UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 For the quarterly period ended March 31, 2008
                                       or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934
For the transition period from              to

                        Commission File Number: 000-50502

                           PREMIER ALLIANCE GROUP, INC
             (Exact Name of registrant as Specified in Its Charter)

Nevada                                     20-0443575
(State of other jurisdiction               (I.R.S. Employer Identification No.)
of incorporation ororganization)


                                4521 Sharon Road
                                    Suite 300
                         Charlotte, North Carolina 28211
                    (Address of principal executive offices)

                                 (704) 521-8077
                         (Registrant's telephone number)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
[X] Yes [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer", "accelerated filer",
"non-accelerated filer", and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.

       Large accelerated filer [ ]              Accelerated filer [ ]

       Non-accelerated filer   [ ]              Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
[ ] Yes [X] No

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date: 5,867,945 shares of common
stock were outstanding as of May 05, 2008.



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                                Table of Contents
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                                                                                     Page

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

     Balance Sheet as of March 31, 2008 (Unaudited) and December 31, 2007 (Audited) .. 3

     Statements of Operations for the Three Months Ended March 31, 2008 (Unaudited)
     and March 31, 2007 (Unaudited) .................................................. 5

     Statements of Cash Flows for Three Months Ended March 31, 2008 (Unaudited)
     and March 31, 2007 (Unaudited) .................................................. 6

     Notes to Condensed Financial Statements (Unaudited) ............................. 7

Item 2. Management's Discussion and Analysis or Plan of Operation .................... 9

Item 3. Quantitative and Qualitative Disclosures About Market Risk ...................14

Item 4. Controls and Procedures ......................................................14

Item 4T. Controls and Procedures .....................................................15

PART II. OTHER INFORMATION

Item 1. Legal Proceedings ............................................................16

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds ..................16

Item 3. Defaults Upon Senior Securities ..............................................16

Item 4. Submission of Matters to a Vote of Security Holders ..........................16

Item 5. Other Information ............................................................16

Item 6. Exhibits .....................................................................16

Signatures ...........................................................................17

Certifications .......................................................................18
</TABLE>


<PAGE>


                          PREMIER ALLIANCE GROUP, INC.
                                 BALANCE SHEETS


                                                    (Unaudited)
                                                     March 31,     December 31,
                                                       2008           2007
                                                    ----------     ----------
                ASSETS

CURRENT ASSETS:
  Cash                                             $   104,906    $   104,551
  Accounts receivable                                1,040,679        931,649
  Marketable securities                                  8,076         12,380
  Deferred income taxes                                 33,000         24,000
  Prepaid expenses                                      25,496         38,602
                                                   -----------    -----------


    Total current assets                             1,212,157      1,111,182




PROPERTY AND EQUIPMENT - at cost less
  accumulated depreciation                              17,234         20,594


OTHER ASSETS:
  Goodwill                                           2,231,284      2,231,284
  Investment in equity-method investee                 208,386        211,110
  Investment in cost-method investee                   100,000        100,000
  Cash surrender value of officers' life insurance     504,947        570,545
  Deferred income taxes                                 18,000         17,000
  Deposits and other assets                              4,000          4,000
                                                   -----------    -----------

                                                     3,066,617      3,133,939






                                                   $ 4,296,008    $ 4,265,715
                                                   ===========    ===========



                        See Notes to Financial Statements
                                        3


<PAGE>




                                                   (Unaudited)
                                                     March 31,    December 31,
                                                      2008           2007
                                                   ----------     ----------

   LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Note payable                                    $   568,078    $   485,078
  Accounts payable                                    339,079        288,623
  Accrued expenses                                    322,080        311,547
  Income taxes payable                                    -            4,472
                                                  -----------    -----------


    Total current liabilities                       1,229,237      1,089,720


COMMITMENTS AND CONTINGENCIES                             -              -


STOCKHOLDERS' EQUITY:
  Class A convertible preferred stock, $.001
    par value, 5,000,000 shares authorized,
    560,746 shares issued and outstanding                 561            561
  Common stock, $.001 par value, 45,000,000
    shares authorized, 5,867,945 shares
    issued and outstanding                              5,868          5,868
  Additional paid-in capital                        3,238,639      3,238,639
  Accumulated deficit                                (178,297)       (69,073)
                                                  -----------    -----------


