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

                                   FORM 10-KSB

  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
                                    of 1934

                        Commission file number: 000-32249

                          CYBER PUBLIC RELATIONS, INC.
        (Exact name of small business issuer as specified in its charter)

            Florida                                      98-0222013
(State or other jurisdiction of                (IRS Employee Identification No.)
 incorporation or organization)

                      8260 Ryan Road, Richmond, BC, V7A 2E5
                    (Address of principal executive offices)

                                 (604) 277-2816
                           (Issuer's telephone number)

Securities Registered pursuant to section 12(g) of the Act:   None

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 and Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes  [X]      No  [ ]

Check if disclosure of delinquent filers pursuant to Item 405 of Regulation S-B
is 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 amendment to
this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year.      $0

Aggregate market value of the voting stock held by non-affiliates of the
registrant as of December 31, 2002. $0

Number of outstanding shares of the registrant's par value $0.001 common stock,
as of December 31, 2002. 2,199,000

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                          CYBER PUBLIC RELATIONS, INC.
                                   FORM 10-KSB
                                      INDEX

                                                                            Page
                                                                            ----
                                     Part I

Item 1.  Business..............................................................3

Item 2.  Properties............................................................7

Item 3.  Legal Proceedings.....................................................8

Item 4.  Submission of Matters of a Vote of Security Holders...................8

                                Part II

Item 5.  Market for Registrant's Common Equity and Related Stockholder
         Matters...............................................................8

Item 6.  Management's Discussion and Analysis of Financial
         Condition and Results of Operation...................................9

Item 7.  Financial Statements and Supplementary Data..........................17

Item 8.  Changes in and Disagreements with Accountants on
         Accounting and Financial Disclosure..................................17

                               Part III

Item 9.  Directors and Executive Officers of the Registrant...................18

Item 10. Executive Compensation...............................................19

Item 11. Security Ownership of Certain Beneficial Owners and Management.......20

Item 12. Certain Relationships and Related Transactions.......................20

                                Part IV

Item 13. Exhibits, Financial Statement Schedule and Reports on Form 8-K.......21

Item 14. Controls and Procedures..............................................22

Signatures    ................................................................22

                                       2
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                                     Part I

ITEM 1.  BUSINESS

When used in this Form 10-KSB, the words "expects," "anticipates," "estimates"
and similar expressions are intended to identify forward-looking statements.
Such statements are subject to risks and uncertainties, including those set
forth below under "Risks and Uncertainties," that could cause actual results to
differ materially from those projected. These forward-looking statements speak
only as of the date hereof. The Company expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or circumstances on
which any statement is based. This discussion should be read together with the
financial statements and other financial information included in this Form
10-KSB.

General
-------

Cyber Public Relations, Inc. (hereinafter "The Company"), a development stage
company, was incorporated on June 29, 1998 under the laws of the State of
Florida. Its Articles of Incorporation provided for authorized capital of one
hundred and ten million (110,000,000) shares of which one hundred million
(100,000,000) are $0.001 par value Common Stock and ten million (10,000,000) are
$0.001 par value preferred stock.

The Company was formed for the purpose of providing internet electronic commerce
("E-commerce") consulting services to small and medium size businesses. The
Company is currently doing business on the Internet under the name Galaxyblue
Jewelry (www.galaxyblue.com).

There have been no bankruptcy, receiverships, or similar proceedings by or
against the Company. There has been no material reclassification, merger,
consolidation, or purchase or sale of any significant asset(s).

The Company's principal executive offices are located at: 8260 Ryan Road,
Richmond, BC, V7A 2E5.

Business Development
--------------------

Though in its developmental stage, the Company has refined a business model that
will provide complete E-commerce solutions to small and medium sized businesses.
The Company has divided its operations into two divisions:

1.       Product Development (in-house and via acquisitions)
2.       Consulting and Hosting Services

                                       3
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Product Development Division
----------------------------

The Company is currently doing business over the Internet as Galaxyblue Jewelry
(www.galaxyblue.com), and intends to acquire and develop additional
complementary and other products to sell online.

Galaxyblue is the Company's first product development project. It is a small
business enterprise selling hand made jewelry (rings, bracelets, hair clips,
necklaces, etc.) over the Internet. Galaxyblue's catalogue includes over 75
products and is available to the public both online and via regular mail. The
Company has developed an online cartoon character spokesperson and an
interactive website that it intends to evolve into an electronic magazine.

By taking small businesses such as Galaxyblue and applying E-commerce
applications to its business strategy, the Company has created both a marketing
tool for its Consulting Division, and a source of revenue for the Company.

The Company intends to continue to acquire and develop small businesses like
Galaxyblue to add to its product development portfolio. The Company believes the
revenues it will be able to generate from the Product Development Division will
help sustain the Company while it identifies its target markets and prepares
financing for the launch of its Consulting Division.

Consulting and Hosting Services Division
----------------------------------------

The Company plans to provide a combination of consulting and related services to
small and medium size businesses enabling them to effectively engage in
E-commerce. The Company will design websites and implement electronic commerce
applications for their customers' Internet websites, with the primary focus
being online shopping and business-to-business trade via the Internet.

The Company's consulting services are expected to include:

         o        Complete design, construction, and/or enhancement of virtual
                  web pages.
         o        Virtual web page hosting for each of the businesses.
         o        Combination of virtual web page construction and hosting
                  operations that create an effective electronic commerce
                  platform.
         o        Continue the business relationship with each client by
                  providing updates, edits, refitting, and promoting product
                  lines, as well as continued expanding services as the clients'
                  business grows, or changes in E-commerce occur.

As different industries and businesses may require different levels of
assistance, the Company plans to maintain its focus on customer service with
each client on an individual basis. In providing its host of E-commerce services
to small and medium size businesses, the Company will specifically focus on the
clients' industry requirements and take into account Internet law/regulations,
privacy and general security on the Internet, secure transactions, and digital
authentication, as well as Internet marketing concepts and strategies.

                                       4
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The Company has based its business model on the belief that E-commerce, via the
Internet, has reached a stage at which both suppliers and buyers are equipped to
execute transactions on-line, on a consistent basis, with the volume necessary
to conduct a viable business environment. In addition, the market has produced
hardware and application software that now allows users to conduct E-commerce
transactions with relative ease while importantly maintaining effective measures
of security. The Company believes consumers have been adequately educated to
navigate the World-Wide-Web (Internet) and now, in general, feel comfortable
shopping on-line for a wide variety of goods and services. These developments
have opened the door for businesses, including this Company, to begin plying
their trade via the Internet.

Marketing Strategy
------------------

The Company plans to use ad banners, links, and other internet advertising
strategies, in addition to traditional magazine and direct mail advertising, to
drive customers to their Galaxyblue website and to create brand recognition.
Cyber Public Relations intends to create a web ring, connecting all the sites in
the Company's product development portfolio, thereby increasing the potential
customer base of each individual website. The success of the Company's web ring
will be used as a model to assist in marketing the Company's consulting
services.

The Company has developed a three-phase plan for marketing fully functional
E-commerce consulting services once this division is ready to be launched. The
service will be targeted to small to medium size companies looking to sell their
products and/or services over the Internet. In its first phase of marketing, the
Company will focus on defined markets within the Northwestern United States and
Southwestern Canada. The Company believes that by staying in defined areas,
while in the first phase of marketing, it will increase the potential to build
up a loyal clientele. In addition, it will allow the Company to create a strong
reputation by providing personal and accessible service to each business,
thereby further promoting the Company's success. The Company will be able to
better gauge advertising success by initially operating within these defined
areas. The second phase of marketing will likely include advertising and
promotion to expand throughout the Northwestern United States and Southwestern
Canada region. If, and when, it becomes successful with its second phase of
marketing, the Company may initiate the third phase of marketing sales that will
look to expand its presence across North America, Canada, and even possibly into
international sales.

The specific sales targets of the Company's marketing campaign will include
small to medium size businesses within the following sectors; retail goods and
services, light industry (for order placements and confirmations), industry
support services (i.e. travel insurance, real estate tracking, trade services)
as well as Internet advertisement providers. The Company believes targeting this
market will be beneficial since the majority of the potential client base (small
to medium size companies) have already identified the need for E-commerce
solutions, but for a variety of reasons have not set up their company on the
Internet, or have only at most set up a web-page, but have little else.
Throughout its marketing campaign, the Company will focus on potential clients
that have an understanding or are willing to learn more about the potential the
Internet can provide. Marketing the cost of providing an E-commerce solution to
potential clients, within the targeted market, will be accomplished by examining
earnings potential with fully functional E-commerce operations as provided by
the Company and the investment required by the client to render the services.

                                       5
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Competition
-----------

Competition directly impacting the Company's business model may include, but not
be limited to, companies already established as computer consulting firms,
Internet service providers, web designers and hosting companies, as well as
independent software consultants and engineers. Some of the largest competitors
in the industry include the likes of Amazon.com, Broadvision, Inc., Sterling
Commerce, Harbinger Corp., Microsoft, Peoplesoft, and USWeb Corp. These are only
a few of the companies involved in E-commerce operations, and the Company
recognizes several others that are already established, or are strategically
positioning themselves to enter the marketplace of E-commerce. With this
knowledge, the Company has directed its business model to effectively market
their services to small to medium size businesses, thereby positioning the
Company just below the larger competitors in the marketplace. The Company
believes the strategic advantage this provides is the ability to promote the
Company's business model, while providing flexibility and personal service no
matter what the client's industry sector or business may be.

