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, 2003
                                       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 November
6, 2003.

<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.


                                      INDEX

<TABLE>
<CAPTION>

                                                                         Page Number
                                                                         -----------
PART I.  FINANCIAL INFORMATION
<S>     <C>                                                                <C>
         Item 1.  Financial Statements

                  Consolidated Balance Sheets
                   September 30, 2003 (Unaudited) and                       3
                   December 31, 2002

                  Consolidated Statements of Operations
                   Three Months and Nine months ended September 30,
                   2003 and September 30, 2002 (Unaudited)                  4

                  Consolidated Statements of Cash Flows
                   Nine Months Ended September 30, 2003 and
                   September 30, 2002 (Unaudited)                           5

                  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>

<TABLE>
<CAPTION>
                                     ASSETS
                                                             SEPTEMBER 30,    DECEMBER 31,
                                                                2003              2002
                                                             ------------     -----------
                                                             (Unaudited)

CURRENT ASSETS:
<S>                                                          <C>              <C>
   Cash and cash equivalents .............................   $   103,919      $  123,337
   Securities available-for-sale .........................       104,565         101,993
                                                             ------------     -----------

                  Total assets ...........................   $   208,484      $  225,330
                                                             ============     ===========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
   Accounts payable and accrued expenses .................   $    71,145      $   74,232
                                                             ------------     -----------

                  Total liabilities ......................        71,145          74,232
                                                             ------------     -----------

STOCKHOLDERS' EQUITY:
   Common stock, $.001 par value:
     Authorized - 30,000,000 shares; issued and
       outstanding - 6,548,870 shares ....................         6,549           6,549
   Additional paid-in capital ............................       705,755         705,755
   Accumulated deficit ...................................      (573,524)       (560,968)
   Accumulated other comprehensive loss ..................        (1,441)           (238)
                                                             ------------     -----------
                  Total stockholders' equity .............       137,339         151,098
                                                             ------------     -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...............   $   208,484      $  225,330
                                                             ============     ===========
</TABLE>


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

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                      NINE                         THREE
                                                                  MONTHS ENDED                 MONTHS ENDED
                                                                  SEPTEMBER 30,                SEPTEMBER 30,
                                                                  -------------                -------------
                                                               2003         2002             2003         2002
                                                          -----------    -----------     -----------   -----------
<S>                                                       <C>            <C>             <C>           <C>
REVENUES ..................................               $    4,572     $    2,185      $    1,409    $    1,362


GENERAL AND ADMINISTRATIVE
   EXPENSES ...............................                   17,128         18,034           6,083         2,128
                                                          -----------    -----------     -----------   -----------


NET LOSS ..................................                  (12,556)       (15,849)         (4,674)         (766)


OTHER COMPREHENSIVE LOSS, NET OF TAX:
   Unrealized gains/(losses) on securities:
     Unrealized holding gain/(loss)
        arising during period .............                   (1,441)             -          (1,355)            -
                                                          -----------    -----------     -----------   -----------


COMPREHENSIVE LOSS ........................               $  (13,997)    $  (15,849)     $   (6,029)   $     (766)
                                                          ===========    ===========     ===========   ===========


BASIC AND DILUTED NET LOSS PER SHARE ......               $        -*    $        -*     $        -*   $        -*
                                                          ===========    ===========     ===========   ===========


WEIGHTED AVERAGE NUMBER OF
   SHARES OUTSTANDING .....................                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.


