UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                   FORM 10-QSB

                                   (MARK ONE)

    [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

                  FOR QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003

     [ ] 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 0-25658

                        DIGITAL BROADBAND NETWORKS, INC.
        (EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

             DELAWARE                                 84-1357927
  (STATE OR OTHER JURISDICTION OF          (IRS EMPLOYER IDENTIFICATION NO.
  INCORPORATION OR ORGANIZATION)

                     SUITE 11.02, 11TH FLOOR MENARA MERAIS,
                     NO. 1, JALAN 19/3, 46300 PETALING JAYA,
                               SELANGOR, MALAYSIA
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                               011 (603) 7956 7026
                (ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)


              (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 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  X    No

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:


         Class                 Number of shares outstanding at November 11, 2003
        -------            -----------------------------------------------------
Common stock,                            97,928,899
$.00001 par value



                                       1
<PAGE>



FORM 10-QSB
3RD QUARTER
                                      INDEX
<TABLE>
<CAPTION>


                                                                                           Page
<S>                                                                                          <C>
PART I  -  FINANCIAL INFORMATION

         ITEM 1. FINANCIAL STATEMENTS

         Condensed consolidated balance sheet as at September 30, 2003 (Unaudited)           3

         Condensed consolidated statements of operations for
         the three-month and nine-month periods ended September 30, 2003 and
         September 30, 2002 (Unaudited)                                                      4

         Condensed consolidated statements of cash flows for the nine-month
         periods ended September 30, 2003 and September 30, 2002 (Unaudited)                 5

         Notes to condensed consolidated financial statements (Unaudited)                 6 - 14

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS                                    15 - 26

         ITEM 3. CONTROLS AND PROCEDURES                                                    26


PART II - OTHER INFORMATION

         ITEM 1. LEGAL PROCEEDINGS                                                          27

         ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS                                  27

         ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                            27

         ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                        27

         ITEM 5. OTHER INFORMATION                                                          27

         ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                                           27

         SIGNATURES                                                                         28


</TABLE>

SAFE HARBOR STATEMENT

This Form 10-QSB and other reports filed by the Company from time to time with
the Securities and Exchange Commission, as well as the Company's press releases,
contain or may contain forward-looking statements and information that are based
upon beliefs of, and information currently available to, the Company's
management, as well as estimates and assumptions made by the Company's
management. Forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "may", "should", "anticipates",
"estimates", "expects", "future", "intends", "hopes" or "plans" or the negative
thereof. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results of the Company
to vary materially from historical results or from any future results expressed
or implied in such forward-looking statements. Such factors include, among
others, the following: revocation of the Company's license, ability to
successfully implement its business plans, ability to obtain services provided
by other communications companies, the ability of the Company to raise capital
on a timely basis, the Company's business is subject to existing and future
government regulations, failure to retain qualified personnel, competitive
pressures and potentially adverse tax and cash flow consequences resulting from
operating in multiple countries with different laws and regulations, ability to
maintain profitability in the future and general economic and business
conditions in Malaysia. The Company does not undertake to update, revise or
correct any forward-looking statements.


                                       2
<PAGE>

PART I -  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                DIGITAL BROADBAND NETWORKS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2003
                                   (Unaudited)
<TABLE>
<CAPTION>


                                     ASSETS
<S>                                                                                   <C>

Current assets:
     Cash                                                                             $          181,147
     Accounts receivable, less allowance for doubtful accounts of $156,000                     2,120,263
     Other accounts receivable                                                                       552
     Prepaid expenses and other assets (Note 7)                                                  166,518
     Inventories                                                                                   4,712
                                                                                         ---------------
              Total current assets                                                             2,473,192

Furniture and equipment, net                                                                   1,268,353
Goodwill                                                                                         471,150
Long-term receivables, related parties                                                           580,000
                                                                                         ---------------
                                                                                      $        4,792,695
                                                                                         ===============
                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Current portion of capital lease obligations                                     $           58,287
     Accounts payable                                                                            404,956
     Accrued expenses                                                                            102,933
     Amount due to an affiliated company                                                          59,223
     Amount due to a director                                                                     27,449
                                                                                         ---------------
              Total current liabilities                                                          652,848

Capital lease obligations, net of current portion                                                 68,996
Deferred gain                                                                                    580,000
                                                                                         ---------------
              Total liabilities                                                                1,301,844
                                                                                         ---------------
Minority interest                                                                                295,282
                                                                                         ---------------
Commitments and contingencies

Shareholders' equity:
     Preferred stock, $0.10 par value; 1,000,000 shares authorized;
       no shares issued and outstanding
     Common stock, $.00001 par value; 100,000,000 shares authorized;
       98,983,899 shares issued                                                                      989
     Additional paid-in capital                                                                3,609,297
     Treasury stock, 1,055,000 shares at cost                                                    (44,550)
     Options                                                                                      14,800
     Accumulated deficit                                                                        (441,536)
     Accumulated other comprehensive income                                                       56,569
                                                                                         ---------------
              Total shareholders' equity                                                       3,195,569
                                                                                         ---------------
                                                                                      $        4,792,695
                                                                                         ===============

      See accompanying notes to condensed consolidated financial statements
</TABLE>


                                       3
<PAGE>

<TABLE>
<CAPTION>


                DIGITAL BROADBAND NETWORKS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

                                                           Three months ended              Nine months ended
                                                              September 30                   September 30
                                                           2003           2002           2003            2002
                                                         ------         -------        ------          -------
<S>                                                   <C>            <C>             <C>            <C>
Revenues:
     Related parties                                  $     100,262  $     132,724   $     228,026 $      232,724
     Others                                               4,183,137      2,735,790      11,522,768      9,593,440
                                                        -----------    -----------     -----------    -----------
                                                          4,283,399      2,868,514      11,750,794      9,826,164

Cost of revenues                                          3,615,842      2,679,211      10,354,533      9,240,278
                                                        -----------    -----------     -----------    -----------
Gross profit                                                667,557        189,303       1,396,261        585,886
                                                        -----------      -----------   -----------    -----------
Operating expenses:
     Sales and marketing                                      3,835         15,467          19,287         50,798
     General and administrative:
       Related parties                                       15,000         30,000          45,000         90,000
       Others                                               190,894         (3,073)        562,097        391,426
                                                        -----------    -----------     -----------    -----------
Total operating expenses                                    209,729         42,394         626,384        532,224
                                                        -----------    -----------     -----------    -----------
Income from operations                                      457,828        146,909         769,877         53,662
                                                        -----------    -----------     -----------    -----------
Other income (expense):
     Interest expense                                        (2,919)        (3,795)         (9,414)       (12,042)
     Gain on disposal of assets, related party               28,420         78,303          48,157         78,303
     Other income                                                --             --              --            135
                                                        -----------    -----------     -----------    -----------
                                                             25,501         74,508          38,743         66,396
                                                        -----------    -----------     -----------    -----------

Income before minority interest                             483,329        221,417         808,620        120,058
Minority interest                                           (70,767)       (34,069)       (115,828)       (35,915)
                                                        -----------    -----------     -----------    -----------

Net income                                            $     412,562  $     187,348   $     692,792  $      84,143
                                                        ===========    ===========     ===========    ===========

Net income per common share:
     Basic and diluted                                $           *  $           *   $      0.01    $           *
                                                        ===========    ===========     ===========    ===========
Weighted average shares outstanding:
     Basic                                               97,749,551     97,882,964      98,104,372     98,194,539
                                                        ===========    ===========     ===========    ===========
     Diluted                                             97,845,122     98,055,969      98,108,613     98,542,974
                                                        ===========    ===========     ===========    ===========


* Less than $.01 per share

</TABLE>


      See accompanying notes to condensed consolidated financial statements

                                       4
<PAGE>


                DIGITAL BROADBAND NETWORKS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                               Nine Months Ended
                                                                                 September 30
                                                                             2003                 2002
                                                                           --------             --------
<S>                                                                   <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net cash provided by (used in) operating activities              $         463,353     $      (246,873)
                                                                        ---------------        -------------

CASH FLOWS FROM INVESTING ACTIVITIES
     Proceeds from disposal of equipment                                            495                  --
     Purchase of furniture and equipment                                         (1,127)            (16,795)
                                                                        ----------------       ------------
           Net cash used in investing activities                                   (632)            (16,795)
                                                                        ----------------       ------------

CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from exercise of stock options                                      2,805             104,029
     Proceeds from issuance of shares of common stock                            50,000             100,000
     Payment for reacquisition of shares of common stock                        (52,298)           (100,000)
     Net repayment of advances to affiliated company                            (76,246)            225,897
     Net repayment of advances to a director                                   (198,488)            (54,414)
     Payment of obligation under capital leases                                 (17,424)            (11,138)
                                                                        ---------------       -------------
           Net cash (used in) provided by financing activities                 (291,651)            264,374
                                                                        ---------------       -------------

Net increase in cash                                                            171,070                 706
Cash, beginning of period                                                        10,077                 402
                                                                        ---------------       -------------
Cash, end of period                                                   $         181,147     $         1,108
                                                                        ===============       =============

Supplemental disclosure of non-cash financing activities:

Payments on accounts receivable made directly by customers to an
   affiliated company for amounts the Company owed it.                $          35,263     $       402,632
                                                                        ===============       =============

</TABLE>



      See accompanying notes to condensed consolidated financial statements

                                       5
<PAGE>


                        DIGITAL BROADBAND NETWORKS, INC.
          NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2003
                                   (UNAUDITED)

1.       BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Digital
Broadband Networks, Inc. (the "Company") include the accounts of Digital
Broadband Networks, Inc. and its wholly-owned subsidiaries: EyStar Media Inc.
("EMI"), a Delaware corporation, Animated Electronic Industries Sdn Bhd ("AEI"),
a Company incorporated in Malaysia, and AEI's 86% owned Malaysian subsidiary,
Perwimas Telecommunications Sdn Bhd ("PTSB"). All significant intercompany
accounts and transactions have been eliminated on consolidation.

