, 2000,  the Company was  involved in no
litigation.  The  Company is a party to  numerous  NASD  arbitrations  and it is
management's opinion that settlements,  if any, would not have a material effect
on the  accompanying  consolidated  financial  statements  for  the  year  ended
December 31, 1999.

In compliance  with an Injunction and Civil  Contempt  Order of January  6,1999,
Gregory Alan Gaylor, a Shareholder of the Company,  signed an irrevocable  proxy
dated January 21, 1999, appointing  Institutional Equity Holdings,  Inc., as his
sole proxy with respect to 125,000 shares of Institutional Equity Holdings, Inc.
common stock.

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

No matters were  submitted to a vote of security  holders  during the year ended
December 31, 1999.

                                        9

                                     PART II

Item 5:  Market  for the  Registrant's  Common  Equity and  Related  Stockholder
Matters

The Company's common stock trades in the over-the-counter  market. The Company's
stock has not been actively traded.  The Company's stock is quoted on the Nasdaq
SmallCap  Market under the symbol "IEQC" ("EMED" until the Company's name change
in April 2000). Before this time, March 19, 1996 to December 30, 1996, the stock
was traded on the Nasdaq National market under the symbol "EMED."

The  following  table sets forth the high and low sales prices on the Nasdaq for
the Common Stock for fiscal year 1999 and 1998.

<TABLE>
<CAPTION>

                                                 1999                                          1998
<S>                                      <C>              <C>                             <C>            <C>

    Quarter                               High            Low                          High              Low
    First Quarter                         $2.25            $0.31                        $0.53            $0.23
    Second Quarter                         1.87             1.00                         0.97             0.53
    Third Quarter                          2.25             1.08                         1.58             0.64
    Fourth Quarter                         1.62             0.75                         0.81             0.41
</TABLE>

On May 8, 2000,  the Company had 54  stockholders  of record of its common stock
and 2,289,000 shares outstanding.

The high and low  closing  prices for the first  quarter of 2000  through May 8,
2000 were $3.63 and $1.00, respectively.

                                 Dividend Policy

The  Company  has never paid a  dividend  on its common  stock.  Regulatory  net
capital  requirements  may limit the ability of IEC to pay dividends to IEH. IEH
anticipates that, for the foreseeable future,  earnings will be retained for use
in its business and does not anticipate the payment of dividends.

                        Sales of Unregistered Securities

In November  1998, the Company agreed to issue 35,000 shares of its Common Stock
in  settlement  of  professional  fees  related  to the  sale  of the  Company's
subsidiary  in 1997.  As of December 31, 1999,  these shares of its common stock
had not been issued.

In February 1999, the Company as part of its acquisition of Redstone Securities,
Inc. issued 600,000 shares of its common stock and agreed to issue an additional
500,000  shares of its common stock subject to certain future stock price levels
and the income  levels.  In  February  2000,  the  agreement  with the  Redstone
Shareholders  was modified so that they  ultimately  receive  500,000  shares of
fully vested common stock.

In April 1999,  the Company sold 97,000 shares of its common stock for $1.00 per
share. As of December 31, 1999,  36,000 of the shares sold in April 1999 had not
been issued.

In December 1999, the Company sold 250,000 shares of its common stock at a price
of $1.00 per share.  As of December 31,  1999,  these shares of common stock had
not been issued.

10 In 1999,  the  Company  authorized  the  issuance of  preferred  stock and in
private placements sold the following shares of its preferred stock:

<TABLE>
<S>                                             <C>                       <C>                            <C>

                  Preferred  Stock            Number of                    Price                    Per Total
                      Series                     Shares                      Sold                  Share Value

                      Series A                 1,060,000                   $2.00                    $2,120,000
                      Series B                    37,500                   $2.00                       $75,000
</TABLE>

Subsequent to December 31, 1999, the Company sold an additional 37,500 shares of
it's Series B Preferred Stock at $2.00 per share.

ITEM 6: Management's  Discussion  Analysis of Financial Condition and Results of
Operation

                             Selected Financial Data

The following selected consolidated financial data for each of the five years in
the  period  ended  December  31,  1999,  have  been  derived  from the  audited
consolidated  financial  statements  of the Company.  The selected  consolidated
financial data set forth below should be read in conjunction with  "Management's
Discussion and Analysis of Financial  Condition and Results of  Operations"  and
the consolidated  financial  statements and notes thereto included  elsewhere in
this report.

<TABLE>
<CAPTION>

                                                               YEARS       ENDED       DECEMBER       31,
<S>                                             <C>                 <C>          <C>            <C>              <C>

                                                  1995*               1996*      1997*            1998             1999
Statement of Operations Data:
    Revenues                                   $8,323,483       $7,254,208     $5,535,951       $4,497,780       $9,709,826
    Total Expenses                             7,458,128         7,203,035      5,428,074        5,126,041       12,952,709
    Net Income (Loss)                             865,355           51,153        107,877         (631,261)      (3,330,827)
    Weighted Average Number of Common
        Shares Outstanding                      1,930,000        1,930,000      1,942,000        1,942,000        2,028,000
        Income (Loss) Per Share                     $0.45            $0.03          $0.05          $(0.32)          $(1.64)

Balance Sheet Data at Year End:
    Total Current Assets                        2,652,483        2,713,563      1,643,806        1,357,182        1,889,438
    Total Assets                                2,791,718        2,915,808      1,808,585        1,480,508        3,835,075
    Current Liabilities                        1,490,043         2,677,980      1,461,880          608,056        1,786,780
    Stockholders' Equity                         771,675           237,820        346,705          357,452          349,252

*Amounts reflected are applicable to Redstone Securities, Inc. operations, only.
</TABLE>


<PAGE>



Results of Operations

Year ended December 31, 1999 Compared to Year ended December 31, 1998

Revenues  for the year ended  December 31, 1999,  increased  116% to  $9,709,826
compared to  $4,494,780  for the year ended  December  31,  1998.  In 1998,  the
Company had two (2) offices in New York and one (1) office in Florida.  In 1999,
the  Company  added two (2)  offices  in Texas and one in New  Jersey;  however,
subsequent  to their  opening,  offices  were closed in Texas  (Austin)  and New
Jersey (West Patterson). The new offices were the source of increased commission
revenue. In 1998, the Company did not act as managing  underwriter on any public
or private  security  offerings,  while in 1999,  the Company  was the  managing
underwriter   for  four  (4)   securities   offerings,   raising   approximately
$21,027,500.  These  underwriting  activities  resulted in the 413%  increase in
underwriting revenue.

                                       11

Expenses for the year ended  December 31, 1999,  increased  153% to  $12,952,709
compared to  $5,126,041  for the year ended  December  31, 1998.  The  following
summarizes the changes in expenses:

<TABLE>
<CAPTION>

                                                                                         1999

                                                                                      Percentage
                                                                                     Increase In
                                          Percentage of Total Expenses                  Expenses
                                         1998                  1999
<S>                                      <C>                      <C>                     <C>

    Employee Compensation                 58%                      66%                    190%
    Commissions Paid to
        Other Broker Dealers              10                        8                      108
    Underwriting and
        Syndicate Expenses                 -                        2                   1,031
    General And
        Administrative Expenses           22                       10                      15
    Rent, Telephone and
        Quotation Expense                  8                        8                     150
    Interest Expense                       2                        6                     639
              Total Expenses             100%                      100%                   153

    Total Expenses as a Per-
        Centage of Revenues              114%                      133%
</TABLE>

Overall  expenses  increased  153% in  1999,  as  compared  to  1998.  The  most
significant increase in expenses was the 190% increase in salaries to $8,619,955
for the year ended December 31, 1999,  compared to $2,970,207 for the year ended
December 31, 1998. The employee  compensation  increase is  attributable  to the
increased  number of brokers and other  support staff in the new offices and the
increased  compensation  related to the underwriting  activity.  The brokers and
officers  generally received  approximately  sixty percent (60%) of the revenues
derived from the underwritings plus an allocation of the underwriter's warrants.
Included in employee  compensation  expense was  $657,390 of expense  associated
with warrants,  in client  companies,  earned by brokers  participating  in 1999
underwritings.  The increase in  commissions  paid to other  broker  dealers and
underwriting and syndicate expenses was the result of the 1999 underwritings.

In March 1999,  the Company  entered into an agreement  with an  individual  for
delivery to the Company of a stock  certificate  representing  66,250  shares of
common stock of Westower  Corporation  (which has  subsequently  converted  into
119,912  shares  of  Spectrasite  Holdings,  Inc.).  The  agreement  included  a
provision that the individual was to receive  compensation equal to five percent
(5%) of the average daily  closing sales price of the common stock  ($59,500 for
1999) and warrants to purchase  414,062 shares of the Company's  common stock at
an exercise  price of $2.00 per share  (estimated  fair value of the warrants at
date of issue was $571,406).  The $630,906 of compensation to the individual was
included in interest expense for the year ended December 31, 1999.

