<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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


                  For the quarterly period ended March 31, 2003

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


                         For the transition period from

                          Commission File No. 000-29461

                        DIAMOND INTERNATIONAL GROUP, INC.
        (Exact name of small business issuer as specified in its charter)

            Delaware                                          73-1556428
(State or other jurisdiction of                            (I.R.S. Employer
 incorporation or organization)                           Identification No.)

                 6 Commercial Street, Hicksville, New York 11801
                    (Address of Principal Executive Offices)

                                 (516) 433-3800
                           (Issuer's telephone number)

      (Former name, address and fiscal year, if changed since last report)

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the issuer was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of May 12, 2003: 28,805,071 shares of common stock outstanding,
$0.0001 par value.

<PAGE>


                              DIAMOND INTERNATIONAL
                                   GROUP, INC.
                        CONSOLIDATED FINANCIAL STATEMENTS

                                      INDEX

                                                                            Page
                                                                            ----
Part I -- FINANCIAL INFORMATION
     Item 1. Financial Statements
                Consolidated Balance Sheets                                    1
                Liabilities and Stockholders' Equity                           2
                Consolidated Statements of Income                              3
                Consolidated Statements of Stockhlders' Equity                 4
                Consolidated Statements of Cash Flows                          5
                Notes to Financial Statements                                  6
     Item 2. Management's Discussion and Analysis of Financial Condition
      Item 3. Controls and Procedures
Part II-- OTHER INFORMATION
     Item 1. Legal Proceedings
     Item 2. Changes in Securities
     Item 3. Defaults Upon Senior Securities
     Item 4. Submission of Matters to a Vote of Security Holders
     Item 5. Other Information
     Item 6. Exhibits and Reports on Form 8-K
     Signature



Item 1. Financial Information

BASIS OF PRESENTATION

The accompanying reviewed financial statements are presented in accordance with
generally accepted accounting principles for interim financial information and
the instructions to Form 10-QSB and item 310 under subpart A of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting only of normal
occurring accruals) considered necessary in order to make the financial
statements not misleading, have been included. Operating results from inception
(April 6, 2000) and three months ended March 31, 2003 are not necessarily
indicative of results that may be expected for the year ending December 31,
2003. The financial statements are presented on the accrual basis.

                        Diamond International Group, Inc.

                   Index to Consolidated Financial Statements

                                                                            PAGE
                                                                            ----

Consolidated Balance Sheets ................................................   2

Consolidated Statements of Income ..........................................   3

Consolidated Statements of Stockholders' Equity ............................   4

Consolidated Statements of Cash Flows ......................................   5

Notes to Consolidated Financial Statements .................................   6


<PAGE>


                        Diamond International Group, Inc.
                           Consolidated Balance Sheets


                                     ASSETS

                                                    March 31,       December 31,
                                                      2003             2002
                                                   -----------      -----------

CURRENT ASSETS
   Cash and cash equivalents                       $   539,739      $   295,945
   Accounts receivable                               2,865,513        3,129,595
   Prepaid expenses                                     93,066           51,348
                                                   -----------      -----------

            Total current assets                     3,498,318        3,476,888
                                                   -----------      -----------


FIXED ASSETS
   Furniture and fixtures                               91,266           91,266
   Machinery and equipment                           1,008,837          998,404
   Leasehold improvements                              873,352          873,352
   Delivery equipment                                   10,404           10,404
   Equipment held under capital leases               1,307,399        1,307,399
                                                   -----------      -----------
                                                     3,291,258        3,280,825
    Less:  accumulated depreciation                 (1,666,383)      (1,582,187)
                                                   -----------      -----------

            Fixed assets, net                        1,624,875        1,698,638
                                                   -----------      -----------


OTHER ASSETS
   Goodwill                                             84,973           84,973
   Security deposits and other assets                   66,573           66,573
                                                   -----------      -----------

            Total other assets                         151,546          151,546
                                                   -----------      -----------

                Total assets                       $ 5,274,739      $ 5,327,072
                                                   ===========      ===========



