**U.S.
      SECURITIES AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10QSB**







x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
      1934 for the quarterly period ended March 31, 2007





o Transition report under Section 13 or 15(d) of the Securities Exchange Act
      of
      1934





For
      the
      transition period from ____________ to ______________





For
      the
      Period Ended March 31, 2007





Commission
      file number 000-27727


**SAVI
      MEDIA GROUP, INC.**


(Name
      of
      Small Business Issuer in Its Charter)





Nevada
            91-1766174(State
                of Incorporation)
            (IRS
                Employer Identification No.)





12707
      High Bluff Drive, Suite 200


San
      Diego, CA 92130





(Address
      of Principal Executive Offices)





(858)
      350-4207





Issuer's
      Telephone Number





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 o





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).





Yes o No x





As
      of May
      19, 2007, the Company had 995,456,564 shares of its par value $0.001 common
      stock issued and outstanding.





Transitional
      Small Business Disclosure Format (check one):





Yes o No x















**SAVI
      MEDIA GROUP, INC.**


**(A
      Development Stage Company)**





**Quarterly
      Report on Form 10-QSB for the**


**Quarterly
      Period Ending March 31, 2007**








Table
      of
      Contents





PART
                I. FINANCIAL INFORMATIONItem
                1. Unaudited Condensed Financial StatementsConsolidated
                Balance Sheets:March
                31, 2007 and December 31, 2006
            2Consolidated
                Statements of Operations:For
                the three months ended March 31, 2007 and 2006 andfor
                the period from inception, August 13, 2002, to March 31,
                2007
            3Consolidated
                Statement of Stockholders’ DeficitFor
                the three months ended March 31, 2007
            4Consolidated
                Statements of Cash Flows:For
                the three months ended March 31, 2007 and 2006 andfor
                the period from inception, August 13, 2002, to March 31,
                2007
            7Notes
                to Unaudited Consolidated Financial Statements
            8Item
                2. Management's Discussion and Analysis of Financial Condition and
                Results
                of Operations
            14Item
                3. Controls and Procedures
            18PART
                II. OTHER INFORMATIONItem
                1. Legal Proceedings
            18Item
                2. Changes in Securities
            18Item
                3. Defaults Upon Senior Securities
            18Item
                4. Submission of Matters to a Vote of Security Holders
            19Item
                5. Other Information
            19Item
                6. Exhibits
            19SIGNATURES
            20
















PART
      I. FINANCIAL INFORMATION







**SAVI
                  MEDIA GROUP, INC.****A
                  Corporation in the Development Stage****CONSOLIDATED
                  BALANCE SHEET****March
                  31, 2007 and December 31, 2006**March
                  31,
              December
                  31,2007
              2006ASSETSCurrent
                  assets:Cash
                  and cash equivalents
              $
                  -
              $
                  1,088Total
                  current assets
              -
              1,088Equipment,
                  net
              16,119
              202,401Deferred
                  Financing Costs
              72,622
              86,371Total
                  assets
              $
                  88,741
              $
                  289,860LIABILITIES
                  AND STOCKHOLDERS' DEFICITCurrent
                  liabilities:Bank
                  Overdraft
              $
                  -
              $
                  3,631Convertible
                  debt
              879,766
              705,864Accounts
                  payable and accrued liabilities
              1,582,487
              882,215Accounts
                  payable assumed in recapitalization
              159,295
              159,295Accrued
                  Registration Rights Penalties Payable
              148,200
              0Contingent
                  Registration Rights Penalties Payable
              341,588
              0Derivative
                  Liabilities - Embedded Derivatives
              378,198
              3,459,980Derivative
                  Liabilities - Warrants
              5,316,802
              16,101,795Total
                  current liabilities
              8,806,336
              21,312,780Commitments
                  and contingenciesStockholders'
                  deficit:Series
                  A convertible preferred stock; $0.001 par value,10,000,000
                  shares authorized, issued and outstanding
              10,000
              10,000Series
                  B convertible preferred stock; $0.001 par value,10,000,000
                  shares authorized, none issued and outstanding
              -
              -Series
                  C convertible preferred stock; $0.001 par value,10,000,000
                  shares authorized, 4,915,000 issued andoutstanding
                  at March 31, 2007 and December 31, 2006
              4,915
              4,915Common
                  stock: $0.001 par value, 6,000,000,000 sharesauthorized,
                  995,456,564 and 602,106,564 shares issued andat
                  March 31, 2007 and December 31, 2006, respectively
              995,457
              602,107Additional
                  paid-in capital
              250,653,090
              249,630,380Losses
                  accumulated during the development stage
              (260,381,057)
              (271,270,324)Total
                  stockholders' deficit
              (8,717,595)
              (21,022,922)Total
                  liabilities and stockholders' deficit
              $
                  88,741
              $
                  289,858





The
      accompanying notes are an integral part of the unaudited consolidated financial
      statements










**SAVI
                  MEDIA GROUP, INC.****A
                  Corporation in the Development Stage****CONSOLIDATED
                  STATEMENTS OF OPERATIONS****For
                  the Quarters March 31, 2007 and 2006 and for the
                  Period****From
                  Inception, August 13, 2002, to March 31, 2007**March
                  31,
              March
                  31,
              Inception
                  to2007
              2006
              March
                  31, 2007(restated)Operating
                  costs and expenses:General
                  and administrative expenses,except
                  stock based compensation
              $
                  333,936
              $
                  306,756
              $
                  3,623,637Depreciation
                  expense
              $
                  625
              $
                  521
              50,819Research
                  and Development
              299,686
              $
                  119,720
              1,753,449Stock-based
                  compensation
              1,416,060
              $
                  498,138
              247,430,637Loss
                  from operations
              (2,050,307)
              (925,135)
              (252,858,542)Other
                  income and (expenses)Interest
                  Income
              -
              1
              175Gain
                  on settlement
              -
              -
              197,033Cost
                  of rescission
              -
              -
              (43,074)Cost
                  of recapitalization
              -
              -
              (273,987)Goodwill
                  impairment
              -
              -
              (541,101)Change
                  in fair value of financial instruments
              13,175,231
              226,708
              40,944,150Loss
                  on debt Extinguishment
              -
              -
              (492,464)Impairment
                  of property and equipment
              (185,657)
              -
              (420,956)Impairment
                  of patent rights
              -
              -
              (38,500)Registration
                  Rights Penalties
              (489,788)
              -
              (489,788)Interest
                  expense
              (218,341)
              (8,179)
              (47,022,132)Total
                  other income and expenses, net
              12,281,445
              218,530
              (8,180,644)Net
                  profit/(loss) before cumulative effect ofchange
                  in accounting principle
              $
                  10,231,138
              $
                  (706,605)
              $(261,039,186)Cumulative
                  effect of change in accounting principle
              658,129
              -
              658,129Net
                  profit/(loss)
              $
                  10,889,267
              $
                  (706,605)
              $(260,381,057)Weighted
                  average shares outstanding
              803,152,120
              224,790,772Fully
                  diluted weighted average shares outstanding
              2,511,784,883Net
                  profit/(loss) per common share - basic
              $
                  0.01
              $
                  (0.00)Net
                  profit/(loss) per common share - diluted
              0.00
              $
                  (0.00)





