<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
              |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended March 31, 2003

                                       OR

              | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
               For the transition period from ________ to ________

                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
             (Exact name of registrant as specified in its charter)

    Texas                          333-48659                        73-1537206
  (state of                (Commission File Number)               (IRS Employer
incorporation)                                                      I.D. Number)

                              133 East Tyler Street
                               Longview, TX 75601
                                  800-522-7841
             (Address and telephone number of registrant's principal
               executive offices and principal place of business)


              ----------------------------------------------------
             (Former name or address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve 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 | |

As of May 12, 2003, there were 16,597,194 shares of the Registrant's Common
Stock, par value $0.001 per share, outstanding.

Transitional Small Business Disclosure Format (check one): Yes | | No |X|
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<S>                                                                            <C>
Condensed Balance Sheets March 31, 2003 (Unaudited) and
         December 31, 2002 (Audited)                                           3
Statements of Operations Three Months Ended March 31, 2003 and 2002 and
         Period from August 14, 1997 to March 31, 2003                         4
Statements of Cash Flows Three Months Ended March 31, 2003 and 2002 and
         Period from August 14, 1997 to March 31, 2003                         5
Notes to Financial Statements (Unaudited)                                      6
</TABLE>


                                       2
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                  March 31, 2003           December 31, 2002
                                                                                   (Unaudited)                 (Audited)
                                                                                  --------------           -----------------
<S>                                                                               <C>                      <C>
                                   ASSETS
CURRENT ASSETS
   Cash and Cash Equivalents                                                       $   126,800                $   195,762
   Accounts Receivable, Less Allowance of $152,300                                      22,459                     29,113
   Note Receivable - related party, less allowance of 20,496                                --                         --
   Inventory                                                                           611,580                    615,786
   Prepaid Expenses                                                                     88,660                     88,660
                                                                                   -----------                -----------
         Total Current Assets                                                          849,499                    929,321
                                                                                   -----------                -----------

PROPERTY AND EQUIPMENT AT COST
   Property and Equipment                                                               56,223                     55,774
   Leasehold Improvements                                                               13,924                     13,499
   Accumulated Depreciation and Amortization                                           (34,807)                   (32,002)
                                                                                   -----------                -----------
         Net Property and Equipment                                                     35,340                     37,271
                                                                                   -----------                -----------

OTHER ASSETS
   Prepaid Royalties                                                                   509,566                    509,566
   Deposits                                                                              2,180                      2,180
   Patents and Licenses (net of accumulated amortization of $713,717
      and $673,134, respectively)                                                    1,836,213                  1,761,866
                                                                                   -----------                -----------
         Total Other Assets                                                          2,347,959                  2,273,612
                                                                                   -----------                -----------

TOTAL ASSETS                                                                       $ 3,232,798                $ 3,240,204
                                                                                   ===========                ===========

                    LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts Payable                                                                $    59,807                $    54,157
   Accrued Liabilities                                                                  31,313                     31,556
                                                                                   -----------                -----------
         Total Current Liabilities                                                      91,120                     85,713
                                                                                   -----------                -----------

STOCKHOLDERS' EQUITY
   Preferred Stock, par value $.001; 10,000,000
      shares authorized, no shares issued                                                   --                         --
   Common Stock, par value $.001; 40,000,000
      shares authorized, 16,032,194 & 15,657,194
      shares issued and outstanding respectively                                        16,033                     15,658
   Common Stock Subscribed                                                             100,000                     60,000
   Additional Paid in Capital                                                        8,117,346                  7,997,721
   Deficit Accumulated in Development Stage                                         (5,066,701)                (4,893,888)
   Treasury Stock                                                                      (25,000)                   (25,000)
                                                                                   -----------                -----------
         Total Stockholders' Equity                                                  3,141,678                  3,154,491
                                                                                   -----------                -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                         $ 3,232,798                $ 3,240,204
                                                                                   ===========                ===========
</TABLE>


                                       3
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED
                                                                         MARCH 31                        PERIOD FROM
                                                           -----------------------------------        AUGUST 14, 1997 TO
                                                               2003                   2002              MARCH 31, 2003
                                                           ------------           ------------        ------------------
<S>                                                        <C>                    <C>                 <C>
SALES                                                      $     42,681           $     41,649           $   749,249

COST OF SALES                                                    16,981                  5,308               282,691
                                                           ------------           ------------           -----------

GROSS PROFIT                                                     25,700                 36,341               466,558
                                                           ------------           ------------           -----------

OPERATION EXPENSES
   Selling, general, and administrative expenses                156,083                160,498             4,703,104
   Amortization                                                  40,853                 40,853               723,684
   Depreciation                                                   2,805                  2,805                59,776
                                                           ------------           ------------           -----------
      Total operating expense                                   199,741                204,156             5,486,564
                                                           ------------           ------------           -----------

NET EARNINGS (LOSS) FROM OPERATIONS                            (174,041)              (167,815)           (5,020,006)

OTHER INCOME
   Interest income                                                  576                    863                60,956
   Interest expense                                                  --                     (7)              (16,401)
   Royalty income                                                   652                  4,323                 5,927
   Gain/Loss on Sale of Asset                                        --                     --               (13,200)
   Miscellaneous                                                     --                     --                35,617
                                                           ------------           ------------           -----------
      Total other income (expense)                                1,228                  5,179                72,899
                                                           ------------           ------------           -----------

NET LOSS BEFORE CUMULATIVE EFFECT OF THE
CHANGE IN ACCOUNTING PRINCIPLE                                 (172,813)              (162,636)           (4,947,107)
                                                           ------------           ------------           -----------

Cumulative effect on prior years of the change
in accounting principle, net of tax                                  --                     --              (119,594)
                                                           ------------           ------------           -----------

NET LOSS                                                   $   (172,813)          $   (162,636)          $(5,066,701)
                                                           ============           ============           ===========

NET LOSS PER SHARE BEFORE CUMULATIVE
EFFECT OF THE CHANGE IN ACCOUNTING PRINCIPLE               $      (0.01)          $      (0.01)          $     (0.50)

Cumulative effect on prior years of the change in
accounting principle                                                 --                     --                 (0.01)
                                                           ------------           ------------           -----------
NET EARNINGS (LOSS) PER SHARE                              $      (0.01)          $      (0.01)          $     (0.51)
                                                           ============           ============           ===========

WEIGHTED AVERAGE SHARES                                      15,859,778             13,520,772             9,967,110
</TABLE>


                                       4
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED
                                                                         MARCH 31                        PERIOD FROM
                                                           -----------------------------------        AUGUST 14, 1997 TO
                                                               2003                   2002              MARCH 31, 2003
                                                           ------------           ------------        ------------------
<S>                                                        <C>                    <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss                                                $   (172,813)          $   (162,636)          $(5,066,701)
   Adjustments to reconcile net earnings (loss)
   to cash used in operating activities
      Amortization                                               40,853                 40,853               723,684
      Bad debt expense                                               --                     --               185,530
      Cumulative effect of change in accounting
      principle                                                      --                     --               119,594
      Depreciation                                                2,805                  2,805                59,776
      Gain (loss) on sale of assets                                  --                     --                 2,753
      Recission of Lady Burd asset purchase
      agreement                                                      --                     --                50,000
      Common stock issued for services                            4,800                     --               411,444
      Change in assets and liabilities
         Accounts receivable                                      6,654                (14,679)             (223,724)
         Note receivable                                             --                     --                    --
         Inventory                                                4,206                 (2,729)             (688,732)
         Prepaid expenses and deposits                               --                     --              (523,254)
         Accounts payable                                         5,650                 10,777                59,807
         Accrued liabilities                                       (243)                  (813)               31,313
                                                           ------------           ------------           -----------
            Net cash used in operating activities              (108,088)              (126,422)           (4,858,510)
                                                           ------------           ------------           -----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Acquisition of property and equipment                           (874)                  (647)              (84,873)
   Organization costs                                                --                     --              (129,291)
   Acquisition of licenses/patents                                   --                     --              (110,000)
   Proceeds from sale of equipment                                   --                     --                47,440
                                                           ------------           ------------           -----------
            Net cash used in investing activities                  (874)                  (647)             (276,724)
                                                           ------------           ------------           -----------

