**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| x      |   | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934**  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                      |
|   |   | For                the quarterly period ended September                30, 2008                                                      |
|   |   |                                                                                                                                      |
| **or** |
|   |   |                                                                                                                                      |
| o      |   | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|   |   |                                                                                                                                      |
|   |   | **For                the transition period from ____________ to                ____________**                                        |
|   |   |                                                                                                                                      |
|   |   | Commission                File Number: 000-53234                                                                                          |

**Interstate      Data USA, Inc.**

| **Delaware**                                                  |   | **61-1348524**                                      |
|---------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation) |   | (IRS                Employer Identification Number) |

**1900      West Loop South, # 1850**

**Houston,      Texas 77027**

**(606)      324-0048**

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

----

**TABLE      OF CONTENTS**

| PART                I — FINANCIAL INFORMATION |                                                                                                                       |
|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| ITEM                1.                              | Financial                Statements.                                                                                       | 3 |
|                                                | CONDENSED                BALANCE SHEETS                                                                                    | 3 |
|                                                | CONDENSED                STATEMENTS OF OPERATIONS                                                                          | 4 |
|                                                | CONDENSED                STATEMENTS OF CASH FLOWS                                                                          | 5 |
|                                                | NOTES                TO CONDENSED INTERIM FINANCIAL STATEMENTS                                                             | 6 |
| ITEM                2.                              | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations. | 14 |
| ITEM                4T.                             | Controls                and Procedures.                                                                                    | 21 |
| PART                II — OTHER INFORMATION    |                                                                                                                       |
| ITEM                1.                              | Legal                Proceedings.                                                                                          | 22 |
| ITEM                1A.                             | Risk                Factors                                                                                                | 22 |
| ITEM                2.                              | Unregistered                Sales of Equity Securities and Use of Proceeds.                                                | 22 |
| ITEM                3.                              | Defaults                upon Senior Securities.                                                                            | 22 |
| ITEM                4.                              | Submission                of Matters to a Vote of the Security Holders.                                                    | 22 |
| ITEM                5.                              | Other                Information.                                                                                          | 22 |
| ITEM                6.                              | Exhibits.                                                                                                                  | 23 |
| SIGNATURES                                          | 25                                                                                                                         |
| EX-31.1                                             | Section                302 Certification of Principal Executive Officer                                                    |   |
| EX-31.2                                             | Section                302 Certification of Principal Financial Officer                                                    |   |
| EX-32.1                                             | Section                906 Certification of Principal Executive Officer                                                    |   |
| EX-32.2                                             | Section                906 Certification of Principal Financial Officer                                                    |   |

**Explanatory      Note**

----

**PART      I — FINANCIAL INFORMATION**

**ITEM      1. Financial Statements.**

| **Interstate                Data USA, Inc.** |
|----------------------------------------------|
| (A                Development Stage Company) |
| Condensed                Balance Sheets      |

|                                                                                                                                                   |   | September 30, |         | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------------|-------------------|--------|
|                                                                                                                                                   |   | 2008               |         | 2007              |   |
|                                                                                                                                                   |   | (Unaudited)        |         |              |   |
| ASSETS                                                                                                                                                 |   |               |              |              |   |  |   |
| CURRENT                ASSETS                                                                                                                          |   |               |              |              |   |  |   |
| Cash                                                                                                                                                   |   | $                  | 21,032       |              | $      | 68,984 |   |
| Total                current assets                                                                                                                    |   |               | 21,032       |              |   | 68,984 |   |
| Fixed                Assets                                                                                                                            |   |               |              |              |   |  |   |
| Equipment                net of depreciation                                                                                                           |   |               | 30,973       |              |   | 35,978 |   |
| Other                Assets                                                                                                                            |   |               |              |              |   |  |   |
| Website                development in progress                                                                                                         |   |               | -            |              |   | 274,500 |   |
| Leasehold                improvements net of amortization                                                                                              |   |               | 28,950       |              |   | 31,650 |   |
| Website                development net of accumulated                                                                                                  |   |               |              |              |   |  |   |
| amortization                                                                                                                                           |   |               | 382,709      |              |   | 273,333 |   |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| TOTAL                ASSETS                                                                                                                            |   | $                  | 463,664      |              | $      | 684,445 |   |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                          |   |               |              |              |   |  |   |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| Accounts                payable                                                                                                                        |   | $                  | 666,537      |              | $      | 1,811 |   |
| Notes                payable - related party - current                                                                                                 |   |               | 883,996      |              |   | 6,900 |   |
| Accrued                liabilities                                                                                                                     |   |               | 590,055      |              |   | 407,513 |   |
| Convertible                notes payable current                                                                                                       |   |               | 100,000      |              |   | 100,000 |   |
| Discount                on convertible note payable                                                                                                    |   |               |    |              |   | (38,024 | ) |
| Total                current liabilities                                                                                                               |   |               | 2,240,588    |              |   | 478,200 |   |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| Notes                payable-related parties                                                                                                           |   |               | 236,856      |              |   | 238,050 |   |
| Notes                payable                                                                                                                           |   |               | 101,749      |              |   | 101,749 |   |
| Total                liabilities                                                                                                                       |   |               | 2,579,193    |              |   | 817,999 |   |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| STOCKHOLDERS'                EQUITY (DEFICIT)                                                                                                          |   |               |              |              |   |  |   |
| Preferred                stock: 20,000,000 shares authorized, at $0.001 par value, 281,833                shares                issued and outstanding |   |               | 282          |              |   | 282 |   |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| Common                stock: 80,000,000 shares authorized, at $0.001 par value, 6,391,231                shares                issued and outstanding  |   |               | 6,391        |              |   | 6,267 |   |
| Additional                paid-in capital                                                                                                              |   |               | 4,734,749    |              |   | 4,704,251 |   |
| Additional                paid-in capital share options                                                                                                |   |               | 2,023,377    |              |   | 1,953,568 |   |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| Deficit                accumulated during the development stage                                                                                        |   |               | (8,880,328   | )                 |   | (6,797,922 | ) |
|                                                                                                                                                   |   |               |              |              |   |  |   |
| Total                stockholders' equity (deficit)                                                                                                    |   |               | (2,115,529   | )                 |   | (133,554 | ) |
| TOTAL                LIABILITIES AND STOCKHOLDERS'   EQUITY (DEFICIT)                                                                             |   | $                  | 463,664      |              | $      | 684,445 |   |

