U.S.  SECURITIES  AND  EXCHANGE  COMMISSION
                             WASHINGTON,  D.C.  20549
                     -------------------------------------------
                                   FORM  10-KSB
(Mark  one)
[X]  Annual  report  under  section  13  or 15(d) of the Securities Exchange Act
     of  1934  For  the  fiscal  year  ended  September  30,  2002

                                       OR
[ ]  Transition  report under section 13 or 15(d) of the Securities Exchange Act
     of  1934  For  the  transition  Period  from         to
                                                  -------    --------

                      Commission  file  number:       0-28475

                        KOALA INTERNATIONAL WIRELESS INC.
                 (Name of small business issuer in its charter)

            Nevada                                                76-0616468
   (State or other jurisdiction                                (I.R.S. Employer
of  incorporation  or organization)                          Identification No.)

      366  Bay  Street,  Suite  800
      Toronto,  Ontario,  Canada                   M5H  4B2
      ----------------------------               ----------
 (Address  of  principal  executive  offices)   (Zip  Code)

     Copies  to:
     141  -  757  West  Hastings  Street,  Suite  676
     Vancouver,  British  Columbia,  Canada  V6C  1A1

Registrant's  telephone  number:      (416)  596-8520  (281)
                                     -----------------------

Securities  registered  under  Section  12(b)  of  the  Act:
None.

Securities  registered  under  Section  12(g)  of  the  Act:
Common  Stock,  par  value  $0.001  per  share
 (Title  of  class)

Check  whether  the Issuer (1) filed all reports required to be filed by Section
13  or  15(d)  of  the Securities Exchange Act during the past 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  [  ]

Check  if there is no disclosure of delinquent filers in response to Item 405 of
Regulation  S-B  contained in this form, and no disclosure will be contained, to
the  best  of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in  Part III of this Form 10-KSB or any
amendment  to  this  Form  10-KSB.  [X]

Registrant's  revenues  for  its  most  recent  fiscal  year:   $nil

As  of December 15, 2002, the aggregate market value of the voting common equity
held  by  non-affiliates  of  the registrant was approximately $400,000 based on
the  closing trade reported on the NASD Over-the-Counter Bulletin Board National
Quotation  System.  Shares of common stock held by each officer and director and
by  each  person  who  owns five percent or more of the outstanding common stock
have been excluded from this calculation as such persons may be considered to be
affiliated  with  the  Company.

On  December  01,  2002,  the  registrant had 13,696,000 shares of Common Stock,
$0.001  par  value  per  share,  issued  and  outstanding.

Documents  incorporated  by  reference:  None

<PAGE>


 KOALA  INTERNATIONAL  WIRELESS  INC.
Index  to  Annual  Report  on  Form 10-KSB For the Year Ended September 30, 2002

Part  I
-------                                                                     Page
                                                                            ----
Item  1     Description  of  Business                                         3
Item  2     Description  of  Property                                         6
Item  3     Legal  Proceedings                                                6
Item  4     Submission  of  Matters  to  a  Vote  of  Security  Holders       6

Part  II
--------
Item  5     Market  for  Common  Equity  and  Related  Stockholder  Matters   6
Item  6     Management's  Discussion  and  Analysis  of  Financial
                Condition  or  Plan  of  Operation                            7
Item  7     Financial  Statements                                            15
Item  8     Changes  In  and  Disagreements  With  Accountants  on
                Accounting  and  Financial  Disclosure                       25

Part  III
---------
Item  9     Directors,  Executive  Officers,  Promoters  and  Control
                Persons; Compliance With Section 16(a) of the Exchange Act   25
Item  10    Executive  Compensation                                          26
Item  11    Security  Ownership  of  Certain  Beneficial  Owners
                 and  Management                                             27
Item  12    Certain  Relationships  and  Related  Transactions               29
Item  13    Exhibits  and  Reports  on  Form  8-K                            29

Signatures                                                                   30




                                                                               2
<PAGE>
PART  I

ITEM  1.  DESCRIPTION  OF  BUSINESS

CORPORATE  BACKGROUND
Koala  International  Wireless  Inc.  (formerly  Kettle  River  Group Inc.) (the
"Company")  is  a developmental stage company that was incorporated in Nevada on
August  18,  1999.  From  inception  through  September  30, 2002, the Company's
activities have been organizational, directed at raising its initial capital and
developing  its  business  plan.  On  February  14, 2000, the Company acquired a
license  to  distribute  Vitaminalherb.com  products  to  health  and  fitness
professionals  in  Great  Britain.  The  Company  did  not commence selling  the
products  and  has  abandoned  the  license.

In  June  2001,  the Company decided to diversify its business plan and began to
investigate  other  businesses,  at  which  time  the  opportunity  to  acquire
Urbanesq.com,  Inc.  ("Urbanesq"), a private Ontario corporation which owned the
rights  to  a  handheld  communications  device,  arose.  The  Company  acquired
all  of  the  outstanding  shares  of  common  stock  of  Urbanesq  from  the
stockholders of Urbanesq in exchange for an aggregate of 6,500,000 shares of its
common  stock  .  Immediately  following  the exchange, certain stockholders  of
the  Company  surrendered  an aggregate of 7,500,000 shares of common  stock  to
the  Company,  which  were  immediately  cancelled  by  the  Company.

The  exchange  was effectively a reverse takeover of the Company by Urbanesq, in
that  the  stockholders  of  Urbanesq  became  majority holders of the Company's
outstanding  common  stock.  Shortly  after  the  exchange,  new  directors  and
officers  were  appointed.

On December 5, 2001, the  stockholders of  the Company voted  to  adopt  Amended
and  Restated  Articles of Incorporation, including a change  of  the  Company's
name to Koala International Wireless Inc.  A few days thereafter, the  Company's
trading  symbol  was  changed  from  KTLR  to  KIWI.

In  August  of  2002,  the  company  altered  its plans to develop an end-to-end
communication  device  and  service  through  the  purchase  of three companies:
No-Wire  Telecom  Inc.,  IP  Co.  Ltd.  and  Route1  Corporation.

The  Company's  principal  executive  offices  are  located  at  366 Bay Street,
Suite  800,  Toronto,  Ontario,  Canada  M5H  4B2.

PLANNED  FUTURE  OPERATIONS

The  Company's  business  following  its  acquisition  of  Urbanesq  was  to
produce  and  market  a product called the Hipster and the subscription services
associated  with  that  product.  The Company has ceased to pursue this business
and  has  extended  its  business model to launch a Windows based communication
device  and  associated  services.  The  new  device is being designed to access
information  from  the  Internet,  provide email service and other communication
functionality such as text messaging.  The plan is to deliver multiple services,
some  on  a  subscription  basis,  in  a  manner similar to the  way  a consumer
currently  pays for a cellular telephone.  The first market for  the  device and
services  will  be  Europe  followed  by  other  GPRS  markets.

Marketing  and  Distribution

The  device  and  network  services  will  be  marketed  to  GPRS based wireless
operators for resale to end users as is the case for products like the Handsring
Treo  and  RIM  Blackberry.

                                                                               3

<PAGE>


Competition

The  device  will  compete  in  the mass communication market alongside personal
Digital assistants   and cellular telephones.  Many of the Company's competitors
have  successful  sales,  established  employees,  research  and  development
budgets,  market  acceptance  and  penetration  and  a  strong overall financial
condition.  The  Company  believes  that  the  concept  and  design  of  its
device  will  surpass  competitors'  designs. The Company is smaller in size and
resources  when  compared  to  its  competitors.

Research  and  Development

On  September  17,  2002  the  Company  announced plans to acquire IP Co. Ltd. a
private  company  that  has developed a device referred to as the "MOBI". IP Co.
Ltd.  has  completed  development  of  the MOBI device which will allow Koala to
execute  its  business  plan.  The  acquisition  is  now in the final stages and
should  be  completed  shortly.

Regulatory  Environment

The  manufacture  and  use  of  the device  will be subject to regulation by one
or  more  federal  agencies,  including  the  Federal  Trade  Commission and the
Canadian  Radio  and  Television  Commission.  These  activities  also  may  be
regulated  by  various  agencies  of  the  states,  localities  and  foreign
countries  in  which  consumers  reside.

Intellectual  Property  Protection

The  product  primarily  uses  confidential  policies  which  are  internally
implemented  by  the  Company  to  protect  the  specific design. The Company is
exploring  placing  patents  on  the  device  and  software  developed  for  its
operation.

Business

The  Company  has  abandoned  its  Vitamineralherb.com  license.

The  Company  has  abandoned  the  Urbanesq  business  plan.

The  Company  intends  to  acquire  Routel  Corporation  as  a next-generation
financial  transaction  processing  company.  (See  the Company's 8K filed Dated
September  27,  2002,  and  amended December 13, 2002). As consideration for the
purchase,  the  vendor  will issue 6,000,000 common shares of the company fairly
valued  at  $6,000  Usd,  which  will  represent  30.46%  of the then issued and
outstanding  shares.  Route1  Corporation  is subject to a judgment for $97,000,
which  amount  has been accrued as a liability in Route1's financial statements.

                                                                               4
<PAGE>

The  Company  has not yet issued as at January 11, 2003, the 6,000,000 shares to
Route1's shareholders pending resolution of this judgment, other issues relating
to  the  judgment,  and  the  filing  of  an  Information  Statement.

Route1  is involved in the billing, tracking, settlement and data management for
Mobile  Virtual  Network  Operators  (MVNO's).  Route1 has developed a number of
proprietary  encryption  and  related  software  applications  that  enable  the
delivery of secure data and short messaging transmissions over an MVNO. Route1's
technology  and  vision  will  allow the combined companies to complete the MVNO
strategy.