Raw Materials
-------------

As Galaxyblue Jewelry, the Company relies on a number of different jewelry
findings suppliers to deliver component parts in a timely fashion. The Company
has not, in the past, had any problems with supply or deliverability of
materials. However, should one or more suppliers be unable to ship component
parts, the Company believes it would be able to compensate with alternative
suppliers without detriment to the normal business operations of Galaxyblue
Jewelry.

The Company does not rely on any one or more raw materials or raw material
suppliers for its other divisions.

Customers
---------

As Galaxyblue Jewelry, the Company has relied primarily on one customer, Hills
of Kerrisdale, for the majority of its sales. The Company hopes to diversify
it's customer base by increasing online sales, thereby decreasing the Company's
dependence on its current major customer.

In the Company's other area of business, e-commerce solutions consulting
services, the Company currently does not rely on one or a few customers to
continue business nor does the Company believe such a dependency shall evolve in
the future.

Patents
-------

The Company has no patents, nor is it in the process of trying to obtain any
patents at this time.

                                       6
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Government Regulations
----------------------

The Company is not currently subject to direct federal, state, or local
regulation in the United States other than regulations applicable to businesses
generally or directly applicable to electronic commerce. However, because the
Internet is becoming increasingly popular, it is possible that a number of laws
and regulations may be adopted in the United States with respect to the
Internet. These laws may cover issues such as user privacy, freedom of
expression, pricing, content and quality of products and services, taxation,
advertising, intellectual property rights, and information security.
Furthermore, the growth of electronic commerce may prompt calls for more
stringent consumer protection laws. Several states have proposed legislation to
limit the use of personal user information gathered online or require online
services to establish privacy policies. The Federal Trade Commission has
indicated that it may propose legislation on this issue to Congress in the near
future and has initiated action against at least one online service regarding
the manner in which personal information was collected from users and provided
to third parties. The adoption of such a consumer protection law could create
uncertainty in Internet usage and reduce the demand for all products and
services. The Company does not provide customer information to third parties
and, therefore, does not anticipate any current or proposed legislation relating
to online privacy to directly affect its activities to a material extent.

The Company is not certain how its business may be affected by the application
of existing laws governing issues such as property ownership, copyrights,
encryption, and other intellectual property issues, taxation, libel, obscenity,
and export or import matters. The vast majority of those laws were adopted prior
to the advent of the Internet. As a result, they do not contemplate or address
the unique issues of the Internet and related technologies. Changes in laws
intended to address such issues could possibly create uncertainty in the
Internet marketplace. That uncertainty could reduce demand for the Company's
products or services or increase the cost of doing business as a result of
litigation costs or increased service delivery costs.

Employees
---------

Currently, the Company has no employees other than the principals. However,
additional staff will be added, as the success of the business demands it.


ITEM 2.  PROPERTIES

The Company is currently operating out of premises owned by the President's
father at 8260 Ryan Road, Richmond, B.C., V7A 2E5. The space is being used by
the Company free of charge. The Company believes these facilities will be
adequate for its current requirements.

The Company's future plans will likely require additional space as its business
plan progresses. If, and when, this should occur, the Company will look into
expansion via "satellite" offices into target markets that will be able to
financially support the additional office space and manpower required.

As of December 31, 2002, The Registrant had the following tangible assets.
(The amount is quoted in US Dollars)

                                       7
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(a) Real Estate                   None

(b) Computer and Office Equipment $0


ITEM 3.  LEGAL PROCEEDINGS

The Company is not, and does not anticipate being a party to any legal
proceedings in the foreseeable future.


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

No matters were submitted during the fiscal year covered by this report to a
vote of security holders of the Company, through the solicitation of proxies or
otherwise.


                                     Part II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

(a) The Company's Common Shares are not currently quoted. The Company is not
aware of any established trading market for its Common Stock nor is there any
record of any reported trades in the public market in recent years. The
Company's Common Stock has never traded in a public market.

If and when the Company's Common Stock is traded, most likely the shares will be
subject to the provisions of Section 15(g) and Rule 15g-9 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), commonly referred to as
the "penny stock" rule. Section 15(g) sets forth certain requirements for
transactions in penny stocks and Rule 15g-9(d)(1) incorporates the definition of
penny stock as that used in Rule 3a5l-l of the Exchange Act. The Commission
generally defines penny stock to be any equity security that has a market price
less than $5.00 per share, subject to certain exceptions. Rule 3a5l-l provides
that any equity security is considered to be a penny stock unless that security
is: registered and traded on a national securities exchange meeting specified
criteria set by the Commission; authorized for quotation on the NASDAQ Stock
Market; issued by a registered investment company; excluded from the definition
on the basis of price (at least $5.00 per share) or the issuer's net tangible
assets; or exempted from the definition by the Commission. If the Company's
shares are deemed to be a penny stock, trading in the shares will be subject to
additional sales practice requirements on broker-dealers who sell penny stocks
to persons other than established customers and accredited investors, generally
persons with assets in excess of $1,000,000 or annual income exceeding $200,000,
or $300,000 together with their spouse. For transactions covered by these rules,
broker-dealers must make a special suitability determination for the purchase of
such securities and must have received the purchaser's written consent to the


                                       8
<PAGE>

transaction prior to the purchase. Additionally, for any transaction involving a
penny stock, unless exempt, the rules require the delivery, prior to the first
transaction, of a risk disclosure document relating to the penny stock market. A
broker-dealer also must disclose the commissions payable to both the
broker-dealer and the registered representative, and current quotations for the
securities. Finally, monthly statements must be sent disclosing recent price
information for the penny stocks held in the account and information on the
limited market in penny stocks. Consequently, these rules may restrict the
ability of broker dealers to trade and/or maintain a market in the Company's
Common Stock and may affect the ability of shareholders to sell their shares.

(b) As of December 31, 2002, the Company had approximately 27 shareholders of
record of the common stock.

(c) No dividends on outstanding common stock have been paid within the last two
fiscal years, and interim periods. The Company does not anticipate or intend
upon paying dividends for the foreseeable future.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The following discussion contains forward-looking statements that are subject to
significant risks and uncertainties. There are several important factors that
could cause actual results to differ materially from historical results and
percentages and results anticipated by the forward-looking statements. The
Company has sought to identify the most significant risks to its business, but
cannot predict whether or to what extent any of such risks may be realized nor
can there be any assurance that the Company has identified all possible risks
that might arise. Investors should carefully consider all of such risks before
making an investment decision with respect to the Company's stock. In
particular, investors should refer to the section entitled, "Factors that May
Affect Future Results and Market Price of Stock".

The Company had an increase in cash used by operating activities of $14,978,
from $7,713 at the year ended December 31, 2001, to $22,691 at the current
fiscal year end. The Company also had an increase in cash provided by financing
activities (note payable) of $27,187, from $7,834 at the year ended December 31,
2001, to $35,000 at the current fiscal year end.

The Company had a net loss of $34,774 at the 2002 year end as compared to a net
loss of $7,813 at the 2001 year end. The increase in loss is due to an increase
in general and administrative expenses as the Company continues minimum
operations until additional financing can be achieved and full sales and
marketing operations can be launched.

At the fiscal year end the Company had $12,565 in current assets and current
liabilities of $18,755.

                                       9
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Plan of Operation
-----------------

During the next twelve months, the Company's plans include the following:

         1.       Testing the Company's business model by applying and
                  implementing e-commerce solutions and marketing strategies to
                  Galaxyblue Jewelry.

         2.       Develop and refine its services and identify markets for these
                  services.

         3.       Research and acquire complementary online and e-commerce
                  related businesses

Results of Operations
---------------------

The Company completed the design of a website, www.galaxyblue.com, as the first
step towards testing its E-commerce business model.

Galaxyblue Jewelry consists of necklaces, hairclips, bracelets and rings made by
hand from nickel plated brass findings adorned with genuine Swarovski Austrian
crystals. The products are targeted towards females age 16 to 35, with
individual pieces ranging in price from $20 to $200. The Jewelry business was
started in 1998 and since that time has earned modest revenues from sales, but
has yet to make a profit. The Company designed and implemented a fully
functional, interactive website of Galaxyblue's jewelry products. The Company
has also designed and developed Shred Betty, Galaxyblue's virtual spokesperson
whom the Company plans to use to create brand recognition.

The Company believes small businesses like Galaxyblue Jewelry will be their
target market once consulting operations are launched. It is the Company's
strategy in the next twelve months to make galaxyblue.com a successful
E-commerce website that can be shown to potential clients as an example of the
E-commerce solutions the Company will be able to provide. The Company also plans
to seek out, acquire and develop websites for complementary products that it can
add to its Product Development/Marketing portfolio.

