**FORM      10-Q**

**333-141521**

**City      Language Exchange, Inc.**

| **Delaware**                                   |   | **20-5433090**                     |
|------------------------------------------------|--------|------------------------------------|
| (State                or Other Jurisdiction of |   | (I.R.S.                Employer    |
| Incorporation                or Organization)  |   | Identification                No.) |

**6021      Roxton Road, Halifax, Nova Scotia, Canada B3H 1H4**

**902)      478-5065**

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| Large                accelerated filer | [                  ] | Accelerated                filer         | [                  ] |
|----------------------------------------|--------------------------------|------------------------------------------|--------------------------------|
| Non-accelerated                filer   | [                  ] | Smaller                reporting company | [X]                            |

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**TABLE      OF CONTENTS**

| **PART                I - FINANCIAL INFORMATION** | 1                                                                                                                         |
|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| Item                1.                            | FINANCIAL                STATEMENTS (UNAUDITED)                                                                           | 1 |
| Item                2.                            | MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS | 6 |
| Item                3.                            | QUANTITATIVE                AND QUALITATIVE ANALYSIS ABOUT MARKET RISK                                                    | 7 |
| Item                4T.                           | CONTROLS                AND PROCEDURES                                                                                    | 7 |
| **PART                II - OTHER INFORMATION**    | 9                                                                                                                         |
| Item                1.                            | Legal                Proceedings                                                                                          | 9 |
| Item                1A.                           | Risk                Factors                                                                                               | 9 |
| Item                2.                            | Unregistered                Sales of Equity Securities and Use of Proceeds                                                | 9 |
| Item                3.                            | Defaults                Upon Senior Securities.                                                                           | 9 |
| Item                4.                            | Submission                of Matters to a Vote of Security Holders.                                                       | 9 |
| Item                5.                            | Other                Information.                                                                                         | 9 |
| Item                6.                            | Exhibits                                                                                                                  | 9 |

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**PART      I - FINANCIAL INFORMATION**

**Item      1.**
** **
**FINANCIAL      STATEMENTS**
**      (UNAUDITED)**

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|                                                                                                    |   | March                31, 2008 |    | December                31, 2007 |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|----------------------------------|--------|
|                                                                                                    |   |                          |    |                             |   |
| ASSETS                                                                                                  |   |                          |    |                             |   |
| Current                Assets                                                                           |   |                          |    |                             |   |   |   |
| Cash                                                                                                    |   | $                             | 1,004   |                             | $      | 1,254 |   |
| Total                Current Assets                                                                     |   |                          | 1,004   |                             |   | 1,254 |   |
|                                                                                                    |   |                          |    |                             |   |   |   |
| Equipment,                net of accumulated depreciation of $717 and $633,                respectively |   |                          | 753     |                             |   | 837 |   |
|                                                                                                    |   |                          |    |                             |   |   |   |
| Total                Assets                                                                             |   | $                             | 1,757   |                             | $      | 2,091 |   |
|                                                                                                    |   |                          |    |                             |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' DEFICIT                                                    |   |                          |    |                             |   |   |   |
|                                                                                                    |   |                          |    |                             |   |   |   |
| Current                Liabilities                                                                      |   |                          |    |                             |   |   |   |
| Accrued                expenses                                                                         |   | $                             | 2,500   |                             | $      | 5,700 |   |
| Total                Current Liabilities                                                                |   |                          | 2,500   |                             |   | 5,700 |   |
|                                                                                                    |   |                          |    |                             |   |   |   |
| Commitments                and contingencies                                                            |   |                          | -       |                             |   | - |   |
|                                                                                                    |   |                          |    |                             |   |   |   |
| Stockholders'                Equity                                                                     |   |                          |    |                             |   |   |   |
| Preferred                stock, $.000001, 20,000,000 shares                                             |   |                          |    |                             |   |   |   |
| authorized,                none issued and outstanding                                                  |   |                          | -       |                             |   | - |   |
| Common                stock, $.000001 par value, 1,000,000,000                                          |   |                          |    |                             |   |   |   |
| shares                authorized, 7,189,000 shares issued                                               |   |                          |    |                             |   |   |   |
| and                outstanding at March 31, 2008 and December 31, 2007,                                 |   |                          | 7       |                             |   | 7 |   |
| Additional                paid-in capital                                                               |   |                          | 64,019  |                             |   | 57,519 |   |
| Accumulated                deficit                                                                      |   |                          | (64,769 | )                                |   | (61,135 | ) |
| Total                Stockholders' Deficit                                                              |   |                          | (743    | )                                |   | (3,609 | ) |
|                                                                                                    |   |                          |    |                             |   |   |   |
| Total                Liabilities and Stockholders' Deficit                                              |   | $                             | 1,757   |                             | $      | 2,091 |   |

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|                                           |   | March                31,  |      | March              31, |   |
|------------------------------------------------|--------|--------------------------------|-----------|------------------------|--------|
|                                           |   | 2008                           |      | 2007                   |   |
|                                           |   |                           |      |                   |   |
| REVENUE                                        |   |                           |      |                   |   |   |   |
| Translation                service income      |   | $                              | 97        |                   | $      | 1,590 |   |
| Total                revenue                   |   |                           | 97        |                   |   | 1,590 |   |
|                                           |   |                           |      |                   |   |   |   |
| EXPENSES                                       |   |                           |      |                   |   |   |   |
| General                & administrative    |   |                           | 3,648     |                   |   | 1,557 |   |
| Depreciation                expense            |   |                           | 83        |                   |   | 140 |   |
| Total                expenses                  |   |                           | 3,731     |                   |   | 1,697 |   |
|                                           |   |                           |      |                   |   |   |   |
| Net                loss                        |   | $                              | (3,634    | )                      | $      | (107 | ) |
|                                           |   |                           |      |                   |   |   |   |
|                                           |   |                           |      |                   |   |   |   |
| Net                loss per share - basic      |   |                           |      |                   |   |   |   |
| And                diluted                     |   | $                              | (0.00     | )                      | $      | (0.00 | ) |
|                                           |   |                           |      |                   |   |   |   |
| Weighted                average share          |   |                           |      |                   |   |   |   |
| outstanding                - basic and diluted |   |                           | 7,189,000 |                   |   | 7,000,000 |   |
|                                           |   |                           |      |                   |   |   |   |