For the year  ended  December  31,  1999,  the  Company  reported  a net loss of
$3,330,827  compared to a loss of $631,261 for the year ended December 31, 1998.
The  increase  in the  loss  was  the  result  of the  growth  in  employee  and
non-employee compensation, which could not be off set by increased revenues.

                                       12

LIQUIDITY AND CAPITAL RESOURCES

Cash used in operations  was  $2,434,855  for the year ended  December 31, 1999,
compared with cash used in  operations  of $361,029 for the year ended  December
31, 1998. This  significant  increase in cash used was attributable to increases
in employee and operating costs associated with the new offices.  The Company is
currently  reassessing  its staffing  levels and need for branch  offices.  With
changes being considered by management,  the Company expects that it can achieve
profitable operations by June 2000.

In December  1999, the Company  initiated its Series B Preferred  Stock offering
which makes  provision for the sale of 750,000 shares of the Company's  Series B
Preferred  Stock for $2.00 per share.  As of May 8, 2000,  the  company has sold
75,000 shares of Series B Preferred  Stock. The expected profits from operations
in 2000,  together with the proceeds from the Series B Preferred  Stock offering
are expected to provide  adequate  financial  resources to finance the Company's
operations in 2000.

For the year ended  December 31,  1999,  the Company  expended  $308,041 for the
purchase of furniture and equipment.

In February 2000, the Company sold 40,000 shares of Spectrasite  Holdings,  Inc.
for an aggregate value of approximately $830,000. The proceeds, from the sale of
shares,  were used to repay a $407,170 loan from a brokerage firm and to finance
current operations.  The shares of Spectrasite  Holdings,  Inc. were owned by an
individual and were loaned to the Company.  The Company must return these shares
to the  individual;  therefore,  the Company will be required to purchase 40,000
shares of Spectrasite Holdings,  Inc. in the public market. The trading price of
these  shares has  ranged  from a high of $28.31  (March  31,  2000) to a low of
$11.06 (January 3, 2000) with a trading price of $21.25 on May 8, 2000.

Year 2000 Efforts

In 1998 and  1999,  the  Company  took  various  steps to  address  the issue of
computer  programs  and  embedded  computer  chips being  unable to  distinguish
between  the year 1900 and the year 2000 (the "Y2K"  issue).  The Company has no
proprietary  operating  system  or  applications  software,  nor  do  any of its
operations use main frame or  mini-computer  systems.  Therefore,  the company's
focus with  respect  to the Y2K issue  was:  (1) its PC  hardware  and  software
purchased from third parties;  and (2) external suppliers and service providers.
While  there is no  assurance  that  associated  problems  may not  arise in the
future,  to date the Company has not experienced any material  problems relating
to the Y2K issue.

Inflation

Because the Company's assets are primarily  liquid,  they are not  significantly
affected by inflation.  The rate of inflation  affects the  Company's  expenses,
such as employee  compensation,  office leasing and communications  costs. These
costs may not readily be  recoverable  in the price of  services  offered by the
Company.  To the extent inflation results in rising interest rates and has other
adverse  effects in the securities  markets and the value of securities  held in
inventory or IEC's  investment  account,  it may adversely  affect the Company's
financial position and results of operations.

                                       13

ITEM 7: FINANCIAL STATEMENTS
(a) Financial Statements

<TABLE>
<S>                                                                                                     <C>

                        Report of Independent Certified Public Accountants                                F-1

          Consolidated Balance Sheets as of December 31, 1998 and 1999                                    F-2

          Consolidated Statements of Operations for the years ended December 31, 1998 and 1999            F-4

          Consolidated Statements of Shareholder's Equity

               for the years ended December 31,  1998 and 1999                                            F-5

          Consolidated Statements of Cash Flows for the years ended December 31, 1998 and 1999            F-6

          Notes to the Consolidated Financial Statements                                                  F-8

</TABLE>


                                       14
<PAGE>
                        Killman, Murrell & Company, P.C.

                          Certified Public Accountants

<TABLE>
<S>                                      <C>                                             <C>

505 N. Big Spring, Suite 603              1931 E. 37th, Suite 7                    14810 Le Grande Drive
   Midland, Texas  79701                  Odessa, Texas 79762                      Addison, Texas 75001
      (915) 686-9381                    (915) 363-0067/550-4910                       (972) 991-9324
    Fax (915) 684-6722                     Fax (915) 363-0376                       Fax (972) 991-9323
</TABLE>




REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


Board of Directors and Stockholders
Institutional Equity Holdings, Inc.
Dallas, Texas

We have audited the  accompanying  consolidated  balance sheets of Institutional
Equity  Holdings,  Inc.  as of  December  31,  1998 and  1999,  and the  related
consolidated statements of operations,  shareholders' equity, and cash flows for
the  years  then  ended.  These  consolidated   financial   statements  are  the
responsibility  of Company's  management.  Our  responsibility  is to express an
opinion on these consolidated financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable  assurance about whether the  consolidated  financial  statements are
free of material  misstatement.  An audit includes  examining,  on a test basis,
evidence  supporting the amounts and disclosures in the  consolidated  financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management  as well as  evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  consolidated  financial  position  of
Institutional  Equity  Holdings,  Inc. as of December 31, 1998 and 1999, and the
consolidated  results  of its  operations  and its cash flows for the years then
ended, in conformity with generally accepted accounting principles.

KILLMAN, MURRELL & COMPANY, P.C.

Dallas, Texas
April 13, 2000

                                       F-1
<PAGE>


                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                           CONSOLIDATED BALANCE SHEETS

                           DECEMBER 31, 1998 AND 1999

                                     ASSETS

<TABLE>
<S>                                                               <C>                             <C>

                                                                   1998                        1999

Current Assets

   Cash                                                          $   118,130                 $  315,904
   Trading Securities, at market                                     466,097                    548,736
   Receivables
       Commissions                                                   479,931                    516,762
       Good Faith Deposits                                           100,000                    150,000
       Other                                                         156,555                     56,623
   Prepaid Expenses                                                   30,469                    301,413

              Total Current Assets                                 1,351,182                  1,889,438

Furniture and Equipment, net
   of accumulated depreciation of $288,675
   and $333,543, respectively                                        119,231                    382,409
Restricted Investment, at market                                           -                  1,304,043
Other Assets                                                          10,095                    259,185

              Total Assets                                        $1,480,508                 $3,835,075
</TABLE>

















                          The accompanying notes are an
            integral part of these consolidated financial statements
                                       F-2
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                           CONSOLIDATED BALANCE SHEETS

                           DECEMBER 31, 1998 AND 1999

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<S>                                                                      <C>                      <C>

                                                                   1998                        1999
Current Liabilities

   Cash Overdraft                                               $    137,533               $     31,649
   Loans Payable                                                          -                     527,170
   Due to Broker                                                      86,586                     96,594
   Securities Sold, not yet purchased                                 11,667                     25,034
   Accounts Payable and Accrued Liabilities                          372,270                  1,106,333
              Total Current Liabilities                              608,056                  1,786,780

Loans Subordinated to Claims of
   General Creditors

       Officers                                                      245,000                         -
       Others                                                        270,000                    150,000
Restricted Investment Loan                                                 -                  1,304,043
Due to Related Party                                                       -                    245,000

              Total Liabilities                                    1,123,056                  3,485,823

Stockholders' Equity

   Undesignated Preferred Stock, par value
      $.01 per share; 3,190,000  shares
      authorized, none outstanding                                         -                          -
   10%Designated  Series A Preferred Stock,
      par value $.01 per share; 1,060,000
      shares authorized,  issued and
      outstanding in 1999                                                  -                     10,600
   10% Designated Series B Preferred Stock,
       par value $.01 per share; 750,000
      shares authorized; 37,500 shares
      issued and outstanding in 1999                                       -                        375
   Common Stock, par value
      $.01 per share; 20,000,000 shares
       authorized; 1,965,000 and
      2,312,000 issued and outstanding, respectively                  19,650                     23,120
   Additional paid-in capital                                        470,052                  3,778,234
   Retained (deficit)                                                      -                 (3,330,827)

                                                                     489,702                    481,502
       Less Treasury Shares, at cost                                (132,250)                 (132,250)

              Total Shareholders' Equity                             357,452                   349,252
              Total Liabilities and
                 Shareholders' Equity                             $1,480,508                 $3,835,075
</TABLE>

                          The accompanying notes are an
            integral part of these consolidated financial statements
                                       F-3


<PAGE>




                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                     YEARS ENDED DECEMBER 31, 1998 AND 1999



<TABLE>
<S>                                                                              <C>                        <C>

                                                                                    1998                      1999

Revenues:
   Commission                                                                          $3,194,876        $  8,573,690
   Gain (Loss) on Firm Securities Accounts                                               883,780            (290,682)
   Underwriting and Syndicate Income                                                     225,264            1,155,840
   Other Income                                                                          181,890              256,119
   Interest Income                                                                         8,970               14,859

