**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

|   | x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------|

|  | o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--|---|---------------------------------------------------------------------------------------------------------------------------------------|

| Delaware                                                |   | 11-2844247                         |
|---------------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of          |   | (I.R.S.                Employer    |
| incorporation                or organization)           |   | Identification                No.) |
|                                                    |   |                               |
| 895                Waverly Avenue, Holtsville, New York |   |                   11742  |
| (Address                of principal executive offices) |   | (Zip                Code)          |

| Large                Accelerated Filer o | Accelerated                Filer o | Non-Accelerated                Filer x |
|------------------------------------------|------------------------------------|----------------------------------------|

----

**PART        1 – FINANCIAL INFORMATION**

**Item        1. Financial Statements**

|                                                                                                                                                                                                                                                                                         |   | December                    31,2007 |        | June                    30,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                         |   | (unaudited)                         |        |                            |   |
| ASSETS:                                                                                                                                                                                                                                                                                      |   |                                |        |                            |   |   |   |
| CURRENT                    ASSETS:                                                                                                                                                                                                                                                           |   |                                |        |                            |   |   |   |
| Cash                                                                                                                                                                                                                                                                                         |   | $                                   | 32,643      |                            | $      | 156,616 |   |
| Accounts                    receivable, net of allowance for doubtful accounts of                    $2,515,559and                    $2,522,678, respectively                                                                                                                               |   |                                | 6,546,710   |                            |   | 6,977,425 |   |
| Inventory                                                                                                                                                                                                                                                                                    |   |                                | 171,953     |                            |   | 123,273 |   |
| Costs                    and estimated earnings in excess of billings on uncompleted                    contracts                                                                                                                                                                            |   |                                | 39,093      |                            |   | 17,523 |   |
| Prepaid                    expenses and other current assets                                                                                                                                                                                                                                 |   |                                | 707,196     |                            |   | 1,278,112 |   |
| Total                    current assets                                                                                                                                                                                                                                                      |   |                                | 7,497,595   |                            |   | 8,552,949 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| PROPERTY                    AND EQUIPMENT, net of accumulated depreciation andamortization                    of $8,585,582 and $8,104,302, respectively                                                                                                                                     |   |                                | 2,145,691   |                            |   | 2,478,931 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| OTHER                    ASSETS:                                                                                                                                                                                                                                                             |   |                                |        |                            |   |   |   |
| Deferred                    financing costs                                                                                                                                                                                                                                                  |   |                                | 593,665     |                            |   | 1,196,539 |   |
| Other                                                                                                                                                                                                                                                                                        |   |                                | 132,048     |                            |   | 136,359 |   |
| Total                    other assets                                                                                                                                                                                                                                                        |   |                                | 725,713     |                            |   | 1,332,898 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| TOTAL                                                                                                                                                                                                                                                                                        |   | $                                   | 10,368,999  |                            | $      | 12,364,778 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| LIABILITIES                    AND STOCKHOLDERS’ DEFICIENCY:                                                                                                                                                                                                                           |   |                                |        |                            |   |   |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| CURRENT                    LIABILITIES:                                                                                                                                                                                                                                                      |   |                                |        |                            |   |   |   |
| Accounts                    payable                                                                                                                                                                                                                                                          |   | $                                   | 2,951,126   |                            | $      | 2,599,514 |   |
| Liability                    for repurchased account receivable                                                                                                                                                                                                                              |   |                                | 150,000     |                            |   | 150,000 |   |
| Accrued                    expenses                                                                                                                                                                                                                                                          |   |                                | 1,362,106   |                            |   | 1,743,619 |   |
| Billings                    in excess of costs and estimated earnings on uncompleted                    contracts                                                                                                                                                                            |   |                                | 25,256      |                            |   | 64 |   |
| Secured                    convertible notes payable                                                                                                                                                                                                                                         |   |                                | 464,151     |                            |   | 908,430 |   |
| Secured                    non-convertible notes payable                                                                                                                                                                                                                                     |   |                                | 500,000     |                            |   | 1,000,000 |   |
| Accrued                    payroll and related fringe benefits                                                                                                                                                                                                                               |   |                                | 1,217,622   |                            |   | 1,135,281 |   |
| Current                    maturities of long-term debt                                                                                                                                                                                                                                      |   |                                | 120,084     |                            |   | 127,727 |   |
| Other                    current liabilities                                                                                                                                                                                                                                                 |   |                                | 692,798     |                            |   | 366,612 |   |
| Total                    current liabilities                                                                                                                                                                                                                                                 |   |                                | 7,483,143   |                            |   | 8,031,247 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| LONG-TERM                    DEBT:                                                                                                                                                                                                                                                           |   |                                |             |                            |   |  |   |
| Secured                    notes payable                                                                                                                                                                                                                                                     |   |                                | 5,147,861   |                            |   | 3,991,494 |   |
| Other                                                                                                                                                                                                                                                                                        |   |                                | 168,492     |                            |   | 126,774 |   |
| Total                    long-term debt                                                                                                                                                                                                                                                      |   |                                | 5,316,353   |                            |   | 4,118,268 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| SERIES                    A REDEEMABLE CONVERTIBLE PREFERRED STOCK, $.01 parvalue;                    1,300,000 shares authorized, issued and outstanding at December                    31,                    2007and                    June 30, 2007                                     |   |                                | 1,300,000   |                            |   | 1,300,000 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| COMMITMENTS                    AND CONTINGENCIES                                                                                                                                                                                                                                             |   |                                |        |                            |   |   |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| STOCKHOLDERS’                    DEFICIENCY:                                                                                                                                                                                                                                           |   |                                |        |                            |   |   |   |
| Series                    B preferred stock, $.01 par value; 50,000 shares issued and authorized;                    0                    shares outstanding at December 31, 2007 and June 30, 2007                                                                                          |   |                                | -           |                            |   | - |   |
| Nondesignated                    preferred stock, no par value; 8,650,000 shares authorized;0                    shares issued and outstanding at December 31, 2007 and June 30,                    2007                                                                                     |   |                                | -           |                            |   | - |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| Common                    stock, $.0001 par value; 150,000,000 shares authorized;                    41,986,396shares                    issued and outstanding at December 31, 2007 and 38,395,625 shares                    issued andoutstanding                    at June 30, 2007 |   |                                | 4,199       |                            |   | 3,840 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| Additional                    paid-in-capital                                                                                                                                                                                                                                                |   |                                | 45,500,778  |                            |   | 45,305,585 |   |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| Accumulated                    deficit                                                                                                                                                                                                                                                       |   |                                | (49,235,474 | )                               |   | (46,394,162 | ) |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| Total                    stockholders’ deficiency                                                                                                                                                                                                                                      |   |                                | (3,730,497  | )                               |   | (1,084,737 | ) |
|                                                                                                                                                                                                                                                                                         |   |                                |        |                            |   |   |   |
| TOTAL                                                                                                                                                                                                                                                                                        |   | $                                   | 10,368,999  |                            | $      | 12,364,778 |   |

