SECURITIES AND EXCHANGE COMMISSION
                    Washington, DC 20549

                         FORM 10-KSB
  ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                    EXCHANGE ACT OF 1934

For the year ended December 31, 2000
Commission File No. 000-31131





                 KENROY COMMUNICATIONS CORP.
   (Exact name of registrant as specified in its charter)




Nevada                                            88-0421459
(State of organization) (I.R.S. Employer Identification No.)

1350 E. Flamingo Rd., Suite 688, Las Vegas, NV 89119
(Address of principal executive offices)

Registrant's telephone number, including area code (702) 228-4688

Securities registered under Section 12(g) of the Exchange
     Act: Common stock, $0.001 par value per share

Check whether the issuer (1) filed all reports required to
be file by Section 13 or 15(d) of the Exchange Act during
the past 12 months and (2) has been subject to such filing
requirements for the past 90 days.  Yes X

Check if there is no disclosure of delinquent filers in
response to Item 405 of Regulation S-B not contained in this
form, and no disclosure will be contained, to the best of
registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this
Form 10-KSB or any amendments to this Form 10-KSB.     [ X ]

Issuer's Revenue during the year ended December 31, 2000:
$ 0

As  of  December 31, 2000, the registrant had 220,000 shares
of   its   common  stock,  $0.001  par  value,  outstanding.
Aggregate  market value of the voting and non-voting  common
equity held by non-affiliates based on the price of N/A  per
share  (the  selling or average bid and asked price)  as  of
December 31, 2000: N/A.

NOTE: The company's stock is not, and has not, been traded
or quoted, and the book value is negative. Therefore, there
is no way to ascertain a market value for the stock.

            DOCUMENTS INCORPORATED BY REFERENCE:

None

                           PART I

ITEM 1.   DESCRIPTION OF BUSINESS

                         Background

Kenroy  Communications  Corp. (the "Company")  is  a  Nevada
corporation formed on December 31, 1998. Its principal place
of  business is located at 1350 E. Flamingo Rd., Suite  688,
Las Vegas, NV 89119.

                     Business of Issuer

The  Company was organized to engage in any lawful corporate
business.  Since its inception, the Company's main  activity
has been organizational.

                   Previous Business Plan

The  Company  was originally organized for  the  purpose  of
setting up a computer software business. The Company planned
to  engage  in  both  wholesale and retail  distribution  of
computer  software products beginning in Las Vegas,  Nevada.
The  Company  was  to  rely on newspaper advertisements  and
later  use e-commerce to implement its marketing objectives.
The  Company was intending to utilize direct mailing and  e-
mail to solicit manufacturers and retailers of products. The
Company  was  unable to raise sufficient funding  to  pursue
that  objective, and therefore by resolution  abandoned  its
original business plan on January 1, 2000.

The  primary  activity  of  the Company  currently  involves
seeking  a company or companies that it can acquire or  with
whom  it can merge. The Company has not selected any company
as  an  acquisition target or merger partner  and  does  not
intend to limit potential candidates to any particular field
or  industry, but does retain the right to limit candidates,
if  it  so  chooses, to a particular field or industry.  The
Company's plans are in the conceptual stage only.

On  December 31, 1998, the Company issued 100,000 shares  of
its common stock to shareholders in transactions exempt from
registration pursuant to section 4(2) of the Securities  Act
of  1933,  as amended (the "Securities Act").  An additional
100,000  shares were issued to shareholders on February  27,
1999,  pursuant  to  Rule  504 of Regulation  D  and  Nevada
Revised  Statute 90.490.  On September 9, 1999, the  Company
issued 15,000 shares of its common stock to shareholders  in
transactions  exempt from registration pursuant  to  section
4(2)  of  the  Securities  Act  of  1933,  as  amended  (the
"Securities Act").  On November 9, 1999, the Company  issued
5,000  shares  of  its  common  stock  to  shareholders   in
transactions  exempt from registration pursuant  to  section
4(2)  of  the  Securities  Act  of  1933,  as  amended  (the
"Securities   Act"),  which  made  the  total   issued   and
outstanding stock 220,000.

The Board of Directors has elected to begin implementing the
Company's  principal business purpose. As such, the  Company
can  be defined as a "shell" company, whose sole purpose  at
this   time  is  to  locate  and  consummate  a  merger   or
acquisition with a private entity.

The  proposed business activities described herein  classify
the  Company  as a "blank check" company. Many  states  have
enacted  statutes, rules, and regulations limiting the  sale
of securities of "blank check" companies in their respective
jurisdictions. Management does not intend to  undertake  any
efforts  to  cause  a  market to develop  in  the  Company's
securities  until such time as the Company has  successfully
implemented its business plan. Accordingly, each shareholder
of the Company has executed and delivered a "lock-up" letter
agreement,  affirming  that he/she  will  not  sell  his/her
respective  shares of the Company's common stock until  such
time as the Company has successfully consummated a merger or
acquisition  and  the Company is no longer classified  as  a
"blank   check"   company.  In  order  to  provide   further
assurances  that  no  trading will occur  in  the  Company's
securities   until   a  merger  or  acquisition   has   been
consummated,  each shareholder has agreed to  place  his/her
respective  stock  certificate  with  the  Company's   legal
counsel,  who  will  not release the  certificates  until  a
merger  or  acquisition  has been successfully  consummated.
While  management believes that the procedures will suffice,
there  can  be  no  assurances that they will  unequivocally
limit  any  shareholder's ability to sell  their  respective
securities before closing of a transaction.

