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                 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 September 30, 1996

                               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 September 30, 1996.
---------------------------------
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<PAGE>


              NATIONAL DIVERSIFIED SERVICES, INC.


                             INDEX



                                                           Page
                                                           Number


PART I.  FINANCIAL INFORMATION

     Item 1.   Financial Statements

               Consolidated Balance Sheets                      3
                 September 30, 1996 (Unaudited) and
                 December 31, 1995

               Consolidated Statements of Operations            4
                 Three and Nine Months ended September 30,
                 1996 and September 30, 1995 (Unaudited)

               Consolidated Statements of Cash Flows            5
                 Nine Months Ended September 30, 1996 and
                 September 30, 1995 (Unaudited)

               Notes to Financial Statements (Unaudited)        6

     Item 2.   Management's Discussion and Analysis of
                 Financial Condition and Results of
                 Operations                                     7

PART II.  OTHER INFORMATION                                     8


SIGNATURES                                                      9

EXHIBIT                                                        10

                                2
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<PAGE>
NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   CONSOLIDATED BALANCE SHEETS


                             ASSETS
<TABLE>
<CAPTION>

                                                                           SEPTEMBER 30,        DECEMBER 31,
                                                                               1996                  1995
                                                                            (Unaudited)            (Audited)
<S>                                                                       <C>                   <C>         
CURRENT ASSETS:
   Cash and cash equivalents                                               $   279,420           $   272,574
   Interest receivable                                                             961                 2,160
                                                                           -----------           -----------

                  Total current assets                                         280,381               274,734
                                                                           -----------           -----------

                  TOTAL                                                    $   280,381           $   274,734
                                                                           ===========           ===========


                                                     LIABILITIES

CURRENT LIABILITIES:
   Accounts payable and accrued expenses                                   $    11,079           $     6,389
                                                                           -----------           -----------

                  Total current liabilities                                     11,079                 6,389

ACCRUED SALARIES - officer                                                      58,750                58,750
                                                                           -----------           -----------

                  Total liabilities                                             69,829                65,139
                                                                           -----------           -----------


                                                STOCKHOLDERS' EQUITY

Common stock, $.001 par value; authorized 30,000,000
   shares, issued 6,553,870 shares                                               6,554                 6,554
Additional paid-in capital                                                     705,755               705,755
                                                                           -----------           -----------
                  Total                                                        712,309               712,309

Deficit                                                                       (501,752)             (502,709)
                                                                           -----------           -----------
                                                                               210,557               209,600
Less:  5,000 shares of treasury stock, at cost                                       5                     5
                                                                           -----------           -----------

                  Total stockholders' equity                                   210,552               209,595
                                                                           -----------           -----------

                  TOTAL                                                    $   280,381           $   274,734
                                                                           ===========           ===========


</TABLE>
                                3
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         NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

               CONSOLIDATED STATEMENTS OF OPERATIONS
                          (Unaudited)


<TABLE>
<CAPTION>
                                                                                 NINE                             THREE
                                                                             MONTHS ENDED                     MONTHS ENDED
                                                                             SEPTEMBER 30,                    SEPTEMBER 30,
                                                                         1996           1995              1996           1995
                                                                     ---------------------------     ---------------------------
<S>                                                                  <C>            <C>              <C>             <C>         

REVENUES - interest                                                  $     11,231   $     11,629     $       3,977   $      3,982


GENERAL AND
   ADMINISTRATIVE EXPENSES                                                 10,274          9,546             2,856          2,533
                                                                     ------------   ------------     -------------   ------------


NET INCOME                                                           $        957   $      2,083     $       1,121   $      1,449
                                                                     ============   ============     =============   ============


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


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


</TABLE>

*Less than $.01 per share
                                4
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           NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (Unaudited)

<TABLE>
<CAPTION>                                                                                       NINE
                                                                                            MONTHS ENDED
                                                                                            SEPTEMBER 30,
                                                                                         1996          1995
                                                                                     ------------   ------------
<S>                                                                                  <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                                        $        957   $      2,083
                                                                                     ------------   ------------
   Adjustments to reconcile net income to net cash
     provided by operating activities:
       Depreciation and amortization                                                         -               136
       Changes in assets and liabilities:
         Interest receivable                                                                1,199           -
         Accounts payable and accrued expenses                                              4,690          2,148
                                                                                     ------------   ------------

                  Total adjustments                                                         5,889          2,284
                                                                                     ------------   ------------

NET CASH PROVIDED BY OPERATING ACTIVITIES                                                   6,846          4,367
                                                                                     ------------   ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                                     6,846          4,367

CASH AND CASH EQUIVALENTS - beginning                                                     272,574        269,102
                                                                                     ------------   ------------

CASH AND CASH EQUIVALENTS - ending                                                   $    279,420   $    273,469
                                                                                     ============   ============


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Cash paid for income taxes                                                        $        404   $       -
                                                                                     ============   ============

   Cash paid for interest                                                            $       -      $       -
                                                                                     ============   ============

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

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             SEPTEMBER 30, 1996
                                (Unaudited)





NOTE 1 - BASIS OF PRESENTATION

  The  attached  summarized  financial   information  does  not  include  all
  disclosures  required  to  be  included  in a  complete  set  of  financial
  statements  prepared  in  conformity  with  generally  accepted  accounting
  principles.  Such disclosures were included with the consolidated financial
  statements  of the Company at  December  31,  1995,  included in its annual
  report on Form 10-K.  Such statements should be read  in  conjunction  with
  the data herein.


NOTE 2 - ADJUSTMENTS

  The financial  information reflects all normal recurring adjustments which,
  in the opinion of management,  are deemed necessary for a fair presentation
  of the results for the interim periods. The results for the interim periods
  are not necessarily indicative of the results to be expected for the year.


NOTE 3 - CASH EQUIVALENTS

  Cash  equivalents  consist of an investment in short-term  commercial paper
  with maturities of less than ninety days.


NOTE 4 - ACCRUED SALARIES - OFFICER

  Accrued salaries - officer  represents $58,750 for the period December 1986
  to November 22, 1989.


                                6
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       Management's Discussion and Analysis of Financial Condition
                        and Results of Operations

Results of Operations

     During the Nine months ended September 30, 1996, 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.

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  September  30, 1996, the Company's
working capital amounted to $269,302 with cash assets of $279,420.
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.

                                7
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              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   Earning Per Share - See Consolidated
                    Statements of Operations

               27   Financial Data Schedule

          (b)  No  reports  on Form 8-K were filed  during  the
               quarter ended September 30, 1996.


                                8
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              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: November 13, 1996        /s/George Rubin
                                ---------------------------------
                                George Rubin, President, Chief
                                   Executive, Financial and 
                                   Accounting Officer

                                9
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