<PAGE>
                               FORM 10-Q 

                   SECURITIES AND EXCHANGE COMMISSION

                       Washington, D.C.  20549
                                                                 
     

  [X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934
             For Quarterly Period Ended November 30, 1996

                               
                                 OR

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

                    Commission File Number 0-13946
                                            
                         
                  INTERNATIONAL DESIGN GROUP, INC.
              ------------------------------------------
           (Exact name of registrant as specified in charter)

             Delaware                                59-2521916  
 ----------------------------                     ----------------
    (State or other jurisdiction                  (I.R.S. Employer
  of incorporation or organization)             Identification No.)

              3201 Griffin Rd., Dania, Florida            33312
            ------------------------------------------------------
            (Address of principal executive offices)   (Zip Code)

                           (954) 893-7555     
                     --------------------------
                       (Registrant's telephone number, 
                      including area code)

     
Indicate by check mark whether 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     . 
                                                   ----   ----
As of December 31,1996, there were 3,768,401 shares of the Registrant's $.05 
par value common stock issued and 3,744,849 shares were outstanding. 

                              -1-
<PAGE>


                   INTERNATIONAL DESIGN GROUP, INC.
                             CONTENTS
     

     PART I - FINANCIAL INFORMATION                               
                                                                   Pages
                                                                   -----

     Item 1. Financial Statements

     Condensed Consolidated Balance Sheets of
     International Design Group, Inc. ("IDG") as of
     November 30, 1996 and February 29,1996                          3 
       
     Condensed Consolidated Statement of Operations  
     of IDG for the nine  months ended November 30,
     1996 and 1995                                                   4
                               
  Condensed Consolidated Statement of Operations
  of IDG for the three months ended November 30,
  1996 and 1995                                                      5     
 
  Condensed Consolidated Statement of Cash Flows of
    IDG for the nine  months ended November 30, 1996 and                    
  1995                                                               6 

  Notes to Financial Statements                                      7  

 Item 2. Management's Discussion and Analysis of 
               Financial Condition and Results of 
               Operations                                           8-10
PART II. OTHER INFORMATION

           Item 1.Legal Proceedings                                   11     
                          
           Item 2.Changes in Securities                               11     
              
           Item 3.Defaults Upon Senior Securities                     11      
           Item 4.Submission of Matters to a Vote
                  of Security Holders                                 11   
           Item 5.Other Information                                   11
           Item 6.Exhibits and Reports on Form 8- K.                  11  
      Signatures                                                      12





                             -2-
<PAGE>



                INTERNATIONAL DESIGN GROUP, INC 

                       AND SUBSIDIARIES

                CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                        NOVEMBER 30,        FEBRUARY 29,
ASSETS                                     1996                1996
-------------------------------        --------------      --------------
CURRENT ASSETS:
<S>                                     <C>                 <C>
Cash and Cash Equivalents                $   142,270         $   130,679 
Trading Securities                                 0             129,188 
Finance Receivables, less allowance
 for doubtful accounts of $ 710,000
 and $591,000 and unearned income of
 $ 894,000  and $542,000                  12,949,324           8,149,416 
Drafts receivable                            408,408             312,793 
Current maturities of notes receivable       168,973             171,515 
Prepaid expenses and other                    30,638              18,316
                                          ----------           ---------
    TOTAL CURRENT ASSETS                  13,644,613           8,911,907 
                                          ----------           ---------

PROPERTY AND EQUIPMENT- less
 accumulated depreciation of 
 $ 98,579  and  $68,720                      154,401              91,628 

NOTES  RECEIVABLE -  
 less current maturities                     169,620             189,579 