                         Competition

The  Company  is  an insignificant participant  among  firms
which engage in business combinations with, or financing of,
development-stage  enterprises. There are  many  established
management  and financial consulting companies  and  venture
capital firms which have significantly greater financial and
personal resources, technical expertise and experience  than
the  Company.  In  view of the Company's  limited  financial
resources  and  management availability,  the  Company  will
continue to be at significant competitive disadvantage vis-a-
vis the Company's competitors.

                          Employees

The  Company's only employees at the present  time  are  its
officers and directors, who will devote as much time as  the
Board  of Directors determine is necessary to carry out  the
affairs of the Company.

ITEM 2.   DESCRIPTION OF PROPERTY.

The  Company  neither owns nor leases any real  property  at
this time. The Company does have the use of a limited amount
of  office  space from one of the directors, Vegas  Commerce
Center  at  no  cost to the Company, and Management  expects
this  arrangement  to  continue. The Company  pays  its  own
charges   for  long  distance  telephone  calls  and   other
miscellaneous   secretarial,   photocopying,   and   similar
expenses. This is a verbal agreement between Vegas  Commerce
Center and the Board of Directors.

ITEM 3.   LEGAL PROCEEDINGS

The  Company  is not a party to any material  pending  legal
proceedings  and,  to  the best of its  knowledge,  no  such
action by or against the Company has been threatened.

ITEM 4.   SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY
          HOLDERS

No  such  matters  were  submitted during  the  most  recent
quarter.

                           PART II

ITEM 5.   MARKET  FOR  COMMON EQUITY AND RELATED STOCKHOLDER
          MATTERS.

                     Market Information

The Company's common stock has been registered in a Form SB-
2  Filing  with  the Securities & Exchange Commission.  Upon
compliance  and  approval  of  the  Form  SB-2  Filing   the
Company's shares will be registered under the Securities Act
of  1933  (the "Act") and will be eligible for sale  in  the
public  market on a best efforts basis. Upon compliance  and
approval of this Form 10-SB Section 12(g) Filing our company
will  seek to be listed on the NASD OTC Electronic  Bulletin
Board  sponsored by the National Association  of  Securities
Dealers, Inc.

                        Shareholders

As  of February 23, 2001, there were 46 holders of Company's
common stock.

                          Dividends

Kenroy  has not paid any dividends on its common stock.  Our
company currently intends to retain any earnings for use  in
its  business, and does not anticipate paying cash dividends
in the foreseeable future.

ITEM 6.   MANAGEMENT'S PLAN OF OPERATION

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS

This  statement includes projections of future  results  and
"forward-looking  statements" as that  term  is  defined  in
Section  27A  of the Securities Act of 1933 as amended  (the
"Securities  Act"),  and  Section  21E  of  the   Securities
Exchange  Act of 1934 as amended (the "Exchange  Act").  All
statements  that  are included in this  filing,  other  than
statements   of   historical   fact,   are   forward-looking
statements.    Although   Management   believes   that   the
expectations  reflected in these forward-looking  statements
are   reasonable,  it  can  give  no  assurance  that   such
expectations  will  prove  to have been  correct.  Important
factors that could cause actual results to differ materially
from  the  expectations  are disclosed  in  this  Statement,
including,  without  limitation, in conjunction  with  those
forward-looking statements contained in this Statement.

                 Plan of Operation - General

The  Company  was originally organized for  the  purpose  of
setting up a computer software business. The Company planned
to  engage  in  both  wholesale and retail  distribution  of
computer  software products beginning in Las Vegas,  Nevada.
The  Company  was  to  rely on newspaper advertisements  and
later   will  use  e-commerce  to  implement  its  marketing
objectives.   The  Company was intending to  utilize  direct
mailing and e-mail to solicit manufacturers and retailers of
products. The Company was unable to raise sufficient funding
to  pursue  that  objective,  and  therefore  abandoned  its
original business plan.

The  Company's current plan is to seek, investigate, and  if
such  investigation warrants, acquire an interest in one  or
more  business opportunities presented to it by  persons  or
firms  desiring the perceived advantages of a publicly  held
corporation.  At  this  time,  the  Company  has  no   plan,
proposal,   agreement,  understanding,  or  arrangement   to
acquire or merge with any specific business or company,  and
the  Company  has  not identified any specific  business  or
company  for  investigation and  evaluation.  No  member  of
Management  or any promoter of the Company, or an  affiliate
of  either, has had any material discussions with any  other
company with respect to any acquisition of that company. The
Company  will  not  restrict  its  search  to  any  specific
business,  industry,  or  geographical  location,  and   may
participate  in business ventures of virtually any  kind  or
nature.  Discussion  of  the proposed  business  under  this
caption  and  throughout  this  Registration  Statement   is
purposefully  general  and  is not  meant  to  restrict  the
Company's virtually unlimited discretion to search  for  and
enter into a business combination.

