UNITED STATESSECURITIES AND EXCHANGE
COMMISSIONWASHINGTON, D.C. 20549


FORM
10-QSB

| | (Mark
      One) |                                                                                                                                                         
| | ---------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | x                | QUARTERLY REPORT PURSUANT
      TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934 FOR THE
      QUARTERLY PERIOD ENDEDMARCH 31, 2002
      OR
| | o                | TRANSITION REPORT UNDER SECTION 13 OR
      15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION FROM
      _______ TO ________.             

COMMISSION FILE NUMBER
  000-33365

CREATIVE TECHNOLOGIES HOLDINGS, INC.  (Name of Small Business Issuer in
its charter)   Nevada
      
      (State or
      other jurisdiction of incorporation or organization)
    88-0409146
      (I.R.S.
      EmployerIdentification No.)1800 Avenue of the Stars, Suite 600
            Los
      Angeles, California
      (Address of
      principal executive offices)
    90067
      (Zip
      code)Registrant's telephone
        number: (310) 407-5175Indicate by check mark
      whether the registrant (1) has filed all reports required to be filed by
      Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
      preceding 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 o State the number of shares
      outstanding of each of the issuer's classes of common equity, as of the
      latest practicable date:As of March 31, 2002, there were outstanding 24,629,377 shares of the
        Registrant's Common Stock, $0.001 par value.Transitional Small
      Business Disclosure Format:
      Yes
      o    No x


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- TABLE OF CONTENTS -

|PART I. FINANCIAL INFORMATION
|-----------------------------
|                             
|                             
|                             
|                             
|PART II -- OTHER INFORMATION 
|                             
|SIGNATURES                   







-2-

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PART I

FINANCIAL
INFORMATION

ITEM 1. FINANCIAL STATEMENTS

---















CREATIVE TECHNOLOGIES
  HOLDINGS INC. AND SUBSIDIARIES
  (Development Stage Companies)
  CONSOLIDATED FINANCIAL STATEMENTS AND
  SUPPLEMENTARY INFORMATION
  March 31, 2002
  (Unaudited)















-3-

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CREATIVE TECHNOLOGIES
  HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)
  CONSOLIDATED FINANCIAL STATEMENTS
  March 31, 2002
  (Unaudited)



TABLE OF CONTENTS

| |                                              |                                                                                  | PAGE(S) | 
| | -------------------------------------------- | -------------------------------------------------------------------------------- | ------- | 
| | INDEPENDENT
      ACCOUNTANTS' REVIEW REPORT | 2                                                                                |        
| |                                              |                                                                                  |         | 
| | CONSOLIDATED FINANCIAL
      STATEMENTS      |                                                                                  |        
| |                                              |                                                                                  |         | 
| |                                              | Balance Sheets                                                                   | 3       | 
| |                                              |                                                                                  |         | 
| |                                              | Statements of Operations                                                         | 4       | 
| |                                              |                                                                                  |         | 
| |                                              | Statements of Changes
      in Stockholders' Equity                              | 5       | 
| |                                              |                                                                                  |         | 
| |                                              | Statements of Cash
      Flows                                                   | 6       | 
| |                                              |                                                                                  |         | 
| |                                              | Notes to Financial
      Statements                                              | 7 - 14  | 
| |                                              |                                                                                  |         | 
| | SUPPLEMENTARY INFORMATION                    |                                                                                  |        
| |                                              |                                                                                  |         | 
| |                                              | Consolidated
      Schedules of General, Administrative and Development Expenses | 15      | 
| |                                              |                                                                                  |         | 
| |                                              |                                                                                  |         | 



