<PAGE>

 PRESS REALTY ADVISORS CORPORATION-10QSB-QUARTERLY REPORT DATE FILED 2/21/2001
 -----------------------------------------------------------------------------



                    U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON D.C. 20549

(Mark One)

          (X)      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

                   For the quarterly period ended December 31, 2000

          ( )      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES AND EXCHANGE ACT OF 1934

             For the transition period from ____________ to ___________


                        Commission File Number 0-25127

                      PRESS REALTY ADVISORS CORPORATION
       -----------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)


            Nevada                                              95-4592066
---------------------------------                          -------------------
  (State or other jurisdiction                                (IRS Employer
Of Incorporation or organization)                          Identification No.)


         1939 South 3/rd/ West, Suite 103, Salt Lake City, Utah 84115
         ------------------------------------------------------------
                   (Address of principal executive offices)


                                 801-994-8474
                          ---------------------------
                          (Issuer's telephone number)

                                NOT APPLICABLE
            -------------------------------------------------------
            (Former name, former address and former fiscal year, if
                          changed since last report)

     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (Or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

                                                  Yes _____    No      X
                                                                     -----

As of December 31, 2000, the Company had 24,276,000 shares of its $.001 par
value common stock issued and outstanding.
<PAGE>

                        PART 1 - FINANCIAL INFORMATION

ITEM 1.   Financial Statements

<TABLE>
<CAPTION>
                                                                                                           PAGE
<S>                                                                                                        <C>
Unaudited Reviewed Condensed Balance Sheet at December 31, 2000........................................       2
Unaudited Reviewed Condensed Statements of Operation for the three month...............................       3
     Period Ended December 31, 2000 and December 31, 1999 Unaudited Condensed
Reviewed Statements of Cash Flows for the three month
     Period ended December 31, 2000....................................................................       4
Noted to Condensed Financial Statements................................................................       5
</TABLE>

                                       1
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                 Consolidated Balance Sheet-September 30, 2000
                                  (Unaudited)


                                    ASSETS
                                    ------

Current Assets:
         Cash and Equivalent                                        $   70,495
                                                                    ----------

                Total Current Assets                                    70,495

Fixed Assets - Real Property                                           863,223
                                                                    ----------

         Total Assets                                               $  933,718
                                                                    ----------

                  LIABILITIES AND SHAREHOLDERS EQUITY
                  -----------------------------------

Current Liabilities:
         Accounts Payable                                           $   83,251
         Notes Payable (Current Portion)                               682,463
         Other Current Liabilities                                      35,930
         Deferred Revenue                                              585,699
                                                                    ----------

                Total Liabilities                                   $1,387,343
                                                                    ----------

Shareholders Equity

         Common Stock, 50,000,000 authorized $.001 par value,
         24,276 shares issued and outstanding                       $   24,276
         Additional Paid in Capital                                    (49,101)
         Stock Subscription Payable                                     85,000
         Deficit Accumulation during the development stage            (513,600)
                                                                    ----------
                Total Shareholder's Equity (Deficit)                $( 453,625)
                                                                    ----------

         Total Liabilities and Shareholders Equity                  $  933.718
                                                                    ----------

                                       2
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                            Statement of Operations
                                  (Unaudited)


                                            Three months ended
                                    Sept. 30, 2000    Sept. 30, 1999

Revenue                                $     -0-         $     -0-

Gross Profit                                  0-               -0-

Operating Expenses                        92,380           53,001
                                       ---------         --------

Operating Loss                         $  92,380         $ 53,001
                                       ---------         --------

Other Income (Expense)
         Miscellaneous Income            117,818              608
         Lease Income                     13,267
         Interest Expense                (31,681)         (20,017)
                                       ---------         --------

Total Other Income (Expense)           $  99,404         $(19,409)
                                       ---------         --------

Net Income (Loss) Before Taxes         $   7,024         $ 72,410)

         Provision for Income Tax           (100)
                                       ---------         --------

Net Income (Loss)                      $   6,924         $ 72,410
                                       ---------         --------

Basic and Diluted Net

Loss Per Share                         $      -0-        $     -0-
                                       ---------         --------

Average Number of Common Shares Outstanding 24,043,060
The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                            STATEMENT OF CASH FLOWS
                                  (Unaudited)

Cash Flow From Operating Activities

         Net Income                                                $   6,924
         Adjustments to reconcile net loss to net

Cash provided by operating activities
         (Decrease)Increase in accounts receivable                    25,459
         Increase in loans receivable                                (16,870)
         (Decrease) Increase in accounts payable                     (81,476)
         (Decrease) Increase in deposits                               5,000
         (Decrease) Increase in payroll liabilities                   (1,422)
         Increase in deposits payable                                 (1,000)