OTHER ASSETS, 
 less accumulated amortization
 of $ 19,000 and $16,000                      26,951              22,945 
                                             -------             -------
                                         $14,050,585          $9,216,059 
                                          ==========           =========
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable, accrued expenses 
 and other                                  $510,486            $230,234 
Drafts Payable                               719,126             308,130 
Notes payable                                276,850             267,850 
Liability under options sold                       0              25,469 
Notes Payable to Directors                   500,000           1,500,000 
                                            --------           ---------
    TOTAL  CURRENT LIABILITIES             2,006,462           2,331,683 
                                           ---------           ---------
Notes payable to bank                      9,289,473           4,263,610 
                                           ---------           ---------
TOTAL LIABILITIES                         11,295,935           6,595,293 


STOCKHOLDERS' EQUITY:

Common stock $.05 par, shares 
 authorized  10,000,000; 3,768,401 
 issued and 3,744,849 outstanding            188,420            188,420 
ADDITIONAL PAID IN CAPITAL                 5,837,706          5,837,706 
DEFICIT                                   (3,204,687)        (3,338,571)
TREASURY STOCK ( 23,552 shares at cost )      (8,289)            (8,289)
COMMON STOCK SUBSCRIPTIONS RECEIVABLE        (58,500)           (58,500)
                                           ---------          ---------
    TOTAL STOCKHOLDERS' EQUITY             2,754,650          2,620,766 
                                           ---------          ---------
                                         $14,080,585         $9,216,059 
                                          ==========          =========
</TABLE>                  

      See Notes to Condensed Financial Statements




                                 -3-
<PAGE>






                      INTERNATIONAL DESIGN GROUP, INC 

                             AND SUBSIDIARIES

                   CONSOLIDATED  STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                      NINE MONTHS ENDED NOVEMBER 30,
                                       1996                  1995
                                    ----------            ----------

REVENUES:
<S>                               <C>                    <C>
Finance charge income              $   1,870,504,         $   1,157,032 
Origination fees                         774,947                577,999 
Late fees and other charges              689,191                512,791 
Interest income and Other                 56,716                 83,643 
                                        --------               --------
                                       3,391,358              2,331,465 
                                       ---------              ---------
EXPENSES

General and administrative 
 expenses                                958,563                849,646 
Sales and marketing                      678,130                368,085 
Provision for doubtful accounts          999,672                502,599 
Interest expense                         497,940                275,728 
Interest expense to Directors             90,313                123,664 
Depreciation and amortization             32,856                 26,500 
                                        --------                -------
                                       3,257,474              2,146,222 
                                       ---------              ---------

NET INCOME                              $133,884               $185,243 
                                        ========               ========
Net Income per Common Share:

Primary:                                   $0.04                  $0.06 
Fully Diluted:                             $0.04                  $0.05 

Computation Of Fully Diluted 
 Earnings:

Net Income                              $133,884               $185,243 
Less:Preferred Dividends                       0                 (6,750)
                                        --------                -------
Primary net income                       133,884                178,493 
Assumed conversions:
 Preferred dividends eliminated                0                  6,750 
                                         -------                -------        
Fully diluted earnings                  $133,884               $185,243 
                                         -------                -------

Average Number of Common Shares
Primary                                3,793,063              3,093,825 
Fully Diluted                          3,793,063              3,593,825 

</TABLE>



         See Notes to Condensed Financial statements




                              -4-
<PAGE>



                     INTERNATIONAL DESIGN GROUP, INC 

                           AND SUBSIDIARIES

                   CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                     THREE MONTHS ENDED NOVEMBER 30
                                       1996                  1995
                                   -----------            ----------
REVENUES:
<S>                                <C>                    <C>
Finance charge income               $  706,770             $  408,492 
Origination fees                       316,325                202,382 
Late fees and other charges            271,780                177,046 
Interest income and Other               25,037                  1,549 
                                      --------               --------
                                     1,319,912                789,469 
                                     ---------               --------

EXPENSES

General and administrative 
 expenses                              345,691                304,601 
Sales and marketing                    302,524                113,514 
Provision for doubtful accounts        419,539                185,476 
Interest expense                       198,713                105,178 
Interest expense to directors           15,938                 45,399 
Depreciation and amortization           11,500                 10,000 
                                      --------               --------
                                     1,293,905                764,168 
                                     ---------               --------
NET INCOME                              26,007                 25,301 
                                     =========               ========

