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

                                   FORM 10-KSB

[x]  ANNUAL  REPORT  UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF  1934
                 For  the  fiscal  year  ended  December  31,  2001

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

Commission file number: 000-32711

                            UNIVERSAL ICE BLAST, INC.
                 (Name of small business issuer in its charter)

            Nevada                                     88-0360067
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)

          533 6th Street South, Kirkland, WA                   98033
       (Address of principal executive offices)              (Zip Code)

                     Issuer's telephone number: (425) 893-8424

Securities  registered  under  Section  12(b)  of  the  Exchange  Act:

        Title of each class     Name of each exchange on which registered
                                                none

         Securities registered under Section 12(g) of the Exchange Act:

                                  Common Stock

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

Check  if there is no disclosure of delinquent filers in response 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.  [ ]

Revenues  for  the  issuer's  most  recent  fiscal  year  were  $290,815

The  approximate  market  value of the voting stock held by nonaffiliates of the
registrant  as  Of  April  30,  2002  was  $3,238,000.

Common  Stock  outstanding  as  of  April  30,  2002  was  34,166,654  shares

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





<page>  1
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

                                      INDEX

                                     PART I

ITEM  1.     Description  of  Business                                        3

ITEM  2.     Description  of  Property                                        9

ITEM  3.     Legal  Proceedings                                               9

ITEM  4.     Submission  of  Matters  to  a  Vote  of  Security  Holders      9

                                     PART II

ITEM  5.     Market  for  Common  Equity and Related Stockholder Matters      9

ITEM  6.     Management's  Discussion  and Analysis or Plan of Operation     11

ITEM  7.     Financial  Statements                                           17

ITEM  8.     Changes In and Disagreements With Accountants on Accounting
                    and  Financial  Disclosure                               38

                                    PART III

ITEM  9.     Directors, Executive Officers, Promoters and Control Persons;
                   Compliance With Section 16(a) of the Exchange Act         39

ITEM  10.    Executive  Compensation                                         40

ITEM  11.    Security Ownership of Certain Beneficial Owners and Management
                    and  Related  Stockholder  Matters                       41

ITEM  12.    Certain  Relationships  and  Related  Transactions              41

ITEM  13.    Exhibits  and  Reports  on  Form  8-K                           43

Signatures                                                                   44




















<page>  2
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

                                     PART I

ITEM  1.  DESCRIPTION  OF  BUSINESS

   Universal  Ice Blast, Inc., (the "Company") is a Nevada corporation organized
in  1995  for the purpose of developing and marketing ice-blasting equipment for
which  it  holds  patents.  The  Company's  office  and warehouse facility is in
Kirkland,  Washington,  a  suburb of Seattle. The Company designs, assembles and
sells  its  equipment  as  well as providing ice blasting services and equipment
rental.  The  Company  creates  environmentally friendly solutions to industrial
cleaning  needs.

   The  Company  was  initially  engaged  in  technology and market research and
development. Since 1998, the Company has worked with clients to develop tailored
products,  applications  and  cleaning  systems  to  fulfill  customers'  needs.

ICE  BLAST  TECHNOLOGY

   Ice  blasting  is a simple process that uses compressed air and ice crystals.
Shot through a hose and directed with a nozzle, a fine, powerful mist is blasted
onto  a  surface,  acting  like  a  chisel  to  remove debris. Ice blasting is a
non-abrasive,  cleaning process that uses ordinary tap water, compressed air and
electricity  to  create  an  environmentally  friendly, cost effective method to
address a variety of cleaning needs. Ice blasting technology has advantages over
other  cleaning  processes  important  to  its  markets,  including:

    Superior  cleanliness;

    Reliable,  consistent  operation;

    Low  operating  costs;

    Minimal  waste;

    Non-abrasive;  and

    Does  not  generate  dust.

   An  ice  blast  machine is ready for work within seconds of pushing the start
button.  Ice  particles  are  produced  continuously at a rate of 200 pounds per
hour.  Using  a  two  hose  system,  ice particles are transported through a low
pressure  hose  to  the  blasting  nozzle  where  a  second higher pressure hose
delivers up to 200 psi ("pounds per square inch") pressure to accelerate the ice
particles  towards  the target surface. The solid ice particles displace surface
contaminants  through  the  energy  from  the  impact  and  through  the lateral
deformation  of  the  ice  particles.

   At the heart of the ice blast technology is the scrub and flush cleaning that
takes  place when the ice crystals impact onto a surface. Ice crystals deform to
scrub  on  impact,  and after impact melt into water to flush away debris. Thus,
ice  blasting  has  a  scrubbing component that water blasting lacks and it uses
significantly  less water than water blasting, which results in less waste to be
contained.  Ice  blasting  creates  no  dust  and  utilizes  no abrasives in the
process,  and  is  accordingly more gentle and cleaner than sand blasting. Known
competitive disadvantages of ice blasting over other methods are that it is less
abrasive  than  sand blasting, steel shot, walnut shells, and corn. Ice blasting
will  not remove deep rust or hard metal burrs. Because it is less abrasive, ice
blasting  is  slower  than  some  of  the  aforementioned  processes.
<page>  3
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   Using  the  ice  blasting cleaning process reduces waste as compared to other
cleaning  processes.  Typical  water blasting operations use from 1 to 6 gallons
per  minute  or  60  to 360 gallons per hour. Ice blasting uses not more than 20
gallons  per  hour.  Further,  upon  impact,  the ice particles explode, turning
approximately  half of its solid mass into vapor and the other half into liquid,
thus  resulting  in  even  less  wastewater  to  contain.

   The  Company holds three patents (#5,913,711, #6,001,000, and #6,270,394) two
of  which  were  issued in 1999 and one was issued in 2001.  These patents cover
the  method  and equipment for manufacturing, transport, and continuous delivery
of ice particles to a nozzle to do continuous ice blast cleaning work on various
surfaces.  The  Company  also  has seven patent applications pending which cover
various  improvements  to  the  methods  and  apparatus  related  to  ice  blast
technology.  Future  patent  applications  are  anticipated.

PRODUCTS  AND  SERVICES

   The  Company's  cleaning products are designed to operate continuously, three
shifts  a  day,  seven  days  a week. The Company produces equipment models of a
stationary  design  for  use  in  manufacturing  systems.  Base sales prices for
stationary  models  range  from  approximately  $69,000  to  $90,000. Prices for
integrated cleaning systems and stations could sell for up to $700,000 depending
on,  among other things, the number of required blast nozzles and sophistication
of  the  application.  The  Company  also  produces  equipment  models of a more
portable  design  for  use  on  job  sites.  Base  sales prices for stand-alone,
portable  models  approximate  $70,000.

   The  Company  builds  and  assembles all of its ice blasting equipment. While
some  components  have  been  purchased  from  primarily  one  source, MAJA Food
Technology, most other parts and accessories used in assembly are available from
multiple  sources. Management of the Company believes that sufficient quantities
of raw materials, parts and components utilized in making ice blasting equipment
will  continue  to  be  available. No vendor of the Company is considered as the
primary  vendor  and  all  components  used  in  the  equipment that the Company
assembles  can be either acquired from alternative sources or produced in-house.

   In  addition  to  selling  its  ice blasting equipment, the Company rents its
equipment  and  also provides cleaning services. The Company intends to increase
the rental income portion of the business. The Company has provided ice blasting
cleaning  services,  primarily  through its wholly-owned subsidiary, Midwest Ice
Blast, Inc. ("Midwest"). Typically, cleaning contracts are of short duration and
the  Company  uses subcontracted labor to perform the work. The primary focus of
the Company is not to provide ice blast cleaning services, but to develop market
niches  and  sales channel partners into and through which it can rent, lease or
sell  equipment.













<page>  4
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   The  Company has primarily marketed its products and services directly to its
customers,  and  has also developed indirect sales channels through sales agents
and  distributors and with other businesses involved in providing industrial and
environmental  cleaning  services.   The  Company  has  a  reciprocal  marketing
agreement  with  a company providing environmentally friendly chemical solutions
for  coating  removal  and  cleaning  to customers in architectural, industrial,
automotive  and  marine markets, and agreements with distributors in Holland and
Australia.  The  following table provides a listing of both domestic and foreign
organizations  with  whom  the  Company  has entered into distributorship and/or
exclusive  territory  agreements:

Organization      Nature of Agreement                        Date      Term
----------------  -----------------------------------------  --------  ---------
Heydaal B.V.      Distributorship covering The Netherlands,
dba  Ice  Blast   Belgium and Luxemburg                      8/01/2000   5 years
The Netherlands   Benelux

Napier            Reciprocal Marketing Agreement
Environmental     allowing for cross promotion of products   2/23/2001 unlimited
Technologies, Inc.
Delta, BC Canada

   The  distributorship  agreement  requires  minimum  purchases  of  ice  blast
equipment from the Company, which if not met will put the distributor in default
of the agreement and allows the Company to seek other parties to distribute it's
products  in  those  areas  for which the distributor initially had exclusivity.
However, no new distributor agreements were signed in 2001. The Napier agreement
is  subject  to  cancellation  by  either  party  upon  30  days written notice.

   The  Company  is  in  process  of developing a joint venture arrangement with
Goodwill  Industries  of Greater Detroit, a not-for-profit organization ("GWI"),
for  marketing  and  procuring production parts to be cleaned with the Company's
technology.  This  exclusive  agreement  allows  GWI  the  use  of the Company's
technology  in  cleaning production parts in the greater Detroit area. GWI, with
their workforce expertise, will provide the labor, facilities and management for
cleaning  projects.  The  joint venture is subject to good faith renewal by both
parties  and  the  terms of each contract so awarded are to be negotiated at the
time  such  contract  is  awarded.  The  agreement with Heydaal, B.V., generated
revenues  of  $70,000  in  2000. Neither the agreement with Napier Environmental
Technologies,  Inc.  nor  the joint venture arrangement with Goodwill Industries
has  yet  to  generate  revenue  for  the  Company.

   The  Company  has reached an agreement in principle to acquire certain assets
of  Heydaal  Holding, B.V., its Dutch distributor. The Company is in the process
of  forming  a  Dutch subsidiary in order to consummate this transaction.  Terms
are  still  being negotiated and no definitive agreements have been signed.  The
Company  expects  to  finalize  the  formation  of  its Dutch subsidiary and the
acquisition  of  the  Heydaal  assets  during the second quarter of fiscal 2002.

   The  Company  is  the  sole  worldwide  provider  of crystalline ice blasting
equipment.  Management  is  unaware  of  any other companies who are engaged in,
developing,  or  marketing  similar  technology.






<page>  5
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

MARKETS

   The  Company directs the current sales efforts for its cleaning equipment and
services  in  the  three  markets of Precision Cleaning, Industrial Cleaning and
Environmental  Cleaning.

   Precision  Cleaning  is  cleaning  to  a  defined  tolerance,  typically in a
repetitive  production  setting  where quality controls are closely measured and
monitored.  It  usually  involves  removing  surface  contaminants  from cast or
machined  mechanical parts, electronic components, or highly purified materials.
It  can  also  involve  light "deburring" (removal of "burrs" created by cutting
tools  on  machined  soft  metal  -  aluminum  - parts). Ice blast technology is
currently  being used to clean and deburr electric motor armatures, transmission
components and gears, engine and other cast parts for Japanese and American auto
manufacturers.

   In  July  2001  the Company received its first purchase order from Ford for a
precision  cleaning,  ice blast system to be installed in the production line of
Ford's  Sharonville,  Ohio transmission gear facility. The purchase order is for
the  design, manufacture, and installation of one ice blast cleaning station for
a  price  of  approximately  $341,000  with  commitments for an additional three
similar systems.  Ford's commitments will be automatically triggered upon Ford's
acceptance  of  the   first  system,  which  is  required   within  90  days  of
installation.  The  system  was  completed  and shipped to Ford in December 2001
where  it  became  fully operational in March 2002 after several factory-induced
delays.  The gear cleaning system is required to undergo three months of testing
as  part  of  the  Six  Sigma Implementation Ready process.  Notwithstanding the
3-month  testing,  the  management  of the Ford plant has also required that the
system  be  run  through  July  and  August  in  order  to  test its operational
capability  during  the hotter summer months.  The Company is confident that the
system  will  continue  to  operate  at  the  high  standard  it  has  thus  far
demonstrated.

   Industrial  Cleaning  includes,  among  other   applications,   manufacturing
equipment  cleaning,  maintenance  and  refurbishing, glass and fiberglass plant
cleaning,  and  plastic mold and dunnage cleaning. In addition to the advantages
of  reduced  waste, superior cleaning, dustless and chemical-free processes, ice
blasting  can  reduce  or  eliminate  the  use  of  volatile  organic compounds.

   Industrial  cleaning  applications  are  not always confined to manufacturing
plants.  The  Company  has  also  demonstrated  the  effectiveness  of ice blast
equipment  for  the  cleaning  of  locks  and  pump stations in the waterways of
Holland,  which  resulted  in  an equipment sale to a Netherlands company during
2000.

   In  March  2002,  the Company was recognized for its technology innovation by
the Construction Innovation Forum and was a finalist for the Forum's prestigious
NOVA  Award.

