U.S. SECURITIES AND EXCHANGE COMMISSION
                       Washington, D. C. 20549


                             FORM 10-QSB
(Mark One)

[x]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
SECURITIES EXCHANGE ACT OF 1934 for the period ended June 30, 2000.

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE Act of 1934 for the transition period from ___ to ____.

Commission file number: 000-23319

                   AVANI INTERNATIONAL GROUP INC.
           (Name of Small Business Issuer in its charter)

 Nevada                                         88-0367866
(State of Incorporation                   (I.R.S. Employer I.D. Number)

#328-17 Fawcett Road, Coquitlam, B.C. (Canada)         V3K 6V2
(Address of principal executive offices)             (Zip Code)

Issuer's telephone number 604-525-2386.

Securities registered under Section 12 (b) of the Act:

         Title of each class         Name of exchange on which
         to be registered            each class is to be registered

            None                              None


Securities registered under Section 12(g) of the Act:

                            Common Stock
                          (Title of Class)

Check whether issuer (1) filed all reports to be filed by Section  13
or  15(d)  of  the  Exchange Act during the past 12 months  (or  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.
(1). Yes: X  No:
(2). Yes: X  No:
The number of shares issued and outstanding of issuer's common stock,
$.001 par value, as of June 30, 2000 was 20,403,257.

Transitional Small Business Issuer Format (Check One):
Yes:      No:  X



                                INDEX
PART I - FINANCIAL INFORMATION
Item  1. Financial Statements.                                        Page No.

Consolidated Condensed Balance Sheet as of June 30, 2000 (unaudited)
and December 31,1999 (audited).                                           3
Consolidated Condensed Statement of Operations for the Three Months
and Six Months Ended June 30, 2000 and 1999 (unaudited).                  4
Consolidated Condensed Statement of Stockholders Equity
for the Six Months Ended June 30, 2000 and 1999 (unaudited).              5
Consolidated Condensed Statement of Cash Flows the Six Months
Ended June 30, 2000 and 1999 (unaudited).                                 6
Notes to Financial Statements                                             7
Item 2. Management's Discussion and Analysis of Results of                9
        Operations and Financial Condition.

PART II - OTHER INFORMATION
Item 1. Legal Proceedings.                                                10
Item 2. Change in Securities.                                             10
Item 3. Defaults Upon Senior securities.                                  10
Item 4. Submission Of Matters To A Vote of Securityholders.               10
Item 5. Other Information.                                                10
Item 6. Exhibits and Reports on Form 8-K.                                 10
   Signature                                                              10











                   PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.



                   AVANI INTERNATIONAL GROUP INC.
                          AND SUBSIDIARIES


                           C O N T E N T S



                                                           PAGE


INDEPENDENT ACCOUNTANTS' REPORT                              1


CONSOLIDATED BALANCE SHEETS                                  2


CONSOLIDATED STATEMENTS OF OPERATIONS                        3


CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY              4


CONSOLIDATED STATEMENTS OF CASH FLOWS                        5


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                 6 - 8














                   INDEPENDENT ACCOUNTANTS' REPORT





We  have  reviewed  the accompanying consolidated balance  sheets  of
Avani International Group, Inc. and Subsidiaries as of June 30,  2000
and  1999  and  the  related consolidated statements  of  operations,
stockholders=  equity and cash flows for the six months  then  ended.
These  financial statements are the responsibility of  the  Company=s
management.

We  conducted our review in accordance with standards established  by
the American Institute of Certified Public Accountants.  A review  of
interim   financial  information  consists  principally  of  applying
analytical  procedures  to financial data  and  making  inquiries  of
persons  responsible  for financial and accounting  matters.   It  is
substantially  less  in scope than an audit conducted  in  accordance
with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken
as a whole.  Accordingly, we do not express such an opinion.

Based  on  our review, we are not aware of any material modifications
that should be made to the accompanying financial statements for them
to be in conformity with generally accepted accounting principles.

As  discussed in Note 8, certain conditions indicate that the Company
may  be  unable  to  continue as a going concern.   The  accompanying
financial  statements do not include any adjustments to the financial
statements  that might be necessary should the Company be  unable  to
continue as a going concern.















