SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

         For the quarterly period ended September 30, 2000
                                        ------------------

                                       OR

___      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: 0-27494

                          LEISUREPLANET HOLDINGS, LTD.
                          ----------------------------
             (Exact name of Registrant as Specified in Its Charter)


               Bermuda                               Not Applicable
     -------------------------------          ---------------------------------
     (State or Other Jurisdiction of          (IRS Employer Identification No.)
     Incorporation or Organization)


             Clarendon House, Church Street, Hamilton HM CX, Bermuda
             -------------------------------------------------------
             (Address of Principal Executive Offices with Zip Code)


        Registrant's Telephone Number, Including Area Code: 809-295-1422
                                                            ------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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 ___

APPLICABLE  ONLY TO  ISSUERS  INVOLVED  IN  BANKRUPTCY  PROCEEDINGS  DURING  THE
PRECEDING FIVE YEARS:

Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be  filed by  Section  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court. Yes ____No __

APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares of common  stock  outstanding  as of November  13, 2000 was
8,388,932.

<PAGE>


                                    FORM 10-Q
                      FOR THE QUARTER ENDED MARCH 31, 1999
<TABLE>
<CAPTION>

                                                                                                                Page
                                                                                                                ----

PART I - FINANCIAL INFORMATION
<S>       <C>                                                      <C> <C>           <C> <C>                     <C>
     Item 1.    Unaudited Consolidated Balance Sheets at September 30, 2000 and June 30, 2000.....................3

                Unaudited Consolidated Pro Forma Balance Sheet reflecting the disposal of
                First Lifestyle Holdings at September 30, 2000 and June 30, 2000..................................5

                Unaudited Consolidated Statements of Operations for the three months ended
                September 30, 2000 and 1999.......................................................................7

                Unaudited Consolidated Statements of Cash Flows for the three months ended
                September 30, 2000 and 1999.......................................................................8

                Notes to the Unaudited  Consolidated Financial Statements.........................................9

     Item 2.    Management's Discussion and Analysis of Financial Condition and
                Results of Operations............................................................................14

     Item 3.    Quantitative and Qualitative Disclosures About Market Risk.......................................16


PART II - OTHER INFORMATION

     Item 5.    Other Information................................................................................17
     Item 6.    Exhibits and Report on 10-K......................................................................17

     Signatures..................................................................................................18
</TABLE>

<PAGE>

                         LEISUREPLANET HOLDINGS LIMITED
                CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                      ASSETS

--------------------------------------------------------------------------------- ---------------- -----------------
                                                                                        SEPTEMBER             JUNE
                                                                                              30,              30,
                                                                                             2000             2000
                                                                                                $                $
--------------------------------------------------------------------------------- ---------------- -----------------
CURRENT ASSETS
--------------------------------------------------------------------------------- ---------------- -----------------
<S>                                                                                    <C>              <C>
       Cash and cash equivalents                                                       21,811,405       29,853,067
--------------------------------------------------------------------------------- ---------------- -----------------
       Accounts receivable, net                                                        14,016,546       10,608,197
--------------------------------------------------------------------------------- ---------------- -----------------
       Inventories                                                                      8,733,186        9,386,857
--------------------------------------------------------------------------------- ---------------- -----------------
       Prepaid expenses and other current assets                                        2,499,479        3,631,348
--------------------------------------------------------------------------------- ---------------- -----------------
       Deferred income taxes                                                            ________-          898,280
                                                                                                -      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL CURRENT ASSETS                                                     47,060,616       54,377,749
--------------------------------------------------------------------------------- ---------------- -----------------
Property, plant and equipment, net                                                     17,979,719       18,215,196
--------------------------------------------------------------------------------- ---------------- -----------------
Investments in Affiliates                                                                 921,040        1,283,935
--------------------------------------------------------------------------------- ---------------- -----------------
Intangible assets, net                                                                 19,088,480       20,685,179
--------------------------------------------------------------------------------- ---------------- -----------------
Deferred charges                                                                          186,247          228,078
--------------------------------------------------------------------------------- ---------------- -----------------
Other assets                                                                            ___34,151           31,362
                                                                                           ------    -------------
--------------------------------------------------------------------------------- ---------------- -----------------
TOTAL ASSETS                                                                           85,270,253       94,821,499
                                                                                       ==========       ==========
--------------------------------------------------------------------------------- ---------------- -----------------
</TABLE>

                                      -3-

SEE ACCOMPANYING NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

<PAGE>
                         LEISUREPLANET HOLDINGS LIMITED

                CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                       LIABILITIES AND STOCKHOLDERS' EQUITY

--------------------------------------------------------------------------------- ---------------- -----------------
                                                                                        SEPTEMBER             JUNE
                                                                                              30,              30,
                                                                                             2000             2000
                                                                                                $                $
--------------------------------------------------------------------------------- ---------------- -----------------
CURRENT LIABILITIES
<S>                                                                                     <C>                <C>
--------------------------------------------------------------------------------- ---------------- -----------------
       Bank overdraft                                                                   1,602,588          896,860
--------------------------------------------------------------------------------- ---------------- -----------------
       Current portion of long term debt                                                1,993,373        2,105,153
--------------------------------------------------------------------------------- ---------------- -----------------
       Accounts payable                                                                 9,218,060       13,046,686
--------------------------------------------------------------------------------- ---------------- -----------------
       Other provisions and accruals                                                    3,974,239        5,754,638
--------------------------------------------------------------------------------- ---------------- -----------------
       Dividends payable                                                                  286,806          179,840
--------------------------------------------------------------------------------- ---------------- -----------------
       Income taxes payable                                                               955,144          676,003
--------------------------------------------------------------------------------- ---------------- -----------------
       Other taxes payable                                                               _134,236          303,812
                                                                                          -------      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL CURRENT LIABILITIES                                                18,164,446       22,962,992
--------------------------------------------------------------------------------- ---------------- -----------------
Long term debt                                                                         15,256,735       15,473,769
--------------------------------------------------------------------------------- ---------------- -----------------
Deferred income taxes                                                                   3,462,191        4,402,038
                                                                                      -----------      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL LIABILITIES                                                        36,883,372       42,838,799
                                                                                       ----------       ----------
--------------------------------------------------------------------------------- ---------------- -----------------
Minority interest                                                                      37,617,834       37,059,840
--------------------------------------------------------------------------------- ---------------- -----------------
FSAH mandatory redeemable preferred stock                                               8,236,102        8,771,930
--------------------------------------------------------------------------------- ---------------- -----------------
Commitments and contingencies (Note 9)
--------------------------------------------------------------------------------- ---------------- -----------------
STOCKHOLDERS' EQUITY

