<PAGE>






































                 U. S. Securities and Exchange Commission
                          Washington, D. C. 20549

                                FORM 10-QSB

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the quarterly period ended July 31, 1999

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from ____________  to____________

                        Commission File No. 0-23995

                        SIERRA HOLDINGS GROUP, INC.
                        ---------------------------
              (Name of Small Business Issuer in its Charter)

          NEVADA                             87-0576421
          ------                             ----------
(State or Other Jurisdiction of              (I.R.S. Employer I.D. No.)
incorporation or organization)

                            4843 Wallace Lane
                        Salt Lake City, Utah 84117
                        ---------------------------
                 (Address of Principal Executive offices)

                 Issuer's Telephone Number: (801) 278-2805

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

(1) Yes  X  No                (2) Yes X     No
        ---   ---                    ---      ---
<PAGE>

            APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                PROCEEDINGS DURING THE PRECEDING FIVE YEARS

                              Not applicable.



                   APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date:

                              July 31, 1999

                                 10,076,921

                      PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

          The Financial Statements of the Registrant required to be filed
with this 10-QSB Quarterly Report were prepared by management, and commence of
the following page, together with Related Notes. In the opinion of management,
the Financial Statements fairly present the financial condition of the
Registrant.
<PAGE>
                  SIERRA HOLDINGS GROUP, INC.
                 (A Development Stage Company)

                      FINANCIAL STATEMENTS

               July 31, 1999 and October 31, 1998
<TABLE>
SIERRA HOLDINGS GROUP, INC.
(A Development Stage Company)
Balance Sheets
<CAPTION>

                                 ASSETS
                                               July 31,      October 31,
                                                 1999            1998
                                               (Unaudited)
<S>                                          <C>            <C>
CURRENT ASSETS
 Cash                                    $              1,509 $         1,156

  Total Current Assets                                  1,509           1,156

  TOTAL ASSETS                           $              1,509 $         1,156

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

 Accounts payable                        $                538 $           615
 Accrued interest payable                               2,185             575
 Shareholder loan payable (Note 2)                     23,000          10,000

  Total Liabilities                                    25,723          11,190

STOCKHOLDERS' EQUITY (DEFICIT)

 Common stock: 100,000,000 shares authorized of
  $0.001 par value, 10,076,921 and 9,326,744 shares
  issued and outstanding, respectively                 10,077           9,327
 Capital in excess of par value                        85,700          78,950
 Deficit accumulated during the development stage    (119,991)        (98,311)

  Total Stockholders' Equity (Deficit)                (24,214)        (10,034)

  TOTAL LIABILITIES, AND STOCKHOLDERS'
   EQUITY (DEFICIT)                      $              1,509 $         1,156
</TABLE>
<TABLE>
                  SIERRA HOLDINGS GROUP, INC.
                 (A Development Stage Company)
                    Statements of Operations
                          (Unaudited)
<CAPTION>
                                                                     From
                                                                 Inception on
                         For the            For the              December 26,
                     Nine Months Ended  Three Months Ended       1986 Through
                         July 31,           July 31,               July 31,
                     1999        1998     1999        1998           1999
<S>                 <C>          <C>       <C>       <C>        <C>
REVENUES            $       -    $     -    $     -    $     -   $   -

EXPENSES                (21,680)   (31,837)    (1,090)   (3,685)   (119,991)

NET LOSS            $   (21,680) $ (31,837) $  (1,090) $ (3,685) $ (119,991)

LOSS PER SHARE      $     (0.00) $   (0.00) $   (0.00) $  (0.00)
</TABLE>
<TABLE>
                     SIERRA HOLDINGS GROUP, INC.
                    (A Development Stage Company)
             Statements of Stockholders' Equity (Deficit)
<CAPTION>
                                                            Deficit
                                                          Accumulated
                                              Capital in   During the
                             Common Stock      Excess of  Development
                         Shares      Amount    Par Value     Stage
<S>                        <C>      <C>        <C>        <C>
Balance at inception
 on December 26, 1986         -     $    -     $  -       $  -

Shares issued for cash
 at $7.50 per share           667        1      4,999        -

Partial liquidating
 dividend - April 17, 1987    -          -     (2,484)       -

Net loss for the year ended
 October 31, 1987             -          -        -         (910)

Balance, October 31, 1987     667        1      2,515       (910)

Net loss for the year ended
 October 31, 1988             -          -        -       (1,701)

Balance, October 31, 1988     667        1      2,515     (2,611)

Net income for the year ended
 October 31, 1989             -          -        -          251

Balance, October 31, 1989     667        1      2,515     (2,360)

Contribution and cancellation
 of shares by officers of the
 Company                     (465)       -        -          -

Shares issued for services
 valued at $3.00 per share  1,697        2      5,088        -

