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

                                   FORM 10-QSB

(Mark One)
[ X ]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
       OF 1934
             For the quarterly period ended September 30, 2004

[   ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
            For the transition period from ________________ to _________________

                         Commission file number 0-50742

                            SIGN MEDIA SYSTEMS, INC.
  -----------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

               FLORIDA                              02-0555904
   -------------------------------------      ----------------------------
    (State or other jurisdiction of                IRS Employer
     incorporation or organization)             Identification No.)

                       2100 19th Street, Sarasota FL 34234
  -----------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (941) 330-0336
  -----------------------------------------------------------------------------
                           (Issuer's telephone number)



  -----------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)


                      APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 8,593,334 Common Shares no par value
as of September 30, 2004

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [ X ]


<PAGE>


                         PART I -- FINANCIAL INFORMATION

Item 1.  Financial Statements.

The information required by Item 310(b) of Regulation S-B is attached hereto as
Exhibit One.

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

THE FOLLOWING DISCUSSION OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF
THE COMPANY SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND
NOTES THERETO INCLUDED ELSEWHERE IN THIS REPORT.

THIS DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES, AND THE COMPANY'S ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN THESE FORWARD-LOOKING STATEMENTS AS A RESULT OF CERTAIN FACTORS,
INCLUDING, BUT NOT LIMITED TO COMPETITION AND OVERALL MARKET AND ECONOMIC
CONDITIONS.

RESULTS OF OPERATIONS

Management Discussion Snapshot.

The following tables sets forth certain of the Company's summary selected
operating and financial data. The following tables should be read in conjunction
with all other financial information and analysis presented herein including the
Financial Statements for the Nine Months Ended September 30, 2004 and 2003 and
the Three Months Ended September 30, 2003 and 2003.


                                                      Nine Months Ended
                                                         September 30

                                                  2004                  2003
   Revenue                                    $ 1,291,885             $ 146,783
   Cost of Goods Sold                             196,469                59,277
   Gross profit                                 1,095,416                87,506
   Operating and
       Other Expenses                             454,394               406,366
   Income (Loss) from before
       provision for income taxes                 641,022             (318,860)
   Provision for  income taxes                     80,850                     -
   Net income (loss)                              560,172             (318,860)
   Gross profit margin                                85%                  0.6%
   Earnings per share
      of common stock                           $   0.068           $   (0.040)
   Weighted Average of
      Common Shares                             8,368,865             7,972,333

For the nine months ended September 30, 2004, the Company generated $1,291,885
of revenue, $1,095,416 of gross profit, $560,172 of net income after a provision
of $80,850 for income taxes, and $0.068 in earnings per weighted average common
share based upon a weighted average of 8,368,865 common shares outstanding. .

For the nine months ended September 30, 2003, the Company generated $146,783 of
revenue, $87,506 of gross profit, $(318,860) of net loss, and $(0.040) of net
loss per weighted common share based upon a weighted average of 7,972,333 common
shares outstanding.

Revenue for the nine months ended September 30, 2004, increased $1,145,102 from
the same period last year. Income from continuing operations after a provision
of $87,506 for income taxes for the nine months ended September 30, 2004,
increased $879,032 from the same period last year. Earnings per share for the
nine months ended September 30,2004, increased $.11 from the same period last
year.

                                                       Three Months Ended
                                                          September 30

                                                    2004                  2003
   Revenue                                      $ 637,401              $ 42,815
   Cost of Goods Sold                             102,209                25,853
   Gross profit                                   535,192                16,962
   Operating and
   Other Expenses                                 125,431               156,209
   Income (Loss) from before
      provision for income taxes                  409,761              (139,247)
   Provision for  income taxes                          -                     -
   Net income (loss)                              409,761              (139,247)
   Gross profit margin                                84%                -3.25%
   Earnings per share
      of common stock                           $   0.048           $   (0.017)
   Weighted Average of
      Common Shares                             8,593,334             8,000,000

For the three months ended September 30, 2004, the Company generated $637,401 of
revenue, $535,192 of gross profit, $409,761 of net income, and $0.048 in
earnings per weighted average common share based upon a weighted average of
8,593,334 common shares outstanding. .