--------------------------------------------------------------------------------- ---------------- -----------------
Capital stock:
       A class common  stock,  $0.01 par value - authorized  23,000,000  Shares,
       issued and outstanding 8,368,676 shares

       (1999: 5,383,142 shares)                                                            83,687           83,687
--------------------------------------------------------------------------------- ---------------- -----------------

       B class common stock, $0.01 par value - authorized 2,000,000 shares,
       Issued and outstanding  946,589 shares (1999: 946,589 shares)                        9,466            9,466
--------------------------------------------------------------------------------- ---------------- -----------------

       FSAH B class  common  stock,  R0,001  par value -  authorized  10,000,000
       shares, issued and outstanding 2,671,087 shares

       (1999: 2,550,466 shares)                                                               600              600
--------------------------------------------------------------------------------- ---------------- -----------------

       Preferred stock, $0.01 par value - authorized 5,000,000 shares, none
       Issued                                                                                   -                -
--------------------------------------------------------------------------------- ---------------- -----------------

       Additional paid-in capital                                                      64,307,442       64,307,442
--------------------------------------------------------------------------------- ---------------- -----------------
       Accumulated deficit                                                            (38,861,029)     (37,772,100)
--------------------------------------------------------------------------------- ---------------- -----------------
       Accumulated Other Comprehensive Income                                         (23,007,221)     (20,478,165)
                                                                                      ------------     ------------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL STOCKHOLDERS' EQUITY                                               _2,532,945        6,150,930
                                                                                        ---------      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                             85,270,253       94,821,499
                                                                                       ==========       ==========
--------------------------------------------------------------------------------- ---------------- -----------------
</TABLE>

                                      -4-
<PAGE>


PROFORMA INFORMATION

The Proforma  balance  sheet has been prepared on the basis that the disposal of
Lifestyle  was  effective  September  30,  2000.  The  proceeds  of the sale are
$34,830,176
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                      ASSETS

--------------------------------------------------------------------------------------------------------------------
                                                                                        SEPTEMBER             JUNE
                                                                                              30,              30,
                                                                                             2000             2000
                                                                                                $                $
--------------------------------------------------------------------------------- ---------------- -----------------
<S>                                                                                     <C>             <C>
CURRENT ASSETS
--------------------------------------------------------------------------------- ---------------- -----------------
       Cash and cash equivalents                                                        4,629,556       29,853,067
--------------------------------------------------------------------------------- ---------------- -----------------
       Accounts receivable, net                                                                 -       10,608,197
--------------------------------------------------------------------------------- ---------------- -----------------
       Inventories                                                                              -        9,386,857
--------------------------------------------------------------------------------- ---------------- -----------------
       Prepaid expenses and other current assets                                        1,848,430        3,631,348
--------------------------------------------------------------------------------- ---------------- -----------------
       Deferred income taxes                                                            ________-          898,280
                                                                                                -      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL CURRENT ASSETS                                                     42,477,986       54,377,749
--------------------------------------------------------------------------------- ---------------- -----------------
Property, plant and equipment, net                                                         17,694       18,215,196
--------------------------------------------------------------------------------- ---------------- -----------------
Investments in Affiliates                                                                 916,733        1,283,935
--------------------------------------------------------------------------------- ---------------- -----------------
Intangible assets, net                                                                  1,101,389       20,685,179
--------------------------------------------------------------------------------- ---------------- -----------------
Deferred charges                                                                          186,247          228,078
--------------------------------------------------------------------------------- ---------------- -----------------
Other assets                                                                             _______-           31,362
                                                                                                -    -------------
--------------------------------------------------------------------------------- ---------------- -----------------
TOTAL ASSETS                                                                           44,700,049       94,821,499
                                                                                       ==========       ==========
--------------------------------------------------------------------------------- ---------------- -----------------
</TABLE>

                                      -5-

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>

PROFORMA INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                       LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------------------------------------------------------------------------------------
                                                                                        SEPTEMBER             JUNE
                                                                                              30,              30,
                                                                                             2000             2000
                                                                                                $                $
--------------------------------------------------------------------------------- ---------------- -----------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------- ---------------- -----------------
<S>                                                                                       <C>              <C>
       Bank overdraft                                                                     182,171          896,860
--------------------------------------------------------------------------------- ---------------- -----------------
       Current portion of long term debt                                                  954,447        2,105,153
--------------------------------------------------------------------------------- ---------------- -----------------
       Accounts payable                                                                    83,086       13,046,686
--------------------------------------------------------------------------------- ---------------- -----------------
       Other provisions and accruals                                                      437,999        5,754,638
--------------------------------------------------------------------------------- ---------------- -----------------
       Dividends payable                                                                  286,724          179,840
--------------------------------------------------------------------------------- ---------------- -----------------
       Income taxes payable                                                                     -          676,003
--------------------------------------------------------------------------------- ---------------- -----------------
       Other taxes payable                                                              ________-          303,812
                                                                                                -      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL CURRENT LIABILITIES                                                 1,944,427       22,962,992
--------------------------------------------------------------------------------- ---------------- -----------------
Long term debt                                                                         14,156,250       15,473,769
--------------------------------------------------------------------------------- ---------------- -----------------
Deferred income taxes                                                                   ________-        4,402,038
                                                                                                -      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL LIABILITIES                                                        16,100,677       42,838,799
                                                                                       ----------       ----------
--------------------------------------------------------------------------------- ---------------- -----------------
Minority interest                                                                               -       37,059,840
--------------------------------------------------------------------------------- ---------------- -----------------
FSAH mandatory redeemable preferred stock                                               8,236,102        8,771,930
--------------------------------------------------------------------------------- ---------------- -----------------
Commitments and contingencies (Note 9)
--------------------------------------------------------------------------------- ---------------- -----------------
STOCKHOLDERS' EQUITY

