----

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|  NEVADA                                                              |  86-1024816                          |
|---------------------------------------------------------------------------|-------------------------------------------|
|  (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

----

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| Large      accelerated filer |  ̈  | Accelerated      filer          |  ̈  |
|------------------------------|--------------|--------------------------------------|--------------|
| Non-accelerated      filer   |  ̈  | Smaller      reporting company  | x       |

----

|   TABLE OF      CONTENTS |
|------------------------------------|
|                               |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   | Page |
| Part      I                        | Financial      Information | 3 |
|                               |   |   |   |   |   |   |   |   |
| Item      1.                       | Financial      Statements: | 3 |
|                               |   |   |   |   |   |   |   |   |
|                               | Condensed      Balance Sheets March      31, 2008 (unaudited) and December 31, 2007 | 3 |
|                               |   |   |
|                               | Unaudited      Condensed Statements of Operations for the three      months ended March 31, 2008 and 2007, and cumulative from      inception on July 16, 1998 through March 31,      2008 | 4 |
|                               |   |   |
|                               | Unaudited      Condensed Statements of Cash Flows for the three      months ended March 31, 2008 and 2007, and cumulative from      inception on July 16, 1998 through March 31,      2008 | 5 |
|                               |   |   |
|                               | Statement      of Stockholders' Deficit for the period from July      16, 1998 to March 31, 2008 (unaudited) | 6 |
|                               |   |   |
|                               | Notes      to Financial Statements (unaudited) | 7 |
|                               |   |   |
| Item      2.                       | Management's      Discussion and Analysis of Financial Condition and Results of      Operations | 8 |
|                               |   |   |
| Item      3.                       | Quantitative      and Qualitative Disclosures About Market Risk | 8 |
|                               |   |   |
| Item      4.                       |  Controls      and Procedures | 8 |
|                               |   |   |
| Part      II                       | Other      Information | 9 |
|                               |   |   |
| Item      1.                       | Legal      Proceedings | 9 |
|                               |   |   |
| Item      1A.                      | Risk      Factors | 9 |
|                               |   |   |
| Item      2.                       | Unregistered      Sales of Equity Securities and Use of Proceeds | 9 |
|                               |   |   |
| Item      3.                       | Default      Upon Senior Securities | 9 |
|                               |   |   |
| Item      4.                       | Submission      of Matters to a Vote of Security Holders | 9 |
|                               |   |   |
| Item      5.                       | Other      Information | 10 |
|                               |   |   |
| Item      6.                       | Exhibits | 10 |
|                               |   |   |
|                               | Signatures | 10 |
|                               |   |   |

----

| SHELBY      GROUP, INC.                                                                                 |
|---------------------------------------------------------------------------------------------------------|
| (A      DEVELOPMENT STAGE ENTERPRISE)                                                                   |
| CONDENSED      BALANCE SHEETS                                                                           |
|                                                                                                    |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |
|                                                                                                    |   | March      31, |   |   | December      31, |   |
|                                                                                                    |   | 2008 |   |   | 2007 |   |
|                                                                                                    |   | (Unaudited) |   |   |   |   |
| ASSETS                                                                                                  |
|                                                                                                    |   |   |   |   |   |   |
|  CURRENT      ASSETS                                                                               |   | $ | - |   |   | $ | - |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' DEFICIT                                                              |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|        Accounts      payable, related parties                        |   | $ | 49,379 |   |   | $ | 47,570 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|        Total      Current Liabilities                                |   |   | 49,379 |   |   |   | 47,570 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      DEFICIT                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Common      stock, par value $.001, 25,000,000 shares authorized, 1,000,000      issued and outstanding |   |   | 1,000 |   |   |   | 1,000 |   |
| Paid      in capital                                                                                    |   |   | 1,800 |   |   |   | 1,800 |   |
|  Accumulated      deficit during the development stage                                             |   |   | (52,179 | ) |   |   | (50,370 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Total      Stockholders' accumulated Deficit                                                            |   |   | (49,379 | ) |   |   | (47,570 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Total      Liabilities and Stockholders' accumulated Deficit                                            |   | $ | - |   |   | $ | - |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| SEE      ACCOMPANYING NOTES TO FINANCIALSTATEMENTS                                                      |

----

| SHELBY      GROUP, INC.                             |   |
|-----------------------------------------------------|--------|
| (A      DEVELOPMENT STAGE ENTERPRISE)               |   |
| CONDENSED      STATEMENTS OF OPERATIONS             |   |
| (UNAUDITED)                                         |   |
|                                                |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   | Cumulative |   |
|                                                |   |   |   |   |   |   |   | from |   |
|                                                |   |   |   |   |   |   |   | July      16, |   |
|                                                |   |   |   |   |   |   |   | 1998 |   |
|                                                |   | For      The Three Months Ended |   |   | (Inception) |   |
|                                                |   | March      31, |   |   | to |   |
|                                                |   | 2008 |   |   | 2007 |   |   | March      31, 2008 |   |
|                                                |   |   |   |   |   |   |   |   |   |
| REVENUES                                            |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    General      and administrative   |   |   | 1,809 |   |   |   | 1,729 |   |   |   | 52,179 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total      expenses               |   |   | 1,809 |   |   |   | 1,729 |   |   |   | 52,179 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      (LOSS)                                     |   | $ | (1,809 | ) |   | $ | (1,729 | ) |   | $ | (52,179 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      (LOSS) PER SHARE                           |   |   | * |   |   |   | * |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF                     |   |   |   |   |   |   |   |   |   |   |   |   |
|   COMMON      SHARES OUTSTANDING          |   |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| *      less than $ (0.01) per share                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| SEE      ACCOMPANYING NOTES TO FINANCIAL STATEMENTS |   |