       Total Revenue                                                                   4,494,780            9,709,826

Expenses:
   Employee Compensation                                                               2,970,207            8,619,955
   Commissions Paid to Other Broker-Dealers                                              493,754            1,024,590
   Underwriting and Syndicate Expenses                                                     18,448             208,671
   General and Administrative Expenses                                                  1,124,057           1,293,751
   Rents, Telephone and Quotation Expenses                                                415,477           1,036,220
   Interest Expense                                                                      104,098              769,522

       Total Expenses                                                                  5,126,041           12,952,709

(Loss) Before Federal Income Tax                                                        (631,261)         (3,242,883)

Federal Income Tax Expense                                                                     -                    -
Preferred Stock Dividends                                                                       -            (87,944)


           Net (Loss)                                                                  $(631,261)        $(3,330,827)


Weighted Average Number of Common

   Shares Outstanding                                                                   1,942,000           2,028,000

Net (Loss) Per Common Share                                                         $       (.33)     $        (1.64)
</TABLE>






                          The accompanying notes are an
            integral part of these consolidated financial statements
                                       F-4


<PAGE>


                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                 FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1999

<TABLE>
<CAPTION>

                              Preferred Stock    Preferred Stock
                                  Series  A        Series B       Common Stock    Additional    Retained     Treasury      Total
                                  Number of        Number of        Number of       Paid-in      Earnings     Share    Shareholders'
                             Shares   Par Value  Shares Par Value  Shares Par Value Capital    (Deficit)    Purchase     Equity
<S>                           <C>     <C>        <C>       <C>      <C>     <C>       <C>        <C>        <C>         <C>

Balance as of
December 31, 1997             -       $  -          -      $  -      105    $ 1        $71,029     $299,675    $(24,000)  $346,705

   Net  (loss)1998            -          -          -         -        -      -         -          (631,261)      -      (631,261)

Balances as of December 31, 1998,
   as previously reported     -          -          -         -       105     1         71,029     (331,586)    (21,000)  (284,556)

   Termination of Subchapter

   Selection January 1, 1999  -         -           -         -         -     -       (331,586)      331,586        -          -

   Merger with EuroMed, Inc.  -         -                     -    1,964,895   19,649  730,609         -       (108,250)   642,008

Balance as of
December 31, 1998,
 as restated                   -        -            -        -     1,965,000  19,650  470,052         -       (132,250)   357,452

Sale of Series A  Preferred
Stock, net of $216,000
issuance expenses         1,060,000  10,600        -       -         -        -        1,893,400       -          -      1,904,000

   Sale of Series B Preferred
       Stock, net of
       $37,500 of issuance
       expenses               -        -        37,500       375        -        -       37,125        -          -         37,500

   Sale of Common Stock        -       -          -            -      347,000    3,470   343,530       -          -        347,000

   Value of Warrants and Options

       assigned to Brokers       -       -        -            -         -        -       56,220       -          -         56,220

   Value of Warrants Issued

       to Debtholder             -       -        -            -         -        -      571,406          -         -      571,406

   Officers' Subordinated
       Debt Contribution, net of

       trading security assumed -       -        -              -         -       -        125,000          -         -    125,000

   Accrued Compensation

       contributed to capital    -       -        -             -         -        -        281,501         -         -    281,501

   Net (loss) 1999               -        -       -             -          -        -          -       (3,330,827)    - (3,330,827)

Balance as of
December 31, 1999       1,060,000  $10,600  37,500         $375      2,312,000  $23,120  $3,778,234  $(3,330,827) $(132,250)$349,252

</TABLE>

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

                                       F-5


<PAGE>


                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                     YEARS ENDED DECEMBER 31, 1998 AND 1999
<TABLE>
<S>                                                                               <C>                       <C>

                                                                                     1998                  1999
Cash Flows from Operating Activities:
Net (Loss)                                                                         $ (631,261)      $(3,330,827)
Adjustments to Reconcile Net (Loss) to Cash
   Flow from Operations:
       Depreciation and Amortization                                                  34,321            110,981
       Capital Contributed by
          Shareholder/Employee/Officer                                                     -            281,501
       Interest Expense                                                                    -            571,406
       Broker Compensation                                                                 -             56,220
Changes in Operating Assets and Liabilities:
   Trading Securities                                                                604,214           (202,644)
   Accounts Receivables                                                             (159,195)            13,101
   Prepaid Expenses                                                                   (2,847)          (270,944)
   Other Assets                                                                        1,132           (315,203)
   Cash Overdraft                                                                    137,533           (105,884)
   Due to Brokers                                                                   (204,318)            10,008
   Securities Sold, Not Yet Purchased                                                 11,667             13,367
   Accounts Payable and Accrued Liabilities                                         (152,275)           734,063
  Net Cash (Used In) Operating Activities                                           (361,029)        (2,434,855)
Cash Flows from Investing Activities:
   Purchase of Furniture and Equipment                                                     -           (308,041)

   Net Cash (Used In) Investing Activities                                                 -           (308,041)

Cash Flows from Financing Activities:
   Proceeds from Borrowings                                                                -            458,170
   Payments on Borrowings                                                           (165,807)           (51,000)
   Borrowings from Related Party                                                           -            245,000
   Sale of Stock                                                                           -          2,288,500
   Contributed Capital - Merger with
       EuroMed, Inc.                                                                 750,258                  -
   Net Assets Acquired in Merger                                                    (123,507)                 -
   Purchase of Treasury Shares                                                      (108,250)                 -

       Net Cash Provided by Financing Activities                                     352,694          2,940,670

Net Increase (Decrease) in Cash and Cash Equivalents                                  (8,335)           197,774

Cash and Cash Equivalents at the Beginning of the Year                               126,465           118,130

Cash and Cash Equivalents at the End of the Year                                  $  118,130        $   315,904
</TABLE>

                                   (Continued)

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

                                       F-6


<PAGE>


                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (CONTINUED)

                     YEARS ENDED DECEMBER 31, 1998 AND 1999


                                                     1998               1999

Cash Paid During the Year:
   Interest                                       $  104,098     $    170,066
   Income Taxes                                   $     -        $       -

Supplemental Schedule of Noncash  Investing
   and Financing Activities:
       Increase in Restricted Investments         $     -        $ (1,304,043)
       Increase in Restricted Loans                     -           1,304,043
       Decrease in Trading Securities                   -             120,000
       Loans Subordinated to Claims of
           General Creditors-Officers                   -            (245,000)
       Additional Paid-in-Capital                       -             125,000

                                                  $     -        $     -



























                                       F-7


<PAGE>


                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999

NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Swiss  Nassau  Corporation  was  incorporated  on May 17,  1994 in the  state of
Nevada,  United States of America,  with  authorized and issued share capital of
1,000 shares of common stock with no par value (the "Common  Stock") and on June
15,1994,  all  authorized  shares of Swiss Nassau  Corporation  were issued.  On
October 20, 1995, Swiss Nassau Corporation  changed its name into EuroMed,  Inc.
and increased its authorized  shares to 20,000,000 shares of Common Stock with a
new par value of $0.01 per share,  and  5,000,000  preferred  shares  with a par
value of $0.01 per share. On October 20, 1995, EuroMed,  Inc. effected a 150 for
1 stock split of its Common Stock. On April 23, 1999, EuroMed,  Inc. changed its
name to Institutional Equity Holdings, Inc. (the "Company" or "IEH").

In November 1995, the Company began acquiring pharmaceutical companies operating
exclusively  in Europe.  The Company  completed the  acquisitions  using the net
proceeds from the sale of 1,150,000  shares of its common stock (issue price was
$6.50 per  share) in March  1996 and the  issuance  of  2,700,000  shares of its
common stock.  Subsequent to the  acquisitions,  laws relating to the pricing of
pharmaceuticals  in Europe were  changed and as a result the  operations  of the
pharmaceutical companies owned by the Company were severely impacted,  resulting
in significant operating losses. The Company realized  approximately  $1,146,000
in cash and  cancelled  2,700,000  shares of its  common  stock upon sale of its
European subsidiaries in 1997.

The Company had no business activities in the calendar year of 1998, except that
on November 6, 1998, the Company's Board of Directors  approved and executed the
"Agreement and Plan of Reorganization"  by and among the Company,  Institutional
Equity Corporation ("IEC", a wholly owned subsidiary of the Company and formerly
known as Redstone Acquisition Corp.) and Redstone Securities, Inc. ("Redstone"),
a licensed broker and dealer of securities.