Expenses paid on behalf of
 the Company by a
 shareholder                  -          -        304        -

Net loss for the year ended
 October 31, 1990             -          -        -       (5,650)

Balance, October 31, 1990   1,899        3      7,907     (8,010)

Net loss for the year ended
 October 31, 1991             -          -        -         (100)

Balance,  October 31, 1991  1,899   $    3  $   7,907   $ (8,110)

Shares issued for services
 valued at $3.00 per share  2,900        3      8,697        -

Shares issued in
 acquisition of Nature
 Talks Corp. valued at
 $3.00 per share            3,333        3      9,997        -

Net loss for the year ended
 October 31, 1992             -          -        -      (19,275)

Balance, October 31, 1992   8,132        9     26,601    (27,385)

Net loss for the year ended
 October 31, 1993             -          -        -         (100)

Balance, October 31, 1993   8,132        9     26,601    (27,485)

Net loss for the year ended
 October 31, 1994             -          -        -         (100)

Balance, October 31, 1994   8,132        9     26,601    (27,585)

Net loss for the year ended
 October 31, 1995             -          -        -         (107)

Balance, October 31, 1995   8,132        9     26,601    (27,692)

Shares issued for services
 valued at $3.00 per share 10,000       10     29,990        -

Expenses paid on behalf of
 the company by a shareholder -          -        667        -

Net loss for the year ended
 October 31, 1996             -          -        -      (30,160)

Balance, October 31, 1996  18,132       19     57,258    (57,852)

Net loss for the year ended
 October 31, 1997             -          -        -         (114)

Balance, October 31, 1997  18,132    $  19  $  57,258   $(57,966)

Issuance of fractional
 shares for 1-for-300
 reverse stock split        7,375        7         (7)       -

Shares issued for cash
 at $0.01 per share       300,000      300      2,700        -

Issuance of fractional
 shares for 1-for-10
 reverse stock split        1,237        1         (1)       -

Shares issued for
 services valued at
 $0.003 per share       6,000,000    6,000     12,000        -

Shares issued for cash
 at approximately
 $0.003 per share       3,000,000    3,000      7,000        -

Net loss for the year ended
 October 31, 1998          -           -          -      (40,345)

Balance,
 October 31, 1998       9,326,744    9,327     78,950    (98,311)

Issuance of fractional
shares for 1-for-10
reverse stock split           177      -          -          -

Shares issued for
services valued at par
$0.01 per share
(unaudited)               750,000      750      6,750        -

Net loss for the nine
months ended July 31,
1999 (unaudited)              -        -          -      (21,680)

Balance, July 31,
1999 (unaudited)       10,076,921 $ 10,077  $  85,700 $ (119,991)
</TABLE>
<TABLE>
                     SIERRA HOLDINGS GROUP, INC.
                    (A Development Stage Company)
                       Statements of Cash Flows
                             (Unaudited)
<CAPTION>
                                                                     From
                                                                 Inception on
                              For the            For the         December 26,
                          Nine Months Ended  Three Months Ended  1986 Through
                              July 31,           July 31,          July 31,
                          1999        1998     1999        1998      1999
<S>                      <C>          <C>       <C>       <C>     <C>
CASH FLOWS FROM OPERATING
 ACTIVITIES

  Net loss from
   discontinued operations $ (21,680) $ (31,837) $(1,090) $(3,685) $ (119,991)
  Organization costs             -          -        -        -        (1,065)
  Depreciation and amortization  -          -        -        -         3,496
  Stock issued for services    7,500     18,000      -        -        79,290
  Increase (decrease) in
   accounts payable              (76)       261     (569)    (675)        538
  Increase (decrease) in taxes
    payable                      -         (200)     -        -           -

  Increase (decrease) in
   interest payable            1,610        300      690      300       2,185

     Cash Provided (Used) by
     Operating Activities    (12,646)   (13,476)    (969)  (4,060)    (35,547)

Cash Flows from Investing
 Activities:

  Purchase of equipment          -          -        -        -        (4,887)

     Cash Provided (Used) by
     Investing Activities        -          -        -        -        (4,887)

Cash Flows from Financing
 Activities:

  Disbursement of partial
   liquidating dividend          -          -        -        -        (2,484)
  Capital contributed by
   stockholders                  -          -        -        -           971
  Non-cash sale of video
   cassettes                     -          -        -        -          (369)
  Issuance of common stock       -       13,000      -        -        18,000
  Proceeds of loan from
   shareholder                13,000     10,000      -        -        25,825

     Cash Provided (Used) by
     Financing Activities    $13,000    $23,000 $    -   $    -     $  41,943