Net Income per Common Share:
Primary:                                 $0.01                  $0.01 
Fully Diluted;                           $0.01                  $0.01 


Computation Of Fully Diluted 
 Earnings:
Net Income                              26,007                 25,301 
Less:Preferred Dividends                                       (2,250)
                                       -------                -------
Primary net income                      26,007                 23,051 
                                       -------                -------
Assumed conversions:

Preferred dividends eliminated               0                  2,250 
                                       -------                -------

Fully diluted earnings                 $26,007                $25,301 
                                       -------                -------
Average Number of Common Shares

Primary                              3,793,063              3,104,434 
Fully Diluted                        3,793,063              3,618,356 
</TABLE>









   See Notes to Condensed Financial Statements




                              -5-
<PAGE>

               INTERNATIONAL DESIGN GROUP, INC 

                      AND SUBSIDIARIES

             CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                  NINE  MONTHS ENDED NOVEMBER 30,
                                    1996                  1995
                                 ---------             ----------  

  OPERATING ACTIVITIES:
<S>                            <C>                    <C>         
Net Income                      $   133,884            $   185,243 
 Adjustments to reconcile 
 net income  to net cash 
 provided by (used in) 
 operating activities:
   Depreciation and 
   amortization                      32,856                 26,500 
   Provision for doubtful 
   accounts                         119,000                152,481 
   Change in operating 
   assets and liabilities:
   Increase in unearned income      352,000                 57,000
   Increase in prepaid expenses 
   & other                          (19,328)                (6,861)
   Decrease in drafts 
   receivable                       (95,615)                24,543
    Increase (Decrease) in 
    accounts payable,accrued
   expenses                         280,252                 36,511
  (Increase) Decrease  
    in drafts payable               410,996                (93,044)
                                  ---------                -------
   Net cash provided by 
    operating  activities         1,214,045                382,373 
                                  ---------                -------

    INVESTING ACTIVITIES:

Premium finance loans - 
 net of writeoffs               (26,147,794)           (16,596,528)
Payments received on 
 premium finance loans           20,876,886             13,818,175 
Increase in notes receivable       (127,013)              (104,508)
Payments received on notes 
 receivable                         149,514                 67,657 
Capital expenditures                (92,629)               (23,096)
Decrease in Marketable 
 Securities                         129,188                 19,151 
Increase (Decrease) in 
 liability under options 
 sold                               (25,469)               (27,901)
                                  ---------              ---------
 Net Cash Used In  
 Investing Activities            (5,237,317)            (2,847,050)
                                  ---------              ---------
  FINANCING ACTIVITIES

Increase in notes payable 
 to bank                         35,392,802              3,268,000 
Paydowns in notes payable 
 to bank                        (30,366,939)              (767,000)
Increase in notes payable
to Directors                              0                350,000 
Paydowns to notes payable 
 to Directors                    (1,000,000)                     0 
Preferred dividends paid                  0                 (6,750)
Purchase of treasury shares               0                (18,362)
Net Cash (Used In) Provided 
 by Financing Activities          4,034,863              2,842,738 
                                  ---------              ---------
Increase in notes payable             9,000                 16,850

NET INCREASE IN CASH
 AND CASH EQUIVALENTS                11,591               $378,061 
                               

CASH AND CASH EQUIVALENTS,

   beginning of the period          130,679                306,162 
                                   --------                -------

  CASH AND CASH EQUIVALENTS, 
   end of period                   $142,270               $684,223 
                                   ========               ========
</TABLE>



   See Notes to Condensed Financial Statements




                                -6-
<PAGE>



International Design Group, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)