--------------------------------------------------------------------------------- ---------------- -----------------
Capital stock:
       A class common  stock,  $0.01 par value - authorized  23,000,000  Shares,
       issued and outstanding 8,368,676 shares
       (1999: 5,383,142 shares)                                                            83,687           83,687
--------------------------------------------------------------------------------- ---------------- -----------------

       B class common stock, $0.01 par value - authorized 2,000,000 shares,
       Issued and outstanding  946,589 shares (1999: 946,589 shares)                        9,466            9,466
--------------------------------------------------------------------------------- ---------------- -----------------

       FSAH B class  common  stock,  R0,001  par value -  authorized  10,000,000
       shares, issued and outstanding 2,671,087 shares

       (1999: 2,550,466 shares)                                                               600              600
--------------------------------------------------------------------------------- ---------------- -----------------

       Preferred stock, $0.01 par value - authorized 5,000,000 shares, none
       Issued                                                                                   -                -
--------------------------------------------------------------------------------- ---------------- -----------------

       Additional paid-in capital                                                      64,307,442       64,307,442
--------------------------------------------------------------------------------- ---------------- -----------------
       Accumulated deficit                                                            (31,890,633)     (37,772,100)
--------------------------------------------------------------------------------- ---------------- -----------------
       Accumulated Other Comprehensive Income                                         (12,147,292)     (20,478,165)
                                                                                      ------------     ------------
--------------------------------------------------------------------------------- ---------------- -----------------
              TOTAL STOCKHOLDERS' EQUITY                                               20,363,270        6,150,930
                                                                                       ----------      -----------
--------------------------------------------------------------------------------- ---------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                             44,700,049       94,821,499
                                                                                       ==========       ==========
--------------------------------------------------------------------------------- ---------------- -----------------
</TABLE>

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                      -6-
<PAGE>


                         LEISUREPLANET HOLDINGS LIMITED

           CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------- ---------------- -----------------
                                                                                          THREE            THREE
                                                                                         MONTHS           MONTHS
                                                                                          ENDED            ENDED
                                                                                      SEPTEMBER        SEPTEMBER
                                                                                            30,              30,
                                                                                           2000             1999
                                                                                                        RESTATED
                                                                                              $                $
--------------------------------------------------------------------------------- ---------------- -----------------
<S>                                                                                     <C>              <C>
Revenues                                                                                  ____-                  -
                                                                                              -    ---------------
--------------------------------------------------------------------------------- ---------------- -----------------
Operating expenses
--------------------------------------------------------------------------------- ---------------- -----------------
       Cost of sales                                                                          -                -
--------------------------------------------------------------------------------- ---------------- -----------------
       Selling, general and administrative costs                                        468,505          233,685
--------------------------------------------------------------------------------- ---------------- -----------------
       Amortisation of intangibles                                                      150,200           58,912
--------------------------------------------------------------------------------- ---------------- -----------------
       Depreciation                                                                       1,890            1,756
--------------------------------------------------------------------------------- ---------------- -----------------
       Foreign currency loss                                                           _465,516                -
                                                                                        -------    -------------
--------------------------------------------------------------------------------- ---------------- -----------------
                                                                                      1,086,111          294,353
                                                                                      ---------         --------
--------------------------------------------------------------------------------- ---------------- -----------------
Operating loss                                                                       (1,086,111)        (294,353)
--------------------------------------------------------------------------------- ---------------- -----------------
Equity in losses of affiliates                                                         (247,739)               -
--------------------------------------------------------------------------------- ---------------- -----------------
Preference dividend                                                                    (121,579)                  -
--------------------------------------------------------------------------------- ---------------- -----------------
Interest expense                                                                       (168,312)        (477,612)
                                                                                       ---------        ---------
--------------------------------------------------------------------------------- ---------------- -----------------
Loss from continuing operations before income taxes                                  (1,623,741)        (771,965)
--------------------------------------------------------------------------------- ---------------- -----------------
Provision for income taxes                                                             _______-             (353)
                                                                                              -      ------------
--------------------------------------------------------------------------------- ---------------- -----------------
Loss from continuing operations                                                      (1,623,741)        (772,318)
--------------------------------------------------------------------------------- ---------------- -----------------
Discontinued operations (Note 7)
--------------------------------------------------------------------------------- ---------------- -----------------
       (Loss)/income from operations, net of income taxes of $512,366 and
       $661,060                                                                       __534,812       (2,155,502)
                                                                                        -------       -----------
--------------------------------------------------------------------------------- ---------------- -----------------
Net loss                                                                             (1,088,929)      (2,927,820)
                                                                                     -----------      -----------
--------------------------------------------------------------------------------- ---------------- -----------------

--------------------------------------------------------------------------------- ---------------- -----------------
Earnings/(Loss) per share - basic and diluted
--------------------------------------------------------------------------------- ---------------- -----------------
       Continuing operations                                                             ($0,18)          ($0,12)
--------------------------------------------------------------------------------- ---------------- -----------------
       Discontinued operations                                                            $0,06           ($0,34)
                                                                                         ------           -------
--------------------------------------------------------------------------------- ---------------- -----------------
       Net income/(loss)                                                                 ($0,12)          ($0,46)
                                                                                         -------          -------
--------------------------------------------------------------------------------- ---------------- -----------------

--------------------------------------------------------------------------------- ---------------- -----------------
Weighted average common stock outstanding:

--------------------------------------------------------------------------------- ---------------- -----------------
       Basic and diluted                                                              9,315,265        6,377,981
                                                                                      ---------        ---------
--------------------------------------------------------------------------------- ---------------- -----------------
</TABLE>