CASH FLOWS FROM FINANCING ACTIVITIES
   Loan proceeds                                                     --                     --                 6,554
   Loan principal repayments                                         --                     --               (66,990)
   Loan principal repayments - related party                         --                     --              (134,265)
   Proceeds from sale of stock                                   40,000                 85,000             5,456,735
                                                           ------------           ------------           -----------
            Net cash provided by financing
            activities                                           40,000                 85,000             5,262,034
                                                           ------------           ------------           -----------

NET INCREASE (DECREASE) IN CASH                                 (68,962)               (42,069)              126,800

Cash - Beginning of Period                                      195,762                193,806                    --
                                                           ------------           ------------           -----------

Cash - End of Period                                       $    126,800           $    151,737           $   126,800
                                                           ============           ============           ===========

SUPPLEMENTAL CASH FLOW INFORMATION
   Noncash investing and financing activities
      Issuance of 360,000 shares of common stock
         at $0.32 per share for marketing rights           $    115,200           $         --           $   115,200
</TABLE>


                                       5
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)

The balance sheet of Summit Environmental Corporation, Inc. (the "company"), at
December 31, 2002 has been taken from the company's audited financial statements
at that date. The balance sheet at March 31, 2003, the statement of operations
for the three months ended March 31, 2003 and the three months ended March 31,
2002 and the period from August 14, 1997, to March 31, 2003, and the statement
of cash flows for the three months ended March 31, 2003 and the three months
ended March 31, 2002 and the period from August 14, 1997 to March 31, 2003 have
been prepared by the company without audit. The financial statements have been
prepared in conformity with generally accepted accounting principles and contain
such adjustments as management feels are necessary to present fairly, in all
material aspects, the financial position and results of operation of the
company.

1.    SIGNIFICANT ACCOUNTING POLICIES

      Business Activity

      Summit Environmental Corporation, Inc. was organized in accordance with
      the Business Corporation Act of the State of Texas on February 2, 1998,
      for the purpose of merging (the "merger") with Summit Technologies, Inc.,
      a Texas corporation. The company continued to exist as the surviving
      corporation under its present name pursuant to the provisions of the Texas
      Business Corporation Act. The merger was effected on December 2, 1998 as a
      tax-free reorganization accounted for as a pooling of interests.

      The company markets fire suppression materials, environmentally safe
      cleaning chemicals, and natural, botanical cosmetic products. The products
      are proprietary or are under exclusive license. Marketing efforts include
      "infomercials" and other television and radio promotion, videotapes, and
      personal demonstrations. Products are marketed domestically and
      internationally.

      Revenue Recognition

      Revenues from sales of materials and products are recorded at the time the
      goods are shipped or when title passes.

      Cash

      The company maintains cash balances at financial institutions located in
      Longview, Texas, which at times may exceed federally insured limits. The
      company has not experienced any losses in such accounts and believes it is
      not exposed to any significant credit risk on cash and cash equivalents.

      For purposes of the statement of cash flows, the company considers all
      highly liquid investments with a maturity of three months or less when
      purchased to be cash equivalents.


                                       6
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)

      Inventory

      Inventory is recorded at the lower of cost or market, with the cost being
      determined by the first-in, first-out method.

      Intangible Assets

      Patents and licenses costs are recorded at cost. Amortization is computed
      on the straight-line method over fifteen years.

      Income Taxes

      Deferred income taxes are determined using the liability method under
      which deferred tax assets and liabilities are determined based upon
      differences between financial accounting and tax bases of assets and
      liabilities.

      Property and Equipment

      Depreciation and amortization are provided in amounts sufficient to relate
      the cost of depreciable assets to operations over their estimated service
      lives by the straight-line method.

      Leasehold improvements are amortized over the lives of the respective
      leases or the service lives of the improvements, whichever is shorter.

      Major repairs or replacements of property and equipment are capitalized.
      Maintenance, repairs and minor replacements are charged to operations as
      incurred.

      When units of property are retired or otherwise disposed of, their cost
      and related accumulated depreciation are removed from the accounts and any
      resulting gain or loss is included in operations.

      The estimated service lives used in determining depreciation and
      amortization are:

<TABLE>
<CAPTION>
         Description                                  Estimated Service Life
         -----------                                  ----------------------
<S>                                                   <C>
         Automobiles                                               5 years
         Office furniture and equipment                            5-7 years
         Leasehold improvements                                    4 years
</TABLE>


                                       7
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)

      Advertising and Marketing

      Advertising and marketing costs are expensed as incurred, which totaled
      $2,275 and $7,814 for the first quarters of 2003 and 2002, respectively.

      Use of Estimates

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

      Per Share Information

      Per share information is based on the weighted average number of common
      stock and common stock equivalent shares outstanding. Only basic earnings
      per share are shown, as there are no dilutive items.

2.    PATENT

      On November 2, 1998, the company purchased via issuance of common stock
      and a note payable, patent rights and intellectual property to various
      fire suppression products for a purchase price of $2,375,000. This
      purchase required cash payments of $500,000 and 875,000 shares of common
      stock of the company to be issued and delivered to BioGenesis Enterprises,
      Inc.

3.    LICENSES

      Licenses for exclusive marketing rights to various products have been
      acquired for fees totaling $60,000 from a related party. The company is
      the manufacturer/supplier of the products.

            Worldwide exclusive marketing rights to BioRemediation Technology
      developed by Mohsen. C. Amiran, Ph.D. were acquired for stock in the
      amount of 360,000 shares and 180,000 warrants exercisable at $1.00 per
      share during the first quarter of 2003.

4.    LEASES

      The company is obligated under various operating leases for equipment,
      vehicles, and office and warehouse space. Rent expense for all operating
      leases was $15,657 and $9,122 for the first quarters of 2003 and 2002,
      respectively.


                                       8
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)

5.    COMMON STOCK

      Private Placement

      During the fourth quarter of 2002, the board approved a private placement
      offering for 500,000 shares of common stock at $0.25 per share. 430,000
      of these shares were issued during the fourth quarter of 2002. During
      first quarter 2003, 510,000 shares were sold.

      Common Stock Options

      The sole director and stockholders approved the 1998 Stock Option Plan
      (the "Plan") of the company whereby, at the discretion of the directors or
      of a Stock Option Committee appointed by the board of directors, invited
      employees of the company or directors of the company or consultants to the
      company will have the option of subscribing to common shares of the
      company based on a price determined by the directors or Stock Option
      Committee. The number of shares subject to the Plan is 500,000.

      In September 1999, the Board of Directors issued options to purchase
      350,000 shares of common stock to employees and directors pursuant to the
      Plan.

      Warrants

      During the fourth quarter of 2002, the company reduced the exercise price
      of the warrants to $0.25 and added one new warrant for every two warrants
      purchased, exercisable through February 14, 2003. During the fourth
      quarter of 2002, 430,000 warrants were purchased for shares.

6.    RELATED PARTY TRANSACTIONS

      The following transactions occurred between the company and related
      parties:

      The company acquired a patent from BioGenesis Enterprises, Inc.
      (BioGenesis) on November 2, 1998 (see Note 2). The purchase agreement
      requires the company to pay BioGenesis a periodic royalty of $.50 per
      16-oz. can of FirePower 911(TM), $0.35 per 1 Liter can of FirePower
      911(TM) and a negotiated percentage on large batch orders of FirePower
      911(TM). One-half of all periodic royalty fees due to BioGenesis will be
      credited against the advance royalty fee (until fully recovered) and
      one-half will be paid to BioGenesis in cash on the 30th of each month
      based upon invoiced sales through the close of the preceding month. The
      company has prepaid royalties to BioGenesis totaling $509,566 as of both
      December 31, 2002 and March 31, 2003.


                                       9
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)

7.    CONCENTRATIONS

      Approximately 60 percent of the sales in the first quarter of 2003 were
      made to three customers and 61 percent of the sales in the first quarter
      of 2002 were made to four different customers.