<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                            CONSOLIDATED STATEMENT OF
                              STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                                                         ACCUMULATED
                                                                            ADDITIONAL                      OTHER
                                                       COMMON STOCK          PAID-IN      ACCUMULATED     COMPREHENSIVE
                                                   SHARES       AMOUNT       CAPITAL        DEFICIT       GAIN (LOSS )     TOTAL
                                                ------------  ------------  ------------  ------------   ------------   ------------

BALANCE AT DECEMBER 31, 2002
<S>                                               <C>         <C>           <C>           <C>            <C>            <C>
   (Audited) ..................................   6,548,870   $     6,549   $   705,755   $  (560,968)   $      (238)   $   151,098
                                                                                                                        ------------

COMPREHENSIVE LOSS (Unaudited):
 Net loss .....................................           -             -             -       (12,556)             -        (12,556)
 Other comprehensive gain (loss),
  net of tax:
   Unrealized gains on securities:
    Unrealized holding gains arising
       during the period ......................           -             -             -             -         (1,203)        (1,203)
                                                ------------  ------------  ------------  ------------   ------------   ------------

       Total comprehensive loss ...............                                                                             (13,759)
                                                                                                                        ------------

BALANCE AT SEPTEMBER 30, 2003
   (Unaudited) ................................   6,548,870   $     6,549   $   705,755   $  (573,524)   $    (1,441)   $  (137,339)
                                                ============  ============  ============  ============   ============   ============
</TABLE>



          See accompanying notes to consolidated financial statements.

<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                                NINE
                                                                                            MONTHS ENDED
                                                                                            SEPTEMBER 30,
                                                                                           --------------
                                                                                        2003             2002
                                                                                    ------------    ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                 <C>             <C>
   Net loss .......................................                                 $   (12,556)    $   (15,849)
   Adjustments to reconcile net loss to net cash
     used in operating activities:
       Changes in assets and liabilities:
         Interest receivable ......................                                           -           1,863
         Accounts payable and accrued expenses ....                                      (3,087)         (2,040)
                                                                                    ------------    ------------

NET CASH USED IN OPERATING ACTIVITIES .............                                     (15,643)        (16,026)
                                                                                    ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of securities available-for-sale .....                                      (3,775)       (100,312)
                                                                                    ------------    ------------

NET CASH USED IN INVESTING ACTIVITIES .............                                      (3,775)       (100,312)
                                                                                    ------------    ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS ...........                                     (19,418)       (116,338)

CASH AND CASH EQUIVALENTS - beginning .............                                     123,337         242,603
                                                                                    ------------    ------------

CASH AND CASH EQUIVALENTS - ending ................                                 $   103,919     $   126,265
                                                                                    ============    ============


NON-CASH INVESTING AND FINANCING ACTIVITIES:
   Unrealized gain on securities available-for-sale                                 $     1,203     $       487
                                                                                    ============    ============
</TABLE>
          See accompanying notes to consolidated financial statements.
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2003
                                   (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, 2003 are not necessarily indicative of the
     results that may be expected for the year ending December 31, 2003. 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 20, 2003 for the year ended December 31, 2002.


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.

                                       7
<PAGE>

              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2003
                                   (UNAUDITED)


NOTE 4 - REVENUE RECOGNITION

     The Company's only revenues are derived from investments. Investment income
     is recognized when earned.


NOTE 5 - 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. Significant estimates made by management include the fair value
     of securities.


NOTE 6 - 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 7 - SECURITIES AVAILABLE-FOR-SALE

     Securities  available-for-sale  consist of an  investment  in Vanguard GNMA
     Fund at fair value. Temporary unrealized gains and losses are reported as a
     separate   component  of   stockholders'   equity  in   accumulated   other
     comprehensive income.

                                       8
<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,  2003,  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, 20023 there were no material
changes  in the  financial  condition  of the  Company  other than a net loss of
$4,674 as compared to a net loss of $766 for the comparable  period of the prior
year.  During the nine months ended  September 30, 2003,  there were no material
changes  in the  financial  condition  of the  Company  other than a net loss of
$12,556 as compared to a net loss of $15,849  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, 2003, the Company's  working  capital
amounted to $137,339 with cash and cash equivalents and securities available for
sale aggregating $208,484. 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.

                                       9
<PAGE>
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.

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.

                                       10
<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 -

               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)


(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, 2003.

                                       11
<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 11, 2003                           /s/Morry Rubin
                                        ----------------------------------------
                                        Morry Rubin, President, Chief Executive,
                                        Financial and Accounting Officer


                                       12