U.S. Securities and Exchange Commission
                             Washington, D.C. 20549



                                   FORM 10-QSB




(Mark One)
[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 For the period ended January 31, 2003


[  ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 [No Fee Required]
         For the transition period from                to
                                        --------------


         Commission File number 0-21019


                           INNOVATIVE MEDICAL SERVICES
                  --------------------------------------------
                 (Name of small business issuer in its charter)


            California                                  33-0530289
    ------------------------------             -------------------------------
   (State or other jurisdiction of            (IRS Employer Identification No.)
    incorporation or organization)



                 1725 Gillespie Way, El Cajon, California 92020
                    (Address of principal executive offices)


                                  619 596 8600
                            -------------------------
                            Issuer's telephone number

         Check whether the issuer (1) filed all reports to be filed by Section
13 or 15(d) of the Exchange Act during the past 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

         State the number of shares outstanding of each of the issuer's classes
of common equity as of the latest practicable date: 9,826,731 as of March 14,
2003.





<PAGE>



INNOVATIVE MEDICAL SERVICES
INDEX

PART 1.  FINANCIAL INFORMATION
         Item 1.   Financial Statements
                   Balance Sheets as of July 31, 2002 and January 31, 2003
                   Statements of Operations for the three and six months
                   ended January 31, 2002 and 2003 Statements of Cash Flows
                   for the six months ended January 31, 2002 and 2003
         Item 2.   Management's Discussion and Analysis of Financial Condition
                   and Results of Operations
         Item 3.   Controls and Procedures

PART 2.  OTHER INFORMATION
         Item 1.   Legal Proceedings
         Item 2.   Changes in Securities
         Item 3.   Defaults Upon Senior Securities: None
         Item 4.   Submission of Matters to a Vote of Security Holders: None
         Item 5.   Other information
         Item 6.   Exhibits and Reports on Form 8-K
         Signatures and Certifications












 The interim financial statements include all adjustments, which in the opinion
  of managem6ent, are necessary in order to make the financial statements not
                                  misleading.



<PAGE>


<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------------------------

                                                              (Unaudited)
                                                              January 31         July 31
                                                                 2003             2002
                                                               ---------      -----------
ASSETS
Current Assets
<S>                                                             <C>            <C>
     Cash and cash equivalents                                  $ 90,936       $ 151,257
     Accounts receivable, net of allowance for doubtful
         accounts of $ 130,000 at January 31, 2003
         and $111,000 at July 31, 2002                           233,029         166,601
     Due from officers and employees                             171,130         209,437
     Inventories                                                 504,413         595,071
     Prepaid expenses                                            184,956         168,835
                                                                --------        -------

         Total current assets                                  1,184,465       1,291,201
                                                               ----------      ---------

Property, Plant and Equipment
     Property, plant and equipment                               525,976         613,909
                                                                 --------        -------

         Total property, plant and equipment                     525,976         613,909
                                                                 --------        -------

Noncurrent Assets
     Deposits                                                      9,341           8,954
     Patents and licenses                                      2,556,166       2,626,376
                                                               ----------      ---------

         Total noncurrent assets                               2,565,507       2,635,330
                                                               ----------      ---------

     Total assets                                            $ 4,275,948     $ 4,540,440
                                                             ============    ===========

LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
     Accounts payable                                          $ 798,446       $ 591,031
     Accrued liabilities                                          86,453          77,530
     Loans from shareholders                                     600,000         500,000
                                                                --------        -------

         Total current liabilities                             1,484,899       1,168,561
                                                               ----------      ---------

Stockholders' Equity
     Class A common stock, no par value: authorized
         50,000,000 shares, issued and outstanding
          9,961,837 at January 31, 2003 and
          8,400,899 at July 31, 2002                          14,474,628      13,976,448
     Warrants                                                    660,376               -
     Accumulated deficit                                     (12,343,955)    (10,604,569)
                                                             ------------    ------------

         Total stockholders' equity                            2,791,048       3,371,879
                                                              ----------      ---------

     Total liabilities and stockholders' equity              $ 4,275,948     $ 4,540,440
                                                             ============    ===========
</TABLE>




<PAGE>

<TABLE>
<CAPTION>


CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
-----------------------------------------------------------------------------------------------------------------

                                                   For the Six Months Ended           For the Three Months Ended
                                                            January 31                          January 31
                                                       2003            2002             2003              2002
                                                  ---------------  --------------  ---------------- -------------
<S>                                             <C>             <C>                 <C>                <C>
Net revenues                                    $ 1,360,803     $ 1,698,183         $ 633,542          $ 834,155
Cost of sales                                       768,370         805,819           344,229            317,955
                                                    --------        --------          --------           -------

Gross profit                                        592,433         892,364           289,313            516,200
                                                    --------        --------          --------           -------

Selling expenses                                     288,568         354,525           138,368            120,116
General and administrative expenses                  940,191       1,006,793           497,656            556,868
Research and development                             424,250         316,212           251,182            245,389
Start-up costs                                       635,376               -           635,376                  -
                                                    --------        --------          --------            -------

Total operating costs                              2,288,384       1,677,530         1,522,582            922,373
                                                  ----------      ----------        ----------           -------

Loss from operations                              (1,695,952)       (785,166)       (1,233,269)          (406,173)
                                                  -----------       ---------       -----------          ---------

Other income and (expense):
    Interest income                                    1,331             343                 3                131
    Interest Expense                                 (44,765)        (11,190)          (27,295)            (9,500)
    Other                                                 -           (1,200)               -                (600)
                                                          --          -------               --               -----

Total other income (expense)                         (43,434)        (12,047)          (27,292)            (9,969)
                                                     --------        --------          --------            -------
Net loss                                         $(1,739,386)     $ (797,213)     $ (1,260,561)        $ (416,142)
                                                 ============     ===========     =============        ===========

Net loss per common share, basic and diluted         $ (0.20)        $ (0.11)          $ (0.14)           $ (0.06)
                                                     ========        ========          ========           ========

</TABLE>




<TABLE>
<CAPTION>

                                                          Six Months             Year
                                                             Ended              Ended
                                                            January            July 31
CONSOLIDATED STATEMENTS OF ACCUMULATED DEFICITS              2003                2002
----------------------------------------------------  ---------------- ------------------
<S>                                                      <C>                <C>
Balance, beginning of period                             $(10,604,569)      $ (8,159,676)

Net income (loss)                                          (1,739,386)        (2,444,893)
                                                           -----------        -----------