The  Company  intends  to  acquire  NoWire  Telecom,  Inc., a wireless messaging
company  incorporated  in Cairo, Egypt, with corporate headquarters in Montreal,
Quebec.  NoWire  has  secured  virtual  carrier  agreements  with  more than 125
international telephone and data carriers to enable the delivery of premium data
and  Short  Messaging  content  and  services  to  their  customers.

NoWire provides a turnkey technology platform that enables the delivery of Short
Messaging  and/or  voice  and  data  services  to telecom carriers that lack the
infrastructure  necessary to provide these services on a local and international
basis.  Short  Messaging  enables  the  transmission of small amounts of data to
(and  from)  PDA's  and  cell phones, such as text messaging and the delivery of
custom  ring  tones,  graphics  and  compelling  content.  Short Messaging is an
inexpensive and convenient form of communication over wireless networks.  NoWire
has aggregated a substantial amount of Short Messaging content and services that
can  be  delivered  to  its  customers.

The  Company  intends  to  acquire  IP Co. Ltd., a mobile computing and hardware
development  company  based  in  Toronto,  Ontario.  The Company has developed a
proprietary,  handheld personal intelligent network computing device that can be
produced  at  a  cost  substantially less than its competitors. The device, code
named  "MOBI,"  communicates  directly  with  multiple Short Messaging, data and
voice  networks  and  delivers  portable  data,  Internet  access,  email, Short
Messaging,  calendaring,  office  tools,  MP3  and  other applications, some not
currently  available  in  the  marketplace.

The  Company  (Koala)  based  on its acquisitions is developing an International
Mobile Virtual Network Operator (IMVNO) platform to allow the delivery of voice,
data  and  short  messaging  over  multiple  networks. Concurrent with the IMVNO
development,  the  Company  is pursuing the development of applicable devices to
serve  the  network  subscribers.  The IMVNO strategy will enable subscribers to
access  the  Internet,  utilize  existing  applications  including  calendaring,
contact  management  systems,  email  and  short  messaging  and  additional
functionality,  some  not  currently  available  in  the  marketplace.

Intellectual  Property

The  nature  of  patent  and trademark registration is very complex and requires
legal  expertise.  To  date, no applications have been prepared to patent any of
the  Companies  assets  or  concepts.

                                                                               5
<PAGE>

Employees

The  Company  is  in the developmental stage and currently has no employees. The
Company  looks  to its directors and officers for their combined entrepreneurial
skills  and  talents.  Management  plans  to  use  consultants,  attorneys  and
accountants  as necessary. A portion of any employee compensation package likely
would  include the right to acquire stock in the Company, which would dilute the
ownership  interest of holders of existing shares of the Company's common stock.

As  discussed more fully in the Management's Discussion and Analysis - Liquidity
and  Capital  Resources  section,  the  expenses  of  implementing the Company's
business plan will exceed the Company's current funding. The Company, therefore,
will  have to obtain additional funding through an offering of its securities or
through capital contributions from its stockholders. No commitments  to  provide
additional  funds  have  been  made by management or stockholders.  Accordingly,
there  can  be no assurance that any additional funds will be available on terms
acceptable  to  the  Company  or  at  all.

ITEM  2.  DESCRIPTION  OF  PROPERTY

The  Company's  principal executive offices are located at 366 Bay Street, Suite
800,  Toronto, Ontario, Canada, M5H 4B2. The Company currently does not have any
lease  payments  as  the office is shared with other companies. The Company will
find  alternative office space once it commences production and marketing of the
communications  device  and  services.

ITEM  3.  LEGAL  PROCEEDINGS

To  the  knowledge  of the Company's executive management and directors, neither
the Company nor its subsidiaries are party to any legal proceeding or litigation
and  none  of  its property is the subject of a pending legal proceeding and the
executive  officers  and  directors  know of no other threatened or contemplated
legal  proceedings  or  litigation  other than a judgement held against Route1.
(Note:  the  company  has  not  yet  acquired  Route1)

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

No  matters  were  submitted to the stockholders during the year ended September
30,  2002.

PART  II

ITEM  5.  MARKET  FOR  COMMON  EQUITY  AND  RELATED  STOCKHOLDER  MATTERS

The  Company's  common  stock  was  approved for trading on the Over-the-Counter
Bulletin  Board (OTC-BB) under the symbol KTLR on August 24, 2001. In connection
with  the change of the Company's name to Koala International Wireless Inc., the
Company's  trading  symbol  was  changed  to  KIWI  on  December  10,  2001.

                                                                               6
<PAGE>

On  November  30,  2002,  the  Company's  issued  and  outstanding  common stock
totalled  13,696,000  shares,  held  by  approximately 77 stockholders of record
and  by  an undetermined  number  of  additional stockholders through nominee or
street  name  accounts  with  brokers.

The  Company  has  not  paid  dividends  in  prior years and has no plans to pay
dividends  in the near future.  The Company intends to reinvest its earnings, if
any  are  achieved,  in the continued development and operation of its business.
Any  payment  of  dividends  would  depend upon the Company's pattern of growth,
profitability,  financial  condition,  and  such  other  factors as the Board of
Directors  may  deem  relevant.

RECENT  SALES  OF  UNREGISTERED  SECURITIES

On  October 18, 2001, the Company issued 6,500,000 shares of common stock to the
stockholders  of  Urbanesq pursuant to a voluntary share exchange.  The issuance
was  conducted  pursuant  to  an exemption from registration, namely Rule 506 of
Regulation  D  and/or Regulation S under the Securities Act of 1933, as amended.
The  Company  prepared  and  distributed  an offering memorandum to the Urbanesq
stockholders  before  they  signed  the  voluntary  share exchange agreement and
subscribed  for  the  stock.  The 6,500,000 shares of the Company's common stock
held  by  the stockholders of Urbanesq are restricted securities subject to Rule
144  of  the  Act.

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                OF  OPERATIONS

Certain statements in this report and elsewhere (such as in other filings by the
Company  with  the  Securities  and Exchange Commission ("SEC"), press releases,
presentations  by  the  Company  of  its  management  and  oral  statements) may
constitute  "forward-looking  statements"  within  the  meaning  of  the Private
Securities  Litigation  Reform  Act  of  1995.  Words  such  as  "expects,"
"anticipates,"  "intends,"  "plans,"  "believes,"  "seeks,"  "estimates,"  and
"should," and variations of these words and similar expressions, are intended to
identify  these forward-looking statements. Actual results may materially differ
from  any forward-looking statements.  Factors that might cause or contribute to
such  differences  include,  among  others, competitive pressures and constantly
changing  technology  and  market  acceptance  of  the  Company's  products  and
services.  The  Company  undertakes no obligation to publicly release the result
of  any  revisions  to  these  forward-looking  statements, which may be made to
reflect  events  or  circumstances  after  the  date  hereof  or  to reflect the
occurrence  of  unanticipated  events.

The  following  discussion  should  be read in conjunction with the consolidated
financial  statements  included  herein. Certain statements contained herein may
constitute  forward-looking  statements,  as  discussed  above.  Because  such
statements include risks and uncertainties, actual results may differ materially
from those expressed or implied by such forward-looking statements. Factors that
could  cause  or  contribute  to such differences include those discussed in the
"Outlook:  Issues  and  Uncertainties"  section  of  this  Form  10-KSB.

                                                                               7
<PAGE>

PLAN  OF  OPERATIONS

The  Company's  business is still in its development stage.  The Company has not
generated  any  revenue  to date.  The Company plans to generate revenue through
the  production  and  marketing  of  its  communication  device  and  services.

During the period from August 25, 2000 (date of inception) through September 30,
2002, the Company engaged in no significant operations other than organizational
activities and research and development. The Company received no revenues during
this  period.

For  the  most  recent fiscal year, the Company incurred a loss in the amount of
$3,137,115,  compared  to  a loss of $358,523 in the previous nine month period.
The Company's expenses increased from $0 during the year ended December 31, 2000
to  $179,888  during the year ended September 30, 2001. The change is due to the
acquisition  of  Urbanesq, the Company's increased business presence and efforts
to  develop its business plan. Operation costs over the next year will depend on
a  number  of  factors,  including  the cost of producing the new communications
device,  the  cost  of  conducting  marketing research and preparing a marketing
campaign.

On  October  29,  2001,  the Company changed its fiscal year end to September 30
from  December  31.

The  Company's  business  plan  does not include any further work on its Hipster
business  rather to continue development of the new communications device and to
launch  the  product  during  2003.  The  Company  intends  to  subcontract  the
production  of  the  device.

Recent  Developments  and  Discussions

On  March  18,  2002 the Company announced their intention to acquire Route1(TM)
Corporation.  Routel  is  a  next-generation  financial transaction processing
company.  The Company committed to issue 750,000 common shares to acquire all of
the  outstanding  shares of Route1, however Route1 notified the Company that it
would not proceed with the transaction. Currently the parties have agreed to the
issuance  of  6,000,000  common  shares  for  Route1 but have not yet closed the
transaction.

On  March  22,  2002  the Company announced their intention to acquire Transcard
Canada, Limited. The Company committed to issue 750,000 common shares to acquire
all  of  the  outstanding  shares  of Transcard plus up to an additional 750,000
common  shares  to  be  issued  on  a  performance  basis  and committed to fund
Transcard  with  up  to  $500,000 for working capital. Subsequently, the Company
received  a  notice  of  termination  from  Transcard  and  is  not pursuing the
acquisition.