8.    INCOME TAXES

      Deferred tax assets and liabilities are determined based on the
      differences between the financial statement and tax bases of assets and
      liabilities as measured by the currently enacted tax rates. Deferred tax
      expense or benefit is the result of the changes in deferred tax assets and
      liabilities.

      Deferred income taxes and liabilities arise principally from the temporary
      differences between financial statement and income tax recognition of
      depreciation and amortization, bad debts and net operating losses.

9.    AGREEMENTS

      In January 2002, Summit entered into a joint venture agreement with Earth
      Safe Technology, Inc. to market exclusively products manufactured for
      Summit by BioGenesis pursuant to Summit's patent ownership in Mexico. In
      December, 2002, the company began direct negotiations with Pemex Oil
      Company of Mexico. Permits are being issued for us to travel to
      Guadalajara and Monterey to conduct specific fire certification tests
      during the second and third quarters of 2003.

      In February 2002, Summit entered into a distribution agreement with
      Tianyang Group for the sale of products manufactured by Summit. These
      products are to be sold to Tianyang for production and resale in the
      Peoples Republic of China. Summit terminated this agreement for
      non-production during the first quarter of 2003.

      On February 6, 2002, Summit executed a Distribution Agreement with 614575
      Alberta Limited of Calgary, Alberta, Canada. Alberta Limited manufactures
      a series of home fire extinguishing systems which feature FlameOut(R) as
      part of each system. 614575 has changed their trade name to Just-in Case
      Fire Limited. Summit and Just-in Case Fire executed a bi-lateral exclusive
      agreement during the second quarter of 2002. The company sells FlameOut(R)
      to Just-in Case Fire exclusively for their mobile fire extinguishing
      systems. The company will receive a royalty on the sale of each unit for
      the granting of said exclusivity.


                                       10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

      The following discussion and analysis should be read in conjunction with
the financial statements and the accompanying notes thereto and is qualified in
its entirety by the foregoing and by more detailed financial information
appearing elsewhere. See "Item 1. Financial Statements."

 RESULTS OF OPERATIONS - FIRST QUARTER OF 2003 COMPARED TO FIRST QUARTER OF 2002

      Summit Environmental's gross receipts for Q1 2003 were $43,333 ($42,681
sales and $652 royalties) down six percent from $45,972 ($41,649 sales and
$4,323 royalties) in Q1 2002. The gross margin for sales in Q1 2003 was 60%
compared to 87% for Q1 2002. There is no cost of sales applied to the royalties.

      Operating expenses decreased 2% for Q1 2003 compared to Q1 2002. Operating
expenses decreased by $4,415 from $204,156 in Q1 2002 to $199,741 in Q1 2003.

      Amortization and depreciation were $43,658 in both Q1 2003 and Q1 2002.

      Summit had a net loss of $172,813 in Q1 2003, up from the net loss of
$162,636 in Q1 2002.

      Management attributes these changes to the following:

            Officer compensation from $30,462 to 37,500;
            Office salaries from $19,860 to $20,705;
            Office and warehouse rent from $7,232 to $10,399; and
            Office expenses from $5,513 to $7,013.

      OVERVIEW

      By year end 2002, we had finalized more of our distribution negotiations,
and the U.S. Forestry Service product certifications for FlameOut(R) were near
completion. After the end of Q1 2003, on May 2, 2003 FlameOut(R) was formally
listed on the QPL (Quality Products Listing) for the United States Forestry
Service under test standard 5100-307. Our vision continues to be marketing our
products through strategic alliances. By year end, additional new agreements had
been reached or executed in Australia, New Zealand, Belize, Honduras, Guatemala,
Costa Rica, Nicaragua, Panama, El Salvador, and by separate agreement in Mexico.

      Our management has held fast to the theme of establishing a sound retail
pricing structure for FIREPOWER 911(TM). Early on (July 1998 to March 1999), we
were successful in getting FIREPOWER 911(TM) approved by Wal-Mart on a regional
basis, first, and then elevated to full category status. Existing purchase
orders were in hand.

      However, management was not comfortable on issues such as the terms for
continuing fulfillment, insufficient timing for completion of orders based on
manufacturing criteria unique to


                                       11
<PAGE>
FIREPOWER 911(TM), and the possibility of delayed payments regardless of
contractual terms. When the discounting of FIREPOWER 911(TM) was taken into
consideration, management was not willing to jeopardize long-term success for
short-term gain. Therefore, an agenda was developed to first introduce FIREPOWER
911(TM) through marketing venues where discount pricing was not the primary
negotiating factor.

      We set out to place FIREPOWER 911(TM) into a retail environment where
pricing was not an issue to its success. When initial sales were made to grocery
supply companies, grocery stores and convenience stores, there was no effective
marketing/merchandising follow-up network in place to facilitate the in-store
service requirement held by the large store chains across the country. The
existing agreement with Convenience Service Group did not meet our criteria for
servicing the customers and was terminated in order that the company could take
a new direction with FIREPOWER 911(TM).

      Still believing in the uniqueness of an aerosol product providing safety
and ease of use for all consumers, we negotiated an agreement with a firm,
Triple-S Marketing, to provide the in-store service required by some of the
nation's larger retailers. We focused on Triple-S because of its emphasis on
home improvement stores. During the first quarter of 2002, Lowe's Home
Improvement stores gave Triple-S Marketing the initial approval for FirePower
911(TM) on a test market in and out program. Safety Saturday in June 2002 and
National Fire Protection Month (October) were the scheduled dates. Due to our
negotiations with George Foreman, former World Heavyweight Boxing Champion, we
requested that Triple-S place the FIREPOWER 911(TM) test market on hold until
completion of said negotiation. Also, we are negotiating with a national
infomercial company for the development and placement of the infomercial. All of
these proposals, negotiations, and agreements are currently on hold due to a
previous client's proposal to purchase the licensing and marketing rights to our
aerosol fire extinguisher technology. In January, we were contacted by The
Clorox Corporation, reviving previous negotiations from 1999 through 2000 with
regards to the private labeling of FirePower 911(TM). Representatives of Clorox
met with management twice during the first quarter of 2003. At the second
meeting, a proposal was made by Clorox to obtain the exclusive licensing and
marketing rights to our Aerosol Fire Extinguisher Technology. The Board of
Directors met during the last week of March. We sent a counter proposal to
Clorox in early April. Management and Clorox have agreed to several terms of the
negotiations. We have agreed to set-up a meeting with Dr. Amiran, Keith Parker,
and the representatives from Clorox in June 2003.

      In 2000, the first shipment of FIREPOWER 911(TM) was packaged for
international sales with foreign language labels. Initial first market shipments
ranging from 2,000 to 5,000 cans went to Chile, Hong Kong and Japan. 5,000 cans
were to be sold to the public by the local fire departments in Chile. We and
Marketing Perspectives Incorporated ("MPI") will be satisfying labeling
requirements and insurance requests for completed product liability coverage.
FIREPOWER 911(TM) has also been approved by the Cabineros (federal police) in
Chile as part of their military equipment belt. FIREPOWER 911(TM) will be on
these equipment belts as a tool for riot control due to fire bombs thrown into
crowds at large public events such as soccer matches. Through our South American
alliance partner, we submitted material, product, and previous certifications to
the authorities in Chile and Argentina in order to obtain the appropriate
approvals and ratings with each country. Our existing certifications on both
FIREPOWER 911(TM) and FLAMEOUT(R) have been accepted. Additional approvals were
received during 2002 by the


                                       12
<PAGE>
Junta Nacional (National Fire Department) and IDEM for official fire
extinguisher ratings of FirePower Liquido 911 by the University of Chile.
Pre-marketing Television Marketing infomercials are scheduled for May 2003 in
order to prepare the market for the introduction of the product to the
citizenship of Chile.