In addition to providing a marketing tool for the Company as it seeks to
identify markets and clients, the Company believes Galaxyblue Jewelry will
provide a modest source of revenue.

Future Operations
-----------------

In the next twelve months, the Company plans to add to its product development
portfolio by seeking out small businesses with products complementary to
Galaxyblue's product offerings to acquire; and to develop such small business
ideas and products in house. The Company plans to create a web ring of
complementary, interconnected, fully functional e-commerce websites; building
brand recognition and a proven reputation.

The Company also plans to continue its market research into identifying the
target markets and a potential clientele for its Consulting Services Division. A
full launch of this division will depend upon the success of the Company's
product development division. The Company plans to use the success of this
division as a key part of a marketing strategy to launch the Company's
Consulting Services.

                                       10
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Because the Company remains essentially a start-up development company with
limited capital resources, it may be necessary for the President to either
advance funds to the Company, or to accrue expenses until such time as an
additional financing can be made. Management intends to hold expenses to a
minimum and to obtain services on a contingency basis when possible until the
Company's product development and marketing reaches a point when additional
financing will be possible. Further, the Company's President and sole Director
will defer any cash compensation until such time as the Company begins to earn
revenues from operations. The Company does anticipate immediate, although modest
revenues from operations from its Galaxyblue website.

It is clear to the Company that present funding is not sufficient for the full
launch of its consulting services operations, and that it must interest
investors in one or more secondary capital formation programs before it can
launch this area of its business strategy.

Management is now engaged in evaluating the feasibility of further limited
offerings or private placements, whether to develop a program for investors
involving royalties or profit participation in actual product sales, with
investments tied to specific products, or whether to attempt to register
securities for sale, pursuant to Section 5 of the Securities Act of 1933. It is
the conclusion of management that significant additional capital formation is
necessary to fully launch operations successfully.

The Company does not intend to use any employees, with the possible exception of
part-time clerical assistance on an as-needed basis, until the Company begins to
earn revenues from operations. Outside advisors or consultants will be used only
if they can be obtained for a minimal cost or on a deferred payment basis.
Management is confident that it will be able to operate in this manner as it
continues to develop its business during the next twelve months.

Cash requirements and need for additional funds
-----------------------------------------------

The Company anticipates no substantial cash requirements for the next twelve
months. It is the opinion of management that $100,000 would be required to
launch operations in the next twelve months, although this is highly dependent
on the success of the Company's initial product development and acquisition
strategies.

The Company believes it can sustain operations for the next twelve months,
including compliance with all reporting requirements by maintaining its self
sufficiency, and by relying on the President to advance funds to the Company
until revenues that can sustain operations can be achieved. The Company does not
believe substantial funds will be required until it is ready to launch the
operation of its Internet Consulting marketing strategy. Required management,
legal and professional services for the next twelve months are believed capable
of being secured for deferred payment or payment in new investment shares of
common stock. The exception to the previous statement is that the Company's
Auditor cannot lawfully or properly be compensated otherwise than by payment for
services in cash as billed by such independent auditor. This cash requirement is
foreseen to be not less than $4,000.00 nor more than $10,000.00 during the next


                                       11
<PAGE>

twelve months. This minimal funding will be obtained by borrowing, possibly with
a guarantee from its officers, directors or principal shareholder. There is no
assurance possible that even these minimal requirements for cash can be met. The
failure to maintain current auditing of the corporate affairs would result in
the failure to meet the Company's intention to file periodic reports,
voluntarily or otherwise, at the close of its next fiscal year. The expenses of
its audit, legal and professional requirements, may be advanced by management.
No significant cash or funds are required for Management to evaluate possible
transactions. No such activity is expected for at least the next six months.

While the Company has disclosed the results of such a contingency, it does not
anticipate any such contingency upon which the Company would voluntarily cease
filing reports with the SEC, even though it might cease to be required to do so
under current rules. It is in the Company's compelling interest to be a
reporting company and to report its affairs quarterly, annually and currently,
as the case may be, generally to provide accessible public information to
interested parties, and also specifically to maintain its qualification for the
OTCBB, if and when the Registrant's intended application for submission is
effective. Capital formation programs cannot be approached responsibly without
maintenance of the Company's reporting status.

Discussion and Analysis of Financial Condition
----------------------------------------------

OPERATIONS AND RESULTS FOR THE PAST TWO FISCAL YEARS: The Company was
incorporated on June 28, 1998 and has yet to launch operations. Activity during
the past year has been confined to testing the viability of the Company's
business model and the identification of markets and development of products.

FUTURE PROSPECTS: The Company is unable to predict when it may launch intended
operations, or failing to do so, when and if it may elect to participate in a
business acquisition opportunity. The reason for this uncertainty arises from
its limited resources, and competitive disadvantage to other public or
semi-public issuers, and new uncertainties about compliance with NASD
requirements for trading on the OTCBB. Notwithstanding the conditions, the
Company expects to develop a capital formation strategy and launch operations
during the next twelve to eighteen months, if the Company can effect quotation
of its common stock on the OTCBB.

REVERSE ACQUISITION CANDIDATE: The Company is not currently searching for a
profitable business opportunity. This contingency is disclosed for the
possibility that the Company's intended business might fail. The Company is not
presently a reverse acquisition candidate. Should the Company's business fail,
management does not believe the Company would be able to effectively, under
current laws and regulations, attract capital, and would be required to seek
such an acquisition to achieve profitability for shareholders.


AUDITORS' OPINION EXPRESSES DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A
"GOING CONCERN" :The independent auditors report on the Company's December 31,
2002 financial statements included in this Form states that the Company's
recurring losses raise substantial doubts about the Company's ability to
continue as a going concern.

                                       12
<PAGE>

Factors That May Affect Future Results and Market Price of Stock.
-----------------------------------------------------------------

The business of the Company involves a number of risks and uncertainties that
could cause actual results to differ materially from results projected in any
forward-looking statement, or statements, made in this report. These risks and
uncertainties include, but are not necessarily limited to the risks set forth
below. The Company's securities are speculative and investment in the Company's
securities involves a high degree of risk and the possibility that the investor
will suffer the loss of the entire amount invested.

NO OPERATING HISTORY; POTENTIAL OF INCREASED EXPENSES.

The Company was organized in 1998, and has no operating history upon which an
evaluation of its business and prospects can be based.

There can be no assurance that the Company will be profitable on a quarterly or
annual basis. In addition, as the Company expands its business network and
marketing operations it will likely need to increase its operating expenses,
broaden its customer support capabilities, and increase its administrative
resources.

POSSIBLE NEED FOR ADDITIONAL FINANCING.

It is possible that revenues from the Company's operations may not be sufficient
to finance its initial operating cost to reach breakeven. If this were to occur,
the Company would need to raise or find additional capital. While the Company
expects to be able to meet its financial obligations for approximately the next
twelve months, there is no assurance that, after such period, the Company will
be operating profitably. If they are not, there can be no assurance that any
required capital will be obtained on terms favorable to the Company. Failure to
obtain adequate additional capital on favorable terms could result in
significant delays in the expansion of new services and market share and could
even result in the substantial curtailment of existing operations and services
to clients.

UNPREDICTABILITY OF FUTURE REVENUES; POTENTIAL FLUCTUATIONS IN QUARTERLY
RESULTS.

As a result of the Company's lack of operating history and the emerging nature
of the market in which it competes, the Company is unable to forecast its
revenues accurately. The Company's current and future expense levels are based
largely on its investment/operating plans and estimates of future revenue and
are to a large extent based on the Company's own estimates. Sales and operating
results generally depend on the volume of, timing of, and ability to obtain
customers, orders for services received, and revenues therefrom generated. These
are, by their nature, difficult at best to forecast.

The Company may be unable to adjust spending in a timely manner to compensate
for any unexpected revenue shortfall or delay. Accordingly, any significant
shortfall or delay in revenue in relation to the Company's planned expenditures
would have an immediate adverse affect on the Company's business, financial
condition, and results of operations. Further, in response to changes in the
competitive environment, the Company may from time to time make certain pricing,
service, or marketing decisions that could have a material adverse effect on the
Company's business, financial condition, operating results, and cash flows.

                                       13
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DEVELOPING MARKET; ACCEPTANCE OF THE INTERNET AS A MEDIUM FOR COMMERCE JUST NOW
BEING PROVEN.

The Company's long-term viability is substantially dependent upon the continued
widespread acceptance and use of the Internet as a medium for business commerce,
in terms of the sales of both products and services to businesses and
individuals. The use of the Internet as a means of business sales and commerce
has only recently reached a point where many companies are making reasonable
profits from their endeavors therein, and there can be no assurance that this
trend will continue.

The Internet has experienced, and is expected to continue to experience,
significant growth in the number of users and amount of traffic. There can be no
assurance that the Internet infrastructure will continue to be able to support
the demands placed on it by this continued growth. In addition, delays in the
development or adoption of new standards and protocols to handle increased
levels of Internet activity or increased governmental regulation could slow or
stop the growth of the Internet as a viable medium for business commerce.
Moreover, critical issues concerning the commercial use of the Internet
(including security, reliability, accessibility and quality of service) remain
unresolved and may adversely affect the growth of Internet use or the
attractiveness of its use for business commerce.