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-4-

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JOSEFINA
  C. DE LA CRUZ, C.P.A.A Professional Corporation

| | Josefina C. de
      la Cruz, CPA
      Rebecca Q. Masinsin, CPA
      Tomothy Vo, CPA
      Marissa B. Zacarias, Operations Manager                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2700 N Main
        Street, Suite 900
        Santa Ana, CA 92705
        Tel. No. (714) 558-8703
        Fax No. (714) 558-7940 | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------- | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                 
| | INDEPENDENT
        ACCOUNTANTS' REVIEW REPORT
      To the Board of Directors 
        Creative Technologies Holdings, Inc. and Subsidiaries
        Carson City, Nevada
      We have reviewed the accompanying consolidated balance sheet of Creative
        Technologies Holdings, Inc., and Subsidiaries (Development Stage Companies),
        as of March 31, 2002, and the related consolidated statements of operations,
        changes in stockholders' equity and cash flows for the three months then
        ended, in accordance with Statements on Standards for Accounting and Review
        Services issued by the American Institute of Certified Public Accountants.
        All information included in these consolidated financial statements is
        the representation of the management of Creative Technologies Holdings,
        Inc. and Subsidiaries.
      A review consists principally of inquiries of Company personnel and analytical
        procedures applied to financial data. It is substantially less in scope
        than an audit in accordance with auditing standards generally accepted
        in the United States of America, the objective of which is the expression
        of an opinion regarding the consolidated financial statements taken as
        a whole. Accordingly, we do not express such an opinion.
      Based on our review, we are not aware of any material modifications that
        should be made to the accompanying consolidated financial statements in
        order for them to be in conformity with accounting principles generally
        accepted in the United States of America.
      Our review was made for the purpose of expressing limited assurance that
        there are no material modifications that should be made to the consolidated
        financial statements in order for them to be in conformity with accounting
        principles generally accepted in the United States of America. The information
        included in the accompanying consolidated schedules of general, administrative
        and development expenses is presented only for supplementary analysis
        purposes. Such information has been subjected to the inquiry and analytical
        procedures applied in the review of the basic consolidated financial statements,
        and we are not aware of any material modifications that should be made
        to it.
      The accompanying consolidated financial statements have been prepared
        assuming the Company will continue as a going concern. As discussed in
        Note 12 to the consolidated financial statements, the Company has no established
        source of revenue. This raises substantial doubt about its ability to
        continue as a going concern. The consolidated financial statements do
        not include any adjustments that might result from the outcome of this
        uncertainty.
      
      
      Josefina C. de la Cruz, CPA
        A Professional Corporation
        Santa Ana, California
      May 14, 2002 |                                                                                                                                 
| | MEMBER
        - AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' 
        SEC PRACTICE GROUP 
        CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS' 
        TAX PRACTICE GROUP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                 

1

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-5-

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CREATIVE
  TECHNOLOGIES HOLDINGS INC. AND SUBSIDIARIES
  (Development Stage Companies)
  CONSOLIDATED BALANCE SHEETS