      Official government of Chile approvals and certifications have been
completed with the regulatory agencies. The first customer for FirePower Liquido
911 is the Federal Police of Chile (Caribineros). We met with the United States
Government Export-Import Bank in October 2002. The purpose was to learn about
the environmental products export program. The program will allow us to accept
International Purchase Orders, granting payment terms to our international
customers. With a qualifying credit report, we can take a purchase order to the
bank and finance 90 percent of the total amount. By virtue of Ex-Im Bank's
credit analysis, Ex-Im Bank guarantees the repayment of our loan. We then
purchase export credit insurance from Ex-Im Bank to be used in the event of
default. We submitted the application to the Ex-Im Bank on March 10, 2003 on
behalf of our customer in Chile. The initial order, which will depend on the
final credit approval of our customer, will be between 15,000 and 20,000 cans.
The overall plan, which carries Chilean government endorsement, is for 250,000
cans over the next two years. The pre-market television promotion is scheduled
for May 2003.

      In 2000, we were notified by a direct home product television sales
channel that FIREPOWER 911(TM) would be part of its programming in 2001. QVC
notified us in March 2002 that product approval has been completed. QVC, seeking
a letter of verification that FIREPOWER 911(TM) is validated for sales in all 50
states, received same from Applied Research Laboratories which is posted on our
web site. We have complied with all requirements and passed Quality Assurance
requirements. For product shipping, QVC sought a confirming letter from UPS that
the proper classification for shipping FIREPOWER 911(TM) according to US-DOT
guidelines was as "Consumer Commodity - aerosol non-flammable". UPS wrote two
separate qualifying letters for our company. QVC's legal department then
requested a letter from the US-DOT confirming what we claimed and UPS supported.
Official confirmation from DOT was obtained on February 21, 2003. QVC had
informed the company that once this letter was obtained "all" requirements would
be met. On March 3, 2003, the buyer at QVC informed management that FIREPOWER
911(TM) had been approved and would be submitted for the TSV (Today's Special
Value) programming rather than regular programming like we have experienced with
the Pannache Cosmetics Luscious Dust Brush. This is an 8-to-10 program airing in
the same 24-hour period. We anticipate this occurring during the third quarter
of 2003. However, due to the proposal from Clorox, we were not sure whether we
could negotiate to continue with this project. The proposal from Clorox for the
purpose of purchasing the licensing and marketing rights will contain language
which will either allow or disallow our continuation with the marketing of
FirePower 911(TM). The meeting with Clorox was held on March 26, 2003. The Board
of Directors met on March 27, 2003 to discuss the Clorox offer versus the QVC
purchase order. The purchase order from QVC has been noted to be very sizable.
In addition, management has been contacted regarding the possibility of another
offer from a large chemical and fire products company stating that a proposed
private label offer for FirePower 911(TM) is to be presented to us. When we sent
the counter proposal to Clorox, we stated that QVC would need to be
grandfathered into any agreement. A follow-up contact between representatives of
Clorox and Summit indicated that the maintaining of our relationship with QVC
would not be a problem. The QVC promotion will be for a two-can unit. Therefore,
we had to re-submit a package for the UPS drop test with two cans in the


                                       13
<PAGE>
package rather than the one can package previously submitted and approved.
Conversations between management and the buyer at QVC indicated that as soon as
the drop test was completed, the purchase order would be issued. We anticipate
this approval and purchase order by the end of May 2003. Management has
suggested to our buyer at QVC a two-program airing of FirePower 911(TM) prior to
the TSV. Additionally, we will be changing the product name to merely
FirePower(TM), eliminating the 911. We are sensitive to the feelings of victims'
families from the September 11, 2001 attacks and do not want to be perceived as
trying to capitalize on some event unfairly. Even though 911 has been a part of
our product name for several years prior to the events of September 11, 2001,
our product is still relatively unknown and could be inappropriately judged.

      Our strategic alliance partner, International Aero, Inc., is the world's
largest reconfiguration company for commercial aircraft. We and International
Aero have been working on the minimum performance standards requirements
established by the Federal Aviation Administration. Previously, the handheld
fire extinguishers onboard all commercial aircraft contained Halon 1211. The
Geneva Peace Conference banning of Halon 1211 included a catastrophic exposure
clause called Mission Critical that allowed the airline industry an extension of
time before these extinguishers faced mandated replacement. The testing protocol
for selecting the replacement agent has been published by the FAA. FLAMEOUT(R)
meets all of the technical criteria required by the performance standards. Last
year, the actual Gross Volume Production Tests of FLAMEOUT(R) on jet fuel and
heptane were conducted. The initial performance tests will be conducted at
International Aero's new licensed fire testing facility. In December 2001,
FLAMEOUT(R) was officially listed by the US Department of Transportation and
Federal Aviation Administration as an officially approved replacement for Halon.

      International Aero's distribution rights extend to the aviation industry,
the United States Military, and the United States Gulf Coast petroleum industry.
In conjunction with the research department at International Aero, we are
developing an alternative to another fire-fighting agent, AFFF. AFFF, used
primarily for petroleum fires, is a known cancer-causing agent. Our intent with
International Aero is to develop a non-toxic, non-corrosive, biodegradable
alternative for AFFF. During April of 2000, FLAMEOUT FOAM(TM) was tested at the
Ansul fire test facility in Marinette, Wisconsin. The foam stability test was
very successful. Additionally, FLAMEOUT FOAM(TM) was the only product tested to
pass the UL162 encapsulation and emulsification test. This new formula has been
tested by Jockel Manufacturing in Germany and by the National State Fire
Department and Testing Agency in Brazil and Exxon of Norway. Testing for a
military specification number as an alternative for AFFF at the United States
Air Force testing center at Eglin Air Force base in Florida began in April 2002.
FLAMEOUT(R) Foam has been selected as one of the three products for further
advanced testing for approval.

      We have developed a non-toxic, biodegradable turbine cleaner for use on
jet engines. In only fifteen minutes, ULTIMATE CLEAN 668(TM) can remove enough
residue from jet engine blades that the next flight would experience fuel
savings sufficient to pay for the expense of the cleaning. The cleaning of the
engines on planes is required as regular periodic maintenance. When fuel savings
are considered, this means savings for the airlines. Currently used products
produce a run-off residue with contamination by metal particles that find their
way into the ground water. The first in a series of required tests began in
November 1999, for the purpose of establishing ULTIMATE CLEAN 668(TM) as
non-corrosive regarding eight different metals. With the completion of the
corrosive metals tests, actual


                                       14
<PAGE>
onboard tests will begin in order for us to obtain a military specification
number for ULTIMATE CLEAN 668(TM). The protocol under which ULTIMATE CLEAN
668(TM) is now being tested is for multiple applications and is expected to
culminate in a military specification number. The use of this product will allow
commercial airline companies to be in compliance with the newly mandated EPA
Water Runoff Quality Standards. The alternatives for the airlines are very
costly measures that would affect every department of their operations.
Continued use of the corrosive cleaners would require the cleanings to be
performed in designated cleaning areas, away from the airlines' operations.

      Additionally, the Department of Defense ("DOD") is also involved with this
testing and approval. The original direction of ULTIMATE CLEAN 668(TM) was for
the commercial airline industry. The DOD's involvement has increased our
potential market by another 50 percent from the original projections based on
International Aero's customer base.

      Also incorporated into the test of the company's Type III concentrate was
the addition of Type II concentrate and Type II ready-to-use tests for
additional approvals. These additional approvals also increase the size of the
market for the product and the amounts of product to be used.

      We concede that this testing process has been very tedious and
time-consuming. The reward for us will be a head start in the market. Even
though there have been unknowns to be dealt with, we and our product have not
experienced any setbacks. The lab conducting the test protocols for the
MIL-PRF-85704C has notified us that Ultimate Clean 668(TM) has successfully
conformed with the requirements for corrosion, crazing, painted surfaces,
acrylic surfaces, and water and acid stability. The storage stability test is
the final remaining requirement and is now classified as "accelerated storage
stability." Application was formally requested by the United States Navy, and we
and International Aero promptly submitted said application. Our physical testing
request has been accepted at Pax River. The major obstacle has centered around
an aqueous (water) based product testing to a 50-year-old-plus military
specification designed for petro-chemically produced products. We, BioGenesis,
and the laboratory collectively have resolved a major obstacle with regards to
storage stability. We and International Aero are fervently working at completion
of the protocol as there are several major airlines awaiting product approval in
order that orders be placed through International Aero.