For the three months ended September 30, 2003, the Company generated $42,815
revenue, $16,962 of gross profit, $(139,247) of net loss, and $(0.017) of net
loss per weighted average common share based upon a weighted average of
8,000,000 outstanding.

Revenue for the three months ended September 30, 2004, increased $594,586 from
the same period last year. Income from continuing operations for the nine months
ended September 30, 2004, increased $549,008 from the same period last year.
Earnings per share for the nine months ended September 30,2004, increased $0.65
from the same period last year.

MANAGEMENT'S DISCUSSION

The Company is in the business of developing, manufacturing and marketing mobile
billboard mounting systems which are mounted primarily on truck sides, rear
panels and breaking panel roll up doors. The Company also produces digitally
created outdoor, full color vinyl images ("Fleet Graphics") which are inserted
into the mounting systems and displayed primarily on trucks. The Company has
developed mounting systems which allow Fleet Graphics to easily slide into an
aluminum alloy extrusion with a cam-lever that snaps closed stretching the image
tight as a drum, and that also easily opens to free the image for fast removals
and change outs without damaging the truck body or the Fleet Graphics. The
mounting systems' proprietary cam-lever technology is the key to their
operation.

The Company's revenue comes from three primary sources; sales of the mobile
billboard mounting systems, sales of Fleet Graphics, and sales of third party
advertising utilizing the mobile billboard mounting systems and the Fleet
Graphics mounted on the sides of trucks owned by third parties. During the nine
months and the three months ended September 30, 2004, $1,278,966 and $631,027
respectively or 99% for both periods of the Company's revenue came from the sale
of its mobile billboard mounting systems, and $631,027 and $6,374 respectively
or 1% for both periods of the Company's revenue came from the sale of third
party advertising.

A material part of the Company's business is currently dependent upon one key
customer, Applied Advertising Network, LLC of Lake Mary, Florida. During the
nine months ended September 30, 2004, the Company's sales to this customer were
approximately $1,278,966 or 99% of all sales. During the three months ended
September 30, 2004, the Company's sales to this customer were approximately
$631,027 or 99% of all sales. The Company continues to rely on this customer for
the majority of its sales. However, the Company is moving forward to expand its
distribution base so that it will no longer depend on this one key customer.
There can be no guarantee that the Company will be able to diversify its
distribution base. Applied Advertising Network, LLC is not a related party.

The Company attributes the increases in revenue, income from continuing
operations and earnings per share to increases in sales due to the continued
expansion of the Company's sales and marketing division. The Company's primary
emphases is to expand sales nation wide and to also expand into Latin America by
acquiring independent dealers.

                          PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings.

There are no pending or threatened legal proceedings against the Company or any
of its subsidiaries.

Item 2.  Changes in Securities.

NONE

Item 3.  Defaults Upon Senior Securities

NONE

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

NONE

Item 5.  Other Information.

NONE

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

INDEX TO EXHIBITS.

EXHIBIT
NUMBER        DESCRIPTION OF DOCUMEN
-------------------------------------------------------
     1        SIGN MEDIA SYSTEMS, INC. FINANCIAL STATEMENTS

The Company filed no Forms 8K for the quarter ended September 30, 2004.


<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.

                                          SIGN MEDIA SYSTEMS, INC.
                                          (Registrant)

Date November 22, 2004                    /s/Antonio F. Uccello, III
     -----------------                    -----------------------------
                                          Antonio F. Uccello, III
                                          Chief Executive Officer
                                          Chairman of the Board

EXHIBIT 1

                            SIGN MEDIA SYSTEMS, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF INCOME (OPERATIONS)
                   FOR THE NINE MONTHS AND THREE MONTHS ENDED
                    SEPTEMBER 30, 2004 AND 2003 (UNAUDITED)


                            SIGN MEDIA SYSTEMS, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2004


                                     ASSETS

CURRENT ASSETS

   Cash and cash equivalents                              $          2,876

   Accounts receivable                                           1,406,340

   Inventory                                                        33,416

   Miscellaneous receivable                                          4,000
                                                           ---------------
Total current assets                                             1,446,632

PROPERTY AND EQUIPMENT - Net                                       148,732
                                                           ---------------
TOTAL ASSETS                                                 $   1,595,364
                                                           ===============