Effective  February  16,  1999,  Redstone  was merged  into the newly  organized
subsidiary  IEC. The Company  issued  600,000  shares of its Common Stock to the
three principals of Redstone,  Thomas Laundrie,  Gary Prucell,  and Richard Belz
(collectively  referred to as the "Redstone  Shareholders") and was obligated to
issue an additional  500,000  shares (the  "Restricted  Shares") upon the market
price of the  Company's  Common  Stock  reaching  certain  price  levels  or IEC
reporting certain levels of net income.  Notwithstanding the price levels of the
Common Stock or net income performance  levels, the Restricted Shares fully vest
on February 16, 2002. Redstone has been a registered broker dealer since 1988.

The  Redstone  Shareholders  agreed to  terminate  their  relationship  with the
Company in February 2000 subject to certain compensation  payments, to forgo the
collections of the Company's subordinate notes due the Redstone Shareholders, to
assume an investment  in a certain  security at its book value and to modify the
number of shares of the Company's  common stock from 1,100,000 to 500,000 shares
of fully vested common stock. The Company has a right to repurchase these shares
of its common stock at a price of $2.00 per share as follows:

                                    Number of          Redemption
                                   Shares                Period

                                      100,000     Calendar year 2000
                                      100,000     Calendar year 2001
                                      300,000     On or before February 16, 2002

                                   (Continued)

                                       F-8


<PAGE>


                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999


NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Business (Continued)

The termination of the relationship with the Redstone  Shareholders is reflected
in the consolidated financial statement for the year ended December 31, 1999.

IEH is a holding  company whose only operating  subsidiary is IEC a full service
brokerage  firm engaged in the purchase and sale of  securities  from and to the
public and for its own account and investment  banking  activities.  The Company
operates in one industry segment,  the financial services industry.  At December
31, 1999, IEC employed 124 brokers  registered with the National  Association of
Securities Dealers, Inc. ("NASD").

Principles of Consolidation

IEH is a holding  company whose  wholly-owned  subsidiary,  IEC, is a registered
broker-dealer  in securities  under the  Securities and Exchange Act of 1934, as
amended. IEC renders broker-dealer  services in securities on both an agency and
principal   basis  to  its  customers  who  are  fully   introduced  to  Fiserve
Correspondent  Services, Inc. and First Southwest Company. IEC also acts as lead
or participating  underwriter for  over-the-counter  securities  offerings.  IEC
conducts business  throughout the United States.  IEC is exempt from the reserve
requirements  under SEC Rule  15c8-3(k)  (2) (ii),  since it does not  handle or
carry  customer  securities  and cash.  The  Company  operates  in one  industry
segment, the financial services industry. All significant  intercompany balances
and transactions have been eliminated in the consolidation.

Revenue Recognition

Securities  transactions and related revenue are recorded on a trade date basis.
Manager's  fees,   underwriter's  fees,  and  other  underwriting  revenues  are
recognized at the time the  underwriting  is completed.  Tax shelter  revenue is
recognized at the time individual tax shelter units are sold.

Fair Value of Financial Instruments

The carrying amounts  reflected in the balance sheet for cash, cash equivalents,
notes and other  receivables  and payables  approximate  their  respective  fair
values due to the short  maturities  of these  instruments.  The fair  values of
trading and investing  securities  owned and securities  sold, not yet purchased
are  recorded  primarily  at quoted  prices  for those or  similar  instruments.
Changes in the market value of these  securities are reflected  currently in the
results of operations.

Furniture and Equipment

Depreciation   of  furniture  and   equipment  is  computed   generally  by  the
straight-line  method over their estimated  useful lives of five (5) to ten (10)
years.  Leasehold  improvements are amortized over the lives of their respective
leases of five (5) years.

                                   (Continued)

                                       F-9
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999


NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Accounting for Long-Lived Assets

The  Company  adopted  Statement  of  Financial  Accounting  Standards  No. 121,
"Accounting For The Impairment of Long-Lived Assets and For Long-Lived Assets To
Be Disposed Of". The Company reviews  long-lived  assets,  certain  identifiable
assets  and any  goodwill  related  to  those  assets  for  impairment  whenever
circumstances  and situations  change such that there is an indication  that the
carrying  amounts may not be  recoverable.  At December  31,  1999,  the Company
believes that there has been no impairment of its long-lived assets.

Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect certain  reported amounts and  disclosures.  Accordingly,  actual results
could differ from those estimates.

Taxation

Income taxes are accounted for in accordance with the provisions of Statement of
Financial  Accounting  Standards No. 109 "Accounting for Income Taxes." Deferred
tax assets  and  liabilities  are  recognized  for the  future tax  consequences
attributable to differences  between the financial statement carrying amounts of
existing  assets and liabilities  and their  respective tax bases.  Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recognized or settled.  The effect on tax assets and  liabilities of a change
in tax rates is  recognized  in income in the period that includes the enactment
date.

The Company has recognized  significant losses from its disposal of subsidiaries
and general corporate expenses incurred in the United States. Realization of any
portion  of the  deferred  tax  asset  resulting  from  the net  operating  loss
carryforward  is not  considered  more likely than not. No deferred tax asset or
valuation  allowance has been  estimated  due to the change in ownership,  which
severely restricts the use of the net operating loss  carryforward.  At December
31,  1999,  the Company  has  approximately  $8,600,000  of net  operating  loss
carryforwards  for federal  income tax  purposes,  which will begin to expire in
2011.

Pension and Other Post-Retirement and Post-Employment Plans

In 1999, the Company adopted a deferred contribution profit sharing plan (401(k)
Plan).  This plan allows both the Company and the employees to contribute to the
plan. The Company made no contributions to the plan in 1999.

Redstone  at the time of its  acquisition  had a  deferred  contribution  profit
sharing plan (401(k)  Plan).  The Company made no  contributions  to the plan in
1998 or 1999.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs for the year ended
December 31, 1998 and 1999, were $34,023 and $22,218, respectively.

                                (Continued) F-10
<PAGE>

                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                       (Formerly Known As EuroMed, Inc.)
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1999


NOTE 1:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Cash Equivalents

All  highly  liquid   investments   purchased   with   original   maturities  of
approximately three months or less are considered to be cash equivalents.

(Loss) Per Share

Basic (loss) per common  share has been  calculated  using the weighted  average
number of shares of common stock outstanding during the year. Diluted (loss) per
common share is not  disclosed  because the effect of the exercise of the common
stock warrants and options would be anti-dilutive.

Concentration of Credit Risk

The Company deposits its cash with high credit quality  financial  institutions.
At times such deposits may be in excess of FDIC  insurance  limits.  At December
31, 1999, the cash deposits exceeding FDIC insurance limits were $261,000.

Accounts Receivable and Amount Due Broker

IEC introduces all customer transactions in securities traded on U.S. securities
markets to Fiserve Correspondent  Service, Inc. and First Southwest Company on a
fully-disclosed  basis.  The  agreement  between  IEC and its  clearing  brokers
provide that IEC is obligated to assume any exposure  related to  nonperformance
by customers or  counterparties.  IEC monitors  clearance and  settlement of all
customer transactions on a daily basis.

The exposure to credit risk associated with the  nonperformance of customers and
counterparties  in fulfilling their  contractual  obligations  pursuant to these
securities  transactions  can be directly  impacted by volatile  trading markets
which may impair  the  customer's  or  counterparty's  ability to satisfy  their
obligations  to IEC.  In the event of  nonperformance,  IEC may be  required  to
purchase or sell financial instruments at unfavorable market prices resulting in
a  loss.  Management  does  not  anticipate   nonperformance  by  customers  and
counterparties in the above situations.

NOTE 2: RESTRICTED INVESTMENT

On March 18,1999,  the Company  entered into an agreement with an individual for
the delivery to the Company of a stock certificate representing 66,250 shares of
common stock of Westower  Corporation  (which was  subsequently  converted  into
119,912  shares of  Spectrasite  Holdings,  Inc.).  The  agreement  included the
following terms:

The  individual  will  receive  compensation  equal to five  percent (5%) of the
average  daily  closing  sales price of the common stock on the  American  Stock
Exchange,  calculated for each fiscal quarter. During 1999, the Company incurred
$59,500 in interest expense under the terms of the agreement.

The Company agrees not to transfer or assign the shares without the individual's
prior written consent during the term of the agreement.

                                   (Continued)

                                      F-11
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999


NOTE 2: RESTRICTED INVESTMENT (CONTINUED)

Accounts Receivable and Amount Due Broker

The  Company will issue to the individual a five year stock purchase warrant for
     414,062 shares of common stock of the Company at an exercise price of $2.00
     per share.  The  Company  has the right to call the  warrant if the trading
     price of the Company's common stock has equaled or exceeded $4.00 per share
     for ten consecutive days. See Note 13

Agreement can be terminated upon sixty (60) days' notice by either party.

At December 31, 1999 the  restricted  investment has been pledged by the Company
as security for a $407,170 loan from a brokerage firm.