On  March 26, 2002 the Company announced their intention to acquire Esemde, Inc.
Esemde  has created a North America-wide virtual wireless network to provide SMS
and  GPRS delivery services.  SMS and GPRS are data transmission formats used by
wireless  carriers  such  as  AT&T  Wireless,  Cingular  and  Voicestream.  This
capability enables providers with SMS and GPRS applications for the Vertical and
Enterprise  markets,  access  to  nationwide wireless coverage, from digital PCS
carriers  but  served  by  Esemde,  Inc.  The Esemde technology and service will
capitalizes  on the growing need for low-cost, reliable, bi-directional wireless
data  transmission,  delivered  nationwide  to any SMS or GPRS application.  The
Company  has  committed  to  issue  650,000  common shares to acquire all of the
outstanding  shares  of  Esemde  and  has  committed  to  fund Esemde with up to
$1,280,000  for  working  capital.  The  discussions  with  Esemde  have  been

                                                                               8
<PAGE>


terminated  with  no  further  obligations  between  the  companies.

On  April  4,  2002  the  Company announced their intention to acquire INTERcard
Group  Inc.  INTERcard  provides wireless debit and credit terminals, along with
related  transaction  clearing,  to  the  hospitality  industry.  INTERcard  has
accumulated  substantial  transaction and revenue data regarding payment through
POS  terminals  from  a  number of Canadian pilot locations. INTERcard and Koala
have  held  advanced contract discussions with a number of additional settlement
and  certification  organizations,  which,  if  completed, will enable Koala and
INTERcard to immediately generate revenues as devices are deployed in the field.
The  Company  has committed to issue 112,902 common shares to acquire all of the
outstanding  shares  of  INTERcard,  subject  to  INTERcard selling 450 Ingenico
transaction  automation  770  'units'  and  has committed to issue an additional
112,902  common shares each time an additional 450 'units' are delivered up to a
maximum  aggregate  of  451,608  common shares.  The Company has agreed to issue
114,516  common  shares as a finder's fee pursuant to the INTERcard acquisition.
Koala  International  Wireless  and  INTERcard  were  not  able to conclude this
transaction.

Liquidity  and  Capital  Resources

The  Company has been able to pay its expenses and costs through the increase in
its  accounts  payable  and  payments  made  by  others  for  the Company. As of
September  30,  2002,  the  Company had a working capital deficiency of $817,631
compared  to  a working capital deficiency of $34,251 at September 30, 2001. The
Company  needs  to raise additional funds through the sale of stock or borrowing
just  to  maintain  the  corporate  existence of the Company and to maintain the
quotation  of  the Company's common stock on the OTC Bulletin Board. The Company
may  not  be  successful in its efforts to raise equity financing and /or attain
profitable  operations.  As  of  September  30,  2002,  the  Company  had  a net
stockholders'  deficit  of  $817,631,  with  accumulated  losses  during  the
development  stage of $3,239,646. There is doubt regarding the Company's ability
to  continue  as  a  going  concern.

No  material  commitments  for  capital  expenditures were made during the years
ended  September  30,  2002  or  2001.

The  Company  estimates  the  cost  of  producing  and  marketing  the device at
$1,000,000  Usd.  The  Company  abandoned  the  Vitamineralherb.com  project.

The Company is in the process of negotiating financing for completion of product
development  and  the  first  manufacturing  run.  The  availability  of  future
financings  will depend  on  market  conditions.  A  portion of the funds may be
used  to  grow  the  business  through  acquisitions  of  other  businesses.

The  forecast  of  the  period  of  time  through  which the Company's financial
resources  will be adequate to support operations is a forward-looking statement
that  involves  risks  and  uncertainties.  The  actual funding requirements may
differ  materially  from this as a result of a number of factors including plans
to  rapidly  expand its new operations. There can be no guarantee that financing
adequate  to  carry  out  the Company's business plan will be available on terms
acceptable  to  the  Company,  or  at  all.

                                                                               9
<PAGE>

EFFECT  OF  FLUCTUATIONS  IN  FOREIGN  EXCHANGE  RATES

The Company's reporting and functional currency is the US dollar. Currently, all
of  the  Company's  operations  are  located in Canada. Transactions in Canadian
dollars  have  been  translated into U.S. dollars using the current rate method,
such  that  assets  and  liabilities  are translated at the rates of exchange in
effect  at the balance sheet date and revenue and expenses are translated at the
average rates of exchange during the appropriate fiscal period. As a result, the
carrying  value of the Company's investments in Canada is subject to the risk of
foreign  currency  fluctuations.  Additionally,  any  revenues received from the
Company's international operations in other than U.S. dollars will be subject to
foreign  exchange  risk.

RECENT  ACCOUNTING  PRONOUNCEMENTS

In  March  2000,  the Financial Accounting Standards Board issued Interpretation
No.  44  ("FIN  44")  Accounting  for  Certain  Transactions  Involving  Stock
Compensation,  an  Interpretation  of  APB Opinion No. 25.  FIN 44 clarifies the
application  of  APB  No.  25 for (a) the definition of employee for purposes of
applying  APB  No. 25, (b) the criteria for determining whether a plan qualifies
as  a  non-compensatory  plan,  (c)  the  accounting  consequences  of  various
modifications  to the terms of a previously fixed stock option or award, and (d)
the  accounting  for  an  exchange  of  stock  compensation awards in a business
combination.  FIN  44  is  effective July 2, 2000, but certain conclusions cover
specific  events that occur after either December 15, 1998, or January 12, 2000.
The  Company  will  adopt  FIN  44  in accounting for any stock options granted.

In  March  2000,  EITF  00-2  "Accounting  for  Web  Site Development Costs" was
released.  EITF 00-2 provides guidance on how an entity should account for costs
involved in such areas as planning, developing software to operate the web site,
graphics,  content, and operating expenses.  EITF 00-2 is effective for web site
development  costs  incurred  for fiscal quarters beginning after June 30, 2000.

OUTLOOK:  ISSUES  AND  UNCERTAINTIES

Stockholders  and  prospective  purchasers  of the Company's common stock should
carefully  consider  the  following  risk  factors  in  addition  to  the  other
information  appearing  in  this  Transitional  Annual  Report  on  Form 10-KSB.

BUSINESS  RISKS

THE  COMPANY MAY REQUIRE ADDITIONAL EQUITY FINANCING, WHICH MAY NOT BE AVAILABLE
AND  MAY  DILUTE  THE  OWNERSHIP  INTERESTS  OF  INVESTORS.
The  Company's  ultimate  success will depend on its ability to raise additional
capital.  No  commitments  to  provide  additional  funds  have  been  made  by
management  or  other  stockholders.  The  Company  has  not  investigated  the
availability,  source  or  terms that might govern the acquisition of additional
financing.  When  additional capital is needed, there is no assurance that funds
will be available from any source or, if available, that they can be obtained on
terms acceptable to the Company.  If unavailable, the Company's operations could
be  severely limited, and it may not be able to implement its business plan.  If

                                                                              10
<PAGE>

equity  financing  is  used  to  raise additional working capital, the ownership
interests  of  existing  stockholders  may  be  diluted.

THE  COMPANY'S  OPERATING  RESULTS  ARE  LIKELY TO FLUCTUATE SIGNIFICANTLY WHICH
COULD  INCREASE  THE  VOLATILITY  OF  ITS  STOCK  PRICE.
As  a  result  of  the Company's limited operating history and the planned rapid
expansion  of  its  business  operations,  the  Company's  quarterly  and annual
operating  results  are  likely  to  fluctuate  from  period to period. For this
reason,  you  should  not  rely on period-to-period comparisons of the Company's
financial  results  as  indications  of  future  results.  The  Company's future
operating results could fall below the expectations of public market analysts or
investors  and  significantly  reduce  the  market  price  of  its common stock.

Fluctuations in the Company's operating results could increase the volatility of
its  stock  price.

THE  COMPANY'S  DEPENDENCE  ON  RELATIONSHIPS  WITH  BUSINESSES  AND GOVERNMENTS
OUTSIDE  OF  THE  UNITED STATES MAY NEGATIVELY AFFECT ITS ABILITY TO OPERATE ITS
BUSINESS  AS  PLANNED.
The  Company  depends  on  its  ability  to  establish  and  maintain successful
relationships  with  businesses  and  governments  located outside of the United
States.  If  the Company is unable to establish and maintain such relationships,
it will not be able to implement the business plan in its current configuration,
which  will  affect  both its revenue stream and profit potential.  In addition,
the  Company  faces  political  sovereign  risks  of  conducting  international
business,  including  risks  of  changing  economic conditions, which may have a
material  adverse  effect  on  its  ability  to  expand its operations globally.

THE  COMPANY  MAY  BE UNABLE TO PROTECT ITS INTELLECTUAL PROPERTY, TRADE SECRETS
AND KNOW-HOW WHICH WOULD REMOVE A BARRIER TO COMPETITION AND MAY DIRECTLY AFFECT
THE  AMOUNT  OF  REVENUE  IT  GENERATES.
The  Company  depends  heavily  on  its unique communications device design. The
Company  is dependent on its ability to keep trade secrets and obtain patents on
its  technologies  as  well  as  on  its  ability  to  develop  new  processes,
technologies  and  products  to  meet the needs of its marketplace. Although the
Company  intends  to  employ  various  methods,  including  trademarks, patents,
copyrights  and confidentiality agreements with employees, consultants and third
party  businesses, to protect its intellectual property and trade secrets, there
can  be no assurance that it will be able to maintain the confidentiality of any
of  its proprietary technologies, know-how or trade secrets, or that others will
not  independently  develop  substantially equivalent technology. The failure or
inability  to  protect  these rights could have a material adverse effect on the
Company's  operations.