*See      accompanying notes to condensed interim financial      statements.*

----

| **Interstate                Data USA, Inc.**                                 |
|------------------------------------------------------------------------------|
| (A                Development Stage Company)                                 |
| Condensed                Statements of Operations                (Unaudited) |

|                                                         |   | For the ThreeMonths EndedSeptember 30, |      | For the NineMonths EndedSeptember 30, |   | From InceptionMay 19,1999 ThroughSeptember 30, |   |
|--------------------------------------------------------------|--------|------------------------------------------------------------|-----------|-----------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                         |   | 2008                                                       |      | 2007                                                      |   | 2008                                                               |   | 2007 |   | 2008 |   |
|                                                         |   |                                                       |      |                                                      |   |                                                               |   |   |   |   |   |
| REVENUES                                                     |   | $                                                          | 3,740     |                                                      | $      | 59                                                                 |   | $ | 3,740 |   | $ | 126 |   | $ | 39,161 |   |
|                                                         |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
| EXPENSES                                                     |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
|                                                         |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
| Stock                option expense                          |   |                                                       |      |                                                      |   | 19,728                                                             |   |   | 69,908 |   |   | 19,728 |   |   | 2,043,204 |   |
| Amortization                expense                          |   |                                                       | 57,042    |                                                      |   | 34,167                                                             |   |   | 165,125 |   |   | 102,500 |   |   | 507,998 |   |
| Depreciation                expense                          |   |                                                       | 2,567     |                                                      |   | 2,136                                                              |   |   | 7,705 |   |   | 4,383 |   |   | 41,756 |   |
| General                and                                   |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
| administrative                expenses                       |   |                                                       | 612,457   |                                                      |   | 379,483                                                            |   |   | 1,843,408 |   |   | 586,068 |   |   | 6,326,531 |   |
|                                                         |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
| Total                expenses                                |   |                                                       | 672,066   |                                                      |   | 435,514                                                            |   |   | 2,086,146 |   |   | 712,679 |   |   | 8,919,489 |   |
|                                                         |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
| NET                LOSS                                      |   | $                                                          | (668,326  | )                                                         | $      | (435,455                                                           | )      | $ | (2,082,406 | ) | $ | (712,553 | ) | $ | (8,880,328 | ) |
|                                                         |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
| BASIC                LOSS PER SHARE                          |   | $                                                          | (0.11     | )                                                         | $      | (0.07                                                              | )      | $ | (0.33 | ) | $ | (0.11 | ) |   |  |   |
|                                                         |   |                                                       |           |                                                      |   |                                                                    |   |   |  |   |   |  |   |   |  |   |
| WEIGHTED                AVERAGE NUMBER OF SHARES OUTSTANDING |   |                                                       | 6,339,108 |                                                      |   | 6,261,853                                                          |   |   | 6,339,108 |   |   | 6,261,853 |   |   |  |   |

*See      accompanying notes to condensed interim financial      statements.*

----

| **Interstate                Data USA, Inc.**                                 |
|------------------------------------------------------------------------------|
| (A                Development Stage Company)                                 |
| Condensed                Statements of Cash Flows                (Unaudited) |

