UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington D. C. 20549

                                   FORM 10-QSB

(X) Quarterly  report  pursuant to Section 13 or 15(d) of the  Securities  and
    Exchange Act of 1934.

                       For the quarterly period ended March 31, 2000.

( ) Transition report pursuant to Section 13 or 15(d) of the Exchange Act for
     the transition period from _________________ to ____________ .

                         Commission File Number: 0-30492

                          DIVERSIFIED RESOURCES GROUP, INC.
                         ---------------------------------
                 (Exact name of registrant as specified in charter)

         Utah                                       84-0771180
         ----                                       ----------
(State of Incorporation)                           (I.R.S. Employer I.D. No)

                    355 Interstate Blvd., Sarasota, Fl 34232
                    ----------------------------------------
                    (Address of Principal Executive Offices)

                                 (941) 923-1949
                                 --------------
              (Registrant's Telephone Number, Including Area Code)

Check whether the registrant:  (1) has filed all reports required to be filed by
Section 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 ( )

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
stock as of April 12, 2000.

                            92,075,831 Common Shares

Transitional Small Business Disclosure Format:

                                 YES ( ) NO (X)



                                       1
<PAGE>


                        DIVERSIFIED RESOURCES GROUP, INC.

                              INDEX TO FORM 10-QSB


PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements (unaudited)

           Balance Sheet as of December 31, 2000 and March 31, 2000 ...........3

           Statements of Operations for the three months
             ended March 31, 2000 and 1999 ....................................5

           Statement of Stockholders' Equity (Deficit) for the three
             months endedMarch 31, 2000........................................6

           Statements of Cash Flows for the March 31, 2000 and 1999 ...........8

           Notes to Financial Statements .....................................10

Item 2.    Management's Discussion and Analysis of Financial Condition and
           Results of Operation ..............................................20

PART II.   OTHER INFORMATION

Item 1.    Legal Proceedings..................................................23
Item 2.    Changes in Securities..............................................23
Item 3.    Defaults Upon Senior Securities....................................23
Item 4.    Submission of Matters to a Vote of Securities Holders..............23
Item 5.    Other Information..................................................23
Item 6.    Exhibits and Reports on Form 8-K...................................23

           Signatures.........................................................24


                                       2
<PAGE>

               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                           Consolidated Balance Sheets

ASSETS

                                                   March 31,      December 31,
                                                     2000             1999
                                                 ------------    -------------
                                                 (Unaudited)

CURRENT ASSETS

  Cash                                           $       789     $      3,565
  Inventory                                           13,812           14,891
  Accounts receivable                                  1,182            5,571
  Prepaid expenses, net                                  899            8,433
  Undeposited funds                                        -            1,080
                                                 ------------    -------------
     Total Current Assets                             16,682           33,540
                                                 ------------    -------------

FIXED ASSETS (Note 2)

  Computers                                           41,238           41,238
  Test equipment                                       1,569            1,569
  Office equipment                                    20,380           20,380
  Software                                            32,475           32,475
  Accumulated depreciation                           (88,685)         (83,145)
                                                 ------------    -------------

     Net Fixed Assets                                  6,977           12,517
                                                 ------------    -------------

OTHER ASSETS

  Deposits on land, net (Note 3)                           -                -
                                                 ------------    -------------

     Total Other Assets                                    -                -
                                                 ------------    -------------

     TOTAL ASSETS                               $      23,659    $     46,057
                                                 ============    =============

See Notes to Financial Statements


                                       3
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                     Consolidated Balance Sheets (Continued)


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                   March 31,      December 31,
                                                     2000             1999
                                                 ------------    -------------
                                                  (Unaudited)
CURRENT LIABILITIES

  Cash overdraft                                 $       816     $        987
  Accounts payable - trade                            38,982           75,446
  Accounts payable - related party (Note 8)           78,705           58,078
  Accrued expenses (Note 4)                           63,782           94,308
  Current portion of long-term debt (Note 7)          10,062           19,858
  Notes payable - related party (Note 8)             726,973          375,991
                                                 ------------    -------------

     Total Current Liabilities                       919,320          624,668
                                                 ------------    -------------

LONG-TERM DEBT (Note 7)                               43,065           48,018
                                                 ------------    -------------

     Total Liabilities                               962,385          672,686
                                                 ------------    -------------

COMMITMENTS AND CONTINGENCIES (Note 3)

STOCKHOLDERS' EQUITY (DEFICIT)

  Preferred stock, $0.001 par value,
     1,000,000 shares authorized,
     -0- shares issued and outstanding                     -                -
  Common stock, $0.001 par value, 100,000,000
     shares authorized;  92,075,831 and
     92,075,831  issued and outstanding,
     respectively                                     92,076           92,076
  Additional paid-in capital                       6,326,798        6,326,798
  Accumulated deficit prior to development stage  (4,512,614)      (4,512,614)
  Accumulated deficit from inception of the
     development stage on December 31, 1998       (2,844,986)      (2,532,889)
                                                 ------------    -------------

     Total Stockholders' Equity (Deficit)           (938,726)        (626,629)
                                                 ------------    -------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
        EQUITY (DEFICIT)                         $    23,659     $     46,057
                                                 ============    ============


See Notes to Financial Statements


                                       4
<PAGE>

               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                         From
                                                                         Inception of the
                                                                         Development Stage on
                                                                         December 31,
                                           For the Three Months Ended    1998 Through
                                                 March 31,               March 31,
                                           --------------------------    -------------
                                               2000           1999           2000
<S>                                       <C>             <C>             <C>
                                          -----------     ----------      ---------
REVENUES