                                      -7-
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

<PAGE>


                         LEISUREPLANET HOLDINGS LIMITED
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDUTED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------- ---------------- -----------------
                                                                                          THREE            THREE
                                                                                         MONTHS           MONTHS
                                                                                          ENDED            ENDED
                                                                                      SEPTEMBER        SEPTEMBER
                                                                                            30,              30,
                                                                                           2000             1999
                                                                                                        RESTATED
                                                                                              $                $
--------------------------------------------------------------------------------- ---------------- -----------------
<S>                                                                                    <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Net loss from continuing operations                                             (1,623,741)      (772,318)
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
 ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES:

                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Dividend charge                                                                   121,579               -
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Depreciation and amortisation                                                     152,090          60,668
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Deferred income taxes                                                             177,761         291,726
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Net loss/(gain) on sale of assets                                                  12,484          31,244
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Net loss/(gain) on minority shares issued in Lifestyle                                  -             424
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Changes in operating assets and liabilities, net of                            (7,745,624)     (2,749,632)
discontinued              operations
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Creation of debenture redemption reserve fund                                     131,250         281,250
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Equity in losses of affiliates                                                 ___247,739                  -
                                                                                         -------   ----------------
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
Net cash used in continuing operations                                                (8,526,462)     (2,377,433)
--------------------------------------------------------------------------------- ---------------- -----------------
Net cash provided by discontinued operations                                          _1,952,651         213,539
                                                                                       ---------      ----------
--------------------------------------------------------------------------------- ---------------- -----------------
Net cash used in operating activities                                                 (6,573,811)     (2,643,099)
                                                                                      -----------     -----------
--------------------------------------------------------------------------------- ---------------- -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:

                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Acquisition of intangibles                                                         (5,004)         (5,954)
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Acquisition of property, plant and equipment                                   (1,520,226)       (880,525)
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Proceeds on disposal of property, plant and equipment                              68,808           9,134
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Proceeds on other  assets sold                                                        807               -
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Repayment of loan by affiliates                                                 ___95,000                -
                                                                                          ------   --------------
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
Net cash provided by/(used in) investing activities                                   (1,360,615)       (877,345)
                                                                                      -----------      ----------
--------------------------------------------------------------------------------- ---------------- -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:

--------------------------------------------------------------------------------- ---------------- -----------------
       Short term borrowings, net                                                         801,227     (1,114,067)
--------------------------------------------------------------------------------- ---------------- -----------------
       Proceeds from long term debt                                                             -      1,063,365
--------------------------------------------------------------------------------- ---------------- -----------------
       Repayment of long term debt                                                       (267,775)             -
--------------------------------------------------------------------------------- ---------------- -----------------
       Proceeds on minority shares issued in Lifestyle                                         -          16,221
                                                                                                   -----------------
--------------------------------------------------------------------------------- ---------------- -----------------
       Proceeds on issuance of common stock                                             ________-        160,000
                                                                                                -    -----------
--------------------------------------------------------------------------------- ---------------- -----------------
Net cash provided by financing activities                                               __533,452        125,519
                                                                                          -------    -----------
--------------------------------------------------------------------------------- ---------------- -----------------
Effect of exchange rate changes on cash                                                  (640,688)       117,324
                                                                                        ----------   -----------
--------------------------------------------------------------------------------- ---------------- -----------------
Net decrease in cash and cash equivalents                                              (8,041,662)    (3,277,601)
--------------------------------------------------------------------------------- ---------------- -----------------
Cash and cash equivalents at beginning of period                                       29,853,067     20,813,301
                                                                                       ----------     ----------
--------------------------------------------------------------------------------- ---------------- -----------------
Cash and cash equivalents at end of period                                             21,811,405     17,535,700
                                                                                     ============     ==========
--------------------------------------------------------------------------------- ---------------- -----------------
</TABLE>

                                      -8-

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>

1.     FINANCIAL INFORMATION

       Leisureplanet  Holdings Limited (formerly First South Africa Corp., Ltd.)
       (the  "Company"),  was founded on September  6, 1995.  The purpose of the
       Company has changed from acquiring and operating South African  Companies
       to one of investing in Internet and technology related industries.

       The principal activities of the group include the following:

       INTERNET RELATED ACTIVITIES

       The original investment made in  Leisureplanet.com  ("LPI"), the Internet
       travel related services  company,  has been unsuccessful due to a lack of
       further  investor  funding into the loss making entity,  and is currently
       under voluntary administration in the United Kingdom.

       Further  investments  have  been  made  in  Internet  technology  related
       companies, which is in line with the Company's new focus.

2.     BASIS OF PREPARATION

       The unaudited interim condensed consolidated financial statements include
       the accounts of the Company and all of its subsidiaries in which it has a
       majority  voting  interest.  Investments  in affiliates are accounted for
       under the equity method of  accounting.  All  inter-company  accounts and
       significant   transactions  have  been  eliminated  in  the  consolidated
       financial statements.

       Certain  information  and  factual   disclosures   normally  included  in
       financial  statements  prepared in  accordance  with  generally  accepted
       accounting  principles  have been  condensed  or omitted  pursuant to the
       rules and  regulations of the Securities and Exchange  Commission.  These
       financial  statements should be read in conjunction with the consolidated
       financial  statements  and related notes  contained in the Company's 2000
       form 10-K.

       In  the  opinion  of  management,   the  interim  condensed  consolidated
       financial  statements  reflect  all  adjustments  necessary  for  a  fair
       presentation of the interim periods. All such adjustments are of a normal
       recurring  nature.  The results of operations  for the interim period are
       not  necessarily  indicative  of the results of operations to be expected
       for the full year.

       NET INCOME/(LOSS) PER SHARE

       Basic  net   income/(loss)   per  share  is  computed  by  dividing   net
       income/(loss)   by  the  weighted   average   number  of  common   shares
       outstanding.  Diluted net income/(loss) per share is computed by dividing
       net  income/(loss)  by the  weighted  average  number  of  common  shares
       outstanding  and dilutive  potential  common  shares  which  includes the
       dilutive effect of stock options,  warrants and  convertible  debentures.
       Dilutive  potential common shares for all periods  presented are computed
       utilising the treasury stock method.

       COMPREHENSIVE INCOME

       Total  comprehensive  loss was  $3,532,985  and  $2,409,279 for the three
       months ended September 30, 2000 and 1999, respectively.