|                                                |                                                                                                                                     |                                          | March
        31,
        2002
        (Unaudited) | December
        31,
        2001
        (Audited)
|----------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | -------------------------------------------------- | ---------------------------------------------------
|ASSETS                                         
|CURRENT
      ASSETS                            |                                                                                                                                     |                                         
|                                                | Cash                                                                                                                                | $                                        | 1,371                                              | $                                                  
|                                                | Advances
      to employees                                                                                                         | 42,429                                   | 30,831                                            
|                                                |                                                                                                                                     | Total
      current assets               | 43,800                                             | 39,487                                             
|                                                |                                                                                                                                     |                                          |                                                    |                                                    
|PROPERTY
      & EQUIPMENT, NET (Note 4)        | 53,698                                                                                                                              | 59,948                                  
|OTHER
      ASSETS                              |                                                                                                                                     |                                         
|                                                | Investment
      - others (Note 3)                                                                                                  | 717,012                                  | 717,012                                           
|                                                | Receivables
      - others                                                                                                          | 239,620                                  | 232,620                                           
|                                                |                                                                                                                                     | Total
      other assets                 | 956,632                                            | 949,632                                            
|TOTAL
      ASSETS                              | $                                                                                                                                   | 1,054,130                                | $                                                  | 1,049,067                                          
|                                                |                                                                                                                                     |                                          |                                                    |                                                    
|                                                |                                                                                                                                     |                                          |                                                    |                                                    
|LIABILITIES
        AND STOCKHOLDERS' DEFICIT  
|CURRENT
      LIABILITIES                       |                                                                                                                                     |                                         
|                                                | Accounts
      payable                                                                                                              | $                                        | 478,430                                            | $                                                  
|                                                | Payroll
      taxes payable                                                                                                         | 10,751                                   | 8,822                                             
|                                                | Due
      to affiliates                                                                                                             | 71,345                                   | 70,345                                            
|                                                | Accrued
      liabilites                                                                                                            | 87,460                                   | 77,560                                            
|                                                | Credit
      line payable                                                                                                           | 52,263                                   | 51,100                                            
|                                                | Due
      to investors                                                                                                              | 99,217                                   | 30,471                                            
|                                                |                                                                                                                                     | Total
      current liabilities (Note 5) | 799,466                                            | 711,904                                            
|MINORITY
      INTEREST (Note 7)                | -                                                                                                                                   | -                                       
|STOCKHOLDERS'
      DEFICIT (Note 8)            |                                                                                                                                     |                                         
|                                                | Common Stock, $0.001
        par value; 25,000,000 shares
             authorized; 24,629,377 shares issued and
        outstanding | 24,629                                   | 24,629                                            
|                                                | Paid-in
      capital                                                                                                               | 3,557,650                                | 3,557,650                                         
|                                                | Accumulated
      deficit during development stage                                                                                  | (3,327,615)                              | (3,245,116)                                       
|                                                |                                                                                                                                     | Total
      stockholders' equity         | 254,664                                            | 337,163                                            
|                                                |                                                                                                                                     |                                          |                                                    |                                                    
|TOTAL
      LIABILITIES & STOCKHOLDERS' DEFICIT | $                                                                                                                                   | 1,054,130                                | $                                                  | 1,049,067                                          
|                                                |                                                                                                                                     |                                         

See accompanying notes
  and independent accountants' review report.

3

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-6-

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CREATIVE
  TECHNOLOGIES HOLDINGS INC. AND SUBSIDIARIES
  (Development Stage Companies)
  CONSOLIDATED STATEMENTS OF OPERATIONS
  For The Period December 6, 1996 (Date of Inception) to March 31, 2002
  (Unaudited)

|                                                              | Cumulative
        from December 6, 1996
        (Date of Inception)
        to March 31, 2002 | For
        the Three Months Ended
|------------------------------------------------------------- | ---------------------------------------------------------------------------------------------- | ----------------------------------
|March
        31, 2002                                        | March
        31, 2001                                                                        
|                                                              |                                                                                                |                                   
|REVENUE                                                       | $                                                                                              | -                                 
|                                                             
|EXPENSES                                                      |                                                                                                |                                   
|                                                              | General,
      administrative and development expenses                                         | 3,065,259                         
|                                                              | Depreciation                                                                                   | 72,737                            
|                                                              | Total
      Operating Expenses                                                                 | 3,137,996                         
|NET OPERATING
      LOSS                                      | (3,137,996)                                                                                    | (81,526)                          
|                                                              |                                                                                                |                                   
|OTHER INCOME
      (EXPENSES)                                 |                                                                                                |                                   
|                                                              | Interest
      income                                                                          | 1,350                             
|                                                              | Interest
        expense                                                                       | (12,573)                          
|                                                              | Loss
        on disposal of assets (Note 6)                                                    | (164,408)                         
|                                                              | Loss
        in investments                                                                    | (67,988)                          
|                                                              | Total
        other income (expenses)                                                          | (243,619)                         
|NET
        LOSS BEFORE MINORITY INTEREST                     | (3,381,615)                                                                                    | (82,499)                          
|MINORITY
        INTEREST'S SHARE OF NET LOSS (Note 7)        | 54,000                                                                                         | -                                 
|NET
        LOSS FOR THE PERIOD                               | $                                                                                              | (3,327,615)                       
|                                                              |                                                                                                |                                   
|NET
        LOSS PER COMMON SHARE                             |                                                                                                | $                                 
|                                                              |                                                                                                |                                   
|WEIGHTED
        AVERAGE NUMBER
             OF COMMON SHARES |                                                                                                | 24,629,377                        