The failure of the necessary infrastructure to further develop in a timely
manner, or the failure of the Internet to continue to develop rapidly as a valid
medium for business would have a material adverse effect on the Company's
business, financial condition, operating results, and cash flows.

UNPROVEN ACCEPTANCE OF THE COMPANY'S SERVICES AND/OR PRODUCTS.

The Company is still in its development stage. As a result, it does not know
with any certainty whether its services and/or products will be accepted within
the business marketplace. If the Company's services and/or products prove to be
unsuccessful within the marketplace, or if the Company fails to attain market
acceptance, it could materially adversely affect the Company's financial
condition, operating results, and cash flows.

DEPENDENCE ON KEY PERSONNEL.

The Company's performance and operating results are substantially dependent on
the continued service and performance of its officer and directors. The Company
intends to hire additional technical, sales, and other personnel as they move
forward with their business model. Competition for such personnel is intense,
and there can be no assurance that the Company can retain its key technical
employees, or that it will be able to attract or retain highly qualified
technical and managerial personnel in the future. The loss of the services of
any of the Company's key employees or the inability to attract and retain the
necessary technical, sales, and other personnel could have a material adverse
effect upon the Company's business, financial condition, operating results, and
cash flows. The Company does not currently maintain "key man" insurance for any
of its key employees.

                                       14
<PAGE>

LIABILITY FOR INFORMATION DISPLAYED ON THE COMPANY'S INTERNET WEB SITES.

The Company may be subjected to claims for defamation, negligence, copyright, or
trademark infringement and various other claims relating to the nature and
content of materials it publishes on its Internet Web site, or those set up for
its clients. These types of claims have been brought, sometimes successfully,
against online businesses in the past. The Company could also face claims based
on the content that is accessible from its own, or its clients', Internet Web
sites through links to other Web SITES.

DEPENDENCE ON CONTINUED GROWTH IN USE OF THE INTERNET.

The success of the Company's business depends, in part, on continued acceptance
and growth in the use of the Internet for business commerce and would suffer if
Internet usage does not continue to grow. Internet usage may be inhibited for a
number of reasons, such as:

o        Inadequate network infrastructure.
o        Security concerns.
o        Inconsistent quality of service.
o        Lack of available cost-effective, high-speed service.
o        The adoption of new standards or protocols for the Internet.
o        Changes or increases in government regulation.

Online companies have experienced interruptions in their services as a result of
outages and other delays occurring due to problems with the Internet network
infrastructure, disruptions in Internet access provided by third-party providers
or failure of third party providers to handle higher volumes of user traffic. If
Internet usage grows, the Internet infrastructure or third-party service
providers may be unable to support the increased demands which may result in a
decline of performance, reliability or ability to access the Internet. If
outages or delays frequently occur in the future, Internet usage, as well as
usage of the Company's Internet Web-sites, could grow more slowly or decline.

RELIANCE ON OTHER THIRD PARTIES.

The Company's and its clients' operations may depend, to a significant degree,
on a number of other third parties, including but not limited to ISPs. The
Company has no effective control over these third parties and no long-term
contractual relationships with any of them. From time to time, the Company
and/or its clients could experience temporary interruptions in their Internet
Web-site connections and related communications access. Continuous or prolonged
interruptions in the Internet Web-site connections or communications access
would have a material adverse effect on the Company's business, financial
condition and results of operations. Most agreements with ISPs place certain
limits on a company's ability to obtain damages from the service providers for
failure to maintain the company's connection to the Internet.

                                       15
<PAGE>

COMPETITION.

The E-commerce solutions market in which the Company will operate is very
competitive. Many competitors have substantially greater, financial, technical,
marketing, and distribution resources than the Company.

In the all its markets, the Company competes against a large number of companies
of varying sizes and resources. There are an increasing number of competitive
services and products offered by a growing number of companies. Increased
competition in any service or product area may result in a loss of a client,
reduction in sales revenue, or additional price competition, any of which could
have a material adverse effect on the Company's operating results. In addition,
existing competitors may continue to broaden their service and/or product lines
and other potential competitors may enter or increase their presence in the
E-commerce, resulting in greater competition for the Company.

Most of the Company's current and potential competitors have substantially
longer operating histories, larger customer bases, greater name and service
recognition, and significantly greater financial, marketing, and other resources
than the Company. In addition, competitors may be acquired by, receive
investments from or enter into other commercial relationships with larger, well-
established and well-financed companies as the use of the Internet and other
online services increases. Many of the Company's competitors may be able to
respond more quickly to changes in customer preferences/needs, devote greater
resources to marketing and promotional campaigns, adopt more aggressive pricing
policies and devote substantially more resources to Internet site and systems
development than the Company.

It is possible that new competitors or alliances among competitors may emerge
and rapidly acquire market share. Increased competition may result in reduced
operating margins and/or loss of market share, either of which could materially
adversely affect the Company's business, results of operations and financial
condition. There can be no assurance that the Company will be able to compete
successfully against current or future competitors or alliances of such
competitors, or that competitive pressures faced by the Company will not
materially adversely affect its business, financial condition, operating results
and cash flows.

RISKS OF POTENTIAL GOVERNMENT REGULATION AND OTHER LEGAL UNCERTAINTIES RELATING
TO THE INTERNET.

The Company is not currently subject to direct federal, state, or local
regulation in the United States and Canada other than regulations applicable to
businesses generally or directly applicable to electronic commerce. However,
because the Internet is becoming increasingly popular, it is possible that a
number of laws and regulations may be adopted with respect to the Internet.
These laws may cover issues such as user privacy, freedom of expression,
pricing, content, and quality of products and services, taxation, advertising,
intellectual property rights and information security. Furthermore, the growth
of electronic commerce may prompt calls for more stringent consumer protection
laws. The adoption of such consumer protection laws could create uncertainty in
Internet usage and reduce the demand for all products and services.

                                       16
<PAGE>

In addition, the Company is not certain how its business may be affected by the
application of existing laws governing issues such as property ownership,
copyrights, encryption, and other intellectual property issues, taxation, libel,
obscenity, and export or import matters. It is possible that future applications
of these laws to the Company's business could reduce demand for its products and
services or increase the cost of doing business as a result of litigation costs
or increased service delivery costs.

Because the Company's services will likely be available over the Internet in
multiple states, and possibly foreign countries, other jurisdictions may claim
that the Company is required to qualify to do business and pay taxes in each
state or foreign country. The Company's failure to qualify in other
jurisdictions when it is required to do so could subject the Company to
penalties and could restrict the Company's ability to enforce contracts in those
jurisdictions. The application of laws or regulations from jurisdictions whose
laws do not currently apply to the Company's business may have a material
adverse affect on its business, results of operations and financial condition.

INTELLECTUAL PROPERTY RIGHTS.

As part of its confidentiality procedures, the Company expects to enter into
nondisclosure and confidentiality agreements with its key employees, and any
consultants and/or business partners and will limit access to and distribution
of its technology, documentation, and other proprietary information.

Despite the Company's efforts to protect any intellectual property rights it may
have, unauthorized third parties, including competitors, may from time to time
copy or reverse-engineer certain portions of the Company's technology and use
such information to create competitive services and/or products.

It is possible that the scope, validity, and/or enforceability of the Company's
intellectual property rights could be challenged by other parties, including
competitors. The results of such challenges before administrative bodies or
courts depend on many factors which cannot be accurately assessed at this time.
Unfavorable decisions by such administrative bodies or courts could have a
negative impact on the Company's intellectual property rights. Any such
challenges, whether with or without merit, could be time consuming, result in
costly litigation and diversion of resources, and cause service or product
delays. If such events should occur, the Company's business, operating results
and financial condition could be materially adversely affected.

ITEM 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The response to this Item is included as a separate Exhibit to this report.
Please see pages F-1 through F-14.


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

In connection with the audits of the most recent fiscal years and any interim
period preceding resignation, no disagreements exist with any former accountant
on any matter of accounting principles or procedure, which disagreements if not
resolved to the satisfaction of the former accountant would have caused them to
make reference in connection with their report to the subject matter of the
disagreement(s).

                                       17
<PAGE>

The principal accountant's report on the financial statements for any of the
past two years contained no adverse opinion or a disclaimer of opinion nor was
qualified as to uncertainty, audit scope or accounting principles.


                                    Part III

ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

(a) The following table furnishes the information concerning the Company's
directors and officers as of December 31, 2002. The directors of the Company are
elected every year and serve until their successors are elected and qualify.

Name                       Age       Title                            Term
------------------         ---       ------------------               ---------

Maria Trinh                35        President, Secretary,            Annual
                                     Treasurer and Director

The following table sets forth the portion of their time the Officers and
Directors devote to the Company:

Maria Trinh         50%

The term of office for each director is one (1) year, or until his/her successor
is elected at the Company's annual meeting and is qualified. The term of office
for each officer of the Company is at the pleasure of the board of directors.

