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**SHELBY      ACQUISITION I, INC.**

**-      INDEX -**

|                                                                                                                                       |   | Page   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| **PART                I- FINANCIAL INFORMATION:**                                                                                          |   |   |
|                                                                                                                                       |   |   |
| Item                1. Financial Statements                                                                                                |   |   |
|                                                                                                                                       |   |   |
| Balance                Sheet as of April 30, 2008 (Unaudited)                                                                              |   | F-1    |
|                                                                                                                                       |   |   |
| Statements                of Operations (Unaudited) for the Three and Nine Months Ended April                30,                           |   | F-2    |
| 2008,                the Period from Inception (February 1, 2007) to April 30, 2007 and                for                the              |   |   |
| Cumulative                Period from Inception (February 1, 2007) to April 30, 2008                                                       |   |   |
|                                                                                                                                       |   |   |
| Statement                of Stockholder’s Equity (Deficit) (Unaudited) for the Period from                Inception             |   | F-3    |
| (February                1, 2007) to April 30, 2008                                                                                        |   |   |
|                                                                                                                                       |   |   |
| Statements                of Cash Flows (Unaudited) for the Nine Months Ended April 30, 2008,                the                           |   | F-4    |
| Period                from Inception (February 1, 2007) to April 30, 2007 and for the                Cumulative                            |   |   |
| Period                from Inception (February 1, 2007) to April 30, 2008                                                                  |   |   |
|                                                                                                                                       |   |   |
| Notes                to Financial Statements (Unaudited)                                                                                   |   | F-5    |
|                                                                                                                                       |   |   |
| Item                2. Management's Discussion and Analysis of Financial Condition and                Results                of Operations |   | 1      |
|                                                                                                                                       |   |   |
| Item                3A(T). Controls and Procedures                                                                                         |   | 3      |
|                                                                                                                                       |   |   |
| **PART                II - OTHER INFORMATION:**                                                                                            |   |   |
|                                                                                                                                       |   |   |
| Item                1. Legal Proceedings                                                                                                   |   | 3      |
|                                                                                                                                       |   |   |
| Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds                                          |   | 3      |
|                                                                                                                                       |   |   |
| Item                3. Defaults Upon Senior Securities                                                                                     |   | 3      |
|                                                                                                                                       |   |   |
| Item                4. Submission of Matters to a Vote of Security Holders                                                                 |   | 3      |
|                                                                                                                                       |   |   |
| Item                5. Other Information                                                                                                   |   | 3      |
|                                                                                                                                       |   |   |
| Item                6. Exhibits                                                                                                            |   | 4      |
|                                                                                                                                       |   |   |
| Signatures                                                                                                                                 |   | 5      |

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**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements.**

**SHELBY      ACQUISITION I, INC.**

**(A      Development Stage Company)**

**BALANCE      SHEET**

**(Unaudited)**

| **ASSETS**                                                                                                                                      |   |   |      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| **CURRENT                ASSETS**                                                                                                               |   |   |      |   |
| **Cash                and cash equivalents**                                                                                                    |   | $      | 1,422     |   |
|                                                                                                                                            |   |   |      |   |
| **TOTAL                ASSETS**                                                                                                                 |   | **$**  | **1,422** |   |
|                                                                                                                                            |   |   |      |   |
| **LIABILITIES                & STOCKHOLDER'S DEFICIT**                                                                                      |   |   |      |   |
| **CURRENT                LIABILITIES**                                                                                                          |   |   |      |   |
| **Accrued                professional fees**                                                                                                    |   | $      | 8,675     |   |
| **Due                to Stockholder**                                                                                                           |   |   | 18,750    |   |
|                                                                                                                                            |   |   |      |   |
| **TOTAL                LIABILITIES**                                                                                                            |   |   | 27,425    |   |
|                                                                                                                                            |   |   |      |   |
| **STOCKHOLDER'S                DEFICIT**                                                                                                        |   |   |      |   |
| **Preferred                Stock, .0001 par value; 10,000 shares authorized; none issued and                outstanding**                       |   |   | —   |   |
|                                                                                                                                            |   |   |      |   |
| **Common                Stock, .0001 par value; 100,000,000 shares authorized; 5,000,000                issued                and outstanding** |   |   | 500       |   |
|                                                                                                                                            |   |   |      |   |
| **Additional-paid                in capital**                                                                                                   |   |   | 24,500    |   |
|                                                                                                                                            |   |   |      |   |
| **Deficiency                accumulated during development stage**                                                                              |   |   | (51,003   | )      |
|                                                                                                                                            |   |   |      |   |
| **TOTAL                STOCKHOLDER'S DEFICIT**                                                                                                  |   |   | (26,003   | )      |
|                                                                                                                                            |   |   |      |   |
| **TOTAL                LIABILITIES & STOCKHOLDER'S DEFICIT**                                                                                |   | **$**  | **1,422** |   |

