----

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

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

----

| Part                  I:  | FINANCIAL                  INFORMATION                                                                                  |                    1 |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------|---------------------------|
|                      |                                                                                                                    |                      |
| Item                  1:  | Financial                  Statements                                                                                   |                    1 |
|                      |                                                                                                                    |                      |
| Item                  2:  | Management's                  Discussion and Analysis of Financial Condition and                  Results of Operations |  6                   |
|                      |                                                                                                                    |                      |
| Part                  II: | OTHER                  INFORMATION                                                                                      | 7                         |
|                      |                                                                                                                    |                      |
| SIGNATURES                |                                                                                                                    | 8                         |

----

**Part      I Financial Information**

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

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

|                                                                 |   | August                1, |       | November                1, |   |
|----------------------------------------------------------------------|--------|--------------------------|------------|----------------------------|--------|
| **Assets:**                                                          |   | 1997                     |       | 1996                       |   |
|                                                                 |   | (Unaudited)              |       | (Unaudited)                |   |
| 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                                 |   |                     | 328,578    |                       |   | 328,578 |   |
| Accrued                Expenses                                      |   |                     | 452,523    |                       |   | 452,523 |   |
|                                                                 |   |                     |       |                       |   |   |   |
| Total                Current Liabilities                             |   | $                        | 961,014    |                       | $      | 961,014 |   |
|                                                                 |   |                     |       |                       |   |   |   |
| Non                Current Liabilities:                              |   |                     |       |                       |   |   |   |
| Notes                Payable-Related Parties                         |   |                     | 725,090    |                       |   | 725,090 |   |
|                                                                 |   |                     |       |                       |   |   |   |
| Total                Liabilities                                     |   | $                        | 1,686,104  |                       | $      | 1,686,104 |   |
|                                                                 |   |                     |       |                       |   |   |   |
| **Stockholders                Equity**                               |   |                     |       |                       |   |   |   |
| Common                Stock-$.06 Par Value                           |   | $                        | 321,232    |                       | $      | 321,232 |   |
| 50,000,000                Shares Authorized, 5,353,857 Shares        |   |                     |       |                       |   |   |   |
| Issued                and Outstanding                                |   |                     |       |                       |   |   |   |
| Additional                Paid in Capital                            |   |                     | 322,097    |                       |   | 322,097 |   |
| Retained                Earnings (Deficit)                           |   |                     | (2,329,433 | )                          |   | (2,329,433 | ) |
|                                                                 |   |                     |       |                       |   |   |   |
| Total                Stockholders Equity (Deficit)                   |   | $                        | (1,686,104 | )                          | $      | (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 August 1, 1997 and 1996** |
| **(UNAUDITED)**                                                       |

|                                                        |   | For                  the Three MonthsEnded |   |
|-------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                        |   | August                1,                   |   | August                1, |   |
|                                                        |   | 1997                                       |   | 1996 |   |
|                                                        |   | (Unaudited)                                |   | (Unaudited) |   |
|                                                        |   |                                       |   |   |   |
| Revenues                                                    |   | $                                          | 0      |   | $ | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
| Direct                Costs                                 |   |                                       | 0      |   |   | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
| Gross                Operating Profit                       |   | $                                          | 0      |   | $ | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
| Selling,                General and Administrative Expenses |   |                                       | 0      |   |   | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
| Income                (Loss) from Operations                |   | $                                          | 0      |   | $ | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
| Other                Income (Expenses)                      |   |                                       |   |   |   |   |   |
| Penalties                & Interest                     |   |                                       | 0      |   |   | 0 |   |
| Interest                Expense, Net                        |   |                                       | 0      |   |   | 0 |   |
| Total                Other Income (Expenses)                |   | $                                          | 0      |   | $ | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
|                                                        |   |                                       |   |   |   |   |   |
| Net                Income (Loss) before Taxes               |   |                                       | 0      |   |   | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
| Less:                Provision for Income Taxes             |   |                                       | 0      |   |   | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
| Net                Income (Loss)                            |   | $                                          | 0      |   | $ | 0 |   |
|                                                        |   |                                       |   |   |   |   |   |
|                                                        |   |                                       |   |   |   |   |   |
| Net                Income (Loss) per Share                  |   | $                                          | 0.00   |   | $ | 0.00 |   |

| See                Notes to Consolidated Financial Statements |   |   |   |   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|