                                                                   ---------

Net Cash Provided (Used) by Operating Activities                    ($61,385)

CASH FLOW FROM INVESTING ACTIVITIES

         Cash distribution in acquisition                           ($63,302)
         Cash paid to improve fixed assets                         ($101,955)
                                                                   ---------

                  Net Cash Used by Investing Activities            ($165,257)
                                                                   ---------

CASH FLOW PROVIDED BY INVESTING ACTIVITIES

         Cash proceeds from subscription payable                      10,000
         Cash payment on notes payable-related party                  16,157
         Repayment of notes payable                                    7,193
                                                                   ---------

                  Net Cash Provided by Financing Activities         ($13,350)
                                                                   ---------

                                       4
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                    Notes to Unaudited Financial Statements

1. BASIS OF PRESENTATION AND ORGANIZATION

Basis of Presentation

     The accompanying financial statements of Press Realty Advisors Corporation
("the Company") for the three months ended December 31, 2000 and December 31,
1999 have been prepared in accordance with generally accepted accounting
principles and with the instructions to Form 10-Q and Article 10 of Regulation
S-X. These financial statements not been audited by independent auditors, but
have been reviewed by them, but include all adjustments (consisting of normal
recurring adjustments) which are, in Management's opinion, necessary for a fair
presentation of the financial condition, results of operations and cash flows
for such periods. However, these results are not necessarily indicative of
results for any other interim period or for the full year.

     Certain information and footnote disclosures normally included in financial
statements in accordance with generally accepted accounting principles have been
omitted pursuant to requirements of the Securities and Exchange Commission.
Management believes that the disclosures included in the accompanying interim
financial statements and footnotes are adequate to make the information not
misleading.

Organization

The accompanying financial statement consists of Press Realty Advisors
Corporation, a Nevada corporation

Principals of Consolidation
---------------------------

         Not applicable

Interim Periods
---------------

The accompanying unaudited financial statements have been prepared in accordance
with the instructions of Form 10QSB, to the best of the Company's ability due to
a lack of some information of the prior operations of the Company, and do not
include all of the information required by generally accepted accounting
principles for complete financial statements. In the opinion of the Company's
management, all adjustments (consisting of normal recurring adjustments)
considered necessary for a fair presentation have been included. Operating
results for the three months ended December 31, 2000 are not necessarily
indicative of results for the future periods.

RECLASSIFICATION

Certain amounts in the previously presented financial statement have been
reclassified to conform to the current period presentation.

SUPPLEMENTAL CASH FLOW INFORMATION

         Supplemental Cash Flow Information               Three Months Ending
                                                            December 31, 2000

Cash paid for:
         Interest                                                       $ -0-

                                       5
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                   (Notes to Unaudited Financial Statement)


NET INCOME (LOSS) PER SHARE

     In accordance with Statement of Financial Accounting Standards ("SFAS')
No. 128, "Earnings Per Share," basic net income per share is computed by
dividing the net income attributable to common shareholders by the weighted
average number of common shares outstanding during the period. Diluted net
income per common share is computed by dividing the net income attributable to
common shareholders by the weighted average number of common and common share
equivalents outstanding during the period.

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS

In April, 1998, the American Institute of Certified Public Accounts ("AICPA")
issued Statement of Position ("SOP") 98-5 entitled "Reporting on the Costs of
Start-Up Activities." SOP 98-5 requires entities to expense as incurred all
start-ups that are not otherwise capitalized as long-lived. The Company had
previously accepted the "SOP" as to all related costs.

STOCK OPTIONS
-------------

There are no outstanding stock Options

ITEM 2.  Managements Discussion and Analysis or Plan of Operation

The Company is continuing forward in the development and marketing of its real
estate holdings. This includes planned development of approximately 200,000
square feet of flex space in the Salt Lake City market. In addition, the Company
has purchased additional land for further development near the planned
development mentioned. To bring these and other developments to fruition, the
Company is actively negotiating with a number of financial partnerships and
investors to further develop their real estate holdings.

It is also the Company's intention to create additional value by entering other
profitable markets. The Company is negotiating in becoming a franchisee of a
highly successful restaurant chain. The Company's intention is to build and
develop the properties as well as own the restaurants. This would allow the
Company to further develop its real estate holdings as well as creating
additional income through the restaurant ventures.

ITEM 3.  Management's Discussion and analysis of Financial Condition and
Results of Operations.

The Company has been able to obtain funding for its operation through private
lenders or banks. The Company and its officers and directors have and will
continue to personally guarantee the loans being sought. The Company has been
able to take advantage of financing through private lenders and banks to develop
income producing properties and have been successful in selling some of the
described properties listed in the Company's Annual Report.