   Environmental  Cleaning   projects  utilizing   ice  blasting  have  included
lead-based  paint abatement and removal, and asbestos abatement and removal. The
Company  has  invested  three years in technology validation efforts to position
its  ice  blast technology as a new, cost-effective and environmentally superior
process. The Company has proven that the technology is effective for the removal
of  lead-based  paint  from  cement and brick buildings, steel structures inside
buildings  and  from  steel  overpass  bridges.


<page>  6
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   As  a result of work performed on a lead-based paint abatement pilot project,
the  Company's  ice  blast  technology  was  nominated  by  the  New  York State
Department  of  Transportation  (NY DOT) for the 2000 Civil Engineering Research
Foundation  Award  for  Innovation. The pilot project consisted of demonstrating
the  effectiveness  of  ice  blast  in removing lead-based paint on two New York
State  bridges.  The Company has been informed that the ice blast technology has
still  been specified for nine bridges which the Company understands will be bid
upon  in  2003. The Company's only involvement will consist of renting ice blast
equipment  to  the winning bidder at $2.00 per square foot and resulting revenue
will  be  dependent  upon  the  bridges  selected  and the square feet involved.

   As a result of the Residential Lead-Based Paint Hazard Reduction Act of 1992,
lead-based  paint abatement is considered to be a potentially significant market
opportunity for the Company. According to the feature article in the August 1998
issue  of  the Journal of Protective Coatings and Linings, during the years 1993
through  1996,  approximately $1 billion was spent on lead-based paint abatement
of  various  U.S.  Departments  of Transportation ("DOT") bridges, at an average
cost  of  $250,000  per  bridge,  and  future  DOT spending for lead-based paint
abatement  is  projected  to be over $40 billion. Additional opportunities exist
for  wall  and ceiling surface cleaning in HUD Housing for removal of lead-based
paint  contamination.  Other  lead-based  paint  markets  such as commercial and
industrial  buildings,  schools  and universities, municipal and state buildings
also  exist  and  represent  other  potential  sale  and  rental  opportunities.

   While the Environmental Cleaning market continues to be considered important,
the  Company  has  focused  most of its recent efforts in the Precision Cleaning
market.

   The  following  table reflects revenues derived from each of the three market
segments  described  above  including  the percentage of the total for the years
ending December 31, 2001, and 2000.

                                           2001                    2000
                                  ----------------------  ----------------------
Market Segment                    Revenues    Percentage  Revenues    Percentage
--------------------------------- ----------  ----------  ----------  ----------
Precision Cleaning                $ 105,396       36%     $ 152,036       35%
Industrial Cleaning                 107,488       37%       193,303       44%
Environmental Cleaning               77,931       27%        93,260       21%
--------------------------------- ----------  ----------  ----------  ----------
                                  $ 290,815      100%     $ 438,599      100%
                                  ==========  ==========  ==========  ==========

   The  revenues  and  percentage  mix  reflected above should not be considered
representative  of  future  revenues  and  may  vary dramatically dependent upon
future  contracts  for  ice  blasting  machines,  rentals  and  services.












<page>  7
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   The  following  table is a listing of customers who have accounted for 10% or
more  of  total  revenues  during  2001  and  2000:

Customer                             2001          2000
----------------------------     ------------  ------------
Ford Motor Company               $    54,700           -
Heydaal, B.V.                            -     $    70,000
Tokki K.K., Inc.                         -     $    62,000
Ice Blast Australia                      -     $    55,000
Ice Blast California, Inc.       $    44,500           -
Yadzani Enterprises, Inc.        $    33,900           -

COMPETITION

   Competition  for the Company's products and services comes from high-pressure
water  blast,  dry  ice  blast,  soda blast, sand, glass bead and other abrasive
blasting,  manual  labor  and  chemicals. The Company's ice blast technology has
advantages  over  other blasting techniques in that no special blasting material
must  be  purchased  and  cleaned  up.  Primary competitive advantages are waste
minimization  as  compared  to  other  techniques,  low  airborne  contaminants,
improved  environmental  and  worker  health  compliance,  continuous  operation
reliability  and simple field implementation. Known competitive disadvantages of
ice blasting over other methods are that it is less abrasive than sand blasting,
steel  shot,  walnut shells, and corn. Ice blasting will not remove deep rust or
hard  metal burrs. Because it is less abrasive, ice blasting is slower than some
of  the  aforementioned  processes.

   Many  or  most  of  the  Company's  competitors  are larger, more established
businesses,  which  have,  in many cases, long-standing relationships with their
customers,  substantial  name  recognition  and  greater  financial   resources.
Further,  as  with most new technology, ice blasting has an early adopter hurdle
to  overcome  as  there  is  an inherent resistance to change that provide older
methodologies  a  competitive  advantage.

GOVERNMENT  REGULATION

   While  marketing   opportunities  are   created  as  a   result  of  numerous
governmental  and  environmental regulations, the Company has determined that it
complies  with  all  such   regulations,  as  a  manufacturer,   including  OSHA
requirements.  Where the Company either sells or leases equipment to contractors
in  the  lead  based paint or asbestos abatement market, such sales or leases of
equipment  are  not  subject  to the many regulations that are applicable to the
contractors.

   Further,  the  Company  is not aware of any proposed governmental regulations
which  would  impact  or  limit  the  Company's  continued sale or lease of it's
equipment  within the hazardous abatement industry nor are there any known costs
and  effects  of  compliance  with  existing  environmental  laws.

RESEARCH  AND  DEVELOPMENT  EXPENDITURES

   The Company has expended approximately $300,000 and $145,000 for research and
development  activities  during  the  years  ended  December  31, 2001 and 2000,
respectively.  Costs  incurred  consist primarily of salaries and related costs,
and  parts,  materials  and  supplies  directly  involved  in  the  research and
development  of  new  technology  and  are  expensed  as  incurred. There are no
material  research  and  development  activities  that are borne directly by the
Company's  customers.
<page>  8
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

EMPLOYEES

   As  of  April  30,  2002,  the  Company had eleven employees, all of whom are
full-time.  None  of  the  employees  have  employment  agreements  and none are
represented  by  a  collective  bargaining  agreement.

ITEM  2.  DESCRIPTION  OF  PROPERTY

   The  Company  leases its facilities and does not own any real property. Since
January  2000,  the Company has leased its offices and warehouse facility, which
together  approximate 5,000 square feet, in Kirkland, Washington. The facilities
were  sub-leased  through  April  2001  and are now subject to a five-year lease
agreement  directly  with  the  property  owner providing for monthly rentals of
approximately  $4,400  and  for  the  Company  to  pay  operating  costs, taxes,
insurance  and  utilities  estimated  to  be approximately $1,100 per month. The
Company  leases  no  other  facilities. Company management believes these leased
facilities  are  adequate  for  its  reasonable  foreseeable  needs.

ITEM  3.  LEGAL  PROCEEDINGS

   The Company is not a party to any material litigation. Certain vendors of the
Company  have  threatened  to bring legal action for payment of overdue amounts.
One  suit  has  been  filed. The Company is working to resolve these issues.  In
addition,  a  former  sales  representative  is  attempting  to collect disputed
commissions.  All  reasonable  amounts  relating  to these past due and disputed
liabilities  have  been  accrued  in  the  Company's December 31, 2001 financial
statements.

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

   No  matters were submitted during the fourth quarter of 2001 to a vote of the
Company's  shareholders.

                                     PART II

ITEM  5.  MARKET  FOR  COMMON  EQUITY  AND  RELATED  STOCKHOLDER  MATTERS

   (a)  Market  information.  The Company's common shares (ticker symbol "UIBI")
were  reported  by  the  NASD  Over-the-Counter  Bulletin  Board ("OTC/BB") from
January 1998, until May 2000, when its shares were no longer reported due to the
Company's not being in compliance with the NASD's new eligibility rule.  The new
rule,  as amended, requires companies to maintain full-reporting status with the
Securities  and  Exchange  Commission.   From  May  2000  to  October 2001,  the
Company's  Common  Stock  was  reported  on  the  National   Quotation  Bureau's
electronic pink sheets.  Since October 2001 the Company's Common Stock  has once
again  been  listed  on  the  OTC/BB.


   The  following  table  presents  the  high  and  low sales information of the
Company's  Common  Stock  as reported on the electronic bulletin board until May
2000,  on  the electronic pink sheets from May 2000 to  October 2001  and on the
electronic  bulletin  board  thereafter.






<page>  9
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

                                    PRICE RANGE
                              ----------------------
     QUARTER ENDED             HIGH             LOW
-------------------------     ------           -----
  March  31,  2000             $0.86           $0.17
  June  30,  2000              $0.55           $0.15
  September  30,  2000         $0.30           $0.15
  December  31,  2000          $0.23           $0.08
  March  31,  2001             $0.23           $0.07
  June  30,  2001              $0.26           $0.18
  September  30,  2001         $0.51           $0.13
  December  31,  2001          $0.45           $0.19



   (b)  Holders.  At  December 31, 2001, there were approximately 230 holders of
record  of  the  Company's  Common  Stock.

   (c)  Dividends.  The  Company has never paid dividends on its Common Stock in
the  past  and  currently does not anticipate paying any dividends on its Common
Stock  in  the  foreseeable future, but rather, intends to reinvest earnings, if
any,  in  its  business.

   (d)  Recent  Sales  of  Unregistered  Securities

  1999  Transactions--

   Pursuant  to Regulation S, Rule 901 of the Securities Act, the Company issued
2,117,280  shares  of  its  common  stock for a total of $ 392,081 in cash to 21
investors,  all  of  whom  were  non-US  citizens  residing  outside  of the US.

   Under  Section  4(2) of the Securities Act, the Company issued 103,330 shares
of  its common stock for services rendered and having a fair market value in the
amount  of  $18,500  to 3 investors. These services consisted of assistance with
investor  relations, equipment sales commissions, and provision of manufacturing
services.

   Under  Section  4(2) of the Securities Act, the Company issued 171,765 shares
of  its common stock in retirement of indebtedness having a fair market value in
the  aggregate  amount  of  $25,000 to three investors. The retired indebtedness
originally  arose  in  the  ordinary  course  of  business.

  2000  Transactions--

   Pursuant  to Regulation S, Rule 901 of the Securities Act, the Company issued
2,357,750  shares  of  its  common  stock  for a total of $388,163 in cash to 30
investors,  all  of  whom  were  non-US  citizens  residing  outside  of the US.

   Under  Section  4(2) of the Securities Act, the Company issued 664,000 shares
of  its  common stock for a total of $99,600 in cash to 12 investors, all of who
were  accredited  investors  and/or  prior  shareholders  of  the  Company.







<page>  10
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   Under  Section  4(2) of the Securities Act, the Company issued 509,160 shares
of  its common stock for services rendered and having a fair market value in the
amount  of  $74,135  to 12 investors. These services consisted of assisting with
investor  relations, raising the Corporate profile, Advisory Board consultation,
employee severance packages, inducement for equipment leasing, and manufacturing
work  performed  for  European  clients.

   Under  Section  4(2) of the Securities Act, the Company issued 293,334 shares
of  its common stock in retirement of indebtedness having a fair market value in
the  aggregate  amount  of  $42,000  to  3  investors.  The retired indebtedness
originally  arose  in  the  ordinary  course  of  business.

2001  Transactions--

   Pursuant  to Regulation S, Rule 901 of the Securities Act, the Company issued
1,399,666  shares  of  its  common stock for a total of $219,000 in cash to four
investors,  all  of  whom  were  non-US  citizens  residing  outside  of the US.

   Under Section 4(2) of the Securities Act, the Company issued 2,771,835 shares
of  its common stock for a total of $436,950 in cash to 28 investors, all of who
were  accredited  investors  and/or  prior  shareholders  of  the  Company.

   Under Section 4(2) of the Securities Act, the Company issued 7,850,000 shares
of  its  common  stock  to  officers and employees in exchange for cash of $950,
reduction  of advances from officers of $6,900 and full recourse, collateralized
loans  of  $1,169,650.  The  loans  bear  interest  at  the rate of 6.5% and are
collateralized by a pledge of the shares of the Company's Common Stock issued to
the  officers  and  employees.

   Under  Section  4(2) of the Securities Act, the Company issued 246,260 shares
of  its common stock for services rendered and having a fair market value in the
amount  of  $44,280  to  3  investors.  These  services  consisted  of technical
consulting,  assistance  with  investor  relations  and  manufacturing  work.

ITEM  6.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

   CAUTIONARY  STATEMENT--Certain  forward-looking  statements  contained herein
regarding  the  Company's  business  and   prospects  are  based  upon  numerous
assumptions about future conditions, which may ultimately prove to be inaccurate
and  actual  events,  and results may materially differ from anticipated results
described  in  such statements. The Company's ability to achieve such results is
subject  to  certain  risks and uncertainties, such as the impact of competition
and  pricing,  changing  market  conditions,  general  economic  conditions, the
Company's  history  of  losses  and need for additional capital and other risks.
Forward-looking  statements  are   identified  by   words  such  as   "believe",
"anticipate",  "expect",  "intend", "plan", "will", "may", "confident" and other
similar  expressions.  Any forward-looking statements contained herein represent
the  Company's  judgment  as of the date hereof. The Company disclaims, however,
any intent or obligation to update such forward-looking statements. As a result,
the  reader  is  cautioned  not  to  place undue reliance on any forward-looking
statements  contained  herein.