THE COMPANY DEPENDS UPON A SMALL NUMBER OF KEY PERSONS TO IMPLEMENT ITS BUSINESS
PLAN,  AND  THE  LOSS  OF  ANY  OF  THEM  MAY  AFFECT  ITS  BUSINESS OPERATIONS.
The  Company  is dependent on several key employees and consultants to implement
its  business plan, and the loss of any of them may affect the Company's ability
to  provide  the  required quality of service and technical support necessary to
achieve  and  maintain a competitive market position. There is no assurance that
these  key  employees  and  consultants  will  continue  to manage the Company's

                                                                              11
<PAGE>

affairs  in  the  future.  The  Company  has not obtained key man insurance with
respect  to  any  of  its  employees.

THE  COMPANY MAY NOT BE ABLE TO EFFECTIVELY MANAGE ITS GROWTH WHICH COULD HAVE A
MATERIAL  EFFECT  ON  ITS  BUSINESS  OPERATIONS.
The  Company's  ability to manage its growth depends in part upon its ability to
develop and expand operating, management, information and financial systems, and
production  capacity,  which  may  significantly  increase  its future operating
expenses.  No  assurance can be given that it will grow in the future or that it
will  be  able  to  effectively manage such growth.  Its inability to manage its
growth  successfully  could  have  a  material  adverse  effect on its business,
financial  condition and results of operations.  The Company cannot successfully
implement its business model if it fails to manage its growth. The Company plans
to  rapidly  and  significantly  expanded  its  operations  domestically  and
internationally  and  anticipates  further expansion to take advantage of market
opportunities.

INVESTMENT  RISK

CONCENTRATION  OF OWNERSHIP OF DIRECTORS, OFFICERS AND SIGNIFICANT EMPLOYEES MAY
REDUCE  THE  CONTROL  BY  OTHER  STOCKHOLDERS  OVER  THE  COMPANY.
The Company's directors, officers and other control persons own or exercise full
or  partial  control  over  more than 51.12% of the Company's outstanding common
stock.  As  a result, other investors in the Company's common stock may not have
much  influence  on corporate decision-making. In addition, the concentration of
control  over  the  Company's  common  stock  among the insiders could prevent a
change  in  control  of  the  Company.

THE  COMPANY'S  COMMON  STOCK IS CONSIDERED A "PENNY STOCK", WHICH MAKES IT MORE
DIFFICULT  TO  SELL  THAN  AN  EXCHANGE-TRADED  STOCK.
The  Company's  securities are subject to the Securities and Exchange Commission
rule  that  imposes special sales practice requirements upon broker-dealers that
sell  such  securities  to  other  than  established  customers  or  accredited
investors.  For purposes of the rule, the phrase "accredited investor" means, in
general  terms,  institutions  with  assets  exceeding $5,000,000 or individuals
having net worth in excess of $1,000,000 or having an annual income that exceeds
$200,000  (or  that,  combined  with  a  spouse's income, exceeds $300,000). For
transactions  covered  by  the  rule,  the  broker-dealer  must  make  a special
suitability  determination for the purchaser and receive the purchaser's written
agreement  to  the  transaction  prior  to  the sale. Consequently, the rule may
affect  the  ability of purchasers of the Company's securities to buy or sell in
any  market  that  may  develop.
In  addition,  the  Securities  and  Exchange Commission has adopted a number of
rules  to  regulate "penny stocks." (A "penny stock" is any equity security that
has  a  market  price  of less than $5.00 per share or with an exercise price of
less  than  $5.00  per share, subject to certain exceptions). Such rules include
Rules  3a51-1,  15g-1,  15g-2,  15g-3,  15g-4, 15g-5, 15g-6, and 15g-7 under the
Securities  and  Exchange  Act of 1934, as amended. The rules may further affect
the  ability  of  owners of the Company's shares to sell their securities in any
market  that  may develop for them. Stockholders should be aware that, according
to  the  Securities and Exchange Commission Release No. 34-29093, the market for
penny stocks has suffered in recent years from patterns of fraud and abuse. Such
patterns  include:

                                                                              12
<PAGE>


-     control of the market for the security by one or a few broker-dealers that
      are  often  related  to  the  promoter  or  issuer;
-     manipulation of prices through prearranged matching of purchases and sales
      and  false  and  misleading  press  releases;
-     "boiler  room"  practices  involving  high  pressure  sales  tactics  and
      unrealistic  price  projections  by  inexperienced  sales  persons;
-     excessive  and  undisclosed  bid-ask  differentials and markups by selling
      broker-dealers;  and
-     the  wholesale  dumping  of  the  same  securities  by  promoters  and
      broker-dealers  after  prices  have  been  manipulated to a desired level,
      along  with  the  inevitable  collapse  of  those  prices  with consequent
      investor  losses.

THE  ISSUANCE  OF ADDITIONAL SHARES MAY HAVE THE EFFECT OF DILUTING THE INTEREST
OF  STOCKHOLDERS.
Any  additional issuances of common stock by the Company from its authorized but
unissued  shares  may  have  the  effect  of diluting the percentage interest of
existing  stockholders.  Out  of  the  Company's  100,000,000  authorized common
shares,  86,304,000 or approximately 86.3% remain unissued at December 01, 2002.
The  Board  of  Directors has the power to issue such shares without stockholder
approval.  None of the 20,000,000 authorized preferred shares of the Company are
issued. The Company fully intends to issue additional common shares or preferred
shares  in  order  to  raise  capital to fund its business operations and growth
objectives  or  as  compensation for services rendered on behalf of the Company.

BOARD  OF  DIRECTORS' AUTHORITY TO SET RIGHTS AND PREFERENCES OF PREFERRED STOCK
MAY  PREVENT  A  CHANGE  IN  CONTROL  BY  STOCKHOLDERS  OF  COMMON  STOCK.
Preferred  shares  may  be  issued  in  series  from  time  to  time  with  such
designation,  rights,  preferences  and  limitations  as  the Company's Board of
Directors  determines by resolution and without stockholder approval. This is an
anti-takeover  measure. The Board of Directors has exclusive discretion to issue
preferred  stock  with rights that may trump those of common stock. The Board of
Directors  could  use  an  issuance  of  Preferred  Stock  with  dilutive  or
voting  preferences  to  delay,  defer  or  prevent  common  stockholders  from
initiating  a  change  in  control of the Company or reduce the rights of common
stockholders to the  net  assets upon dissolution. Preferred stock issuances may
also  discourage takeover  attempts  that  may  offer premiums to holders of the
Company's  common  stock.

STOCKHOLDERS  DO  NOT  HAVE  THE  AUTHORITY  TO  CALL  A SPECIAL MEETING THEREBY
DISCOURAGING  TAKEOVER  ATTEMPTS.
Pursuant to the Company's articles of incorporation, only the Company's Board of
Directors  has  the power to call a special meeting of the stockholders, thereby
limiting  the  ability  of  stockholders  to  effect  a change in control of the
Company.

THE COMPANY DOES NOT ANTICIPATTE PAYING DIVIDENDS TO ITS SECURITY HOLDERS IN THE
FORESEEABLE  FUTURE  WHICH  MAKES  INVESTMENT IN ITS STOCK SPECULATIVE OR RISKY.
The  Company  has not paid dividends on its common stock and does not anticipate
paying  dividends  on  its  common stock in the foreseeable future. The Board of
Directors  has  sole  authority  to  declare  dividends payable to the Company's


                                                                              13
<PAGE>


stockholders.  The  fact  that  the  Company  has  not  and does not plan to pay
dividends  indicates  that  the  Company  must use all of its funds generated by
operations for reinvestment in its operating activities and also emphasizes that
the Company may not continue as a going concern. Investors also must evaluate an
investment  in  the  Company  solely  on the basis of anticipated capital gains.

LIMITED  LIABILITY  OF  THE  COMPANY'S  EXECUTIVE  OFFICERS  AND  DIRECTORS  MAY
DISCOURAGE  STOCKHOLDERS  FROM  BRINGING  A  LAWSUIT  AGAINST  THEM.
The Company's articles of incorporation and bylaws contain provisions that limit
the  liability of directors for monetary damages and provide for indemnification
of  officers  and  directors.  These provisions may discourage stockholders from
bringing a lawsuit against officers and directors for breaches of fiduciary duty
and may also reduce the likelihood of derivative litigation against officers and
directors even though such action, if successful, might otherwise have benefited
the  stockholders. In addition, a stockholder's investment in the Company may be
adversely  affected  to  the  extent  that costs of settlement and damage awards
against  officers  or  directors  are  paid  by  the  Company  pursuant  to  the
indemnification  provisions  of  the  articles of incorporation and by-laws. The
impact on a stockholder's investment in terms of the cost of defending a lawsuit
may  deter  the  stockholder  from  bringing  suit  against one of the Company's
officers  or  directors.  The  Company  has  been advised that the SEC takes the
position that this provision does not affect the liability of any director under
applicable  federal  and  state  securities  laws.


                                                                              14

<PAGE>


ITEM  7.  FINANCIAL  STATEMENTS

Report  of  Independent  Chartered  Accountants                               16

Balance  Sheets  as  at  September  30,  2002  and  September 30, 2001        17

Statements  of  Operations  for  the  years  ended  September  30,  2002,
and September  30,  2001,  and  for  the  period  from  August  25, 2000
(Date  of  Inception)  to  September  30, 2002                                18

Statements  of  Stockholders  Equity  for  the  period  from August  25, 2000
(Date  of  Inception)  to  September  30,  2002                               19

Statements  of  Cash  Flows  for  the  years  ended  September  30,2002,
and  September  30,  2001,  and  for  the  period  from  August  25, 2000
(Date  of  Inception)  to  September  30,2002                                 20

Notes  to  Financial  Statements                                              21








                                                                              15
<PAGE>

REPORT  OF  INDEPENDENT  CHARTERED  ACCOUNTANTS

TO  THE  SHAREHOLDERS  AND  DIRECTORS
OF  KOALA  INTERNATIONAL  WIRELESS  INC.
(A  DEVELOPMENT  STAGE  COMPANY)
(FORMERLY  KETTLE  RIVER  GROUP  INC.)

