FORM 1O-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

For Quarter Ended:                          March 31, 1997

Commission File Number:                     0-19505

                        NATIONAL ADVERTLSING GROUP, INC.
             -----------------------------------------------------
             (exact name of registrant as specified in its charter)

         FLORIDA                                          65-274107
         -------                                          ---------
(State or other jurisdiction of                     (IRS Employer I.D. No.)
Incorporation of organization)

                  P.O. BOX 490914. KEY BISCAYNE, FLORIDA 33149
                  --------------------------------------------
                    (Address of principal executive offices)

                                 (305) 373-3322)
              (Registrant's telephone number, including area code)

                ------------------------------------------------
   (former name, address and FORMER fiscal year, if changed from last report)

         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 and Exchange Act
of 1934 during the preceding 12 months (or for such short 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

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.

As of December 31, 1996 there were 10,000,000 shares of Common Stock outstanding
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                         PART I - FINANCIAL INFORMATLON

ITEM 1.            FINANCIAL STATEMENTS.

                   See financial statements for the three month period ended
                   September 30, 1996, (unaudited), attached as an exhibit.

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

                   The Registrant has not, as of the end of the nine month
                   period ended March 31, 1997, commenced active business
                   operations. As of March 31, 1997 the Registrant had total
                   assets of $0 which consists of Total Stockholders' Equity.

                   The Registrant has no reasonable basis for comparison with
                   respect to its quarterly financial results in that the
                   Company has not yet commenced its business operations.

                           PART II - OTHER INFORMATION

ITEM 1-5.          NOT APPLICABLE

ITEM 6.            EXHIBITS.

                   Financial Statements (unaudited) of National Advertising
                   Group, Inc. for the nine month period ended March 31, 1997

<PAGE>


                         NATIONAL ADVERTISING GROUP, INC
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
           MARCH 31, 1997 (UNAUDITED) AND DECEMBER 31, 1996 (AUDITED)

                                                      UNAUDITED        AUDITED
                                                      03/31/97        12/31/96

                                      ASSET

Cash                                                    $ -  0  -      $ -  0  -
Other Asset:
         Organizational  Costs                              70             70
         Accumulated Amortization                           70            (70)

Total Other Asset                                         
                                                             0              0
Total Asset                                                  0              0
                                                      ---------      --------


                              SHAREHOLDERS' EQUITY

Liabilities &
Shareholders' Equity:
Accrued Expenses:                                                      $1,000
                                                                       ------
Common Stock, par value $0.001 per share;
          10,000,000 shares authorized,
          issued and outstanding-10,000,000           $ 9,403         $ 9,403
Additional Paid-In Capital                              6,690           6,690
Preferred Stock, par value $.10 per
share; 1,000,000 shares authorized,
no shares issued and outstanding                          - 0 -           - 0 -
Deficit accumulated during the
development stage                                     (16,093)        (17,090)

Total Shareholders' Equity                                  0          (1,000)
                                                      -------         -------
      
           See Accompanying Notes to Financial Statements

                                       F-I


<PAGE>


                        NATIONAL ADVERTISING GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
                                   (UNAUDITED)

                                                 1997                1996
                                               ---------------------------


Revenues                                       $1,000             $   - 0  -

Total Revenues                                 $1,000             $   - 0  -

Expenses:
          Accounting fees                      $1,000
          Amortization                         $    0             $     3

Total Expenses                                 $1,000             $     3


Net Income (Loss)                              $    0             $  (  3)
                                               ---------------------------


                 See Accompanying Notes to Financial Statements

                                       F-2


<PAGE>


                        NATIONAL ADVERTISING GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                  STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
                                  (UNAUDITED)

                                                       1997              1996

Shareholders' Equity:
         Beginning of year                             $ 0              $  10

Additions                                              $ 0              $   0

Deductions
         Net loss for the six months
         ended December 31, 1996
         deficit accumulated during
         development stage                             $  0             $  (3)

Ending balance as of March 31, 1997                    $  0             $   7
                                                       ----------------------


                 See Accompanying Notes to Financial Statements

                                       F-3
<PAGE>


                        NATIONAL ADVERTISING GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF CASH FLOW
                   THREE MONTHS ENDED MARCH 31, 1997 AND 1996

                                                                 1997       1996
CASH FLOW FROM OPERATING ACTIVITIES

         Net loss                                              $    0      $   3
         Adjustment to reconcile net loss to
            Net cash used by operating activities:
                Amortization                                   $    0      $   3

                Net cash used by operating activities          $1,000      $   0

CASH FLOW FROM INVESTING ACTIVITIES                            $    0      $   0

CASH FLOW FROM FINANCING ACTIVITIES                            $1,000      $   0

NET INCREASE (DECREASE) IN CASH                                $    0      $   0

Cash - Beginning of Period                                     $    0      $   0

Cash - End of Period                                           $    0      $   0




                 See Accompanying Notes to Financial Statements

                                       F-4
<PAGE>

                        NATIONAL ADVERTISING GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         BUSINESS ACTIVITY

National Advertising Group, Inc. (the Company) was organized under the laws of
the State of Florida on July 25, 1991. The Company is a development stage entity
which has not yet commenced business operations. The Company intends to acquire
an operating entity, however, it has not yet targeted an acquisition.

         ORGANIZATIONAL COSTS

Organizational costs consist of expenditures incurred in the formation of the
company. These costs are being amortized ratably over a period of sixty months.

NOTE 2 - In the opinion of management the accompanying unaudited financial
statements contain all adjustments necessary to present fairly National
Advertising Group, Inc.'s financial position as of March 31, 1997 and the
results of its operations, changes in the shareholders' equity and cash flows
for the three months then ended.

NOTE 3 - On March 15, 1995, the Company issued 8,380,000 common shares in
exchange for services rendered to the Company by its President, to Florida
Atlantic Group, Inc. The President of the Company controls Florida Atlantic
Group, Inc. and cash consideration in the amount of $8,380.00.

NOTE 4 - On April 10, 1997, the Company reversed split its outstanding shares of
common stock 1 for 10, thereby reducing the number of shares outstanding to
1,000,000.

NOTE 5 - On April 10, 1997, the Company issued 9,000,000 shares of its common
stock to Florida Atlantic Group, Inc. for services, bringing the number of
shares outstanding to 10,000,000.

                                       F-5
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                                   SIGNATURES

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

                                    Registrant:

                                    NATIONAL ADVERTlSING GROUP, INC.

                                      By:/S/ ANGEL L. LORIE, JR.
                                         ------------------------------
                                             Angel L. Lorie, Jr..
                                             President

Date:    May 16, 1997

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                                 EXHIBIT INDEX

EXHIBIT      DESCRIPTION
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27           Financial Data Schedule