The Company is actively negotiating with number of potential financial partners
and is actively seeking investors to reduce the Company's serviceable debt and
allow the purchase or development of additional income producing properties.

The Company is currently developing and marketing it's properties and has had
significant interest in the projects under development. It is the Company's
priority to develop, lease and or sell its properties as soon as possible in
order to develop a substantial income stream.

                                       6
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                   (Notes to Unaudited Financial Statement)

Results of Operations

1. The Company owns a one-half interest in a 51,200 square foot office/warehouse
building currently under construction located at 1490 North 2200 West, Salt Lake
City, Utah. The Company will have its corporate offices located at this location
upon its completion. The Salt Lake offices of NAI Commercial is marketing the
property for the Company. They are extremely active in this market and are
responsible for leasing over 1,000,000 square feet of similar product in the
Salt Lake Valley. The property when fully leased will generate a Net Operating
Income of approximately $310,000, representing a value of the total property of
$3,350,000. The estimated cost to the Company is $2,445,000. Therefore, the
Company's one-half interest in the project should be worth $1,675,000 with debt
of $1,222,500.

2. The Company also owns 4.445 acres of land located directly east of the
property described above, which front's 330 feet on I-215, a major freeway
running through Salt Lake Valley. An appraisal of the property dated September
28, 1999 gives a value indication of $817,000.00, or approximately $4.22 per
square foot. The Company's cost for the property was approximately $223,000. It
is the Companies intention to build the same type of office/warehouse building
described above. The building will be larger, approximately 59,870 square feet
and when fully leased will generate a Net Operating income of $364,370,
representing a total property value of $3,900,000. The Company expects to begin
development, estimated spring/summer 2000, on this site as soon as its first
building is significantly leased.

4. The Company has successfully purchased, a parcel of property consisting of
28.65 acres, which is located at 1700 North 2200 West, Salt Lake City, Utah. The
property borders the 7.625 acres noted above. It is the Companies intention to
build two additional office/warehouse buildings on five acres of the 28.65
acres. The amount of lease space for the two buildings would be approximately
91,000 square feet. These buildings when fully leased would generate a Net
operating income of $675,172 per year, representing a total value for the two
buildings of $7,250,000. The Company intends to master plan the remaining
acreage, approximately 23 acres, and either sell the proposed development or
hold the land for future development by the Company. The Company is also
actively pursuing "build to suit" opportunities which it may include in the
total development of the above described acreage.

5. The Company owns 1.82 acres of land located at 3588 South 7200 West, Salt
Lake City, Utah. An appraisal of the property dated December 29, 1998 gives a
value indication of $370,000 or $4.72 per square foot at that time. It is the
intention of the Company to find a "build to suit" retail client for this
parcel. The Company's cost was $90,000.

Resources Liquidity and Capital

The Company has operated on funds generated by the sale of properties in the
second quarter of 2000 ending June 30, 2000, as noted in the year-end report, as
well as, compensation for overhead expenses occurred during the development of
the West Point Business Center.

In addition, the Company has successfully negotiated and secured a $1,000,000
(One Million Dollar) investment note payable in monthly installments of $33,230
from Corporate Ventures L.L.C. located in Nuevo, California. The company is
current in the receipt of all payments due in the note described. Terms and
conditions of the note are found in the Companies reviewed financial statements.

                                       7
<PAGE>

PART 11 - OTHER INFORMATION

Item 1.  Legal Proceedings.

         Not Applicable

Item 2.  Changes in Securities and Use of Proceeds.

         None

Item 3.  Defaults Upon Senior Securities

         Inapplicable

Item 4.  Submission of matters to a Vote of Security Holders

         Inapplicable

Item 5.  Other Information

         Inapplicable

Item 6.  Exhibits and Reports

         Reviewed Financial Statement of December 31, 2000

SIGNATURE

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, hereunto duly
authorized.

PRESS REALTY ADVISORS CORPORATION
---------------------------------


Date: February 6, 2001               By:


                                             /s/ David Murdock
                                     --------------------------------
                                                 David Murdock,
                                     Its: Chief Executive Officer and Chairman


<PAGE>

                        PRESS REALTY ADVISORS CORPORATION
                                 Balance Sheets

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                                 December 31,        June 30,
                                                                    2000               2000
                                                           ------------------  ------------------
                                                               (Unaudited)
<S>                                                        <C>                 <C>
CURRENT ASSETS