  Sales, net                               $   21,903      $       -       $  41,388
  Cost of sales                                 9,905              -          20,211
                                           -----------     ----------      ----------

     Gross Margin                              11,998              -          21,177
                                           -----------     ----------      ----------

OPERATING EXPENSES

  General and administrative                   73,075              -         524,933
  Depreciation and amortization                 5,540              -          28,407
                                           -----------     ----------      ----------

     Total Operating Expenses                  78,615              -         553,340
                                           -----------     ----------      ----------

LOSS FROM OPERATIONS                          (66,617)             -        (532,163)
                                           -----------     ----------      ----------

OTHER INCOME (EXPENSE)

  Allowance - land                           (229,686)             -        (689,058)
  Interest expense                            (15,794)             -         (22,944)
  Other income                                      -              -           5,400
                                           -----------     ----------      ----------

     Total Other Income (Expense)            (245,480)             -        (706,602)
                                           -----------     ----------      ----------

LOSS BEFORE DISCONTINUED OPERATIONS          (312,097)             -      (1,238,765)
                                           -----------     ----------      ----------

LOSS FROM DISCONTINUED OPERATIONS                   -       (187,525)     (1,606,221)
                                           -----------     ----------      ----------
LOSS BEFORE INCOME TAXES                     (312,097)      (187,525)     (2,844,986)

INCOME TAX EXPENSE                                  -              -               -
                                           -----------     ----------      ----------

NET LOSS                                  $  (312,097)     $(187,525)    $(2,844,986)
                                           ===========     ==========      ==========

BASIC LOSS PER SHARE
  Loss before discontinued operations     $     (0.00)     $       -
  Discontinued operations                           -          (0.00)
                                           -----------     ----------

BASIC LOSS PER SHARE                      $     (0.00)     $   (0.00)
                                           ===========     ==========

WEIGHTED AVERAGE SHARES OUTSTANDING        92,075,831     42,750,569
                                           ===========     ==========
</TABLE>

See Notes to Financial Statements


                                       5
<PAGE>



               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
            Consolidated Statements of Stockholders' Equity (Deficit)

<TABLE>
<CAPTION>
                                                                   Additional     Stock
                                     Common Stock                  Paid-in        Subscription     Accumulated
                                  Shares            Amount         Capital        Receivable         Deficit
                                 --------          --------       -----------    -------------    ------------
<S>                              <C>               <C>            <C>            <C>              <C>
Balance, December 31, 1997    19,091,973          $  19,092        $3,332,971     $ (115,000)     $(9,779,570)

Adjustment for reduction of
 subscription price                    -                  -          (103,500)       103,500                -

Common stock issued for cash
 at $0.05 per share            4,707,504              4,708           230,667              -                -

Common stock issued for
 settlement of debt at
 $0.05 per share              11,952,380             11,952           585,666              -                -

Common stock issued for
 subscriptions receivable
 at $0.05 per share            5,292,496              5,292           259,333       (264,625)               -

Net income for the year
 ended December 31, 1998               -                  -                 -              -        5,266,956
                                 --------          --------       -----------    -------------    ------------

Balance, December 31, 1998    41,044,353          $  41,044        $4,305,137     $ (276,125)     $(4,512,614)
                                 --------          --------       -----------    -------------    ------------
</TABLE>
See Notes to Financial Statements


                                       6
<PAGE>



               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
      Consolidated Statements of Stockholders' Equity (Deficit) (Continued)

<TABLE>
<CAPTION>
                                                                   Additional      Stock
                                         Common Stock              Paid-in         Subscription    Accumulated
                                    Shares          Amount         Capital         Receivable      Deficit
                                  -----------     ----------      ------------    --------------   -----------
<S>                               <C>             <C>             <C>             <C>              <C>
Balance, December 31, 1998         41,044,353       $41,044        $4,305,137       $(276,125)     $(4,512,614)

Receipt of stock subscription
 receivable                                 -             -                 -         276,125                -

Common stock issued for services
 at $0.031 per share                2,208,400         2,208            66,252               -                -

Common stock issued for services
 at $0.03 per share                 4,390,000         4,390           127,310               -                -

Common stock issued for services
 at $0.044 per share                  242,000           242            10,406               -                -

Common stock issued for services
 at $0.35 per share                 2,031,478         2,032            69,070               -                -

Common stock issued for services
 at $0.035 per share                  840,000           840            28,560               -                -

Common stock issued for services
 at $0.033 per share                1,880,000         1,880            60,160               -                -

Common stock issued for cash,
 services and forgiveness of debt
 at $0.044 per share               30,439,600        30,440         1,308,903               -                -

Common stock issued for services
 at $0.04 per share                 9,000,000         9,000           351,000               -                -

Net (loss) for the year
 ended December 31, 1999                    -             -                 -               -       (2,532,889)
                                  -----------     ----------      ------------    --------------   -----------

Balance, December 31, 1999         92,075,831        92,076         6,326,798               -       (7,045,503)

Net loss for the period
 ended March 31, 2000
 (unaudited)                                -             -                 -               -         (312,097)
                                  -----------     ----------      ------------    --------------   -----------

Balance, March 31, 2000
 (unaudited)                                -     $       -       $         -     $         -      $(7,357,600)
                                  ===========     ==========      ============    ==============   ===========
</TABLE>


See Notes to Financial Statements


                                       7
<PAGE>

               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                          From
                                                                                    Inception of the
                                                                                       Development
                                                                                        Stage on
                                                                                      December 31,
                                                    For the Three Months Ended        1998 Through
                                                          March 31,                    March 31,
                                                2000                  1999               2000
                                             ----------            ----------        --------------
<S>                                          <C>                   <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

