<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 June 30, 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 August 4, 2003: 5,762,056 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 Stockholders' 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. 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

                                            June 30,   December 31,
                                              2003          2002
                                         --------------------------
CURRENT ASSETS
   Cash and cash equivalents             $   116,721    $   295,945
   Accounts receivable                     1,706,455      3,129,595
   Prepaid expenses                          251,576         51,348
                                         -----------    -----------

            Total current assets           2,074,752      3,476,888
                                         -----------    -----------


FIXED ASSETS
   Furniture and fixtures                     91,266         91,266
   Machinery and equipment                 1,011,451        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
                                         -----------    -----------
                                           3,293,872      3,280,825
    Less:  accumulated depreciation       (1,748,493)    (1,582,187)
                                         -----------    -----------

            Fixed assets, net              1,545,379      1,698,638
                                         -----------    -----------


OTHER ASSETS
   Goodwill                                   84,973         84,973
   Other non-current receivables             229,163              -
   Security deposits and other assets         43,065         66,573
                                         -----------    -----------

            Total other assets               357,201        151,546
                                         -----------    -----------

                Total assets             $ 3,977,332    $ 5,327,072
                                         ===========    ===========

                                       1
<PAGE>

                                 LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                               June 30,   December 31,
                                                                2003          2002
                                                             ----------    ----------
<S>                                                         <C>          <C>
CURRENT LIABILITIES
   Line of credit                                           $   961,365  $  1,399,159
   Obligations under capital leases                             101,496       133,727
   Accounts payable                                             274,020       329,935
   Accrued expenses and taxes                                   385,010       966,802
   Deferred tax liability                                        25,621        25,621
                                                             ----------    ----------

            Total current liabilities                         1,747,512     2,855,244
                                                             ----------    ----------


LONG-TERM LIABILITIES
   Obligations under capital leases                              62,047       109,810
   Deferred tax liability                                       321,771       321,771
                                                             ----------    ----------

            Total long-term liabilities                         383,818       431,581
                                                             ----------    ----------

               Total liabilities                              2,131,330     3,286,825
                                                             ----------    ----------


STOCKHOLDERS' EQUITY
   Common stock - $.0001 par value; 100,000,000

      shares authorized                                             576         2,880
   Additional paid-in capital                                 2,024,822     2,024,822
   Retained earnings (accumulated deficit)                     (101,456)       82,985

   Treasury stock                                                (7,500)            -
   Notes receivable from stock sales                            (70,440)      (70,440)
                                                             ----------    ----------

            Total stockholders' equity                        1,846,002     2,040,247
                                                             ----------    ----------

                Total liabilities and stockholders' equity  $ 3,977,332  $  5,327,072
                                                             ==========    ==========
</TABLE>


                                       2


<PAGE>


                        Diamond International Group, Inc.
                        Consolidated Statements of Income

<TABLE>
<CAPTION>
                                                         Three Months Ended June 30, Six Months Ended June 30,
                                                              2003         2002          2003          2002
                                                          -------------------------- --------------------------

<S>                                                       <C>          <C>           <C>          <C>
Fulfillment income                                        $  2,031,285 $   2,785,808 $  4,711,958 $   4,985,707

Cost of operations                                           1,537,442     1,767,654    3,329,446     3,310,992
                                                            ----------    ----------   -----------   ----------

Gross profit                                                   493,843     1,018,154    1,382,512     1,674,715

Selling, general and administrative expenses                   452,599       463,031      947,365       891,990
                                                            ----------    ----------   -----------   ----------

Income before other expenses                                    41,244       555,123      435,147       782,725
                                                            ----------    ----------   -----------   ----------

Other expenses

   Write-off of uncollectible accounts receivible              500,000             -      500,000             -
    Interest expense                                            26,234        47,148       53,449        85,181
    Depreciation and amortization                               82,110       102,856      166,306       188,356
                                                            ----------    ----------   -----------   ----------

            Total other expenses                               608,344       150,004      719,755       273,537
                                                            ----------    ----------   -----------   ----------

Income (loss) before provision (benefit) for income taxes     (567,100)      405,119     (284,608)      509,188

Provision (benefit) for income taxes                          (215,175)      154,459      (97,863)      156,587
                                                            ----------    ----------   -----------   ----------