<page>  11
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

OVERVIEW

   The  Company  reports  its  revenues as sales of machines and accessories, or
product  sales,  and  as  services and rental income. Services and rental income
includes primarily cleaning services and income from the renting of equipment to
customers  who  have not yet purchased Company equipment. Typically, the Company
performs services at customer locations and receives rental income for equipment
use and fees for time incurred. The Company has experienced growth in the rental
aspect of its business. As the cost of monthly rental is significantly less than
the  purchase  price  of  a  machine, rentals have a much lower customer pricing
hurdle  to  overcome  and  accordingly  are  closed  with  a  relatively  higher
frequency.  Further, follow-on rentals are similarly more common and provide the
basis  for  expectation  of future revenues from the same customers. The Company
has  customers  in industries including precision cleaning (automotive deburring
applications),  environmental  cleaning  (lead  paint  or asbestos removal), and
industrial  cleaning  (marine  cleaning), which are located in various locations
throughout  the  United States (including New York, Ohio, Hawaii and Washington)
and  the  World  (including  Canada,  Holland,  Japan  and  Australia).

   The  Company reports its costs and expenses as cost of revenues, research and
development, selling and marketing, and general and administrative. Research and
development  costs  consist  primarily  of  compensation  and  related  costs of
personnel  engaged  in product design and enhancements and patent related costs.
Selling  and  marketing  costs  relate  to product sales and promotion and costs
associated  with  responding  to  requests  for  proposals,   including  on-site
demonstrations.  General  and  administrative  costs  are comprised primarily of
compensation  and  related  expenses,  occupancy  and  professional   legal  and
accounting  fees.

   In  July  2001  the  Company  received its first purchase order from the Ford
Motor  Company for a precision cleaning, ice blast system to be installed in the
production  line  of  Ford's  Sharonville,  Ohio transmission gear facility. The
purchase order is for the design, manufacture, and installation of one ice blast
cleaning  station  for a price of approximately $341,000 with commitments for an
additional  three  similar  systems.  Ford's  commitments  will be automatically
triggered  upon  Ford's acceptance of the first system, which is required within
90  days  of  installation.  The  system  was  completed  and shipped to Ford in
December  2001  where  it  became  fully operational in March 2002 after several
factory-induced  delays.  The  gear cleaning system is required to undergo three
months  of  testing  as  part  of  the  Six  Sigma Implementation Ready process.

   The success of achieving approval from Ford has had and will have a short and
long term impact on the Company. In the short term an additional burden has been
placed  on  both  the  Company's  liquidity  and  on  its engineering staff. The
additional working capital required for the initial order has been approximately
$350,000,  which  includes  materials,  consulting  design engineers, and direct
labor. The Company does not expect to achieve its projected margins on the first
three  ice blast systems because of the initial design costs associated with the
project.  However,  Management  expects  that  future  systems  will provide the
Company  with  margins  that will secure the profitability of the Company in the
long  term.

   The  successful  implementation of the first installation is expected to give
rise  to  additional  orders from Ford. The company is confident that this first
machine  will stand up to the rigors of the production line at the Ford factory.
The Company has been given to understand that its blast technology will become a
new  standard  by  which  Ford  clean  gears  used  in  transmissions.

<page>  12
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   Because  of  this  project the Company has been requested to test and develop
other  cleaning  and  deburring  applications  within  Ford.

RESULTS OF OPERATIONS

YEAR  ENDED  DECEMBER  31,  2001  COMPARED  TO  YEAR  ENDED  DECEMBER 31, 2000

   Revenues  decreased  $148,000,  or  34%,  to  $291,000  during the year ended
December  31, 2001 as compared to $439,000 for the prior year. Sales of machines
and  accessories  decreased  78% to $59,000 in 2001 from $268,000 in 2000, while
revenues  from services and rental income increased 36% to $231,000 in 2001 from
$171,000  in  2000. The Company sold 1 machine in 2001 as compared to 4 in 2000.
The  sales  decline  relates  primarily to the concentration of resources on the
Ford Motor Company cleaning system.  Revenue from this project has been deferred
until  final  approval  from  the  customer  has been obtained.  As a result, no
revenue  has been included in 2001 apart from $55,000 in engineering fees, which
is  included  in  service and rental income. Revenue from machine sales includes
$13,000  from  the  amortization  of  deferred  gains  on   sale  and  leaseback
transactions.  Service  revenues  were  $108,000 during 2001 compared to $27,000
during  2000,  and  rental revenue was $123,000 during 2001 compared to $144,000
during  2000. The increase in service revenue relates principally to the $55,000
in  engineering  fees  from  the  Ford  contract  discussed  above.  The Company
anticipates  that  rental  revenue  will  continue to increase as more end-users
become  aware  of  the  technology  and  that cleaning services will continue to
decline  as  the  Company  either  sells  or  rents  its  ice blast equipment to
subcontractors.

   Gross  profit  decreased  less  than  1%  to  $134,000  during the year ended
December 31, 2001 as compared to $135,000 during the prior year. As a percent of
sales, gross profit increased to 46% during 2001 from 31% in 2000. Gross profits
from  sales  of  machines and accessories decreased to $35,000 or 59% of related
sales  during  2001  from $103,000 in 2000 or 38% of sales. Concentration on the
Ford  project  reduced sales of machines and accessories which had the effect of
reducing  lower  margin  sales.  Gross  profits  from services and rental income
increased  to $99,000 in 2001, or 42% of related sales, from $32,000 in 2000, or
19% of sales primarily as a result of the Ford engineering fees and a new rental
contract  entered  into  in  early  2001.

   General and administrative expenses increased 19% to $714,000 during the year
ended  December  31,  2001  as  compared to $598,000 during 2000. Employee wages
increased  $34,000, however this was offset by a reduction in officers' deferred
compensation expense of $18,000.  Recruiting costs declined $12,000 and expenses
associated  with  the  Company's advisory board decreased $27,000.  The costs of
SEC  filing  and  reporting  increased  $21,000  while  stock promotion expenses
increased  $22,000.  Compensation  expense  on  stock  options  granted  to
non-employees  increased  $85,000  in  2001.

   Research  and development expenses increased 107% to $300,000 during the year
ended  December  31,  2001 as compared to $145,000 during 2000, primarily due to
increased  engineering  consulting  expenses associated with the development and
design  of  Ford  Motor  Company  projects.

   Selling  and marketing expenses declined 30% to $52,000 during the year ended
December  31,  2001  as  compared  to $75,000 in the prior year due primarily to
decreases  in commissions paid, publicity costs, and general marketing expenses.



<page>  13
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   Operating  losses  were  $931,000  during the year ended December 31, 2001 as
compared  to  $682,000  during  the  prior  year.  With  gross  profit remaining
relatively  constant, the majority of the $249,000 increase in losses relates to
the increase of $155,000 in research and development costs, which were primarily
related to the Ford project, and the increase of $85,000 in compensation expense
on  stock  options  granted  to  non-employees.

   Other  expense  decreased  to  $32,000  of  net expense during the year ended
December  31,  2001  from  net  expense  of  $41,000  during  2000. Additions to
long-term  debt  increased  interest  expense by approximately $12,000, however,
this was more than offset by approximately $20,000 in interest income from loans
made  by  the Company to officers and employees to assist them in purchasing the
Company's  Common  Stock.

   The  Company continues to record a valuation allowance for the full amount of
its  deferred  income  tax  asset,  which  would  otherwise  be recorded for tax
benefits  relating  to  operating  losses, as realization of tax deferred assets
cannot  be  determined  to  be  more  likely  than  not.

YEAR  ENDED  DECEMBER  31,  2000  COMPARED  TO  YEAR  ENDED  DECEMBER 31, 1999

   Revenues  increased  $43,000,  or  11%,  to  $439,000  during  the year ended
December  31, 2000 as compared to $396,000 for the prior year. Sales of machines
and  accessories  increased 32% to $268,000 in 2000 from $202,000 in 1999, while
revenues  from services and rental income decreased 12% to $171,000 in 2000 from
$194,000  in 1999. The Company sold 4 machines in 2000 as compared to 1 in 1999.
Of  the  $66,000 increase in machine and accessory sales, $142,000 is the result
of  the  increase  in  the  number  of  machines sold including $13,000 from the
amortization  of  deferred  gains  on sale and leaseback transactions more fully
described  in  the  following paragraph, and offset by a reduction of $76,000 in
accessories.  The  reduction  in  accessory  sales  is largely the result of two
non-recurring  compressor  sales  in  1999 that totaled $66,000. The decrease in
services  and  rental  income  is the result of the completion of a 1998 service
contract  that ended in 1999. Service revenues were $27,000 during 2000 compared
to $178,000 during 1999, and rental revenue was $144,000 during 2000 compared to
$16,000  during  1999. The Company anticipates that rental revenue will continue
to  increase  as more end-users become aware of the technology and that cleaning
services  will  continue to decline as the Company either sells or rents its ice
blast  equipment  to  subcontractors.

   During  1999,  the  Company  entered into two sale and leaseback transactions
with  two  unrelated  entities, involving Ice Blast machines manufactured by the
Company,  whereby the Company received gross proceeds of $115,000. In accordance
with SFAS No. 28, paragraphs 2 and 3, the Company recorded deferred gains on the
transactions  of $64,000, representing the difference between the net book value
or  cost of the equipment manufactured by the Company and the proceeds received.
The  related  lease has been accounted for as a capital lease in accordance with
SFAS No. 13, paragraph 7(d). The two ice blast machines so reported are included
in  the  Company's  fixed assets, depreciated ratably over their useful life and
used  as  rental units and for demonstration purposes in pursuing new customers.
Deferred  gains  are  being recognized as revenues over the five years, which is
consistent  with  the  term of the lease. Deferred gain amortization on the sale
and  leaseback  transactions  was  $12,000 for the year ended December 31, 2000.





<page>  14
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   Gross  profit  increased  96%  to $135,000 during the year ended December 31,
2000  as compared to $69,000 during the prior year. As a percent of sales, gross
profit  increased  to 31% during 2000 from 17% in 1999. Gross profits from sales
of machines and accessories increased to $103,000 or 38% of related sales during
2000  from  $28,000 in 1999 or 14% of sales, as the result of 1999 margins being
unusually  low  due  to  sales  mix,  which  included  sales of older models and
accessories.  Gross profits from services and rental income decreased to $32,000
in  2000,  or  19%  of  related  sales,  from  $41,000  in 1999, or 21% of sales
primarily  as  a  result  of the completion of the service contract noted above.
Increases  in  gross  profits  were  also  partially  the  result  of  increased
efficiencies  in  the  manufacturing  process.

   General and administrative expenses increased 10% to $598,000 during the year
ended  December  31,  2000  as  compared to $545,000 during 1999. Of the $53,000
increase  in  general  and  administrative  expenses,  $36,000  is related to an
increase  in  payroll  related  costs,  of  which  $25,000  is  attributable  to
recruiting  expense and temporary help; professional fees and expenses increased
by  $37,000,  of  which  $27,000 is attributable to the Company's creation of an
outside Advisory Board, an increase of $35,000 in accounting fees resulting from
the  Company  having  engaged  the  accounting  firm  of Moss Adams to audit its
financial  statements for the years ended December 31, 1998, 1999, and 2000, and
offset  by  a reduction of $25,000 in general legal expenses resulting primarily
from  the write-off of a 1998 legal fee in connection with a debt financing that
was  never  consummated;  and  an  increase  in  insurance  expense  of $11,000.

   Offsetting  the  foregoing  increases in general and administrative expenses,
the  Company  experienced  a  reduction  of  $30,000  in  its  facilities costs,
including  telephone  and  utilities,  as  a result of a significant decrease in
required  rental  space  at its Midwest Ice Blast subsidiary, located in Toledo,
Ohio  and  other  miscellaneous  cost  savings  amounting  to  $1,000.

   Research  and  development  expenses increased 5% to $145,000 during the year
ended  December  31,  2000 as compared to $138,000 during 1999, primarily due to
increased  engineering  consulting  expenses associated with the development and
design  of  Ford  Motor  Company  projects.

   Selling  and marketing expenses declined 18% to $75,000 during the year ended
December  31,  2000  as  compared  to $91,000 in the prior year due primarily to
decreases  in  commissions  paid  and  trade  show  expenses.

   Operating  losses  were  $682,000  during the year ended December 31, 2000 as
compared  to  $705,000  during  the  prior year. The increase in gross profit of
$66,000  during  the year ended December 31, 2000 as compared to the prior year,
was  offset  by  increases  in  operating  expenses of $43,000 and resulted in a
decrease  in  operating  loss  of  $23,000  during  2000  as  compared  to 1999.

   Other  income  (expense)  decreased to $41,000 of net expense during the year
ended December 31, 2000 from net expense of $56,000 during 1999 due primarily to
a  decrease  in  interest  expense  resulting from decreases in interest bearing
obligations.

   The  Company continues to record a valuation allowance for the full amount of
its  deferred  income  tax  asset,  which  would  otherwise  be recorded for tax
benefits  relating  to  operating  losses, as realization of tax deferred assets
cannot  be  determined  to  be  more  likely  than  not.