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|                                                         |   | March                31, 2008 |   | March                31, 2007 |   |
|--------------------------------------------------------------|--------|-------------------------------|--------|-------------------------------|--------|
| Cash                Flows From Operating Activities:         |   |                          |   |                          |   |   |   |
| Net                loss                                 |   | $                             | (3,634 | )                             | $      | (107 | ) |
|                                                         |   |                          |   |                          |   |   |   |
| Adjustments                to reconcile net loss        |   |                          |   |                          |   |   |   |
| to                net cash provided by operating activities: |   |                          |   |                          |   |   |   |
| Depreciation                                                 |   |                          | 84     |                          |   | 140 |   |
| Changes                in:                                   |   |                          |   |                          |   |   |   |
|                  Accrued Expenses                       |   |                          | (3,200 | )                             |   | 0 |   |
| Net                Cash Provided By (Used In)Operating       |   |                          |   |                          |   |   |   |
| Activities                                                   |   |                          | (6,750 | )                             |   | 33 |   |
|                                                         |   |                          |   |                          |   |   |   |
| Cash                Flows From Financing Activities:         |   |                          |   |                          |   |   |   |
| Contributed                capital by owner                  |   |                          | 6,500  |                          |   | 30 |   |
| Net                Cash Provided By Financing                |   |                          |   |                          |   |   |   |
| Activities                                                   |   |                          | 6,500  |                          |   | 30 |   |
|                                                         |   |                          |   |                          |   |   |   |
| Net                increase (decrease) in cash               |   |                          | (250   | )                             |   | 63 |   |
| Cash                at beginning of period                   |   |                          | 1,254  |                          |   | 5,081 |   |
| Cash                at end of period                         |   | $                             | 1,004  |                          | $      | 5,144 |   |
|                                                         |   |                          |   |                          |   |   |   |
|                                                         |   |                          |   |                          |   |   |   |
| Supplemental                Information:                     |   |                          |   |                          |   |   |   |
| Interest                paid                                 |   | $                             | -      |                          | $      | - |   |
| Income                taxes paid                        |   |                          | -      |                          |   | - |   |

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**Item      2.**
** **
**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

|                                      |   |  March                31, 2008 |   | March                31, 2007 |   |
|-------------------------------------------|--------|-------------------------------------|--------|-------------------------------|--------|
| Revenues:                                 |   |                                |   |                          |   |
|                                      |   |                                |   |                          |   |
| Translation                service income |   | $                                   | 97     |                          | $      | 1,590 |   |
|                                      |   |                                |   |                          |   |   |   |
| Total                Revenue              |   | $                                   | 97     |                          | $      | 1,590 |   |

| General                and administrative expenses |   | $ | 3,648 |   | $ | 1,557 |   |
|----------------------------------------------------|--------|---|-------|--------|---|-------|--------|

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| Depreciation                expense |   | $ | 84 |   | $ | 140 |   |
|-------------------------------------|--------|---|----|--------|---|-----|--------|

| Total                expenses |   | $ | 3,732  |   | $ | 1,697 |   |
|-------------------------------|--------|---|--------|--------|---|-------|--------|
| Net                loss       |   | $ | (3,634 | )      | $ | (107  | )      |

**Item      3.**
** **
**QUANTITATIVE      AND QUALITATIVE ANALYSIS ABOUT MARKET RISK**

**Item      4T. **
**CONTROLS      AND PROCEDURES**

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**PART      II - OTHER INFORMATION**

**Item      1. **
**Legal      Proceedings**

**Item      1A. **
**Risk      Factors**

**Item      2. Unregistered Sales of Equity Securities **
**and      Use of Proceeds**

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

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

**Item      5. Other Information.**

**Item      6. Exhibits**

|   | Exhibit                3.1 | Articles                of Incorporation (incorporated by reference to Exhibits to the March                2007                Form SB-2 of City Language Exchange, Inc., File No.                333-141521). |
|--------|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit                3.2 | Bylaws                (incorporated by reference to Exhibits to the March 2007 Form SB-2                of City                Language Exchange, Inc., File No.                333-141521). |
|--------|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit                4 | Form                of Common Stock Certificate of City Language Exchange, Inc. (incorporated                by reference to Exhibits to the March 2007 Form SB-2 of City Language                Exchange, Inc., File No.                333-141521). |
|--------|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit                11 | Statement                re computation of per share earnings (see Note 1 to Financial Statements                on page 5). |
|--------|---------------------------|------------------------------------------------------------------------------------------------------------------------------|

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|   | Exhibit                31.1 | Certification                as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of                2002 by                Chief Executive Officer and Chief Financial                Officer. |
|--------|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit                32.1 | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 by Chief Executive Officer and Chief                Financial Officer. |
|--------|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

** **
**CITY      LANGUAGE EXCHANGE, INC.**

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