We  have audited the consolidated balance sheets of Koala International Wireless
Inc.  (formerly  Kettle  River  Group  Inc.) (a development stage company) as at
September  30,  2002  and  2001  and  the  statements  of operations, changes in
stockholders'  equity  (deficiency) and cash flows for the years ended September
30, 2002 and 2001 and the cumulative totals for the development stage operations
from  August  25,  2000 (inception) through September 30, 2002.  These financial
statements  are  the  responsibility  of  the  Company's  management.  Our
responsibility  is  to express an opinion on these financial statements based on
our  audits.

We conducted our audits in accordance with auditing standards generally accepted
in  the  United  States  of  America.  Those  standards require that we plan and
perform  an  audit  to  obtain  reasonable  assurances  whether  the  financial
statements are free of material misstatement.  An audit includes examining, on a
test  basis,  evidence  supporting  the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made  by  management,  as well as evaluating the overall
financial  statement  presentation.

In  our  opinion, these consolidated financial statements present fairly, in all
material  respects,  the  financial  position of the Company as at September 30,
2002  and 2001 and the consolidated results of its operations and its cash flows
for  the  two  years ended September 30, 2002 and 2001 and the cumulative totals
for  the  development  stage operations from August 25, 2000 (inception) through
September  30,  2002  referred to above in conformity with accounting principles
generally  accepted  in  the  United  States  of  America.

The  accompanying  financial  statements  have  been  prepared assuming that the
Company  will  continue  as  a  going  concern.  As  discussed  in note 3 to the
financial  statements,  the  Company  has  no revenues and limited capital which
together  raise  substantial  doubt  about  its  ability  to continue as a going
concern.  These  financial  statements do not include any adjustments that might
result  from  the  outcome  of  this  uncertainty.



"Pannell  Kerr  Forster"

Chartered  Accountants

Vancouver,  British  Columbia
January  28,  2003


                                                                              16

<PAGE>

<TABLE>
<CAPTION>

KOALA  INTERNATIONAL  WIRELESS  INC.
(FORMERLY  KETTLE  RIVER  GROUP  INC.)
(A  DEVELOPMENT  STAGE  COMPANY)
CONSOLIDATED  BALANCE  SHEETS
SEPTEMBER  30
(U.S.  DOLLARS)

--------------------------------------------------------------------------------------------------
                                                                      2002             2001
--------------------------------------------------------------------------------------------------
                                                                                      (note 1)

ASSETS
<S>                                                                   <C>              <C>

CURRENT
  Cash                                                                $       0        $      489
  Accounts receivable                                                         0             2,623
--------------------------------------------------------------------------------------------------


TOTAL CURRENT ASSETS                                                          0             3,112
FIXED, net of accumulated depreciation of
  $15,556 (2001 - $7,778)                                                23,952            31,730
--------------------------------------------------------------------------------------------------

                                                                      $  23,952        $   34,842
--------------------------------------------------------------------------------------------------

LIABILITIES

CURRENT

  Accounts payable and accrued liabilities                            $ 841,583        $   37,363
--------------------------------------------------------------------------------------------------

Commitments (note 8)

STOCKHOLDER'S EQUITY
--------------------------------------------------------------------------------------------------

PREFERRED STOCK, $0.001 PAR VALUE, 20,000,000 SHARES
AUTHORIZED, NO SHARES ISSUED AND OUTSTANDING

COMMON STOCK AND PAID-IN CAPITAL IN EXCESS OF $0.001
PAR VALUE
  100,000,000  Shares authorized
   13,696,000 (2001 - 1,354,167) shares issued and                   2,417,002           214,594
               outstanding

OTHER COMPREHENSIVE INCOME                                               5,013             8,449

DEFICIT ACCUMULATED DURING DEVELOPMENT STAGE OF OPERATIONS          (3,239,646)         (225,564)
--------------------------------------------------------------------------------------------------

TOTAL STOCKHOLDERS' DEFICIENCY                                        (817,631)           (2,521)
--------------------------------------------------------------------------------------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $  23,952         $  34,842
--------------------------------------------------------------------------------------------------




</TABLE>

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
                                                                              17
<PAGE>
<TABLE>
<CAPTION>


KOALA  INTERNATIONAL  WIRELESS  INC.
(FORMERLY  KETTLE  RIVER  GROUP  INC.)
(A  DEVELOPMENT  STAGE  COMPANY)
CONSOLIDATED  STATEMENTS  OF  OPERATIONS
YEARS  ENDED  SEPTEMBER 30, 2002, SEPTEMBER 30, 2001 AND FOR THE PERIOD FROM AUGUST 25, 2000
(INCEPTION)  TO  SEPTEMBER  30,  2002
(U.S.  DOLLARS)
--------------------------------------------------------------------------------------------------

                                                                                     FROM
                                                                                    DATE OF
                                                                                   INCEPTION
                                                                                      TO
                                                     YEAR ENDED SEPTEMBER 30,    SEPTEMBER 30,
                                                     2002           2001             2002
----------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>      <C>

EXPENSES
  Consulting                                         $ 2,399,550    $       0      $ 2,399,550
  Professional fees                                      142,787       10,479          157,156
  Marketing                                              138,800       54,610          193,410
  Product development                                    129,040            0          129,040
  Salaries                                                93,300       44,154          145,719
  Financing and due diligence                             73,450            0           73,450
  Rent, office and administration                         51,185        7,387           58,610
  Write-off merger goodwill                               38,013            0           38,013
  Travel                                                  33,000       17,224           50,564
  Investor relations                                      27,112            0           27,112
  Website                                                  3,100       38,256           74,499
  Depreciation                                             7,778        7,778           15,556
----------------------------------------------------------------------------------------------
NET LOSS                                             $(3,137,115)   $(179,888)     $(3,362,679)
----------------------------------------------------------------------------------------------
NET LOSS PER SHARE                                       $(0.249)    $(0.1563)
----------------------------------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF
  SHARES OUTSTANDING                                  12,578,200    1,150,625
----------------------------------------------------------------------------------------------
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
                                                                              18
<PAGE>

<TABLE>
<CAPTION>

KOALA  INTERNATIONAL  WIRELESS  INC.
(FORMERLY  KETTLE  RIVER  GROUP  INC.)
(A  DEVELOPMENT  STAGE  COMPANY)
CONSOLIDATED  STATEMENTS  OF  CHANGES  IN  STOCKHOLDERS'  EQUITY  (DEFICIENCY)
YEARS  ENDED SEPTEMBER 30, 2002, THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND FOR THE PERIOD FROM AUGUST 25, 2000 (INCEPTION)
TO  SEPTEMBER  30,  2002
(U.S.  DOLLARS)


                                                                                                                        Total
                                                                                                                      Stockholders'
                                                 Number                Subscriptions   Comprehensive    Accumulated     Equity
                                               of Shares     Amount     Receivable        Income         Deficit      (Deficiency)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>          <C>       <C>             <C>             <C>            <C>

August 25, 2000 inception                          540,000 $    27,189   $       0      $        0     $         0      $   27,189
Issuance of original common stock
  For services and concept development                   0           0      40,192               0               0          40,192
Foreign currency translation loss                        0           0           0            (194)              0            (194)
Net loss for the initial thirty-six day period           0           0           0               0         (45,676)        (45,676)
-----------------------------------------------------------------------------------------------------------------------------------
Balance, September 30, 2000                        540,000      27,189      40,192            (194)        (45,676)         21,511
Issuance of common stock
  for cash                                         814,167     187,405     (40,192)              0               0         147,213
Foreign currency translation gain                        0           0           0           8,643               0           8,643
Net loss                                                 0           0           0               0        (179,888)       (179,888)
-----------------------------------------------------------------------------------------------------------------------------------
Balance, September 30, 2001                      1,354,167     214,594           0           8,449        (225,564)         (2,521)
Shares of accounting subsidiary acquired
  on reverse take-over                          12,145,833     409,003           0               0               0               0
Adjustment to eliminate capital stock of
  accounting subsidiary on reverse take-over             0    (409,003)          0               0               0               0
Cancellation of common stock on acquisition
  of subsidiary                                 (7,500,000)   (119,218)          0               0         119,218               0
Common stock issuance as a result of
  reverse take-over                              6,500,000           1           0               0               0               1
Cancellation of common stock                      (500,000)     (3,815)          0               0           3,815               0
Issuance for settlement of debt                  1,646,000      59,380           0               0               0          59,380
Issuance for settlement of salaries                 50,000       2,500           0               0               0           2,500
Value of options attached to common shares               0   2,263,560           0               0               0       2,263,560
Foreign currency translation loss                        0           0           0          (3,436)              0          (3,436)
Net loss                                                 0           0           0               0      (3,137,115)     (3,137,115)
-----------------------------------------------------------------------------------------------------------------------------------
Balance, September 30, 2002                     13,696,000 $ 2,417,002   $       0      $    5,013     $(3,239,646)     $ (817,631)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.