In February  2000, the Company sold 40,000 shares of the  Spectrasite  Holdings,
Inc. stock for an aggregate value of approximately  $830,000. The proceeds, from
the sale of shares,  were used to repay the $407,170 loan from a brokerage  firm
and to finance  current  operations.  These  shares  will have to be returned to
their owner by the Company,  which will necessitate their purchase in the public
market.  The  trading  price of these  shares  at the  date of  repurchase  will
determine  if a trading  gain or loss is  recognized.  The trading  price of the
shares has  ranged  from a high of $28.31  (March  31,  2000) to a low of $11.06
(January 3,2000). The trading price at April 13, 2000 was $22.00.

NOTE 3: STOCK OPTION PLANS

 Long-Term Incentive Plan

The Company  adopted its 1995  Long-Term  Incentive Plan ("Plan") as of November
18, 1995. An aggregate of 300,000 shares of common stock has been authorized and
reserved for issuance  under the plan pursuant to the exercise of options or the
grant of restricted  stock awards.  The Plan provides for the grant of incentive
stock options,  non-qualified  stock options,  restricted stock awards and stock
appreciation  rights.  All of the  Company's  and  its  subsidiary's  employees,
independent  directors  and advisors  are  eligible to receive  awards under the
plan,  but only  employees of the Company and its  subsidiaries  are eligible to
receive incentive stock options.  The exercise price for incentive stock options
granted  under the Plan may be no less than the fair market  value of the common
stock on the day of the grant.  As of December 31, 1998 and 1999, no grants have
been awarded under this plan.

Brokers Stock Option Plan

The Company  adopted its 1999 Brokers  Stock Option Plan as of December 1, 1999.
An aggregate of 1,000,000  shares of common stock has been reserved for issuance
under the plan  pursuant to the  exercise of options or the grant of  restricted
stock awards. All brokers who have been employed by the firm prior to January 1,
2000, shall be entitled to earn options to purchase a number of shares of common
stock  of  the  Company  equal  to 20%  of  their  annual  gross  production  in
commissions  from the sale of  securities.  The exercise price of the options so
earned shall be 5% over the closing bid price of the  Company's  common stock on
the date of each broker's  employment.  Each option shall be  exercisable  for a
period of three years beginning one year from the date of vesting. Options shall
vest on  January 1 of the year  following  the date of  employment,  and are not
transferable.  At December  31, 1999,  1,254,333  options were earned under this
agreement.

                                      F-12
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999



NOTE 4:  RELATED PARTY TRANSACTIONS

In December  1997,  the Board of  Directors  authorized  the issuance of 100,000
warrants  to  purchase  common  stock of the  Company  to each of the  three (3)
Directors of the Company at a price of $.30. The fair value of the common shares
was $.20 (Bid Price) at the date the warrants  were  authorized;  therefore,  no
expense was recognized in connection  with the warrant issue. As of December 31,
1999, none of these warrants had been exercised.

For the year ended  December  31, 1998,  the three (3)  Directors of the Company
were paid $200,562 for services rendered to the Company.

The Chief  Executive  Officer and other  executive  officers of the Company have
oral agreements regarding employment, tenure and compensation, including bonuses
and stock option  issuance.  For the year ended  December 31, 1999,  the Company
recognized   compensation   expense   applicable  to  these  executive  officers
aggregating  $1,649,917 and they were issued options to purchase  410,000 shares
of the Company's common stock at prices varying from $.50 to $1.00.

Included in the officers' compensation is $281,501 earned by the Chief Executive
Officer, in connection with underwritings. The Chief Executive Officer agreed to
forgive the  $281,501  and such amount is  reflected  as a  contribution  to the
Company's  stockholders'  equity  in  the  accompanying  consolidated  financial
statements for the year ended December 31, 1999.

In 1999 the Chief Executive Officer loaned the Company $100,000 and was repaid.

NOTE 5: LEASES

Future  minimum  payments,  by  year  and  in  the  aggregate,   required  under
non-cancelable  operating  leases with initial or remaining terms of one year or
more consist of the following:

                  Year Ended
                  December 31,

                      2000                                           $   599,671
                      2001                                               590,476
                      2002                                               594,053
                      2003                                               483,835
                      2004                                               299,273
                      Thereafter                                          61,760

                                                                      $2,622,068

Certain of these leases  provide for the payment of taxes and other  expenses by
the  Company.  Rental  expense for the years ended  December  31, 1998 and 1999,
approximated $250,000 and $695,4970, respectively.

                                      F-13
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999


NOTE 6: WARRANTS OWNED

As provided in certain underwriting agreements,  the Company obtains warrants to
purchase  equity  instruments  from  client  companies.  During the  restriction
periods  on  these  warrants,   the  Company   recognizes  no  value.  When  the
restrictions  expire  and the  underlying  securities  become  exercisable,  the
Company marks the warrants to estimated fair value.

In  estimating  fair value of the  warrants,  management  considers  the trading
volume  and  quoted  prices of the  underlying  securities,  the  number of such
securities held by the public,  the remaining  warrant exercise period and other
factors that they believe might effect the value of the warrants.

The following is information with respect to these warrants:

<TABLE>
<S>                              <C>              <C>             <C>                     <C>              <C>

                                                                                                       Fair Value
                                             Granted to                                                  of Retained
        Company                                Unrelated          Granted to                             Warrants
          Name                Received           Parties           Employees           Retained      December 31, 1999

      Rampart Capital

         Group, Inc           40,000             5,000            22,000              13,000              $    -

      Streamedia
         Communications

         Inc.                120,000            45,000            35,000              40,000              $    -

      McGlen Internet

        Group, Inc.          500,000           153,000           220,000             127,000              $    -

</TABLE>

No value has been placed on the warrants retained by the Company.  However,  the
Company  recognized  $206,390 as compensation  expense and fee income related to
the warrants  granted to employees.  Such  compensation  expense was  calculated
using the Black-Scholes  option-pricing model with the following assumptions: no
dividends;  expected volatility of 67.5% for Rampart, 82.5% for Streamedia,  88%
for Glen; risk free interest rate of 6.0% and expected life of 5 years.

NOTE 7: NET CAPITAL REQUIREMENT

IEC is  subject to the net  capital  rule (Rule  15c3-1) of the  Securities  and
Exchange  Commission.  This rule  prohibits IEC from engaging in any  securities
transaction at a time when its "aggregate  indebtedness"  exceeds  fifteen times
its "net  capital" as those terms are defined by the rule. At December 31, 1999,
IEC's  net  capital  and  required  net  capital  were  $256,638  and  $100,000,
respectively, and its ratio of aggregate indebtedness to net capital was 1.21 to
1. The Subsidiariy's absolute minimum net capital is $100,000.

                                      F-14
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999



NOTE 8: TRADING AND INVESMENT SECURITIES

Trading securities and securities sold, not yet purchased,  represent the market
value of securities held long and short by the Company's subsidiary.

The categories of trading securities and their related market values follow:

<TABLE>
<CAPTION>

                                                                           1998                                 1999
                                                         Long              Short                   Long          Short
<S>                                                      <C>              <C>                           <C>       <C>

           Common Stock                              $446,097            $11,667                 $548,736       $25,034
           Corporate Bonds                                  -                  -                   28,100             -
           U.S. Government Bonds                            -                  -                    2,932             -
           Municipal Bonds                                  -                  -                    2,683             -

                                                     $466,097            $11,667                 $548,736       $25,034
</TABLE>

As a securities broker-dealer,  IEC is engaged in various securities trading and
brokerage  activities  as principal.  In the normal course of business,  IEC has
sold  securities  that it does not currently own and will therefore be obligated
to purchase such securities at a future date. This obligation is recorded in the
financial  statements at the market value of the related  securities.  A trading
loss will occur on the  securities  if the market price  increases and a trading
gain will occur if the market price decreases.

Investment  securities  held by IEC which are readily  marketable  are stated at
market value.

NOTE 9: LOANS PAYABLE

The following summarizes the loans payable at December 31, 1999:

                                                                          Amount

         8.8% loan from brokers, secured
                by restricted investment, due
                on demand                                               $407,170

         10% Note payable to an individual,
                unsecured, due November 30,
                1999, plus accrued interest                              120,000

                                                                        $527,170

                                      F-15
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999



NOTE 10: PREFERRED STOCK

The Company has been  authorized  to issue up to  5,000,000  shares of $0.01 par
value  preferred  stock and the Board of Directors is empowered to designate the
series,  dividend rate and if dividends are to be cumulative,  voting rights (in
addition  to those  provided  by law) and  convertibility  into shares of common
stock.  In 1999,  the Board of Directors of the Company  authorized the sales of
the following series of preferred stock:

Series A

         Designated 1,060,000 shares of preferred stock as Series A

         10% cumulative dividend rate, payable quarterly

         Sale price was $2.00 per share in minimum purchase units of 12,500
         shares.