                                      -9-
<PAGE>

2.     BASIS OF PREPARATION (CONTINUED)

       RECENTLY ISSUED ACCOUNTING STANDARDS

       In June 1998,  the FASB  adopted SFAS No. 133, as amended by SFAS No. 137
       and SFAS No. 138,  "Accounting  for  Derivative  Instruments  and Hedging
       Activities." SFAS No. 133 establishes  accounting and reporting standards
       requiring that every derivative  instrument (including certain derivative
       instruments embedded in other contracts) be recorded in the balance sheet
       as  either  an asset or  liability  measured  at its fair  value and that
       changes  in the  derivative's  fair  value  be  recognised  currently  in
       earnings  unless  specific  hedge  accounting  criteria are met.  Special
       accounting for qualifying  hedges allows  derivatives gains and losses to
       offset  related  results on the hedged item in the income  statement  and
       requires  that the company must formally  document,  designate and assess
       the effectiveness of transactions that receive hedge accounting. SFAS No.
       133 is effective  for fiscal  years  beginning  after June 15, 2000.  The
       Company believes that the future adoption of this statement will not have
       a significant  impact on the results of operations or financial  position
       of the Company.

       Staff  Accounting  Bulletin,   "SAB"  No.  101  "Revenue  Recognition  in
       Financial  Statements"  provides the staff's views in applying  Generally
       Accepted  Accounting  Principles to selected revenue  recognition issues.
       SAB 101 is  effective  no later than the fourth  quarter of fiscal  years
       beginning after December 15, 1999. The Company believes that the adoption
       of the provision of this SAB will not have any significant  impact on the
       continuing results of operations and financial position of the Company.

3.     INVENTORIES

       Inventories consist of the following:
<TABLE>
<CAPTION>

      ---------------------------------------------------------------------- ---------------- ----------------
                                                                                  SEPTEMBER             JUNE
                                                                                        30,              30,
                                                                                       2000             2000
                                                                                          $                $
      ---------------------------------------------------------------------- ---------------- ----------------
<S>                                                                               <C>              <C>
      Finished goods                                                              4,789,180        5,147,642
      ---------------------------------------------------------------------- ---------------- ----------------
      Work in progress                                                              296,858          358,890
      ---------------------------------------------------------------------- ---------------- ----------------
      Raw materials and ingredients                                               2,406,989        2,701,284
      ---------------------------------------------------------------------- ---------------- ----------------
      Supplies                                                                    1,240,159        1,179,041
      ---------------------------------------------------------------------- ---------------- ----------------
                                                                                  8,733,186        9,386,857
      ---------------------------------------------------------------------- ---------------- ----------------
</TABLE>

                                      -10-

<PAGE>


4.     INVESTMENTS IN AFFILIATES

       A  summary  of the  impact  of  these  investments  on  the  consolidated
       financial statements is presented below:
<TABLE>
<CAPTION>
     ----------------------------------------------------- ---------------- ---------------- ----------------
                                                                EFFECTIVE        SEPTEMBER             JUNE
                                                               PERCENTAGE              30,              30,
                                                                OWNERSHIP             2000             2000
                                                                                         $                $
      ----------------------------------------------------- ---------------- ---------------- ----------------
      Investments in and receivables from unconsolidated
      affiliates
      ----------------------------------------------------- ---------------- ---------------- ----------------
<S>                                                                    <C>          <C>             <C>
             HotelSupplyGroup. Com                                     51%          86,376          183,134
      ----------------------------------------------------- ---------------- ---------------- ----------------
             Magnolia Broadband                                        48%         830,357          1,076,338
      ----------------------------------------------------- ---------------- ---------------- ----------------
             Hall Lifestyle Products                                   50%         __4,307           24,463
      ----------------------------------------------------- ---------------- ---------------- ----------------
                                                                                   921,040        1,283,935
      ----------------------------------------------------- ---------------- ---------------- ----------------
      ----------------------------------------------------- ---------------- ---------------- ----------------
      Equity share of losses of unconsolidated affiliates:
      ----------------------------------------------------- ---------------- ---------------- ----------------
             HotelSupplyGroup. Com                                     51%          (1,758)         (37,223)
      ----------------------------------------------------- ---------------- ---------------- ----------------
             Magnolia Broadband                                        48%        (245,981)        (123,662)
      ----------------------------------------------------- ---------------- ---------------- ----------------
                                                                                  (247,739)        (160,885)
      ----------------------------------------------------- ---------------- ---------------- ----------------
</TABLE>

       Goodwill arising on the Company's investment in Magnolia of $1,300,000 is
       amortised over a three-year period.

5.   DISCONTINUED OPERATIONS

       FIRST LIFESTYLE HOLDINGS LIMITED ("LIFESTYLE")

       The  following   summarizes  the  operating   results  of  the  Lifestyle
discontinued operation:
<TABLE>
<CAPTION>
      ---------------------------------------------------------------------- ---------------- ----------------
                                                                                     THREE            THREE
                                                                                    MONTHS           MONTHS
                                                                                     ENDED            ENDED
                                                                                 SEPTEMBER        SEPTEMBER
                                                                                       30,              30,
                                                                                      2000             1999
                                                                                                   RESTATED
                                                                                         $                $
      ---------------------------------------------------------------------- ---------------- ----------------
<S>                                                                              <C>              <C>
      Revenue                                                                    21,346,406       22,656,341
                                                                                 ----------       ----------
      ---------------------------------------------------------------------- ---------------- ----------------
      Operating income                                                            1,406,958        1,588,457
                                                                                  ---------        ---------
      ---------------------------------------------------------------------- ---------------- ----------------
      Net income, net of minority interest of
      $557,993,and $577,851                                                         534,812          610,925
                                                                                    -------       ----------
      ---------------------------------------------------------------------- ---------------- ----------------
</TABLE>


                                      -11-
<PAGE>

5.     DISCONTINUED OPERATIONS (CONTINUED)

       At September 30, 2000 assets of First Lifestyle Holdings Limited included
       in the balance sheet were as follows:
<TABLE>
<CAPTION>