Balance, end of period                                   $(12,343,955)     $ (10,604,569)
                                                         =============     ==============
</TABLE>



<PAGE>

<TABLE>
<CAPTION>


CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
---------------------------------------------------------------------------------------------------------------

                                                                                     For the Six Months Ended
                                                                                            January 31
                                                                                      2003             2002
                                                                                --------------      -------------

Cash flows from operating activities
<S>                                                                               <C>                 <C>
      Net loss                                                                    $ (1,739,386)       $ (797,213)

      Adjustments to reconcile net income to net cash provided by operating
      activities:
          Amortization                                                                  77,074           115,483
          Depreciation                                                                  96,361           128,429
          Services paid for with stock and warrants                                    752,355                 -
      Changes in assets and liabilities:
          (Increase) decrease in accounts receivable                                   (66,428)           67,021
          (Increase) decrease in subscriptions receivable                                    -          (100,000)
          (Increase) decrease in due from officers and employees                        38,307               313
          (Increase) decrease in prepaid expense                                        83,755             9,398
          (Increase) decrease in inventory                                              90,658            57,545
          (Increase) decrease in deposits                                                 (387)             (826)
          Increase (decrease) in accounts payable                                      207,415           (23,044)
          Increase (decrease) in accrued liabilities                                     8,923            45,400
                                                                                  ------------       -----------

               Net cash provided (used) by operating
                    activities                                                      (451,353)           (497,494)
                                                                                  ------------       -----------

Cash flows from investing activities
      Purchase of patents and licenses                                                  (6,865)          (83,334)
      Purchase of property, plant and equipment                                         (8,428)         (131,049)
      Deferred acquisition costs                                                             -           (13,000)
                                                                                  ------------       -----------

               Net cash (used) in investing activities                                 (15,293)         (227,383)
                                                                                  ------------       -----------

Cash flows from financing activities
      Proceeds from debt obligations                                                   100,000           400,245
      Proceeds from sale of common stock                                               306,325           447,780
                                                                                  ------------       -----------

               Net cash provided by financing activities                               406,325           848,025
                                                                                  ------------       -----------

Net increase (decrease) in cash and cash equivalents                                   (60,321)          123,148
                                                                                  ------------       -----------

Cash and cash equivalents at beginning of period                                       151,257           207,092
                                                                                  ------------       -----------

Cash and cash equivalents at end of period                                          $   90,936         $ 330,240
                                                                                  ============       ===========

Supplemental disclosures of cash flow information
      Cash paid for interest paid                                                     $ 44,765          $ 11,190
      Cash paid for taxes paid                                                        $      -          $  1,200
Noncash investing and financing activities:
      Value of shares issued in exchange for services                                $ 157,050
      Value of options issued in exchange for services                               $  59,805
      Value of warrants issued in exchange for startup costs                         $ 635,376
      Value of shares issued in exchange for Silver Ion Technology patent                            $ 1,540,600
</TABLE>



<PAGE>



NOTES TO FINANCIAL STATEMENTS

Note 1.       Financial Statements
              The financial statements included herein have been prepared by
              Innovative Medical Services (the Company) without audit, pursuant
              to the rules and regulations of the Securities and Exchange
              Commission. Certain information and footnote disclosures normally
              included in the financial statements prepared in accordance with
              generally accepted accounting principles have been condensed or
              omitted as allowed by such rules and regulations, and Innovative
              Medical Services believes that the disclosures are adequate to
              make the information presented not misleading. It is suggested
              that these financial statements be read in conjunction with the
              July 31, 2002 audited financial statements and the accompanying
              notes thereto. While management believes the procedures followed
              in preparing these financial statements are reasonable, the
              accuracy of the amounts are in some respects dependent upon the
              facts that will exist and procedures that will be accomplished by
              Innovative Medical Services later in the year. The results of
              operations for the interim periods are not necessarily indicative
              of the results of operations for the full year.

Note 2.       Business Segment and Sales Concentrations
              In accordance with the provisions of SFAS No. 131, certain
              information is disclosed based on the way management organizes
              financial information for making operating decisions and assessing
              performance. In determining operating segments, the Company
              reviewed the current management structure reporting to the chief
              operating decision-maker ('CODM') and analyzed the reporting the
              CODM receives to allocate resources and measure performance.

              The Company's business activities are divided, managed and
              conducted in two basic business segments, the Water Treatment
              segment and the Bioscience segment. These two segments were
              determined by management based upon the inherent differences in
              the end use of the products, the inherent differences in the value
              added processes made by the Company, the differences in the
              regulatory requirements and the inherent differences in the
              strategies required to successfully market finished products. The
              Water Treatment segment includes Commercial Water and Residential
              Retail products and the Nutripure Water Dealer program. Bioscience
              includes Axenohl (Silver Ion Technology) and the Innovex line of
              pest control products.

              Segment information is presented in accordance with SFAS 131,
              Disclosures about Segments of an Enterprise and Related
              Information. This standard is based on a management approach,
              which requires segmentation based upon the Company's internal
              organization and disclosure of revenue and operating income based
              upon internal accounting methods. The Company's financial
              reporting systems present various data for management to run the
              business, including internal profit and loss statements prepared
              on a basis not consistent with U.S. generally accepted accounting
              principles.



<PAGE>



<TABLE>
<CAPTION>

              FOR THE THREE MONTHS ENDED JANUARY       Water                              Reconciling
                            31 2002                  Treatment        Biosciences           Amounts        Consolidated
              ------------------------------------ --------------- ------------------- ------------------  -------------

              Revenues
              Commercial Water Treatment
<S>                                                     <C>                                                     <C>
                  Fillmaster Products              $ 269,200                                               $ 269,200
                  Replacement Filters                108,200                                                 108,200
              Residential Water Treatment             21,800                                                  21,800
              Water Dealer Program                    71,700
                                                                                                              71,700
              Silver Ionization                                         $276,500                             276,500
              Pesticide                                    0              86,800                              86,800
                                                  ----------          ----------                          ----------
                   Total Revenues                   $470,900            $363,300                            $834,200
                                                    ========            ========                            ========
              Operating Income/(Loss)             $(208,700)            $266,900         $(474,300)       $(416,100)
                                                  ==========            ========         ==========       ==========
              Segment Assets                        $802,400          $2,676,900
                                                    ========          ==========