See accompanying notes
  and independent accountants' review report

4

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-7-

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CREATIVE
  TECHNOLOGIES HOLDINGS INC. AND SUBSIDIARIES
  (Development Stage Companies)
  CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
  For the Period December 6, 1996 (Date of Inception) to March 31, 2002

|                                                                                                                                                              | Common
        Stock | Paid-in
        Capital | Accumulated
        Deficit | Total
        Stockholders'
        Equity
|------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ----------------------- | --------------------------- | ------------------------------------------
|Shares                                                                                                                                                        | Amount              
|                                                                                                                                                              |                      |                         |                             |                                           
|Initial
      issuance of stocks on December 6, 1996                                                                                                          | 21,000               | $                       | 2,100                       | $                                         
|Net
      loss for the year ended December 31, 1996                                                                                                           |                      |                         |                             | (2,100)                                   
|                                                                                                                                                              |                      |                         |                             |                                           
|Balances,
      December 31, 1996                                                                                                                             | 21,000               | 2,100                   | -                           | (2,100)                                   
|Net loss
      for the year ended December 31, 1997                                                                                                           |                      |                         |                             | -                                         
|                                                                                                                                                              |                      |                         |                             |                                           
|Balances,
      December 31, 1997                                                                                                                             | 21,000               | 2,100                   | -                           | (2,100)                                   
|Net loss
      for the year ended December 31, 1998                                                                                                           | -                    | -                       | -                           | -                                         
|                                                                                                                                                              |                      |                         |                             |                                           
|Balances,
      December 31, 1998                                                                                                                             | 21,000               | 2,100                   | -                           | (2,100)                                   
|November
      29,1999
           Adjustment from No Par Value
           to $0.001 on 21,000 shares                                                          | -                    | (2,079)                 | 2,079                       | -                                         
|November
      29, 1999
           Forward Stock Split 1:100                                                                                                  | 2,079,000            | 2,079                   | (2,079)                     | -                                         
|Net loss
      year ended
           December 31, 1999                                                                                                        | -                    | -                       | -                           | (350)                                     
|                                                                                                                                                              |                      |                         |                             |                                           
|Balance,
      December 31, 1999                                                                                                                              | 2,100,000            | 2,100                   | -                           | (2,450)                                   
|Issuance
      of 8,500,000 shares of
           common stock in exchange
           for 500,000 common shares of
           a Subsidiary on October 25, 2000 | 8,500,000            | 8,500                   | 491,500                     | -                                         
|Issuance
      of 2,000,000 shares in
           exchange for cancellation of
           $500,000 debt on
           November 8, 2000                         | 2,000,000            | 2,000                   | 498,000                     | -                                         
|Net
      loss for the year ended
           December 31, 2000                                                                                                | -                    | -                       | -                           | (1,464,935)                               
|                                                                                                                                                              |                      |                         |                             |                                           
|Balance,
      December 31, 2000                                                                                                                              | 12,600,000           | 12,600                  | 989,500                     | (1,467,385)                               
|Issuance
      of 1,600,000 shares of
           exchange for cancellation of
           $1,537,242 debt on June 30, 2001                                     | 1,600,000            | 1,600                   | 1,535,642                   | -                                         
|Issuance
      of 7,850,000 shares in
           exchange for cancellation of
           $785,000 debt on
           September 30, 2001                       | 7,850,000            | 7,850                   | 777,150                     | -                                         
|Issuance
      of 2,579,377 shares in exchange for
           cancellation of $257,937 debt on
           December 31, 2001                                   | 2,579,377            | 2,579                   | 255,358                     | -                                         
|Net loss
      for the year ended 
            December 31, 2001                                                                                              | -                    | -                       | -                           | (1,777,731)                               
|                                                                                                                                                              |                      |                         |                             |                                           
|Balances,
      December 31, 2001                                                                                                                             | 24,629,377           | 24,629                  | 3,557,650                   | (3,245,116)                               
|Net loss
      for three months ended March 31, 2002
           (Unaudited)                                                                                   | -                    | -                       | -                           | (82,499)                                  
|                                                                                                                                                              |                      |                         |                             |                                           
|Balances,
      March 31, 2002                                                                                                                                | 24,629,377           | $                       | 24,629                      | $                                         
|                                                                                                                                                              |                      |                         |                             |                                           