      --------------------------------------------------------------------------------------- ----------------
                                                                                                            $
      --------------------------------------------------------------------------------------- ----------------
      Assets

      --------------------------------------------------------------------------------------- ----------------
<S>                                            <C>                                                 <C>
             Current assets (including cash of $16,012,026)                                        39,412,806
      --------------------------------------------------------------------------------------- ----------------
             Property, plant and equipment                                                         17,962,026
      --------------------------------------------------------------------------------------- ----------------
             Intangibles, net                                                                      17,987,873
      --------------------------------------------------------------------------------------- ----------------
             Other assets                                                                              38,458
                                                                                                -------------
      --------------------------------------------------------------------------------------- ----------------
      TOTAL ASSETS                                                                                 75,401,163
                                                                                                   ----------
      --------------------------------------------------------------------------------------- ----------------
             Current liabilities                                                                   16,135,019
      --------------------------------------------------------------------------------------- ----------------
             Long term debt                                                                         1,100,485
      --------------------------------------------------------------------------------------- ----------------
             Deferred taxes                                                                         3,462,191
      --------------------------------------------------------------------------------------- ----------------
             Minority shareholders interest                                                        26,757,907
                                                                                                   ----------
      --------------------------------------------------------------------------------------- ----------------
      TOTAL LIABILITIES                                                                            47,455,602
                                                                                                   ----------
      --------------------------------------------------------------------------------------- ----------------
</TABLE>

       LEISUREPLANET.COM ("LPI")

       Due to the lack of investor appetite for loss making Internet businesses,
       no  further  funding  was  available  to  fund  the  activities  of  LPI,
       previously  Leisureplanet  Limited, the Internet travel related business.
       On August 2, 2000 LPI was placed under  voluntary  administration  in the
       United  Kingdom.  Subsequent  to  this  date,  on  August  31,  2000  the
       administrator placed LPI into liquidation.  The liabilities of LPI exceed
       the  assets  and,  where  appropriate,  provision  has been  made for any
       liabilities, contingent or otherwise, which the Company may incur.

       The following summarizes the operating results of the LPI segment:
<TABLE>
<CAPTION>

      ---------------------------------------------------------------------- ---------------- ----------------
                                                                                     THREE            THREE
                                                                                    MONTHS           MONTHS
                                                                                     ENDED            ENDED
                                                                                 SEPTEMBER        SEPTEMBER
                                                                                       30,              30,
                                                                                      2000             1999
      ---------------------------------------------------------------------- ---------------- ----------------
      Revenue                                                                         ____-           65,597
<S>     <C>    <C>    <C>    <C>    <C>    <C>
                                                                                          -           ------
      ---------------------------------------------------------------------- ---------------- ----------------
      Operating loss                                                                  ____-       (2,771,899)
                                                                                          -       -----------
      ---------------------------------------------------------------------- ---------------- ----------------
      Net loss, net of minority interest of $nil and $nil                                 -       (2,766,427)
                                                                                 ----------       -----------
      ---------------------------------------------------------------------- ---------------- ----------------
</TABLE>


                                      -12-
<PAGE>

6.     CASH FLOWS

       The changes in assets and liabilities consist of the following:
<TABLE>
<CAPTION>

      ---------------------------------------------------------------------- ---------------- ----------------
                                                                                     THREE            THREE
                                                                                    MONTHS           MONTHS
                                                                                     ENDED            ENDED
                                                                                 SEPTEMBER        SEPTEMBER
                                                                                       30,              30,
                                                                                      2000             1999
                                                                                                   RESTATED
                                                                                         $                $
      ---------------------------------------------------------------------- ---------------- ----------------
<S>                                                                             <C>              <C>
      Decrease in accounts receivable                                           (4,181,079)      (3,091,469)
      ---------------------------------------------------------------------- ---------------- ----------------
      (Increase)/decrease in inventories                                            82,749         (370,612)
      ---------------------------------------------------------------------- ---------------- ----------------
      Increase in prepaid expenses and other current assets                        940,431         (134,002)
      ---------------------------------------------------------------------- ---------------- ----------------
      Increase/(decrease) in accounts payable                                   (3,279,543)         916,266
      ---------------------------------------------------------------------- ---------------- ----------------
      Decrease in other provisions and accruals                                 (1,638,469)        (562,391)
      ---------------------------------------------------------------------- ---------------- ----------------
      Increase in other taxes payable                                              330,287          139,456
      ---------------------------------------------------------------------- ---------------- ----------------
      Increase in income taxes payable                                          _________-          353,120
                                                                                         -     ------------
      ---------------------------------------------------------------------- ---------------- ----------------
                                                                                (7,745,624)      (2,749,632)
                                                                                ===========      -----------
      ---------------------------------------------------------------------- ---------------- ----------------
      ---------------------------------------------------------------------- ---------------- ----------------
      NET CASH PROVIDED BY DISCONTINUED OPERATIONS CONSISTS OF THE
      FOLLOWING:
      ---------------------------------------------------------------------- ---------------- ----------------
      ---------------------------------------------------------------------- ---------------- ----------------
      Net income/(loss) of discontinued operations:                                534,812       (2,155,502)
      ---------------------------------------------------------------------- ---------------- ----------------
      ---------------------------------------------------------------------- ---------------- ----------------
      Depreciation and amortisation                                                846,267        1,311,985
      ---------------------------------------------------------------------- ---------------- ----------------
      ---------------------------------------------------------------------- ---------------- ----------------
      Minority share of (losses)/gains                                             557,993          577,851
      ---------------------------------------------------------------------- ---------------- ----------------
      ---------------------------------------------------------------------- ---------------- ----------------
      Equity in losses of affiliates                                                13,579                -
      ---------------------------------------------------------------------- ---------------- ----------------
      ---------------------------------------------------------------------- ---------------- ----------------
      Shares to be issued                                                                           479,205
                                                                             ---------------    -----------
                                                                                         -
      ---------------------------------------------------------------------- ---------------- ----------------
      ---------------------------------------------------------------------- ---------------- ----------------
                                                                                 1,952,651          213,539
                                                                               ===========      ===========
      ---------------------------------------------------------------------- ---------------- ----------------
</TABLE>

7.     COMMITMENTS AND CONTINGENCIES

       South  African  Secondary  Tax on Companies at 12,5 percent is payable on
       all  dividends  declared out of  distributable  reserves of South African
       companies.