      Further tests being on FLAMEOUT(R) had positioned FlameOut(R) to become
officially approved in Brazil by the end of the second quarter of 2002. The
financial crisis in Argentina put this process on hold. Once the IMF Bank fund
reclassifies the currency in Argentina, the company can proceed through Ex-Im
Bank. This approval will also be accepted in the other Mercosur Pact countries
-- Argentina, Uruguay and Paraguay. MPI notified us that the IMF rating for
Argentina's currency occurred in February 2003. Representatives of MPI will be
traveling to Argentina to reopen the process we have been involved with during
the third week of March 2003. In April, MPI notified us that the initial plan
for production in Argentina was back on a schedule. The Export-Import Bank is
scheduled to reclassify the monetary system in Argentina in June 2003.


                                       15
<PAGE>
      COSMETICS

      During the 3rd Quarter of 2000, management gave Paula Parker,
Vice-President for Shareholder Relations, a directive to develop a new product
line, a color cosmetic line to complement the already developed skin care
cosmetic line, Pannache. This product line is environmentally friendly and made
with premium botanical and natural essential oils and vitamins. The initial
product would be in a new category of cosmetic lipsticks; long-lasting, no
smear, semi-permanent lip color. The company first introduced Luscious Lips in
August 2001. Luscious Lips initially was manufactured for Pannache by Lady Burd
Exclusive Private Label Cosmetics. Our website www.pannachelusciouslips.com
displays the entire Pannache/Luscious Cosmetics Product Line.

      The idea for the star product of the color line was to develop a
semi-permanent, long-wearing, no smear or stain lip color. Companies like Avon,
Beauty Control, Max Factor, Revlon, Cover Girl and Maybelline have developed
products they tout as long-wear, no smear; however, we believe they do not
perform as advertised. Luscious Lips will stay on 8 to 10 hours and will not
come off until removed with remover. The development phase began in September
2000 with final formula approvals in June 2001. We received four of the twelve
selected colors in August and began the first of two directed test markets. One
market was to sell product directly to performing groups such as dance lines,
dance schools, high school drill teams, cheerleaders and twirling groups. Prior
to beginning, we secured the endorsements during July for the Miss Texas and
Miss Arkansas Pageants. Both Stacy James (Miss Texas 2001) and Jessie Ward (Miss
Arkansas 2001) were using Luscious Lips during their state pageants when they
won their respective pageants. Stacy was in the top twenty and Jessie was a top
ten finalist in the Miss America Pageant.

      Pageants were being held every weekend from October 1, 2001, through July,
2002. There were over 50,000 contestants introduced to - and many using -
Luscious Lips in the Arkansas pageant system. Jessie Ward's photos appear in all
official company publications and web sites. The official web address is
www.lusciouslips.cc and www.pannachelusciouslips.com.

      The success of the test markets indicates to management that expanding the
marketing toward performing groups and through direct distributors should create
high-profit-margin venues. The sale of a single tube of Luscious Lips wholesale
creates a greater profit margin than the sale of a can of FirePower 911(TM).
Luscious Lips is now manufactured for the company under a non-disclosure,
non-circumvention agreement by a private label color laboratory that gives the
company an exclusive product.

      The cosmetic industry is a 300 billion-dollar industry worldwide with Avon
being the largest, controlling only 7% of the market share. Therefore, no one
company can control the market. Prices are always stable while sales are always
consistent.

      The initially established dealer network attained a closing ratio of close
to 100% of the presentations being closed and purchasing the initial inventory
for a dealer. A dealer purchases at 50% off of retail and makes 100% profit on
resale. Our margin is at 106%. The direct sales test market directed to drill
teams and cheerleading groups produced a 100% closing ratio. There are 178,000
drill team participants in high schools in Texas each year. Couple this with the
middle and high school


                                       16
<PAGE>
cheerleaders, and the market is over 500,000 participants in Texas alone. We
introduced a targeted fund raising program especially designed for these groups
at the January meeting of the association. The response was better than
anticipated which has led us to begin to hire commissioned sales agents for four
specific territories in Texas to follow up on the sales leads from this one
meeting.

      In March 2002, we met with Reliant Interactive Media Group for the purpose
of taking three to four of our products on QVC and Home Shopping Network
International. Reliant is in the process of merging with Thane Distribution
Group. Therefore, our agreements have been executed with Thane. Of special note,
Reliant founders Kevin and Tim Harrington are noted developers of infomercials
and direct response television. They represent such notables as Bruce Jenner,
Kathy Smith, and Tony Little. The companies have agreed to place our products in
the shopping channel venues of QVC and develop 30-minute infomercials for these
products. One such product is FirePower 911(TM).

      During the fourth quarter of 2002, the first purchase order for the
Pannache Luscious Dust Brush were completed and shipped to QVC. Paula Parker
appeared on live programming on January 20, 2003, and February 10, 2003. The
product and presentation were moved to prime-time scheduling, and the last
presentation occurred on April 29, 2003. Also during the first quarter of 2003,
the Pannache Luscious Lips product kit and the Pannache Sunless Tanning Mist Kit
have been approved for programming at QVC. The tradename for Pannache Luscious
Lips will be changed to Pannache Pretty Pout Lip Collection. The collection will
consist of the original 16 lip colors, remover, and moisturizing gloss. Added to
the line will be a lip balm, lip volumizer, and lip exfoliator. All products are
to be introduced on QVC. The Sunless Tanning Mist collection will also contain a
body exfoliator and a specially designed loofah sponge.

      We are required to conduct a certain microbiological and dermatological
assay. These tests take six to eight weeks to complete. We can, after the
completion of these tests, complete the QA process in order to be scheduled for
programming. First programming is projected at the end of the second quarter of
2003.

      Lighthouse America, which had been distributing FirePower 911(TM) through
its internet distribution marketing program, TEAMFIRE, has decided to market the
Pannache Luscious Cosmetics line through its internet Multi-Level Marketing
(MLM) company, The Free Store. During July 2002, Lighthouse had 40,000
distributors. They have experienced exponential growth and by the end of January
2003, Lighthouse had 1,200,000 distributors. In October 2002, Lighthouse decided
to use Luscious Lips as the product to kick-off their cosmetic store within
their internet marketing program, The Free Store. The company is packaging
Luscious Lips under a private label and delivered the initial inventory purchase
to Lighthouse the first week of March 2003.

      OUTLOOK

      The statements made in this Outlook are based on current plans and
expectations. These statements are forward looking, and actual results may vary
considerably from those that are planned.

      Continuing to believe that, with the approval, listing and rating of
FIREPOWER 911(TM) as a fire extinguisher, a niche market has been created. This
is supported by actions taken by the USEPA, which


                                       17
<PAGE>
has been mentioned previously, and actions of the Connecticut State Fire
Marshal's Office and the California State Fire Marshal's Office. This year, the
additional enforcement by other state fire marshals' offices which we began
seeking began to be implemented.

      The formula for FIREPOWER 911(TM) and FLAMEOUT(R), is one of only a few
suppressing agents certified by the EPA as a replacement for the globally banned
fire agent, Halon 1211. Initially, the Connecticut State Fire Marshal's Office
notified us that our aerosol fire suppressant, FIREPOWER 911(TM), was to be
removed from the shelves of Home Depot, because it was not listed and rated as a
fire extinguisher. All other aerosol can products representing that they were
fire extinguishers were also to receive the same notification. While we were not
marketing FIREPOWER 911(TM) as a fire extinguisher at that time, the other
aerosol fire suppressors subject to this action were touting their products to
be fire extinguishers.

      Due to the capabilities of FLAMEOUT(R), we applied for the minimum fire
extinguisher rating in order to establish FIREPOWER 911(TM) as a fire
extinguisher and satisfy the State Fire Codes. The specific fire code is
ANSI/UL8 and ANSI/UL711, set forth in the NFPA Standard 10. NFPA 10 establishes
the requirements for listing and rating portable fire extinguishers.