The
      accompanying notes are an integral part of the unaudited consolidated financial
      statements











**SAVI
                  MEDIA GROUP, INC.****A
                  Corporation in the Development Stage****CONSOLIDATED
                  STATEMENT OF STOCKHOLDERS' DEFICIT****For
                  the Quarter Ended March 31, 2007**Series
                  A Preferred Stock
              Series
                  B Preferred StockShares
              Amount
              Shares
              AmountBalance
                  at December 31, 2006
              10,000,000
              $
                  10,000
              -
              $
                  -Cumulative
                  effect of change inaccounting
                  principle
              -
              -
              -
              -Common
                  and preferred stock issuedin
                  exchange for consulting servicesand
                  employee compensation
              -
              -
              -
              -Net
                  Profit/(Loss) before cumulative effectof
                  change in accounting principle
              -
              -
              -
              -Balance
                  at March 31, 2007
              10,000,000
              $
                  10,000
              -
              $
                  -





The
      accompanying notes are an integral part of the unaudited consolidated financial
      statements













**SAVI
                  MEDIA GROUP, INC.****A
                  Corporation in the Development Stage****CONSOLIDATED
                  STATEMENT OF STOCKHOLDERS' DEFICIT****For
                  the Quarter Ended March 31, 2007**Series
                  C Preferred Stock
              Common
                  StockShares
              Amount
              Shares
              AmountBalance
                  at December 31, 2006
              4,915,275
              4,915
              602,106,564
              602,107Cumulative
                  effect of change inaccounting
                  principleCommon
                  and preferred stock issuedin
                  exchange for consulting servicesand
                  employee compensation
              
              
              393,350,000
              393,350Net
                  Profit/(Loss) before cumulative effectof
                  change in accounting principleBalance
                  at March 31, 2007
              4,915,275
              $
                  4,915
              995,456,564
              $
                  995,457





The
      accompanying notes are an integral part of the unaudited consolidated financial
      statements













**SAVI
                  MEDIA GROUP, INC.****A
                  Corporation in the Development Stage****CONSOLIDATED
                  STATEMENT OF STOCKHOLDERS' DEFICIT****For
                  the Quarter Ended March 31, 2007**LossesAccumulatedAdditional
              
              During
                  thePaid-In
              Deferred
              DevelopmentCapital
              Compensation
              Stage
              TotalBalance
                  at December 31, 2006
              249,630,380
              0
              (271,270,324)
              (21,022,922)Cumulative
                  effect of change inaccounting
                  principle
              -
              -
              658,129
              658,129Common
                  and preferred stock issuedin
                  exchange for consulting servicesand
                  employee compensation
              1,022,710
              -
              -
              1,416,060Net
                  Profit/(Loss) before cumulative effectof
                  change in accounting principle
              -
              -
              10,231,138
              10,231,138Balance
                  at March 31, 2007
              250,653,090
              $ -
              (260,381,057)
              (8,717,595)




The
      accompanying notes are an integral part of the unaudited consolidated financial
      statements










**SAVI
                  MEDIA GROUP, INC.****A
                  Corporation in the Development Stage****CONSOLIDATED
                  STATEMENTS OF CASH FLOWS****For
                  the 3 Months Ended March 31, 2007 and 2006 and for the
                  Period****From
                  Inception, August 13, 2002, to March 31, 2007**March
                  31,
              March
                  31,
              Inception
                  to2007
              2006
              31-Mar-07Cash
                  flows from operating activities:Net
                  profit/(loss)
              $10,231,138
              $
                  (706,606)
              $(260,381,057)Adjustments
                  to reconcile net income to netcash
                  used by operating activities:
              
              
              -Depreciation
                  expense
              625
              521
              50,819Gain
                  on settlement
              -
              -
              (197,033)Impairment
                  of property and equipment
              185,657
              -
              420,956Impairment
                  of patent rights
              -
              -
              38,500Impairment
                  of goodwill
              -
              -
              541,101Loss
                  on extinguishment of debt
              -
              -
              492,464Cost
                  of recapitalization
              -
              -
              273,987Amortization
                  of deferred compensation
              -
              -
              2,233,150Compensatory
                  common and preferred stock issuances
              1,416,060
              498,138
              213,971,617Compensatory
                  option issuances
              -
              -
              31,250,000Interest
                  imputed on non-interest bearing notefrom
                  a stockholder
              -
              -
              7,254Interest
                  expense recognized on issuance andthrough
                  accretion of discount on long-term debt
              154,235
              7,713
              46,857,041Cumulative
                  effect if change in accounting principle
              
              
              (658,129)Change
                  in fair value of derivatives
              (13,175,231)
              (226,708)
              (40,944,150)Common
                  stock issued for rescission agreement
              -
              -
              43,074Common
                  stock issued to pay of accounts payable
              -
              -
              50,000Changes
                  in accounts payable and accrued liabilities
              1,190,060
              20,816
              2,117,994Net
                  cash used by operating activities
              2,544
              (406,126)
              (3,832,412)Cash
                  flows from investing activities:Acquisition
                  of equipment
              -
              -
              (487,894)Acquisition
                  of patents
              -
              -
              (38,500)Net
                  cash used in investing activities
              -
              -
              (526,394)Cash
                  flows from financing activities:Bank
                  Overdraft/Payoff overdraft
              (3,631)
              -
              -Proceeds
                  from stockholder advances
              -
              -
              49,672Net
                  Proceeds from convertible debt
              -
              -
              2,154,040Proceeds
                  from note payable
              -
              -
              142,500Proceeds
                  from warrant exercise and depositfor
                  warrant exercise
              -
              168,178
              692,558Payments
                  on notes payable
              -
              -
              (63,000)Proceeds
                  from sale of common stock
              -
              382,730
              1,382,937Net
                  cash provided by financing activities
              (3,631)
              550,908
              4,358,707Net
                  increase (decrease) in cash and equivalents
              (1,088)
              144,782
              -Cash
                  and cash equivalents at beginning of year
              1,088
              336
              -Cash
                  and cash equivalents at end of year
              -
              145,118
              -