                                       1

<PAGE>


                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                               March 31,    December 31,
                                                                 2003           2002
                                                             -----------    -----------
CURRENT LIABILITIES
<S>                                                          <C>            <C>
   Line of credit                                            $ 1,499,199    $ 1,399,159
   Obligations under capital leases - Current                    115,097        133,727
   Accounts payable                                              241,838        329,935
   Accrued expenses and taxes                                    784,547        966,802
   Deferred tax liability                                         25,621         25,621
                                                             -----------    -----------

            Total current liabilities                          2,666,302      2,855,244
                                                             -----------    -----------


LONG-TERM LIABILITIES
   Obligations under capital leases - Long-term                   86,239        109,810
   Deferred tax liability                                        321,771        321,771
                                                             -----------    -----------

            Total long-term liabilities                          408,010        431,581
                                                             -----------    -----------

               Total liabilities                               3,074,312      3,286,825
                                                             -----------    -----------


STOCKHOLDERS' EQUITY
   Common stock - $.0001 par value; 100,000,000
      shares authorized                                            2,880          2,880
   Additional paid-in capital                                  2,024,822      2,024,822
   Retained earnings                                             248,165         82,985

   Treasury stock, at cost                                        (5,000)           -
   Notes receivable from stock sales                             (70,440)       (70,440)
                                                             -----------    -----------

            Total stockholders' equity                         2,200,427      2,040,247
                                                             -----------    -----------

                Total liabilities and stockholders' equity   $ 5,274,739    $ 5,327,072
                                                             ===========    ===========
</TABLE>



                                       2

<PAGE>


                        Diamond International Group, Inc.
                        Consolidated Statements of Income


                                               Three Months Ended March 31,
                                                    2003          2002
                                                -----------   -----------

Fulfillment income                              $ 2,680,673   $ 2,199,899

Cost of operations                                1,792,004     1,445,706
                                                -----------   -----------

            Gross profit                            888,669       754,193

Selling, general and administrative expenses        494,766       526,591
                                                -----------   -----------

            Income before other expenses            393,903       227,602
                                                -----------   -----------


OTHER EXPENSES
    Interest expense                                 27,215        38,033
    Depreciation and amortization                    84,196        85,500
                                                -----------   -----------

           Total other expenses                     111,411       123,533
                                                -----------   -----------

Income before provision for income taxes            282,492       104,069

Provision for income taxes                          117,312         2,128
                                                -----------   -----------

                Net income                      $   165,180   $   101,941
                                                ===========   ===========

Basic and diluted net income per common share   $      0.01   $      0.00
                                                ===========   ===========

Weighted average common shares used in
  computing net income per common share         $28,795,404   $28,655,000
                                                ===========   ===========


                                        3

<PAGE>

                        Diamond International Group, Inc.
                 Consolidated Statements of Stockholders' Equity



<TABLE>
<CAPTION>
                                                                        Additional                 Notes
                                             Common        Paid-In       Retained    Treasury    Receivable
                               Shares         Stock        Capital       Earnings      Stock  from Stock Sales    Total
---------------------------------------------------------------------------------------------------------------------------
<S>                           <C>          <C>           <C>           <C>                      <C>            <C>
Balance at January 1, 2003    28,805,071   $     2,880   $ 2,024,822   $    82,985          -   $   (70,440)   $ 2,040,247


Purchase of treasury stock           -             -             -             -       (5,000)          -           (5,000)


Net income                           -             -             -         165,180          -           -          165,180
                             -----------   -----------   -----------   -----------    -------   -----------    -----------

Balance at March 31, 2003     28,805,071   $     2,880   $ 2,024,822   $   248,165    $(5,000)  $   (70,440)   $ 2,200,427
                             ===========   ===========   ===========   ===========    =======   ===========    ===========



Balance at January 1, 2002    28,655,000   $     2,865   $ 2,016,737   $  (844,723)   $     -   $   (70,440)   $ 1,104,439


Net income                           -             -             -         101,941          -           -          101,941
                             -----------   -----------   -----------   -----------    -------   -----------    -----------

Balance at March 31, 2002     28,655,000   $     2,865   $ 2,016,737   $  (742,782)   $     -   $   (70,440)   $ 1,206,380
                             ===========   ===========   ===========   ===========    =======   ===========    ===========
</TABLE>