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**SHELBY      ACQUISITION I, INC.**

**(A      Development Stage Company)**

**STATEMENTS      OF OPERATIONS**

**(Unaudited)**

|                                                                                                      |   | **For the****Three****Months****Ended****April 30,****2008** |          | **For the****Nine****Months****Ended****April 30, 2008** |   | **For the****Cumulative****Period****from****Inception****(February****1, 2007)****April 30,****2008** |   | **For the****Period****from****Inception****(February****1, 2007)****to April 30, 2007** |          |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|---------------|-------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|---------------|
|                                                                                                      |   |                                                                   |          |                                                                    |   |                                                                                                                  |   |                                                                                                              |          |
| **Revenue**                                                                                               |   | **$**                                                                  | **-**         |                                                                    | **$**  | **-**                                                                                                                 |   | **$**                                                                                                             | **-**         |   | **$** | **-** |   |
|                                                                                                      |   |                                                                   |          |                                                                    |   |                                                                                                                  |   |                                                                                                              |          |   |   |   |   |
| **General                and Administrative Expenses**                                                    |   |                                                                   | 3,085         |                                                                    |   | 37,830                                                                                                                |   |                                                                                                              | 51,003        |   |   | — |   |
|                                                                                                      |   |                                                                   |          |                                                                    |   |                                                                                                                  |   |                                                                                                              |          |   |   |   |   |
| **Net                Loss**                                                                               |   | **$**                                                                  | **(3,085**    | **)**                                                                   | **$**  | **(37,830**                                                                                                           | **)**  | **$**                                                                                                             | **(51,003**   | **)** | **$** | **-** |   |
|                                                                                                      |   |                                                                   |          |                                                                    |   |                                                                                                                  |   |                                                                                                              |          |   |   |   |   |
| **Basic                and Diluted Net Loss Per Share**                                                   |   | **$**                                                                  | **(0.01**     | **)**                                                                   | **$**  | **(0.01**                                                                                                             | **)**  | **$**                                                                                                             | **(0.01**     | **)** | **$** | **(0.00** | **)** |
|                                                                                                      |   |                                                                   |          |                                                                    |   |                                                                                                                  |   |                                                                                                              |          |   |   |   |   |
| **Number                of Shares Used in Computing Basic and Diluted Net Loss Per                Share** |   |                                                                   | **5,000,000** |                                                                    |   | **5,000,000**                                                                                                         |   |                                                                                                              | **5,000,000** |   |   | **5,000,000** |   |

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**SHELBY      ACQUISITION I, INC.**

**(A      Development Stage Company)**

**STATEMENT      OF STOCKHOLDER’S EQUITY (DEFICIT)**

**(Unaudited)**

|                                                       |   |                     |        |                  |   |             |   |            |          | **Deficit**       |   |      |   |
|------------------------------------------------------------|--------|--------------------------|-------------|-----------------------|--------|------------------|--------|-----------------|---------------|-------------------|--------|-----------|--------|
|                                                       |   |                     |        |                  |   |             |   |            |          | **Accumulated**   |   |      |   |
|                                                       |   |                     |        |                  |   | **Additional**   |   | **During**      |          | **Stockholder's** |   |
|                                                       |   | **Preferred Stock** |        | **Common Stock** |   | **Paid In** |   | **Development** |          | **Equity**        |   |
|                                                       |   | **Shares**               |        | **Amount**            |   | **Shares**       |   | **Amount**      |          | **Capital**       |   | **Stage** |   | ** (Deficit)** |   |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |
| **BALANCE                AT FEBRUARY 1, 2007**             |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| **INCEPTION**                                              |   |                     | —     |                  | $      | -                |   |            | —       |              | $      | -         |   | $ | - |   | $ | - |   | $ | - |   |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| Issuance                of Common Stock                    |   |                     | —     |                  |   | -                |   |            | 5,000,000     |              |   | 500       |   |   | 24,500 |   |   | — |   |   | 25,000 |   |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                    |   |                     | —     |                  |   | -                |   |            | —       |              |   | —   |   |   | — |   |   | (13,173 | ) |   | (13,173 | ) |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| **Balance                as of July 31, 2007**             |   |                     | **—** |                  |   | **-**            |   |            | **5,000,000** |              |   | **500**   |   |   | **24,500** |   |   | **(13,173** | **)** |   | **11,827** |   |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| Net                loss for period 8/1/07 through 10/31/07 |   |                     | —     |                  |   | -                |   |            | —       |              |   | —   |   |   | — |   |   | (3,675 | ) |   | (3,675 | ) |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| **Balance                as of October 31, 2007**          |   |                     |        |                  |   |             |   |            | **5,000,000** |              |   | **500**   |   |   | **24,500** |   |   | **(16,848** | **)** |   | **8,152** |   |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| Net                loss for period 11/1/07 through 1/31/08 |   |                     | **—** |                  |   | **-**            |   |            | —       |              |   | —   |   |   | - |   |   | (31,070 | ) |   | (31,070 | ) |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| **Balance                as of January 31, 2008**          |   |                     | **—** |                  |   | **-**            |   |            | **5,000,000** |              |   | **500**   |   |   | **24,500** |   |   | **(47,918** | **)** |   | **(22,918** | **)** |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| Net                loss for period 1/1/08 through 4/30/08  |   |                     | **—** |                  |   | **-**            |   |            | —       |              |   | —   |   |   | - |   |   | (3,085 | ) |   | (3,085 | ) |
|                                                       |   |                     |        |                  |   |             |   |            |          |              |   |      |   |   |   |   |   |   |   |   |   |   |
| **Balance                as of April 30, 2008**            |   |                     | **—** |                  |   | **-**            |   |            | **5,000,000** |              |   | **500**   |   | **$** | **24,500** |   | **$** | **(51,003** | **)** | **$**  | **(26,003** | **)** |