----

|                                                                                                                           |   | Three                    Months Ended |        | Three                    Months Ended |   | Six                       Months Ended |   | Six                    Months Ended |        |
|--------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-------------|---------------------------------------|--------|----------------------------------------|--------|-------------------------------------|-------------|
|                                                                                                                           |   | December                    31,2007   |        | December                    31,2006   |   | December                    31,2007    |   | December                    31,2006 |        |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |
| Revenues                                                                                                                       |   | $                                     | 2,404,631   |                                  | $      | 2,023,458                              |   | $                                   | 6,905,897   |   | $ | 4,507,269 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Cost                    of revenues                                                                                            |   |                                  | 2,549,130   |                                  |   | 2,142,560                              |   |                                | 5,377,043   |   |   | 4,998,299 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Gross                    (loss)/profit                                                                                         |   |                                  | (144,499    | )                                     |   | (119,102                               | )      |                                | 1,528,854   |   |   | (491,030 | ) |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Operating                    expenses:                                                                                         |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Selling,                    general and administrative expenses                                                                |   |                                  | 1,574,835   |                                  |   | 2,205,963                              |   |                                | 3,117,384   |   |   | 3,848,446 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Loss                    from operations                                                                                        |   |                                  | (1,719,334  | )                                     |   | (2,325,065                             | )      |                                | (1,588,530  | ) |   | (4,339,476 | ) |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Other                    income (expense):                                                                                     |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Mark-to-market                    gain on embedded derivatives                                                                 |   |                                  | -           |                                  |   | -                                      |   |                                | -           |   |   | 15,721,986 |   |
| Interest                    expense                                                                                            |   |                                  | (640,392    | )                                     |   | (589,839                               | )      |                                | (1,246,202  | ) |   | (1,791,722 | ) |
| Gain                    on extinguishment of embedded derivative liability andloss                    from exercise of options |   |                                  | -           |                                  |   | -                                      |   |                                | -           |   |   | 987,105 |   |
| Other                    income/ (expense), net                                                                                |   |                                  | 160         |                                  |   | 39,267                                 |   |                                | 375         |   |   | 39,811 |   |
| Total                    other (expense)/ income:                                                                              |   |                                  | (640,232    | )                                     |   | (550,572                               | )      |                                | (1,245,827  | ) |   | 14,957,180 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| (Loss)/income                    before benefit/provision for income taxes                                                     |   |                                  | (2,359,566  | )                                     |   | (2,875,637                             | )      |                                | (2,834,357  | ) |   | 10,617,704 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Provision/(benefit)                    for income taxes                                                                        |   |                                  | 4,125       |                                  |   | (672,247                               | )      |                                | 6,955       |   |   | (1,312,289 | ) |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Net                    (loss)/income                                                                                           |   |                                  | (2,363,691  | )                                     |   | (2,203,390                             | )      |                                | (2,841,312  | ) |   | 11,929,993 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Dividends                    on preferred stock                                                                                |   |                                  | 19,500      |                                  |   | 19,500                                 |   |                                | 39,000      |   |   | 39,000 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Net(loss)/                    profit attributable to common shareholders                                                       |   |                                  | ($2,383,191 | )                                     |   | ($2,222,890                            | )      |                                | ($2,880,312 | ) | $ | 11,890,993 |   |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Basic                    and diluted net (loss)/profit per common share:                                                       |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Basic                                                                                                                          |   |                                  | ($0.06      | )                                     |   | ($0.07                                 | )      |                                | ($0.07      | ) |   | ($0.09 | ) |
| Diluted                                                                                                                        |   |                                  | ($0.06      | )                                     |   | ($0.07                                 | )      |                                | ($0.07      | ) |   | ($0.09 | ) |
|                                                                                                                           |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Weighted                    average number of common shares outstanding:                                                       |   |                                  |        |                                  |   |                                   |   |                                |        |   |   |   |   |
| Basic                                                                                                                          |   |                                  | 41,986,396  |                                  |   | 33,973,679                             |   |                                | 41,350,973  |   |   | 33,892,121 |   |
| Diluted                                                                                                                        |   |                                  | 41,986,396  |                                  |   | 33,973,679                             |   |                                | 41,350,973  |   |   | 33,892,121 |   |