The board of directors does not have a nominating committee. Therefore, the
selection of persons or election to the board of directors was neither
independently made nor negotiated at arm's length.

(b) Identification of Certain Significant Employees.

Strategic matters and critical decisions are handled by the directors and
executive officers of the Company.

(c) Family Relationships. None

                                       18
<PAGE>

(d) Business Experience.

The following is a brief account of the business experience during the past five
years of each director and executive officer of the Company, including principal
occupations and employment during that period and the name and principal
business of any corporation or other organization in which such occupation and
employment were carried on.

Maria Trinh graduated from the University of British Columbia with a Fine Arts
Degree in 1991. In 1995 she worked for Advanced Cultural Technologies, a
software development Company in Vancouver, B.C. For the past five years she has
been a free-lance artist, taking up jewelry design in early 1998 commensurate
with the founding of Galaxyblue Jewelry. As a small business owner, Ms. Trinh
saw the need and the potential in helping to bring e-commerce solutions to small
and medium sized businesses. Since the inception of the Company, Ms. Trinh has
been working on developing a viable E-commerce solutions business model.

(e) Directors Compensation

Directors who are also officers of the Registrant receive no cash compensation
for services as a director.


ITEM 10. EXECUTIVE COMPENSATION

Section 16(a) of the Securities Exchange Act of 1934, as amended (The "Exchange
Act"), requires the Registrant's officers and directors, and persons who own
more than 10% of a registered class of the Registrant's equity securities, to
file reports of ownership and changes in ownership of equity securities of the
Registrant with the Securities and Exchange Commission and NASDAQ. Officers,
directors and greater-than 10% shareholders are required by the Securities and
Exchange Commission regulation to furnish the Registrant with copies of all
Section 16(a) that they file.

Some of the officers and directors of the Company will not devote more than a
portion of their time to the affairs of the Company. There will be occasions
when the time requirements of the Company's business conflict with the demands
of their other business and investment activities. Such conflict may require
that the company attempt to employ additional personnel. There is no assurance
that the services of such persons will be available or that they can be obtained
upon terms favorable to the Company.

EXECUTIVE COMPENSATION

(a) Cash Compensation.

Compensation paid by the Company for all services provided up to December 31,
2002 to each of its executive officers

                                       19
<PAGE>
<TABLE>

                         SUMMARY COMPENSATION TABLE OF EXECUTIVES
<CAPTION>

                             Annual Compensation                      Long Term Compensation

(a)                         (b)    (c)     (d)       (e)              (f)              (g)

Name and                   Year  Salary   Bonus     Other          Restricted      Securities
Principal                         ($)      ($)      Annual            Stock        Underlying/
Position                                         Compensation        Awards          Options
                                                     ($)              ($)              (#)

<S>                        <C>      <C>     <C>      <C>               <C>              <C>
Maria Trinh                2002     0       0        0                 0                0
President, Treasurer       2001     0       0        0                 0                0
Secretary and Director

</TABLE>

(h) The Company has made no Long Term Compensation payouts (LTIP or other)


ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

a) Beneficial owners of five percent (5%) or greater, of the Company's common
stock: No preferred stock is outstanding at the date of this offering. The
following sets forth information with respect to ownership by holders of more
than five percent (5%) of the Registrant's common stock known by the Registrant
based upon 2,199,000 shares outstanding at December 31, 2002.

Title of       Name and Address of           Amount of Beneficial       Percent
Class          Beneficial Owner              Interest                   of Class

Common         Maria Trinh                   2,000,000                  91%
               8260 Ryan Road
               Richmond, BC  V7A 2E5

b) The following sets forth information with respect to the Company's common
stock beneficially owned by each Officer and Director, and by all Directors and
Officers as a group, at December 31, 2002.

Title of          Name and Address of         Amount of                 Percent
Class             Beneficial Owner            Beneficial Interest       of Class

Common            Maria Trinh                  2,000,000                 91%
                  8260 Ryan Road
                  Richmond, BC  V7A 2E5

Total as a group                               2,000,000                 91%


ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None.

                                       20
<PAGE>

                                     Part IV

ITEM 13. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

a)       Financial Statements and Schedules. The following financial statements
         and schedules for the Company as of December 31, 2002 are filed as part
         of this report.

         (1) Financial statements of Cyber Public Relations, Inc.

                                                                            Page

Independent Auditor's Report for year ended December 31, 2002................F-3

Balance Sheet at end of December 31, 2002....................................F-4

Statement of Losses for the years ended of December 31, 2002 and 2001
  and the period June 29, 1998 (date of inception) to December 31, 2002......F-5

Statement of Deficiency in Stockholders' Equity for the years ended
  December 31, 2002 and 2001 and the period June 29, 1998 (date of
  inception) to December 31, 2002............................................F-6

Statement of Cash Flows for the years ended December 31, 2002 and 2001 and
  the period June 29, 1998 (date of inception) to December 31, 2002..........F-7

Notes to Financial Statements................................................F-8


         (2) Financial Statement Schedules

All schedules are omitted because they are not applicable or the required
information is shown in the financial statements or notes thereto.

         (3) Exhibits

The exhibits listed below are required by Item 601 of Regulation S-K. Each
management contract or compensatory plan or arrangement required to be filed as
an exhibit to this Form 10-K has been identified.

                                       21
<PAGE>

Exhibit
Number            Description of Document
------            -----------------------

3.1 (a)        Articles of Incorporation of the Registrant
3.2 (a)        By-laws of the Registrant
10.1 (b)       Convertible note dated March 14, 2002
10.2 (b)       Convertible note dated March 28, 2002
99.1           Section 906 Certification of CEO
99.2           Section 906 Certification of CFO

------------------------
(a)      Included as an Exhibit to Cyber Public Relations, Inc.'s registration
         statement on Form 10-SB dated January 23, 2001
(b)      Included as an Exhibit to Cyber Public Relations, Inc's Form 10Q dated
         May 14, 2002


(b)      Reports on Form 8-K

The Company did not file any current reports on Form 8-K during the reporting
period.


ITEM 14. CONTROLS AND PROCEDURES

The registrant's Principal executive officers and principal financial officer,
based on their evaluation of the registrant's disclosure controls and procedures
(as defined in Rules 13a-14 ( c ) of the Securities Exchange Act of 1934 ) as of
December 31, 2002 have concluded that the registrants' disclosure controls and
procedures are adequate and effective to ensure that material information
relating to the registrants and their consolidated subsidiaries is recorded,
processed , summarized and reported within the time periods specified by the
SEC' s rules and forms, particularly during the period in which this quarterly
report has been prepared.

The registrants' principal executive officers and principal financial officer
have concluded that there were no significant changes in the registrants'
internal controls or in other factors that could significantly affect these
controls subsequent to December 31, 2002 the date of their most evaluation of
such controls, and that there was no significant deficiencies or material
weaknesses in the registrant's internal controls.


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

Date:    April 7, 2003             CYBER PUBLIC RELATIONS, INC.


                                   By:  /s/ Maria Trinh
                                   ------------------------------------
                                   Maria Trinh
                                   President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

/s/ Maria Trinh                  Director                  March 27, 2002
------------------
Maria Trinh


                                       22

<PAGE>

I, Maria Trinh, certify that :

I have reviewed this annual report on Form 10-KSB of Cyber Public Relations Inc.

Based on my knowledge, this annual report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this annual report ;

Based on my knowledge, the financial statements, and other financial information
included in this annual report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this annual report ;

The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures ( as defined in
Exchange Act Rules 13a-14 and 15d-14 ) for the registrant and have :

Designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities , particularly during the
period in which this annual report is being prepared ; Evaluated the
effectiveness of the registrant's disclosure controls and procedures as of a
date within 90 days prior to the filing date of this annual report ( the "
Evaluation date " ) and Presented in this annual report our conclusions about
the effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation date ;

The registrant's other certifying officers and I have disclosed , based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors : All significant deficiencies in the design or
operation of internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in internal
controls, and Any fraud, whether or not material , that involves management or
other employees who have a significant role in the registrant's internal
controls ; and The registrant's other certifying officers and I have indicated
in this annual report whether there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date : April 7, 2003

/s/ Maria Trinh
---------------
Maria Trinh


                                       23
<PAGE>







                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549



                       FINANCIAL STATEMENTS AND SCHEDULES

                           DECEMBER 31, 2002 AND 2001



                         FORMING A PART OF ANNUAL REPORT

                 PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934


                          CYBER PUBLIC RELATIONS, INC.