                Net income (loss)                         $   (351,925) $    250,660  $  (186,745) $    352,601
                                                            ==========    ==========   ===========   ==========

Basic and diluted net income (loss) per common share      $      (0.06) $       0.04  $     (0.03) $       0.06
                                                            ==========    ==========   ===========   ==========

Weighted average common shares used in computing
  net income (loss) per common share                         5,754,882     5,761,014    5,756,982     5,746,007
                                                            ==========    ==========   ===========   ==========
</TABLE>

                                        3



<PAGE>

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



<TABLE>
<CAPTION>
                                                                          Retained
                                                           Additional     Earnings                     Notes
                                             Common         Paid-in     (Accumulated    Treasury     Receivable
                                Shares        Stock         Capital        Deficit)       Stock   from Stock Sales      Total
                             -----------    -----------   ------------   ------------   --------- ----------------   -----------

<S>                           <C>           <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

Reverse stock split          (23,044,057)        (2,304)             -         2,304            -           -                 -

Purchase of treasury stock             -              -              -             -       (7,500)          -            (7,500)

Net loss                               -              -              -      (186,745)           -           -          (186,745)
                             -----------    -----------   ------------   ------------   ---------   -----------     -----------

Balance at June 30, 2003       5,761,014    $       576    $ 2,024,822   $  (101,456)   $  (7,500) $  (70,440)      $ 1,846,002
                             ===========    ===========   ===========    ============   =========   ===========     ===========


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

Issuance of common stock         150,071             15          8,085             -            -             -           8,100

Net income                             -              -              -       352,601            -             -         352,601
                             -----------    -----------   -----------    ------------   ---------   -----------     -----------
Balance at June 30, 2002      28,805,071    $     2,880    $ 2,024,822   $  (492,122)   $       -  $   (70,440)     $ 1,465,140
                             ===========    ===========   ===========    ============   =========   ===========     ===========

</TABLE>

                                       4
<PAGE>


                        Diamond International Group, Inc.
                      Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                   Six months ended June 30,
                                                                      2003           2002
                                                                  --------------------------
<S>                                                               <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income                                                 $  (186,745)   $   352,601
                                                                  -----------    -----------

Adjustments to reconcile net (loss) income to net cash
provided by operating activities:
    Depreciation and amortization                                     166,306        188,356
    Changes in assets and liabilities:
      Accounts receivable                                           1,423,140       (739,865)
      Prepaid expenses                                               (200,228)       (48,620)
      Security deposits and other assets                               23,508         13,832
      Other non-current receivables                                  (229,163)             -
      Accounts payable                                                (55,915)       203,484
      Accrued expenses and taxes                                     (581,792)       131,537
                                                                  -----------    -----------
         Total adjustments                                            545,856       (251,276)
                                                                  -----------    -----------

            Net cash provided by operating activities                 359,111        101,325
                                                                  -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of machinery and equipment                               (13,047)      (127,709)
                                                                  -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net (repayments) borrowings on line of credit                     (437,794)        97,397
   Principal payments of capital lease obligations                    (79,994)       (92,595)

   Purchase of treasury stock                                          (7,500)             -
   Issuance of common stock                                                 -          8,100
   Loan proceeds from (payments to) stockholders                            -         70,000
                                                                  -----------    -----------

            Net cash (used in) provided by financing activities      (525,288)        82,902
                                                                  -----------    -----------

Net (decrease) increase in cash and cash equivalents                 (179,224)        56,518

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

Cash and cash equivalents - End of period                         $   116,721    $    93,336
                                                                  ===========    ===========


SUPPLEMENTAL CASH FLOW INFORMATION
   Interest paid                                                       53,449         47,148
                                                                  ===========    ===========
   Income taxes paid                                              $   607,652    $       798
                                                                  ===========    ===========
   New capital lease obligations                                  $         -    $     8,347
                                                                  ===========    ===========

</TABLE>

                                       5
<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 and six months ended
     June 30, 2003 and 2002 together with the balance sheet as of June 30, 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 June 30, 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.