              FOR THE THREE MONTHS
              ENDED JANUARY 31 2003
              -----------------------------------

              Revenues
              Commercial Water Treatment
                  Fillmaster Products                204,000                                                 204,000
                  Replacement Filters                158,200                                                 158,200
              Residential Water Treatment             30,500                                                  30,500
              Water Dealer Program                   208,900                                                 208,900
              Silver Ionization                                           28,100                              28,100
              Pesticide                                                    3,800                               3,800
                                                  ----------          ----------                          ----------
              Total Revenues                        $601,600             $31,900                            $633,500
                                                    ========             =======                            ========
              Operating Income/(Loss)                $48,800           $(51,900)         $(647,100)       $(650,200)
                                                     =======           =========         ==========       ==========
              Segment Assets                        $770,800          $2,381,900
                                                    ========          ==========

                   FOR THE SIX MONTHS ENDED            Water                              Reconciling
                        JANUARY 31 2002              Treatment        Biosciences           Amounts        Consolidated
              ------------------------------------ --------------- ------------------- ------------------ ----------------
              Revenues
              Commercial Water Treatment
                  Fillmaster Products              $ 551,800                                               $ 551,800
                  Replacement Filters                231,100                                                 231,100
              Residential Water Treatment             57,500                                                  57,500
              Water Dealer Program                   181,400                                                 181,400
              Silver Ionization                                         $486,500                             486,500
              Pesticide                                                  189,900                             189,900
                                                 -----------             -------                             -------
                                                           0
                   Total Revenues                 $1,021,800            $676,400                          $1,698,200
                                                  ==========            ========                          ==========
              Operating Income/(Loss)             $(110,300)            $536,700       $(1,233,600)       $(797,200)
                                                  ==========            ========       ============       ==========
              Segment Assets                        $802,400          $2,676,900
                                                    ========          ==========

                   FOR THE SIX MONTHS ENDED
                        JANUARY 31 2003
              -----------------------------------
              Revenues
              Commercial Water Treatment
                  Fillmaster Products                508,500                                                 508,500
                  Replacement Filters                311,400                                                 311,400
              Residential Water Treatment            158,700                                                 158,700
              Water Dealer Program                   316,400                                                 316,400
              Silver Ionization                                           28,100                              28,100
              Pesticide                                                   37,700                              37,700
                                                 -----------              ------                              ------
                                                           0
              Total Revenues                      $1,295,000             $65,800                          $1,360,800
                                                  ==========             =======                          ==========
              Operating Income/(Loss)                 $1,300           $(67,000)       $(1,063,300)     $(1,129,000)
                                                      ======           =========       ============     ============
              Segment Assets                        $770,800          $2,381,900
                                                    ========          ==========

</TABLE>


              Significant customers primarily consisted of domestic retail chain
              pharmacies. Sales concentrations to major chain stores were
              approximately $266,300 and export sales were $29,100 for the
              quarter ended January 31, 2003. Sales concentrations to major
              chain stores were approximately $334,600 and export sales were
              $41,100 for the six months ended January 31, 2003. No customer
              accounted for more than 10% of consolidated sales.



<PAGE>




Note 3.       Common Stock
              On August 30, 2002, 60,000 shares of common stock valued at
              $34,200 ($0.57 per share) were issued in exchange for a 1-year
              agreement for EPA regulatory consulting. On September 18, 2002,
              120,000 shares valued at $68,400 ($0.57 per share) were issued in
              exchange for a 1-year consulting agreement to facilitate the
              identification and facilitation of sponsored research
              relationships and out-licensing opportunities for the Company. On
              September 18, 2002, 65,000 shares valued at $37,050 ($0.57 per
              share) were issued in exchange for a 1-year marketing and business
              development consulting agreement. On September 18, 2002, options
              on 135,000 shares were exercised.

              During the quarter ended January 31, 2003 the Company conducted a
              $250,000 private placement in which the Company issued 833,332
              shares of common stock to six accredited investors at a price of
              $0.30 per share. Fees connected with the offering consisted of
              commissions of $25,000 (10%), 135,106 shares of common stock
              valued at $58,096 ($0.43 per share), and 71,429 warrants to
              purchase common stock at $0.30 per share valued at $25,000 ($0.35
              per share based on the Black Scholes Option Pricing Model assuming
              no dividend yield, volatility of 101.48% and a risk-free interest
              rate of 5.25%). On December 16, 2002, 200,000 shares of common
              stock valued at $88,000 ($0.44 per share) were issued for attorney
              fees incurred in connection with the acquisition of the Axenohl
              patent. Of this amount $70,600 was booked at the date of the
              patent acquisition. The Company also received $4,375 from the
              exercise of employee options during the quarter.

              On November 22, 2002 the board of directors approved the Annual
              Grant of Options to Directors from the 2002 Directors and Officers
              Stock Option Plan. Officers and directors received a total of
              450,000 five-year options with an exercise price of $0.50 per
              share. On the date of the grant the common stock of the Company
              closed at $0.45 per share.

   Note 4.    Contracts and Commitments

              In January 2003 the Company signed a cross-marketing and licensing
              agreement with Nickel Ltd., a manufacturer and distributor of wet
              wipes in Europe. Under the terms of the three-part agreement, the
              Company is acquiring two "Super Distribution Agreements." The
              first Super Distribution agreement grants IMS exclusive rights to
              sell Nickel's Clean Plus(R) janitorial/sanitation product line in
              the U.S. to suppliers and distributors in the janitorial and
              sanitation industries, as well as to mass merchandisers. The
              second Super Distribution agreement establishes a 50/50 joint
              venture between IMS and Nickel, to be known as CARLINE AMERICA
              LTD(TM). This agreement permits the IMS-managed and staffed joint
              venture to sell and distribute Nickel's Clean Plus(R) line of
              automotive wet wipe products to automotive aftermarket retailers
              and mass merchandisers in the United States. CARLINE AMERICA LTD
              will become a consolidated subsidiary accounted for on the equity
              method.

              In the third part of the agreement, Nickel Ltd. agrees to process
              all necessary regulatory and other approvals required as a
              condition to the commercialization of Axen based products in the
              European Union and Innovative Medical Services has granted Nickel
              Ltd. a license for industrial-grade silver di-hydrogen citrate
              (Axen(TM)) product development in Europe involving hard surface
              disinfectant sprays (non-exclusive) and hard surface disinfectant
              wet wipes (exclusive) in the hospital, educational/childcare
              facilities, hospitality, food processing and military market
              segments. In exchange, and as total consideration on the Company's
              part, the Company will issue five-year warrants to Nickel Ltd. to
              purchase 651,000 shares of common stock for $0.0001 per share
              valued at $635,376 ($0.976 per share based on the Black Scholes
              Option Pricing Model assuming no dividend yield, volatility of
              101.48% and a risk-free interest rate of 5.25%). These costs of
              IMS and CARLINE AMERICA LTD have been expensed as start-up costs
              in the consolidated financial statements in conformance with SOP
              98-5.