                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

   Current portion of long-term debt                       $        18,123

   Accounts payable and accrued expenses                           220,626

   Income taxes payable                                             80,850

   Liability for stock to be issued                                200,000
                                                           ---------------
Total current liabilties                                           519,599

LONG-TERM DEBT - Net of Current Portion                             14,687

DUE TO OFFICER/STOCKHOLDER                                          36,404

DUE TO RELATED PARTY COMPANIES                                     342,054
                                                           ---------------
TOTAL LIABILITIES                                                  912,744

STOCKHOLDERS' EQUITY
   Common stock, no par value, 100,000,000 shares
   authorized at September 30, 2004 and 8,460,000
   shares issued and outstanding at September 30, 2004               5,000

   Additional paid-in capital                                      739,437

   Deficit                                                         (61,817)
                                                           ---------------
Total stockholders' equity                                         682,620
                                                           ---------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $     1,595,364
                                                           ===============



              The accompanying notes are an integral part of these
                 condensed consolidated financial statements

<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF INCOME (OPERATIONS)
   FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 2004 (UNAUDITED)

                                     NINE MONTHS ENDED     THREE MONTHS ENDED
                                       September 30,          September 30,
                                       2004         2003    2004        2003

REVENUE                             $  1,291,885 $ 146,783  $ 637,401 $ 42,815

COST OF GOODS SOLD                       196,469    59,277    102,209   25,853
                                    ------------------------------------------
GROSS PROFIT                           1,095,416    87,506    535,192   16,962

OPERATING EXPENSES
    Professional fees                     63,064    47,038     35,043   22,319
    General and administrative expenses  320,258   317,036     71,163  110,243
    Depreciation                          17,463     7,089        748    2,363
                                    ------------------------------------------
          Total operating expenses       400,785   371,163    106,954  134,925
                                    ------------------------------------------

NET INCOME (LOSS) BEFORE
   OTHER (EXPENSE)                       694,631  (283,657)   428,238 (117,963)

OTHER (EXPENSE)
   Interest expense                       53,609    35,203     18,477   21,284
                                    ------------------------------------------
          Total Other (Expense)           53,609    35,203     18,477   21,284
                                    ------------------------------------------

NET INCOME (LOSS) BEFORE
   PROVISION FOR INCOME TAXES            641,022  (318,860)   409,761 (139,247)

   Provision for income taxes             80,850         -          -        -
                                    ------------------------------------------

NET INCOME (LOSS) APPLICABLE
   TO COMMON SHARES                 $   560,172 $ (318,860)$ 409,761 $(139,247)
                                    ==========================================

NET INCOME (LOSS) PER BASIC
   AND DILUTED SHARES                     0.068     (0.040)    0.048    (0.017)
                                    ==========================================

WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING                   8,368,865  7,972,333 8,593,334 8,000,000
                                    ==========================================


              The accompanying notes are an integral part of these
                 condensed consolidated financial statements

<PAGE>

                            SIGN MEDIA SYSTEMS, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003


                                                          2004         2003
                                                     ------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                $      560,172  $  (318,860)

  Adjustments to reconcile net income (loss) to
     net cash provided by (used in) operating
     activities
        Depreciation                                       17,463        7,089

Changes in assets and liabilities:
   (Increase) in accounts receivable                     (834,442)     (88,465)
   (Increase) decrease in inventory                         4,995       (1,397)
   Decrease in prepaid expenses and other current assets   55,144            -
   (Increase) in miscellaneous receivable                  (4,000)           -
   Increase in accounts payable and accrued expenses       67,666       67,526
   Increase in income taxes payable                        80,850
   Increase in liability for stock to be issued           200,000            -
                                                     -------------------------
          Total adjustments                              (412,324)     (15,247)
                                                     -------------------------

  Net cash provided by (used in) operating activities    147,848      (334,107)
                                                     -------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Acquisition of property and equipment                 (63,141)      (56,444)
                                                     -------------------------

          Net cash (used in) investing activities        (63,141)      (56,444)
                                                     -------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds (payments) from long-term debt,
      net of current portion                             (14,050)        8,022
   Due to officers/stockholders                           (9,499)      (14,955)
   Proceeds (payments) to related party companies       (105,350)      360,055
   Contribution of additional paid-in capital                  -        34,437
                                                     -------------------------