The  Company may seek a combination with a firm  which  only
recently  commenced operations, or a developing  company  in
need  of  additional funds to expand into  new  products  or
markets  or seeking to develop a new product or service,  or
an  established business which may be experiencing financial
or operating difficulties and needs additional capital which
is  perceived to be easier to raise by a public company.  In
some instances, a business opportunity may involve acquiring
or   merging  with  a  corporation  which  does   not   need
substantial additional cash but which desires to establish a
public trading market for its common stock. The Company  may
purchase  assets and establish wholly-owned subsidiaries  in
various  businesses  or  purchase  existing  businesses   as
subsidiaries.

Selecting  a  business  opportunity  will  be  complex   and
extremely  risky.  Because of general  economic  conditions,
rapid  technological advances being made in some industries,
and shortages of available capital, management believes that
there are numerous firms seeking the benefits of a publicly-
traded  corporation. Such perceived benefits of  a  publicly
traded corporation may include facilitating or improving the
terms  on  which additional equity financing may be  sought,
providing  liquidity  for  the  principals  of  a  business,
creating  a  means for providing incentive stock options  or
similar  benefits  to  key  employees,  providing  liquidity
(subject  to  restrictions of applicable statutes)  for  all
shareholders,   and   other  items.  Potentially   available
business   opportunities  may  occur   in   many   different
industries  and  at  various stages of development,  all  of
which  will  make the task of comparative investigation  and
analysis  of such business opportunities extremely difficult
and complex.

Management believes that the Company may be able to  benefit
from  the  use  of  "leverage" to acquire a target  company.
Leveraging a transaction involves acquiring a business while
incurring significant indebtedness for a large percentage of
the  purchase  price  of  that business.  Through  leveraged
transactions, the Company would be required to use  less  of
its  available  funds  to  acquire  a  target  company  and,
therefore, could commit those funds to the operations of the
business, to combinations with other target companies, or to
other  activities.  The borrowing involved  in  a  leveraged
transaction will ordinarily be secured by the assets of  the
acquired  business. If that business is not able to generate
sufficient revenues to make payments on the debt incurred by
the  Company to acquire that business, the lender  would  be
able  to  exercise  the  remedies  provided  by  law  or  by
contract.  These leveraging techniques, while  reducing  the
amount  of  funds that the Company must commit to acquire  a
business, may correspondingly increase the risk of  loss  to
the  Company. No assurance can be given as to the  terms  or
availability  of  financing  for  any  acquisition  by   the
Company.  During periods when interest rates are  relatively
high,  the benefits of leveraging are not as great as during
periods  of lower interest rates, because the investment  in
the  business  held  on  a  leveraged  basis  will  only  be
profitable if it generates sufficient revenues to cover  the
related debt and other costs of the financing. Lenders  from
which  the  Company  may  obtain funds  for  purposes  of  a
leveraged  buy-out  may impose restrictions  on  the  future
borrowing,  distribution,  and  operating  policies  of  the
Company.  It  is  not possible at this time to  predict  the
restrictions,  if  any, which lenders  may  impose,  or  the
impact thereof on the Company.

The  Company has insufficient capital with which to  provide
the  owners of businesses significant cash or other  assets.
Management  believes  the  Company  will  offer  owners   of
businesses   the  opportunity  to  acquire   a   controlling
ownership interest in a public company at substantially less
cost than is required to conduct an initial public offering.
The   owners   of   the  businesses  will,  however,   incur
significant post-merger or acquisition registration costs in
the  event  they wish to register a portion of their  shares
for subsequent sale. The Company will also incur significant
legal   and   accounting  costs  in  connection   with   the
acquisition of a business opportunity, including  the  costs
of   preparing   post-effective   amendments,   Forms   8-K,
agreements, and related reports and documents. Nevertheless,
the officers and directors of the Company have not conducted
market research and are not aware of statistical data  which
would  support  the  perceived  benefits  of  a  merger   or
acquisition transaction for the owners of a businesses.  The
Company does not intend to make any loans to any prospective
merger  or  acquisition candidates or to unaffiliated  third
parties.

The  Company  will not restrict its search for any  specific
kind  of  firms, but may acquire a venture which is  in  its
preliminary  or  development  stage,  which  is  already  in
operation,  or  in  essentially any stage of  its  corporate
life. It is impossible to predict at this time the status of
any  business  in which the Company may become  engaged,  in
that such business may need to seek additional capital,  may
desire to have its shares publicly traded, or may seek other
perceived  advantages which the Company may offer.  However,
the  Company does not intend to obtain funds in one or  more
private  placements to finance the operation of any acquired
business  opportunity until such time  as  the  Company  has
successfully  consummated such a merger or acquisition.  The
Company  also  has no plans to conduct any  offerings  under
Regulation S.