The
      accompanying notes are an integral part of the consolidated financial
      statements








**SAVI
      MEDIA GROUP, INC.**


**A
      Corporation in the Development Stage**


**NOTES
      TO UNAUDITED FINANCIAL STATEMENTS**





**1.**  **Organization
      and Significant Accounting Policies**





SaVi
      Media Group, Inc. (the "Company") is a Nevada Corporation that has acquired
      rights to "blow-by gas and crankcase engine emission reduction technology"
      which
      it intends to develop and market on a commercial basis. The technology is a
      relatively simple gasoline and diesel engine emission reduction device that
      the
      Company intends to sell to its customers for effective and efficient emission
      reduction and engine efficiency for implementation in both new and presently
      operating automobiles. The Company is considered a development stage enterprise
      because it currently has no significant operations, has not yet generated
      revenue from new business activities and is devoting substantially all of its
      efforts to business planning and the search for sources of capital to fund
      its
      efforts.





The
      Company was originally incorporated as Energy Resource Management, Inc. on
      August 13, 2002 and subsequently adopted name changes to Redwood Energy Group,
      Inc. and SaVi Media Group, Inc., upon completion of a recapitalization on August
      26, 2002. The re-capitalization occurred when the Company acquired the
      non-operating public shell of Gene-Cell, Inc. Gene-Cell Inc. had no significant
      assets or operations at the date of acquisition and the Company assumed all
      liabilities that remained from its prior discontinued operation as a
      biopharmaceutical research company. The historical financial statements
      presented herein are those of SaVi Media Group, Inc. and its predecessors,
      Redwood Energy Group, Inc. and Energy Resource Management, Inc.





The
      non-operating public shell used to recapitalize the Company was originally
      incorporated as Becniel and subsequently adopted name changes to Tzaar
      Corporation, Gene-Cell, Inc., Redwood Energy Group, Inc., Redwood Entertainment
      Group, Inc. and finally its current name, SaVi Media Group, Inc.





**Significant
      Estimates**





The
      preparation of consolidated financial statements in conformity with accounting
      principles generally accepted in the United States of America 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 dates of the consolidated condensed financial statements and the reported
      amounts of revenues and expenses during the periods. Actual results could differ
      from estimates making it reasonably possible that a change in the estimates
      could occur in the near term.





**Principles
      of Consolidation**





The
      consolidated condensed financial statements include the accounts of the Company
      and its wholly owned subsidiaries after elimination of all significant
      intercompany accounts and transactions.





**Interim
      Financial Statements**





The
      accompanying unaudited consolidated condensed financial statements have been
      prepared in accordance with accounting principles generally accepted in the
      United States of America for interim financial information and with the
      instructions to Form 10-QSB and Article 10 of Regulation S-B. Accordingly,
      they
      do not include all of the information and footnotes required by accounting
      principles generally accepted in the United States of America for complete
      financial statements. In the opinion of management, all adjustments (consisting
      of normal recurring accruals) considered necessary for a fair presentation
      have
      been included. Operating results for the three-month periods ended March
      31, 2007 and 2006 are not necessarily indicative of the results that may be
      expected for the respective full years.




**Cash
      and Cash Equivalents**





The
      Company considers all highly liquid short-term investments with an original
      maturity of three months or less when purchased, to be cash
      equivalents.





**Concentration
      of Credit Risk**





Cash
      and
      cash equivalents are the primary financial instruments that subject the Company
      to concentrations of credit risk. The Company maintains its cash deposits with
      major financial institutions selected based upon management’s assessment of the
      financial stability. Balances periodically exceed the $100,000 federal
      depository insurance limit; however, the Company has not experienced any losses
      on deposits.





**Furniture
      and Equipment**





Furniture
      and equipment is recorded at cost. The cost and related accumulated depreciation
      of assets sold, retired or otherwise disposed of are removed from the respective
      accounts, and any resulting gains or losses are included in the results of
      operations. Depreciation is computed using the straight-line method over the
      estimated useful lives of the related assets. Repairs and maintenance costs
      are
      expensed as incurred.





**Impairment
      Of Long-Lived Assets**





The
      Company evaluates the recoverability of long-lived assets when events and
      circumstances indicate that such assets might be impaired and determines
      impairment by comparing the undiscounted future cash flows estimated to be
      generated by these assets to their respective carrying amounts. 
Impairments are charged to operations in the period to which events and
      circumstances indicate that such assets might be impaired.  During 2006 we
      evaluated furniture and equipment and patent rights and recorded impairment
      allowances totaling $273,799. During the 1 st quarter
      of 2007 we evaluated furniture and equipment and recorded impairment allowances
      totaling $185,657.





**Intangible
      Assets**




Intangible
      assets are amortized using the straight-line method over their estimated period
      of benefit. We evaluate the recoverability of intangible assets periodically
      and
      take into account events or circumstances that warrant revised estimates of
      useful lives or that indicate that impairment exists.





**Income
      Taxes**





The
      Company uses the liability method of accounting for income taxes. Under this
      method, deferred income taxes are recorded to reflect the tax consequences
      on
      future years of temporary differences between the tax basis of assets and
      liabilities and their financial amounts at year-end. The Company provides a
      valuation allowance to reduce deferred tax assets to their net realizable
      value.





**Stock-Based
      Compensation**





Effective
      January 1, 2006, the Company adopted Statement of Financial Accounting
      Standards (SFAS) No. 123 (revised 2004), *Share-Based
      Payment* (SFAS
      123R), and began expensing at fair value on a straight-line basis the costs
      resulting from share-based payment transactions.




Prior
      to
      2006, the Company elected to follow Accounting Principles Board (APB) Opinion
      No. 25, *Accounting
      for Stock Issued to Employees* (APB
      25)
      and related interpretations in accounting for stock options granted to employees
      as permitted by SFAS No. 123, *Accounting
      for Stock-Based Compensation* (SFAS
      123), as amended by SFAS No. 148, *Accounting
      for Stock-Based Compensation—Transition and Disclosure* .
      Under
      APB 25, the Company did not recognize share-based payment expense in its
      financial statements because the stock option awards qualified as fixed awards
      and the exercise price of the Company’s employee stock options equaled the
      market price of the underlying stock on the date of grant.




