<PAGE>



                     U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   FORM 10-QSB

(Mark One)
 X       QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---      ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999

         TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---      ACT OF 1934 FOR THE TRANSITION PERIOD FROM
         ____________ TO ______________

Commission File Number 2-93277-D

                           MEDIZONE INTERNATIONAL, INC.

             (Exact name of registrant as specified in its charter)
Nevada                                                                87-0412648
(State or other jurisdiction                (I.R.S. Employer Identification No.)
of incorporation or organization)

                                 144 Buena Vista
                                  P.O. Box 742
                             Stinson Beach, CA 94970
               (Address of principal executive offices, zip code)

                                 (415) 868-0300
              (Registrant's telephone number, including area code)

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

At May 15, 1999, there were 149,173,656 shares of the registrant's  common stock
issued and outstanding.

Transitional Small Business Disclosure Format
(Check one):
Yes __ No  X
          --

                                        1
<PAGE>


                          MEDIZONE INTERNATIONAL, INC.

                                   FORM 10-QSB

                                      INDEX

                                 March 31, 1999

                                                                          Page
                                                                          Number

Part I - Financial Information

Item 1 - Financial Statements

            Consolidated Balance Sheet:
         -March 31, 1999 and December 31, 1998.................................3

            Consolidated Statement of Operations:
         -For the Three Months Ended March 31, 1999 and 1998...................4

        Consolidated Statement of Cash Flow
         -For the Three Months Ended

           March 31, 1999 and 1998.............................................5

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

Item 2 - Management's Discussion and Analysis or Plan of Operation.............7

Part II - Other Information

Item 2 - Changes in Securities and Use of Proceeds............................10

Item 6 - Exhibits and Reports on Form 8-K ....................................10




                                        2



<PAGE>


                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY

                          (A Development Stage Company)

                           CONSOLIDATED BALANCE SHEET

                      March 31, 1999 and December 31, 1998




                                     ASSETS

<TABLE>
<CAPTION>
                                                                      March 31,            December 31,
                                                                         1999                  1998
                                                                  -------------------   -------------------
CURRENT ASSETS                                                       (Unaudited)
<S>                                                               <C>                   <C>
    Cash and cash equivalents                                     $               507   $             7,643
                                                                  -------------------   -------------------
        Total Current Assets                                                      507                 7,643
                                                                  -------------------   -------------------

PROPERTY AND EQUIPMENT, net                                                     7,126                 7,612
                                                                  -------------------   -------------------

                                                                  $             7,633   $            15,255
                                                                  ===================   ===================
</TABLE>


                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>

CURRENT LIABILITIES
<S>                                                               <C>                   <C>
    Accounts payable                                              $           474,436   $           470,132
    Accrued liabilities                                                       294,215               288,606
    Current portion of long-term obligations                                  280,491               280,491
                                                                  -------------------   -------------------
        Total Current Liabilities                                           1,049,142             1,039,229
                                                                  -------------------   -------------------

STOCKHOLDERS' EQUITY (DEFICIT)
    Common stock                                                              149,149               148,926
    Additional paid-in capital                                             12,562,872            12,547,539
    Deficit accumulated the development stage                             (13,753,530)          (13,720,439)
                                                                  -------------------   -------------------
        Total Stockholders' Equity (Deficit)                               (1,041,509)           (1,023,974)
                                                                  -------------------   -------------------

                                                                  $             7,633   $            15,255
                                                                  ===================   ===================
</TABLE>




                             See accompanying notes.

                                        3
<PAGE>


                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY

                          (A Development Stage Company)

                      CONSOLIDATED STATEMENT OF OPERATIONS





<TABLE>
<CAPTION>
                                                                             Three              Three
                                                                             Months             Months
                                                                             Ended              Ended
                                                                            3/31/99            3/31/98
                                                                         ---------------    ---------------

<S>                                                                      <C>                <C>
            REVENUE                                                      $             -    $             -
            COST OF SALES                                                              -                  -
                                                                         ---------------    ---------------
              Gross Profit                                                             -                  -
                                                                         ---------------    ---------------

            COSTS AND EXPENSES
              Research and development                                                 -              8,050
              General and administrative                                          27,481            155,693
                                                                         ---------------    ---------------
                 Total Costs and Expenses                                         27,481            163,743
                                                                         ---------------    ---------------