  Net loss                                   $(312,097)            $(187,525)         $(2,844,986)
  Adjustments to reconcile net loss
   to net cash used in operating
   activities:
   Depreciation and amortization                 7,980                 7,236               30,847
   Stock issued for services                         -                     -            1,425,300
  Allowance of deposits on land                229,686                     -              689,058
   Stock subscription received by
     services and forgiveness                        -                     -              276,125
  Changes in assets and liabilities:
   (Increase) decrease in inventory              1,079               (20,060)             (13,612)
   (Increase) decrease in accounts receivable    4,389               (20,874)              (1,182)
  (Increase) decrease in interest receivable         -                (6,406)                   -
   (Increase) decrease in prepaid expenses       7,534                   203                2,284
   (Increase) decrease in other assets           1,080                 6,278                5,045
  Increase (decrease) in cash overdraft           (171)                1,455              (16,665)
   Increase (decrease) in accounts payable     (15,837)              104,371               33,818
   Increase (decrease) in accrued expenses     (30,526)               10,191             (125,607)
                                             ----------            ----------        --------------
Net Cash Provided (Used) by Operating
   Activities                                 (106,883)             (105,131)            (539,575)

CASH FLOWS FROM INVESTING ACTIVITIES:

  (Increase) in deposits on land              (229,686)                    -             (689,058)
                                             ----------            ----------        --------------

   Net Cash Used by Investing Activities      (229,686)                    -             (689,058)
                                             ----------            ----------        --------------
CASH FLOWS FROM FINANCING ACTIVITIES:

  Proceeds from notes payable -
   related parties                             341,186                     -              717,177
  Payments on notes payable                     (7,393)                    -              (40,607)
  Collections from related parties                   -                 6,984                6,984
  Issuance of common stock for cash                  -                95,672              543,393
                                             ----------            ----------        --------------

Net Cash Provided by Financing Activities     $333,793             $ 102,656           $1,226,947
                                             ----------            ----------        --------------
</TABLE>

See Notes to Financial Statements


                                       8
<PAGE>

               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                Consolidated Statements of Cash Flows (Continued)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                        From
                                                                                  Inception of the
                                                                                     Development
                                                                                       Stage on
                                                                                     December 31,
                                                For the Three Months Ended           1998 Through
                                                         March 31,                     March 31,
                                                2000                  1999                2000
                                             ----------            ----------        --------------
<S>                                          <C>                   <C>                <C>
Net Increase (Decrease) in Cash              $  (2,776)            $  (2,475)         $  (1,686)

CASH AT BEGINNING OF PERIOD                      3,565                 2,475              2,475
                                             ----------            ----------        --------------

CASH AT END OF PERIOD                        $     789             $       -          $     789
                                             ==========            ==========        ==============

CASH PAID FOR:

  Interest expense                           $       -             $       -          $       -
  Income taxes                               $       -             $       -          $       -

NON CASH FINANCING ACTIVITIES:

  Common stock issued in settlement of
   debt                                      $       -             $       -          $  90,000
  Common stock issued for subscriptions
   receivable                                $       -             $       -          $       -
  Common stock issued for fixed asset        $       -             $       -          $   5,000

</TABLE>

See Notes to Financial Statements


                                       9
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

         The  Company  was  incorporated  under the laws of the State of Utah on
         July 31,  1984.  The Company has a  wholly-owned  Delaware  subsidiary,
         named Data 1, Inc., a wholly-owned subsidiary named Memory 1, Inc., and
         a wholly-owned subsidiary named Cordless Power Corporation. The Company
         changed its name to Diversified  Resources Group, Inc. in May 1999. The
         Company  has not  paid  dividends.  Dividends  that  may be paid in the
         future will  depend on the  financial  requirements  of the Company and
         other relevant  factors.  The Company is considered a development stage
         company  per  SFAS  No.  7  because  it  has  not  substantially  began
         operations.

         Memory 1, Inc. (Mem 1) was organized February 6, 1996 under the laws of
         the State of  Florida  to engage in the  business  which  includes  the
         manufacturing  and marketing of computer memory  devices.  During 1999,
         the Company  discontinued  the  computer  memory  business and Mem 1 is
         currently inactive.

         Cordless Power  Corporation was organized April 19, 1999 under the laws
         of the State of Florida to engage in any  lawful  act or  activity  for
         which  corporations may be organized under the General  Corporation Law
         of Florida.  Cordless Power  Corporation  is currently  engaging in the
         business of retailing cellular telephone batteries and accessories.

         On May 17, 1999, the  shareholders of the Company  approved and amended
         the  Articles of  Incorporation  to increase the  Company's  authorized
         common shares to 100,000,000.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         a. Accounting Method

         The Company's  consolidated financial statements are prepared using the
         accrual method of  accounting.  The Company has adopted a calendar year
         end.

         b. Basic Income (Loss) Per Share

         The  computation  of basic  income  (loss) per share of common stock is
         based on the weighted average number of shares  outstanding at the date
         of the consolidated financial statements as follows:

                                                      For the Three Months Ended
                                                                March 31,
                                                         2000            1999
                                                      ------------   -----------
         Numerator:
           Loss before discontinued operations        $  (312,097)   $         -
           Discontinued operations                    $         -    $    12,475

         Denominator (weighted average number
           of shares outstanding)                      92,075,831     42,750,569

         Income (loss) per share
           Net loss before discontinued operations    $     (0.00)   $         -
           Net income (loss) discontinued operations  $         -    $      0.00
                                                      ------------   -----------
                                                      $     (0.00)   $      0.00
                                                      ============   ===========