                                                                              19
<PAGE>
<TABLE>
<CAPTION>

KOALA  INTERNATIONAL  WIRELESS  INC.
(FORMERLY  KETTLE  RIVER  GROUP  INC.)
(A  DEVELOPMENT  STAGE  COMPANY)
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
YEARS  ENDED  SEPTEMBER  30,  2002,  SEPTEMBER 30, 2001 AND FOR THE PERIOD FROM AUGUST 25, 2000
(INCEPTION)  TO  SEPTEMBER  30,  2002
(U.S.  DOLLARS)

-------------------------------------------------------------------------------------------------
                                                                                       FROM
                                                                                      DATE OF
                                                                                     INCEPTION
                                                                                        TO
                                                        YEAR ENDED SEPTEMBER 30,    SEPTEMBER 30,
                                                        2002           2001            2002
-------------------------------------------------------------------------------------------------
<S>                                                     <C>            <C>           <C>

OPERATING ACTIVITIES
  Net loss                                              $(3,137,115)   $(179,888)    $(3,362,679)
  Items not involving cash
    Amortization                                              7,778        7,778          15,556
    Stock option benefit                                  2,263,560            0       2,263,560
    Salaries paid by share issuance                           2,500            0           2,500
    Consulting and travel paid by
      share issuance                                         25,000            0          25,000
    Shares issued to relinquish debt                         34,380            0          89,069
  Changes in operating assets
    and liabilities                                         803,408       34,739         871,856
-------------------------------------------------------------------------------------------------
CASH USED IN OPERATING ACTIVATES                               (489)    (137,371)        (95,138)

INVESTING ACTIVITY
  Fixed assets acquired                                           0      (39,508)        (39,508)

FINANCING ACTIVITY
  Issuance of common stock
    for cash                                                      0      134,646         134,646
-------------------------------------------------------------------------------------------------
INFLOW (OUTFLOW) OF CASH                                       (489)     (42,233)              0
CASH, BEGINNING OF PERIOD                                       489       42,722               0
-------------------------------------------------------------------------------------------------
CASH, END OF PERIOD                                     $         0    $     489     $         0
-------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
  Shares issued for salaries,
    consulting and debt                                 $    61,880    $       0     $   116,569
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
                                                                              20
<PAGE>


KOALA  INTERNATIONAL  WIRELESS  INC.
(FORMERLY  KETTLE  RIVER  GROUP  INC.)
(A  DEVELOPMENT  STAGE  COMPANY)
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
YEARS  ENDED  SEPTEMBER  30,  2002,  SEPTEMBER  30, 2001 AND FOR THE PERIOD FROM
AUGUST  25,  2000  (INCEPTION)  TO  SEPTEMBER  30,  2002
(U.S.  DOLLARS)



1.   NATURE  OF  OPERATIONS  AND  BASIS  OF  PRESENTATION

     Urbanesq.com  Inc.  ("Urbanesq") was incorporated August 25, 2000 under the
     laws  of  the  Province  of  Ontario,  Canada.

     Effective  October  18,  2001,  Urbanesq  completed  a  merger  with  Koala
     International Wireless Inc. ("Koala", "the Company") (formerly Kettle River
     Group  Inc.),  a  public  company incorporated in the State of Nevada, such
     transaction having constituted a reverse takeover of Urbanesq by Koala. The
     Company  has had no operations other than organizational and administrative
     activities  since  inception.

     These  financial  statements  reflect  the  acquisition  applying  reverse
     takeover  accounting whereby the legal parent (Koala) is considered to have
     been  acquired by the legal subsidiary (Urbanesq). Capital stock represents
     the authorized and issued capital of the legal parent and the dollar amount
     is  that  of  the  legal  subsidiary,  the  ongoing  operating company. The
     consolidated  statements of operations and deficit and cash flows represent
     the  results  of  Urbanesq  for  the  year ended September 30, 2002 and the
     results  of  Koala  for  the  period from October 19, 2001 to September 30,
     2002.

     All  significant  inter-company  balances  and  transactions  have  been
     eliminated.  Note  5  describes  the  shares  issued  and  purchase  price
     allocation  of  the  merger.

     The  comparative  figures  included  in  the  consolidated  statements  of
     operations and deficit and cash flows represent the results of Urbanesq for
     the  year  ended  September  30,  2001.

2.   DEVELOPMENT  STAGE  COMPANY

     Koala  acquired  a license to market and distribute a product in Maine, New
     Hampshire and Vermont. This license was cancelled. On February 14, 2000, as
     a  replacement  for this license, the Company was granted additional rights
     to  market  and  distribute vitamins, minerals, nutritional supplements and
     other  health  and  fitness  products  in Great Britain. The grantor of the
     license  offered  these  products  for sale from various suppliers on their
     website.  The  original license was granted to the Company by a partnership
     for  consideration  of  2,000,000  common  shares value at $2,000 (note 5).
     These  shares were paid evenly to the ten partners. The replacement license
     was  granted  by  the  same  partnership.  The  general  manager  of  that
     partnership  was,  at the time, the spouse of a former director and officer
     of  the  Company.  The  value  of  $2,000  and other costs of acquiring the
     license  have  been  charged  to  operations. Subsequently, the license was
     abandoned.

                                                                              21
<PAGE>

     In  a  development stage company, management devotes most of its activities
     to preparing the business for operations. Planned principal activities have
     not  yet  begun.  The ability of the Company to emerge from the development
     stage  with respect to any planned principal business activity is dependent
     upon  its  successful  efforts  to raise additional equity financing and/or
     attain  profitable  operations. There is no guarantee that the Company will
     be  able  to  raise  any  equity financing or sell any of its products at a
     profit.  There  is,  therefore,  doubt  regarding  the Company's ability to
     continue  as  a  going  concern.

3.     GOING  CONCERN

     These  financial statements have been prepared in accordance with generally
     accepted  accounting  principles in the United States of America on a going
     concern  basis.  This  presumes funds will be available to finance on-going
     development,  operations  and  capital  expenditures and the realization of
     assets  and  the  payment of liabilities in the normal course of operations
     for  the  foreseeable  future.

     The  Company  has  minimal  capital  resources  presently available to meet
     obligations  which  normally  can  be  expected  to  be incurred by similar
     companies  and  has accumulated stockholders' deficiency of $817,631. These
     factors  raise substantial doubt about the Company's ability to continue as
     a  going  concern and is dependent on its ability to obtain and maintain an
     appropriate  level of financing on a timely basis and to achieve sufficient
     cash  flows to cover obligations and expenses. The outcome of these matters
     cannot  be  predicted. These financial statements do not give effect to any
     adjustments  to  the  amounts  and classification of assets and liabilities
     which  might  be  necessary  should  the company be unable to continue as a
     going  concern.

4.   SIGNIFICANT  ACCOUNTING  POLICIES

     (a)  Foreign  currency  translation

     Amounts  recorded  in  foreign currency are translated into U.S. dollars as
     follows:

     (i)  Monetary  assets  and liabilities at the rate of exchange in effect as
          at  the  balance  sheet  date;

     (ii) Non-monetary  assets  and liabilities at the exchange rates prevailing
          at  the  time  of  the  acquisition of the assets or assumption of the
          liabilities;  and

     (iii)Revenues and expenses (excluding depreciation and amortization which
          are  translated at the same rate as the related asset), at the average
          rate  of  exchange  for  the  year.

     Gains  and  losses  arising  from  this translation of foreign currency are
     included  in  other  comprehensive  income  as  a  separate  component  of
     stockholders'  equity  (deficiency).

                                                                              22
<PAGE>

     (b)  Comprehensive  loss

          Comprehensive  loss  is  comprised of net loss and other comprehensive
          income  arising  from  foreign  currency  translation.

     (c)  Use  of  estimates

          The  preparation of financial statements in conformity with accounting
          principles generally accepted in the United States of America requires
          management  to make estimates and assumptions that affect the reported
          amount  of assets and liabilities and disclosures 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 and would impact
          future  results  of  operations  and  cash  flows.

     (d)  Financial  instruments

          The Company's financial instruments include cash, accounts receivable,
          accounts  payable  and  accrued  liabilities  and loans payable. It is
          management's  opinion  that  the Company is not exposed to significant
          interest,  currency  or  credit  risks  arising  from  these financial
          statements,  except  as  disclosed  in  the  notes  to  the  financial
          statements. The fair values of these financial statements approximates
          their  carrying  value.

     (e)  Fixed  assets

          Fixed  assets  are  carried  at cost, net of accumulated amortization.

          Amortization  is  provided using the straight-line method based on the
          following  estimated  useful  life:

          Furniture  and  equipment  -  5  years

     (f)  Net  loss  per  share

          Net  loss  per  share  computations  are based on the weighted average
          number  of common shares outstanding during the year. Diluted loss per
          share has not been presented separately as the outstanding options are
          anti-dilutive  for  each  of  the  years  presented.

5.     CAPITAL  STOCK

     (a)  On  July  10, 2002, Koala cancelled 500,000 of its outstanding shares.

          On  August 20, 2002, Koala issued 1,146,000 shares at an average price
          of $0.03 per share, which was applied against an outstanding debt. The
          Company  also  issued  50,000  shares at an average price of $0.05 per
          share  in fulfilment of an employee contract, resulting in a charge to
          salaries  for  the September 30, 2002 year-end of $2,500. Further, the
          Company  issued 500,000 shares for consulting work at $0.05 per share,
          resulting in a charge to consulting fees of $25,000 for the year ended
          September  30,  2002.

                                                                              23
<PAGE>

     (b)  The  Company  has  adopted  an  incentive  stock option plan effective
          October 31, 2001 whereby up to 2,000,000 shares of common stock may be
          optioned  and  sold up to October 31, 2011 or until sooner terminated.