         Convertible into common stock on a one for one basis

         Callable at the option of the Company  after April 22, 2000 into
         common stock at a price of $4.00 per per share

         Each share of preferred stock has ten votes on matters submitted
         to shareholders for voting.

Series B

        Designated 750,000 shares of preferred stock as Series B, of which
        37,500 shares have been sold as of  December  31,  1999  [37,500
        shares  sold  subsequent  to December 31, 1999]

        10% cumulative dividend rate, payable quarterly

        Sales price was $2.00 per share in minimum units of 12,500 shares

        Convertible in to common stock on a one for one basis

        Callable at the option of the Company  after  December 1, 2000 into
        common  stock at a price of $4.00 per share

       Each share of preferred stock has one vote on matters submitted to
       shareholders for voting







                                      F-16
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999


 NOTE 11: SUBORDINATED LOAN
10%  subordinated   loan,   payable  to  E.M.H.   Enterprises,   control  number
10-F-SLA-10396,  due April 30, 2000,  in the amount of $150,000,  unsecured  and
subordinated to claims of general creditors.  The loan is subjected to terms and
conditions  set forth in the  subordinative  agreement  approved by the National
Association of Securities Dealers, Inc.

NOTE 12: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts  payable and accrued  liabilities  consist of the following at December
31, 1998 and 1999:

<TABLE>
<S>                                                                     <C>                        <C>

                                                                        1998               1999

         Accrued Compensation                                         $275,744           $400,000
         Accounts Payable                                               84,526            186,632
         Accrued 401(k)                                                      -             39,401
         Accrued Syndicate and Underwriting Costs                            -            246,875
         Accrued Interest                                               12,000             28,049
         Accrued Preferred Stock Dividends                                   -             87,944
         Other                                                               -            117,432

                                                                      $372,270         $1,106,333
</TABLE>

NOTE 13: STOCK OPTIONS AND WARRANTS

During 1999, the Company  executed  various  employment  agreements with brokers
which gives the brokers the right to  purchase  shares of the  Company's  common
stock in the form of stock  options.  The brokers  have the right to acquire the
number of shares of the Company's  common stock that 20% of the  brokerage  fees
generated by the broker  divided by the strike price will  purchase.  The strike
price of such options is the market value of the  Company's  common stock on the
date the broker signed the employment agreement.

During 1999,  the Company  granted two  employees  the right to acquire  600,000
shares of the  Company's  common stock at the  exercise of $1.03 per share,  the
market value of the Company's common stock on the date of the grant.

During 1999,  the Company  granted  various  brokers the right to acquire 77,250
shares of the Company's common stock at the exercise price of $2.00 per share in
connection with the sale of the Series A Preferred Stock.

                                   (Continued)

                                      F-17
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999


NOTE 13: STOCK OPTIONS AND WARRANTS (CONTINUED)

In connection with the delivery of the Westower  Corporation  (these shares were
subsequently  exchanged for  Spectrasite  Holdings,  Inc.  shares)  common stock
described in Note 2, the Company issued a stock purchase warrant that allows the
holder the right to acquire  414,062 shares of the Company's  common stock at an
exercise  price of $2.00 per share.  The  Company  has  recognized  $571,406  in
interest  expense  with  a  corresponding  credit  to  paid-in  capital,   which
represents  the fair  market  value of the  warrants as of March 18,  1999.  The
warrants  were valued  using the  Black-Scholes  options-pricing  model with the
following  assumption:  no  dividends,  expected  volatility  of 82%,  risk free
interest rate of 6.0% and expected life of 5years.

The number of shares of the Company's  common stock available under the terms of
the above mentioned agreements is as follows:

<TABLE>
<CAPTION>


                                                                   Number of
                                                                   Securities
                                                                   Underlying

                                                Year              Options and
                                                of                  Warrants             Exercise     Expiration
    Grantee                                   Grant                Granted                Price         Date
<S>                                             <C>               <C>                           <C>    <C>

Robert A. Shuey, III Officer                  1997                 100,000                $0.30     December 29, 2002
Joseph C. Crouch Officer                      1999                 200,000          $0.50-$1.00     June 24, 2003
Elbert G. Tindell Officer                     1997                 100,000                $0.30     December 29, 2002
Anthony Vaccaro Officer                       1999                 100,000                $1.00     January 15, 2004
William M. Mosley Officer                     1999                  60,000          $0.50-$1.00     January 1, 2004
Jesse Shelmire Ex Director                    1997                 100,000                $0.30     December 29, 2002
Various Brokers based on
   commissioned sales                         1999               1,234,333          $1.05-$1.85     None
Mike Colaiacovo, Broker                       1999                 300,000                $1.03     None
Manuel Bello, Broker                          1999                 300,000                $1.03     None
Todd Cornelius, Officer                       1999                  50,000                $1.00     January 1, 2004
Various Brokers in connection with
    sale of Series A Preferred stock          1999                  77,500                $2.00     None
S. Roy Jeffrey Warrant Issued                 1999                 414,062                $2.00     March 17, 2004

                                                                 3,035,895

</TABLE>











                                   (Continued)

                                      F-18
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999


NOTE 13: STOCK OPTIONS AND WARRANTS (CONTINUED)

The following  table  summarizes  the activity in stock options and warrants for
the years ending December 31, 1998 and 1999:

<TABLE>
<CAPTION>

                                               1998                                   1999

<S>                                      <C>             <C>              <C>                    <C>

                                                       Weighted                                   Weighted
                                                        Average                                    Average
                                     Underlying         Exercise             Underlying            Exercise
                                       Shares           Price                Shares                Price


Outstanding beginning

   of year                              300,000            $0.30                 300,000              $0.30

Granted                                       -                -               2,735,895               1.32

Outstanding end of

   year                                 300,000            $0.30               3,035,895              $1.22
</TABLE>

The  Company has  elected to follow APB  Opinion  No. 25  "Accounting  for Stock
Issued to Employees"  and related  interpretations  in accounting for its plans.
Accordingly,  $56,220 in compensation expense was recognized in 1999 for options
which were  granted to  employees  on which the option  price was less than fair
market value on the date of grant.  No  compensation  expense is recognized upon
the grant of options where the option price exceeds the fair market value at the
date of grant.  Had  compensation  expense for the Company's  stock options been
determined  based on the fair value of the options at the grant dates consistent
with the  methodology  prescribed  by FAS No. 123,  "Accounting  for stock based
Compensation,"  the  Company's  net  loss and loss per  share  would  have  been
increased to the pro forma amounts indicated below:

Net loss as reported                               $(3,330,827)
Pro forma net loss                                  (4,770,583)

Loss per share as reported                              $(1.64)
Pro forma net loss                                      $(2.35)

The fair value of each option  granted is  estimated  on the date of grant using
the  Black-Scholes  options-pricing  model with the  following  assumptions:  no
dividends,  expected  volatility  of 109%,  risk  free  interest  rate of 6% and
expected life of 36 to 60 months.

The stock based compensation for the year ended December 31, 1999,  reflected in
the above pro forma may not be indicative of such compensation in future periods
as it only reflects options granted in the year December 31, 1999.

                                      F-19
<PAGE>
                       INSTITUTIONAL EQUITY HOLDINGS, INC.
                        (Formerly Known As EuroMed, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           DECEMBER 31, 1998 AND 1999



NOTE 14: LEGAL PROCEEDINGS

Many aspects of the Company's  business involve  substantial risks of liability,
including  exposure under federal and state  securities  laws in connection with
the underwriting and distribution of securities.  The Company does not presently
maintain an errors and  omissions  insurance  policy  insuring it against  these
risks.  In recent years,  there has been an  increasing  incidence of litigation
involving the securities industry, including class actions, which generally seek
rescission and substantial damages. The Company requires its brokerage customers
to agree to  arbitration  in the event of a dispute  between the  customer and a
broker.  The Company is currently a party to arbitrations  and it is the opinion
of  management  that the  outcome  of the  arbitration  will not have a material
adverse effect on the Company's operating results.

In compliance  with an Injunction  and Civil  Contempt Order of January 6, 1999,
Gregory Alan Gaylor, a shareholder of the Company,  signed an irrevocable  proxy
dated January 21, 1999 appointing  Institutional  Equity Holdings,  Inc., as his
sole proxy with  respect to 125,000  shares of  Institutional  Equity  Holdings,
Inc.'s Common Stock.

NOTE 15: QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>

                                    Income (Loss) Before

                                                                Income Taxes and

                                                              Preferred Stock          Net Income            Earnings
                                            Revenues             Dividends             (Loss)               Per Share
<S>                                       <C>                     <C>                    <C>                      <C>

       1998

           December                      $1,173,602                $(194,044)           $(194,044)             $  (.10)
           September                        375,289                 (660,561)            (660,561)                (.34)
           June                           1,411,990                  138,931              138,931                  .07
           March                          1,533,899                   84,413               84,413                  .04


       1999

           December                      $ 3,778,825                (649,841)          (1,210,885)               (.59)
           September                       1,628,350              (1,189,961)          (1,189,961)               (.59)
           June                            2,628,706                (172,634)            (172,634)               (.09)
           March                           1,843,945                (757,347)            (757,347)               (.37)

</TABLE>






                                      F-20
<PAGE>
ITEM  8.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosure.