  Net cash provided (used) by financing activities      (128,899)      387,559
                                                     -------------------------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS              (44,192)       (2,992)

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD           47,068         5,138
                                                     -------------------------

CASH AND CASH EQUIVALENTS - END OF PERIOD            $     2,876    $    2,146
                                                     =========================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid during the period for interest.          $    53,609    $   35,043
                                                     =========================

SUPPLEMENTAL NON-CASH INVESTING ACTIVITIES:

  Conversion of liability to common stock            $   324,000    $        -
                                                    ==========================

                 The accompanying notes are an integral part of
               these condensed consolidated financial statements.
                                        3

<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2004 AND 2003





NOTE 1-  ORGANIZATION AND BASIS OF PRESENTATION

                  The condensed unaudited interim financial statements included
                  herein have been prepared by Sign Media Systems, Inc. (the
                  "Company") without audit, pursuant to the rules and
                  regulations of the Securities and Exchange Commission (the
                  "SEC"). Certain information and footnote disclosures normally
                  included in the financial statements prepared in accordance
                  with accounting principles generally accepted in the United
                  States of America have been condensed or omitted as allowed by
                  such rules and regulations, and the Company believes that the
                  disclosures are adequate to make the information presented not
                  misleading. It is suggested that these condensed consolidated
                  financial statements be read in conjunction with the December
                  31, 2003 audited financial statements and the accompanying
                  notes thereto. While management believes the procedures
                  followed in preparing these condensed financial statements are
                  reasonable, the accuracy of the amounts are in some respects
                  dependent upon the facts that will exist, and procedures that
                  will be accomplished by the Company later that year.

                  The management of the Company believes that the accompanying
                  unaudited condensed consolidated financial statements contain
                  all adjustments (including normal recurring adjustments)
                  necessary to present fairly the operations and cash flows for
                  the periods presented.

                  The Company began business as E Signs Plus.com LLC, a Florida
                  Limited Liability Company ("Go Agency"). E Signs Plus.com was
                  formed on June 20, 2000. Initially the Company engaged in the
                  business of manufacturing and selling signage of all types and
                  also engaged in third party truck side advertising. In August
                  of 2001, the Company began developing its own proprietary
                  truck side mounting system and at that time decided to limit
                  its business to developing, manufacturing and marketing mobile
                  bill board mounting systems. On August 27, 2001, the Company
                  changed its name to GO! Agency, LLC. The principal of Go
                  Agency invested approximately $857,000 in Go Agency pursuing
                  this business.

                  On January 28, 2002, GO! Agency incorporated Sign Media
                  Systems, Inc. in the State of Florida. GO! Agency continued in
                  the business of marketing its proprietary truck side mounting
                  system and printing of graphics. Sign Media Systems engaged in
                  the business of developing manufacturing and marketing the
                  proprietary mounting system.






                                        4
<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2004 AND 2003






NOTE 1-  ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED)

                  Effective January 1, 2003, GO! Agency transferred all of its
                  assets including its interest in the proprietary cam lever
                  technology, which together had an original cost basis of
                  $300,000 to Sign Media Systems ("SMS"). The agreed upon value
                  of the assets $55,702 was exchanged for 7,959,000 shares of
                  the Company's common stock which was in excess of eighty
                  percent (80%) of the Company's then issued and outstanding
                  shares of common stock. In connection with this exchange, SMS
                  assumed $25,765 of Go Agency's debt, which consisted primarily
                  of 7,960,000 shares of common stock issued and outstanding.
                  The Company has developed and filed an application for a
                  patent on its mounting system.

                  Sign Media Systems Acquisition Company, Inc., ("SMA") a
                  Florida Corporation and American Powerhouse, Inc. ("API")
                  entered into an Agreement and Plan of Share Exchange dated
                  November 17, 2003, (the "Share Exchange") pursuant to which
                  the shareholders of API on November 17, 2003 (the "Exchange
                  Date") were issued 300,000 shares of common stock of SMA, no
                  par value, in exchange for one hundred percent (100%) of the
                  issued and outstanding shares of API. The Share Exchange
                  called for the resignation of the original officers and
                  directors, who no longer have any continued involvement in the
                  Company, and the appointing of a new board and officers. As of
                  the Exchange Date SMA, became the surviving company.