<page>  15
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

FINANCIAL  CONDITION,  LIQUIDITY  AND  CAPITAL  RESOURCES

   As  of  December  31,  2001,  the  Company  had  cash and cash equivalents of
$54,000. During the year ended December 31, 2001, operating activities used cash
of  $676,000  as  compared  to  $496,000  during  2000.  Cash  used by operating
activities  resulted   primarily  from   the  Company's  net  loss   reduced  by
depreciation  and  amortization  and other non-cash charges.  Changes in working
capital  brought  about  by the Ford contract also had an effect on cash used by
operations.  Inventory and Accounts Receivable balances increased, however these
changes  were  essentially  offset by increases in Deferred Revenue and Accounts
Payable

   The  Company  used  cash of $112,000 for capital expenditures during the year
ended  December  31,  2001  as  compared  to $7,000 for 2000. The Company has no
significant  commitments  for  future  purchases  of  capital  assets.

   Financing activities provided cash of $777,000 during the year ended December
31,  2001  as compared to $566,000 during 2000. Cash has been provided primarily
from  sale  of Company Common Stock, which provided $656,000 and $488,000 during
2001  and 2000, respectively. Payments on capital lease obligations used cash of
$64,000  and  $49,000 during 2001 and 2000. Proceeds from notes payable provided
cash  of  $123,000  in  2001.  No  payments  on notes payable were made in 2001,
however  notes  payable  payments  used  cash  of $51,000 in 2000. Proceeds from
long-term  debt  were  $137,000  in  2001,  while long-term debt repayments were
$21,000  as  compared  to $99,000 and $2,000, respectively, in 2000. The Company
borrows  and  repays,  on a revolving basis, cash advances from its two Founders
and  Officers,  Mr.  Rory  Clarke  and Mr. Sam Visaisouk. Cash advances provided
$137,000  during  2001  and  $163,000  during  2000.  Repayment of such advances
totaled  $200,000  and  $82,000  in  2001  and  2000,  respectively.

   The  Company has incurred net losses since inception, including net losses of
$963,000  and  $723,000  during  2001  and  2000,  respectively, and anticipates
reporting  net  losses  in  the  future,  at least through 2002. The Company has
historically  funded  its  operations and business development primarily through
the  sale  of  unregistered  shares  of  its  Common  Stock.

   Consequently,  the  Company  is  currently  seeking  convertible  debt and/or
additional  equity  financing  as well as the placement of a credit facility, in
the  aggregate  amount  of  at  least  $250,000, to fund the Company's immediate
liquidity  needs. Management is currently negotiating with existing shareholders
as  well  as  other individuals and organizations in order to obtain the working
capital  necessary  to meet both current and future obligations and commitments.
To  further  supplement these activities, the Company has engaged two investment
banking  firms  to  assist  in securing funding, with an objective of raising at
least  $2  million.  Management  is  confident  that  these efforts will produce
financing  to  further the growth of the Company.  Nevertheless, there can be no
assurance  that  the  Company  will  be  able  to  raise  additional  capital on
satisfactory  terms or at all. In the event that the Company is unable to obtain
such  additional  capital  or  to obtain it on acceptable terms or in sufficient
amounts,  the  impact  thereof  would  have  a  material  adverse  effect on the
Company's  business,  operating  results  and financial condition as well as its
ability  to  service  debt  requirements.

   As  disclosed  in  an  explanatory  paragraph  in  the  Report of Independent
Accountants  on  the  Company's consolidated financial statements, the foregoing
liquidity  and  financial conditions raise substantial doubt about the Company's
ability  to  continue  as  a  going  concern.

<page>  16
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

ITEM  7.  FINANCIAL  STATEMENTS









                            UNIVERSAL ICE BLAST, INC.
                        CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001










                              WILLIAMS & WEBSTER PS
                          CERTIFIED PUBLIC ACCOUNTANTS
                        BANK OF AMERICA FINANCIAL CENTER
                          601 W. RIVERSIDE, SUITE 1940
                               SPOKANE, WA  99201
                                 (509) 838-5111



                            UNIVERSAL ICE BLAST, INC.
                                TABLE OF CONTENTS



INDEPENDENT  AUDITOR'S  REPORT                                        2

FINANCIAL  STATEMENTS

     Consolidated  Balance  Sheets                                    3

     Consolidated  Statements  of  Operations                         4

     Consolidated  Statement  of  Stockholders'  Equity               5

     Consolidated  Statements  of  Cash  Flows                        6

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS                        7








<PAGE>  17



Board  of  Directors
Universal  Ice  Blast,  Inc.
Kirkland,  Washington


                          INDEPENDENT AUDITOR'S REPORT
                          ----------------------------

We  have  audited  the  accompanying consolidated balance sheet of Universal Ice
Blast,  Inc. as of December 31, 2001, and the related consolidated statements of
operations, stockholders' deficit and cash flows for the year then ended.  These
financial  statements  are  the responsibility of the Company's management.  Our
responsibility  is  to express an opinion on these financial statements based on
our  audit.  The  consolidated financial statements of Universal Ice Blast, Inc.
as  of  December  31,  2000 were  audited by other  auditors whose  report dated
March  23, 2001, except with respect to  Notes 5, 8 and 9, as to which the  date
is June 11, 2001, expressed an unqualified opinion accompanied by an explanatory
going-concern  paragraph  on  those  statements.

We  conducted our audit 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 misstatement.  An audit includes examining, on a
test  basis,  evidence  supporting  the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made  by  management,  as well as evaluating the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  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 Universal Ice Blast, Inc. as of
December  31, 2001, and the results of its operations and its cash flows for the
year  then  ended in conformity with accounting principles generally accepted in
the  United  States  of  America.

As  discussed in Note 2, the Company's continued viability is dependent upon the
Company's  ability  to meet its future financing requirements and the success of
future  operations.  These  factors  raise substantial doubt about the Company's
ability  to  continue  as  a  going concern.  Management's plans regarding those
matters  are  described  in Note 2.  The financial statements do not include any
adjustments  that  might  result  from  the  outcome  of  this  uncertainty.

/s/ Williams & Webster, P.S.

Williams  &  Webster,  P.S.
Certified  Public  Accountants
Spokane,  Washington
May  6,  2002











<page>  18



                          INDEPENDENT AUDITOR'S REPORT

To  the  Stockholders
Universal  Ice  Blast,  Inc.

We  have  audited  the  accompanying consolidated balance sheet of Universal Ice
Blast, Inc. and Subsidiary as of December 31, 2000, and the related consolidated
statements of operations, stockholders' deficit and cash flows for the year then
ended.  These  financial  statements  are  the  responsibility  of the Company's
management.  Our  responsibility  is  to  express  an opinion on these financial
statements  based  on  our  audits.

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

In  our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Universal Ice Blast,
Inc. and Subsidiary as of December 31, 2000, and the results of their operations
and  their  cash  flows  for  the years then ended in conformity with accounting
principles  generally  accepted  in  the  United  States

The  accompanying  consolidated financial statements have been prepared assuming
that  Universal Ice Blast, Inc. and Subsidiary will continue as a going concern.
As discussed in Note 2 to the financial statements, the Company has sustained an
operating  loss  during  2000,  and has a working capital deficit of $235,466 at
December 31, 2000.  These conditions raise substantial doubt about the Company's
ability  to  continue  as a going concern.  The 2000 financial statements do not
include  any  adjustments  to  reflect  the  possible   future  effects  on  the
recoverability and classification of assets or the amounts and classification of
liabilities  that  may  result  from  the  outcome  of  this  uncertainty.

/s/  Moss Adams LLP

Seattle,  Washington
March 23, 2001, except for Notes 5, 8 and 9
as to which the date is June 11, 2001
















<page>  19
UNIVERSAL ICE BLAST, INC.
CONSOLIDATED BALANCE SHEETS
                                                  December  31,   December  31,
                                                      2001            2000
                                                 --------------  --------------
ASSETS
  CURRENT ASSETS
    Cash                                         $      54,455   $      66,413
    Accounts receivable - trade                        347,147          39,465
    Accounts receivable - related  parties                 -            28,492
    Inventory                                          322,090          10,943
                                                 --------------  --------------
      TOTAL  CURRENT  ASSETS                           723,692         145,313
                                                 --------------  --------------
EQUIPMENT,  net                                        230,166        211,941
                                                 --------------  --------------
OTHER  ASSETS                                           10,525           7,225
                                                 --------------  --------------
      TOTAL  ASSETS                              $     964,383   $     364,479
                                                 ==============  ==============
LIABILITIES & STOCKHOLDERS' DEFICIT
  CURRENT LIABILITIES
    Accounts  payable                            $     467,982   $      113,916
    Notes  payable                                     123,000              -
    Accrued  liabilities                                40,087           53,949
    Due  to related parties                                -             15,658
    Advances  from  officers                            62,087          124,601
    Deferred  revenue                                  341,327              -
    Current portion of capital lease obligations
       and long-term debt                              108,335           72,655
                                                 --------------  --------------
       TOTAL  CURRENT  LIABILITIES                   1,142,818         380,779
                                                 --------------  --------------
LONG-TERM LIABILITIES
    Capital lease obligations, net of current
      portion                                           57,109         101,755
    Long-term debt, net of current portion             141,964          80,518
    Deferred gains from sale/leasebacks                 28,895          41,627
    Deferred  officers'  compensation                  116,262         116,262
                                                 --------------  --------------
       TOTAL  LONG-TERM  LIABILITIES                   344,230         340,162
                                                 --------------  --------------
COMMITMENTS  AND  CONTINGENCIES                            -               -
STOCKHOLDERS'  DEFICIT
    Preferred stock, 5,000,000 shares
      authorized, $0.001 par value; none issued            -               -
    Common stock, 100,000,000 shares
      authorized, $0.001 par value;
      33,109,654 and 20,841,893 shares
      issued and outstanding, respectively             33,109           20,842
    Additional  paid-in  capital                    4,085,370        2,219,907
    Shareholder notes receivable                   (1,169,650)             -
    Deferred stock-based compensation                     -             (4,489)
    Stock  options                                     84,738              -
    Accumulated  deficit                           (3,556,232)      (2,592,722)
                                                 --------------  --------------
          TOTAL  STOCKHOLDERS'  DEFICIT               (522,665)       (356,462)
                                                 --------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT      $     964,383   $     364,479
                                                 ==============  ==============
The accompanying notes are an integral part of these consolidated financial
statements.
<page>  20
UNIVERSAL  ICE  BLAST,  INC.
CONSOLIDATED  STATEMENTS  OF  OPERATIONS

                                                   Year Ended      Year Ended
                                                  December  31,   December  31,
                                                      2001            2000
                                                 --------------  --------------
REVENUE
  Sale of machines and accessories               $      59,316   $     267,989
  Service  and  rental  income                         231,499         170,610
                                                 --------------  --------------
          TOTAL  REVENUE                               290,815         438,599
                                                 --------------  --------------

COST  OF  REVENUE
  Machines  and  accessories                            24,145         165,185
  Service  and  rental                                 132,486         138,549
                                                 --------------  --------------
                                                       156,631         303,734
                                                 --------------  --------------
GROSS  PROFIT                                          134,184         134,865
                                                 --------------  --------------

EXPENSES
  General  and  administrative                         713,860         597,658
  Research  and  development                           299,748         144,565
  Selling  and  marketing                               52,129          74,661
                                                 --------------  --------------
          TOTAL  EXPENSES                            1,065,737         816,884
                                                 --------------  --------------

LOSS  FROM  OPERATIONS                                (931,553)       (682,019)

OTHER  INCOME  (EXPENSE)
  Interest  income                                      20,116             -
  Interest  expense                                    (52,073)        (40,718)
                                                 --------------  --------------
          TOTAL  OTHER  INCOME  (EXPENSE)              (31,957)        (40,718)
                                                 --------------  --------------
LOSS  BEFORE  PROVISION  FOR  INCOME TAXES            (963,510)       (722,737)

PROVISION  FOR  INCOME  TAXES                              -               -
                                                 --------------  --------------
NET  LOSS                                        $    (963,510)  $    (722,737)
                                                 ==============  ==============


BASIC AND DILUTED NET LOSS PER COMMON SHARE      $       (0.04)  $       (0.04)
                                                 ==============  ==============

WEIGHTED AVERAGE NUMBER OF BASIC AND DILUTED
  COMMON STOCK SHARES OUTSTANDING                   24,064,191      19,358,916
                                                 ==============  ==============







The accompanying notes are an integral part of these consolidated financial
statements.
<page>  21
UNIVERSAL  ICE  BLAST,  INC.
CONSOLIDATED  STATEMENT  OF  STOCKHOLDERS'  DEFICIT

<table>
                        Common  Stock         Additional    Shareholder   Deferred
                  --------------------------  Paid-in       Notes         Stock-Based   Stock         Accumulated
                  Shares        Amount        Capital       Receivable    Compensation  Options       Deficit       Total
                  ------------  ------------  ------------  ------------  ------------  ------------  ------------  ------------

               <c>           <c>           <c>           <c>           <c>           <c>           <c>           <c>
BALANCE,
December 31, 1999   17,017,649  $    17,018   $ 1,610,609   $       -     $   (19,816)  $       -     $(1,869,985)  $  (262,174)

Common stock
 issued for cash     3,021,750        3,022       484,741           -             -             -             -         487,763

Shares issued to
 employees and
 consultants
 providing
 services to the
 Company               442,761          443        63,733           -             -             -             -          64,176

Shares issued
 as transfer of
 note payable to
 a related company     200,000          200        29,800           -             -             -             -          30,000