See accompanying notes
  and independent accountants' review report. 
  5

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-8-

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CREATIVE
  TECHNOLOGIES HOLDINGS INC. AND SUBSIDIARIES
  (Development Stage Companies)
  CONSOLIDATED STATEMENTS OF CASH FLOWS
  For the Period December 6, 1996 (Date of Inception) to March 31, 2002
  (Unaudited)

|                                                                                           | Cumulative
        from
        December 6, 1996
        (Date of Inception)
        to March 31, 2002 | For
        three months ended
|------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------ | ------------------------------
|March
        31, 2002                                                                     | March
        31, 2001                                                                                
|                                                                                           |                                                                                                        |                               
|CASH FLOWS FROM
      OPERATING ACTIVITIES                                                 |                                                                                                        |                               
|Net
      loss                                                                             | $                                                                                                      | (3,327,615)                   
|Adjustment
      to reconcile net loss to net cash used
           in operating activities |                                                                                                        |                               
|Depreciation
      and amortization                                                        | 72,737                                                                                                 | 6,251                         
|Loss
      on asset disposal                                                               | 164,408                                                                                                | -                             
|Loss
      in other investments                                                            | 67,988                                                                                                 | -                             
|Minority
      interest in net loss of subsidiaries                                        | (54,000)                                                                                               | -                             
|Decrease
      (increase) in:                                                              |                                                                                                        |                               
|Advances
      to employees                                                                | (42,429)                                                                                               | (798)                         
|Other
      receivables                                                                    | (239,620)                                                                                              | (10,800)                      
|Increase
      in:                                                                         |                                                                                                        |                               
|Accounts
      payable                                                                     | 478,429                                                                                                | 4,823                         
|Accrued
      liabilities                                                                  | 87,460                                                                                                 | 9,900                         
|Payroll
      taxes payable                                                                | 10,751                                                                                                 | 1,929                         
|                                                                                           |                                                                                                        |                               
|NET
        CASH USED BY OPERATING ACTIVITIES                                              | (2,781,891)                                                                                            | (71,194)                      
|                                                                                           |                                                                                                        |                               
|CASH FLOWS FROM
      INVESTING ACTIVITIES                                                 |                                                                                                        |                               
|Investment
      - others                                                                  | (785,000)                                                                                              | -                             
|Principal
      payments on capital lease                                                  | (9,995)                                                                                                | -                             
|Purchase
      of property and equipment                                                   | (236,842)                                                                                              | -                             
|                                                                                           |                                                                                                        |                               
|NET
        CASH USED BY IN INVESTING ACTIVITIES                                           | (1,031,837)                                                                                            | -                             
|                                                                                           |                                                                                                        |                               
|CASH FLOWS FROM
      FINANCING ACTIVITIES                                                 |                                                                                                        |                               
|Proceeds
      from issuance of common stock                                               | 3,582,279                                                                                              | -                             
|Increase
      (decrease) in due to affiliates                                             | 170,562                                                                                                | 62,746                        
|Proceeds
      of notes payable                                                            | -                                                                                                      | -                             
|Proceeds
      from line of credit                                                         | 52,263                                                                                                 | 1,163                         
|Proceeds
      from capital lease                                                          | 9,995                                                                                                  | -                             
|                                                                                           |                                                                                                        |                               
|NET
        CASH USED IN FINANCING ACTIVITIES                                              | 3,815,099                                                                                              | 63,909                        
|                                                                                           |                                                                                                        |                               
|NET INCREASE (DECREASE)
      IN CASH                                                      | 1,371                                                                                                  | (7,285)                       
|                                                                                           |                                                                                                        |                               
|CASH AT BEGINNING
      OF PERIOD                                                          | -                                                                                                      | 8,656                         
|                                                                                           |                                                                                                        |                               
|CASH AT END OF PERIOD                                                                      | $                                                                                                      | 1,371                         
|                                                                                           |                                                                                                        |                               

See accompanying notes
  and independent accountants' review report.