   Cash                                                    $           53,348  $          293,617
   Accounts receivable                                                 25,136              25,459
   Deposits                                                                 -               5,000
   Loans receivable                                                    18,131                   -
   Prepaid interest                                                    12,611                   -
                                                           ------------------  ------------------
     Total Current Assets                                             109,226             324,076
                                                           ------------------  ------------------
FIXED ASSETS

   Construction in Progress                                           421,560             405,159
   Land (Note 8)                                                    2,945,434             292,807
                                                           ------------------  ------------------
     Total Fixed Assets                                             3,366,994             697,966
                                                           ------------------  ------------------
     TOTAL ASSETS                                          $        3,476,220  $        1,022,042
                                                           ==================  ==================
</TABLE>
<PAGE>

                        PRESS REALTY ADVISORS CORPORATION
                           Balance Sheets (Continued)

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                 ----------------------------------------------
<TABLE>
<CAPTION>
                                                                               December 31,           June 30,
                                                                                   2000                 2000
                                                                            ------------------  ------------------
                                                                                (Unaudited)
<S>                                                                        <C>                  <C>
CURRENT LIABILITIES

   Accounts payable                                                        $            89,707  $          164,727
   Notes payable (Note 7)                                                              613,346             594,981
   Notes payable - related parties (Note 6)                                             53,726             110,831
   Payroll liabilities                                                                  20,982              14,852
   Deposits payable                                                                     10,588               9,588
   Tax penalties payable                                                                   872              11,913
   Deferred revenue                                                                    430,094             585,699
   Accrued interest                                                                     64,999                 -
                                                                            ------------------  ------------------
     Total Current Liabilities                                                       1,284,314           1,492,591
                                                                            ------------------  ------------------
LONG-TERM DEBT

   Notes payable (Note 7)                                                            2,744,422                 -
                                                                             ------------------  ------------------
     Total Long-Term Debt                                                            2,744,422                 -
                                                                             ------------------  ------------------
     Total Liabilities                                                               4,028,737           1,492,591
                                                                             ------------------  ------------------

STOCKHOLDERS' EQUITY (DEFICIT)

   Common stock, $0.001 par value; 50,000,000 shares
    authorized, 24,276,000 shares issued and outstanding                                24,276              24,276
   Additional paid-in capital                                                          (49,101)            (49,101)
   Stock subscribed (Note 5)                                                         1,085,000              75,000
   Stock subscription receivable (Note 5)                                             (936,961)                -
   Accumulated deficit                                                                (675,731)           (520,724)
                                                                            ------------------  ------------------
     Total Stockholders' Equity (Deficit)                                             (552,517)           (470,549)
                                                                            ------------------  ------------------
     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY (DEFICIT)                                                      $        3,476,220  $        1,022,042
                                                                            ==================  ==================
</TABLE>
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                           Statements of Operations
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                        For the                              For the
                                                   Six Months Ended                    Three Months Ended
                                                     December 31,                           December 31,
                                         -------------------------------------   -------------------------------------
                                                2000              1999                 2000               1999
                                         ------------------  -----------------   -----------------  ------------------
<S>                                      <C>                 <C>                  <C>               <C>
REVENUES

    Net sales                            $          431,080  $            -      $         431,080  $             -
    Cost of goods sold                             (424,326)              -               (424,326)               -
                                         ------------------  -----------------   -----------------  ------------------
       Gross Profit                                   6,754               -                  6,754                -
                                         ------------------  -----------------   -----------------  ------------------
EXPENSES

    Loan closing and origination                     17,885             29,122              17,885                -
    Commissions                                      53,675             12,659              44,860              12,659
    General and administrative                       73,309             62,891              49,758              39,012
    Payroll and payroll tax expense                 110,214                -                50,200                -
                                         ------------------  -----------------   -----------------  ------------------
       Total Expenses                               255,083            104,672             162,703              51,671
                                         ------------------  -----------------   -----------------  ------------------
LOSS FROM OPERATIONS                               (248,329)          (104,672)           (155,949)            (51,671)
                                         ------------------  -----------------   -----------------  ------------------
OTHER INCOME (EXPENSES)

    Interest income                                  11,393                -                11,393                -
    Miscellaneous income                            122,342                608               4,524                -
    Lease income                                     39,569                -                26,302                -
    Interest expense                                (79,882)           (50,802)            (48,201)            (30,785)
                                         ------------------  -----------------   -----------------  ------------------
       Total Other Income (Expenses)                 93,422            (50,194)             (5,982)            (30,785)
                                         ------------------  -----------------   -----------------  ------------------
NET (LOSS) BEFORE INCOME
 TAXES                                             (154,907)          (154,866)           (161,931)            (82,456)
                                         ------------------  -----------------   -----------------  ------------------
PROVISION FOR INCOME TAXES                              100                -                   -                  -
                                         ------------------  -----------------   -----------------  ------------------
NET (LOSS)                               $         (155,007) $        (154,866)  $        (161,931) $          (82,456)
                                         ==================  =================   =================  ==================
BASIC (LOSS) PER SHARE                   $            (0.01) $           (0.01)  $           (0.01) $            (0.00)
                                         ==================  =================   =================  ==================
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING                           24,043,060         24,000,000          24,043,060          24,000,000
                                         ==================  =================   =================  ==================
</TABLE>
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                 Statements of Stockholders' Equity (Deficit)