|                                                                                                      |   | For the NineMonths EndedSeptember 30, |       | From InceptionMay 11,1999 ThroughSeptember 30, |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|------------|--------------------------------------------------------------------|--------|
|                                                                                                      |   | 2008                                                      |       | 2007                                                               |   | 2008 |   |
| OPERATING ACTIVITIES                                                                                 |   |                                                      |            |                                                               |   |  |   |   |  |   |
| Net                loss                                                                                   |   | $                                                         | (2,082,406 | )                                                                  | $      | (712,553 | ) | $ | (8,880,328 | ) |
| Adjustments                to reconcile net loss to net cash used by operating                activities: |   |                                                      |            |                                                               |   |  |   |   |  |   |
| Additional                paid in capital share options                                                   |   |                                                      | 69,908     |                                                               |   |  |   |   | 2,023,377 |   |
| Depreciation                                                                                              |   |                                                      | 7,705      |                                                               |   | 4,383 |   |   | 28,476 |   |
| Amortization                                                                                              |   |                                                      | 165,125    |                                                               |   | 102,500 |   |   | 507,998 |   |
| Stock                for services                                                                         |   |                                                      |            |                                                               |   |  |   |   | 54,550 |   |
| Changes                in operating assets and liabilities                                                |   |                                                      |            |                                                               |   |  |   |   |  |   |
| Discount                on notes payable                                                                  |   |                                                      |       |                                                               |   |   |   |   | 41,193 |   |
| Increase                in accrued expenses                                                               |   |                                                      | 182,542    |                                                               |   | 20,756 |   |   | 590,055 |   |
| Increase                in accounts payable - related                                                     |   |                                                      | -          |                                                               |   | (7,768 | ) |   | 0 |   |
| Increase                in accounts payable                                                               |   |                                                      | 664,727    |                                                               |   | 14,157 |   |   | 666,537 |   |
|                                                                                                      |   |                                                      |            |                                                               |   |  |   |   |  |   |
| Net                cash used by operating activities                                                      |   |                                                      | (992,399   | )                                                                  |   | (578,525 | ) |   | (4,968,142 | ) |
|                                                                                                      |   |                                                      |            |                                                               |   |  |   |   |  |   |
| INVESTING                ACTIVITIES                                                                       |   |                                                      |            |                                                               |   |  |   |   |  |   |
| Leasehold                improvements blg                                                                 |   |                                                      |            |                                                               |   |  |   |   | (36,000 | ) |
| Website                development                                                                        |   |                                                      | (274,500   | )                                                                  |   | (410,000 | ) |   | (890,707 | ) |
| Equipment                                                                                                 |   |                                                      | -          |                                                               |   | (34,762 | ) |   | (52,400 | ) |
| Development                cost in progress                                                               |   |                                                      | 274,500    |                                                               |   | 150,500 |   |   | - |   |
| Net                cash provided from investing                                                           |   |                                                      | -          |                                                               |   | (294,262 | ) |   | (979,107 | ) |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                       |   |                                                      |            |                                                               |   |  |   |   |  |   |
| Additional                paid in capital                                                                 |   |                                                      | 74,975     |                                                               |   |  |   |   | 74,975 |   |
| Interest                paid                                                                              |   |                                                      | (44,477    | )                                                                  |   |  |   |   | (61,387 | ) |
| Proceeds                from notes payable                                                                |   |                                                      | 919,848    |                                                               |   | 119,975 |   |   | 1,777,026 |   |
| Discounts                on notes payable                                                                 |   |                                                      | 38,024     |                                                               |   |  |   |   |  |   |
| Payments                of long term debt                                                                 |   |                                                      | (43,948    | )                                                                  |   | (125,829 | ) |   | (454,424 | ) |
| Proceeds                from sale of common stock                                                         |   |                                                      | 25         |                                                               |   | 91,500 |   |   | 3,760,990 |   |
| Proceeds                from sale of preferred stock                                                      |   |                                                      |       |                                                               |   | 871,101 |   |   | 871,101 |   |
| Net                cash provided by                                                                       |   |                                                      | 944,447    |                                                               |   | 956,747 |   |   | 5,968,281 |   |
| financing                activities                                                                       |   |                                                      |            |                                                               |   |  |   |   |  |   |
|                                                                                                      |   |                                                      |            |                                                               |   |  |   |   |  |   |
| NET                DECREASE IN CASH                                                                       |   |                                                      | (47,952    | )                                                                  |   | 83,960 |   |   | 21,032 |   |
| CASH                AT BEGINNING OF PERIOD                                                                |   |                                                      | 68,984     |                                                               |   | 204,314 |   |   | - |   |
| CASH                AT END OF PERIOD                                                                      |   | $                                                         | 21,032     |                                                               | $      | 288,274 |   | $ | 21,032 |   |
|                                                                                                      |   |                                                      |            |                                                               |   |  |   |   |  |   |
| SUPPLEMENTAL                DISCLOSURES OF                                                                |   |                                                      |            |                                                               |   |  |   |   |  |   |
| CASH                FLOW INFORMATION                                                                      |   |                                                      |            |                                                               |   |  |   |   |  |   |
| CASH                PAID FOR:                                                                             |   |                                                      |            |                                                               |   |  |   |   |  |   |
| Interest                                                                                                  |   | $                                                         | 85,106     |                                                               | $      | 7,336 |   | $ | 126,791 |   |
| Income                taxes                                                                               |   | $                                                         | -          |                                                               | $      | - |   | $ | - |   |

*See      accompanying notes to condensed interim financial      statements.*

----

**Interstate      Data USA, Inc.**

**(A      Development Stage Company)**

**Notes      to Unaudited Financial Statements**

**(September      30, 2008)**

**Note      1. General Organization and Business**

**Note      2. Summary of Significant Accounting Practices**

***Recently      issued accounting pronouncements:***

*Business      Combinations*

----

*Noncontrolling      Interests in Consolidated Financial Statements - An Amendment of ARB      No. 51*

*“Share-Based      Payment”*

*“Disclosures      about Derivative Instruments and Hedging Activities - An Amendment to FASB      Statement No. 133*

*,      “The Hierarchy of Generally Accepted Accounting Principles”*
*“The      Meaning of Present Fairly in Conformity With Generally Accepted Accounting      Principles.”*

*,      “Accounting for Financial Guarantee Insurance Contracts - An interpretation      of      FASB Statement No. 60”*
*.*