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**SHELBY      ACQUISITION I, INC.**

**(A      Development Stage Company)**

**STATEMENTS      OF CASH FLOWS**

**(Unaudited)**

|                                                                                                        |   | **For the ****Nine Months****Ended****April 30, 2008** |      | **For the ****Cumulative ****Period from**** Inception ****(February 1, 2007)****to April 30, 2008** |   | **For the ****Period from**** Inception ****(February 1, 2007)****to April 30, 2007** |   |
|-------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                     |   |                                                                            |      |                                                                                                                                                        |   |                                                                                                                                    |   |   |   |   |
| **Net                Loss**                                                                                 |   | $                                                                               | (37,830   | )                                                                                                                                                           | $      | (51,003                                                                                                                                 | )      | $ |  |   |
| **Adjustments                    to reconcile Net Loss to net cash used in                    operations:** |   |                                                                            |      |                                                                                                                                                        |   |                                                                                                                                    |   |   |   |   |
|  **Accrued                Professional Fees**                                                          |   |                                                                            | 8,675     |                                                                                                                                                        |   | 8,675                                                                                                                                   |   |   | — |   |
| **Net                cash used in Operating Activities**                                                    |   |                                                                            | (29,155   | )                                                                                                                                                           |   | (42,328                                                                                                                                 | )      |   | — |   |
|                                                                                                        |   |                                                                            |      |                                                                                                                                                        |   |                                                                                                                                    |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                     |   |                                                                            |      |                                                                                                                                                        |   |                                                                                                                                    |   |   |   |   |
| **Additional                Paid in Capital**                                                               |   |                                                                            | 18,750    |                                                                                                                                                        |   | 18,750                                                                                                                                  |   |   | — |   |
| **Loans                from Affiliate**                                                                     |   |                                                                            | (598      | )                                                                                                                                                           |   | 0                                                                                                                                       |   |   | — |   |
| **Proceeds                from Issuance of Common Stock**                                                   |   |                                                                            | 0         |                                                                                                                                                        |   | 25,000                                                                                                                                  |   |   | 25,000 |   |
| **Net                cash provided by Financing Activities**                                                |   |                                                                            | 18,152    |                                                                                                                                                        |   | 43,750                                                                                                                                  |   |   | 25,000 |   |
|                                                                                                        |   |                                                                            |      |                                                                                                                                                        |   |                                                                                                                                    |   |   |   |   |
| **Net                (decrease) increase in cash and cash equivalents for                period**           |   |                                                                            | (11,003   | )                                                                                                                                                           |   | 1,422                                                                                                                                   |   |   | 25,000 |   |
|                                                                                                        |   |                                                                            |      |                                                                                                                                                        |   |                                                                                                                                    |   |   |   |   |
| **Cash                and cash equivalents at beginning of period**                                         |   |                                                                            | 12,425    |                                                                                                                                                        |   | —                                                                                                                                 |   |   | — |   |
|                                                                                                        |   |                                                                            |      |                                                                                                                                                        |   |                                                                                                                                    |   |   |   |   |
| **Cash                and cash equivalents at end of period**                                               |   | **$**                                                                           | **1,422** |                                                                                                                                                        | **$**  | **1,422**                                                                                                                               |   | **$** | **25,000** |   |