                                                    3,066,771      3,175,995







                                                  $ 4,296,008     $ 4,265,715
                                                  ===========     ===========

                        See Notes to Financial Statements
                                        4

<PAGE>

                          PREMIER ALLIANCE GROUP, INC.
                            STATEMENTS OF OPERATIONS
                   THREE MONTHS ENDED MARCH 31, 2008 AND 2007
                                   (Unaudited)



                                                      2008           2007
                                                  -----------    -----------

NET REVENUE                                       $ 2,068,181    $ 1,817,255
                                                  -----------    -----------


OPERATING EXPENSES:
  Cost of revenues                                  1,550,563      1,301,742
  Selling, general and administrative                 565,322        521,084
  Depreciation                                          3,359          1,886
                                                  -----------    -----------

   Total operating expenses                         2,119,244      1,824,712
                                                  -----------    -----------


(LOSS) INCOME FROM OPERATIONS                         (51,063)        (7,457)
                                                  -----------    -----------

OTHER INCOME (EXPENSE):
  Interest expense, net                                (9,765)       (10,384)
  (Loss) gain on marketable securities                 (4,305)         6,845
  Officers' life insurance (expense) income           (65,598)        23,595
  Equity in net loss of equity-method investee         (2,724)        (4,531)
  Other income                                            -              -
                                                   ----------     ----------

   Total other (expense) income                       (82,392)        15,525
                                                  -----------    -----------

NET (LOSS) INCOME BEFORE INCOME TAXES                (133,455)         8,068

INCOME TAX BENEFIT                                     24,231          4,637
                                                  -----------    -----------

NET (LOSS) INCOME                                 $  (109,224)   $    12,705
                                                  ===========    ===========

Net (loss) income per share, basic and diluted    $     (0.02)   $      0.00
                                                  ===========    ===========

Weighted average number of shares,
  basic and diluted                                 5,867,945      5,832,111
                                                  ===========    ===========

                        See Notes to Financial Statements
                                        5


<PAGE>


                          PREMIER ALLIANCE GROUP, INC.
                            STATEMENTS OF CASH FLOWS
                   THREE MONTHS ENDED MARCH 31, 2008 AND 2007
                                   (Unaudited)


                                                      2008           2007
                                                   ----------     ----------
Cash flows from operating activities:
  Net (loss) income                               $  (109,224)   $    12,705
  Adjustments to reconcile net income
    to net cash provided by operating activities:
      Depreciation                                      3,359          1,886
      Decrease (increase) of cash surrender value
        of officers' life insurance                    65,598        (23,595)
      Deferred income taxes                           (10,000)        (1,000)
      Equity in loss of equity-method investee          2,724          4,531
    Changes in operating assets and liabilities:
      Increase in accounts receivable                (109,030)      (135,107)
      Increase in marketable securities                 4,304         (6,845)
      Decrease in prepaid expenses                     13,106         17,332
      Decrease in deposits and other assets               -              225
      Increase in accounts payable                     50,457         66,338
      Increase in accrued expenses                     10,533         37,159
      Decrease in income taxes payable                 (4,472)        (3,637)
                                                   ----------     ----------
    Net cash used in operating activities             (82,645)       (30,008)
                                                   ----------     ----------


Cash flows from investing activities:
  Purchases of property and equipment                     -           (1,423)
                                                    ---------     ----------
    Net cash used in investing activities                 -           (1,423)
                                                    ---------     ----------


Cash flows from financing activities:
  Proceeds from line of credit                         83,000        130,000
                                                   ----------     ----------
    Net cash provided by financing activities          83,000        130,000
                                                   ----------     ----------


Net increase in cash                                      355         98,569


Cash - beginning of period                            104,551         49,439
                                                   ----------      ---------


Cash - end of period                               $  104,906      $  148,008
                                                   ==========      ==========


                        See Notes to Financial Statements
                                        6

<PAGE>



                          PREMIER ALLIANCE GROUP, INC.
                          NOTES TO FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 2008 AND 2007
                                   (Unaudited)



Note 1 - Basis of Presentation:


     The accompanying unaudited interim financial statements of Premier Alliance
Group, Inc. (the "Company") have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of
the Securities and Exchange Commission ("SEC") and should be read in conjunction
with the audited financial statements and notes thereto contained in the
Company's Annual Report filed with the SEC on Form 10-KSB. In the opinion of
management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the results of
operations for the interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative of the
results expected for the full year. Notes to the financial statements which
would substantially duplicate the disclosure contained in the audited financial
statements for fiscal year 2007 as reported in the 10-KSB have been omitted.