                  Sources of Opportunities

The  Company will seek a potential business opportunity from
all  known  sources, but will rely principally  on  personal
contacts  of its officers and directors as well as  indirect
associations   between   them   and   other   business   and
professional  people. It is not presently  anticipated  that
the  Company will engage professional firms specializing  in
business acquisitions or reorganizations.

Management,  while  not  especially experienced  in  matters
relating to the new business of the Company, will rely  upon
their  own efforts and, to a much lesser extent, the efforts
of the Company's shareholders, in accomplishing the business
purposes  of  the  Company. It is not anticipated  that  any
outside  consultants or advisors, other than  the  Company's
legal  counsel  and  accountants, will be  utilized  by  the
Company   to  effectuate  its  business  purposes  described
herein.  However, if the Company does retain such an outside
consultant  or  advisor, any cash fee earned by  such  party
will  need  to be paid by the prospective merger/acquisition
candidate, as the Company has no cash assets with  which  to
pay   such  obligation.  There  have  been  no  discussions,
understandings,  contracts or agreements  with  any  outside
consultants and none are anticipated in the future.  In  the
past,  the  Company's  management  has  never  used  outside
consultants  or  advisors in connection  with  a  merger  or
acquisition.

As  is  customary  in the industry, the Company  may  pay  a
finder's  fee for locating an acquisition prospect.  If  any
such fee is paid, it will be approved by the Company's Board
of  Directors  and will be in accordance with  the  industry
standards. Such fees are customarily between 1%  and  5%  of
the  size of the transaction, based upon a sliding scale  of
the amount involved. Such fees are typically in the range of
5%  on  a  $1,000,000 transaction ratably down to  1%  in  a
$4,000,000 transaction. Management has adopted a policy that
such  a finder's fee or real estate brokerage fee could,  in
certain  circumstances,  be paid to any  employee,  officer,
director  or  5% shareholder of the Company, if such  person
plays  a  material  role in bringing a  transaction  to  the
Company.

The  Company will not have sufficient funds to undertake any
significant development, marketing, and manufacturing of any
products  which may be acquired. Accordingly, if it acquires
the  rights to a product, rather than entering into a merger
or  acquisition, it most likely would need to seek  debt  or
equity  financing or obtain funding from third  parties,  in
exchange for which the Company would probably be required to
give  up  a  substantial  portion of  its  interest  in  any
acquired  product. There is no assurance  that  the  Company
will  be  able either to obtain additional financing  or  to
interest third parties in providing funding for the  further
development,  marketing and manufacturing  of  any  products
acquired.

                 Evaluation of Opportunities

The   analysis  of  new  business  opportunities   will   be
undertaken  by or under the supervision of the officers  and
directors  of the Company. Management intends to concentrate
on  identifying prospective business opportunities which may
be  brought  to  its attention through present  associations
with   management.   In   analyzing   prospective   business
opportunities,   management  will  consider,   among   other
factors, such matters as;
     1.   the  available technical, financial and managerial
          resources
     2.   working capital and other financial requirements
     3.   history of operation, if any
     4.   prospects for the future
     5.   present and expected competition
     6.   the quality and experience of management  services
          which  may  be  available  and  the  depth of that
          management
     7.   the potential for further research, development or
          exploration
     8.   specific  risk  factors  not  now  foreseeable but
          which  then  may  be  anticipated  to  impact  the
          proposed activities of the Company
     9.   the potential for growth or expansion
     10.  the potential for profit
     11.  the  perceived public recognition or acceptance of
          products, services or trades
     12.  name identification

Management  will  meet personally with  management  and  key
personnel of the firm sponsoring the business opportunity as
part  of  their  investigation. To the extent possible,  the
Company  intends  to  utilize written reports  and  personal
investigation  to  evaluate the above factors.  The  Company
will not acquire or merge with any company for which audited
financial statements cannot be obtained.

Opportunities in which the Company participates will present
certain risks, many of which cannot be identified adequately
prior  to  selecting a specific opportunity.  The  Company's
shareholders  must,  therefore,  depend  on  Management   to
identify  and  evaluate  such  risks.  Promoters   of   some
opportunities  may  have  been unable  to  develop  a  going
concern  or may present a business in its development  stage
(in  that it has not generated significant revenues from its
principal   business  activities  prior  to  the   Company's
participation.)  Even  after  the  Company's  participation,
there  is a risk that the combined enterprise may not become
a  going  concern  or advance beyond the development  stage.
Other  opportunities may involve new and untested  products,
processes, or market strategies which may not succeed.  Such
risks  will  be  assumed by the Company and, therefore,  its
shareholders.