      We completed the listing and rating requirements, placing FIREPOWER
911(TM) in a class of its own, the only listed and rated fire extinguisher in an
aerosol can available in the global marketplace. Subsequently, we received a
letter from the Connecticut State Fire Marshal's Office certifying that the
company's FIREPOWER 911(TM) had satisfied their fire code requirements.

      California has a unique legislative requirement in addition to the NFPA
and ANSI/UL standards for portable fire extinguishers. This is a new area,
termed Non-Halon Certification, and means that any portable fire extinguisher
whose marketing intent is directed to the residential and individual use market
must contain a formula that has been certified as Non-Halon. FLAMEOUT(R) is the
first of seven permanent listed and certified replacements for Halon 1211. It is
the only product that can meet this California requirement due to the type of
approval for FLAMEOUT(R). The approval is for residential as well as commercial
use. All other products are approved for commercial use only. Applied Research
Laboratories has completed the application process on behalf of our company,
meeting the California Non-Halon requirements.

      With these requirements, approvals, listings, certifications, and
confirmations, we have positioned FIREPOWER 911(TM) to become the only product
that can be sold in the retail residential market in California. The completion
of this certification will place FIREPOWER 911(TM) as the only product that has
survived this process, according to the California State Fire Marshal's Office.

      In other states where Non-Halon certification has not become effective to
date, there is still the NFPA 10 requirement that all aerosol cans must be
tested, listed, and rated as a fire extinguisher. FIREPOWER 911(TM) is the only
product that possesses the validated listing and rating for an aerosol fire
extinguisher. Last year, we sought additional enforcement action when we became
aware of "copycat" products of FIREPOWER 911(TM). Mass merchandisers and direct
response television companies were forced to remove products from their
programs.


                                       18
<PAGE>
      Several issues have slowed down the marketing of FIREPOWER 911(TM). Its
formula is FLAMEOUT(R), a technology for fire suppression, not merely soap in an
aerosol can. A specific type of aluminum is required for the container to meet
the ANSI/UL8 portion of the validation and listing tests. The size and type of
can required to hold the FLAMEOUT(R) by the very rigid standard for fire
extinguishers is not manufactured in the United States. We must bring the empty
shells in from Madrid, Spain.

      These production issues, plus the manufacturing efforts to produce a
product with a five-year shelf life, and royalties paid to the testing
laboratory calculated on each unit are examples of the unique requirements for
the pricing of our fire extinguishers.

      When attempts to market a product like FIREPOWER 911(TM) were met with
"copycats" which have not passed the scrutiny of the validations, listings and
ratings, an education issue is created which must be carried out at the buyers'
level. For this education effort to have meaningful effect, enforcement action
is required by the state fire marshals' offices. The copycat products have been
met with enforcement actions which we were seeking and are almost non-existent.
These enforcement actions are public record.

      Presenting the information in this format last year, we negotiated an
agreement with a national marketing and merchandising company, Triple S
Marketing, that places the products they represent into two of the largest home
building products stores in the country. The senior buyer for one of these
chains of stores has approved FIREPOWER 911(TM). A redesign of the home safety
products section began in June 2001. Currently, FIREPOWER 911(TM) is scheduled
to appear in these stores but we do not have a firm date. Management met for
line review at Lowe's headquarters in North Carolina the first week of January
2002. FirePower 911(TM) has been approved for test marketing. During August
2002, we negotiated an agreement for George Foreman to be the national
spokesperson for FirePower 911(TM). Management notified Lowe's in September 2002
of its desire to put off the roll-out at Lowe's. We requested that the Lowe's
program for National Fire Prevention be cancelled due to a pre-emptive action
which could have short circuited the longer range and much larger scale program
for marketing FirePower 911(TM).

      We have executed an agreement for the sale of FIREPOWER 911(TM) with
Lighthouse America and its direct sales company TEAMFIRE. TEAMFIRE previously
had 8,000 direct dealers selling a portable fire product that was classified as
a portable fire extinguisher by State Fire Marshals. TEAMFIRE has a great
appreciation for FIREPOWER 911(TM) because of its experience with the fire
marshals' offices. With FIREPOWER 911(TM) which is the only rated and validated
portable fire extinguisher in an aerosol can in the world, TEAMFIRE feels that
it will quickly begin to move FIREPOWER 911(TM) through its established network
of direct dealers. Before regulatory measures halted TEAMFIRE's selling,
previous sales were 1.6 million dollars from January through August, 2000.
Lighthouse ordered its first pallet of FIREPOWER 911(TM) in November 2001. It
began rebuilding its former distributor base, which previously had been selling
fire extinguishers. FirePower 911(TM) will be moved into Lighthouse America's
Free Store internet MLM program in 2003.

      In 1998 we executed a non-circumvention, non-disclosure agreement with The
Clorox


                                       19
<PAGE>
Corporation reflecting Clorox's possibly marketing FirePower 911(TM) under a
private label throughout its nationwide marketing network. By 2000, further
examinations were conducted and management met with legal, branding, marketing,
pricing and research/development representation of our potential new client. In
January 2003, we met with Clorox and were presented a proposed licensing and
manufacturing agreement whereby we would license, for the retail consumer
market, the technology, production rights and tradename for FirePower 911(TM) to
Clorox. On March 26, 2003, representatives from Clorox made a formal proposal to
us in Longview, Texas. The proposal was presented to the Board of Directors on
March 27, 2003. Several key issues must be negotiated specifically involving the
proprietary formulation of FirePower 911(TM) - FlameOut(R). Management presented
a response to Clorox based upon the combined input from the Board of Directors.
The Clorox proposal provided for cash, up front, for the purchase of the
licensing rights and a continuing royalty to be paid on all sales. We have
submitted a counter offer which included additional cash up-front, higher
royalties, Summit's maintaining QVC and a Canadian distributor for FirePower,
and our maintaining the special additive package to the FlameOut(R) formulation
as proprietary. Management and Clorox conducted continued negotiations regarding
our counter proposal on April 16, 2003. We will disclose further details later
during the second quarter of 2003.

      FLAMEOUT(R) has been submitted to the United States Forestry Service
through its technology development program in order to satisfy the requirements
for qualification testing as a Wildland Fire Chemical. This test protocol will
be ongoing for eighteen months. The Forestry Service requested and we supplied
the actual test product in order to complete the protocol through our Canadian
Strategic Alliance Partner, Mark Hays dba 614751 Alberta Limited. The aerial
fire fighting company Pro Air, and the Canadian Forestry Service are following
the U. S. Forestry Service's test. Feedback is that FLAMEOUT(R) is performing
very favorably. The reports received by the Company are that the Canadian
Forestry will accept the U. S. Forestry approval for immediate sales in Canada.
The Company has been notified of pending orders at Pro Air. During the fourth
quarter of 2002, the toxicity and corrosive tests and storage stability test
were successfully completed.

      FLAMEOUT(R) will be tested as a wetting agent and fire suppression foam.
When approved, FLAMEOUT(R) can be used in catastrophic wildfires that occur
every year. Our product, in unofficial tests, has outperformed every product
with which it has been compared. Management knows this first-hand from being on
the actual fire lines in Florida. This should become a large venue for product
sales beginning with the 2003 fire season. The Forestry Service informed us by
our project manager of completion of all test requirements. The final review of
the Material Safety Data Sheet (MSDS) occurred during the last week of April. We
received the listing of FlameOut(R) with the QPL (Quality Products Listing) on
May 5, 2003.