                                       10
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

         b.  Basic Income (Loss) Per Share (Continued)

         Dilutive  loss per share is not  presented as there are no  potentially
         dilutive items outstanding.

         c.  Income Taxes

         At March 31, 2000, the Company had a net operating loss carryforward of
         approximately  $7,358,000  that may be offset  against  future  taxable
         income in various  years through 2020. No tax benefit has been reported
         in the financial statements because the Company believes there is a 50%
         or greater chance the carryforward will expire unused. Accordingly, the
         potential  tax  benefits  of the  loss  carryforward  are  offset  by a
         valuation allowance of the same amount.

         d. Cash Equivalents

         The Company considers all highly liquid investments and deposits with a
         maturity of three months or less when purchased to be cash equivalents.

         e. Revenue Recognition

         Revenue is recognized  upon  shipment of goods to the  customer.  Sales
         primarily require immediate payment or cash on delivery.

         f.  Restated Consolidated Financial Statements

         Prior period  consolidated  financial  statements have been restated to
         conform with current consolidated financial statement presentation.

         g.  Depreciation

         Property and equipment are stated at cost. Depreciation of property and
         equipment is computed using the straight-line method over the estimated
         useful  lives of the  related  assets,  primarily  from  three to seven
         years.

         h.  Principles of Consolidation

          The December 31, 1999 consolidated  financial statements include those
          of the Company and its wholly-owned  subsidiaries Data 1, Inc., Memory
          1, Inc., and Cordless Power Corporation.  All significant intercompany
          accounts and transactions have been eliminated.


                                       11
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

         i.  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 those estimates.

         j.  Advertising

         The Company  follows the policy of charging the costs of advertising to
         expense as incurred.

         k.  Recent Accounting Pronouncements

         In June 1998, the FASB issued SFAS No. 133,  "Accounting for Derivative
         Instruments and Hedging  Activities" which addresses the accounting for
         derivative   instruments,   including  certain  derivative  instruments
         embedded in other contracts,  and hedging  activities.  SFAS No. 133 is
         effective for all fiscal  quarters of all fiscal years  beginning after
         June 15,  1999 and is not  required  to be applied  retroactively.  The
         adoption  of this  statement  had no material  impact on the  Company's
         financial statements.

         l.  Inventory

         Inventory  is  stated  at the lower of cost  (computed  on a  first-in,
         first-out  basis)  or  market.   The  inventory  consists  of  cellular
         telephone batteries and accessories.

         m.  Long-Lived Assets

         All long-lived  assets are evaluated yearly for impairment per SFAS No.
         121,  "Accounting  for the  Impairment  of  Long-Lived  Assets  and for
         Long-Lived  Assets  to be  Disposed  of."  Any  impairment  in value is
         recognized as an expense in the period when the impairment occurs.


                                       12
<PAGE>




               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999

NOTE 3 - COMMITMENTS AND CONTINGENCIES

         a. Leases

         Effective  June  30,  1999,  the  Company   terminated  its  lease  for
         facilities in Sarasota, Florida it had been leasing on a month-to-month
         basis.  Lease  payments  were  $1,551 per month.  The Company has since
         relocated to a facility  leased by an  affiliate  company and pays rent
         under a consulting agreement with this company.

         b. Employment Contracts

         Effective  August  11,  1996,  the  Company  has  entered  into  5 year
         employment  agreements with the President and Chief Financial  Officer.
         These contracts were terminated in 1999.

         On May 31,  1999,  the Company and the  President  and Chief  Executive
         Officer  of  the  Company  entered  into  a  settlement  of  employment
         agreement,   wherein,   for  certain   considerations,   including  his
         resignation,  he would receive  $100,000 plus continued health benefits
         payable  over a 54 week period.  On July 12, 1999,  the Company and the
         Vice President - Finance and Chief  Financial  Officer  entered into an
         identical agreement (Note 4).

         c.  Real Estate

         On July 31, 1999, the Company entered into an agreement  whereby it was
         assigned the rights to acquire a 607.74 acre tract of undeveloped  land
         in Wake County, North Carolina from Matheny Development, LLC, ("Matheny
         Development"),  a North Carolina limited liability  controlled by James
         M.  Matheny,  one of  the  Company's  directors  for  $21,000,000.  The
         agreement calls for a $100,000  earnest money deposit on signing,  with
         75% of the $21,000,000 purchase price due in cash at July 31, 1999, and
         the  remaining  25%  balance  due in the  form of an  interest  bearing
         promissory  note. As part of the assignment,  the Company agreed to pay
         Matheny Development $2,100,000 as liquidated damages if the purchase is
         not  closed by the due date plus  extensions,  unless the  contract  is
         breached by Matheny  Development.  If Matheny Development  breaches the
         contract,  the Company has the option of pursuing all necessary actions
         to obtain specific  performance by Matheny Development or to assign the
         contract  to  Matheny   Development  and  pay  liquidated   damages  of
         $2,100,000.  The  assignment  also  provides  that  the  Company  pay a
         non-refundable  extension  fee of  $76,562  per  month  to  extend  the
         contract  beyond the July 31, 1999 closing  date.  The Company has paid
         $689,058 in extension payments as of December 31, 1999 and has extended
         the agreement through August 2000.

         An  allowance  of $689,058  has been set up against  these land deposit
         payments due to  uncertainty  of the Company  being able to finance the
         transaction by the August 2, 2000 due date.