----

***Recently      adopted accounting standards:***

*Fair      Value Measurements*
*Effective      Date of FASB Statement No. 157*

*The      Fair Value Option for Financial Assets and Financial Liabilities - Including      an      amendment of FASB Statement No. 155*

| **For                the Three Months Ended September 30, 2008** |   |
|------------------------------------------------------------------|--------|
|                                                             |   |   |   |   |   |
| **Loss****Numerator**                                            |   | **Shares****Denominator** |   | **Per****Share                Amount** |   |
| (668,326)                                                        |   |   | 6,339,108 |   |   | (.11 | ) |

| **For                the Three Months Ended September 30, 2007** |   |
|------------------------------------------------------------------|--------|
|                                                             |   |    |   |    |   |
| **Loss****Numerator**                                            |   | **Shares****Denominator** |   | **Per****Share Amount** |   |
| (435,455)                                                        |   |   | 6,261,853 |   |   | (.07 | ) |

----

| Basic                and Diluted                            |   |                                                    |       |   |   |
|-------------------------------------------------------------|--------|---------------------------------------------------------|------------|--------|--------|
|                                                        |   |                                                    |       |   |   |
|                                                        |   | Nine Months EndedSeptember 30, 2008 |       |
|                                                        |   | 2008                                                    |       | 2007   |   |
| Basic                earnings per share:                    |   |                                                    |            |   |   |  |   |
|                                                        |   |                                                    |            |   |   |  |   |
| Net                Income ( loss)                           |   | $                                                       | (2,082,406 | )      | $      | (712,553 | ) |
|                                                        |   |                                                    |            |   |   |  |   |
| Weighted                average shares outstanding, basic   |   |                                                    | 6,339,108  |   |   | 6,261,853 |   |
| Weighted                average shares outstanding, diluted |   |                                                    | 8,979,754  |   |   | 8,262,082 |   |
| Basic                earnings per share                     |   | $                                                       | (0.33      | )      | $      | (0.11 | ) |
| Diluted                earnings per share                   |   | $                                                       | (0.33      | )      | $      | (0.11 | ) |

----

|   | a.) | On                March 31, 2008, the Company issued a promissory note in the principal                amount of $296,000 to Vincent O. Ebuh, a stockholder and director                of the                Company. The note accrues interest at a rate of 12% per annum and                both the                principal and interest are due and payable on March 31,                2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.)    | On                December 13, 2007, the Company issued a convertible promissory note                in the                principal amount of $100,000 to Apollos Ikpobe, a stockholder of                the                Company. The note accrues interest at a rate of 12% per annum, payable                monthly, and matures on June 30, 2008. Due to the convertible nature                of                this note an adjustment was made in the amount of $41,193 as a discount                to                notes payable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | On April 10,              2008, the              convertible promissory note issued to Apollos Ikpobe was assigned to              Vincent O. Ebuh, a stockholder and director of the Company. On June              30,              2008, the maturity date was extended to December 31, 2008 and the              remaining terms remain consistent with the original terms of this              note.                                                                                                                                          |

|   | c.) | During                April 2008, Vincent O. Ebuh, a stockholder and director of the Company,                loaned the Company an aggregate of $95,000 of which the Company repaid                $15,000 towards the obligation in the same month. Effective April                30,                2008, the Company issued to Mr. Ebuh a promissory note for the balance                of                the loan in the principal amount of $80,000. The note accrues interest                at                a rate of 12% per annum and both principal and interest are due and                payable on April 30, 2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d.) | On                May 19, 2008, the Company issued a promissory note in the principal                amount                of $17,500 to Randall R. Carpenter, a stockholder, officer and                director of the Company. The note accrues interest at a rate of 12%                per                annum and both the principal and interest are due and payable on                May 19,                2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | e.) | On                May 29, 2008, the Company issued a promissory note in the principal                amount                of $66,000 to Vincent O. Ebuh, a stockholder and director of the                Company.                The note accrues interest at a rate of 12% per annum and both principal                and interest are due and payable on May 29,                2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f.)    | On                June 19, 2008, the Company issued a promissory note in the principal                amount of $146,000 to Vincent O. Ebuh, a stockholder and director                of the                Company. The note accrues interest at a rate of 12% per annum and                both the                principal and interest are due and payable on June 19,                2009.                          |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | g.)    | On                July 2, 2008, the Company issued a promissory note in the principal                amount                of $1,210 to Randall R. Carpenter, a stockholder, officer and director                of                the Company. The note accrues interest at a rate of 12% per annum                and both                the principal and interest are due and payable on July 2,                2009. |

|   | h.)    | On                July 16, 2008, the Company issued a promissory note in the principal                amount of $1,210 to Randall R. Carpenter, a stockholder, officer                and                director of the Company. The note accrues interest at a rate of 12%                per                annum and both the principal and interest are due and payable on                July 16,                2009.                                                                                                                                                                                                                             |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | i.)    | Effective                July 31, 2008, the Company issued a promissory note in the principal                amount of $100,750 to Vincent O. Ebuh, a stockholder and director                of the                Company. The note accrues interest at a rate of 12% per annum and                both                principal and interest are due and payable on July 31,                2009.                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | j.)    | During                August 2008, Vincent O. Ebuh, a stockholder and director of the Company,                loaned the Company an aggregate of $173,820 of which the Company                repaid                $21,000 towards the obligation in the same month. Effective August                31,                2008, the Company issued to Mr. Ebuh a promissory note for the balance                of                the loan in the principal amount of $152,820. The note accrues interest                at                a rate of 12% per annum and both principal and interest are due and                payable on August 31, 2009. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | k.)    | During                September 2008, Vincent O. Ebuh, a stockholder and director of the                Company, loaned the Company an aggregate of $17,107 of which the                Company                repaid $1,500 towards the obligation in the same month. Effective                September 30, 2008, the Company issued to Mr. Ebuh a promissory note                for                the balance of the loan in the principal amount of $15,607. The note                accrues interest at a rate of 12% per annum and both principal and                interest are due and payable on September 30,                2009.          |