<TABLE>
<CAPTION>
                                                                        Additional                      Stock
                                                Common Stock             Paid-in         Stock       Subscription    Accumulated
                                            --------------------
                                            Shares        Amount         Capital       Subscribed     Receivable       Deficit
                                            ------        ------        ----------     ----------    ------------    -----------
<S>                                       <C>            <C>            <C>            <C>           <C>             <C>
Balance at inception on
 December 16, 1998                                 -     $      -       $       -     $        -      $       -       $       -

Common stock issued for initial
 capitalization                           19,200,000       19,200         (18,200)             -              -               -

Net loss for the year ended
 June 30, 1999                                     -            -               -              -              -        (100,016)
                                          ----------     --------       ---------     ----------      ---------       ---------

Balance, June 30, 1999                    19,200,000       19,200         (18,200)             -              -        (100,016)

Recapitalization                           4,800,000        4,800         (58,625)             -              -               -

Common stock issued in lieu of
 debt                                         26,000           26          12,974              -              -               -

Common stock issued for services
 rendered                                    250,000          250          14,750              -              -               -

Stock subscribed                                   -            -               -         75,000              -               -

Net loss for the year ended
 June 30, 2000                                     -            -               -              -              -        (420,708)
                                          ----------     --------       ---------     ----------      ---------       ---------
Balance, June 30, 2000                    24,276,000       24,276         (49,101)        75,000              -        (520,724)

Stock subscribed (unaudited)                       -            -               -         10,000              -               -

Stock subscribed/receivable
 (unaudited)                                       -            -               -      1,000,000     (1,000,000)              -

Receipt of stock subscription
 receivable (unaudited)                            -            -               -              -         63,039               -

Net loss for the six months
 ended December 31, 2000
 (unaudited)                                       -            -               -              -              -        (155,007)
                                          ----------     --------       ---------     ----------      ---------       ---------
Balance, December 31, 2000
 (unaudited)                              24,276,000     $ 24,276       $ (49,101)    $1,085,000      $(936,961)      $(675,731)
                                          ==========     ========       =========     ==========      =========       =========
</TABLE>
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                           Statements of Cash Flows
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                          For the                            For the
                                                                      Six Months Ended                  Three Months Ended
                                                                        December 31,                       December 31,
                                                              ---------------------------------  ---------------------------------
                                                                   2000              1999             2000              1999
                                                              ---------------   ---------------  ---------------   ---------------
<S>                                                           <C>               <C>              <C>               <C>
CASH FLOW FROM OPERATING ACTIVITIES

   Net loss                                                   $      (155,007)  $      (154,866) $      (161,931)  $       (82,456)
   Changes in operating assets and liabilities:
     (Increase) decrease in accounts receivable                           323            (1,500)         (25,136)           (1,500)
     (Increase) in loans receivable                                   (18,131)           11,194           (1,261)           11,194
     (Increase) in prepaid interest                                   (12,611)                -          (12,611)                -
     (Decrease) increase in accounts payable                          (75,020)                -            6,456                 -
     Decrease in deposits                                               5,000             6,554                -             6,554
     Increase in accrued interest                                      64,999            16,533           64,999             2,300
     (Decrease) increase in payroll liabilities                         6,130            10,713            7,552          (310,129)
     Increase (decrease) in deferred revenue                         (155,605)                -         (155,605)              128
     Increase in deposits payable                                       1,000                 -                -                 -
     Increase (decrease) in taxes payable                             (11,041)          (10,584)         (11,041)                -
                                                              ---------------   ---------------  ---------------   ---------------

       Net Cash (Used) by Operating Activities                       (349,963)         (121,956)        (288,578)         (373,909)
                                                              ---------------   ---------------  ---------------   ---------------

CASH FLOW FROM INVESTING ACTIVITIES

   Construction in progress                                           (16,401)         (332,909)         (16,401)         (332,913)
   Cash paid for land development                                    (288,084)         (128,378)        (288,084)                -
   Cash distribution in acquisition                                   (63,302)                -                -                 -
   Cash paid to improve fixed assets                                 (101,955)                -                -                 -
                                                              ---------------   ---------------  ---------------   ---------------

