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, 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)

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<CAPTION>
<S>                                                                             <C>
          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
                                                                                --------------
</TABLE>

                                 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 November
12, 2002.


<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.


                                      INDEX

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                                                                                                 Page Number

PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

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

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

                           Consolidated Statements of Cash Flows                                                  5
                              Six Months Ended September 30, 2002 and
                              September 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


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<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS


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

CURRENT ASSETS
<S>                                                                        <C>                   <C>
   Cash and cash equivalents                                               $  126,265            $  242,603
   Securities available-for-sale                                              100,799
   Interest receivable                                                           -                    1,863
   Other current assets                                                         1,656                 1,656
                                                                           ----------            ----------

                  Total assets                                             $  228,720            $  246,122
                                                                           ==========            ==========


                                        LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable and accrued expenses                                   $   72,922            $   74,962
                                                                           ----------            ----------

                  Total liabilities                                            72,922                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                                                       (556,993)             (541,144)
   Accumulated other comprehensive
     income - unrealized gain                                                     487                  -
                                                                           ----------            ----------
                                                                              155,803               171,165
Less:  5,000 shares of treasury stock, at cost                                      5                     5
                                                                           ----------            ----------

     Total stockholders' equity                                               155,798               171,160
                                                                           ----------            ----------

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $  228,720            $  246,122
                                                                           ==========            ==========


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    See accompanying notes to consolidated financial statements (unaudited).
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

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<CAPTION>




                                                                      NINE                        THREE
                                                                  MONTHS ENDED                MONTHS ENDED
                                                                  SEPTEMBER 30,               SEPTEMBER 30,
                                                               2002         2001            2002         2001
-----------------------------------------------------------------------  -----------    -----------  -----------

<S>                                                          <C>          <C>            <C>           <C>
INVESTMENT INCOME                                            $    2,185   $   9,975      $   1,362     $  3,769


GENERAL AND ADMINISTRATIVE
   EXPENSES                                                      18,034      15,389          2,128        3,964
                                                             ----------   ---------      ---------     --------


NET LOSS                                                     $  (15,849)  $  (5,414)     $    (766)    $   (195)
                                                             ==========   =========      =========     ========


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
                                                              =========   =========      =========     =========




*Less than $.01 per share

</TABLE>


    See accompanying notes to consolidated financial statements (unaudited).
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


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<CAPTION>

                                                                                                NINE
                                                                                            MONTHS ENDED
                                                                                            SEPTEMBER 30,
                                                                                        2002            2001

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                  <C>            <C>
   Net loss                                                                          $    (15,849)  $     (5,414)
   Adjustments to reconcile net loss to net cash
     used in operating activities:
       Changes in assets and liabilities:
         Interest receivable                                                                1,863           (645)
         Accounts payable and accrued expenses                                             (2,040)         1,001
                                                                                     ------------   ------------

NET CASH USED IN OPERATING ACTIVITIES                                                     (16,026)        (5,058)
                                                                                     ------------   ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of securities available-for-sale                                             (100,312)          -
                                                                                     ------------   ------------

NET CASH USED IN INVESTING ACTIVITIES                                                    (100,312)          -
                                                                                     ------------   ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                                  (116,338)        (5,058)

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

CASH AND CASH EQUIVALENTS - ending                                                   $    126,265   $    245,560
                                                                                     ============   ============

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES:
   Unrealized gain on securities available-for-sale                                           487           -






</TABLE>
    See accompanying notes to consolidated financial statements (unaudited).


<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 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 nine month
     period ended September 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.


<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2002
                                   (UNAUDITED)



NOTE 4 - SECURITIES AVAILABLE-FOR-SALE

     Securities available-for-sale consist of an investment in Vanguard GNMA
     Fund at fair value. The temporary unrealized gain of $487 is reported as a
     separate component of stockholders' equity in accumulated other
     comprehensive income.



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

Results of Operations

         During the three months and nine months ended September 30, 2002, the
Company had no revenues other than investment 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 three months ended September 30, 2002, there were no
material changes in the financial condition of the Company other than a net loss
of $766 as compared to a net loss of $195 for the comparable period of the prior
year. During the nine months ended September 30, 2002, there were no material
changes in the financial condition of the Company other than a net loss of
$15,849 as compared to a net loss of $5,414 for the comparable period of the
prior year. Further, 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
December 1986 initial public offering of its securities for cash amounting to a
net of approximately $600,000. At September 30, 2002, the Company's working
capital amounted to $155,798 with cash and cash equivalents and securities
available for sale aggregating $227,064. 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.

Item.3   Quantitative and Qualitative Disclosures about Market Risk

The Company's securities available for sale consist of an investment in a mutual
fund whose value is subject to change with market conditions.  The mutual fund
invests in U.S. Government obligations whose terms may be more than one year.
In addition, the Company's cash equivalents are invested in a brokerage account
subject to changes in interest rates.  The Company manages its market risk by
periodically changing its investments.  The Company has no assets and
liabilities which are denominated in a currency other than U.S. dollars or
involve commodity price risks.

<PAGE>
Item 4.  Controls and Procedures

         The Company maintains disclosure controls and procedures that are
designed to ensure that information required to be disclosed in the Company's
Exchange Act reports is recorded, processed, summarized and reported within the
time periods specified in the SEC's rules and forms, and that such information
is accumulated and communicated to the Company's management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely
decisions regarding required disclosure based closely on the definition of
"disclosure controls and procedures" in Rule 13a-14(c). In designing and
evaluating the disclosure controls and procedures, management recognized that
any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives,
and management necessarily was required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures. Within 90 days
prior to the date of this report, the Company carried out an evaluation, under
the supervision and with the participation of the Company's management,
including the Company's Chief Executive Officer and the Company's Chief
Financial Officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures. Based on the foregoing, the
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures were effective. There have been no
significant changes in the Company's internal controls or in other factors that
could significantly affect the internal controls subsequent to the date the
Company completed its evaluation. Therefore, no corrective actions were taken.



<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 -
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<CAPTION>

                      <S>      <C>
                      3        Certificate of Incorporation and Amendments thereto (1)

                      3        (A) By-Laws (1)

                      11.      Statement Re: Computation of Earnings per share (see "Financial
                               Statements").

                      21       Subsidiaries  of Registrant (2)

                      99       Form of Warrants granted to Morry Rubin and George Rubin (4)

                      99.1     Form of Warrant granted to Stacy Goldberg (3)

                      99.2     Form of Warrant granted to Lester Morse and Steven Morse (4)
</TABLE>
----------------
(1) Exhibits 3 and 3(A) are incorporated by reference from Registration No.
99080 which were filed in a Registration Statement on Form S-18.

(2) The Company had no active subsidiaries during the year ended December
31, 2001.


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


<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: November 13, 2002             /s/Morry Rubin
                                        Morry Rubin, President, Chief Executive,
                                        Financial and Accounting Officer
<PAGE>
                                  CERTIFICATION

     I, Morry F. Rubin,  Chief Executive  Officer and Chief Financial Officer of
the Registrant, certify that:

     1. I have  reviewed  this  quarterly  report  on Form  10-QSB  of  National
Diversified Services, 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 am responsible  for
establishing  and maintaining  disclosure  control 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 entitles, 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:  November 13, 2002                         /s/ Morry F. Rubin
                                                     Morry F. Rubin,
                                                     Chief Executive Officer and
                                                     Chief Financial Officer
<PAGE>
Correspondence Filing

                   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 September 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 November 13, 2002.

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

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