**Valuation
      of Derivatives**





Financial
      Accounting Standard No. 133, “Accounting for Derivative Instruments and Hedging
      Activities” (“SFAS 133”) established financial accounting and reporting
      standards for derivative instruments, including certain derivative instruments
      embedded in other contracts, and for hedging activities. The convertible
      debentures issued to Golden Gate Investors on May 5, 2005 are subject to
      derivative accounting under SFAS 133 and EITF No. 00-19, "Accounting for
      Derivative Financial Instruments Indexed to, and Potentially Settled in, a
      Company's Own Stock.". A model was developed that values the compound embedded
      derivatives within the convertible notes and associated freestanding warrants.
      The embedded derivatives are valued using a lattice model which incorporates
      a
      probability weighted discounted cash flow methodology. This model is based
      on
      future projections of the various potential outcomes. The model analyzed the
      underlying economic factors that influenced which likely events would occur,
      when they were likely to occur, and the specific terms that would be in effect
      at the time (i.e. interest rates, stock price, conversion price, etc.). The
      primary factors driving the economic value of the embedded derivatives are
      stock
      price, stock volatility, whether the company has obtained a timely registration,
      an event of default, and the likelihood of obtaining alternative financing.
      The
      warrants issued with the convertible debt are a freestanding derivative
      financial instrument. Using the Black-Scholes Method with a probability weighted
      exercise price, the fair value of the derivative was computed warrants at
      inception and are recorded as a derivative liability.





The
      derivative liabilities result in a reduction of the initial carrying amount
      (as
      unamortized discount) of the Convertible Note. This derivative liability is
      marked-to-market each quarter with the change in fair value recorded in the
      income statement. Unamortized discount is amortized to interest expense using
      the effective interest method over the life of the Convertible Note. If the
      Note
      is converted or the warrants are exercised, the derivative liability is released
      and recorded as additional paid in capital.





**Profit/(Loss)
      Per Share**





Basic
      and
      diluted net loss per share is computed on the basis of the weighted average
      number of shares of common stock outstanding during each period. Potentially
      dilutive options, warrants and convertible debt and preferred stock that were
      outstanding during each period in which there was a loss were not considered
      in
      the calculation of diluted earnings per share because the Company's net loss
      rendered their impact anti-dilutive. Accordingly, basic and diluted loss per
      share is identical for the period ended March 31, 2006. The number of dilutive
      options, warrants, convertible debt and preferred stock that were outstanding
      as
      of March 31, 2007 is summarized below:




Dilutive
                CommonSecurity
            SharesCommon
                Shares
            803,152,120Options
            217,105,263Preferred
                A
            1,000,000,000Preferred
                C
            491,527,500Total
                Diluted Shares
            2,511,784,883





**Fair
      Value of Financial Instruments**





The
      Company includes fair value information in the notes to consolidated financial
      statements when the fair value of its financial instruments is different from
      the book value. When the book value approximates fair value, no additional
      disclosure is made.





**New
      Accounting Pronouncements**





In
      February 2007, the FASB issued SFAS No. 159, *The
      Fair Value Option for Financial Assets and Financial Liabilities, Including
      an
      amendment of FASB Statements No. 115* (SFAS
      159). SFAS 159 permits entities to choose to measure many financial instruments
      and certain other items at fair value that are not currently required to be
      measured at fair value. The objective is to improve financial reporting by
      providing entities with the opportunity to mitigate volatility in reported
      earnings caused by measuring related assets and liabilities differently without
      having to apply complex hedge accounting provisions. SFAS 159 is expected to
      expand the use of fair value measurement, which is consistent with the FASB’s
      long-term measurement objectives for accounting for financial instruments.
      SFAS
      159 also establishes presentation and disclosure requirements designed to
      facilitate comparisons between entities that choose different measurement
      attributes for similar types of assets and liabilities.




SFAS
      159
      does not affect any existing accounting literature that requires certain assets
      and liabilities to be carried at fair value. In addition, SFAS 159 does not
      establish requirements for recognizing and measuring dividend income, interest
      income or interest expense, nor does it eliminate disclosure requirements
      included in other accounting standards, including requirements for disclosures
      about fair value measurements included in SFAS No. 157, *Fair
      Value Measurements* (SFAS
      157), and SFAS No. 107, *Disclosures
      about Fair Value of Financial Instruments* .
      SFAS
      159 is effective as of the beginning of an entity’s first fiscal year beginning
      after November 15, 2007. The Company currently is evaluating the impact of
      adopting SFAS 159.





*Change
                in Accounting Principle for Registration Payment
                Arrangements*.
                In December 2006, the Financial Accounting Standards Board (“FASB”)
                issued FASB Staff Position on No. EITF 00-19-2,*Accounting
                for Registration Payment Arrangements*(“FSP EITF 00-19-2”). FSP EITF 00-19-2 provides that the contingent
                obligation to make future payments or otherwise transfer consideration
                under a registration payment arrangement should be separately recognized
                and measured in accordance with Statement of Financial Accounting
                Standards (“FAS”) No. 5,*Accounting
                for Contingencies*,
                which provides that loss contingencies should be recognized as liabilities
                if they are probable and reasonably estimable. Subsequent to the
                adoption
                of FSP EITF 00-19-2, any changes in the carrying amount of the contingent
                liability will result in a gain or loss that will be recognized in
                the
                consolidated statement of operations in the period the changes occur.
                The
                guidance in FSP EITF 00-19-2 is effective immediately for registration
                payment arrangements and the financial instruments subject to those
                arrangements that are entered into or modified subsequent to the
                date of
                issuance of FSP EITF 00-19-2. For registration payment arrangements
                and
                financial instruments subject to those arrangements that were entered
                into
                prior to the issuance of FSP EITF 00-19-2, this guidance is effective
                for
                our consolidated financial statements issued for the year beginning
                January 1, 2007, and interim periods within that
                year.On
                January 1, 2007, we adopted the provisions of FSP EITF 00-19-2 to
                account for the registration payment arrangement associated with
                our
                July 2006 financing (the “July 2006 Registration Payment
                Arrangement”). As of January 1, 2007 and March 31, 2007,
                management determined that it was probable that we would have payment
                obligation under the July 2006 Registration Payment Arrangement;
                therefore, the company accrued a contingent obligation of $341,588
                as
                required under the provisions of FSP EITF 00-19-2. In addition, the
                compound embedded derivative liability associated with the July 2006
                Financing was adjusted to eliminate the registration payment arrangement
                and the comparative condensed consolidated financial statements of
                prior
                periods and as of December 31, 2006 have been adjusted to apply the
                new method retrospectively. The cumulative effect of this change
                in
                accounting principle adjusted retained earnings as of December 31,
                2006 by
                $658,129. The following financial statement line items for the three
                months ended March 31, 2007 were affected by the change in accounting
                principle. In addition, under EITF 00-19, the company would not book
                the
                contingent registration rights payment
                payable.




