**SHELBY          GROUP, INC.**

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

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|  SHELBY                      GROUP, INC.                                  |
|--------------------------------------------------------------------------------|
| **(A                      DEVELOPMENT STAGE                      ENTERPRISE)** |

|   TABLE                        OF CONTENTS |
|------------------------------------------------------|
|                                                 |   |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   | Page |
| Part                        I                        | Financial                        Information | 3 |
|                                                 |   |   |   |   |   |   |   |   |
| Item                        1.                       | Financial                        Statements: | 3 |
|                                                 |   |   |   |   |   |   |   |   |
|                                                 | Condensed                        Balance Sheets March 31, 2006 (unaudited) and December 31,                        2005 |  3 |
|                                                 |   |   |
|                                                 | Unaudited                        Condensed Statements of Operations for the three months ended                        March 31,                        2006 and 2005, and cumulative from inception on December                        31, 1998 through                        March 31, 2006 |  4 |
|                                                 |   |   |
|                                                 | Unaudited                        Condensed Statements of Cash Flows for the three months ended                        March 31,                        2006 and 2005, and cumulative from inception on December                        31, 1998 through                        March 31, 2006 |  5 |
|                                                 |   |   |
|                                                 | Statement                        of Stockholders' equity for the period from December 31,                        1998 to March 31,                        2006 (unaudited) |  6 |
|                                                 |   |   |
|                                                 |  Notes                      to Financial Statements (unaudited) |  7 |
|                                                 |   |   |
| Item                        2.                       |  Plan                      of operation |  7 |
|                                                 |   |   |
|  Part                      II                   |  Other                      Information |  7 |
|                                                 |   |   |
|  Item                      1.                   |  Legal                      Proceedings |  7 |
|                                                 |   |   |
|  Item                      2.                   |  Changes                      in Securities |  7 |
|                                                 |   |   |
|  Item                      6.                   |  Exhibits                      and Reports on Form 8-K |  7 |
|                                                 |   |   |
|                                                 |  Signatures |  7 |
|                                                 |   |   |
|                                                 |  Certifications |  8 |

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| **SHELBY                        GROUP, INC.**                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(A                      DEVELOPMENT STAGE ENTERPRISE)**                                                                                            |
| **CONDENSED                      BALANCE SHEETS**                                                                                                    |
|                                                                                                                                                 |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   | March                      31,  |   |   | December                      31, |   |
|                                                                                                                                                 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                                                                 |   |   | (unaudited)  |   |   |   |   |
| **ASSETS**                                                                                                                                           |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
| CURRENT                      ASSETS                                                                                                                  |   | $ | - |   | $ | - |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
| **LIABILITIES                      AND STOCKHOLDERS' EQUITY (DEFICIT)**                                                                              |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
| CURRENT                      LIABILITIES                                                                                                             |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|     Accounts                      payable, Officers                                                                              |   | $ | 35,816 |   | $ | 33,128 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|     Total                      Current Liabilities                                                                               |   |   | 35,816 |   |   | 33,128 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
| COMMITMENTS                      AND CONTINGENCIES                                                                                                   |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
| STOCKHOLDERS'                      EQUITY (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 |   |
| (Deficit)                      accumulated during the development stage                                                                              |   |   | (38,616 | ) |   | (35,928 | ) |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |
| Total                      Stockholders' Equity (Deficit)                                                                                            |   |   | (35,816 | ) |   | (33,128 | ) |
|                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                 |   | $ | -  |   | $ | - |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |

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| **SHELBY                          GROUP, INC.**             |
|-------------------------------------------------------------|
| **(A                      DEVELOPMENT STAGE ENTERPRISE)**   |
| **CONDENSED                      STATEMENTS OF OPERATIONS** |
|  (**unaudited)**                                       |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   | Cumulative  |   |
|                                                        |   |   |   |   |   |   |   |   | from  |   |
|                                                        |   |   |   |   |   |   |   |   | July                      16,  |   |
|                                                        |   |   |   |   |   |   |   |   | 1998 |   |
|                                                        |   | Three                      Months Ended  |   | (Inception) |   |
|                                                        |   | March                      31,   |   | to |   |
|                                                        |   |   | 2006 |   |   | 2005 |   |   | March                      31, 2006 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                                    |   | $ | - |   | $ | - |   | $ | - |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                    |   |   |   |   |   |   |   |   |   |   |
| General                      and administrative             |   |   | 2,688 |   |   | 2,455 |   |   | 38,616 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| Total                      expenses                         |   |   | 2,688 |   |   | 2,455 |   |   | 38,616 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| NET                      (LOSS)                             |   | $ | (2,688 | ) | $ | (2,455 | ) | $ | (38,616 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| NET                      (LOSS) PER SHARE                   |   |   | * |   |   | * |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                      AVERAGE NUMBER OF             |   |   |   |   |   |   |   |   |   |   |
| COMMON                      SHARES OUTSTANDING              |   |   | 1,000,000 |   |   | 1,000,000 |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| *                      less than $ (0.01) per share         |   |   |   |   |   |   |   |   |   |   |