Note 2 - Organization and Business:


     Premier Alliance Group, Inc. ("Old Premier") was organized under the laws
of North Carolina in June, 1995. Old Premier provided information technology
solutions and consulting services to customers operating in a variety of
industries throughout the United States.


     On November 5, 2004, Old Premier and its shareholders consummated a share
exchange agreement with the Company. The Company was an inactive public company
that was organized in Nevada in January, 2000. Pursuant to the exchange
agreement, shareholders of Old Premier were issued 36,176,863 shares of common
stock and 4,323,157 shares of Class A convertible preferred stock in exchange
for all of their outstanding common stock and preferred stock in Old Premier. As
a result of the share exchange agreement, the shareholders of Old Premier
acquired a majority of the issued and outstanding common and preferred stock of
the merged company. For accounting purposes, the transaction was accounted for
as a reverse merger. Old Premier was merged into the Company and immediately
after the merger, the Company was renamed Premier Alliance Group, Inc.



Note 3 - Cash and Cash Equivalents:


     Cash equivalents consist of all highly liquid investments with an original
maturity of three months or less. As a result of the Company's cash management
system, checks issued but not presented to the banks for payment may create
negative book cash balances. Such negative balances are included in trade
accounts payable and totaled $109,651 at March 31, 2008 and $119,079 at December
31, 2007.


                                        7

<PAGE>

Note 4 - Class A Convertible Preferred Stock:


     The Class A Convertible Preferred Stock accrues 8 percent per annum
dividends on a stated "dividend value". "Dividend value" is the amount equal to
$0.98 per share for each share of Class A Convertible Preferred Stock
outstanding. Dividends are payable annually in arrears. During 2007, the Company
declared and paid dividends of $43,400 ($0.07 per preferred share). At March 31,
2008, $32,550 of dividends have accrued on these shares. However, they are
unrecorded on the Company's books until declared.





                                        8


<PAGE>



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

This quarterly report on Form 10-QSB may include "forward-looking statements"
within the meaning of section 27(a) of the Securities Act of 1933 and section
21(e) of the Securities Exchange Act of 1934. We intend all forward-looking
statements to be covered by the safe-harbor provisions for forward-looking
statements. All statements regarding our expected financial position and
operating results, our business strategy, our financing plans, and the outcome
of any contingencies constitute forward-looking statements. All forward-looking
statements are subject to risks and uncertainties, including without limitation
those described in "Risk Factors" in our annual report on Form 10-KSB, that
could cause actual results to differ materially from described in or implied by
any forward-looking statements.

The following discussion should be read in conjunction with our financial
statements and the related notes included in this Form 10-QSB.

Operations

Our business consists of providing information technology, or "IT," services to
our clients. Our services typically encompass the IT business-solution software
development life cycle. The IT business-solution software development life cycle
references industry standard steps typically followed in developing or creating
software (the blueprint methodology), including phases for planning, developing,
implementing, managing, and ultimately maintaining, the IT solution. It is this
process that creates quality software while minimizing issues for customers. A
typical customer is an organization with complex information and data-processing
requirements. Technology is crucial in all industries and therefore we market
and sell to many sectors of business. We promote our services through our two
delivery channels, IT Services and IT Solutions divisions. These divisions
operate as one from an accounting and overall management perspective, however
they are differentiated from a marketing and customer presentation perspective
only. Management reviews and oversees the divisions as one combined entity,
utilizes resources across both areas, and makes operational assessments and
plans together. In light of this, Financial Accounting Standards Board (FASB)
Statement of Financial Accounting Standards (SFAS) No. 131 "Business segments"
does not require separate financial reporting and the 2 channels are
consolidated in all financial report presentations.

     o   IT Services Division--This division provides staffing and consulting
         services across a broad range of skills and expertise. It assists our
         customers by providing skilled business and technical expertise to help
         lead and train our customers, and it can provide the manpower necessary
         to supplement project efforts. In most cases our work is on a
         time-and-materials basis. Because of the type of expertise and the
         complexity of technology, customers typically commit to long-term
         contracts that are typically a minimum of 9 months in which our staff
         work on site at client facilities under the daily direction of the
         client management. It is very common that we obtain contract extensions
         with our clients for our consulting resources.