----

|                                                     |   | Common                    Stock     |       |                         |   |                                          |   |                                   |       |
|----------------------------------------------------------|--------|-------------------------------------|------------|------------------------------|--------|-----------------------------------------------|--------|----------------------------------------|------------|
|                                                     |   | Number                    of Shares |       | Par                    Value |   | Additional                    Paid-in Capital |   | Accumulated                    Deficit |       | Total |   |
|                                                     |   |                                |       |                         |   |                                          |   |                                   |       |   |   |
| Balance                    at June 30, 2007              |   |                                | 38,395,625 |                         | $      | 3,840                                         |   | $                                      | 45,305,585 |   | $ | (46,394,162 | ) | $ | (1,084,737 | ) |
|                                                     |   |                                |       |                         |   |                                          |   |                                   |       |   |   |   |   |   |   |   |
| Conversion                    of notes and interest      |   |                                | 2,336,152  |                         |   | 234                                           |   |                                   | 210,020    |   |   |   |   |   | 210,254 |   |
|                                                     |   |                                |       |                         |   |                                          |   |                                   |       |   |   |   |   |   |   |   |
| Exercise                    of options                   |   |                                | 1,254,619  |                         |   | 125                                           |   |                                   | (125       | ) |   |   |   |   | - |   |
|                                                     |   |                                |       |                         |   |                                          |   |                                   |       |   |   |   |   |   |   |   |
| Stock                    option compensation             |   |                                |       |                         |   |                                          |   |                                   | 24,298     |   |   |   |   |   | 24,298 |   |
|                                                     |   |                                |       |                         |   |                                          |   |                                   |       |   |   |   |   |   |   |   |
| Dividends                    on Series A preferred stock |   |                                |       |                         |   |                                          |   |                                   | (39,000    | ) |   |   |   |   | (39,000 | ) |
|                                                     |   |                                |       |                         |   |                                          |   |                                   |       |   |   |   |   |   |   |   |
| Net                    loss                              |   |                                |       |                         |   |                                          |   |                                   |       |   |   | (2,841,312 | ) |   | (2,841,312 | ) |
|                                                     |   |                                |       |                         |   |                                          |   |                                   |       |   |   |   |   |   |   |   |
| Balance                    at December 31, 2007          |   |                                | 41,986,396 |                         | $      | 4,199                                         |   | $                                      | 45,500,778 |   | $ | (49,235,474 | ) | $ | (3,730,497 | ) |