As
                  of
              As
                  of12/31/06
              03/31/07Under
                  EITF 00-19Income
                  Statement ImpactsChange in value of CED
              2,871,934
              (2,443,096)Amortization of Discount
              117,504
              140,486Balance
                  Sheet ImpactsDiscount on Note
              1,764,136
              1,623,650Derivative Liability-CED
              3,459,979
              1,016,883Under
                  EITF 00-19-02Income
                  Statement ImpactsChange in value of CED
              2,302,219
              (2,390,238)Amortization of Discount
              112,211
              134,974Balance
                  Sheet ImpactsDiscount on Note
              1,730,720
              1,595,746Derivative Liability-CED
              2,768,435
              378,197Change
                  due to EITF 00-19-02 as of 12/31/06Difference
                  in CED Liability
              691,544Difference
                  in Discount on Note
              (33,416)Net
                  Change to Retained Earnings
              658,128







**2.**  **Going
      Concern Considerations**




The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern. The Company is presently a shell company
      and
      has limited operations and resources. The Company has accumulated net losses
      in
      the development stage of $260,381,057 for the period from inception, August
      13,
      2002, to March 31, 2007. At March 31, 2007, the Company is in a negative working
      capital position of $8,806,366 and has a stockholders' deficit of $8,717,595.
      Additionally the Company faces substantial challenges to future success as
      follows:





·
            The
                Company is delinquent on critical liabilities such as lease payments
                for
                its facilities and payments to key
                consultants





·
            The
                Company will, in all likelihood, fail to comply with the terms of
                the
                agreement under which it obtained the rights to certain technology
                that
                was expected to become the basis for the Company’s future success and is
                subject to losing rights to such
                technology





·
            The
                Company is in default of its registration rights agreement with the
                investor in its long-term debt. Such default and the Company’s inability
                to fund its ongoing operations increase the likelihood that the investor
                could seize its assets to partially satisfy the debt or find another
                operator of those assets.





Such
      matters raise substantial doubt about the Company's ability to continue as
      a
      going concern. These financial statements do not include any adjustment that
      might result from the outcome of this uncertainty.





The
      goals
      of the Company will require a significant amount of capital and there can be
      no
      assurances that the Company will be able to raise adequate short-term capital
      to
      sustain its current operations in the development stage, or that the Company
      can
      raise adequate long-term capital from private placement of its common stock
      or
      private debt to emerge from the development stage. There can also be no
      assurances that the Company will ever attain operational profitability. The
      Company's long-term viability as a going concern is dependent upon certain
      key
      factors, including:





•  The
      Company's ability to obtain adequate sources of funding to sustain it during
      the
      development stage.





•  The
      ability of the Company to successfully produce and market its gasoline and
      diesel engine emission reduction device in a manner that will allow it to
      ultimately achieve adequate profitability and positive cash flows to sustain
      its
      operations.





In
      order
      to address its ability to continue as a going concern, implement its business
      plan and fulfill commitments made in connection with its agreement for
      acquisition of patent rights (See Note 3), the Company hopes to raise additional
      capital from sale of its common stock. Sources of funding may not be available
      on terms that are acceptable to the Company and its stockholders, or may include
      terms that will result in substantial dilution to existing
      stockholders.





**3.**  **Agreement
      for Acquisition of Patent Rights**





On
      March
      31, 2003, the Company entered into a letter of intent to acquire 20% of SaVi
      Group, the name under which Serge Monros was conducting business in the
      ownership of numerous patents he had developed. The acquisition of 20% of SaVi
      Group was completed in the second quarter of 2004 upon the Company's payment
      of
      $38,500 in cash and the issuance of 4,000 shares of the Company's common stock
      to Serge Monros.





Subsequent
      to the acquisition, the Company changed its name from Redwood Entertainment
      Group, Inc. to SaVi Media Group, Inc. Serge Monros changed the name of the
      entity in which he holds the patents to His Devine Vehicle, Inc. (“HDVI”).
      Further discussions between the Company and Serge Monros led to a September
      1,
      2004 agreement (the "Agreement") under which the Company acquired 100% of the
      rights to various patents (the "Patents") owned by Serge Monros. The Agreement
      was amended and modified on December 30, 2004 and again on April 6, 2005. The
      most important patented technology, for which the Company acquired rights,
      was
      technology to produce a relatively simple gasoline and diesel engine emission
      reduction device that the Company intends to sell to manufacturers of new
      vehicles and owners of presently operating automobiles.





The
      Company does not have the records of the amounts spent in the development of
      the
      Patents and is unaware of the amounts expended.




Under
      the
      terms of the Agreement as amended, the Company acquired the Patents rights
      for
      the following consideration:





·
            5,000,000
                shares of Series A preferred stock to both Serge Monros, who owned
                the
                patents, and Mario Procopio, the Company's founder and Chief Executive
                Officer. The Series A preferred stock is convertible to and holds
                voting
                rights of 100 to 1 of those attributable to common stock. These shares
                are
                to remain in escrow for three years, and, accordingly, they will
                not be
                converted to common stock during that
                period.





·
            5,000,000
                shares of common stock to both Serge Monros and Mario
                Procopio.





·
            Three-year
                stock options to acquire 125,000,000 shares of the Company's common
                stock
                at $0.00025 per share to both Serge Monros and Mario Procopio. This
                provision of the agreement was reached in April 2005. The options
                to Serge
                Monros are considered part of the cost of the patent rights under
                the
                Agreement. The Options to Mario Procopio will be recognized as
                compensation expense of $31,250,000 in the second quarter of
                2005.





The
      Agreement represents a three year relationship that may be renegotiated or
      rescinded at the end of that term if the use of the Patents does not produce
      revenue equal to costs associated with the Agreement or modified annual cost,
      whichever is less. The Agreement does not define the terms "Costs associated
      with the Agreement" or "Modified Annual Costs". Regardless of performance,
      the
      Agreement is eligible for renewal and/or modification on September 1,
      2007.





In
      the
      event the Agreement is rescinded, the Patents and related technology will be
      returned to Serge Monros. Further, under the terms of the Agreement, the Company
      is required to build a $5,000,000 research and development lab and a
      manufacturing plant and Serge Monros will also own those assets, free and clear,
      in the event the Agreement is rescinded or the Company dissolved.