The unaudited condensed consolidated financial statements presented herein have
been prepared in accordance with the instructions to Form 10-QSB and do not
include all the information and note disclosures required by United States
generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting only of normal
recurring adjustments) which are necessary to provide a fair presentation of
financial position, operating results and cash flows for the interim periods
presented have been made. It is the Company's opinion that, when the interim
financial statements are read in conjunction with the December 31, 2002 Annual
Report on Form 10-KSB, the Company's disclosures are adequate to make the
information presented not misleading. The results of operations for the interim
periods presented are not necessarily indicative of the results to be expected
for the entire year.


2.       MANAGEMENT'S PLANS

The Company is a total system solution provider involved in application
development, network operation and delivery of value-added applications and
services, as well as sale of its EyStar SmartHome Console. The multi protocol
EyStar SmartHome Console bridges external data networks such as the Internet to
internal home networks like Ethernet, telephone lines, power lines and the
802.11b wireless LAN eliminating the need for any additional wiring in the home.
The Console will enable more value-added services to be offered to subscribers.
These services include home healthcare in conjunction with hospitals and health
advisors; interconnection and control of appliances produced by different
manufacturers; and security applications that allow subscribers to check on
their homes remotely. This Console is designed to operate on both the narrow and
broadband fixed line/wireless networks. The Company is also a facilities-based
and network service provider of wireless broadband applications and services in
Malaysia.

For the nine-month period ended September 30, 2003, the Company's revenue was
primarily generated from the following activities:

1.   Designing, producing, hosting and distributing interactive multimedia
     content, websites, programs and applications.
2.   Developing and producing e-commerce programs and Internet-based security
     applications and solutions.
3.   Providing project consulting services on broadband communication and
     networking systems for property development projects.


                                       6
<PAGE>


2.   MANAGEMENT'S PLANS (continued)

The Company is also licensed to deploy a wireless broadband network, "VISIONET",
in Malaysia. In November 2000, PTSB entered into a strategic alliance with a
Malaysian Internet service provider. In September 2001, PTSB was awarded an
Application Service Provider (ASP) license by the Malaysian Communications and
Multimedia Commission. Management believes the ASP license will complement the
wireless broadband license previously granted to the Company in 1997. After
establishing the first VISIONET cell in December 2001, the Company had decided
to reposition VISIONET as a backhaul service to other broadband service
providers and local mobile networks that it hopes to deploy with strategic
partners. The Company has now revised its business model and expects to generate
revenues from the sale of backhaul services, EyStar SmartHome consoles,
broadband modems and by providing other services that include:

1.   operating a portal for remote video surveillance and home/office automation
     applications;
2.   construction of owned and operated networks for third parties;
3.   development and operation of local mobile networks that provide mobile
     Internet access through handheld devices;
4.   sale of customized security solutions utilizing the Company's products;
5.   sale of biometric-based security systems; and
6.   production and delivery of training and adult education programs.

As in the establishment of many other new businesses, there are various risk
factors including competition, technology availability and market acceptance.
The Company believes it will require substantial amounts of capital to fully
establish its business.

The Company's plan to improve its profitability centers on expanding its
business in application development, sale of its EyStar SmartHome Console and
the roll out of its portal for remote video surveillance and home/office
automation applications.

The Company believes that sufficient cash will be generated from the following
sources to fund its operations for the next twelve months:

o    Additional revenue provided by: (i) a consulting contract, estimated to
     generate revenue of $2.74 million from January 2003 through August 2005 to
     carry out the planning, design, project execution (including contract and
     project management) of all broadband communications and networking
     systems/services for Pulau Indah-Marina Village. The Company originally
     estimated revenue of $250,000 during 2003, but recognized revenue of
     $500,000 during the nine months ended September 30, 2003 due to faster
     implementation of the project. The Company estimates additional revenue of
     $50,000 in the fourth quarter of 2003, (ii) a contract, which is estimated
     to generate approximately $250,000 of revenue in 2003, of which $205,000
     was recognized during the nine months ended September 30, 2003, to carry
     out the planning, design, project execution of all broadband communications
     and networking systems/services for a commercial/housing project in
     Selangor, Malaysia, (iii) a consulting contract entered into on November 5,
     2002 with a related party, which is expected to generate approximately
     $300,000 of revenue in 2003, of which $214,000 was recognized during the
     nine months ended September 30, 2003, to provide consulting services
     relating to home automation, home networking, energy cost saving, security
     surveillance and monitoring for two major commercial and housing
     developments in Malaysia, (iv) a contract entered into in April 2003 with a
     related party, which is estimated to generate approximately $3.2 million of
     revenue over a 30-month period beginning September 2003, of which $14,000
     was recognized during the three and nine months ended September 30, 2003,
     to carry out the design, supply and installation of all broadband
     communications, access control and network security equipment for a mixed
     property development project in Selangor, Malaysia.

                                       7
<PAGE>


2.   MANAGEMENT'S PLANS (continued)


o    The Company may consider a private placement of its shares.

o    The Company may also seek to obtain equipment financing.

o    Intensification of efforts to collect overdue receivables. The Company
     intends to keep close contact with its debtors to keep updated on their
     liquidity status. Legal action will only be taken as a last resort.

o    Advances from a director/officer who is also a major shareholder if
     required to finance the Company's working capital requirements.


The Company also hopes that additional cash will be generated from:

o    the marketing agreement with Worldlink Dotcom Sdn. Bhd. to distribute its
     service gateway for home/office automation in Malaysia, Singapore and
     Australia;

o    the distribution agreement with Mutual Base Equity Sdn. Bhd. for sale of
     the EyStar SmartHome Console in Malaysia, Singapore and Cambodia;

o    the Channel Partner Agreement with PointRed Technologies;

o    the agreement with Sintec to sell, distribute and promote their remote
     video surveillance cameras;

o    the agreement with Telekom Sales and Services to sell, distribute and
     promote broadband access over standard copper telephone lines using Digital
     Subscriber Line technology in Malaysia;

o    the reseller agreement with FaceKey Corporation to sell FaceKey's
     biometric-based security products;

o    a $9 million contract from Mutual Base Equity Sdn Bhd for the supply of
     biometric security products and EyStar SmartHome console over a three-year
     period, with the first delivery expected to commence in the fourth quarter
     of 2003;

o    a contract, which is expected to commence in the fourth quarter of 2003
     after the finalizing of technical specifications with relevant regulatory
     authorities, to implement a biometric security recognition and
     identification system comprising of hardware, software and the issuance of
     security identity cards over a 10 year period;

o    a $2.0 million contract with a related party to supply and install a
     biometric security system for access control and time attendance in
     Malaysia. The contract is expected to commence in the fourth quarter of
     2003 and be completed within six months from the commencement date. In
     addition to the supply contract, the Company was awarded a maintenance
     contract for 5 years. This maintenance contract begins following the
     completion of the project and is expected to generate annual recurring
     revenue of approximately $250,000; and


                                       8
<PAGE>


2.   MANAGEMENT'S PLANS (continued)

o     a $850,000 contract to supply, install and commission a biometric based
      Building Access Management and Monitoring System for a 40-story office
      complex in Kuala Lumpur, Malaysia. The contract is expected to commence in
      the first quarter of 2004 and be completed by the second quarter of 2004.

With the above plans and barring any unforeseen circumstances, Management
believes the Company will be able to continue to improve profitability.


3.   SIGNIFICANT ACCOUNTING POLICIES

TRANSLATION OF CURRENCIES

The functional currency of the Company's subsidiaries is the Malaysian Ringgit.
The financial statements of these subsidiaries are translated into United States
dollars (USD) using period-end rates of exchange for assets and liabilities, and
average rates of exchange for the period for revenues, costs and expenses.
Translation gains and losses are treated as a component of shareholders' equity.
The reporting currency used in the financial statements is USD unless otherwise
stated.