The investigation of specific business opportunities and the
negotiation, drafting, and execution of relevant agreements,
disclosure  documents,  and other instruments  will  require
substantial  management  time  and  attention  as  well   as
substantial costs for accountants, attorneys, and others. If
a decision is made not to participate in a specific business
opportunity  the costs incurred in the related investigation
would  not be recoverable. Furthermore, even if an agreement
is  reached  for  the participation in a  specific  business
opportunity, the failure to consummate that transaction  may
result  in  the  loss by the Company of  the  related  costs
incurred.

There is the additional risk that the Company will not  find
a  suitable target. Management does not believe the  Company
will  generate  revenue  without finding  and  completing  a
transaction  with  a  suitable target company.  If  no  such
target  is  found, therefore, no return on an investment  in
the  Company  will  be realized, and there  will  not,  most
likely, be a market for the Company's stock.

                Acquisition of Opportunities

In  implementing  a  structure  for  a  particular  business
acquisition,  the Company may become a party  to  a  merger,
consolidation, reorganization, joint venture, franchise,  or
licensing  agreement with another corporation or entity.  It
may  also  purchase stock or assets of an existing business.
Once  a  transaction is complete, it is  possible  that  the
present management and shareholders of the Company will  not
be in control of the Company. In addition, a majority or all
of  the Company's officers and directors may, as part of the
terms  of  the  transaction, resign and be replaced  by  new
officers  and  directors without a  vote  of  the  Company's
shareholders.

It  is  anticipated  that  securities  issued  in  any  such
reorganization  would  be issued in reliance  on  exemptions
from   registration  under  applicable  Federal  and   state
securities  laws.  In  some  circumstances,  however,  as  a
negotiated  element  of this transaction,  the  Company  may
agree  to  register such securities either at the  time  the
transaction is consummated, under certain conditions, or  at
specified  time  thereafter.  The  issuance  of  substantial
additional  securities  and their potential  sale  into  any
trading  market  which may develop in the  Company's  Common
Stock may have a depressive effect on such market.

While the actual terms of a transaction to which the Company
may  be a party cannot be predicted, it may be expected that
the  parties  to  the  business  transaction  will  find  it
desirable  to  avoid  the creation of a  taxable  event  and
thereby structure the acquisition in a so called "tax  free"
reorganization  under  Sections  368(a)(1)  or  351  of  the
Internal  Revenue Code of 1986, as amended (the "Code").  In
order to obtain tax free treatment under the Code, it may be
necessary for the owners of the acquired business to own 80%
or more of the voting stock of the surviving entity. In such
event,  the shareholders of the Company, including investors
in  this offering, would retain less than 20% of the  issued
and  outstanding shares of the surviving entity, which could
result  in  significant  dilution  in  the  equity  of  such
shareholders.

As   part  of  the  Company's  investigation,  officers  and
directors   of   the  Company  will  meet  personally   with
management and key personnel, may visit and inspect material
facilities,  obtain independent analysis or verification  of
certain information provided, check references of management
and  key  personnel, and take other reasonable investigative
measures,  to the extent of the Company's limited  financial
resources and management expertise.

The   manner  in  which  the  Company  participates  in   an
opportunity with a target company will depend on the  nature
of  the opportunity, the respective needs and desires of the
Company   and   other   parties,  the  management   of   the
opportunity,  and the relative negotiating strength  of  the
Company and such other management.

With  respect  to any mergers or acquisitions,  negotiations
with target company management will be expected to focus  on
the  percentage  of the Company which the  target  company's
shareholders   would   acquire   in   exchange   for   their
shareholdings in the target company. Depending  upon,  among
other  things, the target company's assets and  liabilities,
the  Company's shareholders will, in all likelihood, hold  a
lesser   percentage  ownership  interest  in   the   Company
following   any   merger  or  acquisition.  The   percentage
ownership  may  be subject to significant reduction  in  the
event the Company acquires a target company with substantial
assets.  Any  merger or acquisition effected by the  Company
can be expected to have a significant dilutive effect on the
percentage   of   shares   held  by   the   Company's   then
shareholders, including purchasers in this offering.

Management has advanced, and will continue to advance, funds
which  shall  be  used  by the Company  in  identifying  and
pursuing   agreements  with  target  companies.   Management
anticipates  that  these  funds  will  be  repaid  from  the
proceeds of any agreement with the target company, and  that
any  such  agreement  may, in fact, be contingent  upon  the
repayment of those funds.

               Investment Company Act of 1940

Although the Company will be subject to regulation under the
Securities  Act of 1933 and the Securities Exchange  Act  of
1934, management believes the Company will not be subject to
regulation under the Investment Company Act of 1940  insofar
as  the  Company  will not be engaged  in  the  business  of
investing or trading in securities. In the event the Company
engages in business combinations which result in the Company
holding   passive  investment  interests  in  a  number   of
entities,  the Company could be subject to regulation  under
the  Investment  Company Act of 1940.  In  such  event,  the
Company  would  be  required to register  as  an  investment
company   and   could  be  expected  to  incur   significant
registration and compliance costs. The Company has  obtained
no  formal  determination from the Securities  and  Exchange
Commission  as  to  the  status of  the  Company  under  the
Investment  Company  Act  of  1940  and,  consequently,  any
violation of such Act would subject the Company to  material
adverse consequences.