|   | l.) | The                Company has obtained a line of credit with Town Square Bank of Ashland,                KY. This line of credit is for a total of $100,000. This note was                guaranteed by David E. Carter, Robert G. Lowe, and Randall R. Carpenter,                all of whom are officers or directors of the Company. On June 28,                2006,                the Company repaid loans to Town Square Bank of $100,000 in principal                together with $1,749 in accrued interest and obtained a new loan                from                Palmetto Heritage Bank and Trust in the principal amount of $101,749.                Under the terms of this loan the Company is required to make twenty-three                (23) monthly interest payments beginning June 1, 2006 through June                1, 2008                and one (1) final payment of the principal amount of $101,749 plus                the                last month’s interest. Interest accrues on the loan at a variable rate of                8.5% per annum. During the three months ended March 31, 2008, the                Company                extended the maturity of the loan from Palmetto Heritage Bank for                (1) one                additional year until June 28,                2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | m.) | The                Company has received loans from David E. Carter, its Chief Executive                Officer and director and a corporation owned by David E. Carter.                The loans                are non-interest bearing and the net outstanding amounts due under                the                loans are as follows: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | September 30,2008 |    | September 30,2007 |   |
|--------------------------------|--------|------------------------|---------|------------------------|--------|
|                           |   |                   |    |                   |   |
| David                E. Carter |   | $                      | 15,000  |                   | $      | 15,000 |   |
| DEC,                Inc        |   | $                      | 103,747 |                   | $      | 103,747 |   |
| Total                          |   | $                      | 118,747 |                   | $      | 118,747 |   |

|   | n.) | The                Company has received loans from Randall R. Carpenter, its President                and                director. The net outstanding amounts due under the loans are set                forth                below. The Company is currently making monthly payments to Mr. Carpenter                in the amount of $575. The current portion of the loans, or the amounts                due within one year or less, are $26,820 and $6,900 for the three                months                ended September 30, 2008 and 2007, respectively. Of the $61,284 in                outstanding loan amounts due as of September 30, 2008, $41,364 in                principal amount of the loans is non-interest                bearing. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | September 30,2008 |   | September 30,2007 |   |
|-------------------------------------|--------|------------------------|--------|------------------------|--------|
|                                |   |                   |   |                   |   |
| Randall                R. Carpenter |   | $                      | 61,284 |                   | $      | 53,709 |   |

|   | o.) | The                Company has received loans from Vincent O. Ebuh and Robert G. Lowe,                stockholders and directors of the Company. The net outstanding amounts                due                under the loans are set forth below, which include non-interest bearing                loans in the amounts of $48,507 and $35,138, respectively. Mr. Ebuh                and                Mr. Lowe own shares of common stock representing a 32.3% and 14.3%,                respectively, of the Company’s outstanding common stock as of September                30, 2008. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | September 30,2008 |      | September 30,2007 |   |
|--------------------------------|--------|------------------------|-----------|------------------------|--------|
|                           |   |                   |      |                   |   |
| Vincent                O. Ebuh |   | $                      | 1,005,684 |                   | $      | 130,688 |   |
| Robert                G. Lowe  |   | $                      | 35,138    |                   | $      | 35,138 |   |
| Total                          |   | $                      | 1,040,822 |                   | $      | 165,826 |   |

----

**Note      3. Stockholders Equity**

|                                                      |   | Three Months Ended |      |
|-----------------------------------------------------------|--------|------------------------------|-----------|
|                                                      |   | September 30, 2008 |      |
|                                                      |   | Shares                       |      |
|                                                      |   |                         |      |
| Outstanding at beginning                of year |   |                         | 1,971,657 |   |
| Granted                                                   |   |                         | -         |   |
| Exercised                                                 |   |                         | -         |   |
| Forfeited                or expired                       |   |                         | -         |   |
|                                                      |   |                         |           |   |
| Outstanding                at end of period               |   |                         | 1,971,657 |   |
| Options                exercisable at end of period       |   |                         | 1,784,157 |   |

----

**Note      4.**
**Related      Party Transactions**

**Note      5. Going Concern**

----

**ITEM      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations.**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION**

**AND      RESULTS OF OPERATIONS**

|   | · | industry                competition, conditions, performance and consolidation;                                                                                                                                                                                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                          |
|   | · | product                demand and market acceptance risks;                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                          |
|   | · | legislative                and/or regulatory developments;                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                          |
|   | · | the                presence of competitors with greater financial resources than                us;                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                          |
|   | · | exposure                to obsolescence due to the rapid technological changes occurring                in                Internet industries;                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                          |
|   | · | effects                of adverse general economic conditions within the United States;                or                financial performance; and                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                          |
|   | · | other                factors described in “Item 1A. Risk Factors” of our Registration                Statement on Form 10/A (File No. 000-53234), as filed with the                SEC on September 16, 2008 (the “Registration Statement”), or in our other                filings made with the SEC. |