                  Simultaneously, Sign Media Systems Acquisition Company, Inc.,
                  a Florida corporation, was merged into Sign Media Systems,
                  Inc. per a Plan of Merger that was adopted by the shareholders
                  of both companies on November 17, 2003.

                  For accounting purposes, these transactions were accounted for
                  as a reverse acquisition under the purchase method of
                  accounting. Accordingly, SMS will be treated as the continuing
                  entity for accounting purposes, and the condensed consolidated
                  financial statements presented herein are those of SMS.












                                        5
<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           SEPTEMBER 30, 2004 AND 2003



NOTE 2-  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                  Principles of Consolidation

                  The condensed consolidated financial statements include the
                  accounts of the Company and its wholly-owned subsidiary. All
                  significant intercompany accounts and transactions have been
                  eliminated in consolidation.

                  Use of Estimates

                  The preparation of condensed 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 disclosures of contingent assets
                  and liabilities at the date of the financial statements and
                  the reported amounts of revenues and expenses during the
                  reporting period. Actual results could differ from those
                  estimates.

                  Revenue and Cost Recognition

                  Revenue is recognized under the accrual method of accounting
                  when the services are rendered rather than when cash is
                  collected for the services provided.

                  Cost is recorded on the accrual basis as well, when the
                  services are incurred rather than paid for.

                  Cash and Cash Equivalents

                  The Company considers all highly liquid debt instruments and
                  other short-term investments with an initial maturity of three
                  months or less to be cash equivalents.

                  The Company maintains cash and cash equivalent balances at
                  several financial institutions that are insured by the Federal
                  Deposit Insurance Corporation up to $100,000.

                  Property and Equipment

                  Property and equipment are stated at cost. Depreciation is
                  computed primarily using the straight-line method over the
                  estimated useful life of the assets.

                  Furniture and fixtures                               5 years
                  Equipment                                            5 years
                  Trucks                                               5 years



                                        6
<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           SEPTEMBER 30, 2004 AND 2003



NOTE 2-           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

                  Advertising

                  Costs of advertising and marketing are expensed as incurred.
                  Advertising and marketing costs were $4,593 and $35,033 for
                  the nine months ended September 30, 2004 and 2003,
                  respectively

                  Fair Value of Financial Instruments

                  The carrying amount reported in the balance sheets for cash
                  and cash equivalents, accounts receivable, accounts payable
                  and accrued expenses approximate fair value because of the
                  immediate or short-term maturity of these financial
                  instruments.

                  Earnings (Loss) per Share of Common Stock

                  Historical net income (loss) per common share is computed
                  using the weighted-average number of common shares
                  outstanding. Diluted earnings per share (EPS) includes
                  additional dilution from common stock equivalents, such as
                  stock issuable pursuant to the exercise of stock options and
                  warrants.

                  The following is a reconciliation of the computation for basic
and diluted EPS:

                                                        September 30
                                                      2004      2003

                        Nwr income (loss)           $560,172   $ (318,860)
                                                    ======================

                       Weighted-average common
                         shares outstanding
                              Basic                8,368,865     7,972,333

                       Weighted-average common
                         stock equivalents
                              Stock options                 -            -
                              Warrants                      -            -

                                                   ------------------------

                       Weighted-average common
                         shares outstanding
                              Diluted              8,368,865     7,972,333
                                                  =========================





                                        7
<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           SEPTEMBER 30, 2004 AND 2003



NOTE 3-           PROPERTY AND EQUIPMENT

                  Property and equipment consist of the following at September
30, 2004 and 2003:

                                                        2004        2003
                                                      --------    -------
                  Equipment                           $ 71,461    $ 18,032
                  Furniture & fixtures                  57,882      29,552
                  Transportation equipment              54,621       8,860
                                                      --------------------
                                                       183,732      56,444
                  Less: accumulated depreciation       (35,232)    ( 3,162)
                                                     ---------------------
                  Net book value                     $ 148,732    $ 53,282
                                                     =====================

                  Depreciation expense for the nine months ended September 30,
                  2004 and 2003 was $17,463 and $7,089, respectively.