REVENUE RECOGNITION

Revenue represents the net invoiced value of goods sold or fees earned from the
production of multimedia programs and Intranet and management and consulting
services. The Company recognizes revenue from the sales of goods in the period
when significant risks and rewards of ownership have transferred to its
customers. The Company recognizes revenue from the services provided in the
period in which the services are performed and when there is no significant
uncertainty regarding the consideration to be received and the associated costs
to be incurred.

NET INCOME PER COMMON SHARE

Basic net income per common share is calculated by dividing net income by the
weighted average number of common shares outstanding for the three-month and
nine-month periods ended September 30, 2003 and 2002. Diluted income per common
share reflects additional common shares that would have been outstanding if
dilutive potential common shares had been issued, as well as any adjustment to
income that would result from the assumed issuance. Potential common shares that
may be issued by the Company relate to outstanding stock options and are
determined using the treasury stock method.

GOODWILL

Goodwill, arising from the purchase of PTSB, represents the purchase price paid
and liabilities assumed in excess of the fair market value of tangible assets
acquired. The Company performed a goodwill impairment test in the fourth quarter
of 2002 and determined that there was no goodwill impairment as of that test
date. A goodwill impairment test will be performed annually in the fourth
quarter or upon significant changes in the Company's business environment.



                                       9
<PAGE>


3.   SIGNIFICANT ACCOUNTING POLICIES (continued)


INCOME TAXES

Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related primarily to differences between the recorded book basis and tax basis
of assets and liabilities for financial and income tax reporting. The deferred
tax assets and liabilities represent the future tax return consequences of those
differences, which will either be taxable or deductible when the assets and
liabilities are recovered or settled. Deferred taxes are also recognized for
operating losses that are available to offset future taxable income and tax
credits that are available to offset future federal income taxes.


There was no provision for income taxes for the three-month and nine-month
periods ended September 30, 2003 and 2002, as net income for the three-month and
nine-month periods ended September 30, 2003 and 2002 was offset by a net
operating loss carry forward. At December 31, 2002, the Company had
approximately $2.8 million of net operating loss carry forwards, of which $1.6
million relates to the Company's activities in Malaysia and $1.2 million relates
to the Company's activities in the United States. The Malaysian net operating
loss carry forward can be carried forward indefinitely while the Untied States
net operating loss carry forward expires through the year 2023. The United
States net operating loss carry forward may be subject to annual limitations
based on ownership changes in the Company's common stock as provided by in
Section 382 of the Internal Revenue Code.


INVENTORIES

Inventories, which are comprised of peripherals for surveillance and wireless
communication, are stated at the lower of cost or net realizable value. Cost is
determined on a first-in-first-out basis.

TREASURY STOCK

The Company records treasury stock purchases at cost. The excess of cost over
par value is allocated to additional paid-in capital. The Company reissues stock
from the treasury on a first-in, first-out basis.

ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the balance sheet and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.

BUSINESS RISK

The Company is subject to risks and uncertainties common to technology-based
companies, including rapid technological change, dependence on principal
products and third-party technology, new product introductions and other
activities of competitors, dependence on key personnel, and limited operating
history.


                                       10
<PAGE>


4.   RELATED PARTY ACTIVITY

During the nine-month period ended September 30, 2003, the Company recognized
revenue of $228,026 for project consulting fees from a related party, pursuant
to two consulting contracts entered into on November 5, 2002 and April 2003,
respectively.

During the nine-month period ended September 30, 2003, in lieu of actual cash
payment of project consulting fee receivables from a consulting contract and a
contract to carry out the planning, design, project execution of broadband
communications and networking systems/services for a commercial/housing project,
management directed two customers to pay a total of $30,000 to an affiliated
company to whom the Company had outstanding accounts payable. The net effect to
the Company was that revenue was recognized and recorded payables were reduced
by equal amounts.

At December 31, 2002, long-term receivables, related parties, consisted of
$628,157 due from Synervest Sdn Bhd ("SSB"). This amount primarily arose in the
year ended December 31, 1998 when the Company sold to SSB assets used in the
operations of a subsidiary. Due to the uncertainty of collection of the related
receivable, a related gain on the sale of the assets was deferred and is to be
recognized only after all costs have been recovered and as payments are
received. During the year ended December 31, 2002, payments received by the
Company exceeded all remaining costs. The Company received $28,420 and $48,157
of the outstanding receivable during the three-month and nine-month periods
ended September 30, 2003, resulting in a realization of gain on sale of assets,
related party for those periods. The deferred gain included in the balance sheet
has been reduced accordingly. In lieu of actual cash payment of this Company
receivable, management directed the related party to pay $5,263 of the $48,157
to an affiliated company to whom the Company had outstanding accounts payable.


5.   SHAREHOLDERS' EQUITY

On February 16, 2002, the Company granted options to purchase 60,000 shares of
the Company's common stock at $0.12 per share to a consultant for services to be
provided. These options were originally exercisable in August 2002 through
February 2007, contingent upon continuous service by the consultant through
specified dates. Following the termination of the consultant's service in
December 2002, these options were exercisable through March 2003. These options
were not exercised and have been canceled in 2003.

On September 16, 2002, the Company granted options to purchase 300,000 shares of
the Company's common stock at $0.12 per share to a consultant for services to be
provided to the Company. These options are exercisable through September 2007,
contingent upon continuous service by the consultant through specified dates.
100,000 of the options, which vested March 15, 2003, were valued at $0.044 per
share, 100,000 of the options, which vested May 15, 2003, were valued at $0.048
per share, and the remaining 100,000 options, which vested September 15, 2003,
were valued at $0.056 per share, based upon the Black-Scholes option-pricing
model, resulting in recognition of compensation expense of $8,500 during the
nine-month period ended September 30, 2003.



                                       11
<PAGE>


5.   SHAREHOLDERS' EQUITY (continued)

On December 4, 2002, the Company announced that its Board of Directors had
approved a stock repurchase program for up to 10 million shares from the then
public float of approximately 42.7 million shares which may be repurchased from
time to time. The Company has until December 2003 to execute this stock
repurchase program. Under the program, the Company can purchase shares of common
stock through open market and/or privately negotiated transactions at prices
deemed appropriate by management. The timing and amount of any repurchase
transaction under this program will depend on market conditions and corporate
and regulatory considerations. Through September 30, 2003, the Company
repurchased a total of 1,305,000 shares of its common stock, at an average price
of $0.04, for a total cash consideration of $52,298. These shares were returned
to treasury and are available for re-issuance at a future date. On September 5,
2003, the Company reissued 250,000 shares of common stock from the treasury to a
shareholder at $0.20 per share for a total consideration of $50,000. The shares,
which were issued based on a first-in, first-out basis, were sold in reliance
upon the exemption provided by Regulation S under the Securities Act of 1933, as
amended. As of September 30, 2003, the Company had a balance of 1,055,000 shares
of treasury stocks valued at $44,550 based on an average cost of $0.04 per
share.

On June 13, 2003, an officer of the Company exercised options to purchase 33,000
shares of the Company's common stock at an exercise price of $0.085 per share,
for a total cash consideration of $2,805.


6.   COMMITMENTS AND CONTINGENCIES

As of September 30, 2003, the Company has committed to purchase equipment valued
at $300,000 for the commercial rollout of VISIONET. The purchase is conditional
upon completion of successful trial of the equipment by the Company. The Company
returned this equipment to the vendor in 2002 after trial results showed that
the equipment was not able to perform to the standard expected by the Company.
As of September 30, 2003, the vendor has not proposed to the Company any type of
replacement equipment.

On November 28, 2001, the Company signed an agreement to purchase office space
in Australia for $1.8 million Australian dollars (approximately $1,220,000 USD
at September 30, 2003). Pursuant to the terms of the agreement, the Company paid
a sum of $5,200 as deposit for the above property. As of September 30, 2003, the
Company decided not to proceed with the purchase due to the vendor's inability
to deliver vacant possession of the property. Following termination of the
agreement, the Company expensed the $5,200 non-refundable deposit paid to the
vendor.

In January 2002, the Company signed an agreement to purchase approximately $19
million of equipment over the next five years. These equipment purchases are
subject to inspection and acceptance by the Company depending upon certain
performance standards being satisfactorily met. The vendor has been notified by
the Company that the equipment did not meet the performance standards during the
trial. Following the failure of the vendor to rectify the problems encountered
by the Company, the agreement was terminated on May 19, 2003 and the trial
equipment has been returned to the vendor.