August 4, 2000




                                         PAGE  2



                   AVANI INTERNATIONAL GROUP INC.
                          AND SUBSIDIARIES
                CONSOLIDATED CONDENSED BALANCE SHEETS


                                                  June 30,     December 31,
                                                      2000        1999
                                                  ---------     -----------
                                                  (Unaudited)    (Audited)
ASSETS

CURRENT ASSETS
Cash                                           $   530,986      $ 954,606
Accounts receivable, net                            46,276         62,419
Goods and services tax receivable                   23,435         20,675
Inventory                                           58,012         65,078
Prepaid expenses                                    10,510         12,874
Assets held for resale                             401,025              -
                                               ------------     ------------

TOTAL CURRENT ASSETS                             1,070,244       1,115,652
                                               ============     =============

PROPERTY, PLANT AND EQUIPMENT - Net              1,585,735       2,027,440
                                               ------------      ------------

OTHER ASSETS
Security deposits                                   10,515          10,709
Trademarks and licenses                             22,213          15,318
                                                -----------      ------------
                                                    32,728          26,027

TOTAL ASSETS                                    $2,688,707      $3,169,119
                                                ============    =============
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Loans payable stockholders                      $    78,247     $  109,521
Current portion of long-term debt                   294,092          7,865
Accounts payable and accruals                       109,722        144,632
Wages and benefits payable                            8,850         23,548
Unearned income                                      18,397         15,542
Bottle and cooler deposits                          111,857        107,915
                                                 ------------   -------------

TOTAL CURRENT LIABILITIES                           621,165        409,023
                                                 ------------   -------------

LONG-TERM DEBT - Net of current portion             124,009        424,074
                                                  -----------   -------------

TOTAL LIABILITIES                                   745,174        833,097
                                                  -----------   -------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

COMMON STOCK, $.001 par value,
25,000,000 shares authorized;
20,403,257 and 20,233,257 shares
issued and outstanding                               20,403         20,233

COMMON STOCK DISCOUNT                               (55,000)       (55,000)

WARRANTS OUTSTANDING                                547,114        547,114

ADDITIONAL PAID-IN-CAPITAL                         5,823,523     5,789,693

ACCUMULATED DEFICIT                               (4,227,641)   (3,804,861)

ACCUMULATED OTHER COMPREHENSIVE LOSS                (164,866)     (161,157)
                                                  ------------  -------------

TOTAL STOCKHOLDERS' EQUITY                         1,943,533     2,336,022
                                                  ------------  -------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $2,688,707    $3,169,119
                                                  ============  =============

  The accompanying notes are an integral part of these consolidated
                        financial statements.


                               Page  3




                   AVANI INTERNATIONAL GROUP INC.
                          AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                          (UNAUDITED)





                               Three Months Ended       Six Months Ended
                                     June 30,                June 30,
                              ----------------------   -----------------
                                    2000       1999       2000       1999
                              ------------ ----------  ----------  -----------

REVENUE
Bottled water and supply sales  $  134,218 $  113,214  $  233,847  $  279,618
Cooler and equipment sales           5,333        679       9,170       2,111
Cooler rentals                       4,779      3,891       6,907      14,553
                                ----------  ----------  ----------  ----------
                                   144,330    117,784     249,924     296,282
                                ----------  ----------  ----------  ----------
COST OF GOODS SOLD
Cost of goods sold
(excluding depreciation)           105,818     68,056     180,104     152,925
Depreciation                         9,222     22,070      42,054      43,605
                                ----------  ----------  ----------  ----------
                                   115,040     90,126     222,158     196,530
                                ----------  ----------  ----------  ----------
GROSS PROFIT                        29,290     27,658      27,766      99,752
                                ----------  ----------  ----------  ----------
OPERATING EXPENSES
General and administrative         114,369    175,280     330,630     315,872
Marketing                           85,027      9,314     126,229      25,692
                                ----------  ----------  ----------  ----------
                                   199,396    184,594     456,859     341,564
                                ----------  ----------  ----------  ----------
LOSS FROM OPERATIONS              (170,106)  (156,936)   (429,093)   (241,812)

OTHER INCOME (EXPENSE)
Other                                3,908        835       5,919       1,446
Interest income                      7,686          -      17,491           -
Interest expense                    (9,501)   (11,001)    (17,097)    (19,328)
                                ----------  ----------  ----------  ----------
                                     2,093    (10,166)      6,313     (17,882)
                                ----------  ----------  ----------  ----------
NET LOSS                       $  (168,013) $(167,102)  $(422,780)  $(259,694)
                                ==========  ==========  ==========  ==========
BASIC AND DILUTED LOSS
PER COMMON SHARE                 $ (0.01)    $ (0.01)    $ (0.02)    $ (0.02)
                                ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER
   OF SHARES                    20,400,514  12,191,590  20,372,181  11,899,924
                                ==========  ==========  ==========  ==========


  The accompanying notes are an integral part of these consolidated
                        financial statements.