----

|                                                                                                              |   |  Six                    Months Ended |        |  Six                    Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------|-------------------------------------------|--------|
|                                                                                                              |   |  December                    31,2007 |        |  December                    31,2006 |   |
|                                                                                                              |   |                                      |        |                                      |   |
| CASH                    FLOWS FROM OPERATING ACTIVITIES:                                                          |   |                                      |        |                                      |   |   |   |
| Net                    (loss)/income                                                                              |   |                                      | ($2,841,312 | )                                         | $      | 11,929,993 |   |
| Adjustments                    to net cash (used in ) provided by operating activities                            |   |                                      |        |                                      |   |   |   |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| Mark-to-market                    income on embedded derivative liabilities                                       |   |                                      | -           |                                      |   | (15,721,986 | ) |
| Non-cash                    interest expense on convertible secured note                                          |   |                                      | 83,003      |                                      |   | 739,724 |   |
| (Gain)                    on extinguishment of embedded derivaties/loss on exercise of                    options |   |                                      | -           |                                      |   | (987,105 | ) |
| Depreciation                    and amortization                                                                  |   |                                      | 481,280     |                                      |   | 454,160 |   |
| Provision                    for doubtful accounts, net                                                           |   |                                      | (7,119      | )                                         |   | 917,845 |   |
| Amortization                    of deferred financing cost                                                        |   |                                      | 606,374     |                                      |   | 593,165 |   |
| Amortization                    of discount on secured convertible note                                           |   |                                      | 239,339     |                                      |   | 119,669 |   |
| Stock-based                    compensation                                                                       |   |                                      | 24,299      |                                      |   | - |   |
| Changes                    in operating assets and liabilities:                                                   |   |                                      |        |                                      |   |   |   |
| Accounts                    receivable                                                                            |   |                                      | 467,861     |                                      |   | 2,508,811 |   |
| Inventory                                                                                                         |   |                                      | (48,679     | )                                         |   | 9,688 |   |
| Costs                    and estimated earnings in excess of billings on uncompleted                    contracts |   |                                      | (21,570     | )                                         |   | 25,832 |   |
| Prepaid                    expenses and other current assets                                                      |   |                                      | 502,568     |                                      |   | 98,796 |   |
| Other                    assets                                                                                   |   |                                      | 4,932       |                                      |   | (35,446 | ) |
| Accounts                    payable and accrued expenses                                                          |   |                                      | (130,031    | )                                         |   | 197,733 |   |
| Accrued                    payroll and related fringe benefits                                                    |   |                                      | 82,341      |                                      |   | 90,635 |   |
| Income                    tax payable                                                                             |   |                                      | 68,348      |                                      |   | (1,602,932 | ) |
| Other                    current liabilities                                                                      |   |                                      | 326,186     |                                      |   | 58,792 |   |
| Billings                    in excess of costs and estimated earnings on uncompleted                    contracts |   |                                      | 25,192      |                                      |   | 31,945 |   |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| NET                    CASH( USED IN)/PROVIDED BY OPERATING ACTIVITIES:                                           |   |                                      | (136,988    | )                                         |   | (570,681 | ) |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES:                                                          |   |                                      |        |                                      |   |   |   |
| Purchases                    of property and equipment                                                            |   |                                      | (3,719      | )                                         |   | (182,481 | ) |
| Proceeds                    from third party receivables                                                          |   |                                      | -           |                                      |   | 189,197 |   |
| NET                    CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES                                            |   |                                      | (3,719      | )                                         |   | 6,716 |   |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVITIES:                                                          |   |                                      |        |                                      |   |   |   |
| Principal                    payments of long-term debt                                                           |   |                                      | (79,766     | )                                         |   | (117,178 | ) |
| Cash                    overdraft                                                                                 |   |                                      | -           |                                      |   | 109,456 |   |
| Cancellation                    of liability to a related party                                                   |   |                                      | -           |                                      |   | (39,197 | ) |
| Payments                    for deferred financing costs                                                          |   |                                      | (3,500      | )                                         |   | - |   |
| Proceeds                    from secured note                                                                     |   |                                      | 100,000     |                                      |   | - |   |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| NET                    CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES                                            |   |                                      | 16,734      |                                      |   | (46,919 | ) |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| NET                    DECREASE IN CASH                                                                           |   |                                      | (123,973    | )                                         |   | (610,884 | ) |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| CASH                    - BEGINNING OF PERIOD                                                                     |   |                                      | 156,616     |                                      |   | 610,884 |   |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| CASH                    - END OF PERIOD                                                                           |   | $                                         | 32,643      |                                      | $      | 0 |   |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| Cash                    paid during the period for:                                                               |   |                                      |        |                                      |   |   |   |
| Interest                                                                                                          |   | $                                         | 111,601     |                                      | $      | 320,489 |   |
| Income                    taxes                                                                                   |   | $                                         | 6,955       |                                      | $      | 8,070 |   |
|                                                                                                              |   |                                      |        |                                      |   |   |   |
| SUPPLEMENTAL                    SCHEDULE OF NON-CASH ACTIVITIES:                                                  |   |                                      |        |                                      |   |   |   |
| Extinguishment                    of derivative liabilities                                                       |   |                                      | -           |                                      | $      | 6,539,022 |   |
| Reduction                    of long-term debt through note conversion - Laurus                                   |   | $                                         | 127,251     |                                      | $      | 29,700 |   |
| Laurus                    note conversion                                                                         |   |                                      | -           |                                      | $      | 100,000 |   |
| Tax                    benefit on extinguishment of embedded derivatives                                          |   |                                      | -           |                                      | $      | 4,900 |   |

