----

| Delaware                                                                                     |   | 62-1133652                                          |
|----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or                organization) |   | (I.R.S.                Employer Identification No.) |

| P.O.                Box 1355 Englewood Cliffs, New Jersey |   | 11580                     |
|-----------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices)   |   | (Zip                code) |

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| Part                I:  | FINANCIAL                INFORMATION                                                                 | 2      |
|-------------------------|------------------------------------------------------------------------------------------------------|--------|
|                    |                                                                                                 |   |
| Item                1:  | Financial                Statements                                                                  | 2      |
|                    |                                                                                                 |   |
| Item                2:  | Management's                Discussion and Analysis of Financial Condition and Results of Operations | 7      |
|                    |                                                                                                 |   |
| Part                II: | OTHER                INFORMATION                                                                     | 8      |
|                    |                                                                                                 |   |
| SIGNATURES              |                                                                                                 | 9      |

----

**Part      I Financial Information**

**Item      1.**
**      Financial Statements.**

| **Universal                Services Group, Inc. and Subsidiaries** |
|--------------------------------------------------------------------|
| **Consolidated                Balance Sheets**                     |
| **(UNAUDITED)**                                                    |

|                                                                 |   | May                1, |       | November                1, |   |
|----------------------------------------------------------------------|--------|-----------------------|------------|----------------------------|--------|
|                                                                      |   | 1999                  |       | 1998                       |   |
|                                                                 |   | (Unaudited)           |       | (Unaudited)                |   |
| **Assets:**                                                          |   |                  |       |                       |   |
|                                                                 |   |                  |       |                       |   |
| Current                Assets:                                       |   |                  |       |                       |   |
| Cash                and Cash Equivalents                             |   | $                     | 0          |                       | $      | 0 |   |
| Accounts                Receivable, Net                              |   |                  | 0          |                       |   | 0 |   |
| Accounts                Receivable-Sale of Assets                    |   |                  | 0          |                       |   | 0 |   |
| Other                Current Assets                                  |   |                  | 0          |                       |   | 0 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Total                Current Assets                                  |   | $                     | 0          |                       | $      | 0 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Property                & Equipment, Net                         |   |                  | 0          |                       |   | 0 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Other                Assets                                          |   |                  | 0          |                       |   | 0 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Total                Assets                                          |   | $                     | 0          |                       | $      | 0 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| **Liabilities:**                                                     |   |                  |       |                       |   |   |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Current                Liabilities                                   |   |                  |       |                       |   |   |   |
| Notes                Payable-Bank                                    |   | $                     | 0          |                       | $      | 0 |   |
| Current                Maturities of Long Term Debt                  |   |                  | 97,752     |                       |   | 97,752 |   |
| Accounts                Payable-Trade                                |   |                  | 82,161     |                       |   | 82,161 |   |
| Accrued                Payroll                                       |   |                  | 0          |                       |   | 0 |   |
| Payroll                Taxes Payable                                 |   |                  | 248,578    |                       |   | 248,578 |   |
| Accrued                Expenses                                      |   |                  | 310,302    |                       |   | 452,523 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Total                Current Liabilities                             |   | $                     | 738,793    |                       | $      | 881,014 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Non                Current Liabilities:                              |   |                  |       |                       |   |   |   |
| Notes                Payable-Related Parties                         |   |                  | 805,090    |                       |   | 805,090 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| Total                Liabilities                                     |   | $                     | 1,543,883  |                       | $      | 1,686,104 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| **Stockholders                Equity**                               |   |                  |       |                       |   |   |   |
| Common                Stock-$.06 Par Value                           |   |                       |            |                       |        |  |   |
| 50,000,000                Shares Authorized, 5,353,857 Shares        |   |                  |       |                       |   |   |   |
| Issued                and Outstanding                                |   | $                     | 321,232    |                       | $      | 321,232 |   |
| Additional                Paid in Capital                            |   |                  | 322,097    |                       |   | 322,097 |   |
| Retained                Earnings (Deficit)                           |   |                  | (2,187,212 | )                          |   | (2,329,433 | ) |
|                                                                 |   |                  |       |                       |   |   |   |
| Total                Stockholders Equity (Deficit)                   |   |                  | (1,543,883 | )                          |   | (1,686,104 | ) |
|                                                                 |   |                  |       |                       |   |   |   |
| Total                Liabilities & Stockholders Equity (Deficit) |   | $                     | 0          |                       | $      | 0 |   |
|                                                                 |   |                  |       |                       |   |   |   |
| See                Notes to Consolidated Financial Statements        |   |                  |       |                       |   |   |   |