                                       13
<PAGE>



               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999

NOTE 3 - COMMITMENTS AND CONTINGENCIES (Continued)

         d.  Consulting Fee Agreement

         On July 7, 1999,  the Company  entered into a consulting  fee agreement
         with United Funding Solutions,  Inc. (United) wherein the Company would
         pay United  $100,000  per year for 5 years.  Additionally,  the Company
         issued United  10,000,000  shares of common stock valued at the trading
         price of $0.032 per share, or $32,000.  Pursuant to the agreement,  the
         Company could be required to issue up to 90,000,000  additional  shares
         of common  stock.  The stock  would be issued at a formula of one share
         for each dollar of gross profit earned by the Company.

NOTE 4 - ACCRUED EXPENSES

         The Company's accrued expenses is comprised of the following items:
                                                      March 31,     December 31,
                                                        2000            1999
                                                     -----------    ------------
         Accrued directors fees                      $    5,000      $    4,000
         Settlement agreement - former CFO               27,692          48,402
         Settlement agreement - former President         10,385          34,615
         Accrued interest payable                        20,504           7,150
         Other                                              201
                                                     -----------    ------------

              Total                                  $   63,782      $   94,308
                                                     ===========    ============

         The  settlement  agreements  for the former  President and CFO call for
         bi-weekly  payments  of $3,462 to be made to each  party  until paid in
         full.

NOTE 5 - GOING CONCERN

         The Company's  consolidated  financial  statements  are prepared  using
         generally accepted accounting  principles applicable to a going concern
         which  contemplates  the  realization  of  assets  and  liquidation  of
         liabilities in the normal course of business.  The Company has incurred
         losses from its  inception  through March 2000.  Management  intends to
         restructure  its product lines to generate  desired  levels of revenues
         and profit as it emerges from the bankruptcy  proceedings  discussed in
         Note 10.

         The Company's  cellular  telephone  battery and  accessory  project has
         proven  to  lack  significant   enough  profit  margins  to  support  a
         significant distribution system and as a result is being de-emphasized.

         The most  promising  area is real  estate  operations.  The  Company is
         pursuing a strategy  of closing on real  estate  without a  significant
         down payment and relying on parcel sales to cover interest, development
         costs and shortfalls in operations.  In the event the Company is unable
         to close on the land it faces significant penalties.

         The  Company  is also  pursuing  a  highly  speculative  and  uncertain
         acquisition.  The  Company  estimates  it would need  between $2 and $5
         million to complete the  acquisition,  $2.5 million for real estate and
         $1 million for overhead and battery operations.



                                       14
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999


NOTE 5 - GOING CONCERN (Continued)

         The  Company  intends to raise  funding  through the sale of its common
         stock,  but has minimal  funding  agreements in place.  In the interim,
         management is committed to meeting the minimum  operating  needs of the
         Company over the next 12 months.

NOTE 6 - LOSS FROM DISCONTINUED OPERATIONS

         During September 1999, the Board of Directors of the Company decided to
         discontinue the business that includes the  manufacturing and marketing
         of computer memory devices due to falling margins in the industry.  The
         following is a summary of the loss from discontinued operations:
<TABLE>
<CAPTION>

                                                                              From
                                                                          Inception of the
                                                                            Development
                                                                             Stage on
                                                                           December 31,
                                       For the Three Months Ended         1998 Through
                                                March 31,                   March 31,
                                        2000                  1999            2000
                                    -------------         ------------    --------------
<S>                                 <C>                   <C>             <C>
REVENUES

  Sales, net                        $        -            $        -       $    19,595
  Cost of sales                              -                     -            20,292
                                    -------------         ------------    --------------

     Gross Margin                            -                     -              (697)
                                    -------------         ------------    --------------

EXPENSES

  General and administrative                 -                64,357         1,373,580
  Depreciation and amortization              -                 7,236                 -
                                    -------------         ------------    --------------

     Total Expenses                          -                71,593         1,373,580
                                    -------------         ------------    --------------

LOSS FROM OPERATIONS                         -               (71,593)       (1,374,277)
                                    -------------         ------------    --------------
OTHER INCOME (EXPENSE)

  Interest expense                           -                (3,364)           (5,694)
  Interest income                            -                     -                 -
  Other income                               -                 4,376                 -
  Other expense                              -              (116,944)         (226,250)
                                    -------------         ------------    --------------

     Total Other Income (Expense)            -              (115,932)         (231,944)
                                    -------------         ------------    --------------
</TABLE>


                                       15
<PAGE>



               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999


NOTE 6 - LOSS FROM DISCONTINUED OPERATIONS (Continued)
<TABLE>
<CAPTION>
                                                                                 From
                                                                           Inception of the
                                                                             Development
                                                                              Stage on
                                                                             December 31,
                                    For the Three Months Ended              1998 Through
                                             March 31,                        March 31,
                                        2000                  1999              2000
                                    -------------         ------------    --------------
<S>                                 <C>                    <C>            <C>
INCOME (LOSS) BEFORE INCOME TAXES   $         -           $  (187,525)     $(1,606,221)

INCOME TAX EXPENSE                            -                     -                -
                                    -------------         ------------    --------------

NET INCOME (LOSS)                   $         -           $  (187,525)     $(1,606,221)
                                    =============         ============    ==============
</TABLE>

          No  income  tax  benefit  has  been   attributed   to  the  loss  from
          discontinued operations.

