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| 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) |

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| Part                I:  |   | FINANCIAL                INFORMATION                                                                                |   |  3 |
|-------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|---------|
|                    |   |                                                                                                                |   |    |
| Item                1:  |   | Financial                Statements                                                                                 |   |  3 |
|                    |   |                                                                                                                |   |    |
| Item                2:  |   | Management's                Discussion and Analysis of Financial Condition and Results of                Operations |   |  7 |
|                    |   |                                                                                                                |   |    |
| Part                II: |   | OTHER                INFORMATION                                                                                    |   |  8 |
|                    |   |                                                                                                                |   |    |
| SIGNATURES              |   |                                                                                                                |   |  9 |

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**Part      I Financial Information**

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

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

**Consolidated      Balance Sheets**

**(UNAUDITED)**

|                                                                                                      |   | February                1, |       | November                1, |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|----------------------------|--------|
|                                                                                                           |   | 1998                       |       | 1997                       |   |
|                                                                                                      |   | (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                                                                           |   |                       | 452,523    |                       |   | 452,523 |   |
|                                                                                                      |   |                       |       |                       |   |   |   |
| Total                Current Liabilities                                                                  |   | $                          | 881,014    |                       | $      | 881,014 |   |
|                                                                                                      |   |                       |       |                       |   |   |   |
| Non                Current Liabilities:                                                                   |   |                       |       |                       |   |   |   |
| Notes                Payable-Related Parties                                                              |   |                       | 805,090    |                       |   | 805,090 |   |
|                                                                                                      |   |                       |       |                       |   |   |   |
| Total                Liabilities                                                                          |   | $                          | 1,686,104  |                       | $      | 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)                                                                |   |                       | (2,329,433 | )                          |   | (2,329,433 | ) |
|                                                                                                      |   |                       |       |                       |   |   |   |
| Total                Stockholders Equity (Deficit)                                                        |   | $                          | (1,686,104 | )                          | $      | (1,686,104 | ) |
|                                                                                                      |   |                       |       |                       |   |   |   |
| Total                Liabilities & Stockholders Equity (Deficit)                                      |   | $                          | 0          |                       | $      | 0 |   |

----

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

**Consolidated      Statements of Operations**

**For      the Three Months ended February 1, 1998 and 1997**

**(UNAUDITED)**

|                                                        |   | For                the Three Months Ended |
|-------------------------------------------------------------|--------|-------------------------------------------|
|                                                        |   | February                1,                |   | February                1, |
|                                                        |   | 1998                                      |   | 1997 |
|                                                        |   | (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:                          |   |                                      |   |   |
| Write                downs/off on Closing of Business       |   | 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                  |   |                                      |   |   |
| Income                (Loss) before Extraordinary Item      |   | 0.00                                      |   | 0.00 |
| Extraordinary                Item                           |   | 0.00                                      |   | 0.00 |
|                                                        |   |                                      |   |   |
| Net                Income (Loss) per Share                  | $      | 0.00                                      | $ | 0.00 |

----

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

**Consolidated      Statements of Cash Flows**

**For      the Three Months ended February 1, 1998 and 1997**

**(UNAUDITED)**

|                                                             |   | For                the Three Months Ended |
|------------------------------------------------------------------|--------|-------------------------------------------|
|                                                             |   | February                1,                |   | February                1, |
|                                                             |   | 1998                                      |   | 1997 |
|                                                             |   | (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 |
| Gain                on sale of Fixed Assets                      |   | 0                                         |   | 0 |
|                                                             |   |                                      |   |   |
| (Increase)                Decrease in Assets                     |   |                                      |   |   |
| Accounts                Receivable                               |   | 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 |

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

**Notes      to Consolidated Financial Statements**

**February      1, 1998**

**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**

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**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                                                                          |

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**SIGNATURES**

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

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