                                      F-1
<PAGE>

<TABLE>
<CAPTION>

                           CYBER PUBLIC RELATIONS INC.
                          INDEX TO FINANCIAL STATEMENTS



                                                                                Page No.
                                                                                --------

<S>                                                                             <C>
Report of Independent Certified Public Accountants                              F-3

Balance Sheet at December 31, 2002                                              F-4

Statement of Losses for the years ended of December 31, 2002 and 2001
   and the period from June 29, 1998 (date of inception) through
   December 31, 2002                                                            F-5

Statement of Deficiency in Stockholders' Equity for the years ended
   December 31, 2002 and 2001 and the period from June 29, 1998
  (date of inception) through December 31, 2002                                 F-6

Statement of Cash Flows for the years ended December 31, 2002 and 2001 and
  the period from June 29, 1998 (date of inception) through December 31, 2002   F-7

Notes to Financial Statements                                               F-8 to F-14


</TABLE>

                                      F-2
<PAGE>


                    RUSSELL BEDFORD STEFANOU MIRCHANDANI LLP
                          CERTIFIED PUBLIC ACCOUNTANTS



               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


Board of Directors
Cyber Public Relations, Inc
Richmond, B.C.
Canada


We have audited the accompanying balance sheet of Cyber Public Relations, Inc,
(the "Company", a development stage company) as of December 31, 2002 and the
related statements of losses, deficiency in stockholders' equity, and cash flows
for the two years ended December 31, 2002 and 2001. These financial statements
are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based upon our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. 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. We believe our audits provide a reasonable
basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Cyber Public Relations, Inc
(development stage company) as of December 31, 2002, and the results of its
operations and its cash flows for the two years ended December 31, 2002 and
2001, in conformity with accounting principles generally accepted in the United
States of America. We express no opinion on the cumulative period from inception
through December 31, 2000.

The accompanying financial statements have been prepared assuming the Company
will continue as a going concern. As discussed in Note G to the accompanying
financial statements, the Company is in the development stage and has incurred
substantial losses from the date of inception. This raises substantial doubt
about the Company's ability to continue as a going concern. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

                                 /s/ RUSSELL BEDFORD STEFANOU MIRCHANDANI LLP
                                 --------------------------------------------
                                      RUSSELL BEDFORD STEFANOU MIRCHANDANI LLP
                                           Certified Public Accountants

New York, New York
April 3, 2003

                                      F-3
<PAGE>


                          CYBER PUBLIC RELATIONS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
                                DECEMBER 31, 2002

                                     ASSETS
Current Assets:
Cash                                                                   $ 12,565
                                                                       ---------
    Total current assets                                               $ 12,565
                                                                       =========


                          LIABILITIES AND DEFICIENCY IN
                              STOCKHOLDER'S EQUITY
Current Liabilities:
Accrued Expenses and Liabilities                                         12,029
Officer Advances  (Note B)                                                6,726
                                                                       ---------
    Total Current Liabilities                                            18,755

Notes payable ( Note c )                                                 35,000


DEFICIENCY IN STOCKHOLDER'S EQUITY:
Preferred Stock, par value, $ .001 per share; authorized 10,000,000
shares; None issued and outstanding                                          --
Common Stock, par value, $ .001 per share; authorized 100,000,000
shares; 2,199,000 issued and outstanding                                  2,199
Additional Paid in Capital                                               19,791
Accumulated Deficit                                                     (63,180)
                                                                       ---------
Total deficiency in stockholder's equity                                (41,190)
                                                                       $ 12,565
                                                                       =========



                (See accompanying notes to financial statements)

                                      F-4
<PAGE>
<TABLE>

                                          CYBER PUBLIC RELATIONS, INC
                                         (A DEVELOPMENT STAGE COMPANY)
                                             STATEMENT OF LOSSES
<CAPTION>

                                                                                          For the period
                                                                                            from June
                                                                                          29, 1998(date
                                                                                          of inception)
                                                         For the year      For the year      through
                                                         ended 2002        ended 2001     December 31, 2002
                                                         ----------        ----------     -----------------
<S>                                                      <C>               <C>           <C>
Revenue:
     Sales                                               $        --       $       198       $     6,336
Costs and Expenses:
  General and administrative                                  22,497             8,011            57,239
                                                         ------------      ------------      ------------
    Total Operating Expenses                                  22,497             8,011            57,239
Loss from Operations                                         (22,497)           (7,813)          (50,903)

Interest Expenses                                            (12,277)               --           (12,277)
Income (taxes) benefit                                            --                --                --
                                                         ------------      ------------      ------------
Net Loss                                                 $   (34,774)      $    (7,813)      $   (63,180)
                                                         ============      ============      ============
Loss per common share (basic and assuming dilution)      $     (0.02)      $     (0.00)      $     (0.03)
                                                         ============      ============      ============
Weighted average common shares outstanding                 2,199,000         2,199,000         2,199,000

</TABLE>

                               (See accompanying notes to financial statements)

                                                     F-5
<PAGE>
<TABLE>

                                               CYBER PUBLIC RELATIONS, INC
                                              (A DEVELOPMENT STAGE COMPANY)
                                     STATEMENT OF DEFICIENCY IN STOCKHOLDER'S EQUITY
                       FOR THE PERIOD JUNE 29, 1998 (DATE OF INCEPTION) THROUGH DECEMBER 31, 2002
<CAPTION>


                                       Preferred Stock     Common Stock          Additional
                                      ----------------  --------------------      Paid In    Accumulated
                                      Shares   Amount    Shares       Amount      Capital      Deficit        Total
                                      ------   ------    ------       ------      -------      -------        -----
<S>                                  <C>      <C>      <C>          <C>          <C>          <C>           <C>
Common shares issued on July 5,
1998 in exchange of services
rendered valued at $.01 per share       --    $  --    2,000,000    $   2,000    $  18,000    $      --     $  20,000

Common shares issued on October
20, 1998 in exchange for debt
valued at $.01 per share                --       --       25,000           25          225           --           250

Common shares issued on October
20, 1998 for cash at $.01 per
share                                   --       --       24,000           24          216           --           240

Net loss                                --       --           --           --           --      (20,569)      (20,569)
                                     ------   ------   ----------   ----------   ----------    ---------     ---------
Balance at December 31, 1998            --       --    2,049,000        2,049       18,441      (20,569)          (79)

Net income                              --       --           --           --           --        1,367         1,367
                                     ------   ------   ----------   ----------   ----------    ---------     ---------
Balance at December 31, 1999            --       --    2,049,000        2,049       18,441      (19,202)        1,288

Common shares issued on October
10, 2000 in exchange for
services rendered valued at $.01
per share                               --       --      150,000          150        1,350           --         1,500

Net loss                                --       --           --           --           --       (1,391)       (1,391)
                                     ------   ------   ----------   ----------   ----------    ---------     ---------
Balance at December 31, 2000            --       --    2,199,000        2,199       19,791      (20,593)        1,397

Net loss                                --       --           --           --           --       (7,813)       (7,813)
                                     ------   ------   ----------   ----------   ----------    ---------     ---------
Balance at December 31, 2001            --       --    2,199,000        2,199       19,791      (28,406)       (6,416)

Net loss                                --       --           --           --           --      (34,774)      (34,774)
                                     ------   ------   ----------   ----------   ----------    ---------     ---------
Balance at December 31, 2002         $  --    $  --    2,199,000    $   2,199    $  19,791    $ (63,180)    $ (41,190)
                                     ======   ======   ==========   ==========   ==========   ==========    ==========

                                    (See accompanying notes to financial statements)
</TABLE>

                                                          F-6
<PAGE>
<TABLE>

                                CYBER PUBLIC RELATIONS, INC
                                (A DEVELOPMENT STAGE COMPANY)
                                 STATEMENTS OF CASH FLOWS
<CAPTION>

                                                                                For the period from
                                                                                June 29, 1998 (date
                                                   For the year   For the year  of inception) through
                                                   ended 2002     ended 2001      December 31, 2002
                                                   ----------     ----------      -----------------
<S>                                                     <C>            <C>            <C>
Cash Flows from operating activities:
  Net loss                                              $(34,774)      $ (7,813)      $(63,180)
  Adjustments to reconcile net loss
     To net cash provided by operating activities:
     Common Stock issued in exchange for
      services rendered                                       --             --         21,500
     Common Stock issued in exchange for debt                 --             --            250

  Change in assets and liabilities:
     Inventory                                             1,980            100             --
     Accrued expenses and liabilities                     12,029             --         12,029
     Decrease in Officer's advances                       (1,926)            --         (1,926)
                                                        ---------      ---------      ---------
  Net cash used by operating activities                  (22,691)        (7,713)       (31,327)

Cash Flows from investing activities:                         --             --             --

Cash Flows from financing activities:
   Issuance of common stock for cash                          --             --            240
   Advances from shareholder                                  --          7,834          8,652
   Proceeds from note payable                             35,000             --         35,000
                                                        ---------      ---------      ---------
  Net cash provided by financing activities               35,000          7,834         43,892

Net increase (decrease) in cash                           12,309            121         12,565

Cash- beginning of period                                    256            135             --
                                                        ---------      ---------      ---------
Cash -end of period                                     $ 12,565       $    256       $ 12,565
                                                        =========      =========      =========
Supplemental Disclosures:
  Interest paid for the period                          $  5,952       $     --       $     --
  Income taxes paid for the period                            --             --             --
  Common stock issued in exchange of services                 --             --         21,500
  Common stock issued in exchange for debt                    --             --            250

</TABLE>

                (See accompanying notes to financial statements)

                                      F-7
<PAGE>


                           CYBER PUBLIC RELATIONS, INC
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED DECEMBER 31, 2002 AND 2001

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


NOTE A - SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of
the accompanying financial statements follows.