          (i)  Options  outstanding

          As  of  September  30,  the  following  options  were  outstanding:
          ----------------------------------------------------------------------
                                                       Exercise
                                       Expiry Date     Price     2002     2001
          ----------------------------------------------------------------------
                                    April 15, 2004     $  5.00     100,000     0
                                    --------------     -------     -------     -
                                    March 22, 2005     $  0.03     600,000     0
                                    --------------     -------     -------     -
                                     June 15, 2005     $  7.50     100,000     0
                                     -------------     -------     -------     -
                                   August 20, 2005     $  0.50     300,000     0
                                   ---------------     -------     -------     -
                                 September 1, 2007     $ 10.00     100,000     0
          ----------------------------------------------------------------------
          Subsequent  to the year-end, the Company granted the remaining 800,000
          options  allowed  by  the plan at an exercise price of $0.05 per share
          expiring  October  8,  2005.

          Subsequent to the year-end 485,000 options were exercised at $0.03 per
          share.

     (ii) The  following  table summaries the Company' stock option activity for
          the  period:

          ----------------------------------------------------------------------
                                                                       Weighted
                                                          Exercise     Average
                                                Number     Price       Exercise
                                             of Shares    Per Share     Price
          ----------------------------------------------------------------------
          Balance, September 2001                    0     $ 0.00       $ 0.00
          Granted during year                1,200,000  $0.03 - $10.00    2.02
          ----------------------------------------------------------------------
          Balance,  September
           30, 2002                          1,200,000  $0.03 - $10.00  $ 2.02
          ----------------------------------------------------------------------

     (iii)The  Company applies APB Opinion no. 25 and related interpretations in
          accounting  for  its  stock  options  granted  to  employees,  and
          accordingly,  compensation  expense  of  $Nil  was recognized as wages
          expense  for  the  year ended September 30, 2002 (September 30, 2001 -
          $Nil).  Had  compensation  expense been determined as provided in SFAS
          123  using  the  Black-Scholes  option  - pricing model, the pro-forma
          effect on the Company's net loss and per share amounts would have been
          as  follows:

          ----------------------------------------------------------------------
          Net loss, as reported                                     $(3,137,115)
          Net loss, pro-forma                                        (3,553,132)
          Net loss per share, as reported                               (0.2464)
          Net loss per share, pro-forma                                 (0.2825)
          ----------------------------------------------------------------------

          During the year ended September 30, 2002, 600,000 options were granted
          to  consultants.  These  options  were  accounted  for  using  the
          Black-Scholes  option-pricing  model,  which  resulted  in  consulting
          expenses  totalling  $2,263,560.

                                                                              24

<PAGE>

          The  fair value of each option grant is calculated using the following
          weighted  average  assumption:

          ----------------------------------------------------------------------
          Expected life (years)                                            3.62
          Interest rate                                                    3.00%
          Volatility                                                         84%
          Dividend yield                                                   0.00%
          ----------------------------------------------------------------------

6.   MERGER  AND  SUPPLEMENTAL  INFORMATION

     As  a  result  of the merger described in note 1, Koala has acquired all of
     the  outstanding  common  shares  of  Urbanesq.  Each  Urbanesq shareholder
     received  4.8  shares  of  common  stock  of Koala for a total of 6,500,000
     consolidated  shares.  Immediately  following the exchange of shares, Koala
     purchased  and  cancelled  7,500,000  of  its  pre-existing shares, thereby
     ensuring  that  the shareholders of Urbanesq have a controlling interest in
     Koala.

6.   MERGER  AND  SUPPLEMENTAL  INFORMATION  (Continued)
    ----------------------------------------------------------------------------
     The  purchase  price  allocation  was  as  follows:
    ----------------------------------------------------------------------------
     Purchase price                                                          $1
     Accounts payable in excess of assets acquired                      (38,013)
    ----------------------------------------------------------------------------
     Goodwill on acquisition                                             38,012
     Goodwill write-off                                                 (38,012)
    ----------------------------------------------------------------------------
                                                                             $0
    ----------------------------------------------------------------------------

     The  net  liabilities  arising  from  the  merger  have  been  applied  to
     shareholders'  deficiency  for  the  year  ended  September  30,  2002.

7.   INCOME  TAXES

     The  Company  has  operating  losses  which may be carried forward to apply
     against  future  year's  taxable  income.

     The  components  of  future  income  tax  assets  are  as  follows:
    ----------------------------------------------------------------------------
                                                        2002           2001
                                                        ----           ----
    Future  income  tax  assets
      Non-capital loss carry forwards                   $1,194,065     $358,523
      Approximate tax rate                                      35%          35%
    ----------------------------------------------------------------------------
                                                           417,900      125,483
      Valuation allowance                                 (417,900)    (125,483)
    ----------------------------------------------------------------------------
                                                                $0           $0
    ----------------------------------------------------------------------------

     Income  tax losses expire in 2009 - $(835,542); 2008 - $(352,748); and 2007
     $(5,775).

8.   COMMITMENTS

     The Company has committed to pay $30,000 for professional services expiring
     February  28,  2003,  at  which  time  the  contract  will  proceed  on  a
     month-to-month  basis  and  will  be  up  for  negotiation.

                                                                              25
<PAGE>

9.   RELATED  PARTY  TRANSACTION

     Consulting  fees  for the year ended September 30, 2002 includes $37,600 of
     fees  payable  to  two  former  directors  of  Koala  (2001  -  $Nil).

10.  LICENSES

     The licenses referred to in note 2 were acquired on February 14, 2000 for a
     term  of  three  years. The Company agreed to pay an annual fee of $500 for
     maintenance  of  the  grantor's  website  commencing February 14, 2001. The
     grantor  of the license retains 50% of the profit on all sales made through
     the  website. To September 30, 2002, no sales have occurred and the license
     was  abandoned.

11.  SUBSEQUENT  EVENTS

     (a)  Pursuant  to  a  voluntary  share  exchange  agreement  the Company is
          negotiating  to  acquire  Route1  Corporation  as  a next-generation
          financial  transaction  processing  company.  As consideration for the
          purchase,  the  vendor  will be issued 6,000,000 shares of the Company
          valued  at  $6,000, which will then represent 30.46% of the issued and
          outstanding  shares.

     (b)  Pursuant  to  a  voluntary Share Exchange Agreement dated November 20,
          2002,  the  Company agreed to acquire all of the partnership interests
          from  the  partners  of  NoWire  Telecom, Inc. ("NoWire"), an Egyptian
          partnership  company,  based  in Cairo, from the partners of NoWire in
          exchange for an aggregate of 6,000,000 shares of its common stock. The
          intended  acquisition  of NoWire is the second of a series of intended
          acquisitions  whereby the Company will also acquire a 100% interest in
          IP Co. Limited ("IP Co.") for the issuance of 28,000,000 shares of the
          Company's  common  stock,  thereby resulting in a change in control of
          the  Company whereby the Company will be effectively controlled by the
          shareholders  of  Route1 Corporation, NoWire Telecom and IP Co. Under
          the  terms  of  the  agreement,  Koala must also issue up to 5,000,000
          common  shares  for issuance under a private placement financing to be
          conducted  either  before  or after closing of the above transactions.

ITEM  8.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING AND
                 FINANCIAL  DISCLOSURE

There  are  no  reportable  disagreements  on accounting or financial disclosure
issues.

PART  III

ITEM  9.  DIRECTORS,  EXECUTIVE  OFFICERS,  PROMOTERS  AND  CONTROL  PERSONS

This  table sets forth the name, age and position of each director and executive
officer  of  the  Company:

Name  of  Director        Age         Position

K.  Andrew  White          38         CEO,  Secretary  and  a  Director
Miguel  Caron              29         President,  and  a Director
Lorne  Catling             46         Director
Christine  Cerisse         48         Director

                                                                              26
<PAGE>


K.  Andrew  White  -  Chief  Executive  Officer,  Secretary  and  a  Director
Mr. White has 10 years of entrepreneurial experience in technology.  During this
time,  he  has  started  three  technology business including Route1 Corporation
which  he  founded  in  1995.  Prior  to founding Route1,  he was the Manager of
Information  Systems  for  Delrina  (Symantec) Corporation.  Under contract, Mr.
White  developed  a  Software  Testing  Facility  for  a division of the Ontario
Research  Foundation.  He  has  significant  experience in product architecture,
operations,  marketing,  sales,  and  equity  financing.

Miguel  Caron  -  President,  and  a  Director
Miguel  Caron, the founder of NoWire Telecom, has extensive experience in sales,
marketing and management in the electronics industry.  In the recent past he has
been  COO  for Atlas Telecom Mobile, and Director of Sales in Eastern Canada for
Wysdom  inc.  His  expertise is identifying, developing and closing direct sales
business  with  companies  focused  on  providing wireless services and mobility
solutions  to their end users, customers, partners and employees. In 1994 Miguel
graduated  from  the  Royal Military College in St-Jean, Quebec with a Degree in
Polemologie  with  specialization  (Social  Studies  of  War).

Lorne  Catling  -  Director
Mr.  Catling  has  25  years  of direct sales and sales management experience in
various wholesale  and  retail  fields. This includes and is not limited to real
estate,  automotive,  home  renovation,  and  the  carpet  industry. He has held
managerial  positions  with  a  major  Ford  Dealership  and  offered  sales and
motivational  training  to  the  staff.  After  8  years  in  the  auto industry
Lorne  was  Western  Regional  Sales  Manager  for a Northwestern U.S. pay-phone
provider.  He  managed  and  trained  a  successful  sales  force  that gained a
substantial  foothold  in  the Western  Canadian market. Most recently Lorne has
been  raising capital for small start-up  companies  involved  in  the  wireless
remote  surveillance  and  non-institutional  ATM  industry.