                                       12
<PAGE>


7.   PROPOSED BUSINESS TRANSACTIONS

On September 27, 2002, the Company entered into a letter agreement with the
shareholders of Convergent Technologies, Inc. ("CTI"), a privately held company,
to acquire a majority interest in CTI for approximately $5.0 million. On May 19,
2003, the Company signed a purchase agreement with CTI's shareholders to acquire
the entire outstanding common stock of CTI for $2.6 million. The purchase price
was revised to $2.6 million after the Company had completed its due diligence
and further negotiation with CTI's shareholders. The closing of the agreement
was subject to specific performance by the Company and CTI's shareholders and
could be terminated any time prior to closing by mutual agreement of both
parties. Pursuant to the purchase agreement, CTI's shareholders would receive
$500,000 cash and 500,000 shares of the Company's preferred stock. The Company
expected to fund the cash portion of the purchase through a combination of
internally generated funds and advances from a director who is also the major
shareholder of the Company. On August 25, 2003, the Company announced that it
had completed the acquisition of CTI, subject to certain conditions being met.
As of September 30, 2003, the Company had paid $150,000 to CTI's shareholders as
an advance deposit on the purchase. This amount has been included in the
$166,518 of deposits and other assets on the balance sheet as of September 30,
2003. On November 6, 2003, the Company and CTI's shareholders mutually agreed to
rescind the purchase agreement after CTI did not satisfy all of the conditions
subsequent to the Purchase Agreement as a result of its inability to deliver
title to certain real property in a form acceptable to the Company. Pursuant to
the Rescission Agreement, the stockholders of CTI will refund the $150,000 and
pay an additional $50,000 to the Company as a cancellation fee.

On September 10, 2003, the Company announced that its Malaysian subsidiary, AEI,
has entered into a letter agreement to establish a joint venture company,
Temasya Wira Sdn Bhd ("TWSB"), to undertake the research and development of
biometric security applications. AEI will initially hold 60% of TWSB's equity
while two Malaysian individuals will hold the remaining 40%. AEI's holding will
eventually be diluted to 30% when EMI acquires 30% equity interest in TWSB after
the completion of the joint venture agreement to be executed between the Company
and FaceKey Corporation as described below. TWSB is expected to commence
operation in 2004.

On September 24, 2003, the Company announced that it had executed a Letter of
Intent to form a joint venture with FaceKey Corporation ("FaceKey"). The
definitive agreement, expected to be signed by both parties in the fourth
quarter of 2003, requires FaceKey to acquire a 49% equity interest in EMI. The
terms of the transaction are currently being negotiated. EMI will subsequently
acquire a 30% interest in TWSB. EMI will be used as the joint venture company to
develop a system and applications utilizing FaceKey's face and fingerprint
technologies to verify a live fingerprint and face with data stored in a smart
card, that permits immediate electronic retrieval of information of the
cardholder. The Company and FaceKey will be jointly responsible for marketing
the products globally. In combining its resources with FaceKey and TWSB, the
Company is striving to become a leading provider of biometric system and
applications in Asia.

On October 14, 2003, the Company announced that its subsidiary, AEI, executed a
letter agreement with Asiaco Material Handling Sdn Bhd ("AMH"), to acquire a 51%
equity interest in each of three AMH Malaysian subsidiary companies. On October
30, 2003, the Company and AMH revised the letter agreement, whereby the Company
is expected to purchase the business assets and selected liabilities of AMH and
its nine subsidiary companies along with an option to purchase the entire equity
interest in the remaining fourteen companies in the AMH group. AMH and its
subsidiaries are primarily engaged in supply chain management, land
transportation, secured logistics as well as sale, rental and servicing of
material handling equipment. The acquisition is subject to satisfactory
completion of due diligence and the signing of a definitive agreement. The
purchase price will be based on the value of the selected assets and liabilities
and is subject to further negotiation between the parties. The acquisition will
be funded by internally generated funds and the Company's preferred stock. In
October 2003, AEI paid to AMH a refundable commitment fee of $131,578 for the
proposed acquisition that it hopes to complete in the fourth

                                       13
<PAGE>
quarter of 2003. The commitment fee shall be deducted from the final purchase
price to be determined by AEI when it has completed its verification of AMH's
net asset value.

8.   SIGNIFICANT CONCENTRATIONS OF CREDIT RISK

The Company grants credit, generally without collateral, to its customers. Two
customers accounted for substantially all revenue earned during the nine-month
periods ended September 30, 2003 and 2002. For the nine months ended September
30, 2003 and 2002, one customer accounted for approximately 50% and 51% of
revenue, respectively, and another customer accounted for approximately 42% and
46% of revenue, respectively.

One supplier accounted for substantially all cost of revenue during the
nine-month periods ended September 30, 2003 and 2002. The Company is not
dependent upon one supplier to provide the services that it requires. Since the
fourth quarter of 2001, the Company has made a strategic decision to engage the
services of one sole supplier after taking into consideration the quality of
service and competitive pricing being offered. Should the need arise, the
Company could utilize alternative suppliers for the services that it requires.


                                       14
<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

THE FOLLOWING ANALYSIS OF THE OPERATIONS AND FINANCIAL CONDITION OF THE COMPANY
SHOULD BE READ IN CONJUNCTION WITH THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS, INCLUDING THE NOTES THERETO, OF THE COMPANY CONTAINED ELSEWHERE IN
THIS FORM 10-QSB.


OVERVIEW

Digital Broadband Networks, Inc. and subsidiaries (the "Company") is a system
solution provider involved in application development, broadband network
operation, delivery of value added applications and services; the sale of
devices that utilize broadband networks and the sale of biometric security
devices. The Company's principal operations include the development and
operation of a wireless broadband network in Malaysia, the development of
interactive, multimedia content for the Internet and the development licensing
and/or sale of specific products and applications that utilize the capacities of
a broadband network. These include the EyStar SmartHome Console, broadband
modems, biometric systems and Internet-based cameras.

The Company conducts its principal operations in Malaysia, and has three
subsidiaries as of September 30, 2003: Animated Electronic Industries Sdn Bhd
("AEI"), Perwimas Telecommunications Sdn Bhd ("PTSB") and EyStar Media Inc.
("EMI"). AEI and PTSB are based in Malaysia. EMI is a wholly owned corporation
organized under Delaware law and presently based in Flemington, New Jersey,
through which it intends to expand its presently limited operations in the
United States. AEI is involved in the design, development and production of
multimedia content; provision of consulting services for website development,
network engineering and project management in IT related projects. PTSB, a
86%-owned subsidiary of AEI, provides broadband and application services under
licenses granted by the government of Malaysia. EMI seeks to acquire United
States technology companies and to expand the Company's operations into the
United States.

The accompanying condensed consolidated financial statements include the
accounts of Digital Broadband Networks, Inc. and its subsidiaries: EMI, AEI and
PTSB.

For the nine months ended September 30, 2003, the Company's revenue was
generated primarily from the following activities:

1.   Designing, producing, hosting and distribution of interactive multimedia
     content, websites, programs and applications.
2.   Developing and producing e-commerce programs and Internet-based security
     applications and solutions.
3.   Providing project consulting services on broadband communications and
     networking systems for property development projects.


Significant Business Developments and Plan of Operation

The Company anticipates that it will continue to provide its existing multimedia
development, consulting and broadband services to customers during 2003, and to
market the EyStar SmartHome Console. In addition, the Company plans to introduce
and actively market a new line of security and biometric products capable of
integration with the EyStar SmartHome Console and utilizing the Company's
ability to provide applications support. These products are the SmileCAM and
FaceKey devices. The Company believes that these devices, when linked with the
broadband technology that the Company seeks to exploit, will provide customers
with comprehensive security and identification systems for which it is believed
there will be a significant market.


                                       15
<PAGE>


The Company anticipates that it will continue to seek the rights to new products
and services through contractual arrangements and potentially through the
acquisition of other business entities that provide compatible products or
services. The Company expects to continue to market its products and services
through a sales force and through its Internet websites located at www.dbni.net
and www.eystar.com. As described in more detail below, the Company anticipates
that its primary markets will continue to be in Malaysia and other Asian
countries. However, the Company continues to seek additional markets in North
and South America and has entered into various strategic agreements to improve
the acceptance of its products there.

The Company has secured several new contracts to provide hardware, applications
or consulting services. The Company believes that it will be able to begin
performance of some of these contracts during 2003 and that it will recognize
revenue from these activities in 2003. Due to uncertainties in scheduling,
however, the Company cannot forecast the specific dates on which it will begin
performance of these contracts. These contracts are described in more detail
below.

As a result of the Company's experience in rolling out the first VISIONET cell
in December 2001, management has decided that it will be most advantageous to
the Company to revise its strategy for exploiting its broadband license granted
by the Government of Malaysia. The Company believes that the most effective use
of the VISIONET infrastructure is as a point-to-point backhaul service provider
to other broadband and telecommunications providers. This decision was based on
feasibility studies that were conducted after the VISIONET cell was activated.
During 2003, the Company intends to actively market VISIONET as a backhaul
service provider, rather than as a telecommunications company that provides the
"last mile" service. In particular, the Company has decided to use VISIONET as a
backhaul link for local mobile networks that it plans to attempt to deploy in
partnership with Aptilo Networks, Sweden. With this change in business strategy,
VISIONET will no longer provide the last mile link between a cell based radio
station and retail users. The Company will instead construct a wireless highway
or backhaul linking the cell based radio stations established by existing
telecommunication companies and ISPs. The Company expects to conclude contracts
with a number of telcos and ISPs on the use of VISIONET as a backhaul link
during 2003.