----

| 1. | BASIS                FOR PRESENTATION - The accompanying unaudited consolidated financial                statements include the accounts of Windswept Environmental Group,                Inc.                (the “Company”) and its subsidiaries, Trade-Winds Environmental                Restoration, Inc. (“Trade-Winds”), North Atlantic Laboratories, Inc.,                Environmental Restoration Inc. and RestoreNet Inc. All inter-company                accounts and transactions have been eliminated in consolidation.                The                unaudited consolidated financial statements have been prepared by                the                Company in accordance with accounting principles generally accepted                in the                United States of America (“generally accepted accounting principles”) for                interim financial statements and with the instructions to Form 10-Q                and                Article 10 of Regulation S-X. 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 the                Company, all adjustments (consisting of only normal and recurring                accruals) considered necessary to present fairly the financial position                of                the Company and its subsidiaries on a consolidated basis as of December                31, 2007, the results of operations for the three months and six                months                ended December 31, 2007 and December 31, 2006 and cash flows for                the six                months ended December 31, 2007 and December 31, 2006 have been included.                Certain prior period amounts have been reclassified to conform to                the                December 31, 2007 presentation. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | STOCK-BASED                COMPENSATION - The                Company consummated various transactions where it paid the consideration                primarily in options or warrants to purchase its common stock. These                transactions include financing transactions and providing incentives                to                attract, retain and motivate employees, officers and directors. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | exercise                price (the price to be paid for a share of the Company’s common                stock); |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

|  | · | price                of the Company’s common stock on the day the options or warrants are                granted; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | · | the                expected number of days that the options or warrants will be held                before                they are exercised, based  on                the average of their vesting and contractual                periods; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | trading                volatility of the Company’s common stock, based on historical prices for a                retrospective  period                equal to the expected holding period together with certain other                factors;                and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                annual risk-free interest rate on the day the option or warrant is                granted                for the expected holding period. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | NET(LOSS)/                INCOME PER COMMON SHARE -Basic and diluted (loss)/income per common                share                was calculated for all periods in accordance with the requirements                of                Statement of Financial Accounting Standards No. 128, “Earnings per Share”.                The following table sets forth the computation of the basic and diluted                (loss)/income per share for the three and six months ended December                31,                2007 and the three and six months ended December 31, 2006,                respectively: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                               |   |  Three                Months Ended |       | Three                Months Ended |   | Six                MonthsEnded   |   | Six                MonthsEnded  |       |
|--------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|----------------------------------------|--------|----------------------------------|--------|---------------------------------|------------|
|                                                                                                               |   |  December                31, 2007  |       | December                31, 2006  |   | December                31, 2007 |   | December                31,2006 |       |
| Numerator:                                                                                                         |   |                                    |       |                                   |   |                             |   |                            |       |   |   |   |   |
| Net(loss)/                income attributable to common                shareholders                                |   | $                                       | (2,383,191 | )                                      | $      | (2,222,890                       | )      | $                               | (2,880,312 | ) | $ | 11,890,993 |   |
| (Deduct)/Add:                                                                                                      |   |                                    |       |                                   |   |                             |   |                            |       |   |   |   |   |
| Mark-to-market                gain                                                                                 |   |                                    | -          |                                   |   | -                                |   |                            | -          |   |   | (15,721,986 | ) |
| Interest                on convertible debt                                                                        |   |                                    | -          |                                   |   | -                                |   |                            | -          |   |   | 739,724 |   |
| Dividends                on preferred stock                                                                        |   |                                    | 19,500     |                                   |   | 19,500                           |   |                            | 39,000     |   |   | 39,000 |   |
| Net                (loss) attributable to                common shareholders and                assumed conversion |   | $                                       | (2,363,691 | )                                      | $      | (2,203,390                       | )      | $                               | (2,841,312 | ) | $ | (3,052,269 | ) |
| Denominator:                                                                                                       |   |                                    |       |                                   |   |                             |   |                            |       |   |   |   |   |
| Share                reconciliation:                                                                               |   |                                    |       |                                   |   |                             |   |                            |       |   |   |   |   |
| Shares                used for basic (loss)/income                per share                                        |   |                                    | 41,986,396 |                                   |   | 33,973,679                       |   |                            | 41,350,973 |   |   | 33,892,121 |   |
| Effect                of dilutive items:                                                                           |   |                                    |       |                                   |   |                             |   |                            |       |   |   |   |   |
| Stock                options                                                                                       |   |                                    | -          |                                   |   | -                                |   |                            | -          |   |   | - |   |
| Convertible                securities                                                                              |   |                                    | -          |                                   |   | -                                |   |                            | -          |   |   | - |   |
| Shares                used for diluted (loss)/income                per share                                      |   |                                    | 41,986,396 |                                   |   | 33,973,679                       |   |                            | 41,350,973 |   |   | 33,892,121 |   |
| (Loss)/income                per share:                                                                            |   |                                    |       |                                   |   |                             |   |                            |       |   |   |   |   |
| Basic                and diluted                                                                                   |   | $                                       | (.06       | )                                      | $      | (.07                             | )      | $                               | (.07       | ) | $ | (.09 | ) |