Shares issued
 as payment of
 interest and
 principal of
 notes payable          93,333           93        11,907           -             -             -             -          12,000

Shares issued
 for payment
 of supplies            66,400           66         9,894           -             -             -             -           9,960

Deferred
 stock-based
 compensation              -            -           9,223           -          (9,223)          -             -             -

Amortization of
 Deferred
 stock-based
 compensation              -            -             -             -          24,550           -             -          24,550
Net loss                   -            -             -             -             -             -        (722,737)     (722,737)
                  ------------  ------------  ------------  ------------  ------------  ------------  ------------  ------------
BALANCE,
December 31, 2000   20,841,893       20,842     2,219,907           -          (4,489)          -      (2,592,722)     (356,462)

Common stock
 issued for cash     4,171,501        4,171       651,779           -             -             -             -         655,950

Shares issued
 to consultants
 providing services
 to the Company        246,260          246        44,034           -             -             -             -          44,280

Shares issued
 to officers
 and employees
 in exchange for
 cash and notes
 receivable          7,850,000        7,850      1,169,650   (1,169,650)          -             -             -           7,850

Deferred
 stock-based
 compensation              -             -             -            -             -             -             -             -

Stock options
 issued as
 compensation              -             -             -            -             -          84,738           -          84,738

Amortization of
 Deferred
 stock-based
 compensation              -             -             -            -           4,489           -             -           4,489
Net  loss                  -             -             -            -             -             -        (963,510)     (963,510)
                  ------------  ------------  ------------  ------------  ------------  ------------  ------------  ------------
BALANCE,
December 31, 2001   33,109,654  $    33,109   $ 4,085,370   $(1,169,650)  $       -     $    84,738   $(3,556,232)  $  (522,665)
                  ============  ============  ============  ============  ============  ============  ============  ============
</table>

The accompanying notes are an integral part of these consolidated financial
statements.
<page>  22
UNIVERSAL  ICE  BLAST,  INC.
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS

                                                   Year Ended      Year Ended
                                                  December  31,   December  31,
                                                      2001            2000
                                                 --------------  --------------
CASH  FLOWS  FROM  OPERATING  ACTIVITIES:
  Net  loss                                      $    (963,510)  $    (722,737)
  Adjustments to reconcile net loss to net
    cash used by operating activities:
      Depreciation                                      93,965          84,904
      Stock options issued as compensation              84,738             -
      Common stock issued for goods and services        44,280          74,136
      Amortization of deferred stock-based
        compensation                                     4,489          24,550
      Amortization of deferred gain on
        sale/leaseback transactions                    (12,732)        (12,730)
  Changes in operating assets and liabilities:
     Accounts receivable - trade                      (307,682)        (25,284)
     Accounts receivable - related parties              28,492         (14,670)
     Inventory                                        (311,147)         29,135
     Prepaid expenses and other                         (3,300)          8,474
     Accounts  payable                                 354,066          37,815
     Accrued liabilities                               (13,862)         31,519
     Due to related parties                            (15,658)           (349)
     Deferred  revenue                                 341,327             -
     Deferred officers' compensation                       -            19,362
     Customer  deposits                                    -           (30,000)
                                                 --------------  --------------
Net  cash  used  by  operating  activities            (676,534)       (495,875)
                                                 --------------  --------------
CASH  FLOWS  FROM  INVESTING  ACTIVITIES:
  Purchase  of  equipment                             (112,190)         (6,658)
                                                 --------------  --------------
Net  cash  used  in  investing  activities            (112,190)         (6,658)
                                                 --------------  --------------
CASH  FLOWS  FROM  FINANCING  ACTIVITIES:
  Payments on capital lease obligations                (63,555)        (49,123)
  Proceeds  from borrowings on notes payable           123,000             -
  Proceeds  from  issuance  of common stock            655,950         487,763
  Advances  from  officers                             137,275         163,147
  Payments  on  advances  from  officers              (199,789)        (81,771)
  Proceeds  from  long-term  debt                      137,246          99,000
  Payments  on  long-term  debt                        (21,211)         (2,231)
  Payments  of  notes  payable                             -           (51,000)
  Common stock issued to officers and employees          7,850             -
                                                 --------------  --------------
Net  cash  provided  by  financing  activities         776,766         565,785
                                                 --------------  --------------
Increase  (decrease)  in  cash                         (11,958)         63,252

Cash,  beginning  of  period                            66,413           3,161
                                                 --------------  --------------
Cash,  end  of  period                           $      54,455   $      66,413
                                                 ==============  ==============




The accompanying notes are an integral part of these consolidated financial
statements.
<page>  23
UNIVERSAL  ICE  BLAST,  INC.
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS (Continued)

                                                   Year Ended      Year Ended
                                                  December  31,   December  31,
                                                      2001            2000
                                                 --------------  --------------

SUPPLEMENTAL  CASH  FLOW  DISCLOSURE:
  Interest  paid                                 $       51,479  $      40,718
                                                 ==============  ==============

  Income  taxes  paid                            $           -   $         -
                                                 ==============  ==============

NON-CASH  TRANSACTIONS:
  Full recourse notes issued to officers and
    employees on purchases of common stock       $   1,169,650   $         -
  Acquisition of equipment from related
    party in exchange for assumption of
    capital lease obligation and settlement
    of  indebtedness                             $      48,522   $         -
  Common stock issued in settlement of
    notes payable                                $         -     $      42,000
  Stock options issued as compensation           $      84,738   $         -



































The accompanying notes are an integral part of these consolidated financial
statements.
<page>  24
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  1  -  ORGANIZATION  AND  DESCRIPTION  OF  BUSINESS

Universal Ice  Blast, Inc. ("the Company"), a  Nevada  corporation, was  incorp-
orated on  December  28, 1995.  The Company's  office is  located  in  Kirkland,
Washington.

The Company has developed a line of machines that utilize ice (plain H\\2\\O) as
a  blast cleaning/stripping medium.  The Company's patented Ice Blast technology
has  a  wide  range  of potential applications in precision cleaning, industrial
cleaning and environmental cleaning.

The  Company rents ice-blasting equipment and performs ice-blasting services for
customers   throughout  the  United  States.  The  Company   markets  and  sells
ice-blasting equipment throughout Asia, Australia, Europe and North America.

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

This  summary  of significant accounting policies of the Company is presented to
assist  in  understanding  the  Company's  financial  statements.  The financial
statements  and  notes are representations of the Company's management, which is
responsible  for  their  integrity  and  objectivity.  These accounting policies
conform  to  accounting  principles  generally  accepted in the United States of
America  and  have been consistently applied in the preparation of the financial
statements.

Principles  of  Consolidation
-----------------------------
The  consolidated  financial  statements include the accounts of the Company and
its  wholly  owned   subsidiary,  Midwest   Ice  Blast,  Inc.   All  significant
intercompany  transactions  and  balances  have  been  eliminated.

Use  of  Estimates
------------------
The  preparation  of  the  financial  statements  in  conformity  with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect  the  amounts reported in the financial statements and
accompanying notes.  Actual results could differ from those estimates.

Revenue  Recognition
--------------------
Revenue  from  the sale of stand alone Ice Blast machines and accessories to end
users  and  distributors  are shipped FOB shipping point at which time the title
passes  and revenue is recognized. Where customers require installation services
and  operational  acceptance,  shipment  is   FOB  destination  and  revenue  is
recognized  upon acceptance by the customer. Revenue from services is recognized
as  the  services are provided. Revenue from the rental of Ice Blast machines is
recognized  over  the rental period based on the terms of the rental agreements.

Accounts  Receivable
--------------------
Management  provides  for  an  allowance  for  uncollectible  accounts as deemed
necessary.  At  December  31,  2001 and 2000, all accounts were considered fully
collectible  and  no  allowance  was  considered  necessary.





<page>  25
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Inventory
---------
The  Company  values  its  raw  materials,  work-in-process  and  finished goods
inventories at the lower of cost or market, first-in first-out basis.

Fair  Value  of  Financial  Instruments
---------------------------------------
The  Company's  financial instruments, including cash, cash equivalents, accrued
expenses,  accounts  and  notes  payable are carried at cost, which approximates
their  fair  value  because  of  the  short-term  maturity of these instruments.
Long-term  obligations are carried at cost, which approximates fair value due to
the  proximity  of  the  implicit  rates  of these financial instruments and the
prevailing  market  rates  for  similar instruments. Fair value of advances from
officers  cannot  be  reasonably  estimated.

Equipment
---------
Equipment  is  stated  at cost. The Company provides depreciation on the cost of
its  equipment  using straight-line methods over estimated useful lives of three
to  five  years. Expenditures for repairs and maintenance are charged to expense
as  incurred.

Research  and  Development  Costs
---------------------------------
Research  and  development costs are charged to expense as incurred. These costs
primarily consist of salaries, development materials, supplies and related costs
of  personnel  directly  involved  in  the   research  and  development  of  new
technology.

Cash  and  Cash  Equivalents
----------------------------
The  Company  considers all highly liquid investments purchased with an original
maturity  of  three  months  or  less  to  be  cash  equivalents.

Advertising
-----------
The  Company expenses advertising costs as incurred. Advertising expense charged
to  operations  was $3,533 and $14,932 for the years ended December 31, 2001 and
2000,  respectively.

Stock-Based  Compensation
-------------------------
The  Company applies Accounting Principles Board Opinion No. 25, "Accounting for
Stock  Options  Issued  to  Employees,"  and  related  interpretations including
Financial  Accounting  Standards  Board  Interpretation  No. 44, "Accounting for
Certain  Transactions  Involving  Stock Compensation."  The Company accounts for
stock-based  compensation to employees using the intrinsic value method, whereby
compensation  cost is recognized when the exercise price at the date of grant is
less  than  the  fair  market  value  of the Company's common stock. The Company
discloses  the  proforma  effect  of  compensation  cost based on the fair value
method  for determining compensation cost. The value of stock-based compensation
awarded to non-employees is determined using the fair value method. Compensation
cost  is  recognized  over  the  service  or  vesting  period.



<page>  26
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Risk  Concentrations
--------------------
Financial instruments that potentially subject the Company to a concentration of
credit  risk  consist  of  accounts  receivable  and cash in excess of federally
insured  limits.  The  Company maintains cash with a major financial institution
and  is  considered  subject  to  minimal  risk. The Company's sales and service
revenues  are  derived from customers throughout the world. The Company performs
ongoing  credit  evaluations  of  its  customers  and generally does not require
collateral.  Historically,  the  Company has not incurred any significant credit
related  losses.

In December 2001, the Company invoiced Ford Motor Company ("Ford") approximately
$396,000  under  the  terms  of  the  agreement further discussed in Note 3.  At
December  31,  the  Company  had  outstanding  accounts  receivable from Ford of
approximately  $341,000.  During  the  three  months  ended  March 31, 2002, the
Company  received  payments  from  Ford  totaling approximately $161,000.  As of
April  15, 2002, Ford had not yet provided acceptance of the equipment, however,
it  is  in  Ford's  Six  Sigma  implementation  approval  process.

Computation  of  Net  Loss  per  Share
--------------------------------------
Basic  earnings  per share is computed by dividing the net earnings available to
common  stockholders  for  the  period  by the weighted average number of common
shares  outstanding during the period. Diluted earnings per share is computed by
dividing  the  net  earnings  for  the  period by the weighted average number of
common  and  common  equivalent  shares  outstanding  during  the  period.

Common  equivalent shares consist of the incremental common shares issuable upon
the  exercise of stock options, and have been excluded from the diluted net loss
per  share  calculations,  as their effect is anti-dilutive. Shares omitted from
the  computation  of  net  loss  per  share  due  to  their anti-dilutive effect
approximated  1,021,000  and 2,898,000 for the years ended December 31, 2001 and
2000,  respectively.

A  summary  of  the  shares  used  to  compute net loss per share is as follows:

                                                Year  Ended  December  31,
                                              ------------------------------
                                                   2001            2000
                                              --------------  --------------
Weighted average common shares used to
  compute basic net loss per share               24,064,191      19,358,916

Effect of dilutive securities                           -               -
                                              --------------  --------------
Weighted average common shares used to
  compute diluted net loss per share             24,064,191      19,358,916
                                              ==============  ==============








<page>  27
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Segment  Information
--------------------
Statement  of  Financial  Accounting Standards (SFAS) No. 131, "Disclosure about
Segments  of  an  Enterprise  and  Related  Information," establishes annual and
interim  reporting  standards for an enterprise's operating segments and related
disclosures  about its products, services, geographic areas and major customers.
The  Company  has  determined  that  it  operates  in  one  segment.

The  Company attributes sales to customers in individual foreign countries based
on  the location where the product was shipped. Net sales by geographic area for
the  years  ended  December  31,  were  as  follows:

                                                   2001            2000
                                              --------------  --------------
Net  sales
     United  States                           $     283,891   $     251,557
     The  Netherlands                                   -            70,000
     Japan                                            1,402          62,224
     Australia                                        5,522          54,818
                                              --------------  --------------
                                              $     290,815   $     438,599
                                              ==============  ==============

Impairment  of  Long-lived  Assets
----------------------------------
The  Company  evaluates  its  long-lived  assets  for  financial  impairment and
continues  to  evaluate them as events or changes in circumstances indicate that
the  carrying  value  of such assets may not be fully recoverable.  The carrying
value  of  long-lived  assets  is  considered  impaired   when  the  anticipated
undiscounted cash flows from an asset are less than its carrying value.  In that
event,  a  loss is recognized for the amount by which the carrying value exceeds
the  fair  value  of  the  long-lived asset.  The Company has not recognized any
impairment  losses.