**Overview**

----

**Our      Business Strategy**

|   | · | Providing                what we believe is superior travel mapping and interstate highway                exit                information; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Growing                our TravMatixTM                brand and                our Internet presence through an advertising and public relations                campaign; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Promoting                an integrated advertising approach; |
|--------|--------|--------------------------------------------------------------|

|   | · | Creating                and promoting strategic relationships;                and |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | Expanding                our data services to include cellular and other navigational                devices. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | Cost                per click (CPC) advertising (payments to search engines and other                Internet                publishers for one click on the Company’s ad that brings one visitor to                the Company’s web site); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On-line                advertising (advertisements on established web sites such as CNN.com                and                Weather Channel.com); |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Television                advertising; and |
|--------|--------|--------------------------------------------|

|   | · | Print                advertising (magazines and                newspapers). |
|--------|--------|-----------------------------------------------------------------------------|

**Satisfaction      of our cash obligations for the next 12 months**

|   | · | our                  operating expenses; |
|--------|--------|------------------------------------------|

|   | · | our                  continued web site improvement; |
|--------|--------|------------------------------------------------------|

|   | · | payment                  of professional fees, including independent certified public auditing                  services and legal fees; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                     |
|   | · | our                  marketing and advertising campaign; and                                                                             |
|   |   |                                                                                                                                     |
|   | · | our                  interest payments to our Series A preferred                  stockholders.                                          |

----

**Financial      Condition and Changes**

*Accrued      Expenses and Other Liabilities*

|                                                       |   | Nine Months endedSeptember 30, |    |
|------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                       |   | 2007                                          |    | 2008 |   |
|                                                       |   |                                          |    |   |   |
| Accrued                Interest                            |   | $                                             | -0-     |   | $ | 42,562 |   |
| Accrued                Payroll                             |   |                                          | 291,666 |   |   | 400,000 |   |
| DEC                Management Fee Payable (to affiliate)   |   |                                          | 33,000  |   |   | 33,000 |   |
| DEC                Health Insurance Payable (to affiliate) |   |                                          | 82,484  |   |   | 114,687 |   |
| Payroll                Taxes Payable                       |   |                                          | 56      |   |   | -0- |   |
| Local                Taxes Payable                         |   |                                          | (193    | ) |   | (194 | ) |
|                                                       |   |                                          |    |   |   |   |   |
| Total                                                      |   | $                                             | 407,013 |   |   | 590,055 |   |

----

|   | a.) | On                March 31, 2008, the Company issued a promissory note in the principal                amount of $296,000 to Vincent O. Ebuh, a stockholder and director                of the                Company. The note accrues interest at a rate of 12% per annum and                both the                principal and interest are due and payable on March 31,                2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.)    | On                December 13, 2007, the Company issued a convertible promissory note                in the                principal amount of $100,000 to Apollos Ikpobe, a stockholder of                the                Company. The note accrues interest at a rate of 12% per annum, payable                monthly, and matures on June 30, 2008. Due to the convertible nature                of                this note an adjustment was made in the amount of $41,193 as a discount                to                notes payable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | On                April 10, 2008, the convertible promissory note issued to Apollos                Ikpobe                was assigned to Vincent O. Ebuh, a stockholder and director of the                Company. On June 30, 2008, the maturity date was extended to December                31,                2008 and the remaining terms remain consistent with the original                terms of                this note.                                                                                                             |

|   | c.) | During                April 2008, Vincent O. Ebuh, a stockholder and director of the Company,                loaned the Company an aggregate of $95,000 of which the Company repaid                $15,000 towards the obligation in the same month. Effective April                30,                2008, the Company issued to Mr. Ebuh a promissory note for the balance                of                the loan in the principal amount of $80,000. The note accrues interest                at                a rate of 12% per annum and both principal and interest are due and                payable on April 30, 2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d.) | On                May 19, 2008, the Company issued a promissory note in the principal                amount                of $17,500 to Randall R. Carpenter, a stockholder and director of                the                Company. The note accrues interest at a rate of 12% per annum and                both the                principal and interest are due and payable on May 19,                2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e.) | On                May 29, 2008, the Company issued a promissory note in the principal                amount                of $66,000 to Vincent O. Ebuh, a stockholder and director of the                Company.                The note accrues interest at a rate of 12% per annum and both principal                and interest are due and payable on May 29,                2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f.) | On                June 19, 2008, the Company issued a promissory note in the principal                amount of $146,000 to Vincent O. Ebuh, a stockholder and director                of the                Company. The note accrues interest at a rate of 12% per annum and                both the                principal and interest are due and payable on June 19,                2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g.)    | On                July 2, 2008, the Company issued a promissory note in the principal                amount                of $1,210 to Randall R. Carpenter, a stockholder and officer of the                Company. The note accrues interest at a rate of 12% per annum and                both the                principal and interest are due and payable on July 2,                2009.                                                                                                                                                                                                                                                                                              |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | h.)    | On                July 16, 2008, the Company issued a promissory note in the principal                amount of $1,210 to Randall R. Carpenter, a stockholder and                officer of the Company. The note accrues interest at a rate of 12%                per                annum and both the principal and interest are due and payable on                July 16,                2009.                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | i.)    | Effective                July 31, 2008, the Company issued a promissory note in the principal                amount of $100,750 to Vincent O. Ebuh, a stockholder and director                of the                Company. The note accrues interest at a rate of 12% per annum and                both                principal and interest are due and payable on July 31,                2009.                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | j.)    | During                the month of August 2008, Vincent O. Ebuh, a stockholder and director                of                the Company, loaned the Company an aggregate of $173,820 of which                the                Company repaid $21,000 towards the obligation in the same month.                Effective                August 31, 2008, the Company issued to Mr. Ebuh a promissory note                for the                balance of the loan in the principal amount of $152,820. The note                accrues                interest at a rate of 12% per annum and both principal and interest                are                due and payable on August 31, 2009. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | k.)    | During                the month of September 2008, Vincent O. Ebuh, a stockholder and director                of the Company, loaned the Company an aggregate of $17,107 of which                the                Company repaid $1,500 towards the obligation in the same month. Effective                September 30, 2008, the Company issued to Mr. Ebuh a promissory note                for                the balance of the loan in the principal amount of $15,607. The note                accrues interest at a rate of 12% per annum and both principal and                interest are due and payable on September 30,                2009.                                        |