              In the contract, IMS must purchase a least 1 pallet of each
              product from Nickel Ltd. per quarter and must purchase, in the
              aggregate, not less than Euro 15,000,000 of product within the
              first three years in order to maintain it's exclusivity rights.
              The contract also requires the Super Distributor to expend a
              minimum of 5% of sales revenues from the products on advertising
              and promotion. Once a year the Super Distributor is reimbursed the
              lesser of 50% of the amounts paid for advertising and promotion or
              2.5% of aggregate purchases of product during the period. The
              contract is for three years and renewable each year thereafter if
              the minimum requirements are met.

<PAGE>
Note 5.       Subsequent Events
              In February 2003 the Company signed an Investment Banking Advisory
              Agreement with SBI Discovery Group, a member of Softbank
              Investment Group, to become the Company's non-exclusive financial
              advisor in connection with the management of a proposed private
              placement of equity securities and/or debt securities on a best
              efforts basis. The agreement contemplates that the gross dollar
              amount of securities to be offered in the private placement shall
              be up to $3,000,000 in equity and $1,000,000 in debt. In the
              contract the Company and the investment banker shall enter into a
              Managing Dealer Agreement which contains a fee agreement
              equivalent to a 10% selling fee, a 3% non-accountable expense
              allowance and warrants to purchase 10% of the underlying
              securities sold. The Managing Dealer Agreement will also
              contemplate the issuance of 2,000,000 warrants at $2.00 for twelve
              months effective upon the closing of the contemplated financing.
              The agreement provides for an escrow agreement that shall not
              allow closing on less than $2,000,000 and a monthly retainer to
              the investment banker of $5,000 per month for six months.

Note 6.       Recent Accounting Pronouncements
              In November 2002, the FASB issued Interpretation No. 45,
              "Guarantor's Accounting and Disclosure Requirements for
              Guarantees, Including Indirect Guarantees of Indebtedness of
              Others". Interpretation 45 is effective for financial statements
              of interim or annual periods fiscal years ending after December
              15, 2002 and requires the following disclosures of the Company's
              product warranties:

              The Company provides a standard warranty of two years for
              replacement parts on all Fillmaster systems sold. Most of the
              Company's chain customers have entered into multi-year contracts
              for the Customer Service Plan 2000. The CSP 2000 provides an
              extended warranty on all Innovative Medical Services pharmacy
              products; significant discounts on maintenance item costs; free
              software upgrades for the Fillmaster 1000e and Scanmaster;
              automatic replacement filter shipments and simplified, annual
              invoicing. When the customer buys a dispenser on the Customer
              Service Plan 2000 they agree to pay a fixed annual fee that covers
              replacement filters and parts. The Company monitors the costs of
              providing replacement parts other than filters. This cost has
              remained steady and is computed as a percentage of related
              revenues. The following is a summary of changes in the Company's
              product warranty liability.

<TABLE>
<CAPTION>

                                         Beginning                                                 Ending
                                                              Expense           Warranty
                                         Liability            Incurred          Payments          Liability

<S>                                      <C>                  <C>               <C>               <C>
              Three months ended         $  42,750            $  1,789          $  5,879          $  38,660
              January 31, 2003           =========            ========          ========          =========
                           2003



                     Six months ended   $  41,445            $ 9,269           $ 12,054          $  38,660
                     January 31, 2003   =========            =======           ========          =========

</TABLE>


Note 7.       Reclassifications
              Certain reclassifications have been made to previously reported
              statements to conform to the Company's current financial statement
              format.


<PAGE>



ITEM 2 MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS
OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
audited and unaudited financial statements of Innovative Medical Services.

OVERVIEW
Innovative Medical Services began as a provider of pharmaceutical water
purification products. Although our current revenues are still primarily from
the pharmacy industry, we have expanded from our niche pharmacy market into
other, broader markets with new products, including residential and commercial
water filtration systems, silver ion bioscience technologies and boric acid
based pesticide technologies.

Water Treatment Division
The Fillmaster(R) pharmaceutical water purification, dispensing and measuring
products include the Pharmapure(R) water purification system, the FMD 550
dispenser, the patented Fillmaster 1000e computerized dispenser and the patented
Scanmaster(TM) bar code reader. We also market proprietary National Sanitation
Foundation certified replacement filters for the Fillmaster Systems.

Our Nutripure(R) line of water treatment and filtration systems includes a line
of Nutripure whole-house water softening systems, a line of Nutripure reverse
osmosis point-of-use systems, the Nutripure 2000 countertop water filtration
system and the Nutripure Sport filtered sport bottle. We distribute our various
Nutripure products in several ways, including retail sales, catalogue placement,
business-to-business sales and internet promotion.

Bioscience Division
Our bioscience division features a patented, aqueous disinfectant called
Axenohl(TM). Based on the EPA toxicity categorization of antimicrobial products
that ranges from Category I (high toxicity) down to Category IV, Axen, with its
combination of the biocidal properties of ionic silver and citric acid, is an
EPA Category IV antimicrobial for which precautionary labeling statements are
normally not required. This compares with Category II warning statements for
most leading brands of antimicrobial products.

The initial EPA registration for use of Axenohl and Axen (12-parts per million
formula) as hard surface disinfectants was issued in 2001. We are currently
awaiting EPA approval on a 30-parts per million formula of Axen. After receiving
EPA approval, we will be able to expand the existing Axen efficacy claims as a
hard surface disinfectant to include a 30 second kill time on standard indicator
bacteria, a 24 hour residual kill on standard indicator bacteria, a 2 minute
kill time on some resistant strains of bacteria, 10 minute kill time on fungi,
30 second kill time on HIV Type I, and 10 minute kill time on other viruses.

We plan to pursue additional EPA and FDA regulatory approvals for other
applications. Additional possible uses for this product include wound care,
topical infection care, personal disinfecting retail products, food processing,
and food safety applications which may require FDA approvals, as well as
municipal water treatment and point-of-use/point-of-entry water treatment
products, which may require additional EPA approvals.