NOTE 4-           COMMITMENTS AND CONTINGENCIES

                  The Company entered into a lease agreement on November 1, 2002
                  with Hawkeye Real Estate, LLC, a related entity, to lease
                  warehouse and office space. The lease expires on December 30,
                  2007, and provides that SMS pay all applicable sales and use
                  tax, insurance and maintenance. The total minimum rental
                  commitments at September 30, 2004 under this lease are as
                  follows:

                        2004                                    $ 7,500
                        2005                                     30,000
                        2006                                     30,000
                        2007                                     15,000
                                                                -------
                                                               $ 82,500
                                                               ========

                  Rent expense for the nine months ended September 30, 2004 and
                  2003 was $35,698 and $25,061, respectively.


                                        8
<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           SEPTEMBER 30, 2004 AND 2003



NOTE 5-           RELATED PARTY TRANSACTIONS

                  On January 28, 2002, Sign Media Systems, Inc. was formed as a
                  Florida Corporation but did not begin business operations
                  until April, 2002. Most of the revenue that Sign Media
                  Systems, Inc. earned was contract work with Go! Agency, LLC.,
                  a Florida limited liability company, a related party. Sign
                  Media Systems, Inc. would contract Go! Agency, LLC. to handle
                  and complete jobs. There was no additional revenue or expense
                  added from one entity to the other.

                  On September 15, 2002, the Company entered into a loan
                  agreement with Go! Agency, LLC and in connection therewith
                  executed a promissory note with a future advance clause in
                  favor of Go! Agency whereby Go! Agency agreed to loan the
                  Company up to a maximum of $100,000 for a period of three
                  years, with interest accruing on the unpaid balance at 18% per
                  annum, payable interest only monthly, with the entire unpaid
                  balance due and payable in full on September 15, 2005. At
                  September 30, 2004, the Company was indebted to Go! Agency in
                  the amount of $108,480.

                  On January 3, 2003, the Company entered into a loan agreement
                  with Olympus Leasing Company, a related party, and in
                  connection therewith executed a promissory note with a future
                  advance clause in favor of Olympus Leasing, whereby Olympus
                  Leasing agreed to loan the Company up to a maximum of
                  $1,000,000 for a period of three years, with interest accruing
                  on the unpaid balance at 18% per annum, payable interest only
                  monthly, with the entire unpaid balance due and payable in
                  full on January 3, 2006. As of September 30, 2004 there was
                  $233,574 due.

NOTE 6-  LONG-TERM DEBT

                  Long-term debt consists of two installment notes with GMAC
                  Finance. As discussed in Note 1, the Company assumed debt from
                  Go! Agency as of January 28, 2002. On June 18, 2003, the
                  Company acquired a truck in the amount of $45,761 financed by
                  GMAC over a period of 5 years. Monthly payments are $763. The
                  loan carries no interest charges.



                                        9
<PAGE>
                            SIGN MEDIA SYSTEMS, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                           SEPTEMBER 30, 2004 AND 2003



NOTE 7-  PROVISION FOR INCOME TAXES

                  The provision for income taxes at September 30, 2004 consisted
of the following:

                  Current tax expense                       $ 213,704
                  Benefit of loss carry forwards             (132,854)
                                                            ---------
                  Net current tax expense                   $  80,850
                                                            =========


                  The company has loss carry forwards of $390,748 that may be
                  offset against future taxable income that may be used against
                  future income taxes.


NOTE 8-  LIABILITY FOR STOCK TO BE ISSUED

                  As of September 30, 2004 the Company received $200,000 for
                  common stock to be issued at a later date. Upon issuance of
                  the common stock the liability will be removed.

NOTE 9-           STOCKHOLDERS' EQUITY

                  As of September 30, 2004 and 2003, there were 100,000,000
shares of common stock authorized.

                  As of September 30, 2004 and 2003, there were 8,460,000 and
                  7,960,000 shares of common stock issued and outstanding.

                  During the nine months ended September 30, 2004 the Company
                  had the following stock transactions:

                  The company issued 216,000 shares of common stock in
conversion of a liability.











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