----

| **Universal                Services Group, Inc. and Subsidiaries**   |
|----------------------------------------------------------------------|
| **Consolidated                Statements of Operations**             |
| **For                the Nine Months ended August 1, 1997 and 1996** |
| **(UNAUDITED)**                                                      |

|                                                        |   | For                  the Nine MonthsEnded |   |
|-------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                        |   | August                1,                  |   | August                1, |   |
|                                                        |   | 1997                                      |   | 1996 |   |
|                                                        |   | (Unaudited)                               |   | (Unaudited) |   |
|                                                        |   |                                      |   |   |   |
| Revenues                                                    |   | $                                         | 0      |   | $ | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Direct                Costs                                 |   |                                      | 0      |   |   | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Gross                Operating Profit                       |   | $                                         | 0      |   | $ | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Selling,                General and Administrative Expenses |   |                                      | 0      |   |   | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Income                (Loss) from Operations                |   | $                                         | 0      |   | $ | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Other                Income (Expenses)                      |   |                                      |   |   |   |   |   |
| Penalties                & Interest                     |   |                                      | 0      |   |   | 0 |   |
| Interest                Expense, Net                        |   |                                      | 0      |   |   | 0 |   |
| Total                Other Income (Expenses)                |   | $                                         | 0      |   | $ | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
|                                                        |   |                                      |   |   |   |   |   |
| Net                Income (Loss) before Taxes               |   |                                      | 0      |   |   | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Less:                Provision for Income Taxes             |   |                                      | 0      |   |   | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Net                Income (Loss)                            |   | $                                         | 0      |   | $ | 0 |   |
|                                                        |   |                                      |   |   |   |   |   |
| Net                Income (Loss) per Share                  |   | $                                         | 0.00   |   | $ | 0.00 |   |

| See                Notes to Consolidated Financial Statements |   |   |   |   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|

----

| **Universal                Services Group, Inc. and Subsidiaries**   |
|----------------------------------------------------------------------|
| **Consolidated                Statements of Cash Flows**             |
| **For                the Nine Months ended August 1, 1997 and 1996** |
| **(UNAUDITED)**                                                      |

|                                                             |   | For                  the Nine MonthsEnded |   |
|------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                             |   | August                1,                  |   | August                1, |   |
|                                                             |   | 1997                                      |   | 1996 |   |
|                                                             |   | (Unaudited)                               |   | (Unaudited) |   |
| Cash                Flow from Operating Activities               |   |                                      |   |   |   |
| Income                (Loss) from Operations                     |   | $                                         | 0      |   | $ | 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      |   |   | 0 |   |
| Other                Current Assets                              |   |                                      | 0      |   |   | 0 |   |
| Other                Assets                                      |   |                                      | 0      |   |   | 0 |   |
| Increase                (Decrease) in Liabilities                |   |                                      |   |   |   |   |   |
| Accounts                Payable                                  |   |                                      | 0      |   |   | 0 |   |
| Accrued                Expenses                                  |   |                                      | 0      |   |   | 0 |   |
| Payroll                Taxes Payable                             |   |                                      | 0      |   |   | 0 |   |
| Total                Adjustments                                 |   | $                                         | 0      |   | $ | 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**

**August      1, 1997**

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

----

**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.**

| (a) | Exhibits |
|-----|----------|

| (b) | Reports                on Form 8-K |
|-----|------------------------------------|

|   |   | 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                                              |

----