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| **SHELBY                            GROUP, INC.**                                                    |
|------------------------------------------------------------------------------------------------------|
| **(A                      DEVELOPMENT STAGE ENTERPRISE)**                                            |
| **CONDENSED                      STATEMENTS OF CASH FLOWS**                                          |
| **(unaudited)**                                                                                      |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   | Cumulative  |   |
|                                                                                                 |   |   |   |   |   |   |   |   | from  |   |
|                                                                                                 |   |   |   |   |   |   |   |   | July                      16,  |   |
|                                                                                                 |   |   |   |   |   |   |   |   | 1998 |   |
|                                                                                                 |   | Three                      Months Ended  |   | (Inception) |   |
|                                                                                                 |   | March                      31,   |   | to |   |
|                                                                                                 |   |   | 2006 |   |   | 2005 |   |   | March                      31, 2006 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                      ACTIVITIES**                                                        |   |   |   |   |   |   |   |   |   |   |
|     Net                      (loss) from operations                              |   | $ | (2,688 | ) | $ | (2,455 | ) | $ | (38,616 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **NET                      CASH (USED BY) OPERATING ACTIVITIES**                                     |   |   | (2,688 | ) |   | (2,455 | ) |   | (38,616 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **FINANCING                      ACTIVITIES**                                                        |   |   |   |   |   |   |   |   |   |   |
|     Shareholder                      advances                                    |   |   | 2,688 |   |   | 2,455 |   |   | 35,816 |   |
|     Proceeds                      from                      sale of common stock |   |   |   |   |   |   |   |   | 2,800 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **NET                      CASH PROVIDED BY FINANCING ACTIVITIES**                                   |   |   | 2,688 |   |   | 2,455 |   |   | 38,616 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **NET                      INCREASE IN CASH**                                                        |   |   | - |   |   | - |   |   | - |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **CASH,                      BEGINNING OF PERIOD**                                                   |   |   |   |   |   |   |   |   | - |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| **CASH,                      END OF PERIOD**                                                         |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |

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| **SHELBY                            GROUP, INC.**                            |
|------------------------------------------------------------------------------|
| **(A                      DEVELOPMENT STAGE ENTERPRISE)**                    |
| **STATEMENTS                      OF STOCKHOLDERS' EQUITY (DEFICIT)**        |
|                                                                         |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   | **(Deficit)**  |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   | **Accumulated**  |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   | **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 | ) |
| **(unaudited)**                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net                      (loss) for the period                         |   |   |    |   |   |    |   |   |    |   |   | (2,688 | ) |   | (2,688 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balances,                      March 31, 2006 (unaudited)**                |   |   | 1,000,000 |   | $ | 1,000 |   | $ | 1,800 |   | $ | (38,616 | ) | $ | (35,816 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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**SHELBY                  GROUP, INC.**

**(A          DEVELOPMENT STAGE ENTERPRISE)**

**NOTES          TO FINANCIAL          STATEMENTS**

**(unaudited)**

| 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 | Certificate                    of CEO 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 |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a) | Designed                      such disclosure controls and procedures, or caused such disclosure                      controls and procedures to be designed under our supervision,                      to ensure that material information relating to the small business                      issuer, including its consolidated subsidiaries, is made known                      to us by others within those entities, particularly during                      the                      period                      in which this report is being                      prepared; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Designed                      such internal control over financial reporting, or caused such                      internal control over financial reporting to be designed under                      our                      supervision, to provide reasonable assurance regarding thereliability                      of financial reporting and the preparation of financial statements                      for external purposes in accordance with generally acceptedaccounting                      principles; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Evaluated                      the effectiveness of the small business issuer's disclosure                      controls and procedures and presented in this report our conclusions                      about the effectiveness of the disclosure controls and procedures,                      as of the end of the period covered by this report based on                      such evaluation; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Disclosed                      in this report any change in the small business issuer's internal                      control over financial reporting that occurred during the small                      business issuer's most recent fiscal quarter (the small business                      issuer's                      fourth fiscal quarter in the case of an annual report) thathas                      materially affected, or is reasonably likely to materially                      affect,                      the                      small business issuer's internal control over financial reporting;                      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | All                      significant deficiencies and material weaknesses in the design                      or                      operation of internal control over financial reporting which                      are                      reasonably                      likely to adversely affect the small business issuer's ability                      to record, process, summarize and report financial information;                      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Any                      fraud, whether or not material, that involves management orother                      employees who have a significant role in the small businessissuer's                      internal control over financial                      reporting. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a) | Designed                        such disclosure controls and procedures, or caused such disclosure                        controls and procedures to be designed under our supervision,                        to ensure that material information relating to the smallbusiness                        issuer, including its consolidated subsidiaries, is madeknown                        to us by others within those entities, particularly during                        the                        period                        in which this report is being                        prepared; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Designed                        such internal control over financial reporting, or causedsuch                        internal control over financial reporting to be designed                        under                        our                        supervision, to provide reasonable assurance regarding thereliability                        of financial reporting and the preparation of financial statements                        for external purposes in accordance with generally acceptedaccounting                        principles; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Evaluated                        the effectiveness of the small business issuer's disclosure                        controls and procedures and presented in this report ourconclusions                        about the effectiveness of the disclosure controls and procedures,                        as of the end of the period covered by this report basedon                        such evaluation; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Disclosed                        in this report any change in the small business issuer'sinternal                        control over financial reporting that occurred during thesmall                        business issuer's most recent fiscal quarter (the small business                        issuer's                        fourth fiscal quarter in the case of an annual report) thathas                        materially affected, or is reasonably likely to materially                        affect,                        the                        small business issuer's internal control over financial reporting;                        and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | All                        significant deficiencies and material weaknesses in the design                        or                        operation of internal control over financial reporting which                        are                        reasonably                        likely to adversely affect the small business issuer's ability                        to record, process, summarize and report financial information;                        and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Any                        fraud, whether or not material, that involves management                        or other                        employees who have a significant role in the small businessissuer's                        internal control over financial                        reporting. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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