There has been no Form 8k filed  within 24 months  prior to the date of the most
recent  consolidated  financial  statements  reporting  a change of  accountants
and/or  reporting  disagreements  on  any  matter  of  accounting  principle  or
financial statement disclosure.

                                    PART III

ITEM 9. Directors and Executive Officers of Institutional Equity Holdings, Inc.
<TABLE>
<S>                                                     <C>             <C>

         Name                                          Age                      Position

Elbert G. Tindell                                      52               Chairman of the Board

Robert A. Shuey, III (1                                43               Chief Executive Officer and Director

Joseph C. Crouch                                       55               Executive Vice President

Anthony F. Vaccaro                                     28               Director

William J. Rapaglia                                    52               Director

Todd M. Cornelius                                      28               Vice President

W. Michael Mosley                                      28               Vice President

Michael Vinez                                          47               Chief Financial Officer
</TABLE>

Elbert G.  Tindell,  has served as Chairman  of the Board of the  Company  since
October 15, 1997.  Mr.  Tindell is involved in the  management  and direction of
public and private  Companies in the United  States,  Asia Pacific,  and Europe,
specializing   in  the   re-engineering   of  corporate   environments   through
implementing capital restructuring and planning strategies.  Prior to graduating
from the  University  of North Texas,  Mr.  Tindell  served in the United States
Marine Corps from January 1967 to December 1970.

Robert A. Shuey,  III, is a director,  CEO and a Managing  Director,  Investment
Banking,  the  Company.  He also serves as a member of the Board of Directors of
Autobond Corporation and Transnational Financial Corporation. Mr. Shuey has been
associated with the Company since January 1, 1999.  Prior thereto,  he was Chief
Executive  Officer of Tejas Securities  Group, Inc. since September 1997. He has
been in the investment  banking business for more than the past five years, with
National Securities  Corporation from September 1996, until August 1997; with La
Jolla  Securities  Corporation  from April 1995, until August 1996: with Dillion
Gage Securities  Corporation from January 1994, until April 1995 and Dickinson &
Co.  from  March  1993,  Mr.  Shuey is a  graduate  of  Babson  with a degree in
Economics and Finance.

Joseph  C.  Crouch,  is  Executive  Vice  President  of  IEC  and  President  of
Institutional Equity Corporation.  He is a thirty-year veteran of the securities
industry  with the last  twenty-four  years in management  positions.  Mr. Couch
joined "IEH" and  Institutional  Equity  Corporation on January 1, 1999.  Prior
thereto,  he was managing  director and compliance  officer for Tejas Securities
Group,  Inc.  Prior  positions  include  President  of both RAS  Securities  and
Dickinson & Company.  Mr.  Crouch also has been Senior Vice  President  at E. F.
Hutton,  Rotan Mosley and Rauscher Pierce.  Mr. Couch attended the University of
Oklahoma.




                                       15


<PAGE>
Anthony F. Vaccaro,  Jr., has been a director of the Company  since  February of
1999.  He is also a Vice  President of  investment  banking at IEC. Mr.  Vaccaro
joined the  Company  in  January of 1999.  Prior  thereto,  Mr.  Vaccaro  was an
investment  banking  generalist  specializing  in mergers and  acquisitions  and
initial public offerings for Salomon Smith Barney in New York City. Prior to his
association  with Salomon  Smith Barney,  Mr.  Vaccaro was employed by a private
equity  group  to  specialize  in  bridge  and  mezzanine   financing,   private
placements,  mergers and acquisitions, and initial public offerings in a variety
of industries.  Mr. Vaccaro is a graduate of Texas A&M University  with a degree
in Finance.

William J. Rapaglia has been a director of Institutional  Equity Holdings,  Inc.
since June of 1999.  Mr.  Rapaglia has over 20 years  experience  in real estate
acquisitions,  construction  and  development.  His  experience  has ranged from
construction management, financing,  syndication's,  marketing, and promotion of
projects. Mr. Rapaglia is chairman and CEO of a private management company where
their focus is on  corporate  finance,  corporate  financial  planning,  private
placements,  marketing  and  promotion  of public  and  private  companies.  Mr.
Rapaglia served in the United States Marine Corps from 1965 to 1969 and attended
Arizona State University and the University of Tubingen in West Germany.

Todd M. Cornelius is a Vice President,  Investment Banking, of the Company.  Mr.
Cornelius joined the Company in April of 1999. Prior thereto,  Mr. Cornelius was
a  Financial   Consultant  with  Akzo  Nobel   specializing  in  small  business
expansions,  mergers and general consulting.  Prior to his work with Akzo Nobel,
Mr. Cornelius  performed  underwriting and risk analysis in the energy arena for
American  International  Group.  Mr.  Cornelius  is  a  graduate  of  Texas  A&M
University  with a degree in Chemical  Engineering.  Mr.  Cornelius is currently
matriculating on a Masters of Business  Administration,  with a concentration in
Financing and Accounting, at Southern Methodist University.

William M. Mosley is a Vice President,  Investment Banking, of the Company.  Mr.
Mosley has been  associated  with the  Company  since  January  1,  1999.  Prior
thereto,  he was a Vice President of Tejas Securities  Group, Inc. since January
1998. During this time he was responsible for supervising  syndicate  activities
and all aspects of the underwriting process. Previously, Mr. Mosley was employed
by Stone Media  Corporation  as a Senior  Analyst from  November 1996 to January
1998. Mr. Mosley is a graduate of Southern Methodist University with a degree in
Finance.

Michael E. Vinez joined the company in February 2000, as Chief Financial Officer
(CFO").  Mr. Vinez  previous  work  experience  includes  over twelve (12) years
public accounting experience and eleven (11) years in the commercial real estate
industry.  He has  served as CFO for two real  estate  development  firms and as
controller for a real estate  management  company.  Mr. Vinez graduated from the
University  of Texas at  Arlington  with a BBA. He is a Texas  Certified  Public
Accountant and holds a Texas real estate brokers license.

Meetings and Committees of the Board of Directors
The business of the Company is under the  direction  of the board of  directors.
The board of  directors'  meets on matters  requiring  approval  of the board of
directors.  It also holds  special  meetings when an important  matter  requires
action  by the  board of  directors  between  scheduled  meetings.  The board of
directors held no formal  meetings and acted by unanimous  written consent eight
(8) times during 1999.

ITEM 10. EXECUTIVE COMPENSATION.

Summary of Cash and Certain Other Compensation

The following  table sets forth,  for the fiscal years ending  December 31, 1999
and 1998, certain information regarding the compensation earned by the Company's
Chief  Executive  Officer  and each of the  Company's  most  highly  compensated
executive  officers  whose  aggregate  annual  salary and bonus for fiscal  1999
exceeded  $100,000,  with  respect to services  rendered by such  persons to the
Company.  The  following  table also includes  individuals  who have resigned or
terminated  employment during the fiscal year 1999 who would otherwise have been
included in such table on the basis of salary and bonus for the fiscal year:

                                       16
<PAGE>
                    Management Compensation and Transactions

<TABLE>
<CAPTION>

Summary Compensation Table


                                                                                              Long-Term Compensation
                                                       Annual Compensation                  Award
                                                                                           Securities
                                                                                          Underlying              All
                                                    Bonus and        Other                   Options/            Other (3)
        Name/Title          Year      Salary      Commissions     Compensation (2)           SARs(#)            Compensation
<S>                               <C>    <C>             <C>               <C>                     <C>              <C>

Robert A. Shuey, III        1999           -         $318,500            $36,548              96,167           $243,882
President  and              1998      46,350                -                  -                   -                  -
Chief Executive
Officer (4)

Anthony F. Vaccaro          1999      74,359           40,000              5,218              48,083            121,940
Director and Secretary      1998           -                -                  -                   -                  -

Richard Belz (1)            1999     159,143                -                  -                   -                  -
Director                    1998      86,467                -                  -                   -                  -

Joseph C. Crouch            1999     109,077                -              5,302                   -                  -
Vice President              1998           -                -                  -                   -                  -
</TABLE>

(1) Mr. Belz resigned as a director effective February 28, 2000.

(2) This represents non accountable  expense  reimbursements  of $30,000 for Mr.
Shuey and payments  made for group  medical and life  insurance in the amount of
$6,548 for Mr. Shuey , $5,302 to Mr. Crouch, and $5,218 for Mr. Vaccaro in 1999.