----

| SHELBY      GROUP, INC.                                                                       |
|-----------------------------------------------------------------------------------------------|
| (A      DEVELOPMENT STAGE ENTERPRISE)                                                         |
| CONDENSED      STATEMENTS OF CASH FLOWS                                                       |
| (UNAUDITED)                                                                                   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   | Cumulative |   |
|                                                                                          |   |   |   |   |   |   |   | from |   |
|                                                                                          |   |   |   |   |   |   |   | July      16, |   |
|                                                                                          |   |   |   |   |   |   |   | 1998 |   |
|                                                                                          |   | For      The Three Months Ended |   |   | (Inception) |   |
|                                                                                          |   | March      31, |   |   | to |   |
|                                                                                          |   | 2008 |   |   | 2007 |   |   | March      31, 2008 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                     |   |   |   |   |   |   |   |   |   |
|          Net      (loss) from operations         |   | $ | (1,809 | ) |   | $ | (1,729 | ) |   | $ | (52,179 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      CASH (USED BY) OPERATING ACTIVITIES                                                  |   |   | (1,809 | ) |   |   | (1,729 | ) |   |   | (52,179 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|          Accounts      payable, related parties  |   |   | 1,809 |   |   |   | 1,729 |   |   |   | 49,379 |   |
|          Proceeds      from sale of common stock |   |   | - |   |   |   | - |   |   |   | 2,800 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                                |   |   | 1,809 |   |   |   | 1,729 |   |   |   | 52,179 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCREASE IN CASH                                                                     |   |   | 0 |   |   |   | 0 |   |   |   | - |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH,      BEGINNING OF PERIOD                                                                |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH,      END OF PERIOD                                                                      |   | $ | 0 |   |   | $ | 0 |   |   | $ | - |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      INFORMATION                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|     Taxes      paid                                                       |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|     Interest      paid                                                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      NONCASH INFORMATION                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |
|                                                                                          |
|                                                                                          |
|                                                                                          |
|                                                                                          |
|                                                                                          |
| SEE      ACCOMPANYING NOTES TO FINANCIALSTATEMENTS                                            |

----

| SHELBY      GROUP, INC.                            |   |
|----------------------------------------------------|--------|
| (A      DEVELOPMENT STAGE ENTERPRISE)              |   |
| STATEMENT      OF STOCKHOLDERS' DEFICIT            |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |  Deficit |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   | During      the |   |   |   |   |
|                                               |   | Common      Stock |   |   | Paid-in |   |   | Development |   |   |   |   |
|                                               |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Total |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      at inception                        |   |   | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| July      16, 1998:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from sale of common                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   stock      at $.01 per share           |   |   | 200,000 |   |   |   | 200 |   |   |   | 1,800 |   |   |   |   |   |   |   | 2,000 |   |
| Proceeds      from sale of common                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   stock      at par value $.001          |   |   | 800,000 |   |   |   | 800 |   |   |   |   |   |   |   |   |   |   |   | 800 |   |
|   Net      (loss) for the period         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,385 | ) |   |   | (2,385 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 1998                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (2,385 | ) |   |   | 415 |   |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,985 | ) |   |   | (2,985 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 1999                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (5,370 | ) |   |   | (2,570 | ) |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,985 | ) |   |   | (2,985 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2000                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (8,355 | ) |   |   | (5,555 | ) |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (5,685 | ) |   |   | (5,685 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2001                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (14,040 | ) |   |   | (11,240 | ) |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4,335 | ) |   |   | (4,335 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2002                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (18,375 | ) |   |   | (15,575 | ) |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4,358 | ) |   |   | (4,358 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2003                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (22,733 | ) |   |   | (19,933 | ) |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,605 | ) |   |   | (6,605 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2004                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (29,338 | ) |   |   | (26,538 | ) |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,590 | ) |   |   | (6,590 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2005                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (35,928 | ) |   |   | (33,128 | ) |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,736 | ) |   |   | (6,736 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2006                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (42,664 | ) |   |   | (39,864 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (7,706 | ) |   |   | (7,706 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      December 31, 2007                   |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 1,800 |   |   |   | (50,370 | ) |   |   | (47,570 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net      (loss) for the year           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,809 | ) |   |   | (1,809 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances,      March 31, 2008 (unaudited)          |   |   | 1,000,000 |   |   | $ | 1,000 |   |   | $ | 1,800 |   |   | $ | (52,179 | ) |   | $ | (49,379 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SEE      ACCOMPANYING NOTES TO FINANCIALSTATEMENTS |

----

----

----

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|  Exhibit # |  Description                                                                                                                                                                             |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1            | Certificate      of CEO as Required by Rule 13a-14(a)/15d-14                                                                                                                                  |
| 31.2            | Certificate      of CFO as Required by Rule 13a-14(a)/15d-14                                                                                                                                  |
| 32.1            | Certificate      of CEO & CFO as Required by Rule Rule 13a-14(b) and Rule 15d-14(b) (17      CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the      United States Code |

|                          | SHELBY      GROUP, INC.(Registrant) |                                          |
|-------------------------------|-------------------------------------|-----------------------------------------------|
|                          |                                |                                          |   |
| Date:      September 18, 2008 | By:                                 | /s/ Kevin Ericksteen                     |   |
|                          |                                | Name:      Kevin Ericksteen              |   |
|                          |                                | Title:      President      and Director  |   |
|                          |                                |                                          |   |

----