Business and Basis of Presentation
----------------------------------

Cyber Public Relations, Inc. (the "Company") was organized on June 29, 1998,
under the laws of the State of Florida. The Company is currently doing business
on the Internet under the name Galaxyblue Jewelry and intends to acquire and
develop additional complementary and other products to sell online. The Company
also plans to provide a combination of consulting and related services to small
and medium size businesses enabling them to effectively engage in E-commerce.
The Company is in the development stage, as defined by Statement of Financial
Accounting Standards No. 7 ("SFAS 7"). To date, the Company has incurred
expenses and has sustained losses. Consequently, its operations are subject to
all the risks inherent in the establishment of a new business enterprise. For
the period from inception through December 31, 2002, the Company has accumulated
losses of $ 63,180.

Revenue Recognition
-------------------

The Company will follow a policy of recognizing income as revenue in the period
the services are provided and the products shipped.

Use of Estimates
----------------

The preparation of the financial statement in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.

Foreign Currency Translation
----------------------------

The Company translates the foreign currency financial statements in accordance
with the requirements of Statement of Financial Accounting Standards No. 52,
"Foreign Currency Translation." Assets and liabilities are translated at current
exchange rates, and related revenue and expenses are translated at average
exchange rates in effect during the period. Resulting translation adjustments
are recorded as a separate component in stockholders' equity. Foreign currency
translation gains and losses are included in the statement of operations.

Cash Equivalents
----------------

For the purpose of the accompanying financial statements, all highly liquid
investments with maturity of three months or less are considered to be cash
equivalents.

Inventories
-----------

Inventories are stated at the lower of cost or market determined by the specific
identification method.

                                      F-8
<PAGE>

                           CYBER PUBLIC RELATIONS, INC
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED DECEMBER 31, 2002 AND 2001

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


NOTE A - SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

Impairment of Long-Lived Assets
-------------------------------

The Company has adopted Statement of Financial Accounting Standards No. 144
(SFAS 144). The Statement requires that long-lived assets and certain
identifiable intangibles held and used by the Company be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. Events relating to recoverability may include
significant unfavorable changes in business conditions, recurring losses, or a
forecasted inability to achieve break-even operating results over an extended
period. The Company evaluates the recoverability of long-lived assets based upon
forecasted undercounted cash flows. Should impairment in value be indicated, the
carrying value of intangible assets would be adjusted, based on estimates of
future discounted cash flows resulting from the use and ultimate disposition of
the asset. SFAS No. 144 also requires assets to be disposed of be reported at
the lower of the carrying amount or the fair value less costs to sell.

Income Taxes
------------

The Company has adopted Financial Accounting Standards No. 109 ("SFAS 109"),
which requires the recognition of deferred tax liabilities, and assets for the
expected future tax consequences of events that have been included in the
financial statement or tax returns. Under this method, deferred tax liabilities
and assets are determined based on the difference between financial statements
and the tax basis of assets and liabilities using enacted tax rates in effect
for the year in which the differences are expected to reverse. Temporary
differences between taxable income reported for financial reporting purposes and
income tax purposes are insignificant.

Research and Development
------------------------

Company sponsored research and development costs related to both present and
Future products will be expended in the period incurred.

Advertising
-----------

The Company will follow a policy of charging the costs of advertising to
expenses incurred. The Company did not incur any advertising costs during the
years ended December 31, 2002 and 2001.

Comprehensive Income
--------------------

Statement of Financial Accounting Standards No. 130 ("SFAS 130"), "Reporting
Comprehensive Income," establishes standards for reporting and displaying of
comprehensive income, its components and accumulated balances. Comprehensive
income is defined to include all changes in equity except those resulting from
investments by owners and distributions to owners. Among other disclosures, SFAS
130 requires that all items that are required to be recognized under current
accounting standards as components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as other
financial statements. The Company does not have any items of comprehensive
income in any of the periods presented.

                                      F-9
<PAGE>

                           CYBER PUBLIC RELATIONS, INC
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED DECEMBER 31, 2002 AND 2001

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


NOTE A - SUMMARY OF ACCOUNTING POLICIES (CONTINUED)


Segment Information
-------------------

Statement of Financial Standards No.131 " Disclosure about segments of an
enterprise and Related Information" ( "SFAS 131") establishes standards for
reporting information regarding operating segments in annual financial
statements and requires selected information for those segments to be presented
in interim financial reports issued to stockholders. SFAS 131 also establishes
standards for related disclosures about products and services and geographic
areas. Operating segments are identified as components of an enterprise about
which separate discrete financial information is available for evaluation by the
chief operating decision maker, or decision-making group, in making decisions
how to allocate resources and assess performance. The information disclosed
herein materially represents all of the financial information related to the
Company's principal operating segment.


Stock Based Compensation
------------------------

In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure-an amendment of SFAS 123." This statement
amends SFAS No. 123, "Accounting for Stock-Based Compensation," to provide
alternative methods of transition for a voluntary charge to the fair value based
method of accounting for stock-based employee compensation. In addition, this
statement amends the disclosure requirements of SFAS No. 123 to require
prominent disclosures in both annual and interim financial statements about the
method of accounting for stock-based employee compensation and the effect of the
method used on reported results. The Company has chosen to continue to account
for stock-based compensation using the intrinsic value method prescribed in APB
Opinion No. 25 and related interpretations. Accordingly, compensation expense
for stock options is measured as the excess, if any, of the fair market value of
the Company's stock at the date of the grant over the exercise price of the
related option. The Company has adopted the annual disclosure provisions of SFAS
No. 148 in its financial reports for the year ended December 31, 2002 and will
adopt the interim disclosure provisions for its financial reports for the
quarter ended March 31, 2003.


Net Loss Per Share
------------------

The Company has adopted Statement of Financial Accounting Standards No. 128,
"Earnings Per Share" ("SFAS 128"), specifying the computation, presentation and
disclosure requirements of earnings per share information. Basic earnings per
share have been calculated based upon the weighted average number of common
shares outstanding. Stock options and warrants have been excluded as common
stock equivalents in the diluted earnings per share because they are either
antidilutive, or their effect is not material. There is no effect on earnings
per share information for the year ended December 31, 2002 relating to the
adoption of this standard.


Liquidity
---------

As shown in the accompanying financial statements, the Company incurred a net
loss of $34,774 and $7,813 during the years ended December 31, 2002 and 2001,
respectively; and a net loss of $63,180 for the period from the date of
inception through December 31, 2002.

                                      F-10
<PAGE>

                           CYBER PUBLIC RELATIONS, INC
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED DECEMBER 31, 2002 AND 2001

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


NOTE A-SUMMARY OF ACCOUNTING POLICIES (CONTINUED)


Concentration of Credit Risk
----------------------------

Financial instruments and related items, which potentially subject the Company
to concentrations of credit risk, consist primarily of cash, cash equivalents
and trade receivables. The Company places its cash and temporary cash
investments with high credit quality institutions. At times, such investments
may be in excess of applicable insurance limits.


Reclassifications
-----------------

Certain reclassifications have been made in prior year's financial statements to
conform to classifications used in the current year .

New Accounting Pronouncements
-----------------------------

In July 2001, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards No. 141, "Business Combinations" (SFAS No.
141), and Statement of Financial Accounting Standards No. 142, "Goodwill and
Other Intangible Assets" (SFAS No. 142). The FASB also issued Statement of
Financial Accounting Standards No. 143, "Accounting for Obligations Associated
with the Retirement of Long-Lived Assets" (SFAS No. 143), and Statement of
Financial Accounting Standards No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" (SFAS No. 144) in August and October 2001,
respectively.

SFAS No. 141 requires the purchase method of accounting for business
combinations initiated after June 30, 2001 and eliminates the
pooling-of-interest method. The adoption of SFAS No. 141 had no material impact
on the Company's consolidated financial statements. Effective January 1, 2002,
the Company adopted SFAS No. 142. Under the new rules, the Company will no
longer amortize goodwill and other intangible assets with indefinite lives, but
such assets will be subject to periodic testing for impairment. On an annual
basis, and when there is reason to suspect that their values have been
diminished or impaired, these assets must be tested for impairment, and
write-downs to be included in results from operations may be necessary. SFAS No.
142 also requires the Company to complete a transitional goodwill impairment
test six months from the date of adoption.

Any goodwill impairment loss recognized as a result of the transitional goodwill
impairment test will be recorded as a cumulative effect of a change in
accounting principle no later than the end of fiscal year 2002. The adoption of
SFAS No. 142 had no material impact on the Company's consolidated financial
statements

SFAS No. 143 establishes accounting standards for the recognition and
measurement of an asset retirement obligation and its associated asset
retirement cost. It also provides accounting guidance for legal obligations
associated with the retirement of tangible long-lived assets. SFAS No. 143 is
effective in fiscal years beginning after June 15, 2002, with early adoption
permitted. The Company expects that the provisions of SFAS No. 143 will not have
a material impact on its consolidated results of operations and financial
position upon adoption. The Company plans to adopt SFAS No. 143 effective
January 1, 2003.