(3) The Company  obtains  warrants to purchase  equity  instruments  from client
companies.  These  amounts  represent the fair value of the warrants to purchase
equity  instruments in client  companies that the Company  relinquished to these
executives. The fair value was calculated using the Black-Scholes option-pricing
model.

(4) This table does not include  $281,501 of  compensation  earned by Mr. Shuey,
which he agreed to forgive.


Section 16 Requirements

Section 16(a) of the Exchange Act, requires the Company's officers and directors
and persons who own more than 10% of a registered  class of the Company's equity
securities,  to file  initial  reports of  ownership  and  reports of changes in
ownership with the Securities and Exchange  Commission (the "SEC"). Such persons
are required by SEC regulation to furnish the Company with copies of all Section
16(a) forms they file.

Based  solely on its  review of the  copies of such  forms  received  by it with
respect  to fiscal  1999,  or written  representations  from  certain  reporting
persons,  the Company  believes that all filing  requirements  applicable to its
officers,  directors and persons who own more that 10% of a registered  class of
the Company's equity securities have been complied with.

                                      17


<PAGE>
ITEM 11. Security Ownership of Certain Beneficial Owners and Management.

                Principal Stockholders and Management Ownership.

<TABLE>
<CAPTION>

                                       Amount and

                                        Nature                                      Percent
                                      of Beneficial                                   of
Name of Beneficial Owner              Ownership                                     Class
<S>                                       <C>               <C>                       <C>

Robert A. Shuey, III
5910 North Central Expressway, Suite 1480
Dallas, Texas  75206                       450,000           (1)                       8.45%

S. Roy Jeffery
17886-55th Avenue
Surrey, B.C., V3S6C8                      414,062            (2)                       7.78%

Thomas Laundrie
101 Fairchild Avenue
Plainview, New York 11803                 196,334           (3)                       3.69%

Gary Purcell
101 Fairchild Avenue
Plainview, New York 11803                  196,334           (3)                       3.69%

Richard Belz
101 Fairchild Avenue
Plainview, New York 11803                  116,333           (3)                       2.18%

Joseph C. Crouch
101 Fairchild Avenue
Plainview, New York 11803                 200,000           (4)                       3.76%

Elbert G. Tindell
806 S. St. Paul
Dallas, Texas 75202                       175,000            (1)                       3.29%

Anthony F. Vaccaro
5910 North Central Expressway, Suite 1480
Dallas, Texas  75206                      100,000           (5)                       1.88%

William Rapaglia
5910 North Central Expressway, Suite 1480
Dallas, Texas  75206                      58,000                                      1.09%

William M. Mosley
5910 North Central Expressway, Suite 1480
Dallas, Texas  75206                      .67,000            (6)                       1.26%

Todd M. Cornelius
5910 North Central Expressway, Suite 1480
Dallas, Texas  75206                       52,500                                       .99%

All officers and directors as a
group (7 persons) (7)(8)                 1,611,501                                    30.26%
</TABLE>

                                          18
<PAGE>
(1) Includes  warrants to purchase  100,000  shares of common  stock  granted on
December 29, 1997 exercisable immediately at $0.30.

(2) Represents options to purchase 414,062 shares at $2.00 per share until March
of 2004.

(3)   Company has option to purchase these shares for $2.00 per share.

(4) Represents options to purchase 100,000 shares of Common Stock at an exercise
price of $0.50 per share  granted  on June 28,  1999.  Mr.  Crouch  was  granted
options to purchase an additional  100,000 shares of Common Stock at an exercise
price of $1.00 per share on July 24,  1998.  Over a period of three years 33,333
options vest on June 26, and 33,333  options vest on July 24, with the condition
that he is still  employed by IEH. As of December 31, 1999,  33,333 options have
vested with a purchase price of $0.05 per share,  and 33,333 options have vested
with an exercise price $1.00 per share.

(5)  Includes  options to purchase  100,000  shares of Common  Stock  granted on
January 15, 1999, exercisable immediately at $1.00 per share.

(6)  Includes  options to  purchase  50,000  shares of Common  Stock  granted on
January 1, 1999, exercisable immediately at $0.50 per share.

(7)   This does not accurately represent the voting rights of management.

(8) Does  not  include  the  right  to vote  125,000  shares  (2.07%  of  shares
outstanding)  granted to the Board of Directors by a federal  judge.  See "Legal
Matters."

Limitations on Directors' Liability

The Company's  Restated  Articles of Incorporation  provide that, to the fullest
extent  permitted  by Nevada law, no director  shall be liable to the Company or
its  stockholders  for  monetary  damages  for  breach  of  fiduciary  duty as a
director.  By virtue of these  provisions,  a  director  of the  Company  is not
personally liable for monetary damages for a breach of such director's fiduciary
duty except for  liability  for (i) breach of the duty of loyalty to the Company
or to its stockholders, (ii) acts or omissions not in good faith or that involve
intentional  misconduct or a knowing  violation of law, (iii) dividends or stock
repurchases  or  redemption's   that  are  unlawful  under  the  Nevada  General
Corporation  Law  ("NGCL")  and (iv) any  transaction  from which such  director
receives an improper  personal  benefit.  In addition,  the  Company's  Restated
Articles of  Incorporation  provide that if the NGCL is amended to authorize the
further  elimination  of  limitation  of the  liability of a director,  then the
liability of the directors  will be eliminated or limited to the fullest  extent
permitted by the NGCL, as amended.

ITEM 12. Certain Relationships and Related Transactions

During 1999, the Company formed Micro Capital  Group,  L.L.C.  (MICRO) a limited
liability  company.  MICRO was  formed to  engage  in  opportunistic  investment
situations.  MICRO is governed under the terms of an operating  agreement and is
managed by a Board of  Managers,  consisting  of Robert A. Shuey III and Anthony
Vaccaro who are executive officers of the Company. During 1999, MICRO loaned the
Company $245,000 which balance was outstanding at December 31, 1999.

Mr.  Robert A. Shuey III,  the Chief  Executive  Officer of the  Company  has an
agreement  with the  Company,  whereby,  Mr.  Shuey is  entitled  to  receive as
compensation 60% of the net underwriting  fees generated by the Company.  During
1999,  Mr.  Shuey  was  entitled  to  receive  $540,000  under the terms of this
agreement in addition to his regular salary and other compensation. However, Mr.
Shuey forgave his right to receive  $281,501 under this  agreement.  Such amount
has  been  shown  as  compensation  expense  in  the  accompanying  consolidated
financial statements with a corresponding credit to additional paid-in capital.

                                      19
<PAGE>

                                     PART IV

ITEM 13. Exhibits, Financial Statements Schedules, and Reports on Form 8-K

a. Financial Statements:
See table of Contents to Financial Statements. Page F-1 filed herewith.
b. Reports on Form 8-K
c. Exhibit 5
<TABLE>
<S>                         <C>

Number                     Description of Exhibit

2.1                        Agreement and Plan of Reorganization dated November 6, 1998 by and among EuroMed, Inc., Redstone
                           Acquisition Corp. And Securities, Inc.*
3.1                        Articles of Incorporation (1)
3.2                        By laws of the Company (1)
3.3                        Certificate of name change**
4.1                        Specimen of Series A Common Stock Certificate (1)
10.1                       Consulting, Management and Noncompetition Agreement, dated as of July 5, 1996, by and between
                             Purchaser and Docts (3)

10.2                       Consulting, Management and Noncompetition Agreement, dated as of July 5, 1996, by and between
                          Purchaser and Roozekrans (3)

10.3                       Consulting, Management and Noncompetition Agreement, dated as of July 5, 1996, by and between
                            Purchaser and Hinnen (3)
10.4                       Plainview  Lease rider**
10.5                       Lynbrook Lease**
10.6                       Newark Lease**
10.7                       Dallas Lease**

16.1                       Letter of the Change of Certified Accountants (2)
21.1                       Subsidiaries of the Registrant as revised*
23.1                       Consent of Killman Murrell & Company, P.C., Certified Public Accountants*
27.1                       Financial Data Schedule *
</TABLE>

*       Previously filed
**        filed herein

                                   Signatures

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 signs on its
behalf by the undersigned, thereunto duly authorized.

                                         Institutional Equity Holdings, Inc.

Dated: May 19, 2000                       By: /s/Robert A. Shuey, III
                                         Chief Executive Officer

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  this  report has been  signed  below by the  following  persons on
behalf of the Registrant and in the capacities and on the dates indicated.

<TABLE>
<S>                                                          <C>                                  <C>

/s/ Elbert G. Tindell                                                                            May 9, 2000
Elbert G. Tindell                                            Chairman of the Board

/s/ Robert A. Shuey, III                                     Chief Executive Officer,            May 9, 2000
Robert A. Shuey, III                                         and Director

/s/Michael E.Vinez                                           Chief Financial Officer             May 9, 2000
Michael E.Vinez
</TABLE>

                                       20