      We have been in negotiations with QVC for the sale of FIREPOWER 911(TM)
since October 2000. FIREPOWER 911(TM)'s front runner, Chief's Choice, was the
initial aerosol fire suppressant sold on QVC. While FIREPOWER 911(TM) was going
through the validation and listing process at Applied Research Laboratories,
"ARL," QVC was notified of the NFPA standards requirement held by State Fire
Marshals' offices and substituted another "copycat" product for Chief's Choice,
which also violated the requirements for which we had chosen to qualify in order
to be in compliance in all 50 states. Last year, this "copycat" product was
removed from programming at QVC, due to action taken by the Texas State


                                       20
<PAGE>
Fire Marshal's office, and we were notified that the category buyers at QVC had
approved FIREPOWER 911(TM) one-liter rated fire extinguisher for purchase. We
were told that once the legal department was cleared, scheduling of programming
and initial purchases would begin. During April 2001, we were notified that the
QVC legal department would be requesting a letter of verification that FIREPOWER
911(TM) is legal in all 50 states. We are awaiting the official request from
QVC's legal department. However, a letter stating this verification is currently
posted on our web site, www.seci-us.com or www.summitenvironmental.com.
Management met with the buyers at QVC in February 2002, and FIREPOWER 911(TM)
was approved for programming. QVC viewed FirePower 911(TM) as possibly requiring
hazardous material classification in order to be shipped by UPS. We took
exception due to the fact that we have been shipping FirePower 911(TM) direct
via UPS for five years. FirePower 911(TM) is appropriately classified as ORM-D
Consumer Commodity Aerosol non-flammable as is thus excerpted from the HazMat
classifications. In order to resolve the issue, we had to request UPS support
our position. They provided us with two letters in an attempt to satisfy the QVC
requirements. After receiving said confirmation, QVC requested that we obtain a
confirmation of classification from the United States Department of
Transportation. On February 21, 2003, we received the confirmation. The buyer at
QVC has informed us that FirePower 911(TM) will be submitted for approval as a
TSV (Today's Special Value) programming. Due to the types of product package for
the QVC programming (a two-can unit), we must resubmit a package containing two
cans in the package for the UPS drop test for Quality Assurance at QVC. We have
already passed the drop test with a single can in a package. However, since the
purchase order from QVC will be for a two-can unit, we must complete the drop
test with the package as it will be shipped. We have been informed by the buyer
at QVC that the purchase order will be issued immediately upon successful
completion of the new drop test. The drop test package was submitted the week of
April 21, 2003. We anticipate the completion of the drop test before the end of
May 2003. We have proposed to QVC an initial two-program airing for
FirePower(TM) prior to any TSV promotion.

      International marketing agreements continue to be negotiated and executed
this year. A key element of these agreements is the revenue sharing clause that
provides us profit sharing from the tools, devices or mechanisms into which
FLAMEOUT(R) is introduced for resale. Global agreements reached during the year
agreements in Belize, Guatemala, Nicaragua, Honduras, El Salvador, Panama, Costa
Rica, New Zealand, Australia and Mexico. We have been assisting our distributor
partners with necessary testing, listing, ratings and certification in order to
complete the registration process in each of these countries.

      During February 2001, we sold our first order of FIREPOWER 911(TM) to our
distributor, Techno-Supplies, in Norway. During 2002, Techno-Supplies continued
to order FLAMEOUT(R) for Exxon of Norway, and other Black Sea petroleum
companies. Tests results have been favorable and are concluding.

      FLAMEOUT(R)'s formal certification with the government of Brazil is
ongoing. Sales orders are already in place through strategic alliance partner,
MPI, and are awaiting release of this product's registration number. The
collapse of Argentina's monetary system has stalled our progress. With the
reclassification of Argentina's currency by the IMF, we will begin to utilize
Ex-Im Bank in 2003.

      A company, Just-In Case Fire Ltd., manufacturing a home fire extinguishing
unit in Canada has


                                       21
<PAGE>
approved FLAMEOUT(R) over fifteen other products as the product of choice to be
utilized in its system. Just-In Case Fire, Ltd. has completed the securing of
five separate patents on the system. Summit will be supplying FLAMEOUT(R) for
the Canadian sales and will handle distribution of the units through some of our
other strategic alliance partners such as those in Australia, Mexico, Norway,
and South America. Some Fire Caddy sales were made by Summit to Tecno-Supplies
in Norway during 2002. The first orders of FLAMEOUT(R) were shipped in January
2002. Subsequent orders shipped in 2002. Orders have continued on a monthly
basis in 2003. This agreement has resulted in global sales where the Fire Caddy
will only be manufactured utilizing FlameOut(R). We receive a royalty on each
unit manufactured by Just-In Case Fire. During November 2002, we and Just-In
Case Fire participated in a FEMA/Homeland Security demonstration using
FlameOut(R) and the Fire Caddy(TM) in extinguishing a mock plane crash which was
part of an overall simulation of how to handle potential terrorist attacks.

      During August 2002, we received the endorsement of FlameOut(R) by
Bituminous Insurance Company for usage of our product along with specially
manufactured 2 1/2 gallon and/or 6 Liter fire extinguishers on highly
specialized and expensive logging equipment. Bituminous Insurance began in
January 2003 notifying insureds of non-renewal for equipment coverage if the
insured failed to furnish FlameOut(R) and its related extinguishers on the
insured's equipment. A second insurance company came along with a similar
endorsement during November 2002. Next, direct underwriters for Lloyd's of
London began to offer 25% discount on premiums if our product was included. In
March 2003, Northeast Mutual Insurance Company, another logging company insurer
endorsed FlameOut(R) allowing 15% premium discounts. We have been able to
utilize some of the insurance agents as dealers to sell our products since they
are the contact delivering the non-renewal notice to their insureds. Where the
agents do not participate, we are offering a direct sales program from the home
office.

      Our test for securing the military specification number MIL-PRF-85704C,
which will enable the company's ULTIMATE CLEAN 668(TM) jet engine cleaner to be
listed with the Department of Defense, Quality Products Listing, has proceeded
into classification tests for Type III concentrates and Type II ready-to-use.
The testing for this non-corrosive approval has resulted in some adjustments to
the formula for the test on ceramic and acrylic finishes. This test is also
being done in the "water soluble" category. To our knowledge, there are no other
products that are aqueous-based which can accomplish the cleaning requirements
of the test protocol or the actual engine cleanings. The expanding from the
initial Type III approvals to include the two categories of Type II greatly
increased the market potential for ULTIMATE CLEAN 668(TM). Technical testing
confirmation for protocols was received in May 2001. We are now awaiting a
slotting appointment for the completion of the physical application test in
cleaning test engines. Through our strategic alliance partner, International
Aero, we have initial sales to be made to major airlines such as United,
Continental, Delta, Northwest and Eastern airlines. The recent increase in jet
fuel costs has heightened the airlines' interest in ULTIMATE CLEAN 668(TM).
During September, 2001, formal application for the physical test was submitted
to and accepted by the United States Navy. Progress has been made on the
accelerated storage stability final phase of the testing. We are continuing to
try to satisfy very finite sodium and potassium requirements.

      Our development of ULTIMATE ABSORB 1103(TM) has led to our negotiating the
purchase of the patents, formulas and intellectual property rights. Of special
importance to this agreement is the completion of the never-before-issued EPA
Landfill Stamp approval. ULTIMATE ABSORB 1103(TM) already


                                       22
<PAGE>
has EPA (as non-toxic), USDA, FDA, WHO and California Title 22 approvals.
However, the EPA Landfill Stamp allows for encapsulated and absorbed materials
to be deposited in landfills anywhere. On April 2, 2001, we were notified that
we had successfully stabilized heavy metals in the hazardous materials
containment portion of this testing. No other product has ever completed this
portion of the test protocol. We have introduced the absorbent in South America,
Scandinavia, Europe and in several industries within the U.S. Ultimate Absorb
1103(TM) has been submitted for vendor application approval to Ace Hardware and
Lowe's Home Improvement stores.

COSMETICS

      Successful test markets of Pannache Cosmetics for direct dealer sales and
shopping channel sales have shown us two high volume markets. Both test markets
provided nearly 100% closing ratios. The profit margins are greater than any of
our other products whether sold wholesale or direct to the consumer from us. We
have taken steps to begin manufacturing all of our products and control our
formulations through non-disclosure agreements. Our line now includes over 100
products. 2003 will see the full development of a dealer sales network.

      New innovative fund raising programs were kicked off in January selling
Luscious Lips through high school drill teams, cheerleading groups and twirling
groups. We will also be attending a national show each month promoting the
entire line and securing new dealers.