Financing  Costs
----------------
Direct costs associated with obtaining capital stock are recorded as a reduction
of proceeds.  Direct costs associated with obtaining debt financing are deferred
and  charged  to  interest expense using the effective interest rate method over
the debt term.  Direct costs of obtaining commitments for financing are deferred
and  charged  to  expense  over  the  commitment  term.

Accounting  Pronouncements
--------------------------
In  September  2000,  the FASB issued SFAS No. 140 "Accounting for Transfers and
Servicing  of  Financial  Assets  and  Extinguishment of Liabilities" ("SFAS No.
140").  This statement provides accounting and reporting standards for transfers
and  servicing  of  financial  assets and extinguishment of liabilities and also
provides  consistent  standards for distinguishing transfers of financial assets
that  are  sales  from  transfers  that are secured borrowings.  SFAS No. 140 is
effective for recognition and reclassification of collateral and for disclosures
relating  to  securitization transactions and collateral for fiscal years ending
after  December  15,  2000,  and  is  effective  for  transfers and servicing of
financial  assets  and  extinguishments  of  liabilities


<page>  28
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Accounting  Pronouncements  (continued)
---------------------------------------
occurring  after March 31, 2001.  The Company believes that the adoption of this
standard  will not have a material effect on the Company's results of operations
or  financial  position.

In  June  2001, the FASB issued SFAS No. 141, "Business Combinations" ("SFAS No.
141") and SFAS No. 142, "Goodwill and Other Intangible Assets" ("SFAS No. 142").
SFAS  No. 141 provides for the elimination of the pooling-of-interests method of
accounting for business combinations with an acquisition date of July 1, 2001 or
later.  SFAS No. 142 prohibits the amortization of goodwill and other intangible
assets  with  indefinite  lives  and  requires  periodic   reassessment  of  the
underlying  value  of such assets for impairment.  SFAS No. 142 is effective for
fiscal  years  beginning  after  December 15, 2001.  An early adoption provision
exists  for  companies  with  fiscal  years  beginning after March 15, 2001.  On
September  1,  2001,  the  Company  adopted  SFAS  No.  142.  Application of the
nonamortization  provision  of SFAS No. 142 will have no effect on the Company's
financial  statements  as  the  Company  does not currently have any assets with
indefinite  lives.

In  October 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations"  ("SFAS  No. 143").  SFAS No. 143 establishes guidelines related to
the  retirement  of tangible long-lived assets of the Company and the associated
retirement  costs.  This  statement  requires that the fair value of a liability
for  an  asset  retirement obligation be recognized in the period in which it is
incurred  if  a  reasonable  estimate of fair value can be made.  The associated
asset  retirement  costs  are  capitalized as part of the carrying amount of the
long-lived  assets.  This statement is effective for financial statements issued
for  the fiscal years beginning after June 15, 2002 and with earlier application
encouraged.  The  Company  adopted  SFAS  No.  143 and does not believe that the
adoption  will have a material impact on the financial statements of the Company
at  December  31,  2001.

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal  of  Long-Lived  Assets" ("SFAS No. 144").  SFAS 144 replaces SFAS 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be  Disposed  Of."  This  new standard establishes a single accounting model for
long-lived  assets to be disposed of by sale, including discontinued operations.
Statement  144 requires that these long-lived assets be measured at the lower of
carrying  amount or fair value less cost to sell, whether reported in continuing
operations  or  discontinued  operations.  This statement is effective beginning
for  fiscal  years after December 15, 2001, with earlier application encouraged.
The  Company adopted SFAS 144 and does not believe any adjustments are needed to
the  carrying  value  of  its  assets  at  December  31,  2001.

Going  Concern
--------------
The  Company's  consolidated  financial statements have been prepared on a going
concern  basis,  which  contemplates the realization of assets and settlement of
liabilities and commitments in the normal course of business for the foreseeable
future.  Since inception in 1995, the Company has accumulated losses aggregating
$3,556,232,  including a loss of $963,510 for the year ending December 31, 2001.




<page>  29
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Going  Concern  (continued)
---------------------------
The  Company  had  a  working  capital  deficit  of $419,126 and a stockholders'
deficit  of  $522,665 at December 31, 2001. Management's plans for the Company's
continued  existence  include  a  focus  towards  rental  and  sale of ice blast
machines  and  away  from  services.  The Company is actively pursuing marketing
arrangements  for  its  products  in the precision, environmental and industrial
cleaning  markets. These efforts include the arrangement with Ford Motor Company
which  is  more  fully  described  in  Note  3.  The Company's future success is
dependent  upon  its  ability to achieve profitable operations and generate cash
from operating activities, and upon obtaining additional financing.  There is no
assurance  that  the  Company  will  be  able  to  generate sufficient cash from
operations  or  through  the  sale  of  additional  shares  of  common  stock.

The  Company's  ability  to obtain additional cash could have a material adverse
effect  on  its  financial  position,  results  of operations and its ability to
continue  in existence. The consolidated financial statements do not include any
adjustments  that  might  result  from  the  outcome  of  this  uncertainty.

NOTE  3  -  CONTRACT  WITH  FORD  MOTOR  COMPANY

In  July 2001, the Company received its first purchase order from the Ford Motor
Company  for  a  precision  cleaning,  ice  blast  system to be installed in the
production  line  of  Ford's  Sharonville,  Ohio transmission gear facility. The
purchase order is for the design, manufacture, and installation of one Ice Blast
cleaning  station  for a price of approximately $341,000 with commitments for an
additional  three  similar  systems.  Ford's  commitments  will be automatically
triggered  upon  Ford's acceptance of the first system, which is required within
90  days  of  installation.  The  system  was  completed  and shipped to Ford in
December  2001  where  it  became  fully operational in March 2002 after several
factory-induced  delays.  The  gear cleaning system is required to undergo three
months  of  testing as part of Ford's Six Sigma implementation process before it
is  accepted.

The Company has recognized no revenue from the Ford system during the year ended
December  31,  2001  with  the exception of approximately $55,000 of engineering
design  fees,  that  are  in addition to the price of the system.  The remaining
$341,000  has  been  deferred and will be recognized as sales upon acceptance of
the  Ice  Blast  precision  cleaning  system  by  the  customer.

NOTE  4  -  INVENTORY

Inventory  consists  of  the  following  at  December  31:

                                                   2001            2000
                                              --------------  --------------
Raw  materials                                $      13,141   $      10,943
Work  in  progress                                  308,949             -
                                              --------------  --------------
                                              $     322,090   $      10,943
                                              ==============  ==============





<page>  30
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  4  -  INVENTORY  (CONTINUED)

Work in progress represents costs associated with the development of a precision
cleaning Ice Blast system for the Ford Motor Company as described in Note 3.  At
December  31,  2001,  the system was substantially complete and was subsequently
installed  at  Ford  in  2002.

NOTE  5  -  EQUIPMENT

Equipment  is  recorded  at  cost  and consists of the following at December 31:

                                                   2001            2000
                                              --------------  --------------
Ice  Blasting  equipment                      $     475,147   $     383,015
Computer  equipment                                  60,290          40,232
                                              --------------  --------------
                                                    535,437         423,247
Accumulated depreciation and amortization          (305,271)       (211,306)
                                              --------------  --------------
                                              $     230,166   $     211,941
                                              ==============  ==============

Included  in  equipment  is  $318,663 and $270,253 of assets under capital lease
with  accumulated depreciation of $199,211 and $140,278 at December 31, 2001 and
2000,  respectively.

During  1999,  the Company entered into two sale and leaseback transactions with
two  unrelated  entities,  involving  Ice  Blast  machines  manufactured  by the
Company,  whereby  the  Company received gross proceeds of $115,116. The Company
recorded  deferred  gains on the transactions of $63,647. The deferred gains are
being  recognized  as  revenues  over  the  related service period of the leased
assets.  Deferred  gain  amortization on the sale and leaseback transactions was
$12,732  and  $12,730  for  the  years  ended  December  31,  2001  and  2000,
respectively.

NOTE  6  -  NOTES  PAYABLE

At  December  31,  2001,  the  Company  had  three  notes  payable  to unrelated
individuals  totaling  $123,000.   The  notes  are  collateralized  by  accounts
receivable  from  Ford Motor Company and bear interest at an annual rate of 12%.
The notes are to be repaid upon the receipt of accounts receivable payments from
Ford.  The  notes are also secured by personal guarantees of the two founders of
Universal Ice Blast, Inc.  One of the notes, in the principal amount of $33,000,
included conversion rights allowing the note holder to convert any or all of the
note balance to common stock in the Company at a value of $0.25 per share.  This
note  was  repaid  subsequent to December 31, 2001 without the conversion rights
being  exercised.

At  December 31, 1999, the Company had a note payable of $13,000 to an unrelated
individual.  During  2000, the Company paid $1,000 of principal, and the balance
of  the  note  was  converted  to  93,333  shares of the Company's common stock.
Common  stock  issued  in consideration for the notes payable was valued at fair
value  at  the  date  of  conversion.





<page>  31
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  7  -  RELATED  PARTY  TRANSACTIONS

Advances  From  Officers
------------------------
The  Company has borrowed and repaid, on a revolving basis, certain amounts from
its  two  founders,  who  are  also  the  majority  stockholders in the Company.
Borrowings  bear  interest  at an annual rate of 6.5%, are unsecured, and due on
demand.  Interest  expense  on advances from officers was $5,054 and $3,512, for
the  years  ended  December  31,  2001  and  2000,  respectively.

Deferred  Officer  Compensation
-------------------------------
In  1999 and 2000, the Company's two founders agreed to defer a portion of their
salaries,  in  order  to  preserve  the Company's working capital. This deferred
compensation  does not bear interest and the founders have agreed not to require
repayment  until a future date to be determined.  No additional compensation was
deferred  during  the  year  ended  December  31,  2001.

Due  To/From  Related  Parties
------------------------------
One  of  the Company's officers is a stockholder in three related companies, Ice
Blast  West,  Inc.  (IBW),  Ice  Blast Service Company, Inc. (IBSC) and Cascadia
Environmental,  Inc.  In  the  past, the related companies have rented ice-blast
machines  from  the  Company,  and performed ice-blasting services for unrelated
entities. The Company has also borrowed and repaid certain amounts, and advanced
and collected certain amounts, on a revolving basis, to these related companies.
The  advances  have been non-interest bearing, unsecured, and due on demand.  In
July 2001, the Company acquired an MX90 ice blast machine from IBSC, in exchange
for  the  assumption  of  a capital lease in the amount of $28,599 and by deemed
settlements  of a $35,531 receivable from IBSC and a $15,608 payable to IBW. The
purchase  price was below what an unrelated third party would have been charged.
Previously  outstanding  balances  were  liquidated   and  no  new  transactions
occurred.  By  December  31,  2001,  these related entities had become inactive.
The  Company  previously  recognized  $29,610 of rental income from IBSC for the
year  ended  December  31,  2000.

During  2000, the Company issued 200,000 shares of common stock to two employees
in  exchange  for  the  two employees assuming a note payable to Ice Blast West,
Inc.  of  $30,000.  In addition, included in accrued liabilities at December 31,
2001  and 2000 is $15,000 and $30,000, respectively, in accrued bonuses to these
employees  for services provided. The Company began paying the bonuses at a rate
of  $15,000  per  year  in  2001.

During  2000,  the  Company  granted  66,400 shares of common stock to an entity
owned  by  a  brother  of  an  officer  in  the  Company  as payment for machine
components,  valued at $9,960, that are used in the manufacture of the ice blast
machines.

Ice  Blast  California
----------------------
Ice Blast California is a company owned by a brother of the Company's president.
Ice  Blast California acts in certain instances as a sales agent for the Company
and also performs ice blasting services using equipment owned by the Company for
which  the  Company  invoices  Ice  Blast  California.  During 2001, the Company
recorded  revenue  of  $44,000  on  sales  to  Ice  Blast  California.



<page>  32
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  8  -  LONG-TERM  DEBT

At  December  31,  2001  and  2000, the Company had long-term debt payable to an
unrelated  entity  totaling  $184,206  and  $96,769,  respectively.  The debt is
payable  monthly,  bears  interest  at  14.8%, is collateralized by Ice Blasting
equipment,  and matures November 2005 through October 2006. Future maturities of
long-term  debt  for  the  years  ending  December  31  are  as  follows:

                          2002           $    42,228
                          2003                37,754
                          2004                43,749
                          2005                45,982
                          2006                14,493
                                         ------------
                                         $   184,206
                                         ============

NOTE  9  -  COMMITMENTS  AND  CONTINGENCIES

Leases
------
The  Company  leases  its facilities and certain equipment under various capital
and  operating  leases  through May 2006. Future minimum lease payments required
under  non-cancelable  capital  and  operating  leases  are  as  follows:

                                            Capital          Operating
Years  Ending  December  31,                Leases           Leases
----------------------------               --------------  --------------
           2002                            $      83,564   $      56,734
           2003                                   53,757          56,060
           2004                                   10,184          57,028
           2005                                      -            59,312
           2006                                      -            20,028
                                           --------------  --------------
Total minimum lease payments                     147,505   $     249,162
                                                           ==============
Less amount representing interest at
     the rates implicit in the leases            (24,303)
                                           --------------
Present value of minimum lease payments
     (includes current portion of $66,207) $     123,202
                                           ==============

Rental expense on operating leases totaled $56,930 and $46,338 in 2001 and 2000,
respectively.