| 4. | PROVISION                FOR INCOME TAXES - The provision for income taxes for the three and                six                months ended December 31, 2007 and the three and six months ended                December                31, 2006 consists of the following: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   | Three                Months Ended |   | Three                Months Ended |   | Six                MonthsEnded  |   | Six                MonthsEnded  |   |
|----------------------------------|--------|-----------------------------------|--------|----------------------------------------|--------|---------------------------------|--------|---------------------------------|--------|
|                             |   | December                31, 2007  |   | December                31, 2006       |   | December                31,2007 |   | December                31,2006 |   |
|                             |   |                              |   |                                   |   |                            |   |                            |   |
| Federal                - current |   | $                                 | -      |                                   | $      | (680,317                        | )      | $                               | -      |   | $ | (1,327,229 | ) |
| State                - current   |   |                              | 4,125  |                                   |   | 8,070                           |   |                            | 6,955  |   |   | 14,940 |   |
| Total                            |   | $                                 | 4,125  |                                   | $      | (672,247                        | )      | $                               | 6,955  |   | $ | (1,312,289 | ) |

| 5. |  CONTINGENCIES –                The Company is a plaintiff in 18 lawsuits, including those described                in                the Notes to the Financial Statements included in the Company’s Annual                Report on Form 10-K for the year ended June 30, 2007, claiming an                aggregate of approximately $7,750,000 pursuant to which it is seeking                to                collect amounts it believes are owed to it by customers included                in its                accounts receivable, primarily with respect to changed work orders                or                other modifications to its scope of work. The defendants in these                actions                have asserted counterclaims for an aggregate of approximately                $1,000,000. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | FINANCING                AND RELATED PARTY TRANSACTIONS -                In                July 2007, the Company issued an additional non-convertible secured                note                to Laurus in the principal amount of $100,000, on the same terms                and                conditions as the other non-convertible notes previously issued to                Laurus                in January and April 2007. The note bears interest at a rate of 17.5%                per                annum and is due on January 8, 2009 (see subsequent                events.) |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | SUBSEQUENT                EVENTS- On January 8, 2008, the Company entered into another Omnibus                Amendment with Laurus pursuant to which payments due under the amended                convertible note were deferred and the due date of the term notes                issued                in 2007 were extended from January 2008 to June 30, 2009. The Omnibus                Amendment extends the time of payment of principal and interest amounts                previously waived and deferred under the September 2006 Convertible                Note                and the monthly amounts due on January 2008 and February 2008 to                a date                which is the earlier to occur of the maturity date (June 30, 2009)                and the                date upon which all obligations arising under the Convertible Note                have                been paid in full, providing that as of March 1, 2008 all regularly                scheduled payments shall be paid on the dates set forth. The Omnibus                Amendment also amends and extends the maturity date of the term notes                from                January 2008 until June 30, 2009. In consideration of this waiver                and                deferral, the Company agreed to pay on the new maturity date an additional                fee in the amount of $150,002. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | On                January 28, 2008, the Company issued 1,108,056 shares of its common                stock                under the 2001 Equity Incentive Plan to a consultant for services                rendered. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | customers                refusing to pay prior to receiving insurance reimbursements; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | customers’                facility managers needing to wait for insurance adjustors to approve                work                before payment; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | certain                customers refusing to pay in connection with disputed change                orders. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|  | · | we                generally do not commence projects until we have a fully executed                contract; |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | · | our                contracts provide that our customers are directly obligated for our                services; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | we                require client approval with respect to the work performed or to                be                performed; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------|

|  | · | we                seek deposits or mobilization fees; |
|--|--------|-------------------------------------------------------|

|  | · | we                engage local legal counsel in the areas in which we operate in order                to                file liens against customers’ real property in the event of contract                disputes; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | we                review every invoice for proper documentation prior to submission                to our                customers for payment. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                prime interest rate was projected to increase 0.25% per quarter for                the                first year; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                future volatility of common stock was projected at                150%; |
|--|--------|--------------------------------------------------------------------------------------------|

