SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                       For the quarter ended June 30, 2002

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

               For the transition period from ________ to ________

                        Commission File Number: 2-99080

                       NATIONAL DIVERSIFIED SERVICES, INC.
            ---------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

          Delaware                                     11-2820379
---------------------------                    ---------------------------
(State or other jurisdiction                       (I.R.S. Employer
of incorporation or organization)                   Identification No.)

                             c/o Lester Morse P.C.
                        111 Great Neck Road, Suite #420
                           Great Neck, New York 11021
                ----------------------------------- -----------
               (Address of principal executive offices) (Zip Code)

                         Registrant's telephone number,
                      including area code: (516) 487-1419

                                 Not Applicable

         (Former name, former address and former fiscal year 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 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.

                                                 Yes  x .   No ___.
                                                     ---

6,548,870 Common Shares, $.001 par value were issued and outstanding at August
15, 2002.


<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.


                                      INDEX
<TABLE>
<CAPTION>


                                                                                                 Page Number

PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

<S>                                                                                                  <C>
                           Consolidated Balance Sheets                                               3
                             June 30, 2002 (Unaudited) and
                             December 31, 2001

                           Consolidated Statements of Operations                                     4
                             Three Months and Six months ended June 30,
                             2002 and June 30, 2001 (Unaudited)

                           Consolidated Statements of Cash Flows                                     5
                              Six Months Ended June 30, 2002 and
                              June 30, 2001 (Unaudited)

                           Notes to Financial Statements (Unaudited)                                 6

         Item 2.  Management's Discussion and Analysis of
                             Financial Condition and Results of
                             Operations                                                              8

PART II. OTHER INFORMATION                                                                           9


SIGNATURES                                                                                           10

</TABLE>
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                     ASSETS
                                                                            JUNE 30,         DECEMBER 31,
                                                                              2002                   2001
                                                                     ---------------------   -------------------
                                                                           (Unaudited)             (Audited)

CURRENT ASSETS
<S>                                                                        <C>                   <C>
   Cash and cash equivalents                                               $  228,590            $  242,603
   Interest receivable                                                            650                 1,863
   Other current assets                                                         1,656                 1,656
                                                                           ----------            ----------

                  Total assets                                             $  230,896            $  246,122
                                                                           ==========            ==========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable and accrued expenses                                   $   74,819            $   74,962
                                                                           ----------            ----------

                  Total liabilities                                            74,819                74,962
                                                                           ----------            ----------

COMMITMENT

STOCKHOLDERS' EQUITY
   Common stock, $.001 par value;
     Authorized - 30,000,000 shares; issued and
     outstanding - 6,553,870 shares                                             6,554                 6,554
   Additional paid-in capital                                                 705,755               705,755
   Accumulated deficit                                                       (556,227)             (541,144)
                                                                           ----------            ----------
                                                                              156,082               171,165
Less:  5,000 shares of treasury stock, at cost                                      5                     5
                                                                           ----------            ----------

     Total stockholders' equity                                               156,077               171,160
                                                                           ----------            ----------

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $  230,896            $  246,122
                                                                           ==========            ==========




</TABLE>

    See accompanying notes to consolidated financial statements (unaudited).

                                       3
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)


<TABLE>
<CAPTION>




                                                                       SIX                        THREE
                                                                  MONTHS ENDED                MONTHS ENDED
                                                                    JUNE 30,                    JUNE 30,
                                                            ------------------------    ------------------------
                                                               2002         2001            2002         2001
                                                            -----------  -----------    -----------  -----------

<S>                                                          <C>          <C>            <C>           <C>
REVENUES - interest                                          $      823   $   6,206      $      777    $  2,662


GENERAL AND ADMINISTRATIVE
   EXPENSES                                                      15,906      11,426          13,215       6,786
                                                             ----------   ---------      ----------    --------


NET LOSS                                                     $  (15,083)  $  (5,220)     $  (12,438)   $ (4,124)
                                                             ==========   =========      ==========    ========


NET LOSS PER SHARE, BASED
   ON THE WEIGHTED AVERAGE
   SHARES OUTSTANDING                                        $     -   *  $    -   *     $     -   *   $   -   *
                                                             ==========   =========      ==========    ========


NUMBER OF SHARES USED TO
   COMPUTE LOSS PER SHARE                                     6,548,870   6,548,870       6,548,870    6,548,870
                                                              =========   =========       =========    =========



</TABLE>

*Less than $.01 per share





     See accompanying notes to consolidated financial statements (unaudited).

                                       4
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)




<TABLE>
<CAPTION>
                                                                                                 SIX
                                                                                            MONTHS ENDED
                                                                                              JUNE 30,
                                                                                        2002            2001

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                   <C>            <C>
   Net loss                                                                           $  (15,083)    $   (5,220)
   Adjustments to reconcile net loss to net cash
     used in operating activities:
       Changes in assets and liabilities:
         Interest receivable                                                               1,213           (140)
         Accounts payable and accrued expenses                                              (143)           459
                                                                                      ----------     ----------

NET CASH USED IN OPERATING ACTIVITIES                                                    (14,013)        (4,901)
                                                                                      ----------     ----------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                                  (14,013)        (4,901)

CASH AND CASH EQUIVALENTS - beginning                                                    242,603        250,618
                                                                                      ----------     ----------

CASH AND CASH EQUIVALENTS - ending                                                    $  228,590     $  245,717
                                                                                      ==========     ==========


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid for income taxes                                                         $      300     $     -
                                                                                      ==========     ==========


</TABLE>

    See accompanying notes to consolidated financial statements (unaudited).