<page>  33
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  9  -  COMMITMENTS  AND  CONTINGENCIES  (CONTINUED)

Litigation
----------
Certain vendors of the Company have threatened to bring legal action for payment
of overdue amounts.  One suit has been filed.  The Company is working to resolve
these  issues.  In  addition,  a  former  sales  representative is attempting to
collect  disputed  commissions.  In management's opinion, all reasonable amounts
relating  to  these  past  due and disputed liabilities have been accrued in the
accompanying  financial  statements.

NOTE  10  -  COMMON  STOCK

During  2001  and  2000,  the  Company  issued 4,171,501 and 3,021,750 shares of
common  stock,  respectively, through private placements to accredited investors
at  a  weighted  average  price  of  $0.16  per  share.

During  2001  and  2000, the Company issued 246,260 and 509,161 shares of common
stock,  respectively,  to  certain  employees,  consultants, and a related party
vendor  for  goods  and  services  received  (Note 7).  The Company computed the
number  of  common shares issued in these transaction based on the fair value of
the  goods  or  services  received and the estimated fair value of the Company's
common  stock  on  the dates of issuance, which averaged $0.18 per share in 2001
and $0.15 per share in 2000. The Company has recognized expense of approximately
$44,280  and  $74,100 in 2001 and 2000, respectively, for the goods and services
received.

During  2000, the Company issued 293,333 shares of common stock in consideration
for  assignment  of notes payable (Notes 6 and 7). The average fair value of the
shares  issued  was  $0.14  per  share.

From  January 1, 2002 to March 2002, the Company issued 780,000 shares of common
stock  through  private  placements  to accredited investors at $0.15 per share,
generating  proceeds  of  $117,000.  See  Note  13.

NOTE  11  -  STOCK  OPTION  PLAN

The Company has a stock option plan under which employees and consultants may be
awarded  incentive  or nonstatutory stock options. The plan authorizes the grant
of options for the purchase of up to 6 million shares of common stock. Under the
plan, the option exercise price for incentive stock options may not be less than
the  fair  market  value  of  the Company's common stock at the date of grant as
determined  by  the  board  of directors, but for nonstatutory stock options the
exercise  price  may  be less than the fair market value of the Company's common
stock.  Options  expire no later than ten years from the grant date, and vesting
is  established  at  the time of grant, with the vesting provisions specified in
individual  option  agreements.

During  2001,  the  Company granted stock options to an employee which, based on
the  intrinsic  value  method,  did  not include a compensation element.  During
2001,  the  Company granted options with a fair value of $84,738 estimated using
the  Black-Scholes  option-pricing  model  to  shareholders  and  a  lender.






<page>  34
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  11  -  STOCK  OPTION  PLAN  (CONTINUED)

During  2000,  the Company granted to an employee stock options, which, based on
the  intrinsic  value  method, included a compensation element of $9,223. During
2000,  the  Company granted options to a consultant with a fair value of $8,218,
estimated using the Black-Scholes option-pricing model. The compensation element
of  the  options  granted  during  2000  has been recorded as additional paid-in
capital  and  deferred  compensation  and is being amortized to expense over the
vesting  periods  of  the  related  options.

If  the  compensation  cost  for  stock  options  granted  to employees had been
determined  using  the fair value method, the pro forma net loss per share would
have  been  as  follows:

                                                Years  Ended  December  31,
                                              ------------------------------
                                                   2001            2000
                                              --------------  --------------
Net loss:
     As  reported                             $    (963,510)  $    (722,737)
     Pro  forma                               $    (986,810)  $    (732,289)
Net  loss  per  common  share:
     As  reported                             $       (0.04)  $       (0.04)
     Pro  forma                               $       (0.04)  $       (0.04)

The  fair  value  of  the options  granted to non-employees was estimated  to be
$0.13 in 2001, and $0.29  in  2000  using the Black-Scholes option-pricing model
with the following assumptions on the date of grant: 0% dividend yield, 103% and
126% volatility, respectively, 0% forfeitures per year, risk-free interest rates
ranging from 4.5%  to  7%,  and  expected  lives  of  five  to  ten  years.

Stock  option  activity  is  as  follows:

                               Common  Shares        Weighted
                         --------------------------  Average
                         Available     Options       Exercise      Options
                         for Grant     Outstanding   Price         Exercisable
                         ------------  ------------  ------------  ------------
Balance, Dec. 31, 1999     3,148,125     2,851,875   $     0.079     2,748,750
                                                                   ============
     Granted                (125,000)      125,000   $     0.150
     Exercised                   -             -     $       -
     Forfeited                79,166       (79,166)  $    0.250
                         ------------  ------------
Balance, Dec. 31, 2000     3,102,291     2,897,709   $    0.086      2,872,709
                                                                   ============
     Granted              (1,698,466)    1,698,466   $    0.200
     Exercised               950,000      (950,000)  $    0.150
     Forfeited             2,625,000    (2,625,000)  $    0.075
                         ------------  ------------
Balance, Dec. 31, 2001     4,978,825     1,021,175   $    0.244      1,021,175
                         ============  ============  ============  ============






<page>  35
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  11  -  STOCK  OPTION  PLAN  (CONTINUED)

The  following  summarizes  options  outstanding  at  December  31,  2001:

                                     Weighted
                                     Average
                                     Remaining
     Exercise        Number          Contractual     Number
     Price           Outstanding     Life (Years)    Exercisable
     --------------  --------------  --------------  --------------

        $   0.15          253,542         3.20          253,542
        $   0.17           50,000         2.58           50,000
        $   0.25          220,000         1.30          220,000
        $   0.27          173,333         1.62          173,333
        $   0.30          265,133         2.30          265,133
        $   0.35           59,167         1.60           59,167
                     --------------                  --------------
                        1,021,175                     1,021,175
                     ==============                  ==============

Options  forfeited  in  2001  include 2,000,000 options previously issued to the
Company's  two  founders,  which  were forfeited in exchange for the purchase of
6,900,000  shares  under  the terms of the loans described below.  An additional
625,000  previously  outstanding  options  were  surrendered  by   officers  and
employees during 2001 in exchange for new options subsequently exercised as part
of  these  same  purchase  and  loan  transactions.

The  board  of directors has approved and the Company has made loans to officers
and  employees  to  assist  them in purchasing the Company's common stock. These
loans  bear  interest  at  the  rate  of  6.5%,  are   full  recourse,  and  are
collateralized  by  a  pledge  of  the  shares of the Company's common stock. In
connection  with these notes, the Company has retained as collateral, a security
interest  in  7,850,000  shares  of  common stock issued. The principal on these
loans  is  repayable  five  years  from the date of the loans' origination, with
interest  only payments required annually on or before December 31 of each year.

The  aforementioned  shareholder  notes  receivable,  which  total $1,169,650 at
December  31, 2001, are reflected on the accompanying consolidated balance sheet
as  a  reduction  in  stockholders'  equity.


















<page>  36
                            UNIVERSAL ICE BLAST, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

NOTE  12  -  INCOME  TAXES

At  December  31,  2001,  the  Company  had net operating loss carryforwards for
federal  income  tax  purposes  totaling  approximately  $3,060,000,  which  are
available  to  offset  future  federal  taxable  income.  The net operating loss
carryforwards  expire  in  years  ending  2013  through  2022.

Deferred  taxes  are  comprised  of  the  following  at  December  31:

                                                   2001            2000
                                              --------------  --------------
Deferred  tax  assets
     Net operating loss carryforwards         $   1,040,000   $     730,400
     Other                                          127,000         109,800
                                              --------------  --------------
Gross  deferred  tax  assets                      1,167,400         840,200

Deferred  tax  liability
     Depreciation                                   (54,800)        (52,100)
Valuation  allowance                             (1,112,600)       (788,100)
                                              --------------  --------------
                                              $         -     $         -
                                              ==============  ==============

Deferred  tax  assets  have  been  reduced  by  a  valuation  allowance based on
management's  determination  that  the recognition criteria for realization have
not  been  met.

A  reconciliation  of  the  income  tax benefit to the amount expected using the
federal  statutory  rate  follows:

                                                   2001            2000
                                              --------------  --------------
Expected amount using federal statutory rate  $     327,600   $     245,700
Non-deductible items                                 (3,100)         (2,900)
Increase in valuation allowance                    (324,500)       (242,800)
                                              --------------  --------------
                                              $         -     $         -
                                              ==============  ==============

NOTE  13  -  SUBSEQUENT  EVENTS

Shares  Issued
--------------
From  January 1, 2002 to March 2002, the Company issued 780,000 shares of common
stock  through  private  placements  to accredited investors at $0.15 per share,
generating  proceeds  of  $117,000.

Expansion  Activities
---------------------
Subsequent  to  December 31, 2001, the Company reached an agreement in principle
to  acquire  certain  assets  of  its  Dutch  distributor. The Company is in the
process  of  forming  a Dutch subsidiary in order to consummate the transaction.
Terms  are still being negotiated and no definitive agreements have been signed.
The  Company  expects  to finalize the formation of its Dutch subsidiary and the
acquisition  of  these  assets  during  the  second  quarter  of  fiscal  2002.


<page>  37
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

ITEM  8.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS

On April 2, 2002, Moss Adams LLP ("Moss Adams") informed the Company that it was
declining  to  stand for re-appointment as the Company's independent accountant.
Moss  Adams  has  served  as  the  Company's  independent accountant since 1999.

In  connection with the audit for the years ended December 31, 2000 and 1999 and
through  April  2, 2002, the Company had no disagreements with Moss Adams on any
matter  of accounting principles or practices, financial statement disclosure or
auditing  scope or procedure, which, if not resolved to the satisfaction of Moss
Adams,  would  have  caused  it  to  make reference to the subject matter of the
disagreement  in  connection  with  its  reports.

Moss  Adams'  report  on the Company's consolidated financial statements for the
years  ended  December  31, 2000 and 1999 contained a separate paragraph stating
that  "[T]  he  Company has sustained operating losses during 2000 and 1999, and
has  a working capital deficit of $235,466 and $253,162 at December 31, 2000 and
1999,  respectively.   These  conditions  raise  substantial   doubt  about  the
Company's  ability  to continue as a going concern.  The 2000 and 1999 financial
statements do not include any adjustments to reflect the possible future effects
on  the  recoverability  and  classification  of  assets  or   the  amounts  and
classifications  of  liabilities  that  may  result  from  the  outcome  of this
uncertainty."

Except  as  specified  above,  Moss Adams' reports on the Company's consolidated
financial  statements  for  the  years  ended December 31, 2000 and 1999 did not
contain any adverse opinion or disclaimer of opinion, nor were they qualified or
modified  as  to  uncertainty,  audit  scope,  or  accounting  principles.

Moss  Adams was provided with a copy of this disclosure and requested to furnish
a  letter  addressed  to the Securities and Exchange Commission  ("SEC") stating
whether  it  agrees  with the above statements.  A copy of Moss Adams' letter to
the  SEC  dated  April  8, 2002 is filed as Exhibit 16 to the Company's April 2,
2002  Form  8-K.

NEW  INDEPENDENT  ACCOUNTANT

On  April  8, 2002 the Company engaged Williams & Webster, P.S. as the Company's
independent  accountant to audit the Company's financial statements for the year
ended  December  31,  2001.

During the years ended December 31, 2000 and 1999 and through April 8, 2002, the
Company  has  not  consulted  with  Williams  &  Webster, P.S. regarding (i) the
application  of  accounting  principles  to  a  specified   transaction,  either
completed  or  proposed,  that  was an important factor considered in reaching a
decision  on  an accounting, auditing, or financial reporting issue, or the type
of  audit  opinion that might be rendered on the Company's financial statements,
or (ii) any matter that was the subject of either a disagreement or a reportable
event.









<page>  38
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

                                    PART III

ITEM  9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS COMPLIANCE
WITH  SECTION  16  (A)  OF  THE  EXCHANGE  ACT.

   The  names,  ages  and  positions  of  the  Company's directors and executive
officers  are  as  follows:

Name                   Age  Position
---------------------  ---  ----------------------------------------------------
Rory  Clarke            55  Chairman of the Board of Directors and Chief
                            Executive Officer
Sam Visaisouk, PhD      55  Director and President and Chief Operating Officer
David A. Saporta, CPA   49  Chief  Financial  Officer

   Rory  Clarke  has  served  as  Chairman  of  the Board of Directors and Chief
Executive  Officer  since  its  inception  in  December  1995.  Mr. Clarke holds
a business degree from the University of Cape Town and is a Chartered Accountant
from  South  Africa.  He  has  30  years of international business experience in
manufacturing and financial services industries. During that period and prior to
co-founding Universal Ice Blast, Inc., Mr. Clarke served in senior financial and
operational positions with First City Trust, F.H. Deacon Hodgson, Inc., Royal Le
Page  Commercial  Company  and  others.  His general management experience spans
strategic  planning,  treasury  functions, corporate acquisitions, dispositions,
branch  expansion  and  financing.