                               PAGE  4


                   AVANI INTERNATIONAL GROUP INC.
                          AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                   SIX  MONTHS ENDED JUNE 30, 2000
                             (UNAUDITED)
                             PAGE 1 OF 2




                       Common Stock        Common                  Additional
                    ------------------      Stock     Warrants       Paid-In
                      Shares    Amount     Discount  Outstanding     Capital
                   ----------- ---------  ---------- -----------  ------------

BALANCE,
DECEMBER 31, 1999
(AUDITED)           20,233,257  $20,233    $(55,000)   $547,114    $5,789,693


ISSUANCE OF COMMON
  STOCK                170,000      170                       -        33,830

NET LOSS                     -        -           -           -             -

FOREIGN CURRENCY
TRANSLATION
ADJUSTMENTS                  -        -           -           -             -

COMPREHENSIVE  LOSS          -        -           -           -             -
                   -----------  --------  ----------  ----------  -------------

BALANCE, JUNE 30,
 2000               20,403,257  $20,403    $(55,000)   $547,114    $5,823,523
                   =========== =========  ==========  ==========   ===========





                   AVANI INTERNATIONAL GROUP INC.
                          AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                   SIX  MONTHS ENDED JUNE 30, 2000
                             (UNAUDITED)
                             PAGE 2 OF 2








                                     Accumulated
                                           Other
                      Accumulated  Comprehensive     Comprehensive
                          Deficit           Loss              Loss
                   -------------- ---------------- ---------------

BALANCE,
DECEMBER 31, 1999
(AUDITED)            $(3,804,861)     $(161,157)      $         -

ISSUANCE OF COMMON
STOCK                          -              -                 -

NET LOSS                (422,780)             -          (422,780)

FOREIGN CURRENCY
TRANSLATION
ADJUSTMENTS                    -         (3,709)           (3,709)
                                                     -------------
COMPREHENSIVE  LOSS            -              -         $(426,489)
                   --------------- ---------------  ==============
BALANCE, JUNE 30,
  2000               $(4,227,641)     $(164,866)
                  ================ ===============























  The accompanying notes are an integral part of these consolidated
                        financial statements.




                               PAGE  5


                   AVANI INTERNATIONAL GROUP INC.
                          AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
               SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                          (UNAUDITED)





                                              2000        1999
                                             -----        -----

OPERATING ACTIVITIES
Net loss                                    $(422,780)  $(259,694)
Adjustments to reconcile net loss to net
cash used in operating activities
  Depreciation and amortization                55,731      67,609
  Issuance of common stock for consulting fees 34,000           -
  (Increase) decrease in assets
   Accounts receivable                         11,904     (25,558)
   Inventory                                    5,683      29,018
   Prepaid expenses                             2,354     (50,726)
   Other assets                               (11,672)     15,204
  Increase (decrease) in liabilities
   Accounts payable and accruals              (69,285)    113,831
   Unearned income and deposits                 3,198      2,322
                                           ------------ ----------

Net cash used in operating activities         (390,867)  (107,994)
                                           ------------- ----------

INVESTING ACTIVITIES
 Acquisition of property, plant and equipment  (28,834)   (11,158)
                                           ------------- ----------

FINANCING ACTIVITIES
 Proceeds from mortgages payable                     -     64,853
 Payments of mortgages payable                  (4,572)    (5,282)
 Issuance of common shares, net of offering costs    -    800,000
                                           ------------- -----------

Net cash provided by (used in) financing
 activities                                     (4,572)   859,571
                                           ------------- -----------

EFFECT OF EXCHANGE RATES ON CASH                 1,847       (671)
                                           ------------- -----------

NET INCREASE (DECREASE) IN CASH               (422,426)    739,748

CASH - BEGINNING OF PERIOD                     953,412     103,428
                                           ------------- -----------

CASH - END OF PERIOD                         $ 530,986   $ 843,176
                                           ============= ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for:
Interest                                     $  17,097   $  19,328
                                           ============= ============

Income taxes                                 $        -  $       -
                                           ============= ============








  The accompanying notes are an integral part of these consolidated
                        financial statements.




                               PAGE  6





                   AVANI INTERNATIONAL GROUP INC.
                          AND SUBSIDIARIES
        NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                       JUNE 30, 2000 AND 1999







NOTE 1 - INTERIM FINANCIAL INFORMATION

The  financial  statements  of Avani International  Group,  Inc.  and
Subsidiaries (the 'Company') as of June 30, 2000, and for  the  three
and  six  months  ended June 30, 2000 and 1999 and  related  footnote
information  are  unaudited.   All adjustments  (consisting  only  of
normal recurring adjustments) have been made which, in the opinion of
management,  are  necessary  for  a fair  presentation.   Results  of
operations for the three and six months ended June 30, 2000 and  1999
are  not  necessarily indicative of the results that may be  expected
for  any  future period.  The balance sheet at December 31, 1999  was
derived  from  the audited financial statements for  the  year  ended
December 31, 1999.