SFAS No. 144 establishes a single accounting model for the impairment or
disposal of long-lived assets, including discontinued operations. SFAS No. 144
superseded Statement of Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of"
(SFAS No. 121), and APB Opinion No. 30, "Reporting the Results of Operations -
Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary,
Unusual and Infrequently Occurring Events and Transactions". The Company adopted
SFAS No. 144 effective January 1, 2002. The adoption of SFAS No. 144 had no
material impact on Company's consolidated financial statements.

                                      F-11
<PAGE>

                           CYBER PUBLIC RELATIONS, INC
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED DECEMBER 31, 2002 AND 2001

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


NOTE A-SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
--------------------------------

New Accounting Pronouncements
-----------------------------

In April 2002, the FASB issued Statement No. 145, "Rescission of FASB Statements
No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections." This Statement rescinds FASB Statement No. 4, "Reporting Gains and
Losses from Extinguishments of Debt", and an amendment of that Statement, FASB
Statement No. 64, "Extinguishments of Debt Made to Satisfy Sinking-Fund
Requirements" and FASB Statement No. 44, "Accounting for Intangible Assets of
Motor Carriers". This Statement amends FASB Statement No. 13, "Accounting for
Leases", to eliminate an inconsistency between the required accounting for
sale-leaseback transactions and the required accounting for certain lease
modifications that have economic effects that are similar to sale-leaseback
transactions. The Company does not expect the adoption to have a material impact
to the Company's financial position or results of operations.

In June 2002, the FASB issued Statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." This Statement addresses financial
accounting and reporting for costs associated with exit or disposal activities
and nullifies Emerging Issues Task Force (EITF) Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." The provisions
of this Statement are effective for exit or disposal activities that are
initiated after December 31, 2002, with early application encouraged. The
Company does not expect the adoption to have a material impact to the Company's
financial position or results of operations.

In October 2002, the FASB issued Statement No. 147, "Acquisitions of Certain
Financial Institutions-an amendment of FASB Statements No. 72 and 144 and FASB
Interpretation No. 9", which removes acquisitions of financial institutions from
the scope of both Statement 72 and Interpretation 9 and requires that those
transactions be accounted for in accordance with Statements No. 141, Business
Combinations, and No. 142, Goodwill and Other Intangible Assets. In addition,
this Statement amends SFAS No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets, to include in its scope long-term customer-relationship
intangible assets of financial institutions such as depositor- and
borrower-relationship intangible assets and credit cardholder intangible assets.
The requirements relating to acquisitions of financial institutions are
effective for acquisitions for which the date of acquisition is on or after
October 1, 2002. The provisions related to accounting for the impairment or
disposal of certain long-term customer-relationship intangible assets are
effective on October 1, 2002. The adoption of this Statement did not have a
material impact to the Company's financial position or results of operations as
the Company has not engaged in either of these activities.

In December 2002, the FASB issued Statement No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure", which amends FASB Statement No. 123,
Accounting for Stock-Based Compensation, to provide alternative methods of
transition for a voluntary change to the fair value based method of accounting
for stock-based employee compensation. In addition, this Statement amends the
disclosure requirements of Statement 123 to require prominent disclosures in
both annual and interim financial statements about the method of accounting for
stock-based employee compensation and the effect of the method used on reported
results. The transition guidance and annual disclosure provisions of Statement
148 are effective for fiscal years ending after December 15, 2002, with earlier
application permitted in certain circumstances. The interim disclosure
provisions are effective for financial reports containing financial statements
for interim periods beginning after December 15, 2002. The adoption of this
statement did not have a material impact on the Company's financial position or
results of operations as the Company has not elected to change to the fair value
based method of accounting for stock-based employee compensation.

In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable Interest Entities." Interpretation 46 changes the criteria by which one
company includes another entity in its consolidated financial statements.
Previously, the criteria were based on control through voting interest.

                                      F-12
<PAGE>

                           CYBER PUBLIC RELATIONS, INC
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED DECEMBER 31, 2002 AND 2001

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


NOTE A-SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

New Accounting Pronouncements
-----------------------------

Interpretation 46 requires a variable interest entity to be consolidated by a
company if that company is subject to a majority of the risk of loss from the
variable interest entity's activities or entitled to receive a majority of the
entity's residual returns or both. A company that consolidates a variable
interest entity is called the primary beneficiary of that entity. The
consolidation requirements of Interpretation 46 apply immediately to variable
interest entities created after January 31, 2003. The consolidation requirements
apply to older entities in the first fiscal year or interim period beginning
after June 15, 2003. Certain of the disclosure requirements apply in all
financial statements issued after January 31, 2003, regardless of when the
variable interest entity was established. The Company does not expect the
adoption to have a material impact to the Company's financial position or
results of operations.


NOTE B - RELATED PARTY TRANSACTIONS

The Company's President and principal shareholder has advanced $6,726 to the
Company as of December 31, 2002 . No formal agreements or repayment terms exist.


NOTE C - NOTES PAYABLE

Notes payable at December 31, 2002 consists of the following:

     Note payable to an entity controlled by an individual
     related to the Company's President; Quarterly
     installments of interest only at 10% per annum,
     unsecured and guaranteed by a Company officer and
     shareholder. Maturity date is in March 2004 ;              $        35,000
                                                                ---------------
     Less current portion                                       $             -
                                                                ---------------
                                                                $        35,000

NOTE D - CAPITAL STOCK

The Company is authorized to issue 100,000,000 shares of common stock, with a
par value of $ .001 per share, and 10,000,000 shares of preferred stock, with a
par value of $ .001 per share. On July 5, 1998, the Company issued 2,000,000
shares of its common stock for services rendered. The Company valued the shares
issued at $0.01 per share, which represents the fair value of the services
received which did not differ materially from the value of the stock issued.

On October 20, 1998, the Company issued 49,000 common shares in a private
placement in exchange for $240 in cash and the forgiveness of $250 of previously
incurred debt.

On October 10, 2000, the Company issued 150,000 shares of its common stock for
services rendered. The Company valued the shares issued at $0.01 per share,
which represents the fair value of the services received which did not differ
materially from the value of the stock issued.

NOTE E - INCOME TAXES

The Company has adopted Financial Accounting Standards No. 109, which requires
the recognition of deferred tax liabilities and assets for the expected future
tax consequences of events that have been included in the financial statement or
tax returns.

                                      F-13
<PAGE>

                           CYBER PUBLIC RELATIONS, INC
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED DECEMBER 31, 2002 AND 2001

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


NOTE E - INCOME TAXES (CONTINUED)

Under this method, deferred tax liabilities and assets are determined based on
the difference between financial statements and tax bases of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse. Temporary differences between taxable
income reported for financial reporting purposes and income tax purposes are
insignificant. At December 31, 2002, the Company has available for federal
income tax purposes a net operating loss carry forward of approximately $63,000,
expiring in the year 2022, that may be used to offset future taxable income. The
Company has provided a valuation reserve against the full amount of the net
operating loss benefit, since in the opinion of management based upon the
earnings history of the Company, it is more likely than not that the benefits
will not be realized. Due to significant changes in the companies ownership, the
Company's future use of its existing net operating losses may be limited.

Components of deferred tax assets as of December 31, 2002 are as follows:

                  Non-current:
                  Net operating loss carry forward             $    9,500
                  Valuation allowance                          $   (9,500)
                                                               -----------
                  Net deferred tax asset                       $        -
                                                               ===========

NOTE F - LOSSES PER SHARE

The following table presents the computation of basic and diluted losses per
share:

                                                     2002           2001
                                                     ----           ----
    Loss available for common shareholders           $ (34,774)     $  (7,813)
                                                     ==========     ==========
    Basic and fully diluted loss per share           $   (0.02)     $   (0.00)
                                                     ==========     ==========
    Weighted average common shares outstanding       2,199,000      2,199,000

Net loss per share is based upon the weighted average shares of common stock
outstanding.

NOTE G - GOING CONCERN

The accompanying financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. As shown in the accompanying
financial statements during the period June 29, 1998 (date of inception) through
December 31, 2002, the Company has incurred losses of $63,180. In addition, the
Company has a deficiency in stockholder's equity of $ 41,190 at December 31,
2002. These factors among others may indicate that the Company will be unable to
continue as a going concern for a reasonable period of time.

The Company's existence is dependent upon management's ability to develop
profitable operations. Management is devoting substantially all of its efforts
to establishing its business and there can be no assurance that Company's
efforts will be successful. However, the planned principal operations have not
fully commenced and no assurance can be given that management's actions will
result in profitable operations or the resolution of its liquidity problems. The
accompanying statements do not include any adjustments that might result should
the Company be unable to continue as a going concern.

In order to improve the Company's liquidity, the Company is actively pursuing
additional equity financing through discussions with investment bankers and
private investors. There can be no assurance the Company will be successful in
its efforts to secure additional equity financing.


                                      F-14