The
      Agreement contains two commitments by the Company as follows:





·
            Serge
                Monros and Mario Procopio each are to receive monthly compensation
                of
                $10,000 per month, depending on revenues and the raising of capital,
                but
                not less than $3,000 per month.





·
            Contingent
                consideration to Serge Monros of $75,000,000 in cash or in the form
                of
                stock options the exercise of which will provide net proceeds to
                Serge
                Monros of $75,000,000 over the next ten years. If options are issued,
                they
                will bear an exercise price of $0.00025 per share. This provision
                of the
                agreement is specifically tied to the performance of the Company
                and its
                ability to pay either in cash or stock
                options.





The
      Company recorded Patents at cost to Serge Monros because the Agreement resulted
      in the control of the Company by Serge Monros and Mario Procopio. Further,
      due
      to the fact that most costs incurred by Serge Monros in developing the patents
      represented research and development costs that were immediately expensed,
      the
      basis of the Patents has been limited to $38,500, the actual cash paid to Serge
      Monros under the initial agreement to acquire 20% of SaVi Group. In 2006, The
      Company recorded a $38,500 impairment allowance that reduced the patents to
      a
      zero carrying value since it is clear the company will not meet the requirements
      of the Agreement, and will likely lose any rights it has to such
      patents.





The
      Series A convertible preferred stock and the stock options issued under the
      Agreement could have a very significant future dilutive effect on
      stockholders.





**4.**  **Stockholders’
      Equity**





Following
      is a description of transactions affecting stockholders equity in the three
      months ended March 31, 2007:





-
            The
                Company issued 393,350,000 shares of common stock to various individuals
                that provided consulting and other services to the Company and recognized
                compensation expense of $1,416,060 related to those
                issuances.
















ITEM
      2
      - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS





*The
      following discussion should be read in conjunction with the unaudited condensed
      consolidated financial statements and notes thereto set forth in Item 1 of
      this
      Quarterly Report. In addition to historical information, this discussion and
      analysis contains forward-looking statements that involve risks, uncertainties
      and assumptions, which could cause actual results to differ materially from
      Management’s expectations. Factors that could cause differences include, but are
      not limited to, expected market demand for the Company’s services, fluctuations
      in pricing for products that may be distributed by the Company and services
      offered by competitors, as well as general conditions of the
      marketplace.*





**Overview**





We
      are
      considered a development stage enterprise because we currently have no
      significant operations, have not yet generated revenue from new business
      activities and are devoting substantially all of our efforts to business
      planning and the search for sources of capital to fund our efforts. We have
      acquired all rights to certain technology for the production of a gasoline
      and
      diesel engine emission reduction device which we believe delivers superior
      emission reduction technology and operating performance. This technology is
      an
      emission reduction device believed to reduce, harmful exhaust emissions in
      gasoline and diesel engines, and increase fuel efficiency. Currently we do
      not
      have any products available for sale and we will acquire additional funding
      before we will be able to begin production of our products and there is no
      guarantee that we will be able to obtain such additional funding.





**History**





We
      were
      originally incorporated as Energy Resource Management, Inc. on August 13, 2002
      and subsequently adopted name changes to Redwood Energy Group, Inc. and Redwood
      Entertainment Group, Inc., upon completion of a recapitalization on August
      26,
      2002. The re-capitalization occurred when we acquired the non-operating public
      shell of Gene-Cell, Inc., a public company. Gene-Cell had no significant assets
      or operations at the date of acquisition and we assumed all liabilities that
      remained from its prior discontinued operation as a biopharmaceutical research
      company. The historical financial statements presented herein are those of
      Redwood Entertainment Group, Inc. and its predecessors, Redwood Energy Group,
      Inc. and Energy Resource Management, Inc.





The
      non-operating public shell used to recapitalize the Company was originally
      incorporated as Becniel and subsequently adopted name changes to Tzaar
      Corporation, Gene-Cell, Inc., Redwood Energy Group, Inc., Redwood Entertainment
      Group, Inc., and finally its current name, Savi Media Group, Inc.





**Business
      History**





We
      were
      originally incorporated as Energy Resource Management, Inc. on August 13, 2002
      and subsequently adopted name changes to Redwood Energy Group, Inc. and Redwood
      Entertainment Group, Inc., upon completion of a recapitalization on August
      26,
      2002. The re-capitalization occurred when we acquired the non-operating entity
      of Gene-Cell, Inc. Gene-Cell had no significant assets or operations at the
      date
      of acquisition and we assumed all liabilities that remained from its prior
      discontinued operation as a biopharmaceutical research company. The historical
      financial statements presented herein are those of SaVi Media Group, Inc. and
      its predecessors, Redwood Entertainment Group, Inc., Redwood Energy Group,
      Inc.
      and Energy Resource Management, Inc.





The
      non-operating public shell we used to recapitalize was originally incorporated
      as Becniel and subsequently adopted name changes to Tzaar Corporation,
      Gene-Cell, Inc., Redwood Energy Group, Inc., Redwood Entertainment Group, Inc.,
      and finally its current name, SaVi Media Group, Inc.





**Critical
      Accounting Policies and Estimates**





Our
      discussion and analysis of our financial condition and results of operations
      are
      based upon our consolidated financial statements, which have been prepared
      in
      accordance with accounting principles generally accepted in the United States
      of
      America. The preparation of these financial statements requires us to make
      estimates and judgments that affect the reported amounts of assets, liabilities,
      revenue and expenses, and related disclosure of contingent assets and
      liabilities. On an ongoing basis, we evaluate our estimates and our estimates
      are based on historical experience and on various other assumptions that are
      believed to be reasonable under the circumstances. These estimates and
      assumptions provide a basis for our judgments about the carrying values of
      assets and liabilities that are not readily apparent from other sources. Actual
      results may differ from our estimates under different assumptions or conditions,
      and these differences may be material.




We
      believe that the following critical accounting policies affect our more
      significant judgments and estimates used in the preparation of our consolidated
      financial statements:





**Income
      Taxes**





We
      use
      the liability method of accounting for income taxes. Under this method, deferred
      income taxes are recorded to reflect the tax consequences on future years of
      temporary differences between the tax basis of assets and liabilities and their
      financial amounts at year-end. We provide a valuation allowance to reduce
      deferred tax assets to their net realizable value.