Our bioscience division also includes a line of pesticide technologies. Branded
as Innovex(TM), the product line launched in October 2001 with our EPA-approved,
patent-pending RoachX(TM). Subsequently, we have developed and launched
additional products in the Innovex product line, including and AntX75(TM) baits,
two formulas of EPA-exempt non-toxic TrapX rodent lure, Pro's Choice(TM) caulk
for pest control operators, and EPA approved CleanKill(TM), the Axen-based hard
surface disinfectant for the pest control industry.

United States Department of Agriculture testing confirms that RoachX is over 96%
effective in three to four days with one application for indoor and outdoor
eradication of cockroaches, and can be used near children and food preparation
areas. Boric acid is a well-known and effective deterrent of cockroaches and
will kill them on contact, but cockroaches do not naturally eat the repellent.
Although many pesticide products contain boric acid as the listed active
ingredient, we believe RoachX to be new because of the endothermic reaction
caused by the combination of boric acid and polyglycol that produces three
unique results: 1) The formula protects the boric acid from water and humidity,
2) When combined with an attractant, the cockroaches perceive the formulation as
food and will actually eat the polyglycol-encapsulated boric acid, and 3) The
formula acts as a time-released pesticide, allowing the cockroach to return to
the nest before it dies and then becomes a "bait station" for other roaches in
the colony. We believe the product line, containing particular formulas and
attractants for specific pests, is effective against cockroaches, ants, palmetto
bugs, silverfish, waterbugs, ticks, fleas, lice and garden pests.

RESULTS OF  OPERATIONS  FOR THE THREE MONTHS ENDED JANUARY 31, 2003 VERSUS THREE
MONTHS ENDED JANUARY 31, 2002

During the quarter, we continued to realize revenues from multiple product lines
in our different divisions. In order to be more informative regarding
distribution of revenues, discussion of revenues will be in terms of our water
treatment segment and our bioscience segment, which includes silver ionization
and pesticide divisions.

Revenues of $633,500 in the quarter ended January 31, 2003 were 24% lower than
the $834,200 in revenues reported for the quarter ended January 31, 2002. The
decrease was due to a decrease in sales in the biosciences division. During the
quarter, water treatment division revenues of $601,600 were 28% higher than the
$470,900 in the same quarter of the prior year. Bioscience segment revenues in
the current quarter of $31,900 were 91% lower than the $363,300 in the same
quarter of the prior year and reflect a large decrease in both silver ionization
and pesticide product sales.

The increase in water treatment division revenues was due primarily to increased
sales in the Nutripure dealer program which rose $137,200 from $71,700 in the
quarter ended January 31, 2002 to $208,900 in the recent quarter. We anticipate
that the water treatment division revenues will continue to grow, especially as
the water dealer program continues to expand. The market continues to be very
competitive, and we expect revenues from our other commercial/retail water
treatment products to continue their historic steady growth.

The decrease in pesticide product sales was due to the recent change in sales
strategy, including a change from salaried sales employees to commissioned
outside sales representatives. During the quarter, we continued to refocus our
market strategy from marketing primarily to the pest control industry
wholesalers to include marketing directly to major industry leaders. The change
in sales and marketing strategy resulted in a decrease in sales as we
restructured the pesticide division to more effectively target the professional
pest control industry's need for highly effective but least toxic pest control
products. We believe that our restructuring will result in increased sales, but
we recognize that we face significant competition from larger, better
capitalized companies in this market. We expect to see a shift toward increasing
pest control product sales in the coming quarter.

The decrease in silver ionization sales was due to lack of sales of Axen to Dodo
& Company. In March 2001, we signed a five-year contract to provide Axenohl to
Dodo & Company, a Korean cosmetics manufacturer and marketer. Under the
contract, Dodo & Company would purchase approximately $1.2 million dollars of
product from us over five years. In addition to the purchase price, the contract
calls for us to receive a reimbursement for research and development and a
royalty on sales of the Axen-containing products. The contract requires Dodo &
Company to obtain appropriate regulatory clearances in South Korea, but we have
no documentation to show that this has been completed. We believe that Dodo &
Company has miscalculated the royalties due to us, and we have requested that
Dodo & Company reevaluate their royalty calculations. Dodo & Company has
requested a renegotiation of the contract including the royalty fee calculation.
During last fiscal year, Dodo & Company continued to expand its A-Clinic Club
line to include over 10 different products, all of which contain Axenohl as an
active ingredient. Because of Dodo & Company's significant investment in the
product line, we believed we would be able to renegotiate the contract to the
satisfaction of both parties; however, in early December 2002, we were informed
by the Chairman of Dodo & Company that Dodo & Company has begun a bankruptcy
reorganization process. Until the contract matter is resolved and Dodo & Company
restabilizes, we will not ship additional product to Dodo & Company.

The disinfectant market is highly competitive, and we anticipate that market
acceptance of a brand new technology may be a long term achievement. In addition
to competition challenges, we believe that the investment necessary to pursue
research testing and regulatory approval for Axenohl products will continue to
be significant. As we receive additional regulatory approvals for Axenohl,
however, we expect revenues to develop quickly. For example, we are currently
awaiting EPA approval on the Clean Kill 30-part per million formulation of Axen.
We believe that approval is imminent, and we also believe that upon receipt of
that approval, sales of Clean Kill 30 will have a significant impact on revenues
in the coming quarters.

We continue to believe that pesticide technologies will have a material impact
on revenues in the coming quarters, and we continue to believe that the silver
ion technologies will ultimately become the largest revenue generator for
Innovative Medical Services.

Gross profit for the quarter ended January 31, 2003 was $289,300 versus $516,200
in 2002. Gross profit percentage of 46% in 2003 was lower when compared to 62%
in 2002 because of the decrease in Axenohl sales associated with higher margins
and the increase in Nutripure dealer program revenues which have proportionally
lower margins.

Loss from operations for the quarter ended January 31, 2003 was $1,233,300
versus loss from operations of $406,200 for the same period in 2002. Of the loss
in the current quarter, $635,400 was non-cash start-up costs (651,000 warrants
valued at $0.976 per warrant) used to acquire a three-part cross marketing and
licensing agreement described below in the Liquidity and Capital Recourses
section. During the quarter, General and Administrative expenses decreased 11%
or $59,200 from $556,900 in fiscal 2002 to $497,700 in fiscal 2003.
Administrative expenses were lower in spite of an increase in amortization costs
associated with purchased patents and licenses. Selling expense increased
approximately $18,300, or 15%, from $120,100 in 2002 to $138,400 in 2003 because
of an increase in the use of consultants related to the Axenohl technologies.
Research and Development increased $5,800 over the same period in 2002 from
$245,400 to $251,200. This increase was the result of continued time and
resources devoted to the development and testing of our emerging pesticide and
silver ion technology product lines.