In addition, the Company plans to continue its efforts to exploit the
Application Service Provider (ASP) license granted to its subsidiary PTSB in
September 2001, by the Malaysian Communications and Multimedia Commission. The
ASP license will complement the wireless broadband license granted to the
Company in June 1997. As an ASP, PTSB is permitted to offer enterprise access
over the Internet to applications and related services that would otherwise have
to be located in their computers. The Company anticipates that the ASP service
may become an attractive alternative to locally based applications both for
small and medium enterprises with lower budgets for information technology, and
also for larger companies as a form of outsourcing.

Significant Contracts

For 2003, the Company hopes to generate additional revenue arising from the
contracts described below. This description is intended to provide the reader
with a description of the principal activities of the Company that are
anticipated in 2003. Although the Company provides estimates of the time in
which the contracts will be performed, revenues that may be generated and/or
sales that are projected, there can be no assurance that the contracts will be
performed as anticipated or that the revenues, or sales projected will be
realized by the Company. The contracts may be terminated, limited, breached or
delayed, may be subject to force majeure clauses or the obligations to pay for
services rendered or products received may not be fulfilled.



                                       16
<PAGE>


a)   In August 2001, the Company was awarded a consulting contract, estimated to
     generate revenue of $2.74 million through January 2003, to carry out the
     planning, design, project execution (including contract and project
     management) of all broadband communications and networking systems/services
     for Pulau Indah-Marina Village, a water oriented luxury resort,
     residential, hotel and spa project. Through December 31, 2002, the Company
     generated $109,000 of revenue on this contract. During the three months and
     nine months ended September 30, 2003, the Company recognized additional
     revenue of $333,000 and $500,000 on this contract, respectively. In lieu of
     cash payment, management directed the customer to pay $20,000 of the
     $500,000 recognized to an affiliated company to whom the Company had
     outstanding accounts payable. The net effect to the Company was that
     revenue was recognized and recorded payables were reduced by equal amounts.

b)   In December 2001, the Company entered into a marketing agreement with
     Worldlink Dotcom Sdn. Bhd. (Worldlink) to distribute its service gateway
     for home/office automation in Malaysia, Singapore and Australia. In 2002,
     Worldlink was promoting the Company's service gateway to potential
     resellers and channel partners in the targeted markets. The Worldlink
     contract was projected by the Company to generate revenues of $4.0 million
     in 2003. Worldlink has, however, indicated that additional time is required
     to promote the Company's service gateway and secure orders from its
     resellers and channel partners and the revenue that will be realized during
     2003 cannot be accurately forecast. The gateway bridges the Internet with
     internal home and office networks while facilitating the delivery of home
     and office applications including, but not limited to, security
     surveillance and video conferencing.

c)   In January 2002, the Company appointed Mutual Base Equity Sdn. Bhd. (MBE)
     as one of its distributors in Malaysia and Singapore for sale of the EyStar
     SmartHome Console. Under the terms of the Distributor Agreement, MBE has
     been appointed for an initial duration of 3 years commencing January 4,
     2002. Since that date, MBE has been attempting to secure contracts for the
     supply of the EyStar SmartHome Console to property developers in Malaysia
     and Singapore. The sales target for MBE is $17.5 million over the remaining
     term of the agreement. There can be no assurance, however, that MBE will
     meet its sales target.

d)   The Company will attempt to secure contracts from local mobile networks to
     be jointly deployed with Aptilo Networks in 2004.

e)   In January 2002, the Company's subsidiary, PTSB, was awarded a contract to
     carry out the planning, design, and project execution of all broadband
     communications and networking systems/services for a commercial/housing
     project in Selangor, Malaysia. Under the contract, PTSB will receive a
     total contract sum of $550,000 over 36 months beginning January 2003. The
     project, featuring 312 serviced apartments, 62 units of retail
     shops/offices and 120 units of housing for a government agency, is expected
     to be completed by December 2004. As a total solution provider, PTSB will
     also be responsible for the supply of its EyStar SmartHome Console as well
     as providing value-added broadband applications such as high speed Internet
     access, security surveillance, multimedia conferencing, home automation and
     video-on-demand. The Company generated $37,000 of revenue on this contract
     through December 31, 2002 and recognized an additional $109,000 and
     $205,000 of revenue during the three months and nine months ended September
     30, 2003. In lieu of cash payment, management directed the customer to pay
     $10,000 of the $205,000 recognized to an affiliated company to whom the
     Company had outstanding accounts payable. The net effect to the Company was
     that revenue was recognized and recorded payables were reduced by equal
     amounts.

f)   In September 2002, the Company signed a Channel Partner Agreement with
     PointRed Technologies, Inc., a wireless broadband equipment manufacturer
     and distributor to distribute the EyStar SmartHome Console. Starting with
     its existing client base and expanding into new markets, PointRed will
     sell, install and service the EyStar SmartHome Console, and in doing so,
     may help to accelerate the distribution of the Console in North and South
     America.

                                       17
<PAGE>



g)   In November 2002, the Company was contracted by MY Architect ("MYA"), a
     related party, to provide consulting services relating to home automation,
     home networking, energy cost saving, security surveillance and monitoring
     for MYA's current projects involving two major commercial and housing
     developments in Malaysia. The Company expects to receive $550,000 in
     consulting fees over the next 18 months beginning December 1, 2002. The
     Company generated $20,000 of revenue on this contract through December 31,
     2002 and recognized an additional $86,000 and $214,000 of revenue during
     the three months and nine months ended September 30, 2003. The Company also
     expects to secure additional contracts sometime in 2005, estimated at $4.0
     million, from MYA's clients for the supply and installation of the EyStar
     SmartHome Console and its security system in the two commercial and housing
     developments.


h)   In April 2003, the Company contracted with MYA to carry out the design,
     supply and installation of all broadband communications, access control and
     network security equipment for a mixed property development project in
     Selangor, Malaysia, which features a total of 10 blocks of residential and
     commercial high-rise properties. The 30-month contract, expected to
     generate revenue of $3.2 million, will be implemented by AEI beginning in
     the third quarter of 2003. The Company generated $14,000 of revenue from
     this contract during the three months and nine months ended September 30,
     2003

i)   In April 2003, the Company was awarded a $9 million contract by MBE for the
     supply of biometric security products and EyStar SmartHome consoles over a
     three-year period with the first delivery expected to commence in the
     fourth quarter of 2003.

j)   In June 2003, the Company signed a contract to implement a biometric
     security recognition and identification system comprising of hardware,
     software and issuance of security identity cards over a ten-year period.
     The contract, which is expected to commence in the fourth quarter of 2003,
     after the finalizing of technical specifications with relevant regulatory
     authorities, is estimated to generate revenue of $15 million through the
     first quarter of 2005.

k)   In June 2003, the Company was awarded a US$2.0 million contract to supply
     and install a biometric security system for access control and time
     attendance in Malaysia. The project is estimated to commence during the
     fourth quarter of 2003 and be completed within six months of the
     commencement date. The Company was also awarded a maintenance contract for
     5 years thereafter. This maintenance contract begins following the
     completion of the project and is expected to generate annual recurring
     revenue of approximately US$250,000.

l)   In August 2003, the Company was awarded a $850,000 contract to supply,
     install and commission a biometric based Building Access Management and
     Monitoring System for a 40-story office complex in Kuala Lumpur, Malaysia.
     The system is designed to enhance security through the management and
     monitoring of visitors within a building complex or restricted area. The
     office complex is currently tenanted by government departments and
     agencies, embassies, corporations and trade missions. Implementation of
     this contract is expected to commence in the first quarter of 2004 and be
     completed by the second quarter of 2004.


Strategic Contractual Relationships

In its efforts to exploit broadband technology, the Company seeks to enter
strategic agreements, both formal and informal, with other providers of goods or
services that are compatible with the Company's existing businesses. Such
arrangements include license agreements, requirements contracts and service
agreements. The Company may also seek to acquire business enterprises that offer
goods and services that are of benefit to the Company and its shareholders.


                                       18
<PAGE>


In December 2002, the Company's subsidiary, AEI executed an Agreement with
Sintec Corp, South Korea ("Sintec"), to sell, distribute and promote their
SmileCAM remote video surveillance cameras in Malaysia, Thailand, Singapore,
Vietnam and Brunei. The agreement is for an initial period of two years and will
thereafter be automatically renewable for one-year terms on each anniversary.
Under the terms of the agreement, Sintec will grant the Company exclusive
distribution rights for its products in Malaysia if the Company purchases an
agreed minimum value of products from Sintec during 2003 and 2004. SmileCAM
cameras are used for Internet based security and entertainment applications and
can be integrated with the EyStar SmartHome Console to provide a value added
security solution for corporate and residential users. SmileCAM cameras include
features such as automatic motion detection and tracking, and sending live
streaming video to an Internet browser. Combined with applications and solutions
developed by the Company, the Company believes that SmileCAM cameras offer to
purchasers useful features such as the ability to record intrusion, owner
notification by ordinary telephone, live video, remote security options and
forwarding of images by use of the Internet.