<PAGE>


                        Diamond International Group, Inc.
                      Consolidated Statements of Cash Flows



<TABLE>
<CAPTION>
                                                                         Three months ended March 31,
                                                                              2003        2002
                                                                           ---------    ---------

CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                        <C>          <C>
   Net income                                                              $ 165,180    $ 101,941
                                                                           ---------    ---------

   Adjustments to reconcile net income to net cash provided by operating
    activities:
      Depreciation and amortization                                           84,196       85,500
      Changes in assets and liabilities:
        Accounts receivable                                                  264,082     (180,345)
        Prepaid expenses                                                     (41,718)     (28,068)
        Accounts payable                                                     (88,097)     109,206
        Accrued expenses and taxes                                          (182,255)      73,874
                                                                           ---------    ---------
            Total adjustments                                                 36,208       60,167
                                                                           ---------    ---------

            Net cash provided by operating activities                        201,388      162,108
                                                                           ---------    ---------


CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of fixed assets                                                 (10,433)     (32,431)
                                                                           ---------    ---------


CASH FLOWS FROM FINANCING ACTIVITIES
   Net borrowings on line of credit                                          100,040     (149,650)
   Principal payments of capital lease obligations                           (42,201)     (57,707)

   Purchase of treasury stock                                                 (5,000)          --

   Loan proceeds from stockholders                                                --       70,000
                                                                           ---------    ---------

            Net cash provided by (used in) financing activities               52,839     (137,357)
                                                                           ---------    ---------


Net increase (decrease) in cash and cash equivalents                         243,794       (7,680)

Cash and cash equivalents - Beginning of period                              295,945       36,818
                                                                           ---------    ---------

Cash and cash equivalents - End of period                                  $ 539,739    $  29,138
                                                                           =========    =========


SUPPLEMENTAL CASH FLOW INFORMATION
   Interest paid                                                           $  27,215    $  38,033
                                                                           =========    =========
   Income taxes paid                                                       $ 460,497    $     813
                                                                           =========    =========
</TABLE>



<PAGE>

                        Diamond International Group, Inc.
                   Notes to Consolidated Financial Statements

NOTE 1 - NATURE OF BUSINESS AND BASIS OF PRESENTATION

     Diamond International Group, Inc. ("Diamond") was incorporated on November
     5, 1998 for the express purpose of acquiring all of the outstanding common
     stock of H. Y. Applied Inter-Data Services, Inc. ("Hyaid"). Hyaid operates
     a computerized order fulfillment service for clients in the direct mail
     order business.

     The consolidated financial statements for the three months ended March 31,
     2003 and 2002 together with the balance sheet as of March 31, 2003 included
     herein have not been audited by Diamond's (together with Hyaid, the
     "Company") independent public accountants. In the opinion of management,
     all adjustments necessary to present fairly the financial position at March
     31, 2003 and the results of operations and cash flows for the periods
     presented herein have been made.

     The consolidated financial statements included herein have been prepared
     pursuant to the rules and regulations of the Securities and Exchange
     Commission. Certain information and footnote disclosures normally included
     in financial statements prepared in accordance with accounting principles
     generally accepted in the United States of America have been omitted
     pursuant to such regulations. These consolidated financial statements
     should be read in conjunction with the consolidated financial statements
     and notes thereto included in the Company's Annual Report on Form 10-KSB
     for the year ended December 31, 2002.



                                     Page 6
<PAGE>


                        DIAMOND INTERNATIONAL GROUP, INC.
                      MANAGEMENT'S DISCUSSION AND ANALYSIS

Forward-Looking Statements
--------------------------

Forward-looking statements, based on management's current views and assumptions,
are made throughout the Management's Discussion and Analysis and elsewhere in
this report to stockholders. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical results and those presently anticipated or projected. Among the
factors that may affect operating results are the following: success of the
Company's change in focus; competitive environment; and general economic
conditions.