Certain  information and footnote disclosures, normally  included  in
financial  statements prepared in accordance with generally  accepted
accounting principles, have been omitted.  These financial statements
should be read in conjunction with the financial statements and notes
for the year ended December 31, 1999, included in the Form 10-KSB  of
the Company for such period.


NOTE 2 - BASIS OF PRESENTATION

The  consolidated condensed financial statements include the accounts
of  the  Company  and  its subsidiaries.  All material  intercompany
balances and intercompany transactions have been eliminated.


NOTE 3 - COMPREHENSIVE INCOME

The  Company adopted Statement of Financial Accounting Standards  No.
130,  Comprehensive Income for the first quarter of fiscal year 1998.
Comprehensive   income  is  a  more  inclusive  financial   reporting
methodology that includes disclosure of certain financial information
that  historically has not been recognized in the calculation of  net
income.   Comprehensive income (loss), representing foreign  currency
translation  adjustments for the six months ended June 30,  2000  and
1999 was $(3,709) and $45,745.


NOTE 4 - MAJOR CUSTOMER AND SUPPLIER

In each period the Company sold a substantial portion of its products
to a few customers.  During the six months ended June 30, 2000, sales
to  an Australian customer aggregated $21,552 and sales to a Japanese
customer aggregated $31,572, and during the six months ended June 30,
1999, sales to an Australian customer aggregated $57,000 and sales to
a  Japanese customer aggregated $32,544.  At June 30, 2000 and  1999,
amounts   due  from  these  customers  included  in  trade   accounts
receivable were $-0- and $25,560.

During  the  six  months ended June 30, 2000 and  1999,  the  Company
purchased  approximately  45%  and 47%  of  its  materials  from  one
supplier. At June 30, 2000 and 1999 there were no amounts due to that
supplier.   If  the supplier ceased doing business with the  Company,
management believes that other sources of material are available.


NOTE 5 - COMMON STOCK

The  Company  issued 170,000 shares valued at $34,000 for  consulting
services during the six months ended June 30, 2000.



                               PAGE  6


                   AVANI INTERNATIONAL GROUP INC.
                        AND SUBSIDIARIES
      NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                     JUNE 30, 2000 AND 1999



NOTE 6 - JOINT VENTURE AGREEMENT

The  Company  entered into an agreement on February 18, 2000  with  a
Malaysian company, Avani 02 Water SDN.BHD ("AOW"), whereby AOW  would
have  the  exclusive  right  and license  to  produce  and  sell  the
Company's  proprietary enriched water products.  In return AOW  would
pay  the Company a royalty of 2% of gross revenue, a license  fee  of
$500,000 per production facility, 20% of the net profits of  AOW  and
purchase the equipment supplied by the Company.

The  royalty  will initially be payable within 60 days of preparation
of  the  annual audited financial statements; however, once  AOW  has
completed  one  profitable  year,  the  royalty  will  be  calculated
quarterly and will be payable within 60 days of the end of each year.

The licensing fee is payable on or before 6 months from the date each
facility is commissioned and begins production.


NOTE 7 - FINANCIAL CONSULTING AGREEMENT

On  March  23, 2000, the Company entered into a financial  consulting
arrangement   with   SJH  Corporate  Services,  Inc.   ("SJH").   SJH
specializes  in source funding for companies in their infancy  stage,
as  well  as  introducing potential distributors for  products.   The
company has granted SJH a stock option to acquire 3,200,000 shares of
common stock of Avani with the following terms:

  1)   Exercise price per share is $.20.
  2)   The option shares must be exercised on or before each respective
       date, in the increments stated below:

                    Date              Number of Option Shares
               June 30, 2000             250,000
               July 31, 2000             250,000
               August 30, 2000         1,000,000
               September 30, 2000        250,000
               November 30, 2000       1,250,000
               December 31, 2000         200,000



NOTE 8 - MANAGEMENT'S PLANS

The   Company   has  incurred  substantial  recurring   losses   from
operations.   This  condition  raises  substantial  doubt  about  its
ability  to  continue as a going concern.  For the six  months  ended
June 30, 2000 the Company incurred a net loss of $422,780 and has  an
accumulated deficit of $4,227,641.