|  | · | the                stock price annual growth rate was estimated at the cost of                equity; |
|--|--------|-------------------------------------------------------------------------------------------------------|

|  | · | a                default on registration requirements was projected at                5.0%; |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | other                forms of default were projected at 5.0% initially, increasing 0.1%                monthly; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | the                availability of alternative financing to redeem the note, if the                exercise                of the redemption option was triggered,                starting at 0%, increasing monthly by 1% to a maximum of                25%; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                twenty-two day trading volume remaining flat;                and |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | the                  weighted average reset period projected at                  $0.0899. |
|--|--------|-------------------------------------------------------------------------------------------|

----

|  | · | exercise                price (the price to be paid for a share of our                stock); |
|--|--------|-----------------------------------------------------------------------------------------------|

|  | · | price                of our stock on the day the options or warrants are                granted; |
|--|--------|--------------------------------------------------------------------------------------------------|

|  | · | the                expected number of days that the options or warrants will be held                before                they are exercised, based  on                the average of their vesting and contractual                periods; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | trading                volatility of our stock, based on historical prices for a retrospective                period equal to the expected                holding period together with certain other factors as applicable;                and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                annual risk-free interest rate on the day the option or warrant is                granted                for the expected holding  period. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The                original contract or other evidence provides a legal basis for the                claim; |
|--|--------|-------------------------------------------------------------------------------------------------------------|

|  | · | The                additional costs were caused by circumstances that were unforeseen                at the                contract date and were not                the result of deficiencies in our                performance; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Costs                  associated with the claims are identifiable;                  and |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | The                evidence supporting the claims is objective and                verifiable. |
|--|--------|-----------------------------------------------------------------------------------------------|

----

*Three      months ended December 31, 2007 and three months ended December 31,      2006*

----

*Six-months      ended December 31, 2007 and six months ended December 31,      2006*

----

|  | · | Obtain                profitable environmental or related construction contracts. So long                as we                have sufficient working capital, we anticipate that we will continue                to                bid on large projects, although there can be no assurance that any                of our                bids will be accepted or that we will have sufficient working capital. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Continue                to control our selling, general and administrative expenses, which                were                originally increased in connection with our need to incur labor,                operating                and equipment expenses in relation to our operations in the gulf                coast and                Florida regions during fiscal 2006. We have and are continuing the                process                of optimizing the efficiency of our support staff through enhanced                task                allocation while reducing unneeded resources and reviewing non-project                related expenses to reduce costs, while preserving the quality of                our                service. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Raise                additional capital or obtain additional financing. Management has                preliminarily explored additional funding sources, but has been unable                to                attract additional debt or equity capital. In addition, the existence                of                the Laurus and Spotless security interests may impair our ability                to raise                additional debt capital. In addition, the small number of available                authorized shares of our common stock may impair our ability to                obtain                equity capital. No assurance can be given that we will be able toobtain                additional debt or equity capital, although our management expects                to                continue seeking any such favorable                opportunities. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Generate                positive cash flow from operations. We seek to obtain profitable                contracts                that generate gross profits more than sufficient to pay our expenses                and                reduce our difficulty with cash collections and slow cash                flow. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | Total  |       | 1                Year |   | 2-3                Years |   | 4-5                Years |      | Thereafter |   |
|--------------------------------------------------|--------|--------|------------|-----------------------|--------|--------------------------|--------|--------------------------|-----------|------------|--------|
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |
| Operating                Leases                  |   | $      | 3,282,895  |                  | $      | 641,363                  |   | $                        | 1,191,255 |       | $      | 1,082,398 |   | $ | 367,879 |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Capitalized                Leases-Principal      |   |   | 176,546    |                  |   | 89,530                   |   |                     | 64,960    |       |   | 22,056 |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Capitalized                Leases- Interest      |   |   | 14,505     |                  |   | 7,667                    |   |                     | 5,744     |       |   | 1,094 |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Laurus-Term                Note Principal        |   |   | 600,000    |                  |   | -                        |   |                     | 600,000   |       |   | - |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Laurus-Term                Note-Interest         |   |   | 176,459    |                  |   | 105,000                  |   |                     | 71,459    |       |   | - |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| BB&T                Notes (1)                |   |   | 112,030    |                  |   | 30,554                   |   |                     | 61,107    |       |   | 20,369 |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| BB&T                Interest (1)             |   |   | 9,802      |                  |   | 2,673                    |   |                     | 5,347     |       |   | 1,782 |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Laurus                Convertible Note-Principal |   |   | 5,730,028  |                  |   | 530,639                  |   |                     | 5,199,389 |       |   | - |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Laurus                Convertible Note-Interest  |   |   | 1,197,213  |                  |   | 567,249                  |   |                     | 629,964   |       |   | - |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Spotless                Note-Principal           |   |   | 500,000    |                  |   | 500,000                  |   |                     | -         |       |   | - |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Spotless                Note-Interest            |   |   | 94,262     |                  |   | 94,262                   |   |                     | -         |       |   | - |   |   | - |   |
|                                             |   |   |       |                  |   |                     |   |                     |      |       |   |   |   |   |   |   |
| Total                                            |   | $      | 11,893,740 |                  | $      | 2,568,937                |   | $                        | 7,829,225 |       | $      | 1,127,699 |   | $ | 367,879 |   |