|   | l.) | The                Company obtained a line of credit with Town Square Bank of Ashland,                KY.                This line of credit is for a total of $100,000. This note was guaranteed                by David E. Carter, Robert G. Lowe, and Randall R. Carpenter, all                of whom                are officers or directors of the Company. On June 28, 2006, the Company                repaid loans to Town Square Bank of $100,000 in principal together                with                $1,749 in accrued interest and obtained a new loan from Palmetto                Heritage                Bank and Trust in the principal amount of $101,749. Under the terms                of                this loan the Company is required to make 23 monthly interest payments                beginning June 1, 2006 through June 1, 2008 and one (1) final payment                of                the principal amount of $101,749 plus the last month’s interest. Interest                accrues on the loan at a variable rate of 8.5% per annum. During                the three                months ended March 31, 2008, the Company extended the maturity of                the loan                from Palmetto Heritage Bank and Trust for one additional year until                June 28, 2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | m.) | The                Company has received loans from David E. Carter, its Chief Executive                Officer and director and a corporation owned by David E. Carter.                The loans                are non-interest bearing and the net outstanding amounts due under                the                loans are as follows: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | September 30, 2008 |    | September30, 2007 |   |
|-------------------------------------|--------|------------------------------|---------|------------------------|--------|
| David E.                Carter |   | $                            | 15,000  |                   | $      | 15,000 |   |
| DEC,                Inc.            |   | $                            | 103,747 |                   | $      | 103,747 |   |
| Total                               |   | $                            | 118,747 |                   | $      | 118,747 |   |

|   | n.) | The                Company has received loans from Randall R. Carpenter. The                net outstanding amounts due under the loans are set forth below.                The                Company is currently making monthly payments to Mr. Carpenter in                the                amount of $575. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | September30, 2008 |   | September30, 2007 |   |
|------------------------------------------|--------|------------------------|--------|------------------------|--------|
| Randall R.                Carpenter |   | $                      | 61,284 |                   | $      | 53,709 |   |

|   | o.)    | The                Company has received loans from Vincent O. Ebuh and Robert G. Lowe.                The                net outstanding amounts due under the loans are set forth below,                which                includes non-interest bearing loans in the amounts of $48,507 and                $35,138,                respectively. Mr. Ebuh and Mr. Lowe own shares of Common Stock                representing 32.3% and 14.3%, respectively, of the Company’s outstanding                Common Stock as of September 30, 2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|                          |   | September30, 2008 |      | September30, 2007 |   |
|-------------------------------|--------|------------------------|-----------|------------------------|--------|
| Vincent O. Ebuh     |   | $                      | 1,005,684 |                   | $      | 130,688 |   |
| Robert                G. Lowe |   | $                      | 35,138    |                   | $      | 35,138 |   |
|                          |   |                   |           |                   |   |  |   |
| Total                         |   | $                      | 1,040,822 |                   | $      | 165,826 |   |

**Affiliated      Party Debt and Loans**

**Contractual      Obligations**

**Results      of Operations**

*Three      Months Ended September 30, 2008 Compared to the Three Months Ended September      30,      2007*

----

*Nine Months      Ended September 30, 2008 Compared to the Nine Months      Ended September 30, 2007*

**Liquidity      and Capital Resources**

----

** **

**Critical      Accounting Policies**

*Use      of Estimates*

*Fair      Value of Financial Instruments*

*Off-Balance      Sheet Arrangements*

----

**ITEM      4T. Controls and Procedures.**

----

**PART      II — OTHER INFORMATION**

**ITEM      1. Legal Proceedings.**

**ITEM      1A. Risk Factors**

**Current      levels of securities and financial market volatility are unprecedented.**

**ITEM      2. Unregistered Sales of Equity Securities and Use of      Proceeds.**

**ITEM      3. Defaults upon Senior Securities.**

**ITEM      4. Submission of Matters to a Vote of the Security      Holders.**

None.      