ITEM 7.   FINANCIAL STATEMENTS.

The  Audited Financial Statements as of December. 31,  2000,
and December 31, 1999
                   TABLE OF CONTENTS


                                                     Page Number

INDEPENDENT ACCOUNTANT'S REPORT                           1

FINANCIAL STATEMENT

        Balance Sheets                                    2


        Statements of Operations and Deficit
           Accumulated During the Development Stage       3


        Statement of Changes in Stockholders' Equity      4


        Statements of Cash Flows                          5


        Notes to the Financial Statements               6-7


David E. Coffey
3651 Lindell Road, Suite I
Las Vegas, NV 89103
____________________________________________________________
Certified Public Accountant



       INDEPENDENT ACCOUNTANT'S REPORT


To the Board of Directors and Stockholders
of Kenroy Communications Corp.
Las Vegas, Nevada



I have audited the accompanying balance sheets of Kenroy
Communications Corp. (a development stage company) as of
December. 31, 2000, and December 31, 1999, and the related
statements of operations, cash flows, and changes in
stockholders' equity for the years then ended, as well as
the cumulative period from December 31, 1998 (date of
inception) to December 31, 2000.  These statements are the
responsibility of Kenroy   Communications Corp.'s
management.  My responsibility is to express an opinion on
these financial statements based on my audit.

I conducted my audit in accordance with generally accepted
auditing standards.  Those standards require that I plan and
perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement.  An audit includes  examining, on a test
basis, evidence supporting the amounts and disclosures in
the financial statements.  An audit also includes  assessing
the accounting principles used and significant estimates
made by management, as well as evaluating the overall
financial statement presentation.  I believe that my audit
provides a reasonable basis for my opinion.

In my opinion, the accompanying financial statements present
fairly, in all material respects, the financial position of
Kenroy Communications Corp. as of December 31, 2000, and
December 31, 1999, and the results of operations, cash
flows, and changes in stockholders'  equity for the periods
then ended, as well as the cumulative period from December
31, 1998, in conformity with generally accepted accounting
principles.



David E. Coffey, C. P. A.
Las Vegas, Nevada
February 16, 2001

KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
BALANCE SHEETS
<TABLE>
<S>                                          <C>              <C>
                                                  December 31,    December 31,
                                                      2000            1999
                                                 -------------    ------------
ASSETS

Cash                                                 $      41       $       41
                                                     ---------       ----------
   Total Assets                                             41               41
                                                    ==========       ==========

LIABILITIES & STOCKHOLDERS' EQUITY

Accounts payable                                         5,400              400
                                                     ---------       ----------
   Total Liabilities                                     5,400              400

Stockholders' Equity
 Common stock, authorized 50,000,000
  shares at $.001 par value, issued and
  outstanding 220,000 shares                               220              220
  Additional paid-in capital                             4,630            4,630
 Deficit accumulated during the
  development stage                                   (10,209)          (5,209)
                                                      --------       ----------
   Total Stockholders' Equity                          (5,359)            (359)


   Total Liabilities and Stockholders'
Equity                                              $       41       $       41
                                                    ==========       ==========
</TABLE>
The accompanying notes are an integral part of these
financial statements.

                           -  2  -


KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
( With Cumulative Figures From Inception )
<TABLE>
<S>                            <C>             <C>             <C>
                                  Year ended      Year ended      From Inception,
                                                                  Dec. 31, 1998, to
                                  Dec. 31, 2000   Dec. 31, 1999   Dec. 31, 2000
                                  -----------     ------------    ----------------
Income                              $        0        $       0    $        0

Expenses
   Organizational expense                    0                0           400
   Office and administrative                 0            3,750         3,750
    Office expenses                          0               59            59
    Professional fees                    5,000            1,000         6,000
                                   -----------       ----------   -----------
Total expenses                           5,000            4,809        10,209

Net loss                               (5,000)          (4,809)      (10,209)
                                                                  ===========
Retained earnings,
beginning of period                    (5,209)            (400)
                                   -----------      -----------
Deficit accumulated during
the development stage              $  (10,209)      $   (5,209)
                                   ===========      ===========


Earnings ( loss ) per share
 assuming dilution:
Net loss                           $    (0.02)      $    (0.03)   $    (0.05)
                                   ===========      ===========   ===========
Weighted average shares
outstanding                            220,000          189,167       200,400
                                   ===========      ===========   ===========
</TABLE>
The accompanying notes are an integral part of these financial
statements.