     o   IT Solutions Division--This division handles advanced technologies and
         solutions and provides expertise in project management, architecture,
         and project methodology. Its focus is to service customers on a project

                                       9

<PAGE>

         or deliverable basis. The work can be performed at customer facilities
         or at our facilities. With this type of work the customer typically
         enters into a contract with us for a fixed price bid that provides for
         delivery of a given service or delivery at a stated time. Services
         provided by this group range from helping clients assess their business
         needs and identifying the right technology solution, to helping
         customers select and implement packaged software, to designing,
         constructing, and testing new systems and integrating them with the
         customer's existing technology.

Results of Operations

Net revenue for the three months ended March 31, 2008, was $2,068,000, an
increase of 13.8%, compared to $1,817,000 for the same period in 2007. The
increase reflects an increase in billable resources at client sites.

Cost of revenues, defined as all costs for billable staff, were $1.5 million or
75.0% of revenue for the three months ended March 31, 2008, as compared to $1.3
million or 71.6% of revenue for the same period in 2007. The increase in cost of
revenue as a percentage of revenue for this period is primarily a result of the
increase in staff count with a focus on targeted areas (project management and
business analysts). These target areas provide more marketable skills and are
strategic in our growth plans however they also provide higher staff
compensations. The 75% COGS is in line with industry standards, reflecting
expected bill rates with customers and proper cost factors for staff overall.

General and administrative (G&A) expenses were $568,000 or 27.5% of revenue for
the three months ended in March 31, 2008, as compared to $523,000 or 28.8% for
the same period in 2007. The increase in G&A expense is mostly attributed to
additional overhead staff in recruiting and sales as compared to this time in
2007. We continue to monitor and manage the core G&A expense categories:
overhead wages, professional fees and expenses (legal, accounting, consulting)
associated with public company filings. We have established uniform controls and
automated processes and are able to perform most general functions internally
and minimize what outside agencies/consultants must do.

Operating income for the three months ended in March 31, 2008, was a loss of
$51,000 as compared to a loss of $7,000 for the same period in 2007, related to
increases in G&A expenses.

Other income and expense, net, consisted of a loss of $82,000 for the three
months ended in March 31, 2008, compared to a gain of $15,000 for the same
period in 2007. The loss is mostly attributable to a net decrease in cash
surrender value over premiums of variable executive life insurance (due to
market fluctuation).

The effective tax rate for the first three months of 2008 is 18.2% compared to
an effective income tax rate of 57% for the same period in 2007. The change in
rate is primarily attributable to the permanent difference resulting from a net
decrease in cash surrender value over premiums of variable executive life
insurance policies.

Net loss for the three months ended in March 31, 2008, was $109,224 or ($.02)
per diluted share, compared with net income of $12,705 for the same period in
2007, or $.00 per diluted share.

                                       10

<PAGE>

Dividend

No Dividend has been declared as of March 31, 2008.

On June 7, 2004, North Carolina Premier issued 597,500 shares of Class A
preferred stock in a private placement. The holders of shares of preferred stock
were entitled to receive an 8% annual dividend until the earlier of (1) the
third anniversary of the date of issuance or (2) automatic conversion of shares
of Class A preferred stock into shares of common stock. A dividend was declared
and distributed in July 2007 in the amount of $43,400, representing the last
dividend to be issued per the private placement.

Attached with each preferred share was a warrant entitling the holder to
purchase one share of common stock at an exercise price of $2.00. The warrants
were immediately exercisable and had a term of three years.

On consummation of the share exchange, holders of these shares of preferred
stock were issued in exchange shares of our Class A preferred stock having
substantially identical terms, as well as warrants with substantially identical
terms, except that the exercise price of the warrants was adjusted to $1.96.

Critical Accounting Policies

Revenue Recognition

The Company follows the guidance of the Securities and Exchange Commission's
Staff Accounting Bulletin No. 104 for revenue recognition. In general, the
Company records revenue when persuasive evidence of any agreement exists,
services have been rendered, and collectibility is reasonably assured,
therefore, revenue is recognized when the Company invoices customers for
completed services at contracted rates and terms.