In December 2002, the Company's subsidiary, AEI executed an Agreement with
Telekom Sales and Services Sdn Bhd ("TM"), a subsidiary of Telekom Malaysia
Berhad, to sell, distribute and promote broadband access over standard copper
telephone lines using Digital Subscriber Line technology. The service, brand
named TMnet Streamyx, was first launched in August 2002. TMnet Streamyx is a
high-speed access service providing "always-on" connection to the Internet. This
service currently covers 100 urban locations in Malaysia. The agreement with TM
is for an initial period of one year and maybe extended for a further period to
be agreed by both parties. Under the terms of the agreement, AEI is required to
achieve a minimum sales of $66,000 (RM250,000) for 2003. The Company currently
has generated minimal sales in 2003. The agreement with TM complements the
Company's Distribution Agreement with Anova to distribute Anova's DSL equipment,
including modems and routers.

In January 2003, the Company signed a Reseller Agreement with FaceKey
Corporation ("FaceKey") to sell FaceKey's biometric-based products. The
agreement is for an initial period of one year and will thereafter be
automatically renewable for two-year terms on each anniversary. Under the terms
of the agreement, FaceKey will grant the Company exclusive distribution rights
for its products in Malaysia if the Company purchase an agreed minimum value of
products from FaceKey during 2003. FaceKey develops products to control access,
record time and attendance and restrict use of personal computers by using two
biometric technologies, face recognition and fingerprint matching in a manner
that will be highly competitive with magnetic cards, PIN numbers and passwords.
The combination of both face and fingerprint recognition technologies is
believed by the Company to be extremely reliable, providing a security level
equivalent to a DNA test.

Beginning in September 2001, the Company entered into a strategic collaboration
with Aptilo Networks, Sweden, to deploy local mobile networks ("LMNs") in
Malaysia and the Asian regional markets. The Company anticipates that the
successful integration of LMNs with VISIONET will enable consumers to receive
live video streams from their handheld devices and laptops, and to access the
Internet and their corporate intranets at near T1 speeds remotely from public
locations in the "travel ribbon" such as hotels, airports, restaurants,
conference centers, shopping malls and coffeehouses. The first integrated
VISIONET-LMN cell was deployed during the fourth quarter of 2001 to connect a
number of access points to Bluetooth and wireless LAN 802.11b standard devices.
This mobile network features Aptilo's latest billing solution that enables the
Company to offer value-added applications and services to users without the need
for any prior registration as a subscriber. The Company is optimistic that this
method of payment from Aptilo will attract more users to VISIONET and reduce
capital expenditures and monthly operating costs. Furthermore, the integrated
network provides the Company with the ability to expand its broadband network
from fixed wireless into the mobile broadband market. The Company has committed
to an initial purchase of software and hardware from Aptilo valued at $50,000.
The Company believes that this strategic relationship with Aptilo may broaden
VISIONET's user base and generate additional revenue in 2004.

                                       19
<PAGE>

In January 2002, the Company signed a Sales and Distribution Agreement with
Cirronet Incorporated, to bundle Cirronet's wireless subscriber modem with the
Company's EyStar SmartHome/Office Console for distribution worldwide. The
agreement was for an initial period of 5 years and will thereafter be
automatically renewable for one-year terms on each anniversary. Under the terms
of the agreement, the Company committed to the purchase of approximately $19
million of equipment over a five-year period. Concurrent with the Sales and
Distribution Agreement, the Company has also entered into a 5-year Technical
Support and Supply of Spares Agreement with Cirronet to insure uninterrupted
supply of Cirronet's product. These equipment purchases were subject to
inspection and acceptance by the Company depending upon certain performance
standards being satisfactorily met. The Company received approximately $5,000 in
equipment from Cirronet, but experienced performance issues that were not
rectified. Following the failure of Cirronet to rectify the problems encountered
during the trial, both agreements were terminated on May 19, 2003 and the trial
equipment has been returned to Cirronet.

In July 2002, the Company entered into a letter agreement with PointRed
Technologies Inc. ("PointRed") whereby the Company has agreed to market and sell
PointRed's products worldwide. In return, PointRed has agreed to market and sell
the Company's EyStar SmartHome Consoles, value added applications and services
to its existing and future clients. On August 16, 2002, the Company and
PointRed, pursuant to the original letter agreement dated July 2002, signed an
agreement whereby the Company will utilize existing personnel and facilities to
promote PointRed's products and to service existing PointRed customers in
Malaysia. Also pursuant to the original letter agreement, the Company signed a
channel partner agreement with PointRed, whereby PointRed will distribute the
EyStar SmartHome Console. Under the agreement, PointRed will sell, install and
service the EyStar SmartHome Console in North and South America.

On September 27, 2002, the Company entered into a letter agreement with the
shareholders of Convergent Technologies, Inc. ("CTI"), a privately held company,
to acquire a majority interest in CTI for approximately $5.0 million. On May 19,
2003, the Company signed a purchase agreement with CTI's shareholders to acquire
the entire outstanding common stock of CTI for $2.6 million. The purchase price
was revised to $2.6 million after the Company had completed its due diligence
and further negotiation with CTI's shareholders. The closing of the agreement
was subject to specific performance by the Company and CTI's shareholders and
could be terminated any time prior to closing by mutual agreement of both
parties. Pursuant to the purchase agreement, CTI's shareholders would receive
$500,000 cash and 500,000 shares of the Company's preferred stock. The Company
expected to fund the cash portion of the purchase through a combination of
internally generated funds and advances from a director who is also the major
shareholder of the Company. On August 25, 2003, the Company announced that it
had completed the acquisition of CTI, subject to certain conditions being met.
As of September 30, 2003, the Company had paid $150,000 to CTI's shareholders as
an advance deposit on the purchase. This amount has been included in the
$166,518 of deposits and other assets on the balance sheet as of September 30,
2003. On November 6, 2003, the Company and CTI's shareholders mutually agreed to
rescind the purchase agreement after CTI did not satisfy all of the conditions
subsequent to the Purchase Agreement as a result of its inability to deliver
title to certain real property in a form acceptable to the Company. Pursuant to
the Rescission Agreement, the stockholders of CTI will refund the $150,000 and
pay an additional $50,000 to the Company as a cancellation fee.

On September 30, 2002, the Company signed a Distribution Agreement with Anova
Broadband ("Anova") to distribute Anova's Digital Subscriber Line ("DSL")
equipment in Asia, Australia and New Zealand. Beginning April 2003, Anova has
also granted the Company the right to market and distribute network and data
security products produced by an associate company of Anova. Sale of the
equipment shall commence after the Company has obtained equipment authorization
certification from relevant regulatory authorities of the respective countries.
The Company has yet to receive authorization certification for Anova's equipment
from the relevant regulatory authorities due to certain technical issues. Anova
is working with the Company to resolve these technical issues. The Company had
suspended the agreement with Anova as Anova was not able to resolve these
technical issues by the third quarter of 2003.

                                       20
<PAGE>

On September 10, 2003, the Company announced that its subsidiary, AEI had
entered into a letter agreement to establish a joint venture company, Temasya
Wira Sdn Bhd ("TWSB"), to undertake the research and development of biometric
security applications. AEI will initially hold 60% of TWSB's equity while two
Malaysian individuals will hold the remaining 40%. AEI's holding will eventually
be diluted to 30% when EMI acquires 30% equity interest in TWSB after the
completion of the joint venture agreement to be executed between the Company and
FaceKey Corporation as described below. TWSB is expected to commence operation
in 2004.

On September 24, 2003, the Company announced that it has executed a Letter of
Intent to form a joint venture with FaceKey Corporation ("FaceKey") to exploit
biometric applications for the MyKad "smart" national identification card
("MyKad") held by more than 7 million people in Malaysia. The definitive
agreement, expected to be signed by both parties in the fourth quarter of 2003,
requires FaceKey to acquire a 49% equity interest in EMI. EMI will subsequently
acquire a 30% equity interest in TWSB. EMI will be used as the joint venture
company to develop a system and applications utilizing FaceKey's face and
fingerprint technologies to verify a live fingerprint and face with data stored
in a smart card, which permits immediate electronic retrieval of information
about the cardholder. The Company and FaceKey will be jointly responsible for
marketing the products globally. The joint venture with FaceKey is expected to
commence operation in 2004 and has no impact on the accompanying condensed
consolidated financial statements.