Results of Operations (In Thousands)
------------------------------------


                                Three Months Ended March 31,
                               2003                      2002
                               ----                      ----
         Net Sales            $2,681                    $2,200
     Cost of Operations        1,792                     1,446
        Gross Profit             889                       754
    Selling, General and
  Administrative Expenses        495                       527

  Operating results before
Depreciation, interest, and
           taxes                 394                       227


<PAGE>

Revenues from operations during the three months ended March 31, 2003 were $2.6
million, as compared to $2.2 million, for the three months ended March 31, 2002.
The increases in sales were due to the expansion in certain clients programs and
an increase in the level of correspondence business from various clients.

The gross profit margin over the three months ended March 31, 2003 decreased
slightly by 1.1% over the same period last year primarily due to price increases
of some of the direct expenses used in our operations.


The selling, general and administrative expenses decreased to $494,700 for the
three months ended March 31, 2003 as compared to $526,600 for the three months
ended March 31, 2002. This decrease is mostly a result of controlling the cost
of repairs, maintenance and office supplies. The actual percentage of Selling,
general and administrative expenses as compared to revenues has decreased from
24% in 2002, to18% in 2003.

Liquidity (In Thousands)
------------------------
                                                    Three Months Ended March 31,
                                                        2003                2002
                                                        ----                ----
Net Cash Provided by                                  $   201               $162
Operations
                                                        March 31,   December 31,
                                                             2003           2002
                                                             ----           ----
Working Capital                                               832            622

Net cash flows from operations increased from $162,000 during the three months
ended March 31, 2002 to $201,000 during the three months ended March 31, 2003.
This increase was primarily due to the flow through of operating profits as well
as the timing of collections of receivables and payments of payables for the
period.

The Company had a working capital surplus of $832,000 as of March 31, 2003 as
compared to a working capital deficit of $622,000 as of December 31, 2002. The
major improvement in the working capital resulted from the decrease in current
liabilities which was made possible by the net income of the company in the
first quarter of 2003.

Future Outlook
--------------

The Company is aggressively looking for profitable companies to acquire as well
as to joint venture and/or partner with all in the direct mail marketing sales
and servicing industry. The businesses that the Company acquires, joint venture
and/or partners with will be mainly in the area of product sales either in the
direct mail, space, internet, infomercial and other large scale consumer
penetration mediums. This is the most natural fit, given the experiences of
management in the success running of types of businesses and the proprietary
software and systems developed to service these businesses. In addition, the
Company is in the process of expanding its operations to include the licensing
of its custom service software. Currently, the Company has a contract to license
this software to a major credit and collections company and anticipates entering
into additional contracts in the near future.

Item 3. Controls and Procedures

(a)   Evaluation of disclosure controls and procedures.

      Our Chief Executive Officer and Chief Financial Officer (collectively the
      "Certifying Officers") maintain a system of disclosure controls and
      procedures that is designed to provide reasonable assurance that
      information, which is required to be disclosed, is accumulated and
      communicated to management timely. Under the supervision and with the
      participation of management, the Certifying Officers evaluated the
      effectiveness of the design and operation of our disclosure controls and
      procedures (as defined in Rule [13a-14(c)/15d-14(c)] under the Exchange
      Act) within 90 days prior to the filing date of this report. Based upon
      that evaluation, the Certifying Officers concluded that our disclosure
      controls and procedures are effective in timely alerting them to material
      information relative to our company required to be disclosed in our
      periodic filings with the SEC.


(b)   Changes in internal controls.

      Our Certifying Officers have indicated that there were no significant
      changes in our internal controls or other factors that could significantly
      affect such controls subsequent to the date of their evaluation, and there
      were no such control actions with regard to significant deficiencies and
      material weaknesses.

<PAGE>



                           PART II - OTHER INFORMATION

Item 1.   Legal Proceedings.                                Not Applicable

Item 2.   Changes in Securities.                            None

Item 3.   Defaults Upon Senior Securities.                  Not Applicable

Item 4.   Submission of Matters to a Vote of Security       None
          Holders.

Item 5.   Other Information.                                None

Item 6.   Exhibits and Reports of Form 8-K.                 None



                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed in its
behalf by the undersigned, thereunto duly authorized, on May 14, 2003.