NOTE A -- Basis of Presentation
-----------------------------------------------
The accompanying unaudited condensed consolidated financial statements have 
been prepared in accordance with generally accepted accounting principles 
for interim financial information and with the instructions to Form 10-Q 
and Article 10 of Regulation S-X.  Accordingly, they do not include all of 
the information and footnotes required by generally accepted accounting 
principles for complete financial statements.  In the opinion of management, 
all adjustments (consisting of normal recurring accruals) considered necessary 
for a fair presentation have been included.  Operating results for the nine 
month period ended November 30, 1996 are not necessarily indicative of 
the results that may be expected for the year ending February 28, 1997.  For 
further information, refer to the financial statements and footnotes thereto 
included in the Company's annual report on Form 10-K for the year ended 
February 29, 1996.

The accompanying financial statements include the Company, its wholly owned 
subsidiaries Finco Financial Corporation, Eagle Premium Finance, Inc., QRS 
Acquisition, Inc., Reserve Funding Corporation, VoiceSoft Corporation and 
Federal Funding Corporation. All intercompany transactions and balances have 
been eliminated in consolidation.

 









                               -7-

<PAGE>








PART I - ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF 
OPERATIONS
Results of Operations - General
-------------------------------
Revenues increased to  $3,391,358 during the nine months ended November 30, 
1996 as compared to $2,331,465 during the comparable period in 1995 as a 
result of the Company's growth in the insurance premium finance business. 
Insurance premiums financed increased to $26.7 million in 1996 compared to 
$16.6 million for the same period in 1995. The number of contracts financed 
increased to 46,900 during 1996 as compared to 31,800 in 1995. This increase 
resulted  from the expansion of the Company's premium finance business to 
South Carolina as well as the  increased contract volume in Florida.  In 
September of 1996, as a result of lower than expected profits, the Company 
was no longer accepting business in South Carolina or Maryland.

The following table reflects the company's expenses as a percentage of 
revenues for the nine months ended November 30,: 
               
                                            1996             1995
                                           -------          -------
<TABLE>
<CAPTION>
<S>                                         <C>              <C>
   General and Administrative Expenses       28%              36%
   Sales and Marketing                       20%              16%
   Depreciation and Amortization              1%               1%
   Provision for Doubtful Accounts           30%              22%
   Interest Expense                          17%              17%
   Total Expenses                            96%              92%
   Net Income                                 4%               8%
</TABLE>
General and administrative expenses, as a percentage of revenue, decreased as 
a substantial portion of these expenses are fixed and do not directly 
correlate to revenue.  The provision for doubtful accounts has increased 
substantially as the Company has been accepting lower down payments on its 
finance agreements in an effort to compete effectively. Additionally, the 
Company expanded its finance operations to South Carolina and Maryland 
where the average down payment on finance contracts is significantly lower 
than in Florida. These lower down payments translate into higher bad debt 
write-offs when an insurance contract is canceled.  In determining the 
provision for doubtful accounts, management takes into account factors such 
as its average down payment rate, cancellation rate, unrefunded canceled 
contracts, specific problems with insurance agents, and financial condition 
of insurance companies among other factors.  

Until July 1, 1996, there was a statute in Florida which prohibited insurance 
premium finance companies from rebating a portion of the interest or 
origination fees to insurance brokers in an effort to induce the brokers to 
refer finance business to the Company. This prohibition expired on July 1, 
1996. This has resulted in the Company's costs increasing as the Company, in 
an effort to maintain  its market share, was forced to rebate a portion of its 
finance charges and origination fees to the insurance brokers. This may have 
a negative impact on future profitability.