       Net Cash (Used) by Investing Activities                       (469,742)         (461,287)        (304,485)         (332,913)
                                                              ---------------   ---------------  ---------------   ---------------

CASH FLOW FROM FINANCING ACTIVITIES

   Additional paid-in capital                                               -            38,000                -            37,000
   Cash proceeds from notes payable                                   796,138           523,177          796,138           685,919
   Cash proceeds from stock subscriptions                              73,039                 -           63,039                 -
   Cash proceeds from notes payable - related party                         -                 -                -                 -
   Cash payment on notes payable - related party                      (57,105)           42,551          (40,948)           (3,012)
   Repayment of notes payable                                        (232,636)           (8,775)        (225,443)                -
                                                              ---------------   ---------------  ---------------   ---------------

       Net Cash Provided by Financing Activities                      579,436           594,953          592,786           719,907
                                                              ---------------   ---------------  ---------------   ---------------

NET DECREASE IN CASH                                                 (240,269)           11,710             (277)           13,085

CASH AT BEGINNING OF PERIOD                                           293,617                 -           53,625            (1,375)
                                                              ---------------   ---------------  ---------------   ---------------

CASH AT END OF PERIOD                                         $        53,348   $        11,710  $        53,348   $        11,710
                                                              ===============   ===============  ===============   ===============

Supplemental Disclosures:

   Interest paid                                              $        79,882   $             -  $        37,241   $             -
   Income taxes paid                                          $             -   $             -  $             -   $             -
</TABLE>
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                       Notes to the Financial Statements
                      December 31, 2000 and June 30, 2000

NOTE 1 -  ORGANIZATION

          Press Realty Advisors Corporation, (the "Company") was incorporated
          under the laws of the State of Nevada, under the name Tercero
          Corporation, on November 6, 1995. The Company is authorized to do any
          legal business activity as controlled by Nevada law. The Company
          originally elected the fiscal year ended on September 30, but in
          fiscal year 1999 elected to adopt a June 30 year end.

          The Company is engaged in the business of acquiring, developing and
          managing high potential real estate properties. As this process has
          not yet produced a reliable, long-term source of revenues, the Company
          intends to seek after additional capital and to form financial
          partners to supply the needed capital.

          On July 1, 1999, the Company (then under the name of Tercero
          Corporation) consummated an Agreement and Plan of Reorganization
          whereby the Company acquired Press Realty Advisors, LLC ("Press") in
          exchange for 19,200,000 restricted shares of the Company's common
          stock. Press was originally organized under the laws of the state of
          Utah on December 16, 1998. The Company then changed its name to Press
          Realty Advisors Corporation. Immediately prior to the Agreement and
          Plan of Reorganization, the Company had 19,200,000 shares of common
          stock issued and outstanding.

          The acquisition was accounted for as a recapitalization of Press
          because subsequent to the acquisition, the shareholders of Press
          controlled the surviving entity. Therefore, Press is treated as the
          acquiring entity. There was no adjustment to the carrying value of the
          assets or liabilities of Press in the exchange. The Company is
          appropriately classified as the acquiring entity for legal purposes,
          whereas Press is the surviving entity for accounting purposes.

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          The Company uses the accrual basis of accounting for financial
          reporting, in accordance with generally accepted accounting
          principles.

          a. Use of Estimates

          In preparing financial statements in conformity with generally
          accepted accounting principles, management is required to make
          estimates and assumptions that affect the reported amounts of assets
          and the disclosure of contingent assets and liabilities at the date of
          the financial statements and revenues and expenses during the
          reporting period. Actual results could differ form these estimates.

          b. Revenue Recognition

          The Company is engaged in the business of acquiring, developing and
          managing high potential real estate properties. The Company recognizes
          revenue on the sale of these properties only when 100% of its
          obligations pertaining to the specific properties have been fulfilled,
          and the related contracts are satisfied in full.
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                       Notes to the Financial Statements
                      December 31, 2000 and June 30, 2000

NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

          c. Statements of Cash Flows

          The Company prepares its statement of cash flows using the indirect
          method as defined under Financial Accounting Standards Board Statement
          No. 95. For purposes of the statements of cash flows, the Company
          considers all highly liquid investments with a maturity of three
          months or less to be cash equivalents.

          d. Income Taxes

          The Company accounts for income taxes in accordance with Financial
          Accounting Standards Board Statement No. 109. As of June 30, 2000, the
          Company has a net operating loss carryforward of approximately
          $470,000 to reduce future taxable income. To the extent not utilized,
          the NOL carryforward will begin to expire in fiscal year 2020. The
          future tax benefit of the NOL has been offset by a valuation allowance
          in full.

          e. Basic Earnings (Loss) Per Share

          Basic earnings (loss) per share has been calculated based on the
          weighted average number of shares of common stock outstanding during
          the period.

