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**SHELBY      ACQUISITION I, INC.**

**-      INDEX -**

|                                                       |                                                                                                                                                                                                                                                         | Page   |
|------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |                                                                                                                                                                                                                                                         |   |
| **PART                I- FINANCIAL INFORMATION:**          |                                                                                                                                                                                                                                                         |
|                                                       |                                                                                                                                                                                                                                                         |   |
| Item                1.                                     | Financial                Statements                                                                                                                                                                                                                          |   |
|                                                       |                                                                                                                                                                                                                                                         |   |
|                                                       | Balance                Sheet as of October 31, 2007 (unaudited)                                                                                                                                                                                              | F-1    |
|                                                       |                                                                                                                                                                                                                                                         |   |
|                                                       | Statements                of Operations for the Three Months Ending October 31, 2007                (unaudited)and                for the Period from February 1, 2007 (Date of Inception)                throughOctober                31, 2007 (unaudited) | F-2    |
|                                                       |                                                                                                                                                                                                                                                         |   |
|                                                       | Statement                of Stockholder’s Equity for the Period from February 1, 2007 (Date of                Inception)through                October 31, 2007 (unaudited)                                                                            | F-3    |
|                                                       |                                                                                                                                                                                                                                                         |   |
|                                                       | Statements                of Cash Flows for the Three Months Ending October 31, 2007                (unaudited)and                for the Period from February 1, 2007 (Date of Inception)                throughOctober                31, 2007 (unaudited) | F-4    |
|                                                       |                                                                                                                                                                                                                                                         |   |
|                                                       | Notes                to Financial Statements (unaudited)                                                                                                                                                                                                     | F-5    |
|                                                       |                                                                                                                                                                                                                                                         |   |
| Item                2.                                     | Management's                Discussion and Analysis of Financial Condition and Results of                Operations                                                                                                                                          | 1      |
|                                                       |                                                                                                                                                                                                                                                         |   |
| Item                3.                                     | Controls                and Procedures                                                                                                                                                                                                                       | 2      |
|                                                       |                                                                                                                                                                                                                                                         |   |
| **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                                                                                                                                                                                                                                                     | 3      |
|                                                       |                                                                                                                                                                                                                                                         |   |
| Signatures                                                 | 4                                                                                                                                                                                                                                                            |

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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**                                                                                                    |   | $      | 11,827 |   |
|                                                                                                                                            |   |   |   |   |
| **TOTAL                ASSETS**                                                                                                                 |   | **$**  | **11,827** |   |
|                                                                                                                                            |   |   |   |   |
| **LIABILITIES                & STOCKHOLDER'S EQUITY**                                                                                       |   |   |   |
| **CURRENT                LIABILITIES**                                                                                                          |   |   |   |   |
| **Accrued                Professional Fees**                                                                                                    |   | $      | 3,675 |   |
|                                                                                                                                            |   |   |   |   |
| **TOTAL                LIABILITIES**                                                                                                            |   |   | 3,675 |   |
|                                                                                                                                            |   |   |   |   |
| **STOCKHOLDER'S                EQUITY**                                                                                                         |   |   |   |   |
| **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**                                                                              |   |   | (16,848 | ) |
| **TOTAL                STOCKHOLDER'S EQUITY**                                                                                                   |   |   | 8,152 |   |
|                                                                                                                                            |   |   |   |   |
| **TOTAL                LIABILITIES & STOCKHOLDER'S EQUITY**                                                                                 |   | **$**  | **11,827** |   |

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**SHELBY      ACQUISITION I, INC.**

**(A      Development Stage Company)**

**STATEMENTS      OF OPERATIONS**

**(Unaudited)**

|                                                                                                      |   | **For                the****Three****Months****Ended****October 31, 2007** |          |               | **For the****Cumulative****Period from****Inception****(February 1, 2007)****to October 31, 2007** |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|---------------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   |                                                                                 |          |     |                                                                                                                                  |   |
| **Revenue**                                                                                               |   | **$**                                                                                | **-**         |               |                                                                                                                             | **$**  | **-** |   |
|                                                                                                      |   |                                                                                 |          |               |                                                                                                                                  |   |   |   |
| **General                and Administrative Expenses**                                                    |   |                                                                                 | 3,675         |               |                                                                                                                                  |   | 16,848 |   |
|                                                                                                      |   |                                                                                 |          |               |                                                                                                                                  |   |   |   |
| **Net                Loss**                                                                               |   | **$**                                                                                | **(3,675**    | **)**              |                                                                                                                                  | **$**  | **16,848** |   |
|                                                                                                      |   |                                                                                 |          |               |                                                                                                                                  |   |   |   |
| **Basic                and Diluted Net Loss Per Share**                                                   |   |                                                                                 | **0.00**      |               |                                                                                                                                  |   | **0.00** |   |
|                                                                                                      |   |                                                                                 |          |               |                                                                                                                                  |   |   |   |
| **Number                of Shares Used in Computing Basic and Diluted Net Loss Per                Share** |        |                                                                                 | **5,000,000** |                    |                                                                                                                                  |   | **5,000,000** |   |