----

|  | · | the                Laurus note at a rate of 10.25% per                annum; |
|--|--------|------------------------------------------------------------------------------|

|  | · | the                Spotless note at a rate of 5.93% per annum; and |
|--|--------|--------------------------------------------------------------------|

|  | · | an                aggregate of $176,546 of other long-term debt with maturities ranging                from                3 months to 52 months for financed trucks and vehicles with interest                rates                ranging from 3.90% to 13.99%. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the                timing of large projects in certain of our service areas, i.e., asbestos                and mold abatement and                construction; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                timing of catastrophes; and |
|--|--------|------------------------------------------------|

|  | · | inclement                weather conditions. In particular, extended periods of rain, cold                weather                or other inclement weather conditions may result in delays in                commencing or completing projects, in whole or in part. Any such                delays                may adversely affect our operations and financial  results and                may adversely affect the performance of other projects due to scheduling                and staffing conflicts. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                market acceptance and amount of sales of our                services; |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | our                success in increasing revenues and reducing                expenses; |
|--|--------|-----------------------------------------------------------------------------------------|

|  | · | the                frequency and magnitude of environmental disasters or disruptions                resulting in the need for the types of services we                provide; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | our                ability to service our debt and other financial obligations, particularly                if required to pay in cash; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the                extent of the enactment, enforcement and strict interpretations of                laws                relating to environmental                remediation; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | our                ability to obtain and manage new and large                projects; |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | the                competitive environment within the industries in which we                operate; |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | our                ability to raise or access capital; |
|--|--------|--------------------------------------------------------|

|  | · | our                ability to continue as a going                concern; |
|--|--------|---------------------------------------------------------------------------|

|  | · | our                ability to effectively implement and maintain internal controls and                procedures; |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | our                dependence on key personnel; |
|--|--------|-------------------------------------------------|

|  | · | our                ability to timely collect our accounts                receivable; |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | our                ability to attract and retain qualified personnel;                and |
|--|--------|------------------------------------------------------------------------------------------|

|   | · | the                other factors and information disclosed and discussed in other sections                of                this quarterly report on Form 10-Q and in our report on Form 10-K                for the                fiscal year ended June 30, 2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Laurus                note at a rate of 10.25% per annum; |
|--|--------|-----------------------------------------------------------|

|  | · | Spotless                note at a rate of 5.93% per annum;                and |
|--|--------|-------------------------------------------------------------------------------|

|  | · | Various                other debt for financed trucks and vehicles with maturities ranging                from 3                months to 55 months with interest rates ranging from 3.90% to                13.99%. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 31.1 | Certification                of Chief Executive Officer pursuant to Sarbanes-Oxley Section                302(a). |
|--------|------|-------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                of Chief Financial Officer pursuant to Sarbanes-Oxley Section                302(a). |
|--------|------|-------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. Section 1350. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |   | WINDSWEPT                ENVIRONMENTAL GROUP, INC.   |
|----------------------------------------|--------|------------------------------------------------------|
|                                   |   |                                                 |
| Date:                February 19, 2008 | By:    | /s/                Michael O’Reilly            |
|                                   |   | MICHAEL                O’REILLY                |
|                                   |   | President                and Chief Executive Officer |
|                                   |   | (Principal                Executive Officer)         |

| Date:                February 19, 2008 | By:    | /s/                Arthur J. Wasserspring    |
|----------------------------------------|--------|----------------------------------------------|
|                                   |   | ARTHUR                J. WASSERSPRING        |
|                                   |   | Chief                Financial Officer       |
|                                   |   | (Principal                Financial Officer) |

----

| Exhibit No. |   | Description                                                                                                                                           |
|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                  |
| 31.1             |   | Certification                of Chief Executive Officer pursuant to Sarbanes-Oxley Section                302(a).                                     |
|             |   |                                                                                                                                                  |
| 31.2             |   | Certification                of Chief Financial Officer pursuant to Sarbanes-Oxley Section                302(a).                                     |
|             |   |                                                                                                                                                  |
| 32.1             |   | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. Section 1350. |

----