Interest expense as a percentage of revenue remained constant even with 
higher borrowing due to a more favorable interest rate with the Company's 
lending bank.  This is reflected by a higher interest Margin as shown below.
                                               1996             1995
                                              ------          -------
<TABLE>
<CAPTION>
<S>                                       <C>                <C>
Finance charge income                      $ 1,870,504        $1,157,032
Interest expense                               588,253           399,392 
Net interest margin                          1,282,251           757,640    
Margin Percent                                    69%               65%  
</TABLE>



                                 -8-
<PAGE>


PART I - ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF 
OPERATIONS (Cont'd)

                                   
Overall, net income decreased to approximately $154,000 for the nine months 
ended November 30, 1996 as compared to $185,000 during the same period in 
1995. This decrease in net income is primarily attributable to a decrease in 
income from the Companys' premium finance operations.  Increased bad debt, 
as well as higher marketing fees have both caused signifigantly lower profit 
margins.

The Company recorded net income of $26,007 for the three months ended November 
30, 1996 as compared to $25,301 during the comparable period in 1995.  
Although the finance volume was signifigantly higher in 1996, decreased profit 
margins as discussed above caused income to remain the same.

   
  
 Liquidity and Capital Resources
 -------------------------------
The Company's working capital position at November 30, 1996 increased to 
$11,723,151 as compared to $6,580,224 at February 29, 1996. This increase 
was due primarily to an increased level of premium finance activity during 
the period which was funded by long term debt.

The Company increased borrowings under its bank revolving line of credit by 
approximately $5.0 million between February 29, 1996 and November 30, 1996.  
This increase resulted from an increase in premium finance loans  during the 
period. Finance receivables increased to approximately $13.0 million at 
August 31, 1996 from approximately $8.1 million at February 29, 1996. 

As of November 30, 1996, the Company's revolving credit arrangements are 
summarized as follows:

Description                            Lender   Loan Balance  Expiration Date
-----------                            ------   ------------  ---------------
$10,000,000 Revolving Credit Agreement  Bank    $ 9,289,473    Feb. 23, 1999
$1,000,000 Revolving Credit Agreement  Chairman $   500,000       On Demand

During June 1996, the Company repaid $500,000 of the $1 million revolving 
credit agreement with the Company's Chairman as well as the $500,000  
revolving credit agreement with one of the Company's Directors. These 
repayments were funded with the Company's Revolving Credit Agreement with a 
Bank.  Both the revolving credit agreements with the Company's Chairman and 
one of the Company's Directors expired in July 1996.  The agreement with the 
Chairman was extended on a month to month basis.  The agreement with the 
Director was not extended.

The Company extended its line of credit with a bank to $10.0 million in 
August 1996 with an option to increase it to $11.0 million.   The new 
agreement, which matures in 1999, also requires the Company to maintain 
certain financial ratios.  Borrowings under the line are based on eligible 
finance receivables, interest is payable monthly at the Company's choice of 
LIBOR plus 3.25% or the bank's prime rate plus 1.25%.  

As part of the Company's investment activities, the Company sells put options.  
Theseoptions give the purchaser the right to sell to the Company a certain 
security at a fixed price through a certain date.  These options involve a 
high degree of risk because if the value were to substantially decrease on a 
security which the Company sold put options on, the loss to the Company could
greatly exceed the proceeds of the sale of the option.

It is the opinion of management that the Company will have sufficient funds 
to satisfy its cash requirements for at least the next 12 months .



                               -9-
<PAGE>




PART I - ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Cont'd)





Inflation and Foreign Currency Fluctuations:
--------------------------------------------
Presently, inflation and foreign currency fluctuations do not have any 
adverse effect on the Company's business.  However, inflation would have an 
adverse effect on the Company as its cost of money would increase while the 
maximum interest rates the Company is allowed to charge are set by state law.


























                                    -10.-
<PAGE>


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
     NONE  
       




























                                  -11-
<PAGE>



                                  
     SIGNATURE


Pursuant to the requirements of the Securities and Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.



     
     
(Registrant)                          INTERNATIONAL DESIGN GROUP, INC.
BY (Signature)                        /s/ David Raymond                   
(Date)                                January 14, 1997               
(Name and Title)                      David Raymond, President and
                                      Chief Financial Officer





















                                  -12-