**Results
      of Operations**





During
      the period from inception, August 13, 2002, to March 31, 2007, we have not
      generated any revenue from operations. As of March 31, 2007, we have accumulated
      net losses in the development stage of $260,381,057 for the period from
      inception, August 13, 2002, to March 31, 2007. Additionally, at March 31, 2007,
      we are in a negative working capital position of $8,806,366 and a stockholders'
      deficit position $8,717,595. Our auditors have opined that such matters raise
      substantial doubt about our ability to continue as a going concern. We financed
      our operations mainly through the sale of common stock and have been entirely
      dependent on outside sources of financing for continuation of operations. For
      the remainder of fiscal 2007, we will continue to pursue funding for our
      business. There is no assurance that we will continue to be successful in
      obtaining additional funding on attractive terms or at all, nor that the
      projects towards which additional paid-in capital is assigned will generate
      revenues at all.





**Plan
      of Operations**





We
      believe that there are six critical elements for the building of a successful
      research & development company that has the capacity to manufacture
      technology for the implementation of immediate and long-term solutions to the
      global challenges of air, water, and land pollution.





1.
            People
                - this includes a qualified board of directors, advisory board members,
                management, employees, shop personnel, Q.C., project managers, journeymen,
                welders, machinists, cnc operators, cad cam, shop planners, senior
                engineers, tool & design, maintenance personnel, calibrators &
                inspectors, sheet metal fabricators, debburing & finishing personnel,
                purchasers, transporters, cnc trainers and consultants,
                etc.;2.
            Projects
                - a credible portfolio of projects that have the appropriate risk-return
                ratio in order to generate potentially significant shareholder
                value;3.
            Capital
                - based upon the reputation of the people and the quality of the
                projects,
                there must be sufficient capital in order to launch the company and
                to
                provide for additional fundings;4.
            Technology
                - the most advanced interpretation methods, techniques and methods
                should
                be utilized in order to maximize the potential for finding and developing
                immediate and long term solutions to the global challenges of air,
                water,
                and land pollution;5.
            Favorable
                positioning - the international influence of the oil and gas companies
                along with the automotive & diesel industries requires a combination
                of secured relationships with their appointed leadership in these
                various
                industries as well as with all the various local and international
                governmental entities; and6.
            Manufacturing
                capability and equipment- the competitive nature of the automotive
&
                diesel industry requires a unique approach and a significant capital
                commitment in order to secure the latest in hi-tech equipment, technology,
                research, and the creation of numerous patents as well as to expedite
                mass
                production.





*People:*





In
      August
      2004 Savi Media Group was founded by Serge Monros and Mario Procopio. Serge
      Monros sold the Crankcase Ventilation technologies to Savi Media that he
      personally developed over the last 17 years. Mario Procopio was hired as the
      President, Chief Executive Officer and director of with a mandate to acquire
      the
      initial funding for the planned projects and to assist in aggressively
      transforming us into an emerging research and development company in the field
      of automotive and diesel retrofitting and pollution control. In August 2004,
      enough capital was obtained to acquire a bulletin board company, pay off many
      of
      its existing debts, and begin to launch the varied projects of which the
      DynoValve is one of several projects.





We
      have
      established a Strategic Advisory Board and recruited qualified individuals
      to
      develop marketing strategies, feasibility studies, and update our business
      plan.
      Among those are Retired U.S. General Alexander M. Haig, Jr., Alexander P. Haig,
      John Hewitt, Marketing Specialist, and John Dunlap, former Executive Director
      of
      CalTrans.




*Projects:*





During
      2006, we further refined our strategic plan and have determined that the maximum
      value to all of our shareholders is best served by targeting three focused
      project areas that provide for long-term growth from our invested capital.
      The
      three major project areas are as follows:





*An
      R & D Lab and adjacent offices*





We
      have
      established an R & D lab with its adjacent offices located at 2530 S. Birch
      St. Santa Ana, CA. 92707. We have also negotiated with G & K Auto in
      acquiring a 270,000 square foot R & D lab and office in Tian Jin, China in
      the Auto Trade - Free Trade Zone in order to test and retrofit internal
      combustion engines both stationary and in automotive applications. However,
      our
      current lack of financial resources has caused us to fall more than six behind
      on our lease payments and we could be evicted at any time.





*Implement
      the initial testing phases in order to secure revenues, licensing agreements,
      and contracts.*





We
      hope
      to continue to test our emission control device on select diesel engines in
      order to obtain certification and validation of our technology. However, we
      currently lack the financial resources to continue testing. We hope to obtain
      an
      Executive Order from the California Air Resource Board which allows us to
      legally sell our product in California. This will assist in obtaining contracts
      and purchase orders. The monthly cost for each product testing is approximately
      $60,000 and completion of testing should be accomplished in six to nine months
      assuming there are no delays. Phase one testing on a new diesel engine at
      California Environmental Engineering indicated notable reduction in tailpipe
      emissions and Particulate Matter (PM) while improving fuel economy. The
      reductions were 5.1% in hydrocarbons, 5.1% in carbon monoxide, 5.5% in nitrogen
      oxides, while increasing fuel economy by 0.3%.





*Become
      a technology partner to the various entities that are focused on environmental
      solutions.*





We
      are
      presently participating in a consortium of companies with emission reduction
      technologies for the problem solving of both our local environmental challenges
      and to assist in China’s pursuit of immediate solutions to the particular needs
      in their environment. At this time we have not engaged in formal agreements
      with
      any company or initiated any actions or plans and have not committed any
      funds.





During
      the quarter ended March 31, 2007, we had limited operations and we expect to
      require additional cash of a minimum of approximately $3,000,000 over the next
      twelve months. Those funds, if available, will be used for continued operation
      in the development stage. Additional financing will need to be obtained. Due
      to
      our still being in a development stage, sources of funding may not be available
      on terms that are acceptable to management and existing stockholders, or may
      include terms that will result in substantial dilution to existing
      stockholders.





**Liquidity
      and Capital Resources**





As
      of
      March 31, 2006, we had no current assets.




Total
      current liabilities were $8,806,336 as of March 31, 2007, consisting of
      convertible debt (net of discount) of $879,766, accounts payable and accrued
      liabilities of $1,582,487, accounts payable assumed in recapitalization of
      $159,295, accrued registration rights penalties of $148,200, contingent
      registration rights penalties payable of $341,588 and derivative financial
      instrument liabilities of $5,695,000.





We
      had a
      negative working capital of $8,806,336 as of March 31, 2007.




We
      incurred net losses of $260,381,057 during the period from inception, August
      13,
      2002, to March 31, 2007 and loss from operations for the three months ended
      March 31, 2007 of $2,050,307. In addition, at March 31, 2006, we were in a
      negative working capital deficit of $8,806,336 and had a stockholders' deficit
      of $8,717,595. As a result, our independent registered public accounting firm,
      in its report dated April 13, 2006, has expressed substantial doubt about our
      ability to continue as a going concern.