NET INCREASE (DECREASE)
 IN CASH                     $   354    $ 9,524 $   (969)$ (4,060)  $   1,509

CASH AT BEGINNING OF
 PERIOD                        1,155        -      2,478   13,584         -

CASH AT END OF PERIOD       $  1,509    $ 9,524 $  1,509 $  9,524   $   1,509

Cash Payments For:

  Income taxes              $    -      $   -   $    -   $    -     $    -
  Interest                  $    -      $    75 $    -   $    -     $     75

Non-Cash Financing Activities:

  Exchange of video cassettes
   in lieu of note payable  $    -      $   -   $    -   $    -     $    369
</TABLE>
                          SIERRA HOLDINGS GROUP, INC.
                         (A Development Stage Company)
                Notes to the Financial Statements
                July 31, 1999 and October 31, 1998

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  a.  Organization

  The financial statements presented are those of Sierra Holdings
  Group, Inc. (formerly Sierra International, Inc.)  The Company was
  incorporated as Celebrity Videos, Inc. under the laws of the State
  of Utah on December 26, 1986.  On April 17, 1987, the Company was
  "spun off" of Loki Holding Corporation (formerly Dynamic Video,
  Inc.) in a partial liquidating dividend.  On July 18, 1990, the
  Company changed its name to Vegas Gaming Services, Inc.  On April
  15, 1992, the Company changed its name to Nature Talks
  Corporation.

  At a meeting on November 18, 1997, the shareholders approved a
  proposal to reverse stock split the outstanding common shares at
  a rate of 1 share for every 300 shares outstanding, with no
  stockholders' holdings to be reduced below 50 shares as a result
  of such reverse split.  All references to shares outstanding and
  earnings per share have been retroactively restated to reflect the
  reverse stock split.  On November 26, 1997, the Company changed
  its name to Sierra International, Inc.

  At a meeting on February 9, 1998, the shareholders approved a
  proposal to reverse stock split the outstanding common shares at
  a rate of 1 share for every 10 shares outstanding, with no
  stockholders' holdings to be reduced below 50 shares as a result
  of such reverse split.  All references to shares outstanding and
  earnings per share have been retroactively restated to reflect the
  reverse stock split.

  On February 13, 1998, Sierra International, Inc. merged with
  Sierra Holdings Group, Inc. changing the Company's state of
  incorporation from Utah to Nevada and its name to Sierra Holdings
  Group, Inc. (SHG).  Accordingly, SHG became the continuing entity
  for accounting purposes, and the transaction was accounted for as
  a recapitalization of the Company with no adjustment to the basis
  of the Company's assets or liabilities assumed by SHG.  For legal
  purposes, SHG was the surviving entity.

  b.  Accounting Method

  The Company's financial statements are prepared using the accrual
  method of accounting.  The Company has adopted an October 31 year
  end.

  c.  Basic Loss Per Share

  The computations of basic loss per share of common stock are based
  on the weighted average number of shares issued and outstanding at
  the date of the financial statements.

  d.  Use of Estimates

  The preparation of financial statements in conformity with
  generally accepted accounting principles requires management to
  make estimates and assumptions that affect the reported amounts of
  assets and liabilities and disclosure of contingent assets and
  liabilities at the date of the financial statement and the
  reported amounts of revenues and expenses during the reporting
  period.  Actual results could differ from those estimates.

  e.  Cash Equivalents

  The Company considers all highly liquid investments with a
  maturity of three months or less when purchased to be cash
  equivalents.

  f.  Unaudited Financial Statements

  The accompanying unaudited financial statements include all of the
  adjustments which, in the opinion of management, are necessary for
  a fair presentation.  Such adjustments are of a normal, recurring
  nature.

NOTE 2 -  RELATED PARTY TRANSACTIONS

  A shareholder loaned the Company $23,000 to cover operating
  expenses.  The note payable is unsecured, due on demand and
  accrues interest at 12% annually.  Accrued interest payable at
  July 31, 1999 and October 31, 1998 was $2,185 and $575,
  respectively.

NOTE 3 -  GOING CONCERN

  The Company's financial statements are prepared using generally
  accepted accounting principles applicable to a going concern which
  contemplates the realization of assets and liquidation of
  liabilities in the normal course of business.  However, the
  Company does not have significant cash or other material assets,
  nor does it have an established source of revenues sufficient to
  cover its operating costs and to allow it to continue as a going
  concern.  It is the intent of the Company to seek a merger with an
  existing, operating company.  In the interim, shareholders of the
  Company have committed to meeting its minimal operating expenses.

NOTE 4 -  ISSUANCE OF STOCK

  During the year ended October 31, 1987, the Company issued 667
  shares of common stock for $5,000 cash.

  During the year ended October 31, 1990, shareholders of the
  Company contributed 465 shares of common stock back to the
  Company.  In addition, 1,697 shares of common stock were issued
  for services valued at an average price of $3.00 per share.