                                       5
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  JUNE 30, 2002
                                   (UNAUDITED)


NOTE 1 - BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements do
     not include all disclosures required to be included in a complete set of
     financial statements prepared in conformity with U.S. generally accepted
     accounting principles. In the opinion of management, all adjustments
     (consisting of normal recurring accruals) that are considered necessary for
     a fair presentation have been included. The results for the six month
     period ended June 30, 2002 are not necessarily indicative of the results
     that may be expected for the year ending December 31, 2002. For further
     information, refer to the consolidated financial statements and footnotes
     thereto included in the Company's annual report on Form 10-K filed on March
     28, 2002 for the year ended December 31, 2001.


NOTE 2 - NATURE OF BUSINESS

     The Company was organized under the laws of the State of Delaware on May
     30, 1985 and was in the development stage until 1989. During November 1989,
     the Company began setting up operations to import to the United States
     products for sale principally to the hardware and construction markets. Two
     wholly-owned subsidiaries were formed to conduct these operations. The
     Company commenced operations during the first three months of 1990 and
     began billing its customers in April 1990. Billings to customers ended in
     June 1990 and the Company terminated its import business. Currently, the
     Company is exploring various business opportunities that may be available
     to it.


NOTE 3 - PRINCIPLES OF CONSOLIDATION

     The consolidated financial statements include the accounts of the Company
     and its subsidiaries, which are all wholly-owned and totally inactive. All
     significant intercompany accounts and transactions have been eliminated in
     consolidation.


                                       6

<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  JUNE 30, 2002
                                   (UNAUDITED)



NOTE 4 - 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 statements and the reported amounts of revenues and expenses
     during the reporting period. Actual results could differ from these
     estimates.


NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS

     The amounts at which current assets and current liabilities are presented
     in the balance sheet approximate their fair value due to their short-term
     nature.


NOTE 6 - CASH EQUIVALENTS

     Cash equivalents represent short-term commercial paper with maturities of
     less than ninety days.

                                       7
<PAGE>
           Management's Discussion and Analysis of Financial Condition
                            and Results of Operations

Results of Operations

         During the three months and six months ended June 30, 2002, the Company
had no revenues other than interest income since the Company terminated its
import and sale business operations in 1990. The Company is presently exploring
various business opportunities that may be available to it. No assurances can be
given that the Company will be successful in completing a transaction to acquire
an operating business.

         During the six months ended June 30, 2002, there were no material
changes in the financial condition of the Company other than a net loss of
$15,083 as compared to a net loss of $5,220 for the comparable period of the
prior year. Due to the Company lacking any current business activities or
operations, other than searching for a new business opportunity or merger
candidate, there are no trends or uncertainties that have had or reasonably
expect to have a material favorable or unfavorable impact on revenues or income
(loss) from continuing operations. Further, there are no unusual or infrequent
events or transactions or any significant economic changes that materially
effected the amount of reported income (loss) from continuing operations.

Liquidity and Capital Resources

         Financing of the Company's activities has been provided from the public
sale of its securities for cash amounting to a net of approximately $600,000. At
June 30, 2002, the Company's working capital amounted to $156,077 with cash
assets of $228,590. Management believes that its cash assets are adequate to
meet the Company's short term and long term liquidity and cash requirements
until such time, if ever, as the Company completes a transaction to establish an
operating business.

         The Company has been unable to find a suitable business opportunity or
merger candidate over the last ten years, considering the limited cash resources
available to the Company and that the Company's Common Stock has no active and
established trading market. Nevertheless, Management is continuing to explore
various business opportunities that may be available to it. As of the filing
date of this Form 10-Q, there are no known trends or any known demands,
commitments, events or uncertainties that will result in or that are reasonably
likely to result in the Registrant's liquidity increasing or decreasing in any
material way. Further, at the present time, the Company has no commitments for
capital expenditures and does not anticipate same until it establishes a
business or acquires an operating business, of which there can be no assurances
given.

                                       8
<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.


                           PART II - OTHER INFORMATION



Item 1.  Legal Proceedings:                 None
         ------------------

Item 2.  Changes in Securities:     None

Item 3.  Defaults Upon Senior Securities:   None

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

                  None

Item 5.  Other Information:                 None
         ------------------

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

     (a)  Exhibits - 11  Statement  re:  computation  of per share  earnings-See
          consolidated statement of operations

     99.1 Certification of Executive Officers

     (b)   No reports on Form 8-K were filed during the quarter ended June 30,
          2002.



                                        9
<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.



                                   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.



                                             NATIONAL DIVERSIFIED SERVICES, INC.
                                                      (Registrant)

Dated: August 16, 2002               /s/Morry Rubin
                                        Morry Rubin, President, Chief Executive,
                                        Financial and Accounting Officer


                                       10
<PAGE>
                   Certification Pursuant to 18 U.S.C.ss.1350


         In connection with the filing with the United States Securities and
Exchange Commission of National Diversified Services, Inc.'s (the "Company")
Quarterly Report on Form 10-Q for the period ended June 30, 2002 (the "Report"),
the undersigned, the Chief Executive Officer and the Chief Financial Officer of
the Company, hereby certify that (i) in our capacities as officers of the
Company, (ii) to each of our own respective actual knowledge, and (iii) solely
for the purpose of compliance with 18 U.S.C.ss.1350, that:

         (1)      the Report fully  complies  with the  requirements of ss.13(a)
                  or 15(d) of the  Securities  Exchange Act of 1934, as
                  amended; and

         (2)      the information contained in the Report fairly presents, in
                  all material respects, the financial condition and results of
                  operations of the Company.

                  The above certification is given as of the date of the Report
and is limited to the periods covered by the Report.

                  IN WITNESS WHEREOF, the undersigned have executed this
Certificate on August 16, 2002.

                                               By:    /s/Morry F. Rubin
                                                         Chief Executive Officer

                                               By:   /s/ Morry F. Rubin
                                                         Chief Financial Officer