RESULTS OF  OPERATIONS  FOR THE SIX MONTHS  ENDED  JANUARY  31,  2003 VERSUS SIX
MONTHS ENDED JANUARY 31, 2002
Revenues of $1,360,800 in the six months ended January 31, 2003 were 20% lower
than the $1,698,200 in revenues reported for the six months ended January 31,
2002. The decrease was due to a decrease in sales in the biosciences division.
During the recent six months, water treatment division revenues of $1,295,000
were 27% higher than the $1,021,800 in the prior six-month period. Bioscience
segment revenues in the current period of $65,800 were 90% lower than the
$676,400 in the prior six-month period and reflect a large decrease in both
silver ionization and pesticide product sales. The increase in water treatment
division revenues was due primarily to increased sales of the Nutripure dealer
program which rose $135,000 from $181,400 in the six months ended January 31,
2002 to $316,400 in recent period.

Gross profit for the six months ended January 31, 2003 was $592,400 versus
$892,400 in 2002. Gross profit percentage of 44% in 2003 was lower versus 53% in
2002 because of the decrease in Axenohl sales associated with higher margins and
the increase in Nutripure dealer program revenues which have proportionally
lower margins.

Net loss from operations for the six months ended January 31, 2003 was
$1,696,000 versus net loss of $785,200 for the same period in 2002. Of the loss
in the current period, $635,400 was non-cash start-up costs described above.
Selling expense decreased approximately $65,900, or 19%, from $354,500 in 2002
to $288,600 in 2003 because of a decreased reliance on salaried sales personnel.
During the current six months, General and Administrative expenses decreased 7%
or $66,600 from $1,006,800 in fiscal 2002 to $940,200 in fiscal 2003.
Administrative expenses were lower in spite of an increase in amortization costs
associated with purchased patents and licenses. Research and Development costs
were higher; increasing $108,100 or 34% from $316,200 in the six months ended
January 31, 2002 to $424,300 in the current period. The increase was due mainly
to costs associated with development of bioscience division products, including
Axenohl, RoachX, AntX and Clean Kill.

LIQUIDITY AND CAPITAL RESOURCES
From inception through January 31, 2003, we have financed our operations
primarily through our initial public offering in August of 1996 and by
subsequent private placement stock sales. In addition, the Company had obtained
short term financing through a $500,000 line of credit. In September 2002 the
Company renegotiated its line of credit and extended it until November 2003. The
extension includes an increase from $500,000 to $600,000 at an interest rate of
1 1/2 % per month secured against the entire assets of the Company excluding the
Axenohl patent. We believe that sales from our new product lines will not
provide sufficient capital resources to sustain operations and fund product
development through fiscal year 2003. In the short term, we expect to raise
capital through equity sales as necessary to fund future growth until we operate
above the break-even point. We continually evaluate opportunities to sell
additional equity or debt securities, or obtain credit facilities from lenders
to strengthen our financial position. The sale of additional equity or
convertible debt securities could result in additional dilution to our
stockholders.

In January 2003 the Company signed a cross-marketing and licensing agreement
with Nickel Ltd., a manufacturer and distributor of wet wipes in Europe. Under
the terms of the three-part agreement, the Company is acquiring two "Super
Distribution Agreements." The first Super Distribution agreement allows IMS to
sell Nickel's Clean Plus(R) janitorial/sanitation product line in the U.S. to
suppliers and distributors in the janitorial and sanitation industries, as well
as to mass merchandisers. The second Super Distribution agreement establishes a
50/50 joint venture between IMS and Nickel, to be known as CARLINE AMERICA
LTD(TM). This agreement permits the IMS-managed and staffed joint venture to
sell and distribute Nickel's Clean Plus(R) line of automotive wet wipe products
to automotive aftermarket retailers and mass merchandisers in the United States.
In the third part of the agreement Nickel Ltd. agrees to process all necessary
regulatory and other approvals required as a condition to the commercialization
of Axen based products in Europe and Innovative Medical Services has granted
Nickel Ltd. a license for industrial-grade silver di-hydrogen citrate (Axen(TM))
product development in Europe involving hard surface disinfectant sprays
(non-exclusive) and hard surface disinfectant wet wipes (exclusive) in the
hospital, educational/childcare facilities, hospitality, food processing and
military market segments. In exchange, and as total consideration on the
Company's part, the Company will issue warrants to Nickel Ltd. to purchase
651,000 shares of common stock for $0.0001 per share valued at $635,000.
Although no cash was expended to acquire these agreements, it is contemplated
that plans to utilize the contracts will require a significant outlay of capital
over the next twelve months. This situation is aided by a condition of the
contract in which Nickel Ltd. has extended its normal terms of 45 days from
shipment to 30 days beyond the terms IMS extends to the retailer, not to exceed
170 days. The contract also calls for CARLINE AMERICA LTD to obtain accounts
receivable financing.

The Company is currently attempting to strengthen its liquidity position by
working with an investment banker to obtain financing consisting of a
combination of debt and equity instruments. The Company requires an outside
source of capital to fund planned projects relating to new product development
and related product launches, research and development projects, regulatory
approvals and the execution of the two Super Distribution agreements with Nickel
Ltd.. This is because the Company's operations are not expected to generate cash
flows, within the next twelve months, sufficient to fund planned expansion. If
funds are not available, the Company believes that it can maintain viability, if
necessary by scaling back current and planned expansion projects. The Company
has no long-term debt. Upon final approval of the current EPA submission, the
Company intends to file forward-looking financial projections on the Company as
a whole in a Form 8-K.

As a condition of the purchase agreement of the Axenohl patent, the Company
agreed to make certain royalty payments to NVID of 5% of the gross product sales
with a minimum royalty payment total of $1,000,000 for the period from November
15, 2001 to July 31, 2004 and subsequently $1,000,000 per year for the remaining
life of the patent. The contract states that at July 31, 2004 the Company shall
have the right, in its sole and absolute discretion, to do one of the following:
a) pay $1,000,000 in cash or common stock of the Company to NVID, less royalty
amounts already paid, on or before July 31, 2004, b) transfer the patent back to
NVID, at which time the Company would be released of any future minimum payments
and granted a license to manufacture and distribute products covered by the
patent, or c) cancel any royalty obligation under the contract by selling or
assigning its ownership of the patent to a third party and paying NVID a
percentage of the gross proceeds of 10% or 5% depending on how near the date of
the transfer is to July 31, 2004. The Company has not recorded or accrued an
amount for the minimum royalty payments in the financial statements because it
has not determined which of these options it intends to exercise.