  During the year ended October 31, 1992, the Company issued 2,900
  shares of common stock for services valued at an average price of
  $3.00 per share.  In addition, the Company issued 3,333 shares of
  common stock in the acquisition of Nature Talks Corporation.

  During the year ended October 31, 1996, the Company issued 10,000
  shares of common stock for services valued at $3.00 per share.

  During the year ended October 31, 1998, the Company issued 7,375
  fractional shares of common stock as a result of the 300-to-1
  reverse stock split.  The Company also issued 300,000 post reverse
  stock split shares of common stock for $3,000 cash.  In addition,
  the Company issued 1,237 fractional shares of common stock as a
  result of the 10-to-1 reverse stock split.  Finally, 6,000,000
  post-split shares of common stock were issued for services valued
  at $18,000 and 3,000,000 post-split shares of common stock were
  issued for $10,000 cash.
<PAGE>

Item 2.   Management's Discussion and Analysis or Plan of operation.

Plan of Operation.

          The Company has not engaged in any material operations since its
inception or during the quarterly period ended July 31, 1999. During this
period, the Company received no revenues. During the same period, total
expenses were $1,090; the Company incurred a loss from operations of
($1,090) for the three months ended July 31, 1999.  For the six months ended
July 31, 1999, the Company received no revenues with total expenses of
$21,680 for a net loss of ($21,680).

          The Company's plan of operation for the next 12 months is to
continue to seek the acquisition of assets, properties or businesses that may
benefit the Company and its stockholders. Management anticipates that to
achieve any such acquisition, the Company will issue shares of its common
stock as the sole consideration for such acquisition.

          During the next 12 months, the Company's only foreseeable cash
requirements will relate to maintaining the Company in good standing or the
payment of expenses associated with reviewing or investigating any potential
business venture. Management expects that the Company's cash on hand of $1,509
at July 31, 1999, will not be sufficient to meet these requirements. If
additional moneys are needed, they may be advanced by management or principal
stockholders as loans to the Company. Because the Company has not identified
any such venture as of the date of this Report, it is impossible to predict
the amount of any such loan. However, any such loan will not exceed $25,000
and will be on terms no less favorable to the Company than would be available
from a commercial lender in an arm's length transaction. As of the date of
this Report, the Company has not begun seeking any acquisition.

Results of Operations.

          During the quarterly period ended July 31, 1999, the Company
had no business operations. During this period, the Company received total
revenues of $0 and had a loss from operations of ($1,090), compared with the
three months ended July 31, 1998, in which the Company received total revenues
of $0 and a loss from operations of ($3,685).

Liquidity.

          At July 31, 1999, the Company had total current assets of
$1,509 and total liabilities of $25,723.

Year 2000.

          The Company presently has no material operations, and is presently
seeking a suitable candidate for a merger or acquisition transaction.  Due to
its very limited activities and assets, management does not believe that the
change of year to the year 2000 will have any material effect on its business,
results of operations or financial condition.

         In seeking out a merger or acquisition target, the Company will take
into account the ways in which the Year 2000 may materially affect the
operations of any such target.  However, until such an entity has been
identified, management can not accurately predict how (if at all) the Year
2000 issue may affect the operations of the reorganized Company.  At such time
as the Company completes such a reorganization, it will timely disclose all
material Year 2000 issues in the appropriate filing with the Securities and
Exchange Commission.

         For the foregoing reasons, the Company has determined that the
potential consequences of the Year 2000 would not have a present material
effect on its business, results of operations or financial condition.

                        PART II - OTHER INFORMATION

Item 1.   Legal Proceedings.

          None; not applicable.

Item 2.   Changes in Securities.

          None; not applicable.

Item 3.   Defaults Upon Senior Securities.

          None; not applicable.

Item 4.   Submission of Matters to a Vote of Security Holders.

          None; not applicable.

Item 5.   Other Information.

          On February 9, 1999, the Company filed an S-8 Registration Statement
with the Securities and Exchange Commission for 750,000 shares in
consideration of non-capital raising services pursuant to a Consultant
Compensation Agreement dated February 4, 1999, the shares were valued at $.01
per share.

Item 6.   Exhibits and Reports on Form 8-K.

          (a) Exhibits.

          Financial Data Schedule.

          (b) Reports on Form 8-K.

          None.

<PAGE>


                                SIGNATURES
          Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.

                                        SIERRA HOLDINGS GROUP, INC.


Date: 8/24/99                           By:/s/Steven D. Moulton
                                           Steven D. Moulton
                                           Director and President


Date: 8/24/99                           By:/s/Michelle Wheeler
                                           Michelle Wheeler
                                           Director and
                                           Secretary/Treasurer