       The  company has  guaranteed  the  banking  facilities  of certain of its
       subsidiaries  previously disposed of during prior years. These guarantees
       amount to $1,580,000

       The Future  minimum  non-cancellable  operating  lease  payments  are not
       material.

8.     SUBSEQUENT EVENTS

       On October 12,  2000,  the sale of  Lifestyle  became  irrevocable  after
       approval of the South African regulatory authorities was obtained.

       On November 17, 2000 LPHL  acquired all of the assets and the business of
       the Fantasy Sports division of goracing  Interactive Services Inc., for a
       purchase consideration of $3,5 Million

                                      -13-
<PAGE>

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS

BACKGROUND AND HISTORY

Leisureplanet Holdings Limited ("LPHL"),  formerly First South Africa Corp., Ltd
was  incorporated  in September  1995.  The  Company's  intention is to actively
pursue acquisitions fitting a pre defined investment strategy:

o    Acquiring   controlling  stakes  in  small,  high  quality,   high  growth,
     Technology and Internet related businesses with strong management teams.

o    Our investments must show an ability to contribute,  in the short to medium
     term,   to  earnings  per  share  through   operating   profit  or  capital
     appreciation.

o    We aim to add value to our  investments  by operating in  partnership  with
     committed, incentivised, entrepreneurial management who show the vision and
     ability to grow their businesses into industry or niche leaders.

The Company has disposed of First Lifestyle Holdings Limited ("Lifestyle"),  its
remaining  South  African  operating  subsidiary.  On June 21,  2000 the Company
received an offer from  Lifestyle  management to buy Lifestyle from the Company.
The Company  accepted  the offer on September  26, 2000 at a general  meeting of
Lifestyle shareholders.  Regulatory approval was obtained from the South African
monopolies  commission on October 12, 2000. Proceeds from the sale were received
on November 6, 2000.

Due to the lack of investor  appetite for loss making  Internet  businesses,  no
further  funding  was  available  to fund the  activities  of  Leisureplanet.com
("LPI"), the Internet travel related business.  On August 2, 2000 LPI was placed
under voluntary  administration  in the United Kingdom.  Full provision has been
made for the Company's investment in LPI in the accounts for the year ended June
30, 2000..

RESULTS OF OPERATIONS

The results of  operations  analyse  the  corporate  activity  of the group,  as
Lifestyle and LPI are no longer included as continuing operations. Discussion of
the  results  of these  operations  is given  under  the  heading,  discontinued
operations, below.

QUARTER ENDED SEPTEMBER 30, 2000 AS COMPARED TO QUARTER ENDED SEPTEMBER 30, 1999

Selling, general and administrative expenses

       Selling,  general  and  administrative  expenses  for the  quarter  ended
       September  30,  2000  increased  by $0,15  Million  to $0,38  Million  as
       compared to $0,23 Million for the quarter ended  September 30, 1999. This
       increase is primarily due to the level of corporate  activity  undertaken
       by the Company head office to support its new equity  investments  and to
       actively  seek out new  investments  utilising the  pre-defined  criteria
       identified above.

Amortisation of intangibles
 .
       Amortisation  of  intangibles  increased from $0,06 Million for the three
       months  ended  September  30, 1999 to $0,15  Million in the three  months
       ended September 30, 2000. This increase is primarily due to goodwill that
       arose on the investment in Magnolia  Broadband,  which  contributed  $0,1
       Million to the current year charge.

Depreciation

       Depreciation  charge  relates to minor office  equipment;  furniture  and
       computer equipment.  Due to the nature of the head office function, these
       charges are immaterial.


                                      -14-
<PAGE>

QUARTER ENDED SEPTEMBER 30, 2000 AS COMPARED TO QUARTER ENDED SEPTEMBER 30, 1999
(CONTINUED)

Foreign currency loss

       Foreign  currency loss of $0,47 Million  represents  the loss realized on
       the translation of the amount owing to LPHL from FSAH.

Provision for income taxes

       The Company is registered in Bermuda, where no tax laws are applicable.

Equity in losses of affiliates

       The Company acquired a 48% stake in Magnolia Broadband and a 51% stake in
       HotelSupplyGroup.com.  These companies are start-up ventures,  which have
       only incurred  expenses to date.  The charge of $0,25 Million  represents
       the Company's  equity  accounted share of their operating  losses for the
       period.

Preference dividend declared

       During the current  quarter  the  preference  dividend  on the  mandatory
       redeemable  preference shares has been accrued on a time proportion basis
       as the agreement to pay  preference  dividends  provides for two options,
       the first being that the  dividend  payable must be based on the ordinary
       dividend  declared by Lifestyle,  or the second option must increase by a
       minimum of 25% percent  over the prior year.  The first option is payable
       three days after receipt of the Lifestyle dividend,  the second option is
       payable  on  February  19,  of each  calendar  year.  Since no  Lifestyle
       preference  dividend  was  declared  during the prior fiscal year and the
       mandatory redeemable preference shares are to be redeemed during November
       2000 a further dividend of $0,12 Million has been provided for during the
       current quarter.

Interest expense

       Interest  expense has decreased by $0,30 Million from an interest expense
       of $0,48 Million to $0,17 Million.  The  conversion of debentures  during
       the  previous  fiscal year has  resulted in a saving of $0,28  Million in
       interest over the same period in the prior year.

Discontinued operations

       During the current  quarter a gain of $0,54 Million arose on discontinued
       operations  as  compared  to a loss of $2,16  Million  in the prior  year
       September quarter. The prior year quarter included a loss of 2,77 Million
       relating to LPI. LPI went into administration  during the current quarter
       and no further operating losses were recorded as the remaining assets and
       liabilities  were fully  provided  for at June 30,  2000.  The net income
       generated by Lifestyle  decreased by $0,06 Million over the prior quarter
       due to  deterioration  in the South  African  exchange rate and a smaller
       percentage shareholding in Lifestyle as compared to the prior year.