   Sam  Visaisouk PhD, has served as the Company's President and Chief Operating
Officer  since  its  inception  in  December 1995. Mr. Visaisouk holds a B.S. in
Chemical  Physics  from  the  University  of  Hawaii  and  a  PhD.  in Molecular
Spectroscopy  from the University of Victoria, BC. He has 25 years of experience
as  a scientist and inventor, during which time and before co-founding Universal
Ice Blast, Inc., he served as President and Senior Scientist for ReTech, Ltd., a
technology and commercialization organization. Mr. Visaisouk also was an Adjunct
Professor  in  the  Chemistry  Department  at  the  University  of Victoria, and
invented  biocidal  polymers  for Monsanto, developed a process for preferential
enhancement  of  essential  fatty  acids, and created the first working salinity
battery.  His  business  experience  covers  sales and marketing, augmenting his
expertise  in  providing  both conceptual and applied technology development and
management,  process  optimization,  and understandable technical communication.

   David  Saporta, CPA has served as the Company's Chief Financial Officer since
January 2002.  Prior to joining Universal Ice Blast, Mr. Saporta was Director of
Transaction  Services  at  PricewaterhouseCoopers  in Seattle from 1997 to 2001.
From  1996  to  1997  he was the Chief Financial Officer of SECOR International,
Inc.  an  environmental  engineering  and  consulting  firm.













<page>  39
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

SECTION  16(A)  BENEFICIAL  OWNERSHIP  COMPLIANCE

   Section  16(a)  of  the Securities Exchange Act of 1934, as amended, requires
the Company's directors, executive officers, and holders of more than 10% of the
Company  Common  Stock  (collectively,  "Reporting  Persons")  to  file with the
Securities  and Exchange Commission (the "SEC") initial reports of ownership and
reports  of  changes  in ownership of Common Stock of the Company.  Such persons
are required by regulations of the SEC to furnish the Company with copies of all
such  filings.  Based on its review of the copies of such filings received by it
with  respect  to   the  fiscal  year  ended  December  31,  2001  and   written
representations  from  certain  Reporting  Persons,  the  Company believes that,
during  the  year  ended  December 31, 2001 the following filing requirements of
Section  16  (a)  were not met: one Initial Statement of Beneficial Ownership of
Securities  on  Form  3 and two Statements of Changes in Beneficial Ownership of
Securities on Form 4 for three transactions were filed late for Rory Clarke; one
Initial  Statement  of  Beneficial  Ownership  of  Securities  on Form 3 and two
Statements  of Changes in Beneficial Ownership of Securities on Form 4 for three
transactions  were  filed  late  for  Sam  Visaisouk.  In  addition, the Company
believes  that  one  Initial  Statement of Beneficial Ownership of Securities on
Form  3  has  not  been  filed  by  Ernie  Dantini.

ITEM  10.  EXECUTIVE  COMPENSATION

   The  following  table  sets forth the annual compensation paid and accrued by
the  Company  during  its  last three fiscal years to its Executive Officers. No
Company  officers  or  employees  total  annual  compensation  has ever exceeded
$100,000  during  any  fiscal  year.

                                                 Securities
                                      Amount     Underlying
Name and Position     Year  Salary    Deferred   Options
--------------------  ----  --------  ---------  -----------
Rory  Clarke,  CEO    2001  $ 45,000  $     -        none
                      2000  $ 45,000  $  45,000      none
                      1999  $ 45,000  $   9,000      none

Sam Visaisouk,
President/COO         2001  $ 45,000  $     -        none
                      2000  $ 45,000  $  45,000      none
                      1999  $ 45,000  $   9,000      none

   During  the fiscal year ended December 31, 2001, the Company granted no stock
options  to  its  executive  officers  or  directors.

   During  2001  2,000,000  options  previously  issued  to  the  Company's  two
founders,  were forfeited in exchange for the purchase of 6,900,000 shares under
the  terms  of  the  loans  further  described  below.   An  additional  625,000
previously outstanding options were surrendered by officers and employees during
2001  in  exchange  for new options subsequently exercised as part of these same
purchase  and  loan  transactions.








<page>  40
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   The  Board  of  Directors  has  approved  and  the  Company has made loans to
officers  and employees to assist them in purchasing the Company's Common Stock.
These  loans  bear  interest  at  the  rate  of 6.5%, are full recourse, and are
collateralized  by  a  pledge  of  the  shares of the Company's Common Stock. In
connection  with these notes, the Company has retained as collateral, a security
interest  in  7,850,000  of Common Stock issued. The principal is repayable five
years  from the date of the loans, with interest only payments required annually
on  or  before  December  31

   There  were  no  unexercised  options  held  by the Company's named executive
officers  as  of  December  31,  2001.

ITEM  11.  SECURITY  OWNERSHIP  OF  CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED  STOCKHOLDER  MATTERS.

   At  April  30,  2002 the Company had 34,166,653 shares outstanding. The table
below  contains information concerning each person who is (i) a director, (ii) a
named  executive  officer,  and  (iii) known by the Company to be the beneficial
owner  of  more  than  five percent (5%) of the Company's Common Stock (its only
class  of  outstanding  equity  securities).

                                      AMOUNT  AND  NATURE
NAME AND ADDRESS OF BENEFICIAL OWNER  OF BENEFICIAL OWNERSHIP  PERCENT OF CLASS
------------------------------------  -----------------------  ----------------
Rory  Clarke(1)                              6,583,000                19.3%
533-6th  Street South
Kirkland, Washington 98033

Sam Visaisouk, PhD.(1)                       6,586,157                19.3%
533-6th Street South
Kirkland, Washington 98033

All Directors and Officers
As a Group (two individuals)                13,169,157                38.6%

(1)     Messrs.  Clarke  and Visaisouk serve as Directors on the Company's Board
of Directors and as the Company's Chairman/CEO and President/COO, respectively.

ITEM  12.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

   Advances  from  officers--The Company has borrowed and repaid, on a revolving
basis,  loans  from  Messrs.  Clarke  and  Visaisouk,  the  Company's  founders.
Borrowings  bear  interest  at  an annual rate of 6.5%, are unsecured and due on
demand. During the year ended December 31, 2001, the Company repaid $62,000, net
of borrowings, and during 2000, the Company borrowed $81,000, net of repayments.
At  December  31,  2001,  the  Company  owed  $62,000 in advances from officers.

   Deferred  officer compensation-- In 1999 and 2000, the Company's two founders
agreed  to defer a portion of their salaries, in order to preserve the Company's
working  capital.  Approximately  $96,000 was deferred in 1999 and approximately
$17,000  was deferred in 2000. This deferred compensation does not bear interest
and  the founders have agreed not to require repayment until a future date to be
determined.  No  additional  compensation  was  deferred  during  the year ended
December  31,  2001.




<page>  41
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

   Transactions  with  related  parties---  Mr. Clarke is a stockholder in three
related  companies,  Ice Blast West, Inc. (IBW), Ice Blast Service Company, Inc.
(IBSC) and Cascadia Environmental, Inc.  In the past, the related companies have
rented  ice-blast machines from the Company, and performed ice-blasting services
for  unrelated  entities.  The  Company  has  also  borrowed  and repaid certain
amounts,  and  advanced  and collected certain amounts, on a revolving basis, to
these  related  companies.   The  advances  have   been  non-interest   bearing,
unsecured,  and  due  on demand.  During the year ended December 31, 2001, these
entities  became  inactive  and,  in July 2001, the Company acquired an MX90 ice
blast  machine  from  IBSC, in exchange for the assumption of a capital lease in
the  amount  of  $28,599  and by deemed settlements of a $35,531 receivable from
IBSC  and  a  $15,608  payable  to  IBW.  The  purchase  price was below what an
unrelated  third party would have been charged.  Previously outstanding balances
were  liquidated  and  no  new  transactions  occurred.  The  Company recognized
$29,610  of  rental  income  from  IBSC  for  the  year ended December 31, 2000.

   During  2000,  the  Company  issued  200,000  shares  of  Common Stock to two
employees in exchange for the two employees assuming a note payable to Ice Blast
West,  Inc. of $30,000. In addition, included in accrued liabilities at December
31, 2001 and 2000 is $15,000 and $30,000, respectively in accrued bonus to these
employees  for services provided. The Company began paying the bonuses at a rate
of  $15,000  per  year  in  2001.

   Ice  Blast  California  is a company owned by a brother of Mr. Visaisouk, the
Company's  President.  Ice  Blast  California acts a sales agent for the Company
and also performs ice blasting services using equipment owned by the Company for
which  the  Company  invoices  Ice  Blast  California.  During  2001the  Company
recorded  revenue  of  $44,500  on  sales  to  Ice  Blast  California.

   The  Company also purchases molded production and experimental machine parts,
covered  by  its  patents  and  made  solely  for  the Company per the Company's
specifications,  from  a  company owned by another brother of Mr. Visaisouk. The
Company  provides  the required resins, epoxies and other materials necessary to
mold  and  fabricate  theses  parts  and  pays  him  for the production thereof.
Management believes that comparable costs could not be achieved from alternative
vendors.  During  2000  the  Company  issued 66,400 shares of is Common Stock in
settlement  of  a  trade  payable  in  the  amount  of  $9,960.

   As discussed in Item 10, during 2001, the Board of Directors has approved and
the  Company  has  made  loans  to  officers  and  employees  to  assist them in
purchasing  the Company's Common Stock. These loans bear interest at the rate of
6.5%, are full recourse, and are collateralized by a pledge of the shares of the
Company's  Common  Stock  subscribed to and acquired pursuant to exercise of the
options. In connection with these notes, the Company has retained as collateral,
a  security  interest  in  7,850,000  of  Common  Stock issued. The principal is
repayable  five  years  from  the date of the loans, with interest only payments
required  annually  on  or  before  December  31.

   Apart  from  the issuance of the aforementioned loans to purchase stock, none
of  the  transactions  with  related  parties  involve amounts exceeding $60,000
during  any  year  that  the  Company  has  been  in  existence.







<page>  42
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

ITEM  13.  EXHIBITS  AND  REPORTS  ON  FORM  8K.

(a)  Exhibits

Exhibit
No.      Description
-------  -----------------------------------------------------------------------
3.1     Articles  of  Incorporation*

3.2     Amended  and  Restated  By-laws*

10.1    Industrial Lease Agreement of Kirkland Commerce Center to Universal Ice
        Blast  dated  March  5,  2001*

10.2    Universal  Ice  Blast,  Inc.  1999  Stock  Plan*

10.3    Purchase  Order dated August 3, 2001 from Ford Motor Company as amended
        on  January 11, 2002 and April 24, 2002.  Portions of this exhibit have
        been omitted and filed separately with the Securities Exchange
        Commission pursuant to the Company's application requesting confidential
        treatment in accordance with  Rule 24b-2 as promulgated under the
        Securities Exchange Act of 1934, as amended.

21.1    Subsidiaries  of  the  Company*

24.1    Power of Attorney (included on signture page to this Form 10KSB)

*  Previously  Filed.

(b) Reports on Form 8K.  No reports on Form 8-K were filed by the Company during
the  quarter  ended  December  31,  2001.

On  April  8,  2002  the Company filed a report on Form 8-K disclosing that Moss
Adams, LLP had declined to stand for re-appointment as the Company's independent
accountants.  This report also disclosed the fact that the Company had appointed
Williams  &  Webster,  P.S.  as  its  independent  accountants.






















<page>  43
                            UNIVERSAL ICE BLAST, INC.
                                   FORM 10K-SB
                      For the year ended December 31, 2001

                                   SIGNATURES

     Pursuant  to  the requirements of section 12 of the Securities Exchange Act
of 1934, the registrant has duly caused this registration statement to be signed
on  its  behalf  by  the  undersigned,  thereunto  duly  authorized.

Universal  Ice  Blast,  Inc.

By:     /s/   Rory  Clarke
------------------------------
RORY CLARKE, DIRECTOR AND CEO

Date:  May  15th,  2002

                                POWER OF ATTORNEY

     KNOWN  BY  ALL  MEN  BY  THESE  PRESENTS,  that each person whose signature
appears  below  constitutes  and  appoints  Rory  Clarke  his  true  and  lawful
attorney-in-fact  and agent, with full power of substitution and resubstitution,
for  him  and  in  his name, place, and stead, and in any and all capacities, to
sign  the  Form  10-KSB to which this power of attorney is attached, any and all
amendments  and  supplements to this Form 10-KSB, and any and all instruments or
documents filed as part of or in conjunction with this Form 10-KSB or amendments
or  supplements  thereto,  and to file this Form 10-KSB, all such amendments and
supplements,  and  all  exhibits  thereto  and  other  documents  in  connection
therewith,  with  the  U.S.  Securities  and  Exchange  Commission.

     Pursuant  to  the  requirements  of  the Securities Exchange Act, this Form
10-KSB  has  been  signed  by the following persons in the capacities and on the
dates  indicated.

Signatures               Title                            Date
--------------------     ----------------------------     ---------------

/s/ Rory Clarke
--------------------     Chief Executive Officer          May  15,  2002
Rory  Clarke               and Director

/s/ Sam Visaisouk
--------------------     President and Director           May  15,  2002
Sam  Visaisouk

/s/ David A. Saporta
--------------------     Chief Financial Officer          May  15,  2002
David  A.  Saporta













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