NOTE 7 - LONG-TERM DEBT

               Long term debt at March 31, 2000 and December 31, 1999  consisted
               of the following:
                                                       March 31,    December 31,
         Various notes payable given in settlement       2000            1999
         of accounts payable, non-interest bearing,   -----------   ------------
         quarterly payments of $7,405, unsecured.     $   62,923    $    67,876

         Less current maturities                         (19,858)       (19,858)
                                                      -----------   ------------

         Long-term debt                               $   43,065    $    48,018
                                                      ===========   ============

         Aggregate  maturities  required on long-term debt at March 31, 2000 and
         December 31, 1999 are as follows:

              Year                                       Amount        Amount
            --------                                  -----------   ------------
              2000                                    $   14,905     $   19,858
              2001                                        19,858         19,858
              2002                                        19,858         19,858
              2003                                         8,302          8,302
                                                      -----------   ------------

                     Total                            $   62,923     $   67,876
                                                      ===========   ============

         This amount  represents  notes issued under the bankruptcy  proceedings
         discussed in Note 10 as payment for certain amounts due as provided for
         in the Company's  Plan of  Reorganization.  The notes are  non-interest
         bearing, interest has been imputed at 8% per annum.

         The  balances are shown net of a discount of $33,349.  Amortization  of
         the  discount  amounted  to $2,440 and $5,694  at,  March 31,  2000 and
         December 31, 1999, respectively.


                                       16
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999

NOTE 8 - RELATED PARTY TRANSACTIONS

         Notes Payable

         Tampa Bay Financial, Inc., a related party, loaned the Company $341,186
         and $375,791  during the three months ended March 31, 2000 and the year
         ended December 31, 1999, respectively.  The notes are payable on demand
         and accrue  interest  at 10% per  annum,  unsecured.  Interest  expense
         amounted to $13,354 and $7,150 at March 31, 2000 and December 31, 1999,
         respectively.

         An officer  loaned the Company $200 during 1999. The note is payable on
         demand  and  accrues  interest  at 10% per annum,  unsecured.  Interest
         expense  amounted  to $-0- and $0 at March 31,  2000 and  December  31,
         1999, respectively.

         Accounts Payable

         The Company  owes $20,000 and $58,058 to Tampa Bay  Financial,  Inc., a
         related  party,  for  professional  and consulting  services  performed
         during the three  months  ended March 31, 2000 and  December  31, 1999,
         respectively.

NOTE 9 -  STOCK SUBSCRIPTION RECEIVABLE

          Stock  subscriptions  receivable at December 31, 1998 included amounts
          of $6,250 and $5,250 which  represented  notes given to the Company as
          consideration  for stock options  exercised by the President and Chief
          Executive  Officer,  and  the  Vice  President  -  Finance  and  Chief
          Financial Officer,  respectively.  The balance of $264,625 represented
          an amount  subscribed to by a related party to provide working capital
          to the  Company  while the Company was  emerging  from the  bankruptcy
          proceedings  discussed in Note 10. The notes due from the two officers
          were  liquidated in the  settlement of employment  contracts,  and the
          amount  subscribed to by the related party was received in the form of
          services performed during 1999.

NOTE 10 - REORGANIZATION ITEMS

          On September 24, 1997,  Data 1, Inc. (the  "Debtor")  filed a petition
          for relief  under  Chapter 11 of the  federal  bankruptcy  laws in the
          United  States  Bankruptcy  Court for the Middle  District of Florida,
          Tampa  Division,  Case No.:  97-15827-8P1.  Under Chapter 11,  certain
          claims  against  the  Debtor in  existence  prior to the filing of the
          petitions  for relief  under the  federal  bankruptcy  laws are stayed
          while    the    Debtor     continues     business     operations    as
          debtor-in-possession.  These  claims are  reported in the December 31,
          1997 balance  sheet as  "liabilities  subject to  compromise."  Claims
          secured  against  the  Debtor's  assets  ("secured  claims")  also are
          stayed, although the holders of such claims have the right to move the
          Court for relief from the stay. There are no secured claims.


                                       17
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                      March 31, 2000 and December 31, 1999

NOTE 10 - REORGANIZATION ITEMS (Continued)

          On  June  19,  1998,  the  bankruptcy  court  entered  a  final  order
          confirming  the plan of  reorganization.  The order  provided that the
          creditors  could settle their  pre-petition  claims  pursuant to three
          options.  Option 1 provided  for a note  payable of 10% of the allowed
          claim payable in 17 quarterly payments beginning May 1, 1999. Option 2
          provided  for a  combination  of a note  payable for 5% of the allowed
          claim and shares of common stock for 5% of the allowed claim. Option 3
          provided for shares of common stock for 10% of the allowed claim.

          Pursuant to the  confirmed  plan,  the Company  issued  notes  payable
          totaling  $235,879  with a net present  value of $194,395,  and issued
          11,952,380 shares valued at $597,618 pursuant to the options available
          to the creditors.

          The Company  recognized a gain on  restructuring of debt of $5,956,183
          in 1998.

NOTE 11 - DEVELOPMENT STAGE COMPANY

          The  Company  essentially  has  reverted  to the  status  of a startup
          company as it emerged  from the  bankruptcy  proceedings  discussed in
          Note 10 and will be considered to be a development stage company as it
          commences  its planned  principal  operations  of  retailing  cellular
          telephone batteries and accessories and real estate development.

NOTE 12 - STOCK ISSUANCES

          During  March  1999,  the  Company  issued  2,208,400  shares  of  its
          previously authorized,  but unissued, common stock for services valued
          at $68,460, or $0.031 per share.

          During  April  1999,  the  Company  issued  4,390,000  shares  of  its
          previously authorized but unissued common stock for services valued at
          $131,700, or $0.03 per share.

          During May 1999,  the Company  issued 242,000 shares of its previously
          authorized, but unissued, common stock for services valued at $10,648,
          or $0.044 per share.