Our liquidity is unaffected by the financing program offered to participating
dealers in the Nutripure water dealer program. We receive funds from our lender
and disperse the funds to the dealer, less a commission charged by us, upon
completion of the contract. The lender disperses funds to us. We record a
liability when the funds are received and relief of liability when funds are
dispersed, and we do not retain liability on the credit extended.

During the fiscal six months ended January 31, 2003, our current assets to
liabilities ratio decreased from 1.10 to 0.80. Current assets decreased $106,700
from $1,291,200 at July 31, 2002 to $1,184,500 at January 31, 2003 due mainly to
a decrease in inventories associated with lower sales volume and a decrease in
cash. Current liabilities increased $316,300 from $1,168,600 to $1,484,900. This
increase was due mainly to an increase in loans from shareholders of $100,000
and an increase in accounts payable of approximately $207,400.

Fixed assets decreased approximately $87,900 due mainly to depreciation of
equipment. Noncurrent assets remained unchanged at $2,600,000 consisting almost
entirely of Patents and Licenses.

Cash flows used from operations were $451,400 in the six months January 31, 2003
and $497,500 in 2002. For fiscal 2003, cash flows used in investing activities
included $8,400 for the purchase of machinery and equipment and $6,900 for the
purchase of patents and licenses. In fiscal 2002 cash flows used in investing
activities included $131,000 for the purchase of machinery and equipment and
$83,300 for the purchase of patents and licenses.

Cash flows from financing activities were $406,300 in fiscal 2003 and $848,000
in fiscal 2002. Financing activities for the current period included the
addition of $100,000 in loans payable from a line of credit renegotiated in
September 2002. Cash flows from financing activities also included an increase
of common stock of $306,300. During the current six-month period the Company
conducted a $250,000 private placement in which the Company issued 833,332
shares of common stock to six accredited investors at a price of $0.30 per
share. $225,000 was received before the end of the current period. The Company
also received $81,325 from the exercise of options. In the prior period, cash
flows from financing activities included an increase notes payable of $400,300
from draws against our existing credit line. Cash flows from financing
activities also included an increase of common stock of $391,400 which included
a $400,000 private placement in which the Company issued 250,000 shares of
common stock to eleven accredited investors at a price of $1.60 per share. The
Company also received approximately $48,000 from the exercise of options during
the period. The total decrease in cash and cash equivalents for 2003 was $60,300
as compared to an increase of $123,100 during the same period in 2002.

ITEM 3.
CONTROLS AND PROCEDURES
The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in the Company's Exchange Act
reports is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms, and that such information is accumulated
and communicated to the Company's management, including its Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure based closely on the definition of "disclosure
controls and procedures" in Rule 13a-14(c). In designing and evaluating the
disclosure controls and procedures, management recognized that any controls and
procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives, and management
necessarily was required to apply its judgment in evaluating the cost-benefit
relationship of possible controls and procedures.

Within 90 days prior to the date of this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and the Company's
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures. Based on the foregoing, the
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures were effective.

There have been no significant changes in the Company's internal controls or in
other factors that could significantly affect the internal controls subsequent
to the date the Company completed its evaluation.


PART 2   OTHER INFORMATION

ITEM 1
LEGAL PROCEEDINGS
There have been no developments in the case involving Innovative Medical
Services and Zedburn Corporation et. al. in Circuit Court of Pinellas County,
Florida as previously disclosed and incorporated by reference herein from Annual
Report on Form 10KSB for fiscal year ended July 31, 2002 as filed on October 29,
2002.

On August 12, 2002, Billy Stapleton and Susie Stapleton filed a complaint for
patent infringement in the United States District Court Eastern District of
Tennessee at Knoxville, against Innovative Medical Services with respect to the
RoachX patent. IMS will file answer to the complaint in March 2003. The Company
believes the action is frivolous and without merit.

ITEM 2.
CHANGES IN SECURITIES
On December 16, 2002, 200,000 shares of common stock were issued in exchange for
attorneys fees incurred in connection with the acquisition of the Axenohl
patent. On January 28, 2003, an option on 12,500 shares was exercised. During
the quarter we conducted a private placement of common stock, and as a result,
we issued 833,332 shares of common stock to six accredited investors at a price
of $0.30 per share.

With respect to the sales made, we relied on Section 4(2) of the Securities Act
of 1933, as amended. No advertising or general solicitation was employed in
offering the securities. The securities were offered solely to accredited or
sophisticated investors who were provided all of the current public information
available on Innovative Medical Services.

ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
Not applicable.

ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.

ITEM 5.
OTHER INFORMATION
Not applicable.

ITEM 6.
EXHIBITS AND REPORTS ON FORM 8-K

Exhibits

A. The following  Exhibits are filed as part of this report pursuant to Item 601
of Regulation S-B:

3.1 (1) -- Articles of Incorporation, Articles of Amendment and Bylaws
3.1.1(13) -- Articles of Amendment dated March 11, 2002
4.1 (1) -- Form of Class A Warrant
4.2 (1) -- Form of Class Z Warrant
4.3 (1) -- Form of Common Stock Certificate
4.4 (1) -- Warrant Agreement \
4.5 (2) -- March 2000 Warrant
4.6 (3) -- January 2001 Warrant
4.7 (4) -- Convertible Debenture \
4.8 (5) -- Convertible Debenture Purchase Agreement
4.9 (6) -- Convertible Debenture Warrant
10.1 (1) -- Employment Contract/Michael L. Krall\
10.2 (7) -- Manufacturing,  Licensing and Distribution Agreement dated
March 26, 2001
10.3 (8) -- Axenohl License Agreement
10.4 (9) -- Weaver - Roach X Assignment
10.5 (9) -- Dodo Agreement [CONFIDENTIAL TREATMENT REQUESTED FOR CERTAIN OMITTED
                            INFORMATION FILED SEPARATELY]
10.6 (8) -- Promissory Note of Michael Krall
10.7 (8) -- Promissory Note of Gary Brownell
10.8 (9) -- Nutripure Dealer Agreement
10.9 (9) -- Sales Finance Agreement
10.10 (10) -- ETIH2O, Inc., Acquisition Agreement
10.11 (11) -- NVID Litigation Settlement Agreement
10.12 (12) -- Addendum #1 to NVID Settlement Agreement
99.1       -- Sarbanes Oxley Section 906 Certification