            LOSS BEFORE OTHER INCOME (EXPENSE)                                   (27,481)          (163,743)
                                                                         ---------------    ---------------

            OTHER INCOME (EXPENSE)
              Interest expense                                                    (5,610)            (6,831)
              Interest income                                                          -                404
                                                                         ---------------    ---------------
                 Total Other Income (Expense) - net                               (5,610)            (6,427)
                                                                         ---------------    ---------------

            LOSS BEFORE INCOME TAXES                                             (33,091)          (170,170)

            INCOME TAX BENEFIT (PROVISION)                                             -                  -
                                                                         ---------------    ---------------

            NET INCOME (LOSS)                                            $       (33,091)   $      (170,170)
                                                                         ===============    ===============

            NET INCOME (LOSS) PER COMMON
              SHARE
              Basic                                                      $         (0.00)   $         (0.00)
                                                                         ===============    ===============

              Diluted                                                    $         (0.00)   $         (0.00)
                                                                         ===============    ===============

            AVERAGE COMMON AND EQUIVALENT
              SHARES
              Basic                                                          149,074,582        138,126,991
                                                                         ===============    ===============

              Diluted                                                        149,074,582        138,126,991
                                                                         ===============    ===============


</TABLE>

                             See accompanying notes.

                                        4
<PAGE>

                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY

                          (A Development Stage Company)

                      CONSOLIDATED STATEMENT OF CASH FLOWS

               For the Three Months Ended March 31, 1999 and 1998


<TABLE>
<CAPTION>

                                                                 March 31,         March 31,
                                                                   1999              1998
                                                               --------------    --------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                            <C>               <C>
     Net income (loss)                                         $      (33,091)   $     (170,170)
     Adjustments to reconcile net income (loss) to net
             cash provided by operating activities
         Depreciation and amortization                                    486               653
         Issuance of stock for accrued interest                             -             3,238
         Interest expense                                               5,610                 -
     Change in operating assets and liablilites
         Current and other assets                                           -             7,194
         Accounts payable and other liabilities                         4,303            (8,749)
                                                               --------------    --------------
                                                                      (22,692)         (167,834)
                                                               --------------    --------------

CASH FROM INVESTING ACTIVITIES                                              -                 -
                                                               --------------    --------------
                                                                            -                 -
                                                               --------------    --------------

CASH FROM FINANCING ACTIVITIES
     Issuance of common stock                                          15,556            60,000
                                                               --------------    --------------
                                                                       15,556            60,000
                                                               --------------    --------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                (7,136)         (107,834)

CASH AND CASH EQUIVALENTS
     Beginning of period                                                7,643           138,173
                                                               --------------    --------------
     End of period                                             $          507    $       30,339
                                                               ==============    ==============

SUPPLEMENTAL CASH FLOW INFORMATION
     Cash paid during the period for:
         Interest                                              $            -    $            -
                                                               ==============    ==============
         Income taxes                                          $            -    $            -
                                                               ==============    ==============


NON-CASH INVESTING AND FINANCING
     ACTIVITIES
     Issuance of common stock for interest                     $            -    $        3,238
                                                               ==============    ==============
     Issuance of common stock for cancellation of note
         payable                                               $            -    $       40,000
                                                               ==============    ==============
</TABLE>



                             See accompanying notes.



                                        5
<PAGE>


                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY

                          (A Development Stage Company)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 - Basis of Presentation

The financial  information  included  herein is unaudited and have been prepared
consistent with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Item  310(b)  of
Regulation  S-B.  Accordingly,  these  financial  statements  do not include all
information and footnotes required by generally accepted  accounting  principles
for  complete  financial   statements.   These  statements  should  be  read  in
conjunction with the audited financial  statements and notes thereto included in
the Company's  annual report on Form 10-K for the year ended  December 31, 1998.
In the opinion of management, these financial statements contain all adjustments
(consisting solely of normal recurring adjustments) which are, in the opinion of
management,  necessary  for a fair  statement of results for the interim  period
presented.

The results of  operations  for the  three-month  and  nine-month  periods ended
September 30, 1999 and 1998 are not necessarily  indicative of the results to be
expected for the full year.