<TABLE>
<CAPTION>
                                                         For the                             For the
                                                     Six Months Ended                   Three Months Ended
                                                       December 31,                        December 31,
                                              --------------------------------   ---------------------------------
                                                   2000             1999              2000              1999
                                              ---------------  ---------------   ---------------  ----------------
              <S>                             <C>              <C>               <C>              <C>
              Basic loss per share:

                 Numerator - net income
                   (loss)                     $      (155,007) $      (154,866)  $      (161,931) $        (82,456)
                 Denominator - weighted
                   average number of
                   shares outstanding              24,043,060       24,000,000        24,043,060        24,000,000
                                             ----------------  ---------------   ---------------  ----------------

                 Earnings (loss) per
                   share                     $          (0.01) $         (0.01)  $         (0.01) $          (0.00)
                                             ================  ===============   ===============  ================
</TABLE>

NOTE 3 -  GOING CONCERN

          The Company's financial statements are prepared using generally
          accepted accounting principles applicable to a going concern which
          contemplates the realization of assets and liquidation of liabilities
          in the normal course of business. However, the Company has not yet
          developed a consistent, reliable source of revenues sufficient to
          cover its operating costs and to allow it to continue as a going
          concern. It is the intent of the Company to continue to seek
          additional funding opportunities and financial arrangements in order
          to continue its real estate development projects.
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                       Notes to the Financial Statements
                      December 31, 2000 and June 30, 2000

NOTE 4 -  COMMON STOCK

          The Company amended its Articles of Incorporation in 1996 to increase
          the authorized number of shares to 50,000,000.

NOTE 5 -  STOCK SUBSCRIBED/RECEIVABLE

          On October 25, 1999, the Company entered into an agreement with a
          related party under which the Company was to receive $75,000 funding
          in exchange for 450,000 restricted shares of the Company's common
          stock. As of June 30, 2000, the Company had received the entire
          $75,000 as a part of the agreement, but had not yet issued any shares
          of its common stock under this arrangement. On July 7, 2000, the
          Company received $10,000 funding in exchange for 62,500 restricted
          shares of common stock. As of December 31, 2000, the Company had not
          issued these shares of common stock. On November 13, 2000, the Company
          entered into an agreement whereby the Company would receive $1,000,000
          plus 8% interest payable to the Company at $33,215 per month. As funds
          are received, common stock will be issued at a rate of one share for
          every $0.20 received. Upon receiving the entire $1,000,000 (plus
          interest), the Company will issue a total of 5,000,000 shares. As of
          December 31, 2000, $63,039 had been received under the promissory
          note, however, none of the shares of stock had been issued.

NOTE 6 -  RELATED PARTY TRANSACTIONS

          At June 30, 2000 and December 31, 2000, the Company had four notes
          payable to related parties totaling $110,831 and $53,726,
          respectively. None of the notes have formal payment structures or note
          documents. Due to the lack of specific terms, the entire balance of
          each note is classified as current.

NOTE 7 -  NOTES PAYABLE

          Notes payable consisted of the following:

<TABLE>
<CAPTION>
                                                                                  December 31,         June 30,
                                                                                      2000               2000
                                                                                  -------------      -------------
                                                                                   (Unaudited)
              <S>                                                                 <C>                <C>
              Note payable to America First Credit Union bearing
               11.5% interest, secured by land, due May 31, 2001.                 $           -      $      85,084

              Note payable to related party (Note 7) bearing 7%
               interest, unsecured, due on demand.                                       37,000             37,000

              Note payable to Castle Funding (an equal partnership
               of five small LLC's) bearing 18% interest, secured
               by land, due October 13, 2000.                                                 -            140,000

              Note payable to Cornerstone Realty, bearing interest
               at the rate of prime plus 3%, secured by land, due
               July 1, 2001.                                                             69,845             66,178
                                                                                  -------------      -------------

              Balance forward                                                     $     106,845      $     328,262
                                                                                  -------------      -------------
</TABLE>
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                       Notes to the Financial Statements
                      December 31, 2000 and June 30, 2000


NOTE 7 - NOTES PAYABLE (Continued)

<TABLE>
<CAPTION>
                                                                                      December 31,       June 30,
                                                                                        2000               2000
                                                                                  -----------------   --------------
                                                                                     (Unaudited)
<S>                                                                               <C>                 <C>
              Balance forward                                                     $     106,845       $    328,262

              Note payable to the estate of Ed Gilmore, bearing
               7.5% interest, secured by land, due April 27, 2001.                      157,500            160,412