NOTE 2 - REVERSE STOCK SPLIT

     In April 2003, the Board of Directors approved a 1-for-5 stock split of
     Diamond's outstanding shares of common stock. The reverse stock split
     became effective in May 2003. The par value of the common stock did not
     change. The computation of weighted average common shares and earnings per
     share for all periods presented have been adjusted to reflect this reverse
     stock split.


NOTE 3 - TREASURY STOCK

     Treasury stock is shown at cost and consists of 6,400 shares (post reverse
split) of common stock.


NOTE 4 - UNCOLLECTIBLE ACCOUNTS RECEIVABLE

     In June 2003, the parent company of one of the Company's clients declared
     bankruptcy. In connection with this bankruptcy, the Company wrote off
     $500,000 of uncollectible accounts receivable.


                                       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)
------------------------------------
<TABLE>
<CAPTION>
                                                                              Three Months Ended June 30,
                                                                             2003                    2002
                                                                             ----                     ----
<S>                                                                      <C>                       <C>
Net Sales                                                                $      2,031              $    2,786
Cost of Operations                                                              1,537                   1,768
Gross Profit                                                                      494                   1,018
Selling, General and Administrative Expenses                                      453                     463
Operating results before Depreciation, interest,and taxes                          41                     555

                                                                                 Six Months Ended June 30,
                                                                               2003                    2002
                                                                               ----                    ----
Net Sales                                                                $     4,712               $   4,985
Cost of Operations                                                             3,330                   3,311
Gross Profit                                                                   1,382                   1,674
Selling, General and Administrative Expenses                                     947                     892
Operating results before Depreciation, interest, and taxes                       435                     782

</TABLE>

Revenues from operations during the three and six months ended June 30, 2003
were $2,031 and $4,712, respectively, as compared to $2,786 and $4,985,
respectively, for the three and six months ended June 30, 2002. The decreases in
sales were due to suspending services for one client for failure to make timely
payments. The client's parent company sold the client to a third party for whom
the Company has resumed performing services.

The gross profit margin over the six months ended June 30, 2003 declined by 4.3%
over the same period last year primarily due to the fixed portion of direct
expenses being spread over a lower volume of fulfillment revenues.

Selling, general and administrative expenses increased to $947 for the six
months ended June 30, 2003 as compared to $892 for the six months ended June 30,
2002, mostly a result of additional consulting and maintenance fees related to
the Company's data processing applications. This increase is partially mitigated
by decreases in office and other administrative expenses.

Liquidity (In Thousands)
------------------------

                                         Six Months Ended June 30,
                                         2003                2002
                                         ----               ----
Net Cash Provided by Operations       $   359            $    101


                                        June 30,          December 31,
                                         2003                2002
                                         ----                ----
Working Capital                          327                 622


Net cash flows from operations increased from $101 during the six months ended
June 30, 2002 to $359 during the six months ended June 30, 2003. This increase
was due to the substantial collections of receivables during the period offset
by the timing of payments of expenses, primarily income taxes.

The Company had a working capital surplus of $327 as of June 30, 2003 as
compared to a working capital surplus of $622 as of December 31, 2002. The
decline in the working capital resulted from the net loss for the period as well
as the reclassification of certain accounts receivable to non-current.

                                       7
<PAGE>

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 customer 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.


                                       8
<PAGE>

<TABLE>
<CAPTION>


                           PART II - OTHER INFORMATION

<S>       <C>                                               <C>
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       On April 21, 2003. a majority of
          Holders.                                           the shareholders of the Company
                                                            approved a 1-5
                                                            reverse split of the
                                                            Company's issued and
                                                            outstanding shares.
                                                            No shareholder
                                                            meeting was
                                                            undertaken for such
                                                            vote.


Item 5.   Other Information.                                None

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

</TABLE>


                                       9
<PAGE>

                                   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 August 4, 2003.


                             DIAMOND INTERNATIONAL GROUP, INC.

Date:  August 4, 2003        By: /s/  Richard Levinson
                             -------------------------
                             Richard Levinson
                             Chairman and President




                                       10
<PAGE>


                                CERTIFICATION OF
                             CHIEF EXECUTIVE OFFICER AND
                              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, 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: August 4, 2003

/s/ Richard Levinson
-------------------------
Richard Levinson
President, Chief Executive Officer
and Chief Financial Officer


                                       11
<PAGE>