          During  June  1999,  the  Company  issued   2,871,478  shares  of  its
          previously authorized,  but unissued, common stock for services valued
          at $100,502, or $0.035 per share.

          During June 1999,  the Company issued 840,000 shares of its previously
          authorized,  but unissued, common stock for services valued at $29,400
          or $0.035 per share.

          During  June  1999,  the  Company  issued   1,880,000  shares  of  its
          previously authorized,  but unissued, common stock for services valued
          at $62,040, or $0.033 per share.

                                       18
<PAGE>


               DIVERSIFIED RESOURCES GROUP, INC. AND SUBSIDIARIES
                             (Formerly Data 1, Inc.)
                          (A Development Stage Company)
                        Notes to the Financial Statements
                      March 31, 2000 and December 31, 1999

NOTE 12 - STOCK ISSUANCES (Continued)

          During  July  1999,  the  Company  issued  30,439,600  shares  of  its
          previously authorized,  but unissued, common stock for services valued
          at $691,949, cash of $543,393, property of $5,000 and debt of $99,000,
          or $0.044 per share.

          During  December  1999,  the Company  issued  9,000,000  shares of its
          previously authorized,  but unissued, common stock for services valued
          at $360,000, or $0.04 per share.

          Stock  issuances  for services and debt during 1999 were valued at the
          trading price on the dates of issue.

NOTE 13 - LEGAL PROCEEDINGS

          The United  States  Securities  and  Exchange  Commission  ("SEC") has
          entered a formal  order of  investigation  styled as "In the matter of
          Diversified  Resources Group,  Inc.  (NY/6573)." On or about September
          30, 1999, the Company  received a subpoena duces teum  requesting that
          the Company  provide  the  Northeast  Regional  Office of the SEC with
          various  documents  regarding  past,  present  and  intended  business
          operations,  financial  statements and underlying  financial  records,
          prior news releases, and other documentation. The Company has provided
          the  documentation  requested and has and intends to continue to fully
          cooperate with this formal order of investigation.



                                       19
<PAGE>




Item 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATION

OVERVIEW

The following  discussion and analysis  should be read in  conjunction  with the
balance  sheet as of March 31, 2000 and the  financial  statements as of and for
the three and three months ended March 31, 2000 and 1999 included with this Form
10-QSB.

We are  considered  to be in the  development  stage  as  defined  in  Financial
Accounting  Standards Board Statement No. 7, and we are currently in the process
of  creating  strategic  relationships  and  acquiring  complementary  operating
companies within the electronic  components industry that have proven management
and  state-of-the-art  technologies..  The results of  operations  for the three
months ended March 31, 2000 are not  necessarily  indicative  of the results for
any future interim period or for the year ending December 31, 2000. We expect to
expand  upon  obtaining   capital  and  financing  for  our  planned   principal
operations.......develop  and  expand our  business.  We  anticipate  that these
expenses  will  continue to increase as our  business is expanded in the future,
and further  anticipates  that these  expenses  will  continue to be incurred in
advance of projected revenue.

Readers   are   referred   to  the   cautionary   statement,   which   addresses
forward-looking statements made by the Company.

RESULTS OF OPERATIONS

The  results of  operations  for the three  months  ended March 31, 2000 are not
necessarily  indicative of the results for any future  interim period or for the
year ending  December 31, 2000. In particular,  we have closed Data 1, Inc., our
computer memory  operation in the summer of 1999. We expect to reinvigorate  the
Company by upon obtaining  capital,  selling off real estate operations to raise
additional cash and financing for our  acquisitions  currently under review.  We
anticipate that operating  expenses will continue to increase as our business is
expanded in the future, and further anticipate that these expenses will continue
to be incurred in advance of projected revenue.

Three Months Ended March 31, 2000 and 1999

We incurred a net loss of  approximately  $ (312,097) for the three months ended
March 31, 2000 as compared  with a net loss of $ (187,525)  for the three months
ended March 31, 1999. The principal  difference between these periods arose from
two nonrecurring items; $230,000 of losses charged to real estate investments in
2000, as opposed to $187,000 of losses from our discontinued  memory division in
1999. We did have  operations in the  rechargeable  battery area in 2000 but did
not occur in 1999, as a result, only limited comparable data is presented.

Our sales and cost of sales for the three  months  ended  March 31,  2000,  were
$21,903 and $9,905 compared to $-0- and $-0- in the corresponding  period of the
prior year when battery  operations had not commenced  yet.  Although there were


                                       20
<PAGE>

improvements resulting from a change in suppliers that increased  profitability,
this  improvement  was not  sufficient  to bring us to  profitability  without a
significant  Increase in sales.  We  incurred  $3,000 of  advertising  costs for
Cordless  Power during the three  months  ended March 31, 2000.  No amounts were
expended in the prior year since battery  operations  did not commence until the
second half of 1999.  However,  during the three months ended March 31, 2000, we
had 88,577 page views  ("hits") and 36,634 daily unique  visitors  ("visits") to
our web site.  We sold 717  batteries in the three month period ending March 31,
2000; a closing rate of 2% of visits.

Our operating expenses consist primarily of general and administrative  expenses
and depreciation and amortization. General and administrative expenses increased
to $73,075  for the three  months  ended  March 31, 2000 from $-0- for the three
months  ended March 31, 1999 (when all  expenses  were  charged to  discontinued
memory  operations),   and  principally  includes  payroll  and  related  taxes;
professional fees for consulting,  business  development,  legal and accounting;
office supplies expense;  travel expense and organizational costs. Most of these
expense are  attributable to overhead costs associated with our headquarters and
operations center, and the additional expenses related to real estate consultant
services,  and  expenses  incurred in the due  diligence  process of  evaluating
Virotest,  an  acquisition  which we have  decided not to pursue.  Salaries  and
commissions,  which consisted entirely of consulting  payments to United Funding
Solutions,  Inc. (a related  party) for the three  months  ended March 31, 2000,
were $25,000.