                             DIAMOND INTERNATIONAL GROUP, INC.

Date:  May 14, 2003          By: /s/  Richard Levinson
                             -------------------------
                             Richard Levinson
                             Chairman and President



<PAGE>

                                CERTIFICATION OF
                             CHIEF EXECUTIVE OFFICER
                                   PURSUANT TO
                             18 U.S.C. SECTION 1350,
                    AS ADOPTED PURSUANT TO SECTION 906 OF THE
                           SARBANES-OXLEY ACT OF 2002

I, Richard Levinson certify that:

1.    I have reviewed this quarterly report on Form 10-QSB of Diamond
      International Group, Inc.

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in the quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in the
      quarterly report;

4.    I am responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
      registrant and have:

      a)   designed such disclosure controls and procedures to ensure that
           material information relating to the registrant, including its
           consolidated subsidiaries, if any, is made known to us by others
           within those entities, particularly during the period in which this
           quarterly report is being prepared;

      b)   evaluated the effectiveness of the registrant's disclosure controls
           and procedures as of a date within 90 days prior to the filing date
           of this quarterly report (the "Evaluation Date"); and

      c)   presented in this quarterly report our conclusions about
           effectiveness of the disclosure controls and procedures based on our
           evaluation as of the Evaluation Date;

5.    I have disclosed, based on our most recent evaluation, to the registrant's
      auditors and the audit committee of registrant's board of directors (or
      persons performing the equivalent functions):

      a)   all significant deficiencies in the design or operation of internal
           controls which could adversely affect the registrant's ability to
           record, process, summarize and report financial data and have
           identified for the registrant's auditors any material weakness in
           internal controls; and

      b)   any fraud, whether or not material, that involves management or other
           employees who have a significant role in the registrant's internal
           controls; and


6.    I have indicated in the quarterly report whether there were significant
      changes in internal controls or in other factors that could significantly
      affect internal controls subsequent to the date of our most recent
      evaluation, including any corrective actions with regard to significant
      deficiencies and material weaknesses.


Dated: May 14, 2003

/s/ Richard Levinson
-------------------------
Richard Levinson
Chairman and President


<PAGE>



                                CERTIFICATION OF
                             CHIEF FINANCIAL OFFICER
                                   PURSUANT TO
                             18 U.S.C. SECTION 1350,
                    AS ADOPTED PURSUANT TO SECTION 906 OF THE
                           SARBANES-OXLEY ACT OF 2002

I, Michael McQuillan, certify that:

1.    I have reviewed this quarterly report on Form 10-QSB of Diamond
      International Group, Inc.

2.    Based on my knowledge, the quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in the quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in this
      quarterly report;

4.    I am responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
      registrant and have:

      a)   designed such disclosure controls and procedures to ensure that
           material information relating to the registrant, including its
           consolidated subsidiaries, is made known to us by others within those
           entities, particularly during the period in which this quarterly
           report is being prepared;

      b)   evaluated the effectiveness of the registrant's disclosure controls
           and procedures as of a date within 90 days prior to the filing date
           of this quarterly report (the "Evaluation Date"); and

      c)   presented in this quarterly report our conclusions about
           effectiveness of the disclosure controls and procedures based on our
           evaluation as of the Evaluation Date;

5.    I have disclosed, based on our most recent evaluation, to the registrant's
      auditors and the audit committee of registrant's board of directors (or
      persons performing the equivalent functions):

      a)   all significant deficiencies in the design or operation of internal
           controls which could adversely affect the registrant's ability to
           record, process, summarize and report financial data and have
           identified for the registrant's auditors any material weakness in
           internal controls; and

      b)   any fraud, whether or not material, that involves management or other
           employees who have a significant role in the registrant's internal
           controls; and
6.    I have indicated in this quarterly report whether there were significant
      changes in internal controls or in other factors that could significantly
      affect internal controls subsequent to the date of our most recent
      evaluation, including any corrective actions with regard to significant
      deficiencies and material weaknesses.


Dated: May 14, 2003

/s/ Michael McQuillan
---------------------------
Michael McQuillan
Chief Financial Officer

<PAGE>