      Negotiations for Luscious Lips and Luscious Dust Brushes were completed
during first quarter 2002 on home shopping channels through Reliant Interactive
Media Group. The Luscious Dust Brush was approved for programming at QVC. The
first sale programming occurred on January 20, 2003. A second programming
occurred on February 10, 2003. The third program occurred on April 29, 2003. Our
product was the Number Two revenue generator for the hour long "Beauty
Solutions" show. Additionally we have had Luscious Lips approved for programming
on QVC. We anticipate first programming during the third quarter of 2003. We
will be changing the name of the lip product to Pretty Pout Lip Collection as we
will be developing a lip exfoliator, lip balm, and lip volumizer for
programming. Additionally, the Pannache Sunless Tanning Mist Collection has also
been approved at QVC. The Sunless Tanning Mist will be packaged with a body
exfoliator and loofah sponge to make the product kit. We anticipate programming
during the second quarter for this new product presentation.

      Our future results of operations and the other forward-looking statements
contained in this Outlook involve a number of risks and uncertainties. Among the
factors that could cause actual results to differ materially are the following:
our inability to obtain needed additional capital, loss of personnel -
particularly chief executive officer B. Keith Parker - as a result of accident
or for health reasons, interruptions in the supply of inventory from
manufacturers of the inventory, the development of a competing fire suppressant
by a well-capitalized competitor that either is able to develop a new product
with the same attributes as our fire suppressant or is able to discover the
additives to our fire suppressant that give it its unique and superior
qualities, and an accident involving life or serious bodily harm that fairly or
unfairly would bring into question the safety of using our fire suppressant
products.

ITEM 3. CONTROLS AND PROCEDURES


                                       23
<PAGE>
      Evaluation of disclosure controls and procedures. We maintain controls and
procedures designed to ensure that information required to be disclosed in this
report is recorded, processed, accumulated and communicated to our management,
including our chief executive officer and our chief financial officer, to allow
timely decisions regarding the required disclosure. Within the 90 days prior to
the filing date of this report, our management, with the participation of our
chief executive officer and chief financial officer, carried out an evaluation
of the effectiveness of the design and operation of these disclosure controls
and procedures. Our chief executive officer and chief financial officer
concluded, as of fifteen days prior to the filing date of this report, that
these disclosure controls and procedures are effective.

      Changes in internal controls. Subsequent to the date of the above
evaluation, we made no significant changes in our internal controls or in other
factors that could significantly affect these controls, nor did we take any
corrective action, as the evaluation revealed no significant deficiencies or
material weaknesses.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)   EXHIBITS

      The following exhibits are filed, by incorporation by reference, as part
of this Form 10-QSB:

      2.1    -    Agreement of Merger of July 14, 1998, between Summit
                  Environmental Corporation, Inc. and Summit Technologies,
                  Inc.**

      3.1    -    Articles of Incorporation of Summit Environmental
                  Corporation, Inc.*

      3.1.1  -    Amendment to Articles of Incorporation of Summit
                  Environmental Corporation, Inc.**

      3.2    -    Bylaws of Summit Environmental Corporation, Inc.*

      10.1   -    1998 Stock Option Plan adopted by Summit Environmental
                  Corporation, Inc.*

      10.3   -    Limited Exclusive Marketing Bilateral Agreement Between
                  Moonlighting Distribution Corporation-USA and Summit
                  Technologies, Inc. (Poder Sexual, Ultimate Stressex and/or
                  Poder 24)*

      10.4   -    Limited Exclusive Marketing Bilateral Agreement among B.
                  Keith Parker, individually and as Chairman of the Board and
                  CEO of Moonlighting Distribution Corporation-USA, d/b/a
                  Moonlighting International, and Summit Technologies, Inc.
                  (FireKare, FIREPOWER 911(TM), Super Cold Fire, and FLAME
                  OUT(R))*

      10.6   -    Exclusive Marketing Bilateral Agreement between Moonlighting
                  Distribution Corporation-USA and Summit Technologies, Inc.
                  (Trim-Away)**

      10.7   -    November 2, 1998 Amendment to April 27, 1998 Letter of
                  Intent between BioGenesis Enterprises, Inc. and Summit
                  Technologies, Inc., and April 27, 1998 Letter of Intent.***

      99     -    Certification of Chief Executive Officer pursuant to 18
                  U.S.C. Section 1350, as adopted


                                       24
<PAGE>
                  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

      99.1   -    Certification of Chief Financial Officer pursuant to 18
                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

      *           Previously filed with Form SB-2; Commission File No. 333-48675
                  incorporated herein.

      **          Previously filed with Amendment No. 1 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.

      ***         Previously filed with Amendment No. 5 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.

(b)   FORMS 8-K

      None


                                       25
<PAGE>
                                   SIGNATURES

      Pursuant to the requirements of the Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.

Date: May 14, 2003

                                        Summit Environmental Corporation, Inc.


                                        By /s/ B. Keith Parker
                                           -------------------------------------
                                           B. Keith Parker, Chief Executive
                                           Officer


                                       26
<PAGE>
                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)

I, B. Keith Parker, Chief Executive Officer of the registrant, certify that:

      1. I have reviewed this quarterly report on Form 10-QSB of Summit
Environmental Corporation, Inc.;

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

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

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

            a. designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

            b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

            c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

      5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

            a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

            b. any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

      6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date: May 14, 2003                      /s/ B. Keith Parker
                                        ----------------------------------------
                                        B. Keith Parker
                                        Chief Executive Officer


                                       27
<PAGE>
                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)

I, Chris Dellinges, Chief Financial Officer of the registrant, certify that:

      1. I have reviewed this quarterly report on Form 10-QSB of Summit
Environmental Corporation, Inc.;

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

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

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

            a. designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

            b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

            c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

      5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

            a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

            b. any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

      6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date:  May 14, 2003


                                        /s/ Chris Dellinges
                                        ----------------------------------------
                                        Chris Dellinges
                                        Chief Financial Officer


                                       28
<PAGE>
                     SUMMIT ENVIRONMENTAL CORPORATION, INC.
                          Commission File No. 333-48659

                                  EXHIBIT INDEX

                                   FORM 10-QSB
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

<TABLE>
<CAPTION>
Exhibit No.       Description
-----------       -----------
<S>               <C>
   2.1    -       Agreement of Merger of July 14, 1998, between Summit
                  Environmental Corporation, Inc. and Summit Technologies,
                  Inc.**

   3.1    -       Articles of Incorporation of Summit Environmental Corporation,
                  Inc.*

   3.1.1  -       Amendment to Articles of Incorporation of Summit Environmental
                  Corporation, Inc.**

   3.2    -       Bylaws of Summit Environmental Corporation, Inc.*

   10.1   -       1998 Stock Option Plan adopted by Summit Environmental
                  Corporation, Inc.*

   10.3   -       Limited Exclusive Marketing Bilateral Agreement Between
                  Moonlighting Distribution Corporation-USA and Summit
                  Technologies, Inc. (Poder Sexual, Ultimate Stressex and/or
                  Poder 24)*

   10.4   -       Limited Exclusive Marketing Bilateral Agreement among B. Keith
                  Parker, individually and as Chairman of the Board and CEO of
                  Moonlighting Distribution Corporation-USA, d/b/a Moonlighting
                  International, and Summit Technologies, Inc. (FireKare,
                  FIREPOWER 911(TM), Super Cold Fire, and FLAME OUT(R))*

   10.6   -       Exclusive Marketing Bilateral Agreement between Moonlighting
                  Distribution Corporation-USA and Summit Technologies, Inc.
                  (Trim-Away)**

   10.7   -       November 2, 1998 Amendment to April 27, 1998 Letter of Intent
                  between BioGenesis Enterprises, Inc. and Summit Technologies,
                  Inc., and April 27, 1998 Letter of Intent.***

   99     -       Certification of Chief Executive Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

   99.1   -       Certification of Chief Financial Officer pursuant to 18 U.S.C.
                  Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.
</TABLE>

   *              Previously filed with Form SB-2; Commission File No. 333-48675
                  incorporated herein.

   **             Previously filed with Amendment No. 1 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.

   ***            Previously filed with Amendment No. 5 to Form SB-2; Commission
                  File No. 333-48675 incorporated herein.


                                       29