----

| **Universal                Services Group, Inc. and Subsidiaries** |
|--------------------------------------------------------------------|
| **Consolidated                Statements of Operations**           |
| **For                the Three Months ended May 1, 1999 and 1998** |
| **(UNAUDITED)**                                                    |

|                                                            |   | For                the Three Months |    |
|-----------------------------------------------------------------|--------|-------------------------------------|---------|
|                                                            |   | Ended                               |    |
|                                                            |   | May                1,               |    | May                1, |   |
|                                                            |   | 1999                                |    | 1998 |   |
|                                                            |   | (Unaudited)                         |    | (Unaudited) |   |
|                                                            |   |                                |    |   |   |
| Revenues                                                        |   | $                                   | 0       |   | $ | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Direct                Costs                                     |   |                                | 0       |   |   | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Gross                Operating Profit                           |   | $                                   | 0       |   | $ | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| **Expenses:**                                                   |   |                                |    |   |   |   |   |
| Selling,                General and Administrative Expenses     |   |                                | 0       |   |   | 0 |   |
| Penalties                & Interest                         |   |                                | 0       |   |   | 0 |   |
| Interest                Expense, Net                            |   |                                | 0       |   |   | 0 |   |
| Total                Expenses                                   |   |                                | 0       |   |   | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Net                Income (Loss) before Extraordinary Item      |   |                                | 0       |   |   | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Extraordinary                Item:                              |   |                                |    |   |   |   |   |
| Forgiveness                of Debt on Settlement of Liabilities |   |                                | 142,221 |   |   | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Net                Income (Loss) before Taxes                   |   | $                                   | 142,221 |   | $ | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Less:                Provision for Income Taxes                 |   |                                | 0       |   |   | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Net                Income (Loss)                                |   | $                                   | 142,221 |   | $ | 0 |   |
|                                                            |   |                                |    |   |   |   |   |
| Net                Income (Loss) per Share                      |   |                                |    |   |   |   |   |
| Income                (Loss) before Extraordinary Item          |   |                                | 0.00    |   |   | 0.00 |   |
| Extraordinary                Item                               |   |                                | 0.02    |   |   | 0.00 |   |
|                                                            |   |                                |    |   |   |   |   |
| Net                Income (Loss) per Share                      |   | $                                   | 0.02    |   | $ | 0.00 |   |
|                                                            |   |                                |    |   |   |   |   |
| See                Notes to Consolidated Financial Statements   |   |                                |    |   |   |   |   |

----

| **Universal                Services Group, Inc. and Subsidiaries** |
|--------------------------------------------------------------------|
| **Consolidated                Statements of Operations**           |
| **For                the Six Months ended May 1, 1999 and 1998**   |
| **(UNAUDITED)**                                                    |

|                                                            |   | For                the Six Months |    |
|-----------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                            |   | Ended                             |    |
|                                                            |   | May                1,             |    | May                1, |   |
|                                                            |   | 1999                              |    | 1998 |   |
|                                                            |   | (Unaudited)                       |    | (Unaudited) |   |
|                                                            |   |                              |    |   |   |
| Revenues                                                        |   | $                                 | 0       |   | $ | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Direct                Costs                                     |   |                              | 0       |   |   | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Gross                Operating Profit                           |   | $                                 | 0       |   | $ | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| **Expenses:**                                                   |   |                              |    |   |   |   |   |
| Selling,                General and Administrative Expenses     |   |                              | 0       |   |   | 0 |   |
| Penalties                & Interest                         |   |                              | 0       |   |   | 0 |   |
| Interest                Expense, Net                            |   |                              | 0       |   |   | 0 |   |
| Total                Expenses                                   |   |                              | 0       |   |   | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Net                Income (Loss) before Extraordinary Item      |   |                              | 0       |   |   | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Extraordinary                Item:                              |   |                              |    |   |   |   |   |
| Forgiveness                of Debt on Settlement of Liabilities |   |                              | 142,221 |   |   | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Net                Income (Loss) before Taxes                   |   | $                                 | 142,221 |   | $ | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Less:                Provision for Income Taxes                 |   |                              | 0       |   |   | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Net                Income (Loss)                                |   | $                                 | 142,221 |   | $ | 0 |   |
|                                                            |   |                              |    |   |   |   |   |
| Net                Income (Loss) per Share                      |   |                              |    |   |   |   |   |
| Income                (Loss) before Extraordinary Item          |   |                              | 0.00    |   |   | 0.00 |   |
| Extraordinary                Item                               |   |                              | 0.02    |   |   | 0.00 |   |
|                                                            |   |                              |    |   |   |   |   |
| Net                Income (Loss) per Share                      |   | $                                 | 0.02    |   | $ | 0.00 |   |
|                                                            |   |                              |    |   |   |   |   |
| See                Notes to Consolidated Financial Statements   |   |                              |    |   |   |   |   |