Income Taxes

We make certain estimates and judgments in determining income tax expense for
financial statement purposes. These estimates and judgments occur in calculating
tax credits, tax benefits, and deductions that arise from differences in the
timing of recognition of revenue and expense for tax and financial-statement
purposes.

We assess the likelihood that we will be able to recover deferred tax assets. If
recovery is unlikely, we must increase the provision for taxes by recording a
valuation allowance against the estimated deferred tax assets that will not
ultimately be recoverable. As of March 31, 2008, we believed that all of the
deferred tax assets recorded on our balance sheet would ultimately be recovered.
However, should there be a change in our ability to recover our deferred tax
assets, our tax provision would increase in the period in which we determine
that the recovery is unlikely.


                                       11
<PAGE>

Financial Condition and Liquidity

As of March 31, 2008, we had cash and cash equivalents of $105,000, representing
a decrease of $43,102 from March 31, 2007. Net working capital at March 31,
2008, was ($17,000), as compared to ($7,000) on March 31, 2007. Current assets
at March 31, 2008, were $1,212,000. The decrease in working capital was
primarily due to a reduction in net earnings of the company. We had no long term
debt. Shareholders' equity as of March 31, 2008, was $3,066,000, which
represented 71% of total assets.

During the three months ended March 31, 2008, the net cash used by operating
activities was $82,645 and was primarily a result of an increase in accounts
receivable of $109,000 and a decrease in cash surrender value of officers life
insurance of $65,000 offset by a decrease in prepaid expenses of $13,000, an
increase of accounts payable of $50,000 and an increase in accrued expenses of
$10,000.

Cash flows from investing activities used $0.

Financing activities provided $83,000 of cash for the three months ended March
31, 2008. Of that increase, $83,000 was due to borrowings on our revolving line
of credit. We borrow or repay this revolving debt as needed based upon our
working capital obligations. We believe that internally generated funds, current
cash on hand, and available borrowings under our revolving credit line will be
adequate to meet foreseeable liquidity needs.

Outlook

Our business has been affected by the following major trends. First, customers
are consolidating their primary vendor lists. Second, the surge in offshore and
outsourced development work is forcing us to focus on handling earlier and later
phases of the development cycle, which in turn has increased our need for
expertise in the areas of project management, business analysis, and quality
assurance and testing. These trends are discussed in greater detail below. In
addition is the impact caused from the sub-prime mortgage industry on our
financial based customers as they are spending and investing in technology
projects more cautiously in the short term. The evidence is in the slow down of
project initiatives and of resource requirements in general.

Many customers working with the computer services industry are reducing the
number of primary vendors they use and are instead working with a smaller number
of pre-approved vendors. This trend could have a significant impact on the rates
we charge and the amount of business we do. We propose to address these issues
from two perspectives.

First we are laying the foundation to diversify and enhance our business model
geographically, in increased size as well as in the way we package our services.
By servicing more geographic markets and increasing our overall size we will
more effectively maintain approved primary or sub vendor status, factors that
clients have told us are important to them. The ability to service large
customers in multiple locations as well as provide more resources and capability
adds value while minimizing customer risk. To accomplish this we are looking at
organic growth as well as merger and acquisition strategies.

                                       12

<PAGE>


Secondly we are retooling our sales efforts to increase our focus on mid level
customers. This market is not as advanced in the use of or consolidation of
primary vendor processes. Premier has typically focused on large corporate
customers and is expanding our marketing focus to include the mid level customer
segment.

With the surge in off-shore efforts, we had to choose to adjust either by
providing offshore services or by focusing on that work that is less susceptible
to being sent offshore. Off-shore and outsourced efforts are typically focused
on the core development (middle phases) of a software development cycle. By
contract, on-site consulting resources typically handle the early and later
phases of the development cycle. This has greatly increased the focus on the
following expertise for onsite work: project management, business analysis,
quality assurance and testing. We believe that we can be more competitive if we
focus on providing on-site consulting, and so we have focused our recruiting and
sales efforts in that area.

Our top priority is to broaden the range of services we offer and build a more
diverse client base, both geographically and in terms of industry segments
represented. We believe that achieving this goal will require a combination of
merger activity and organic growth. Whether we achieve this goal will in part
depend on continued improvement in the U.S. jobs market and our ability to
attract and retain top talent in the IT field.