**ITEM      5. Other Information.**

----

**ITEM      6. Exhibits.**

| **Exhibit****Number** |   | **Description**                                                                                                                                                                                                                           |
|-----------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **2.1**               |   | Plan                and Agreement of Merger and Reorganization of Interstate Data, Inc.                into                and with Interstate Data USA, Inc. (1)                                                                         |
| **3.1**               |   | Amended                and Restated Certificate of Incorporation filed with the Secretary                of                State of the State of Delaware on October 24, 2006 (1)                                                         |
| **3.2**               |   | Certificate                of Amendment to Amended and Restated Certificate of Incorporation                filed                with the Secretary of State of the State of Delaware on March 21,                2007 (1)           |
| **3.3**               |   | Certificate                of Designation of 8% Series A Convertible Preferred Stock filed with                the                Secretary of State of the State of Delaware on July 24, 2007                (1)                         |
| **3.4**               |   | Certificate                of Amendment to Amended and Restated Certificate of Incorporation                filed                with the Secretary of State of the State of Delaware on April 24,                2008                (1) |
| **3.5**               |   | Amended                and Restated By-Laws (1)                                                                                                                                                                                           |
| **3.6**               |   | First                Amendment to Amended and Restated By-Laws (2)                                                                                                                                                                        |
| **4.1**               |   | Unit Purchase                Warrant issued to Newbridge Securities Corporation (1)                                                                                                                                                  |
| **4.2**               |   | Form                of Common Stock Purchase Warrant issued to Series A Convertible Preferred                Stock investors (1)                                                                                                          |
| **10.2**              |   | Placement                Agency Agreement, between Interstate Data USA, Inc. and Newbridge                Securities Corporation (1)                                                                                                      |
| **10.2**              |   | Amendment                No. 1 to Placement Agency Agreement, between Interstate Data USA,                Inc. and                Newbridge Securities Corporation (1)                                                                    |
| **10.3**              |   | Amendment                No. 2 to Placement Agency Agreement, between Interstate Data USA,                Inc. and                Newbridge Securities Corporation (1)                                                                    |
| **10.4**              |   | Form                of Subscription Agreement for Series A Convertible Preferred Stock                Offering (1)                                                                                                                        |
| **10.5**              |   | Form                of Registration Rights Agreement for Series A Convertible Preferred                Stock                Offering (1)                                                                                                  |
| **10.6**              |   | Form                of Promissory Note executed by Interstate Data USA, Inc. in favor                of                officers and directors (1)                                                                                         |
| **10.7**              |   | Convertible                Promissory Note executed by Interstate Data USA, Inc. in favor of                Mr.                Apollos Ikpobe (1)                                                                                         |
| **10.8**              |   | Employment                Agreement between Interstate Data USA, Inc. and Mr. Randall R. Carpenter                (1)                                                                                                                     |
| **10.9**              |   | Form                of Stock Option Agreement (1)                                                                                                                                                                                         |
| **10.10**             |   | 2008                Stock Incentive Plan (1)                                                                                                                                                                                              |
| **10.11**             |   | Lease                Agreement, dated August 16, 2007, by and between Interstate Data                USA, Inc.                and Community Trust Bank Inc. for Ashland, Kentucky office space                (1)                         |
| **10.12**             |   | Lease                Agreement, dated February 1, 2008, by and between Interstate Data                USA,                Inc. and Community Trust Bank Inc. for Ashland, Kentucky office space                (1)                        |
| **10.13**             |   | Loan                Agreement, dated June 28, 2006, by and between Interstate Data USA,                Inc.                and Palmetto Heritage Bank and Trust (2)                                                                       |
| **10.14**             |   | Amendment                to Convertible Note between Interstate Data USA, Inc. and Vincent                O. Ebuh                (2)                                                                                                      |

----

| **Exhibit****Number** |   | **Description**                                                                                                                                                                                            |
|-----------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **31.1***             |   | Chief                Executive Officer Certification Pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                2002 |
| **31.2***             |   | Chief                Financial Officer Certification Pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                2002 |
| **32.1***             |   | Chief                Executive Officer Certification Pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
| **32.2***             |   | Chief                Financial Officer Certification Pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |

----

| (1)    | Incorporated                by reference to the corresponding exhibit filed with the Registration                Statement on Form 10 (File No. 000-1143705) with the SEC on May 13,                2008.                                                   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                             |
| (2)    | Incorporated                by reference to the corresponding exhibit filed with Amendment No.                1 to                the Registration Statement on Form 10 (File No. 000-1143705) filed                with                the SEC on July 3, 2008. |

----

**SIGNATURES**

| November                  14, 2008   | **INTERSTATE                  DATA USA, INC.**                                                              |
|-------------------------------------------|-------------------------------------------------------------------------------------------------------------|
|                                      |                                                                                                        |   |
|                                      | By:                                                                                               | /S/                  RANDALL R. CARPENTER   |
|                                      | Randall                  R. Carpenter                                                                       |
|                                      | Title:                    President                                                                    |
|                                      |                             (Principal Executive Officer) |

|  November                  14, 2008 |                                                                                                                                                                                                                                                                                              |                                    |
|------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
|                                     | By:                                                                                                                                                                                                                                                                                     | /S/                  DUANE JAMES   |
|                                     | Duane                  James                                                                                                                                                                                                                                                                      |
|                                     | Title:                    Vice President - Finance                            (Principal Financial Officer and                            Principal Accounting                  Officer) |

----