----

| **Universal                Services Group, Inc. and Subsidiaries** |
|--------------------------------------------------------------------|
| **Consolidated                Statements of Cash Flows**           |
| **For                the Six Months ended May 1, 1999 and 1998**   |
| **(UNAUDITED)**                                                    |

|                                                             |   | For                the Six Months |     |
|------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                             |   | Ended                             |     |
|                                                             |   | May                1,             |     | May                1, |   |
|                                                             |   | 1999                              |     | 1998 |   |
|                                                             |   | (Unaudited)                       |     | (Unaudited) |   |
| Cash                Flow from Operating Activities               |   |                              |     |   |   |
| Income                (Loss) from Operations                     |   | $                                 | 142,221  |   | $ | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| Adjustments                to Reconcile Net Income to            |   |                              |     |   |   |   |   |
| Net                income (Loss) to Net Cash Provided            |   |                              |     |   |   |   |   |
| (Used)                by Continuing Operations:                  |   |                              |     |   |   |   |   |
| Depreciation                and Amortization                     |   |                              | 0        |   |   | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| (Increase)                Decrease in Assets                     |   |                              |     |   |   |   |   |
| Accounts                Receivable                               |   |                              | 0        |   |   | 0 |   |
| Accounts                Receivable-Sale of Business              |   |                              |     |   |   | 0 |   |
| Other                Current Assets                              |   |                              | 0        |   |   | 0 |   |
| Other                Assets                                      |   |                              | 0        |   |   | 0 |   |
| Increase                (Decrease) in Liabilities                |   |                              |     |   |   |   |   |
| Accounts                Payable                                  |   |                              | 0        |   |   | 0 |   |
| Accrued                Expenses                                  |   |                              | (142,221 | ) |   | 0 |   |
| Payroll                Taxes Payable                             |   |                              | 0        |   |   | 0 |   |
| Total                Adjustments                                 |   | $                                 | (142,221 | ) | $ | 0 |   |
| Net                Cash Provided (Used) by Operating Activities  |   | $                                 | 0        |   | $ | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| Investing                Activities                              |   |                              |     |   |   |   |   |
| Sale                of Assets                                    |   | $                                 | 0        |   | $ | 0 |   |
| Return                of Security Deposits                       |   |                              | 0        |   |   | 0 |   |
| Purchase                of Assets                                |   |                              | 0        |   |   | 0 |   |
| Net                Cash Provided (Used) by Investing Activities  |   | $                                 | 0        |   | $ | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| Financing                Activities                              |   |                              |     |   |   |   |   |
| Additional                Borrowings-Banks                       |   | $                                 | 0        |   | $ | 0 |   |
| Payments                to Banks                                 |   |                              | 0        |   |   | 0 |   |
| Payments                on Long Term Obligations                 |   |                              | 0        |   |   | 0 |   |
| Additional                Borrowings-Related Parties             |   |                              | 0        |   |   | 0 |   |
| Net                Cash Provided (Used) by Financing Activities  |   | $                                 | 0        |   | $ | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| Net                Increase (Decrease) in Cash & Equivalents |   | $                                 | 0        |   | $ | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| Cash                & Cash Equivalents-Beginning of Year     |   |                              | 0        |   |   | 0 |   |
| Cash                & Cash Equivalents-End of Year           |   | $                                 | 0        |   | $ | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| Supplemental                Disclosures of Cash Flow Information |   |                              |     |   |   |   |   |
| Cash                Paid during Year for: Interest               |   | $                                 | 0        |   | $ | 0 |   |
| Taxes                                                            |   |                              | 0        |   |   | 0 |   |
|                                                             |   |                              |     |   |   |   |   |
| See                Notes to Consolidated Financial Statements    |   |                              |     |   |   |   |   |

----

**Universal      Services Group, Inc. and Subsidiaries**

**Notes      to Consolidated Financial Statements**

**May      1, 1999**

**1.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:**

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| **Item                2.** | **Management's                  Discussion and Analysis of Financial Condition and****Results                  of Operations.** |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------|

**Introduction**

**Results      of Operations**

----

**Liquidity      and Capital Resources**

**Part      II OTHER INFORMATION**

| **Item              1.** | **Legal                Proceedings.** |
|--------------------------|---------------------------------------|

| **Item              2.** | **Changes                in Securities.** |
|--------------------------|-------------------------------------------|

| **Item              3.** | **Defaults                Upon Senior Securities.** |
|--------------------------|-----------------------------------------------------|

| **Item              4.** | **Other                Information.** |
|--------------------------|---------------------------------------|

| **Item              5.** | **Exhibits.** |
|--------------------------|---------------|

|   | 31.1   | Certification                of Chief Executive Officer and Acting Chief Financial                Officer |
|--------|--------|-----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                      |
|   | 32.1   | 906                Certification                                                                          |

----

**SIGNATURES**

|         |                                                                                                           |                             |
|--------------|----------------------------------------------------------------------------------------------------------------|----------------------------------|
|         | UNIVERSAL                SERVICES GROUP, INC.                                                                  |
|    |                                                                                                      |                        |
|              | By:                                                                                                  | /s/                Colin Halpern |
|         |                                                                                                                |
|         | Colin                Halpern, Chairman and Chief Executive Officer Date:                  August 15, 2007 |

----