2 - Capital Stock

During the quarter ended March 31, 1999, 222,222 common shares were issued to an
officer and director of the Company for $15,555 in cash.

3 - Income (Loss) Per Share

Following, is a reconciliation of the numerators of the basic and diluted income
(loss) per share for the three months ended March 31, 1999 and 1998:


<TABLE>
<CAPTION>

                                                                            Three           Three
                                                                           Months          Months
                                                                            Ended           Ended
                                                                           3/31/99         3/31/98
                                                                         ------------    ------------
<S>                                                                      <C>             <C>
            Net income (loss) available to common
                shareholders                                             $    (33,091)   $   (170,170)
                                                                         ------------    ------------

            Weighted average shares                                       149,074,582     138,126,991
            Effect of dilutive securities                                           -               -
                                                                         ------------    ------------

                                                                          149,074,582     138,126,991
                                                                         ------------    ------------

            Basic income (loss) per share (based on
                  weighted average shares)                               $      (0.00)   $      (0.00)
                                                                         ------------    ------------

            Diluted Income (loss) per share                              $      (0.00)   $      (0.00)
                                                                         ------------    ------------

</TABLE>

                                        6

<PAGE>


Item 2 - Management's Discussion and Analysis or Plan of Operation

         The  following  discussion  and  analysis  of the  Company's  financial
condition  and  results of  operations  should be read in  conjunction  with the
Consolidated  Financial Statements and Notes thereto appearing elsewhere in this
Form 10-QSB.

         The  Company  is a  development  stage  company,  primarily  engaged in
research  and  development  of ozone based  treatment  for  diseases  and health
problems caused by lipid enveloped  viruses,  including,  for example,  Acquired
Immune Deficiency  Syndrome (AIDS),  Hepatitis B, Hepatitis C and Herpes, and in
the development of technology for the  decontamination  of blood, blood products
and veterinarian serum products. The Company is also pursuing the development of
external applications of its technology for medical purposes.

         The Company has not  generated,  and cannot  predict when or if it will
generate,  significant  revenues or sufficient  cash flow to fund its continuing
operations.  It has funded its operations to date primarily  through the sale of
its  securities.  The  technology and its uses are subject to regulations of the
U.S.  Food and Drug  Administration  ("FDA")  and its  counterparts  in  foreign
countries.  The  Company  does not  intend to sell  equipment  or  supplies  for
ozone-generating purposes until it receives required government approvals.

         Testing and trials can be  conducted  on a limited  basis for  research
purposes and to establish  efficacy of machines  and  applications,  in order to
support applications for government approvals.  In November of 1997, Dr. Sunnen,
the Director of Research  (who later was  appointed  president of the Company on
April  15,  1998) was  instrumental  in  establishing  a  protocol  for Phase II
research to be performed at several leading Italian university research facility
under the auspices of the European Union. It has now been  determined,  based on
information  regarding the low toxicity levels demonstrated in earlier research,
that European Union health  authorities will accept  completion of a small-scale
Phase I clinical  study with 8-10 patients prior to starting the Phase II trial.
The Company is currently  preparing  submission  papers for a study  designed to
meet these criteria.

         The Company also has recently conducted trial treatment studies on four
patients  infected  with  Hepatitis  C. This  study was  conducted  through  the
guidance of Dr. William Hitt, a member of the Company's board of directors.  The
tests indicated significant  reductions in enzyme levels as measured by SGOT and
SGPT  standard  test  procedures  of the  patients  participating  in the study.
Enrollment  has  begun  for a new  10-12  patients  study of  Hepatitis  C, with
clinical data analyzed by an  independent  facility in Los Angeles,  California.
Testing will be conducted  prior to,  during and  following  the  completion  of
treatment and a six-week convalescence follow-up.