              Note payable to Home Credit Bank bearing 14%
               interest, secured by land, due February 1, 2001.                         135,000            143,307

              Note payable to Holladay Bank & Trust bearing
               interest at the rate of 11%, due October 24, 2002.                       545,137                  -

              Note payable to B Asco, LLC, bearing interest at the rate of 3%
               over index, due December 31, 2001.                                       251,000                  -

              Promissory note payable to Property Reserve, Inc.
               bearing interest at the greater of (a) 8% or First
               Security prime rate, due on October 26, 2005.                          2,199,285                  -

              Note payable to related party (Note 7) bearing 8%
               interest, unsecured, due on demand.                                       16,727             68,652

              Note payable to related party (Note 7) bearing no
               interest, unsecured, due on demand.                                            -              4,965

              Note payable to related party (Note 7) bearing no
               interest, unsecured, due on demand.                                            -                214
                                                                                   ------------       ------------

                      Total notes payable                                             3,411,494            705,812

                      Less: related party payables                                      (53,726)          (110,831)
                                                                                   ------------       ------------

                      Equals: total notes payable                                     3,357,768            594,981

                      Less: current portion                                            (613,346)          (594,981)
                                                                                  -------------       ------------

                      Total Long-Term Debt                                        $   2,744,422       $          -
                                                                                  =============       ============
</TABLE>
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                       Notes to the Financial Statements
                      December 31, 2000 and June 30, 2000

NOTE 8 - LAND

<TABLE>
<CAPTION>
          Land assets consisted of the following:
                                                                          December 31,       June 30,
                                                                             2000              2000
                                                                         ------------      -----------
                                                                         (Unaudited)
<S>                                                                      <C>              <C>
          4.45 acre plot in Salt Lake City, Utah.  Lot is
           currently being upgraded and improved in
           preparation for the construction of a commercial
           building and subsequent resale.                               $   236,897      $   203,073

          28 acre plot in Salt Lake City, Utah.  Cumulative
           costs of acquisition in progress of 28 acre plot
           in Salt Lake City, Utah.                                        2,618,803                -

          Plot of land in Magna, Utah.  Lot is currently in
           the initial stages of development, and no significant
           improvements have been made.                                       89,734           89,734
                                                                         -----------      -----------

              Total Land Assets                                          $ 2,945,434      $   292,807
                                                                         ===========      ===========
</TABLE>

NOTE 9 - COMMITMENTS AND CONTINGENCIES

          On June 28, 2000, the Company sold a 50% interest in one of its
          development properties for $1,116,000. As a part of this agreement,
          the buyer agreed to assume 50% of the construction loan pertaining to
          the development of this property. The construction loan carries a
          maximum balance of $1,375,000. The Company is responsible for the
          remaining 50% (up to $687,500) of the construction loan, and any
          additional costs required to complete the development of the property.
          The Company recognized $428,500 in deferred revenue as a result of
          this transaction.
<PAGE>

                       PRESS REALTY ADVISORS CORPORATION
                       Notes to the Financial Statements
                      December 31, 2000 and June 30, 2000

NOTE 10 - TAXES ON INCOME

          For the periods ended December 31, 2000 and 1999, the provision for
          federal and state income taxes consisted of the following:


                                         2000           1999
                                        ------         ------
          Current:
               Federal                  $    -         $    -
               State                       100              -
          Deferred:
               Federal                       -              -
               State                         -              -
                                        ------         ------

                                        $  100         $    -
                                        ======         ======

          A reconciliation of income taxes at the federal statutory rate to the
          effective tax rate is as follows:

                                                         2000        1999
                                                      ---------    --------

          Net operating losses                        $  19,690    $      -
          Income taxes computed at the federal
           statutory rate                               (19,690)          -
          State income taxes, net of federal benefit        100           -
          Other, net                                          -           -
                                                      ---------    --------

          Taxes on income                             $     100    $      -
                                                      =========    ========

          The types of temporary differences between the tax basis of assets and
          liabilities that give rise to a significant portion of the deferred
          tax asset and their approximate tax effect are as follows:


                                                        December 31,
                                                 -------------------------
                                                     2000          1999
                                                 -----------    ----------

          Deferred tax asset:
               Net operating losses              $   92,100     $  72,410
               Valuation allowance                  (92,100)      (72,410)
                                                 ----------     ---------

                                                 $        -     $       -
                                                 ==========     =========

          The Company recorded a valuation allowance of $72,410 during 1999
          because the Company determined there was a less than fifty percent
          chance the net operating loss would be used. The net change in the
          valuation allowance increased $19,690 during the interim period ending
          December 31, 2000.