Off-Balance-Sheet Arrangements

The Class A Preferred Stock accrues 8 % per annum dividends on a stated
"dividend value". "Dividend value" is the amount equal to $0.98 per share for
each share of Class A Preferred Stock outstanding. The dividends began accruing
June 1, 2004, and are cumulative. Dividends are payable annually in arrears.
During 2007, the Company declared and paid dividends of $43,400 ($.07 per
preferred share). At March 31, 2008, no additional dividends have accrued on
these shares respectively.

As of March 31, 2008, a total of 56,852 shares of Class A Preferred Stock have
been converted to 56,852 shares of Common Stock per a shareholder voluntary
conversion option as indicated in the Private Offering Memorandum executed on
June 7, 2004. None have been converted during the three months ended as of March
31, 2008.

As of March 31, 2008, and during the prior three months then ended, there were
no other transactions, agreements or other contractual arrangements to which an
unconsolidated entity was a party under which we (1) had any direct or
contingent obligation under a guarantee contract, derivative instrument, or
variable interest in the unconsolidated entity, or (2) had a retained or
contingent interest in assets transferred to the unconsolidated entity.

                                       13

<PAGE>

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company's primary market risk exposures consist of interest rate risk
associated with variable rate borrowings and investment market fluctuation
impact on long term assets. Management believes that interest rate fluctuations
will not have a material impact on Premier's results of operations. Market
fluctuation provides investment gain or loss on variable life insurance policies
(managed by Metropolitan Life Insurance). The plans are long term assets which
contribute to the financial stability of the company and can impact funding and
loan capability.

Interest Rate Risks

At March 31, 2008, the Company had an outstanding balance of $568,078 under its
revolving credit agreement. Interest on borrowings under the facilities is based
on the daily LIBOR rate plus a 3% margin. Daily average borrowings for the 2008
first quarter were $547,288.

Market fluctuation impact on assets

For the three months ending March 31, 2008, the valuation of the Variable Life
Insurance policies had an investment loss of $65,598.

Equity Market Risks

The trading price of our common stock has been and is likely to continue to be
volatile and could be subject to wide fluctuations. Such fluctuations could
impact our decision or ability to utilize the equity markets as a potential
source of our funding needs in the future.


Item 4. Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that
information required to be disclosed in our Exchange Act reports is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms and that such information
is accumulated and communicated to this company's management, including our
Chief Executive Officer and Chief Financial Officer, as appropriate, to allow
for timely decisions regarding required disclosure. In designing and evaluating
the disclosure controls and procedures, management recognizes that any controls
and procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives, and management
is required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.

As required by Securities and Exchange Commission Rule 13a-15(b), we carried out
an evaluation, under the supervision and with the participation of the Company's
management, including our Chief Executive Officer, of the effectiveness of the
design and operation of our disclosure controls and procedures as of the end of
the quarter covered by this report. Based on the foregoing, our Chief Executive
Officer concluded that our disclosure controls and procedures are effective to
ensure the information required to be disclosed in our reports filed or
submitted under the Exchange Act is timely recorded, processed and reported
within the time periods specified in the Securities and Exchange Commission
rules and forms.

                                       14

<PAGE>

There has been no change in our internal control over financial reporting during
our most recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.

Item 4T. Controls and Procedures

As required by Securities and Exchange Commission Rule 13a-15(d), we carried out
an evaluation, under the supervision and with the participation of the Company's
management, including our Chief Executive Officer, of changes in our internal
control over financial reporting. Based on the foregoing, our Chief Executive
Officer concluded that there were no changes in our internal control over
financial reporting that occurred during our most recent fiscal quarter that
have materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.


                                       15


<PAGE>


                                     PART II
                                OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

31.1     Certification of Principal Executive and Principal Financial Officer
         Pursuant to Section 302 of the Sarbanes-Oxley Act of
         2002 (18 U.S.C. Sec. 1350).


32.1     Written Statement of Chief Executive and Financial Officer
         Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18
         U.S.C. Section 1350).


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<PAGE>


                                   SIGNATURES


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


                                    PREMIER ALLIANCE GROUP, INC.
                                    (Registrant)


DATE: May 15, 2008                  By: /s/ Mark S. Elliott
                                        -------------------
                                        Mark S. Elliott
                                        President (Chief Executive Officer
                                        and Acting Chief Financial Officer)



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