Christine  Cerisse  -  Director
Ms.  Cerisse  is the former Chairman, President and Secretary-Treasurer of Koala
from  February 1, 2001 to September, 2002. Ms. Cerisse is a former Chartered and
Registered  Financial  Planner,  with  over 20 years experience in the financial
industry  in  the  field  of  financial  planning and financial management. From
October,  1999  to December, 2002, Ms. Cerisse has been providing management and
business consulting for start-up project teams. Ms. Cerisse has been a principal
in  various  entrepreneurial  businesses  and  has  over  20  years of sales and
marketing  experience,  both  of  products  and services in industries including
nutrition  and  health,  financial and real estate services, and technology. Ms.
Cerisse  has  been  responsible  for  financial and corporate management and the
preparation  of  contracts and financial documentation for the companies she has
worked  with.

ITEM  10.  EXECUTIVE  COMPENSATION

No  officer  or  director  of  the  Company,  or  Urbanesq,  has  received  any
remuneration  since  inception.  Although there is no current plan in existence,
it  is possible that the Company will adopt a plan to pay or accrue compensation
to  its  officers  for  services  provided  to  the  Company.

COMPENSATION  OF  DIRECTORS

Directors  are not compensated for their service as directors. All directors are
reimbursed  for  any  reasonable  expenses  incurred in the course of fulfilling
their  duties  as  a  director  of  the  Company.

EMPLOYMENT  CONTRACTS

The  Company  does not have employment contracts with its executive officers and
directors.  The  Company may in the future execute written consulting agreements
with  the  consulting companies owned by its executive officers and consultants.

                                                                              27
<PAGE>

STOCK  OPTION  PLAN

The  Company's  stockholders  adopted  the Company's 2001 Stock Option Plan (the
"Plan") at a special meeting on December 6, 2001.  The purpose of the Plan is to
enable  the  Company to offer its officers, directors, employees and consultants
and  advisors  performance-based  incentives  and  other equity interests in the
Company,  thereby  attracting,  retaining,  and  rewarding  such personnel.  The
Company  believes  that  increased  share ownership by such persons more closely
aligns  stockholder and employee interests by encouraging a greater focus on the
profitability  of the Company.  There is reserved for issuance under the Plan an
aggregate  of 2,000,000 shares of common stock.  All of the shares may, but need
not,  be  issued  pursuant  to the exercise of incentive stock options.  Options
granted  under  the  Plan may be either "incentive stock options," as defined in
Section  422  of  the Internal Revenue Code of 1986, as amended (the "Code"), or
non-statutory  stock  options.  To  date, no options have been granted under the
plan.

ITEM  11.  SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS  AND  MANAGEMENT

The following table sets forth as of December 14, 2001 certain information known
to the Company regarding the beneficial ownership of the Company's common stock,
and as adjusted to reflect the share ownership for (i) each executive officer or
director  of  the  Company  who  beneficially owns shares; (ii) each stockholder
known to the Company to beneficially own five percent or more of the outstanding
shares  of its common stock; and (iii) all executive officers and directors as a
group.  The  Company  believes  that  the  beneficial owners of the common stock
listed  below,  based  on  information  furnished  by  such  owners,  have  sole
investment  and  voting  power with respect to such shares, subject to community
property  laws  where  applicable.

<TABLE>
<CAPTION>



                                                                                  PERCENTAGE OF
                                                                                    OUTSTANDING
NAME AND POSITION                                         NUMBER OF SHARES               SHARES
<S>                                                              <C>                     <C>

K. Andrew White - CEO, Secretary and Director (6) ***              754,672                2.94%
Miguel Caron - President and Director (7)***                     5,550,000               21.60%
Christine Cerisse - Director (3)*                                        0                0.00%
Lorne Catling - Director (5)*                                            0                0.00%
Capital Partners Fund I(8)***                                    2,991,364               11.64%
Michael McGrath - (1)                                            1,632,000                6.35%
Robert Vivacqua - (2)                                            2,208,000                8.59%
Larry Wintemute - (4)**                                                  0                0.00%

ALL CURRENT DIRECTORS AND
OFFICERS AS A GROUP (5 Persons)                                  6,304,672               24.54%

</TABLE>

*    Each  of  these Directors have options to purchase 100,000 shares of common
     stock  of  the  Company  at  $0.50  per  share.
**   This  former  Director  has the option to purchase 100,000 shares of common
     stock  of  the  Company  at  $0.50  per  share.
***  These  shares will be issued  on   closing  of  the  acquisition  of Route1
     Corporation  and  No-Wire  Telecom  Inc.

(1)  Mr.  McGrath  is  sole  principal  of  Manumit  Enterprises Inc., a private
Tortola,  British  Virgin  Islands  company,  which  directly owns all 1,632,000
shares  of  common  stock  beneficially  owned  by  Mr.  McGrath.  Mr. McGrath's
business  address  is  #800,  366  Bay  Street,  Toronto,  Ontario,  M5H  4B2.

                                                                              28
<PAGE>


(2)  Mr.  Vivacqua  is  sole  principal  of  Steinberg  Hathaway  Inc.,  a
private  Nassau,  Bahamas  company,  which  directly  owns  all 2,208,000 shares
of  common stock  beneficially  owned  by  Mr. Vivacqua. Mr. Vivacqua's business
address  is  #800,  366  Bay  Street,  Toronto,  Ontario,  M5H  4B2.

(3)  Ms.  Cerisse's  business  address  is #676, 141 - 757 West Hastings Street,
Vancouver,  British  Columbia,   Canada,  V6C  1A1.

(4)  Mr. Wintemute's  business address is 7705 Flint Road S.E. Calgary, Alberta,
Canada, T2H  1G3.

(5)  Mr. Catling's business address is 7705 Flint Road S.E. Calgary, Alberta,
Canada, T2H 1G3.

6) Mr.White's  business address is 366 Bay Street, Suite 800,  Toronto, Ontario,
Canada,  M5H  4B2.

(7)Mr.  Caron's  business  address  is  366 Bay Street, Suite 800,  Toronto,
Ontario,  Canada,  M5H  4B2.

(8)  Capital Partners Fund I is a public company, that is incorporated in Nevada
and  trades  on  the  New York Stock Exchange. The Company's business address is
1211  Avenue  of  the  Americas,  New  York,  New  York,  10036.


CHANGE  IN  CONTROL

The  Company  is  not  aware  of  any  arrangement  that would upset the control
mechanisms  currently  in  place.  Although it is conceivable that a third party
could  attempt  a  hostile takeover of the Company, the Company has not received
notice  of  any  such  effort.

ITEM  12.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

No  transactions  with management or other parties occurred during the year that
would  otherwise  be  reported  under  this  section.

PART  IV

ITEM  13.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

EXHIBITS:  none

REPORTS  ON  FORM  8-K:
8k  filed  with  the  SEC  on  December  5,  2002  and  amendments  thereto.
8k  filed  with  the  SEC  on  October  15,  2002  and  amendments  thereto.

                                                                              29
<PAGE>

SIGNATURES

In  accordance  with  Section  13  or  15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

KOALA  INTERNATIONAL  WIRELESS  INC.

By:     /s/  Miguel  Caron

             Miguel  Caron
             President  and  Director

Date:   January  28,  2002

In  accordance  with  the Exchange Act, this report has been signed below by the
following  persons  on behalf of the registrant and in the capacities and on the
dates  indicated.

By:     /s/  Miguel  Caron               Date:  January  28,  2002
       Miguel  Caron
       President  and  Director

By:     /s/  K.  Andrew  White           Date:  January  28,  2002
       K.  Andrew  White
       Chief  Executive  Officer,  Secretary  and  Director


By:     /s/  Lorne  Catling              Date:  January  28,  2002
       Lorne  Catling
       Director

By:     /s/  Christine  Cerisse          Date:  January  28,  2002
       Christine  Cerisse
       Director


                                                                              30
<PAGE>

          CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL
                                     OFFICER
                                  PURSUANT NTO
                             18 W.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



I,  K.  Andrew  White,  certify,  pursuant to 18 U.S.C. Section 1350, as adopted
pursuant  to  Section  906  of  the  Sarbanes-Oxley Act of 2002, that the Annual
Report  on  Form 10-KSB of Koala International Wireless Inc. for the fiscal year
ended  September  30, 2002 fully complies with the requirements of Section 13(a)
or  15(d)  of  the  Securities  Exchange  Act  of  1934 and that the information
contained  in  the  Annual Report on Form 10-KSB fairly presents in all material
respects  the  financial  condition  and  results  of  operations  of  Koala
International  Wireless  Inc.


                                   By:     /s/  K. Andrew White
                                           ---------------------

                                   Name:     K. Andrew White

                                   Title:    Chief  Executive  Officer

                                   Date:     January 28, 2003


I,  Miguel  Caron,  certify,  pursuant  to  18  U.S.C.  Section 1350, as adopted
pursuant  to  Section  906  of  the  Sarbanes-Oxley Act of 2002, that the Annual
Report  on  Form 10-KSB of Koala International Wireless Inc. for the fiscal year
ended  September  30, 2002 fully complies with the requirements of Section 13(a)
or  15(d)  of  the  Securities  Exchange  Act  of  1934 and that the information
contained  in  the  Annual Report on Form 10-KSB fairly presents in all material
respects  the  financial  condition  and  results  of  operations  of  Koala
International  Wireless  Inc.



                                   By:     /s/  Miguel Caron
                                           -----------------------------

                                   Name:     Miguel Caron

                                   Title:    Chief  Financial  Officer

                                   Date:     January 28, 2003


                                                                              31