                            - 3 -

KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FROM DECEMBER 31, 1998,  ( Date of Inception ) TO DECEMBER 31, 2000

<TABLE>
<S>                                   <C>           <C>           <C>           <C>              <C>
                                             Common Stock       Additional    Deficit accumul- Total
                                         Shares        Amount        Paid-in       ated during the
                                                                     Capital       development
                                                                                   stage
                                         ----------    ---------     ----------     -----------     ----------
                                                         $             $              $             $
Balance,
December 31, 1998                              ----           ----         ----            ----         ----

Issuance of common stock for cash
December, 1998                              100,000            100            0               0          100

Less net loss                                     0              0            0           (400)        (400)
                                         ----------     ----------   ----------     -----------   ----------
Balance,
December 31, 1998                           100,000            100            0           (400)        (300)

Issuance of common stock for cash
March, 1999                                 100,000            100        9,900               0       10,000

Less offering costs                               0              0      (9,250)               0      (9,250)

Issuance of common stock for cash
September, 1999                              15,000             15        2,985               0        3,000

Issuance of common stock for cash
November, 1999                                5,000              5          995               0        1,000

Less net loss                                     0              0            0         (4,809)      (4,809)
                                         ----------     ----------   ----------     -----------   ----------
Balance,
December 31,1999                            220,000            220        4,630         (5,209)        (359)

Less net loss                                     0              0            0         (5,000)      (5,000)
                                         ----------     ----------   ----------     -----------   ----------
Balance,
September 30, 2000                         220,000     $      220   $    4,630     $  (10,209)   $  (5,359)
                                         ==========     ==========   ==========     ===========   ==========
</TABLE>
The accompanying notes are an integral part of these financial statements

                                      - 4 -

KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF CASH FLOWS
( With Cumulative Figures From Inception )

<TABLE>
<S>                                <C>               <C>            <C>
                                   Year ended        Year ended         From Inception,
                                                                     Dec. 31, 1998, to
                                   Dec. 31, 2000     Dec. 31, 1999   Dec. 31, 2000
                                   -------------     ------------    --------------
CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net Loss                               $  (5,000)       $ (4,809)      $  (10,209)
Non-cash items included in net                  0               0                0
loss
Adjustments to reconcile net loss
to
 cash used by operating activity
  Accounts payable                          5,000               0            5,400
                                       ----------       ---------      -----------
   NET CASH PROVIDED BY
   OPERATING ACTIVITIES                         0         (4,809)          (4,809)

CASH FLOWS USED BY
INVESTING ACTIVITIES                            0               0                0
                                       ----------       ---------      -----------
   NET CASH USED BY
   INVESTING ACTIVITIES                         0               0                0

CASH FLOWS FROM FINANCING
ACTIVITIES
  Sale of common stock                          0             120              220
  Paid-in capital                               0          13,880           13,880
  Less offering costs                           0         (9,250)          (9,250)
                                       ----------       ---------      -----------
   NET CASH PROVIDED BY
   FINANCING ACTIVITIES                         0           4,750            4,850
                                       ----------       ---------        ---------
   NET INCREASE IN CASH                         0            (59)               41
                                                                         =========
CASH AT BEGINNING OF PERIOD                    41             100
                                       ----------       ---------
CASH AT END OF PERIOD                  $       41       $      41
                                       ==========      ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.

                            - 5 -

KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND DECEMBER 31, 1999


NOTE A    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company was incorporated on December 31, 1998, under the
laws of the State of Nevada. The business purpose of the
Company is to develop computer software for the enhancement
of communications.

The Company will adopt accounting policies and procedures
based upon the nature of future transactions.

NOTE B    OFFERING COSTS

Offering costs are reported as a reduction in the amount of
paid-in capital received for sale of the shares.

NOTE C    EARNINGS (LOSS) PER SHARE

Basic EPS is determined using net income divided by the
weighted average shares outstanding during the period.
Diluted EPS is computed by dividing net income by the
weighted average shares outstanding, assuming all dilutive
potential common shares were issued. Since the Company has
no common shares that are potentially issuable, such as
stock options, convertible securities or warrants, basic and
diluted EPS are the same.

NOTE D    STOCK OFFERINGS

In March of 1999, the Company completed the sale of 100,000
shares of its common stock at $.10 per share for $10,000.
The proceeds were to be used for software development and
for working capital.

In September of 1999, the Company sold 15,000 shares of its
common stock at $.20 per share for a total of $3,000. The
proceeds were to be used for working capital.

In November of 1999, the Company sold 5,000 shares of its
common stock at $.20 per share for a total of $1,000. The
proceeds were to be used for working capital.
                            - 6 -




KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND DECEMBER 31, 1999
(continued)

NOTE D    STOCK OFFERINGS (continued)

          All of the above shares were issued pursuant to an
          exemption from registration requirements under
          Section 4 (2) of the Securities Act.




                            - 7 -


ITEM 8.   CHANGES  IN AND DISAGREEMENTS WITH ACCOUNTANTS  ON
          ACCOUNTING AND FINANCIAL DISCLOSURE.

Since  the  inception  of  Kenroy  Communications  Corp.  on
December 31, 1998, the principal independent accountant  for
the Company has neither resigned nor been dismissed.

                          PART III

ITEM 9.   DIRECTORS,  EXECUTIVE  OFFICERS,  PROMOTERS,   AND
          CONTROL PERSONS

The  members of the Board of Directors of the Company  serve
until  the next annual meeting of the stockholders, or until
their  successors have been elected. The officers  serve  at
the pleasure of the Board of Directors.