         The Company has recently  filed a patent  application  for the external
applications of ozone for medical purposes.  Problems that might be addressed by
such uses would include treatment of severe burns,  infections of ulcerations of
the skin (such as those that might be caused by advanced  stages of diabetes) or
other wounds.  In connection with this use of ozone,  the Company filed a patent
application,  no.  09/126,504,  External  Use  of  Ozone/Oxygen  for  Pathogenic
Conditions,  with the US Patent and Trademark  Office on July 30, 1998.  Foreign
applications  based on this  application  have also been made. In addition,  the
Company owns patents covering its ozone decontamination  technology filed in the
United States (no.  4,632,980,  December 30, 1986 and no. 5,052,382,  October 1,
1991), and related patents granted in several foreign  countries.  These patents
form the basis for the Company's technology used in the studies described above.

         The  Company  has  also  been  active  in  pursuing  veterinary  trials
investigating  the  effectiveness  of ozone in  deactivation of viruses in serum
products.  The Phase I trial on healthy serum  products was concluded in October
1998 and was deemed successful by the Company's researchers.  Dr. Sunnen expects
that a Phase II trial  should  also be  successful  based on the  results of the
first round.  The Phase II trial commenced in November and will  investigate the
deactivation rates of seven different viruses and is expected to be completed in
12 to 18 months.  If the results are  satisfactory,  the  Company  believes  its
technology  can be used in the  veterinary  medicine field to form the basis for
the  creation of a line of safer and more  effective  vaccines.  If the Phase II
veterinary  trials are  successful,  a Phase III trial would follow in the first
quarter of 1999. The study would include using the Company's ozone technology to
treat   commercial   quantities  of  serum  products,   possibly  leading  to  a
commercially  marketable process for large-scale viral  deactivation  during the
year 2000.

                                        7
<PAGE>


         There is no  assurance  that the results of such tests and studies will
be favorable to the Company or that  regulatory  approval will be received based
on such results.

Results of Operations

General

         From its inception  (January 1986),  the Company has been a development
stage company  primarily engaged in research into the medical uses of ozone. The
Company  has not  generated,  and cannot  predict  when or if it will  generate,
revenues or sufficient cash flow to fund its continuing operations.

Three Months  Ended March 31, 1999  compared to the Three Months Ended March 31,
1998:

         There were no sales during the  quarters  ended March 31, 1999 or 1998.
During the three months ended March 31, 1999,  the Company made no  expenditures
for  research  and  development,  compared to $8,050 for the three  months ended
March 31, 1998. General and administrative expenses in the first quarter of 1999
were  $27,481,  compared  to $8,050  during  the first  quarter  of 1998.  These
expenses  included  professional  fees,  payroll,  insurance  costs  and  travel
expenses.

         Interest  expense  accrued during the three months ended March 31, 1999
was $5,610, compared to $6,831 in the three months ended March 31, 1998.

Liquidity and Capital Resources

         At March 31,  1999,  the Company had a working  capital  deficiency  of
$1,048,635 and  stockholders'  deficit of $1,041,509.  At December 31, 1998, the
Company  had a  working  capital  deficiency  of  $1,031,586  and  stockholders'
deficiency of $1,023,974.

         Net cash used in operating  activities was $22,692 for the three months
ended March 31, 1999.  During the three months ended March 31, 1998, the Company
used  $167,834  in  operating  activities.  Cash was  provided  during the first
quarters of 1999 and 1998, primarily by the sale of the Company's securities.

         The Company will continue to require additional funding to enable it to
fund  research  necessary to make the  appropriate  regulatory  application  and
continue  operations.  It is expected  that these funds will be generated by the
sale of the Company's securities.

         The Company has developed a strategy,  which it believes will enable it
to fund requisite research necessary to gain regulatory approval(s) and continue
operations. This strategy depends upon the sale of the Company's common stock or
other  securities  to  certain  accredited  investors.   The  Company  has  also
structured and recently  implemented a cohesive  scientific plan  encompassing a
number of research  initiatives  which it believes may enable it to successfully
achieve its primary goals, which include the submission of appropriate  research
data to the FDA Center for Drugs and  Biologics  for the  approval  of its blood
decontamination  process and to the FDA Division of Antiviral  Drug Products for
approval of Phase I human  clinical  trial status for the  treatment of AIDS and
Hepatitis.  There can be no  assurance  that either the funding  strategy or the
scientific plan will be successful.  Failure to obtain  requisite  funding would
have a materially adverse effect on the Company and its financial condition.  At
the present  time,  although  the Company has had serious  discussions  with two
unrelated funding sources, there is no agreement for an investment of capital in
the Company.