(1)  Incorporated by reference from Form SB-2 registration  statement SEC File #
     333-00434 effective August 8, 1996
(2)  Incorporated  by  reference  from  S-3  registration  statement,  SEC  File
     #333-36248 effective on May 17, 2000
(3)  Incorporated  by  reference  from  S-3  registration  statement,  SEC  File
     #333-55758 effective on February 26, 2001
(4)  Incorporated  by  reference  from  S-3  registration  statement,  SEC  File
     #333-61664 filed on May 25, 2001
(5)  Incorporated  by  reference  from  pre-effective  amendment  no.  1 to  S-3
     registration statement, SEC File #333-61664 filed on July 10, 2001
(6)  Incorporated  by  reference  from  pre-effective  amendment  no.  2 to  S-3
     registration statement, SEC File #333-61664 filed on August 13, 2001\
(7)  Incorporated  by reference from Current Report on Form 8-K filed on May 24,
     2001 as amended on October 19, 2001\
(8)  Incorporated  by reference from the Amended Annual Report on Form 10KSB for
     the fiscal year ended July 31, 2000 filed on October 19, 2001\
(9)  Incorporated by reference from Amended Form 10QSB for the nine month period
     ended  April 30,  2001  filed on  October  19,  2001
(10) Incorporated  by reference from the Amended Annual Report on Form 10KSB for
     the fiscal year ended July 31, 2001 filed on November 13, 2001
(11) Incorporated by reference from Current Report on Form 8-K filed on December
     6, 2001
(12) Incorporated  by reference from Amended Current Report on Form 8-K filed on
     December 7, 2001
(13) Incorporated  by  reference  from the  Annual  Report on Form 10KSB for the
     fiscal year ended July 31, 2002 filed on October 29, 2002

B.   Reports on Form 8-K: None

SIGNATURES
Pursuant to the requirement 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.


                    INNOVATIVE MEDICAL SERVICES
                    (Registrant)





                     By: /s/ Michael L. Krall
                         -----------------------------------
                         Michael L. Krall, President/CEO
                         March 14, 2003







                     By: /s/ Gary Brownell
                         -----------------------------------
                         Gary Brownell, Chief Financial Officer
                         March 14, 2003



<PAGE>



                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
       REGARDING FACTS AND CIRCUMSTANCES RELATING TO EXCHANGE ACT FILINGS

I, Michael L. Krall, certify that:

1.   I have read this  quarterly  report on Form  10-QSB of  Innovative  Medical
     Services.

2.   Based on my knowledge,  the 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 the report.

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

4.   I and the other certifying officers


     (a)  are responsible for establishing and maintaining  internal  disclosure
          controls and procedures for the company;

     (b)  have designed such  disclosure  controls and procedures to ensure that
          material  information  relating to the company is made known to me and
          the  other   certifying   officers  by  others   within  the  company,
          particularly during the period in which the periodic reports are being
          prepared;

     (c)  have evaluated the effectiveness of the issuer's  disclosure  controls
          and procedures as of a date within 90 days prior to the report; and

     (d)  have presented in the report my conclusions about the effectiveness of
          their disclosure  controls and procedures based on my evaluation as of
          that date;

5.   I and the  other  certifying  officers  have  disclosed,  based on our most
     recent evaluation to the company's  auditors and the audit committee of the
     board of directors (or persons fulfilling the equivalent function):

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

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

6.       I and the other certifying officers have indicated in the report
         whether or not there were significant changes in internal controls or
         in other factors that could significantly affect internal controls
         subsequent to the date of their evaluation, including any corrective
         actions with regard to significant deficiencies and material
         weaknesses.




BY:    /s/ Michael L. Krall                     State of California
       --------------------                     County of San Diego
       Michael L. Krall, President and CEO
       (Principal Executive Officer)            Subscribed and sworn to
                                                before me this 14th day of
                                                March, 2003

                                                /s/ Dolana Blount
                                                -----------------------------
DATE:  March 14, 2003                           Dolana Blount
                                                Notary Public
                                                My Commission Expires:
                                                March 17, 2005


<PAGE>



                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
       REGARDING FACTS AND CIRCUMSTANCES RELATING TO EXCHANGE ACT FILINGS

I, Gary Brownell, certify that:

1.   I have read this  quarterly  report on Form  10-QSB of  Innovative  Medical
     Services;

2.   Based on my knowledge,  the 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 the report.

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

4.   I and the other certifying officers

     (a)  are responsible for establishing and maintaining  internal  disclosure
          controls and procedures for the company;

     (b)  have designed such  disclosure  controls and procedures to ensure that
          material  information  relating to the company is made known to me and
          the  other   certifying   officers  by  others   within  the  company,
          particularly during the period in which the periodic reports are being
          prepared;

     (c)  have evaluated the effectiveness of the issuer's  disclosure  controls
          and procedures as of a date within 90 days prior to the report; and

     (d)  have presented in the report my conclusions about the effectiveness of
          their disclosure  controls and procedures based on my evaluation as of
          that date;

5.   I and the  other  certifying  officers  have  disclosed,  based on our most
     recent evaluation to the company's  auditors and the audit committee of the
     board of directors (or persons fulfilling the equivalent function):

     (a)  all  significant  deficiencies  in the design or operation of internal
          controls which could adversely affect the company's ability to record,
          process,  summarize, and report financial data and have identified for
          the company's  auditors any material  weaknesses in internal controls;
          and (b) any fraud,  whether or not material,  that involves management
          or  other  employees  who  have a  significant  role in the  company's
          internal controls; and

6.   I and the other certifying officers have indicated in the report whether or
     not there were significant changes in internal controls or in other factors
     that could significantly affect internal controls subsequent to the date of
     their  evaluation,   including  any  corrective   actions  with  regard  to
     significant deficiencies and material weaknesses.




BY:      /s/ Gary Brownell                       State of California
        --------------------------------         County of San Diego
        Gary Brownell, Treasurer and CFO
        (Principal Accounting Officer)           Subscribed and sworn to
                                                 before me this 14th day of
                                                 March 2003


                                                /s/ Dolana Blount
                                               -------------------
DATE:    March 14, 2003                          Dolana Blount
                                                 Notary Public
                                                 My Commission Expires:
                                                 March 17, 2005