There  are  no  agreements for any officer  or  director  to
resign  at the request of any other person, and none of  the
officers  or directors named below are acting on behalf  of,
or at the direction of, any other person.

The  Company's officers and directors will devote their time
to  the  business on an "as-needed" basis, which is expected
to require 5-10 hours per month.

Information  as to the directors and executive  officers  of
the Company is as follows:

Name/Address             Age    Position
Ken Royceton                    President/Secretary/Treasurer/
1350 E. Flamingo Rd.,           Director
Suite 688
Las Vegas, NV  89119

Ken Royceton; President/Secretary/Treasurer

Mr.   Royceton   has  worked  as  a  professional   computer
technician independently in Nevada for the past twelve years
solving hardware, software and system problems.

There  is no family relationship between any of the officers
and  directors  of  the  Company.  The  Company's  Board  of
Directors has not established any committees.

ITEM 10.  EXECUTIVE COMPENSATION

The Company's sole officer and director has not received any
compensation  for his respective services  rendered  to  the
Company, nor has he received such compensation in the  past.
He  has  agreed to act without compensation until authorized
by  the  Board of Directors, which is not expected to  occur
until  the Registrant has generated revenues from operations
after  consummation of a merger or acquisition.  As  of  the
date  of  this  registration statement, the Company  has  no
funds  available to pay the director. Further, the  director
is  not  accruing any compensation pursuant to any agreement
with the Company.

It   is   possible  that,  after  the  Company  successfully
consummates  a  merger or acquisition with  an  unaffiliated
entity,  that entity may desire to employ or retain  one  or
more members of the Company's management for the purposes of
providing  services  to the surviving entity,  or  otherwise
provide  other  compensation to such persons.  However,  the
Company has adopted a policy whereby the offer of any  post-
transaction remuneration to members of management  will  not
be  a  consideration in the Company's decision to  undertake
any  proposed  transaction. Each member  of  management  has
agreed  to disclose to the Company's Board of Directors  any
discussions concerning possible compensation to be  paid  to
them by any entity which proposes to undertake a transaction
with the Company and further, to abstain from voting on such
transaction.  Therefore,  as a  practical  matter,  if  each
member  of  the  Company's  Board of  Directors  is  offered
compensation  in  any  form from any prospective  merger  or
acquisition candidate, the proposed transaction will not  be
approved by the Company's Board of Directors as a result  of
the  inability of the Board to affirmatively approve such  a
transaction.

It  is possible that persons associated with management  may
refer  a prospective merger or acquisition candidate to  the
Company.  In the event the Company consummates a transaction
with any entity referred by associates of management, it  is
possible  that  such  an associate will be  compensated  for
their  referral  in  the  form of  a  finder's  fee.  It  is
anticipated  that this fee will be either  in  the  form  of
restricted common stock issued by the Company as part of the
terms of the proposed transaction, or will be in the form of
cash consideration. However, if such compensation is in  the
form  of  cash,  such  payment  will  be  tendered  by   the
acquisition  or  merger candidate, because the  Company  has
insufficient cash available. The amount of such finder's fee
cannot  be  determined as of the date of  this  registration
statement, but is expected to be comparable to consideration
normally  paid in like transactions. No member of management
of the Company will receive any finders fee, either directly
or  indirectly, as a result of their respective  efforts  to
implement  the  Company's  business  plan  outlined  herein.
Persons  "associated" with management is meant to  refer  to
persons  with  whom management may have had  other  business
dealings,  but who are not affiliated with or  relatives  of
management.

No  retirement,  pension, profit sharing,  stock  option  or
insurance  programs  or  other similar  programs  have  been
adopted by the Registrant for the benefit of its employees.

ITEM 11.  SECURITY  OWNERSHIP OF CERTAIN  BENEFICIAL  OWNERS
          AND MANAGEMENT.

There  are  no persons known to the Company, as of  February
23,  2001, to be a beneficial owner of five percent (5%)  or
more  of  the  Company's  common  stock,  by  the  Company's
directors   individually,  and  by  all  of  the   Company's
directors and executive officers as a group.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Not Applicable.

ITEM 13.  EXHIBITS.

EXHIBITS

3.1   The  exhibit consisting of the Company's  Articles  of
Incorporation is attached to the Company's Form 10-SB, filed
on  July 24, 2000. This exhibit is incorporated by reference
to that Form.

3.2   The  exhibit  consisting of the  Company's  Bylaws  is
attached  to  the Company's Form 10-SB, filed  on  July  24,
2000.  This  exhibit is incorporated by  reference  to  that
Form.
                         SIGNATURES

In  accordance  with Section 13 or 15(d) of  the  Securities
Exchange Act, the Registrant caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
                           Kenroy Communications Corp.


                           By: /s/ Ken Royceton
                              Ken Royceton, President
                           Date: 03/01, 2001