         The  Company  recognizes  that,  if it is  unable  to raise  additional
capital, it may find it necessary to substantially reduce, or cease operations.

Forward-Looking Statements and Risks Affecting the Company

     The statements  contained in this Report on Form 10-QSB that are not purely
historical are  "forward-looking  statements"  within the meaning of the Private
Securities  Litigation  Reform  Act of 1995 and  Section  21E of the  Securities
Exchange  Act.  These  statements  regard  the  Company's  expectations,  hopes,
beliefs,  anticipations,  commitments,  intentions and strategies  regarding the


                                        8
<PAGE>

future.  They  may be  identified  by the  use  of  words  or  phrases  such  as
"believes,"  "expects,"   "anticipates,"  "should,"  "plans,"  "estimates,"  and
"potential,"  among  others.  Forward-looking  statements  include,  but are not
limited to,  statements  contained in  Management's  Discussion  and Analysis of
Financial Condition and Results of Operations  regarding the Company's financial
performance, revenue and expense levels in the future and the sufficiency of its
existing assets to fund future  operations and capital  spending  needs.  Actual
results  could  differ   materially  from  the  anticipated   results  or  other
expectations  expressed  in such  forward-looking  statements  for  the  reasons
detailed  in the  Company's  Annual  Report  on Form  10-K  under  the  headings
"Description  of Business"  and "Risk  Factors."  The fact that some of the risk
factors may be the same or similar to the Company's  past reports filed with the
Securities  and  Exchange  Commission  means only that the risks are  present in
multiple periods.  The Company believes that many of the risks detailed here and
in the Company's SEC filings are part of doing business in the industry in which
the  Company  operates  and  competes  and will likely be present in all periods
reported.  The fact that  certain  risks are  endemic to the  industry  does not
lessen their  significance.  The  forward-looking  statements  contained in this
report  are  made as of the  date of this  Report  and the  Company  assumes  no
obligation  to update  them or to update the reasons  why actual  results  could
differ from those projected in such  forward-looking  statements.  Among others,
risks and  uncertainties  that may affect  the  business,  financial  condition,
performance, development, and results of operations of the Company include:

 .  rigorous  government  scrutiny and  regulation  of the products and planned
products of the Company;
 . potential effects of adverse  publicity  regarding ozone and related
technologies  or  industries;
 . failure of the Company to sustain or manage  growth  including  the failure to
continue  to develop  newproducts;  and
 . the ability of the Company to obtain financing necessary to pursue its
business plan.

                                        9
<PAGE>


                           Part II - Other Information

Item 2 - Changes in Securities and Use of Proceeds

Unregistered  sales of equity  securities during quarter (other than in reliance
on Regulation S).

         During the period  covered by this report,  the Company  issued  equity
securities that were not registered under the Securities Act of 1933, as amended
(the "Act").  Specifically,  the Company  issued 222,222  restricted  shares for
$15,555,  to an officer and  director.  The Company  issued such shares  without
registration under the Act in reliance on exemptions from registration under the
Section 4(2) and/or 3(b), as well as Regulation D promulgated under the Act. The
shares of common stock were issued as restricted securities and the certificates
representing  such shares were stamped with a restrictive  legend to prevent any
resale without  registration  under the Act or compliance with an exemption.  In
each case, the recipients of the securities were accredited  investors,  as that
term is  defined by Rule 501 under the Act,  because of their  current or former
affiliation with the Company.

Item 6 - Exhibits and Reports on Form 8-K

         (a)      Exhibits

                  Exhibit No.               Description

                  27                        Financial Data Schedule

                                       10
<PAGE>


                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                    MEDIZONE INTERNATIONAL, INC.
                                                    (Registrant)

Date: February 7, 2000                                 /s/ Edwin G. Marshall
                                                     ---------------------------
                                                     Edwin G. Marshall, Chairman
                                                     and Chief Executive
                                                     Officer (Principal
                                                     Executive Officer)



Date: February 7, 2000                                 /s/ Kevin R. Andersen
                                                      --------------------------
                                                      Kevin R. Andersen, Chief
                                                      Financial Officer
                                                      (Principal Accounting
                                                      Officer)



February 4, 2000


                                       11