On October 14, 2003, the Company announced its Malaysian subsidiary, AEI, has
executed a letter agreement to acquire a 51% equity interest in each of Asiaco
Pack Trade Sdn Bhd, Asiaco Skid Steer Loader Sdn Bhd and Asiaco Heavylift Sdn
Bhd. The three are subsidiary companies of Asiaco Material Handling Sdn Bhd
("AMH"). On October 30, 2003, the Company and AMH revised the letter agreement
to purchase the business assets and selected liabilities of AMH and its nine
subsidiary companies along with an option to purchase the entire equity interest
in the remaining fourteen companies in the AMH group. AMH and its subsidiaries
are primarily engaged in supply chain management, land transportation, secured
logistics as well as sale, rental and servicing of material handling equipment.
The acquisition is subject to satisfactory completion of due diligence and the
signing of a definitive agreement. The purchase price will be based on the value
of the selected assets and liabilities and is subject to further negotiation
between the parties. The acquisition will be funded by internally generated
funds and the Company's preferred stock. In October 2003, AEI paid to AMH a
refundable commitment fee of $131,578 for the proposed acquisition that it hopes
to complete in the fourth quarter of 2003. The commitment fee shall be deducted
from the final purchase price to be determined by AEI when it has completed its
verification of AMH's net asset value. The AMH group of companies has
approximately assets totaling $14.0 million, a combined workforce of 328
personnel and is currently generating annual revenues in excess of $25 million.
By combining its resources with AMH, AEI is optimistic that it will gain access
to AMH's clientele base in Malaysia and Thailand to further grow its business.

                                       21
<PAGE>


COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 2003 TO THE THREE
MONTHS ENDED SEPTEMBER 30, 2002


REVENUES

Revenues for the three months ended September 30, 2003 totaled $4,283,399
compared to $2,868,514 for the three months ended September 30, 2002, an
increase of $1,414,885 or 49%. The increase in net sales for the three months
ended September 30, 2003 as compared to 2002 was mainly due to an increase in
fees earned from the production of multimedia programs and revenue received for
project consulting services. The increase was also due to income of $100,262
received from a related party for project consulting fees, pursuant to two
consulting contracts. During the three months ended September 30, 2002, the
company recorded $132,724 of income from related parties upon payment for
outstanding receivables that had not previously been recognized as revenue due
to the uncertainty of collection. For the three months ended September 30, 2003,
two customers, respectively, accounted for 44% and 43% of total revenue. For the
three months ended September 30, 2002, two customers, respectively, accounted
for 54% and 42% of total revenue.


GROSS PROFIT

Gross profit increased to $667,557 for the three months ended September 30,
2003, compared to $189,303 for the three months ended September 30, 2002, an
increase of $478,254 or 253%. The increase in gross profit was due to higher
consulting revenue, which has a higher margin than production work, in 2003.
Cost of revenue increased by $936,631 or 35%, to $3,615,842 in 2003 from
$2,679,211 in 2002. The higher cost of revenue is a result of the Company
requiring additional external resources in order to fulfill the demand for the
Company's services. The outsourcing of content production work enabled the
Company to develop a team of contractors that will assist the Company in
producing multimedia content and applications that are crucial to its future
business operation.


SALES AND MAKETING EXPENSES

Sales and marketing expenses decreased by $11,632 or 75%, to $3,835 for the
three months ended September 30, 2003 compared to $15,467 for the three months
ended September 30, 2002. The decrease was primarily due to lower marketing
expenses incurred to promote the Company's business of developing and producing
multimedia programs and provision of design and consulting services for
interactive website development.


GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses were $205,894 for the three months ended
September 30, 2003. General and administrative expenses of $26,927 for the three
months ended September 30, 2002 included a $168,421 recovery of accounts
receivable previously deemed uncollectible. In connection with accounts
receivable overdue since 1999, the Company had previously recorded a bad debt
allowance of $168,421. If the Company had not received the payment of the
outstanding receivable, general and administrative expenses for the three months
ended September 30, 2002 would have been $195,348. Therefore, excluding the
$168,421 recovery, general and administrative expenses for the three months
ended September 30, 2003 increased by $10,546 or 5%, compared to 2002. The
increase was attributable to higher compensation expenses and legal and
professional fees incurred during the three months ended September 30, 2003.


                                       22
<PAGE>


OTHER INCOME

Other income for the three months ended September 30, 2003 included recognition
of a previously deferred gain of $28,420 related to a similar amount the Company
received from its long-term receivable, related party. Other income for the
three months ended September 30, 2002 included recognition of a previously
deferred gain of $78,303 related to an amount of $101,487 the Company received
from its long-term receivable, related party. The receivable balance and total
deferred gain was $628,157, respectively, as of December 31, 2002. This amount
arose in the year ended December 31, 1998 when the Company sold assets used in
the operations of a subsidiary to a related company. Due to the uncertainty of
collection of the related receivable, the related gain on the sale of the assets
was deferred and is to be recognized only after all costs have been recovered
and as payments are received. During the year ended December 31, 2002, payments
received by the Company exceeded all remaining costs. As a result the Company's
long-term receivable, related party and deferred gain balances were reduced to
$580,000 respectively, as of September 30, 2003.


NET INCOME

The Company recorded net income of $412,562 for the three months ended September
30, 2003 compared to net income of $187,348 for the three months ended September
30, 2002. The net income for the three months ended September 30, 2003 included
recognition of a deferred gain of $28,420. Excluding this non-recurring
transaction, the recorded net income would have been $384,142 for the
three-month period ended September 30, 2003. Net income for the three months
ended September 30, 2002 included several non-recurring transactions including
recognition of a deferred gain of $78,303, collection of $132,724 in related
party receivables previously not recognized as revenue due to the uncertainty of
collection, and $168,421 in recovered accounts receivable previously deemed
uncollectible and fully reserved for. Excluding these non-recurring
transactions, the Company would have incurred a $192,100 net loss for the
three-month period ended September 30, 2002.



COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 2003 TO THE NINE MONTHS
ENDED SEPTEMBER 30, 2002


REVENUES

Revenues for the nine months ended September 30, 2003 totaled $11,750,794
compared to $9,826,164 for the nine months ended September 30, 2002, an increase
of $1,924,630 or 20%. The increase in net sales in the nine months ended
September 30, 2003 as compared to 2002 was mainly due to an increase in fees
earned from the production of multimedia programs and revenue received for
project consulting services. The increase was also due to income of $228,026
received from a related party for project consulting fees, pursuant to two
consulting contracts. During the nine months ended September 30, 2002, the
company recorded $232,724 of income from related parties upon payment for
outstanding receivables that had not previously been recognized as revenue due
to the uncertainty of collection. For the nine months ended September 30, 2003,
two customers, respectively, accounted for 50% and 42% of total revenue. For the
nine months ended September 30, 2002, two customers, respectively, accounted for
51% and 46% of total revenue.

                                       23
<PAGE>


GROSS PROFIT

Gross profit increased to $1,396,261 for the nine months ended September 30,
2003, compared to $585,886 for the nine months ended September 30, 2002, an
increase of $810,375 or 138%. The increase in gross profit was due to a higher
consulting revenue, which has a higher margin than production work, in 2003.
Cost of revenue increased by $1,114,255 or 12%, to $10,354,533 in 2003 from
$9,240,278 in 2002. This increase was a result of the Company requiring
additional external resources in order to fulfill the higher demand for the
Company's services. The outsourcing of content production work enabled the
Company to develop a team of contractors that will assist the Company in
producing multimedia content and applications that are crucial to its future
business operation.


SALES AND MAKETING EXPENSES

Sales and marketing expenses decreased by $31,511, or 62%, to $19,287 for the
nine months ended September 30, 2003 from $50,798 for the nine months ended
September 30, 2002. The decrease was primarily due to lower marketing expenses
incurred to promote the Company's business of developing and producing
multimedia programs and provision of design and consulting services for
interactive website development.


GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses were $607,097 for the nine months ended
September 30, 2003. General and administrative expenses for the nine months
ended September 30, 2002 were $481,426, which included a $168,421 recovery of
accounts receivable previously deemed uncollectible. In connection with accounts
receivable overdue since 1999, the Company had previously recorded a bad debt
allowance of $168,421. If the Company had not received the payment of the
outstanding receivable, general and administrative expenses would have been
$649,847 for the nine months ended September 30, 2002. Therefore, excluding the
$186,421 recovery, general and administrative expenses for the nine months ended
September 30, 2003 decreased by $42,750 or 7%, compared to 2002. The decrease
was attributable to a decrease of professional fees and lower management fees
payable to a company in which Mr. Patrick Lim, the Chairman and Chief Executive
Officer of the Company, has a financial interest. The management fee was charged
on the basis of time spent for the administration and management services
provided to the Company. Management fees incurred to a related party were
reduced to $5,000 per month for the nine months ended September 30, 2003 from
$10,000 per month for the nine months ended September 30, 2002, a 50% decrease.