Our
      ability to continue as a going concern is dependent upon several factors. These
      factors include our ability to:





· further implement our business plan;


· obtain additional financing or refinancing as may be required; and


· generate revenues.





We
      believe it is imperative that we raise an additional $3,000,000 of capital
      in
      order to implement our business plan. We are attempting to raise additional
      funds through debt and/or equity offerings. We intend to use any funds raised
      to
      pay down debt and to provide us with working capital. There can be no assurance
      that any new capital would be available to us or that adequate funds for our
      operations, whether from our revenues, financial markets, or other arrangements
      will be available when needed or on terms satisfactory to us. Any additional
      financing may involve dilution to our then-existing shareholders. At this time,
      no additional financing has been secured or identified. We have no commitments
      from officers, directors or affiliates to provide funding. If we are unable
      to
      obtain debt and/or equity financing upon terms that we deem sufficiently
      favorable, or at all, it would have a materially adverse impact upon our ability
      to pursue our business strategy and maintain our current operations. As a
      result, it may require us to delay, curtail or close some or all of our
      operations. We do not currently have commitments for capital at this
      time.





**Off-Balance
      Sheet Arrangements**





We
      do not
      have any off-balance sheet arrangements that have or are reasonably likely
      to
      have a current or future effect on our financial condition or results of
      operations.





There
      were no recent accounting pronouncements that have had or are likely to have
      a
      material effect on our financial position or results of operations. However,
      FASB accounting pronouncement EITF 00-19-02 was adopted by the company as of
      January 1, 2007 and the company recorded a change in accounting principle to
      retained earnings of $658,129.





**ITEM
      3 - CONTROLS AND PROCEDURES**





**a)**
            **Evaluation
                of Disclosure Controls and Procedures**.
                As of March 31, 2007, the Company’s management carried out an evaluation,
                under the supervision of the Company’s Chief Executive Officer and Chief
                Financial Officer of the effectiveness of the design and operation
                of the
                Company’s system of disclosure controls and procedures pursuant to the
                Securities and Exchange Act, Rule 13a-15(e) and 15d-15(e) under the
                Exchange Act).  Based upon that evaluation, the Chief Executive
                Officer and Chief Financial Officer concluded that the Company’s
                disclosure controls and procedures were ineffective, as of the date
                of
                their evaluation, for the purposes of recording, processing, summarizing
                and timely reporting material information required to be disclosed
                in
                reports filed by the Company under the Securities Exchange Act of
                1934.This
                assessment was made based on the need to amend prior filings due
                to
                embedded derivatives within various convertible securities and the
                lack of
                sufficient personnel to process transactions. We have hired an outside
                expert to evaluate and value derivative financial instruments in
                any and
                all convertible securities and when we obtain additional financing
                will
                hire additional personnel and implement procedures to properly account
                for
                and disclose all transactions.





**b)**
            **Changes
                in internal controls**.
                There were no changes in internal controls over financial reporting
                that
                occurred during the period covered by this report that has materially
                affected, or is likely to materially effect, the Company’s internal
                control over financial reporting.




**PART
      II - OTHER INFORMATION**


**ITEM
      1 - LEGAL PROCEEDINGS**





From
      time
      to time, we may become party to litigation or other legal proceedings that
      we
      consider to be a part of the ordinary course of our business.





On
      January 16, 2007, Serge Monros, the Company’s current chief technology officer,
      filed a derivative suit on behalf of the Company naming the Company, Mario
      Procopio, and Kathy Procopio as defendants in the Superior Court of the State
      of
      California for the County of San Diego. Mr. Monros’ derivative suit alleged the
      following causes of action: (i) breach of fiduciary duty of loyalty; (ii) breach
      of fiduciary duty of care; (iii) unjust enrichment; (iv) conversion; (v) waste
      of corporate assets; and (vi) trade libel. This case is in its preliminary
      stages and no depositions have taken place.





On
      January 25, 2007, Mario Procopio filed a derivative suit behalf of the Company
      against the Company and Serge Monros in the Superior Court of the State of
      California for the County of Orange. Mr. Procopio’s derivative suit alleged the
      following causes of action: (i) breach of contract; (ii) promise without intent
      to perform; (iii) breach of fiduciary duty; (iv)rescission; (v) intentional
      misrepresentation; (vi) negligent misrepresentation; and (vii) conversion.
      This
      case is in its preliminary stages and no depositions have taken
      place.





In
      January 2007, Herrera Partners filed an arbitration claim against the Company
      in
      Harris County, Texas. Herrera Partners claim is for $63,700. The Company
      believes the claim is inaccurate and will defend its rights in this
      matter.





On
      March
      14, 2007, United Rentals filed a suit against the Company, Greg Sweeney, and
      Mario Procopio in Orange County Superior Court. United Rentals claim is for
      non-payment for services rendered. The Company has negotiated but not executed
      a
      stipulated judgment in this case for the undisputed amount of the
      non-payment.





We
      may
      become involved in material legal proceedings in the future.





**ITEM
      2 - UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF
      PROCEEDS**





During
      the quarter ended March 31, 2006, we issued 393,350,000 shares of common stock
      to various individual for consulting and other services provided to us. We
      recognized compensation expense of $1,416,060 related to those
      issuances.


**ITEM
      3 - DEFAULTS UPON SENIOR SECURITIES**





The
      Company is in default of its registration rights agreement with the investor
      in
      its long-term debt. Such default and the Company’s inability to fund its ongoing
      operations increase the likelihood that the investor could seize its assets
      to
      partially satisfy the debt or find another operator of those assets.





**ITEM
      4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**





None.


**ITEM
      5 - OTHER INFORMATION**




None.


**ITEM
      6 - EXHIBITS**





31.1
      -
      Certification of Chief Executive Officer pursuant to Rule 13a-14 and Rule
      15d-14(a), promulgated under the Securities and Exchange Act of 1934, as
      amended




31.2
      -
      Certification of Chief Financial Officer pursuant to Rule 13a-14 and Rule
      15d-14(a), promulgated under the Securities and Exchange Act of 1934, as
      amended





32.1
      -
      Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer)





32.2
      -
      Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer)
















**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.





**SAVI
      MEDIA GROUP, INC.**





Date:
                May 20, 2007
            By:***/s/
                GREG SWEENEY*Greg
                SweeneyPresident,
                Chief Executive Officer (Principal Executive Officer) and
                DirectorDate:
                May 20, 2007
            By:*/s/ PHILLIP C. SCOTT*Phillip
                C. ScottChief
                Financial Officer (Principal Financial Officer and Principal Accounting
                Officer)