Net (loss)/income

       As a result of the above the Company has achieved a loss of $1,00 Million
       in the  current  quarter as  compared  to a loss of $2,93  Million in the
       quarter ended September 30, 1999.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

       Cash  decreased by $8,04 Million from $29,85  Million to $21.81  Million.
       The  decrease  is due to the  utilisation  of  cash  by the  discontinued
       Lifestyle   operation  to  fund  the  working  capital  cycle  and  asset
       acquisitions.

                                      -15-
<PAGE>

       Working capital  decreased by $2,43 Million from $31,41 Million to $28.98
       Million  primarily  due to an increase in  accounts  receivable  of $3,41
       Million,  a decrease in accounts  payable of $3,83 Million and a decrease
       in other assets of $0.65 Million.

       At June 30, 2000 we had borrowings of $18,48 Million,  this has increased
       to $18,85 Million due to  utilisation  of funding in the working  capital
       cycle of the Lifestyle business.

       Operations for the quarter ended September 30, 2000,  excluding  non-cash
       charges  resulted in the  utilisation of $6,57 Million,  primarily in the
       utilisation  of working  capital  in the  Lifestyle  business.  Investing
       activities  undertaken by the group resulted in the untilisation of $1,36
       Million primarily due to the acquisition of property, plant and equipment
       of  $1,52  Million  by  Lifestyle.  Funding  activities  resulted  in the
       generation of $0,53 Million,  primarily in short term  borrowings to fund
       working capital requirements of Lifestyle.

FUTURE COMMITMENTS

       The cash  receivable  from the disposal of Lifestyle  will fully fund the
       redemption of the mandatory redeemable  preference shares and the partial
       redemption of the increasing  rate  debentures  during the current fiscal
       year. Excess cash will be utilised to fund additional acquisitions in the
       Internet technology market sector.

       The  Company  intends to continue  to pursue an  acquisition  strategy in
       Internet  technology  companies and  anticipates  utilising a substantial
       portion of its  remaining  cash balances and the proceeds of its disposal
       of  Lifestyle  to  fund  this   strategy  to  the  extent  that  suitable
       acquisition  candidates  can be  identified.  On  November  17,  2000 the
       Company acquired  substantially all of the assets and business of Fantasy
       Sports, a division of goracing Interactive Services, Inc., for a purchase
       consideration of $3.5 Million.

       The Company may be required to incur  additional  indebtedness  or equity
       financing in connection with the funding of future acquisitions. There is
       no  assurance  that  the  Company  will  be  able  to  incur   additional
       indebtedness or raise additional equity to finance future acquisitions on
       terms acceptable to management, if at all.

ITEM 3:  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

       The company does not ordinarily  hold market risk  sensitive  instruments
       for trading purposes. The company does however recognise market risk from
       interest rate and foreign currency exchange exposure.

       INTEREST RATE RISK

       At September  30, 2000 the  Company's  cash  resources  earn  interest at
       variable  rates.  Accordingly  the  Company's  return  on these  funds is
       affected by fluctuations  in interest  rates.  The debt of the continuing
       operations is primarily at fixed interest rates. Any decrease in interest
       rates will have a negative effect on the Company's earnings.  There is no
       assurance  that  interest  rates will  increase or decrease over the next
       fiscal year.

       FOREIGN CURRENCY RISK

       The  expected  proceeds  from the sale of  Lifestyle  will be received in
       South African Rands. This exposes the Company to market risk with respect
       to  fluctuations  in the relative value of the South African Rand against
       the US Dollar. Due to the prohibitive cost of hedging these proceeds, the
       exposure has not been covered as yet,  should more  favorable  conditions
       arise a suitable Rand hedge may be considered by management. For every 1%
       decline in the Rand/US Dollar exchange rate, the Company loses R72,850 on
       every R1,000,000  retained in South Africa,  at the quarter-end  exchange
       rates,  this is equivalent to $10,000.  Subsequent to the quarter-end the
       Rand has  depreciated  against  the US Dollar by  approximately  2,95% to
       November 15, 2000.

                                      -16-
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 5:  OTHER INFORMATION

Subsequent Events
-----------------

         On October 11, 2000 (the "Closing  Date"),  First South Africa Holdings
PTY Ltd. ("FSA"), a wholly owned subsidiary of Leisureplanet Holdings, Ltd. (the
"Company")  disposed of all of the assets of its majority owned subsidiary First
Lifestyle  Holdings,  Ltd.,  a  South  Africa  corporation  ("First  Lifestyle")
pursuant  to  an  Asset  Purchase   Agreement  dated  September  26,  2000  (the
"Agreement")  between FSA and  minority  shareholders  of First  Lifestyle  (the
"Sellers")  and Ethos  Private  Equity,  a South Africa  corporation,  Cornelius
Roodt,  a  director  of  the  Company,   and  certain  other   purchasers   (the
"Purchasers).  Pursuant to the  Agreement,  the Sellers sold, and the Purchasers
purchased,  all of the assets of First Lifestyle for an aggregate purchase price
of approximately $67,000,000 in cash, of which a pro rata share of approximately
$34,000,000 was paid to FSA.

         The  Company  disclosed  this  transction  on a Form 8-K filed with the
Securities  and  Exchange  Commission  on October 12, 2000 which  included a pro
forma  consolidated  balance sheet assuming the sale of First  Lifestyle and the
liquidation of LPI, Ltd. effective as of June 30, 2000.

ITEM 6:  EXHIBITS AND REPORTS ON FORM 8-K

              (a) Exhibits

                  11.1 Computation of (loss) earnings per share.
                  27.1 Financial Data Schedule

              (b) Reports on Form 8-K filed during  quarter ended  September 30,
2000:

                  None.

                                      -17-

<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

Date:   November 20, 2000

                                          LEISUREPLANET HOLDINGS, LTD.


                                          /s/ Clive Kabatznik
                                          --------------------------------------
                                          Clive Kabatznik
                                          Chief Executive Officer, President and
                                          Chief Financial Officer


                                      -18-