OTHER INCOME

Other income for the nine months ended September 30, 2003 included recognition
of a previously deferred gain of $48,157 related to a similar amount the Company
received from its long-term receivable, related party. Other income for the nine
months ended September 30, 2002 included recognition of a previously deferred
gain of $78,303 related to amounts totaling $119,513 the Company received on its
long-term receivable, related party. The receivable balance and total deferred
gain was $628,157, respectively, as of December 31, 2002. This amount arose in
the year ended December 31, 1998 when the Company sold assets used in the
operations of a subsidiary to a related company. Due to the uncertainty of
collection of the related receivable, the related gain on the sale of the assets
was deferred and is to be recognized only after all costs have been recovered
and as payments are received. During the year ended December 31, 2002, payments
received by the Company exceeded all remaining costs. As a result the Company's
long-term receivable, related party and deferred gain balances were reduced to
$580,000 respectively, as of September 30, 2003.

                                       24
<PAGE>


NET INCOME

The Company recorded net income of $692,792 for the nine months ended September
30, 2003. The net income of $692,792, included recognition of a deferred gain of
$48,157. Excluding this non-recurring transaction, the recorded net income would
have been $644,635 for the nine-month period ended September 30, 2003. The
Company recorded net income of $84,143 for the nine months ended September 30,
2002, which included several non-recurring transactions including recognition of
a deferred gain of $78,303, collection of $232,724 in related party receivables
previously not recognized as revenue due to the uncertainty of collection, and
$168,421 in recovered accounts receivable previously deemed uncollectible and
fully reserved for. Excluding these non-recurring transactions, the Company
would have incurred a $395,305 net loss for the nine-month period ended
September 30, 2002.



LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2003, the Company had cash of $181,147. All operations were
funded from internally generated funds and working capital advanced by the
Company's principal shareholder, director and officer of the Company. These
advances bear no interest and have no fixed terms of repayment.

Cash provided by operating activities of $463,353 for the nine months ended
September 30, 2003 was mainly attributable to higher revenue and reduced costs
for the nine months ended September 30, 2003.

Net cash used in financing activities of $291,651 was primarily due to payment
of $52,298 to reacquire 1,305,000 shares of its common stock, repayment of
$198,488 of advances from Mr. Lim, the Company's principal shareholder, Chief
Executive Officer ("CEO"), Chairman and Director, for short-term cash advances
made to a subsidiary of the Company for working capital purposes from time to
time and repayment of $76,246 of advances from an affiliated company in which
Mr. Lim has a financial interest. As of September 30, 2003, the Company owed
the related party company $59,223 for short-term cash advances made to a
subsidiary of the Company for working capital purposes from time to time and for
management fees. Additionally, as of September 30, 2003 the amount owed to Mr.
Lim was $27,449. These amounts are unsecured, bear no interest and have no fixed
terms of repayment.

The Company believes that sufficient cash will be generated from the following
sources to fund its operations for the next twelve months:


o    The Company may consider a private placement of its shares.

o    The Company may also seek to obtain equipment financing.

o    Intensification of efforts to collect overdue receivables. The Company
     intends to keep close contact with its debtors to keep updated on their
     liquidity status. Legal action will only be taken as a last resort.

o    Advances from a director/officer who is also a major shareholder as
     required to finance the Company's working capital requirements.


                                       25
<PAGE>

In addition to internally generated funds and financial support from a director
and major shareholder, the Company may seek to raise additional funds from
equity or debt financing for its future working capital requirements. As of
September 30, 2003, the Company has furniture and equipment with an original
cost of approximately $1.4 million for the roll out of its portal, build-out of
VISIONET and implementation of its business plan. The Company estimates that it
would require additional capital expenditures of up to $2.0 million to implement
its business plan to become a total system solution provider involved in
application development, network operation, delivery of value added applications
and services; and sale of its EyStar SmartHome Console.

On November 28, 2001, the Company signed an agreement to purchase office space
in Australia for $1.8 million Australian dollars (approximately $1,220,000 USD
at September 30, 2003). Pursuant to the terms of the agreement, the Company paid
a sum of $5,200 as deposit for the above property. As of September 30, 2003, the
Company decided not to proceed with the purchase due to the vendor's inability
to deliver vacant possession of the property. Following termination of the
agreement, the Company expensed the $5,200 non-refundable deposit paid to the
vendor.

On December 4, 2002, the Company announced that its Board of Directors had
approved a stock repurchase program for up to 10 million shares from the then
public float of approximately 42.7 million shares which may be repurchased from
time to time. The Company has until December 2003 to execute this stock
repurchase program. Under the program, the Company can purchase shares of common
stock through open market and/or privately negotiated transactions at prices
deemed appropriate by management. The timing and amount of any repurchase
transaction under this program will depend on market conditions and corporate
and regulatory considerations. Through September 30, 2003, the Company
repurchased a total of 1,305,000 shares of its common stock, at an average price
of $0.04, for a total cash consideration of $52,298. These shares were returned
to treasury and are available for re-issuance at a future date. On September 5,
2003, the Company reissued 250,000 shares of common stock from the treasury to a
shareholder at $0.20 per share for a total consideration of $50,000. The shares,
which were issued based on a first-in, first-out basis, were sold in reliance
upon the exemption provided by Regulation S under the Securities Act of 1933, as
amended. As of September 30, 2003, the Company had a balance of 1,055,000 shares
of treasury stocks valued at $44,550 based on an average cost of $0.04 per
share.

The Company will continuously evaluate its financing requirements and may decide
to consider alternative modes of financing.


ITEM 3. CONTROLS AND PROCEDURES

Within the 90 days prior to the date of this report, the Company's management
concluded its evaluation of the effectiveness of the design and operation of the
Company's disclosure controls and procedures. As of the Evaluation Date, the
Company's Chairman and Chief Executive Officer and its Chief Financial Officer
concluded that the Company maintains disclosure controls and procedures that are
effective in providing reasonable assurance that information required to be
disclosed in the Company's reports under the Securities Act of 1934 (Exchange
Act) is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms, and that such information is accumulated
and communicated to the Company's management, including its Chairman and Chief
Executive Officer and its Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure. The Company's management
necessarily applied its judgment in assessing the costs and benefits of such
controls and procedures, which, by their nature, can provide only reasonable
assurance regarding management's control objectives. There have been no
significant changes in the Company's internal controls or in other factors that
could significantly affect these controls subsequent to the Evaluation Date.


                                       26
<PAGE>



PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

      None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

     On September 5, 2003, the Company reissued 250,000 shares of common stock
from its treasury to a shareholder at $0.20 per share for a total consideration
of $50,000. The shares were sold in reliance upon the exemption provided by
Regulation S under the Securities Act of 1933, as amended. As of September 30,
2003, the Company had a balance of 1,055,000 shares of treasury stocks valued at
$44,550 based on an average cost of $0.04 per share.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None.

ITEM 5. OTHER INFORMATION

     None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

       (a) Exhibits

          31.1 Certification by Chief Executive Officer pursuant to Rule 13A-14
               or 15D-14 of the Securities Exchange Act of 1934

          31.2 Certification by Chief Financial Officer pursuant to Rule 13A-14
               or 15D-14 of the Securities Exchange Act of 1934

          32.1 Certification by Chief Executive Officer pursuant to 18 U.S.C.
               1350

          32.2 Certification by Chief Financial Officer pursuant to 18 U.S.C.
               1350

       (b) Reports on Form 8-K:

       On July 1, 2003, the Company filed a report on Form 8-K which announced
       its revenue and earnings estimates for the second quarter of 2003. A copy
       of the press release was attached and incorporated by reference therein.

       On August 5, 2003, the Company filed a report on Form 8-K which announced
       the issuance of a press release announcing its unaudited financial
       results for the quarter and six-month period ended June 30, 2003 in
       conjunction with the filing of its quarterly report on Form 10-QSB. . A
       copy of the press release was attached and incorporated by reference
       therein.

       On August 27, 2003, the Company filed a report on Form 8-K which
       announced that it had completed its acquisition of the entire outstanding
       common stock of Convergent Technologies, Inc. A copy of the press release
       was attached and incorporated by reference therein.



                                       27
<PAGE>



                                   SIGNATURES

     In accordance with the requirements of the Securities and Exchange Act of
1934, the Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                        DIGITAL BROADBAND NETWORKS, INC.
                                  (Registrant)



DATE: NOVEMBER 12, 2003              BY: /s/ Patrick Soon-Hock Lim
                                       ------------------------------
                                         Patrick Soon-Hock Lim
                                         Chairman & Chief Executive Officer



DATE: NOVEMBER 12, 2003              BY: /s/ Chee Hong Leong
                                       ------------------------------
                                          Chee Hong Leong
                                          Chief Financial Officer
                                         (Principal Financial Officer and
                                          Principal Accounting Officer)



                                       28