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**SHELBY      ACQUISITION I, INC.**

**(A      Development Stage Company)**

**STATEMENT      OF STOCKHOLDER’S EQUITY**

**(Unaudited)**

|                                                       |   |           |                     |        |                     |                       |   | **Deficit**     |          |                     |              |                     |
|------------------------------------------------------------|--------|--------------------------|--------------------------|-----------------------|--------------------------|----------------------------|--------|-----------------|---------------|--------------------------|-------------------|--------------------------|
|                                                       |   |           |                     |        |                     |                       |   | **Accumulated** |          |
|                                                       |   |                     |                     |                  |                     | **Additional**             |   | **During**      |          |                     |              |                     |
|                                                       |   | **Preferred Stock** |                     | **Common Stock** |                     | **Paid                In** |   | **Development** |          |                     | **Stockholder's** |                     |
|                                                       |   | **Shares**               |      | **Amount**            |      | **Shares**                 |   |            | **Amount**    |      | **Capital**       |      | **Stage** |   |   | **Equity** |   |
|                                                       |   |                     |                     |                  |                |                       |   |            |          |                     |              |                     |   |   |   |   |   |
| **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** |   |

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**SHELBY      ACQUISITION I, INC.**

**(A      Development Stage Company)**

**STATEMENTS      OF CASH FLOWS**

**(Unaudited)**

|                                                                                                |   | **For                the****Three Months****Ended****October 31, 2007** |       | **For the****Cumulative****Period from****Inception****(February 1, 2007)****to October 31, 2007** |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                             |   |                                                                                   |       |                                                                                                                                  |   |   |   |
| **Net                Loss**                                                                         |   | $                                                                                      | (3,675     | )                                                                                                       | $      | (16,848 | ) |
| **Adjustments                to reconcile Net Loss to net cash used in                operations:** |   |                                                                                   |       |                                                                                                                                  |   |   |   |
| **Due                to Affiliate**                                                                 |   |                                                                                   | (598       | )                                                                                                                                     |   | 0 |   |
| **Accrued                professional fees**                                                        |   |                                                                                   | 3,675      |                                                                                                                                  |   | 3,675 |   |
| **Net                cash used in Operating Activities**                                            |   |                                                                                   | (598       | )                                                                                                                                     |   | (13,173 | ) |
|                                                                                                |   |                                                                                   |       |                                                                                                                                  |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                             |   |                                                                                   |       |                                                                                                                                  |   |   |   |
| **Proceeds                from Issuance of Common Stock**                                           |   |                                                                                   | 0          |                                                                                                                                  |   | 25,000 |   |
| **Net                cash provided by Financing Activities**                                        |   |                                                                                   | 0          |                                                                                                                                  |   | 25,000 |   |
|                                                                                                |   |                                                                                   |       |                                                                                                                                  |   |   |   |
| **Net                (decrease) increase in cash and cash equivalents for                period**   |   |                                                                                   | (598       | )                                                                                                                                     |   | 11,827 |   |
|                                                                                                |   |                                                                                   |       |                                                                                                                                  |   |   |   |
| **Cash                and cash equivalents at beginning of period**                                 |   |                                                                                   | 12,425     |                                                                                                                                  |   | -- |   |
|                                                                                                |   |                                                                                   |       |                                                                                                                                  |   |   |   |
| **Cash                and cash equivalents at end of period**                                       |   | **$**                                                                                  | **11,827** |                                                                                                                                  | **$**  | **11,827** |   |

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**SHELBY      ACQUISITION I, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**October      31, 2007**

|   | (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**

**October      31, 2007**

|  | (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**

**October      31, 2007**

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**SHELBY      ACQUISITION I, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**October      31, 2007**

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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***

| Operating                activities |   | $      | (13,173 | )      |
|-------------------------------------|--------|--------|---------|--------|
| Investing                activities |   |   | -       |   |
| Financing                activities |   | $      | 25,000  |   |
|                                |   |   |    |   |
| Net                effect on cash   |   | $      | 11,827  |   |

***Plan      of Operations***

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

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

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***Off-Balance      Sheet Arrangements***

** **

**Item      3. Controls and Procedures.**

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**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.**

**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 October 31, 2007. |
|             |   |                                                                                                                                                                                                                                                                                                                                                  |
| 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:                March 11, 2008 | **SHELBY                ACQUISITION I, INC.** |
|--------------------------------------|-----------------------------------------------|
|                                 |                                          |   |
|                                 |                                          |   |
|                                 | By:                                           |   /s/              James R. Kerr |
|                                 | Name:                James R. Kerr            |
|                                 | Title:                President and Secretary |

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