6

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-9-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
  March 31, 2002(Unaudited)

|NOTE 1 - ORGANIZATION HISTORY
        AND BASIS OF CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------
|                                                                                    
|NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                 
|                                                                                    
|                                                                                    

| | Method of Accounting                                                                                                                                 
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | The Company prepares its financial statements on the accrual method of
        accounting, recognizing income when earned and expenses when incurred.

6

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-10-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  March 31, 2002(Unaudited)

| | Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | The preparation of financial statements in conformity
      with generally accepted accounting principles requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of the financial statements and the reported amounts of revenues and expenses
      during the reporting period. Actual results could differ from those estimates.
|
| | Cash and Cash
      Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | The Company considers all highly liquid investments
      with maturity of three months or less to be cash equivalents for purpose
      of reporting cash flows.                                                                                                                                                                                                                                                                                                              
|
| | Property and
      equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | Property, plant and equipment are stated at cost. Depreciation
      is computed using the straight-line method over the estimated useful lives
      of the related assets, less residual value where appropriate as follows:                                                                                                                                                                                                                                                 
| | Software                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | Office
      Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | Furniture                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | Leasehold
      Improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | Income
      taxes are provided for using the liability method of accounting in accordance
      with Statement of Financial Accounting Standards No. 109 (SFAS 109), "Accounting
      for Income Taxes." A deferred tax asset or liability is recorded for
      all temporary differences between financial and tax reporting. Deferred
      tax expense (benefit) results from the net change during the year of deferred
      tax assets and liabilities.

| | Reporting on Costs of Start-Up Activities                                                                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | Statement of Position 98-5 (SOP 98-5), "Reporting
      on the Costs of Start-Up Activities" provides guidance on the financial
      reporting of start-up and organization costs. It requires most costs of
      start-up activities and organization costs to be expended as incurred. With
      the adoption of SOP 98-5, there has been little or no effect on the company's
      financial statements.

8

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-11-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
  March 31, 2002(Unaudited)

|Research and Development Costs
|------------------------------
|                              
|                              

|Loss Per Share
|--------------
|              
|              

|Year End
|--------
|        
|        

|NOTE 3 - INVESTMENT IN OTHER COMPANY
|------------------------------------
|                                    
|                                    

9

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-12-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
  March 31, 2002(Unaudited)

| | Cyber Entertainment, N.V. holds a gaming license from the territory of
        Curacao. At March 31, 2002, all the above entities have no operations.
        As of March 31, 2002, the adjustment on the investment account for the
        company's 49% share of the loss is $67,988. The carrying value of the
        investment account at March 31, 2002 is $717,012.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE 4 - PROPERTY AND EQUIPMENT, NET
|------------------------------------
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    

|NOTE 5 - CURRENT LIABILITIES
|----------------------------
|                            
|                            
|                            

|                        | March
        31, 2002 |                 | December
        31, 2001
|----------------------- | ---------------------- | --------------- | -------------------------
|                        |                       
|CTHI                    | CTI                    | CTEGI           | TOTAL                    
|                        |                       
|Accounts payable        | $3,581                 | $
        2,076 | $ 472,773                
|Payroll taxes payable   | 1,486                  | 443             | 8,822                    
|Accrued liabilites      | 13,500                 | -               | 73,960                   
|Due to affiliates       | 1,350                  | 69,995          | -                        
|Due to investors        | 65,270                 | 33,947          | -                        
|Notes payable           | -                      | -               | -                        
|Credit line payable *** | -                      | -               | 52,263                   
|                        |                        |                
|Total                   | $ 85,187               | $ 106,461       | $ 607,818                
|                        |                        |                



|***CTEGI has a $52,263 promissory note payable
      on demand in the form of a line of credit with a financial institution.
      The line carries a variable rate of interest at the Wall Street Journal
      prime rate plus 1.00% per annum. Monthly payment requirements on the line
      consist of accrued interest only. As of March 31, 2002, the Company owed
      $52,263 against the credit line and is personally guaranteed by an officer
      of CTEGI.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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-13-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
  March 31, 2002(Unaudited)