Other Expenses

The  allowance  for loss on real  estate  increased  to $689,058 as of March 31,
which  represents  the entire  amounts  invested.  This  increase was due to the
monthly  extension  fees paid into the Falls  River Land  Development,  which is
being reserved for since there is no assurance as to the  recoverability  of our
investment. We have made all required payments.

Depreciation and Amortization

Depreciation and amortization  expense includes charges relating to depreciation
of property and equipment,  which consist principally of shipping equipment such
as  switches  and  points  of  presence,  furniture  and  equipment,   leasehold
improvements,  and  amortization  of  intangible  assets  should they arise.  We
depreciate our equipment  over periods  ranging from five (5) to seven (7) years
and  amortize  our  intangible  assets over  periods  ranging  from three (3) to
twenty-five (25) years. Depreciation and amortization expense was $5,540 for the
three month period  ending March 31,  2000,  compared  with $7,236 for the three
month period ended March 31,  1999.  Prior year amounts were  included in income
(loss) from discontinued operations.

Interest

Interest expense was $15,794 during the three months period ended March 31, 2000
compared to $-0- in the corresponding  period of the prior fiscal year, interest
expense  related  primarily to debt undertook to settle with  creditors  arising
from our bankruptcy. We did not incur any significant interest income or expense
and did not capitalize any interest.

Inflation and Deflation

We do not believe that either  inflation or  deflation  will have a  significant
effect on operations for the foreseeable future.

Market Risk Exposure

Because of the Cordless Power  business,  we may be subject to indirect  foreign
currency  exchange  rate risk  relating  to  payments  to  suppliers.  We do not
consider the market risk exposure  relating to foreign  currency  exchange to be
material.

                                       21
<PAGE>

Financial Position, Liquidity and Capital Resources

Our operating  requirements  have  exceeded our cash flow from  operations as we
struggle to build a successful  operating business.  Operating activities during
the  three  months  ended  March  31,  2000  used  cash of  $106,833.  Operating
activities were primarily funded through related party advances.  In addition to
our  operating  requirements  is the  investment  close to $230,000 in the Falls
River Land Development during 2000.

Due to the need for working  capital,  we will continue to seek  additional debt
and/or equity financing from existing  shareholders and other investment capital
resources,  however,  no  assurance  can he given that we will be able to obtain
other commitments. We will require the proceeds of this and subsequent offerings
to expand our operations and finance our future  working  capital  requirements.
Based upon our current plans and  assumptions  relating to our business plan, we
anticipate  that we may need to seek  additional  financing to fund our proposed
acquisition  strategy.  We hope to sell the Falls  River  project in the future,
after  which we  believe  we will be able to pay off  existing  debts and have a
capital base to begin pursuing acquisitions.

CAUTIONARY STATEMENT

This Form 10-QSB, press releases and certain information  provided  periodically
in writing or orally by the Company's  officers or its agents contain statements
which constitute forward-looking statements within the meaning of Section 27A of
the Securities Act, as amended and Section 21E of the Securities Exchange Act of
1934. The words expect,  anticipate,  believe, goal, plan, intend,  estimate and
similar  expressions and variations thereof if used are intended to specifically
identify  forward-looking  statements.  Those  statements  appear in a number of
places in this  Form  10-QSB  and in other  places,  particularly,  Management's
Discussion and Analysis of Financial  Condition and Results of  Operations,  and
include statements  regarding the intent,  belief or current expectations of the
Company,  its directors or its officers with respect to, among other things: (i)
the Company's  liquidity  and capital  resources;  (ii) the Company's  financing
opportunities and plans and (iii) the Company's future performance and operating
results.  Investors  and  prospective  investors  are  cautioned  that  any such
forward-looking  statements are not guarantees of future performance and involve
risks and  uncertainties,  and that actual  results may differ  materially  from
those  projected  in the  forward-looking  statements  as a  result  of  various
factors.  The factors that might cause such differences  include,  among others,
the  following:  (i) any  material  inability  of the  Company  to  successfully
identify,  consummate  and  integrate  the  acquisition  of  radio  stations  at
reasonable and anticipated costs to the Company;  (ii) any material inability of
the Company to successfully  internally develop its products;  (iii) any adverse
effect or  limitations  caused by  Governmental  regulations;  (iv) any  adverse
effect on the  Company's  continued  positive  cash flow and abilities to obtain
acceptable  financing in  connection  with its growth  plans;  (v) any increased
competition  in  business;  (vi) any  inability  of the Company to  successfully
conduct its  business in new  markets;  and (vii)  other risks  including  those
identified in the Company's filings with the Securities and Exchange Commission.
The Company  undertakes no  obligation to publicly  update or revise the forward
looking  statements made in this Form 10-QSB to reflect events or  circumstances
after the date of this Form 10-QSB or to reflect the occurrence of unanticipated
events.

                                       22
<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 Securities Holders

      NONE

Item 5. Other Information

      NONE

Item 6. Exhibits and Reports on Form 8-K

(a)   Exhibits:



      (b)   Form 8-K  None




                                       23
<PAGE>

                                   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.

       February 20, 2001                  /s/ Carl L. Smith
--------------------------------          --------------------------------------
             Date                         Carl L. Smith, Chief Executive Officer



                                       24
<PAGE>