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**SHELBY      ACQUISITION I, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**April      30, 2008**

**NOTE      1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES**

|   | (a) | Organization                and Business: |
|--------|-----|-------------------------------------------|

|   | (b) | Basis                of Presentation/Going Concern: |
|--------|-----|-----------------------------------------------------|

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**SHELBY      ACQUISITION I, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**April      30, 2008**

**NOTE      1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      (Continued):**

|  | (c) | Cash                and Cash Equivalents |
|--|-----|------------------------------------------|

|   | (d) | Use                of Estimates: |
|--------|-----|----------------------------------|

|   | (e) | Income                Taxes |
|--------|-----|-----------------------------|

|   | (f) | Loss                per Common Share |
|--------|-----|--------------------------------------|

|   | (g) | Fair                Value of Financial Instruments |
|--------|-----|----------------------------------------------------|

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**SHELBY      ACQUISITION I, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**April      30, 2008**

**NOTE      2 – CAPITAL STOCK**

**NOTE      3 – DUE TO STOCKHOLDER**

**NOTE      4 – RECENT ACCOUNTING PRONOUNCEMENTS**

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**SHELBY      ACQUISITION I, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**April      30, 2008**

**NOTE      4 – RECENT ACCOUNTING PRONOUNCEMENTS**
**      (**
**Continued):**

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**SHELBY      ACQUISITION I, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**April      30, 2008**

**NOTE      4 – RECENT ACCOUNTING PRONOUNCEMENTS (Continued):**

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

***Results      of Operations***

***Liquidity      and Capital Resources***

|                                                     |   | Nine MonthsEndedApril 30, 2008 |    | Period fromInception(February 1, 2007) toApril 30, 2007 |   | Cumulative Periodfrom Inception(February 1, 2007) toApril 30, 2008 |   |
|----------------------------------------------------------|--------|-----------------------------------------------|---------|---------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|
| Net                cash used in operating activities     |   | $                                             | (29,155 | )                                                                                     | $      | 0                                                                                                     |   | $ | (42,328 | ) |
| Net                cash used in investing activities     |   | $                                             | 0       |                                                                                  | $      | 0                                                                                                     |   | $ | 0 |   |
| Net                cash provided by financing activities |   | $                                             | 18,152  |                                                                                  | $      | 25,000                                                                                                |   | $ | 43,750 |   |
| Net                effect on cash                        |   | $                                             | (11,003 | )                                                                                     | $      | 25,000                                                                                                |   | $ | 1,422 |   |

***Plan      of Operations***

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|  | (i) | filing                reports under the Securities Exchange Act of 1934, as amended (the                “Exchange Act”), and |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | consummating                an acquisition.  |
|--|------|---------------------------------------------------|

***Off-Balance      Sheet Arrangements***

----

**Item      3A(T). Controls and Procedures.**

***Evaluation      of Disclosure Controls and Procedures***

***Changes      in Internal Controls***

**PART      II — OTHER INFORMATION**

**Item      1. Legal Proceedings.**

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

**Item      3. Defaults Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security Holders.**

**Item      5. Other Information.**

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**Item      6. Exhibits.**

| Exhibit                No. |   | Description |
|----------------------------|--------|-------------|
|                       |   |        |   |
| *3.1                       |   |        | Certificate                of Incorporation, as filed with the Delaware Secretary of State on                February 1, 2007. |
|                       |   |        |   |
| *3.2                       |   |        | By-Laws. |
|                       |   |        |   |
| 31.1                       |   |        | Certification                of the Company’s Principal Executive Officer and Principal Financial                Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,                with                respect to the registrant’s Quarterly Report on Form 10-QSB for the                quarter ended April 30, 2008. |
|                       |   |        |   |
| 32.1                       |   |        | Certification                of the Company’s Principal Executive Officer and Principal Financial                Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to                Section                906 of the Sarbanes Oxley Act of                2002. |

| * | Filed                as an exhibit to the Company's Registration Statement on Form 10-SB,                as                filed with the Securities and Exchange Commission on November 20,                2007,                and incorporated herein by this                reference. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

| Dated:                June 16, 2008 | **SHELBY                ACQUISITION I, INC.** |
|-------------------------------------|-----------------------------------------------|
|                                |                                          |
|                                | By:                                           | /s/                James R. Kerr |  |
|                                |                                          | James                R. Kerr |
|                                |                                          | President,                Secretary and Director |

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