|NOTE 6 - LOSS ON DISPOSITION OF PROPERTY AND EQUIPMENT
|------------------------------------------------------
|                                                      

|NOTE 7 - MINORITY INTEREST
|--------------------------
|                          
|                          
|                          

|
|
|
|
|
|
|

| | The majority interest was allocated the entire accumulated deficit attributed
        to the minority interest in excess of the balance of the capital stock
        pursuant to the Accounting Research Bulletin No. 51 (ARB 51), paragraph
        15. If future earnings will materialize, the majority interest will be
        credited to the extent of such losses previously absorbed.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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-14-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
  March 31, 2002(Unaudited)

|NOTE 8 - STOCKHOLDERS'
      EQUITY
|-----------------------------------
|                                   
|                                   
|                                   
|                                   
|                                   
|                                   

12

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-15-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
  March 31, 2002

|NOTE 9 - INCOME
      TAXES
|---------------------------
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           
|                           

|NOTE 10 - SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
|-----------------------------------------------------------
|                                                           

|NOTE 11 - COMMITMENTS
|---------------------
|                     

13

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-16-

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CREATIVE
  TECHNOLOGIES HOLDINGS, INC. AND SUBSIDIARIES
  (Development Stage Companies)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
  March 31, 2002

|NOTE 12 - GOING CONCERN
|-----------------------
|                       



14

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-17-

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CREATIVE TECHNOLOGIES HOLDINGS
  INC. AND SUBSIDIARIES
  (Development Stage Companies)
  CONSOLIDATED SCHEDULES OF GENERAL, ADMINISTRATIVE AND DEVELOPMENT EXPENSES
  For the Period December 6, 1996 (Date of Inception) to March 31, 2002
  (Unaudited)

|                           | Cumulative
        from 
        December 6, 1996
        (Date of Inception)
        to March 31, 2002 | For
        the Three Months Ended
|-------------------------- | ------------------------------------------------------------------------------------------------------- | ----------------------------------
|March
        31, 2002     | March
        31, 2001                                                                                 
|                           |                                                                                                         |                                   
|Salaries
      and wages   | $                                                                                                       | 1,161,550                         
|Professional
      fees    | 843,750                                                                                                 | 62,717                            
|Rent                       | 218,925                                                                                                 | 5,101                             
|Travel
      & promotions  | 186,183                                                                                                 | -                                 
|Recruiting                 | 128,989                                                                                                 | -                                 
|Development
      expenses | 114,796                                                                                                 | -                                 
|Office
      expenses      | 100,548                                                                                                 | 2,850                             
|Bad debts                  | 85,409                                                                                                  | -                                 
|Telephone                  | 58,070                                                                                                  | 925                               
|Taxes and
      licenses   | 51,104                                                                                                  | 2,342                             
|Computer
      expenses    | 47,025                                                                                                  | -                                 
|Insurance                  | 42,635                                                                                                  | (5,216)                           
|Marketing expenses         | 19,375                                                                                                  | -                                 
|Directors'
      fees      | 6,900                                                                                                   | 2,700                             
|                           |                                                                                                         |                                   
|                           | $                                                                                                       | 3,065,259                         
|                           |                                                                                                         |                                   

See accompanying notes
  and independent accountants' review report.

15

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-18-  (Return to top.)


|ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS
      All statements, trend analysis and other
        information contained in this Report relative to markets for the products
        of Creative Technologies Holdings, Inc. ("Company" or "Registrant")
        and trends in revenues, gross margin and anticipated expense levels, as
        well as other statements including words such as "believe,"
        "anticipate," "expect," "estimate," "plan"
        and "intend" and other similar expressions, constitute forward-looking
        statements. Those forward-looking statements are subject to business and
        economic risks, and the Company's actual results of operations may differ
        from those contained in the forward-looking statements. The following
        discussion of the financial condition and results of operations of the
        Company should also be read in conjunction with the Financial Statements
        and Notes related thereto included elsewhere in this Report.
      (a) Revenues
      The three months ended March 31, 2002 did
        not generate any revenues for the Company. There were no revenues for
        the same period in year 2001. The Company incurred a net operating loss
        of $81,526 during the first quarter of 2002, compared to $1,087,048 during
        the first quarter of 2001. The operating loss and lack of revenues are
        due to the development stage nature of the Company.
      The Company does not have an established
        source of revenues. Current sources of funds for product development and
        operating costs are periodic funding of and advances from investors. There
        are no known trends, events or uncertainties that have or are reasonably
        likely to have a material impact on the Company's net sales or revenues
        from continuing operations, being a development stage company.
      (b) General,
        Administrative and Development Expenses
      The Company incurred general, administrative
        and development expenses in the amount of $75,275 for the three months
        ended March 31, 2002, compared to $1,066,159 for the same period in year
        2001. The biggest expense reduction was in salaries and wages, from $457.889
        in first quarter 2001 to $3,856 in first quarter 2002. As disclosed in
        prior reports, the Company suspended product development and retrenched
        product developers as of April 2001.
      For the first quarter of year 2002, professional
        fees in the amount of $62,717 comprised approximately 83.3% of total general,
        administrative and development expenses. For the same period in year 2001,
        professional fees in the amount of $334,161 comprised approximately 31.3%
        of general, administrative and development expenses. Professional fees
        were mainly in the form of legal and accounting expenses to file registration
        statement (and amendments thereto) and to comply with SEC reporting requirements.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







-19-

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|(c) Depreciation
        and Amortization
      Depreciation and amortization expense decreased
        from $20,889 during the first quarter of year 2001 to $6,251 during the
        first quarter of year 2002. The decrease was due to disposition of depreciable
        office furniture and equipment. See Note 6 of Consolidated Financial Statements
        and Supplementary Information (Unaudited) as of March 31, 2002, which
        is filed with this report.
      (d) Net
        Loss per Share
      Net loss per common share was at $0 during
        the first quarter of 2002, compared to a net loss per common share of
        $0.08 during the same period in year 2001. The decrease was attributable
        mainly to additional issuance of common shares by Issuer and decrease
        in net loss.
      (e) Liquidity
      As of March 31, 2002, the Company had an
        accumulated deficit during development stage in the amount of $3,327,615.
        Investors of the Company provided funds to the Company for its development
        operations in exchange for equity.
      For the three months ended March 31, 2002,
        the net cash provided by financing activities amounted to $62,746. Investors
        had advanced funds for day-to-day operations and product development.
        These advances were recorded as note payable obligations of the Company.
        The payable balances, as in prior periods, may be paid off in the form
        of additional common shares. The dilution to common shareholders is dependent
        on the issue price and the amount of advances converted into common shares.
      The Company and its subsidiaries do not
        have any internal sources of liquidity. In the short term, the Company's
        liquidity depends on further capital infusion from investors. In the long
        term, the Company's liquidity may improve depending on the success of
        the product development of its operating subsidiary, Creative Technology
        and Entertainment Group, Inc.
      The Company faces considerable risks at
        each step in its strategic business plan. Such things as technology, societal
        and economic changes, cost overruns, lack of interest, and shortfalls
        in funding due to the Company's difficulty in raising additional capital
        in the equity securities market all may have an impact on the Company.
      There are no other known trends, events
        or uncertainties that have or are reasonably likely to have a material
        impact on the Company's short-term or long-term liquidity.
      (f) Capital
        Expenditures
      There are no expected material capital
        expenditures within the next six months.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------






-20-

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|PART II
        OTHER INFORMATION
      ITEM 1. LEGAL PROCEEDINGS
      None
      ITEM 2. CHANGES IN THE RIGHTS OF THE COMPANY'S SECURITY
        HOLDERS
      None
      ITEM 3. DEFAULTS UPON SENIOR SECURITIES
      None
      ITEM 4. SUBMISSION OF MATTERS TO VOTE BY SECURITY
        HOLDERS
      None
      ITEM 5. OTHER INFORMATION
      None
      ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
      (a) The Articles of Incorporation and by-laws
        of the Company appear in Form 10SB12G filed February 7, 2000 and are incorporated
        herein by reference.
      (b) One Form 8-K was filed (February 1,
        2002) during the quarter for which the Report is filed.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SIGNATURE

|Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the undersigned
      thereunto duly authorized.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Dated: May 20, 2002                                                                                                                                                                                       





-21-

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