In  view  of  the  matters described above, the continuation  of  the
Company  is dependent on the Company's ability to meet its cash  flow
requirements  on  a  continuing basis and to succeed  in  its  future
operations.  The consolidated financial statements do not include any
adjustments  relating  to the recoverability  and  classification  of
recorded  asset amounts or amounts and classification of  liabilities
that  might be necessary should the Company be unable to continue  in
the  normal course of business.  While the Company is expected to  be
able to meet its current obligations, its future is dependent on  the
ability to obtain capital infusions and/or profitable operations.  In
an  effort to improve its operations, management is in the process of
instituting   certain  revenue  enhancing  measures,  including   the
establishment of another manufacturing facility in Malaysia, and  its
expansion efforts to other international markets.





                                   PAGE  8


Item 2. Management's Discussion and Analysis.
The  following  discusses the financial results and position  of  the
consolidated   accounts  of  the  Company  and   its   wholly   owned
subsidiaries for the periods indicated.

Results of Operations

Revenues for the  three-  and six-month periods  ended  June 30, 2000
were $144,330  and $249,924, respectively, compared with revenues  of
$117,784 and $296,282 for the same periods in 1999.  The decrease  of
15.65% for the six-month period in 2000 was due  to  a loss of  sales
to  an  Australian  distributor  and a Taiwanese distributor, and the
reduction of local sales. Revenues for the  six-month period in  2000
consisted of $233,847 in water and supply sales (a decrease of 16.37%
from  $279,618  for the prior period), $9,170 in cooler and equipment
sales (an increase  of 334%  from  $2,111 for  the  prior period) and
$6,907 in  cooler rentals  (a decrease of 52.54% from $14,553 for the
prior period). Of the total revenue for the six-month period in 2000,
$21,552  (or 9.22% of total  water  sales)  represented  sales  to  a
second Australian   distributor and $31,572 (or 13.5% of total  water
sales) represented  sales to  a Japanese distributor. Interest income
for  earned  on  investment of cash totaled $17,491 for the six-month
period in 2000 compared  with $0  for the prior period.  The increase
is  a  result  of the increase  of  available  cash  for  the current
period as compared with the prior period.

Cost  of  sales for the three- and six-month periods in 2000  totaled
$115,040  and  $222,158,  respectively,  compared  with  $90,126  and
$196,530 for the same periods in 1999. Cost of goods sold for the six-
month  periods  as  a percentage of sales increased  by  22.56%  from
66.33% to 88.89% due principally to the reduction in sales and  fixed
operating  costs.  Cost  of sales for the six-month  period  in  2000
consisted of $180,104 in bottled water, supplies, coolers and related
equipment (an increase of 17.77% from $152,925 for the  prior period)
and $42,054 in depreciation (a decrease of 3.56% from $43,605 for the
prior period). Gross profit for the  three-  and six-month periods in
2000 was $29,290 and $27,766, respectively, compared with $27,658 and
$99,752 for the prior periods.

General  and  administrative expenses which  includes  administrative
salaries  and  overhead  for  the  six-month  period totaled $330,630
which represents an increase of  4.67% from  $315,872 for  the  prior
period. This slight increase  is  due  to  increased personnel  costs.
Marketing   expenses   totaled $126,229  for  the six-month period in
2000  representing an increase of 391% from $25,692 for  $120,342 for
the  prior  period.   The  increase  in  marketing  expenses  is  due
principally  to  increased  promotional  expenses associated with its
overseas markets, and to a lesser extent expenses for local promotions.
Interest expense in connection with the Company's real estate totaled
$17,097 for the six-month  period in  2000 representing a decrease of
11.54% from  $19,328 for the prior period. Net loss for the three and
six  month periods  in 2000  was $168,013 and $422,780, respectively,
compared with $167,102 and $259,694 for the respective prior periods.


Liquidity and Capital Resources

Since  its inception, the Company has financed its operations through
the   private  placement  of  its  common  stock.  During  1999,  the
Company raised approximately $1,450,000 net  of  offering  costs from
the private placement of its common stock.

As of June 30, 2000, the Company had working capital in the amount of
$449,079.  The  Company  continues  to  experience  difficulties   in
establishing any meaningful distribution channels, and, as  a  result
continues  to  experience  significant losses  from  operations.  The
Company   is   uncertain  as  to  when  it  will  achieve  profitable
operations. Until such time as it achieves profitable operations  for
which no assurances can be given, the Company intends to finance  its
ongoing operations through the private placement of its capital stock
or  through  debt  financing. As of this date,  the  Company  has  no
commitments for any such financing. No assurances can be  given  that
the Company will be successful in these endeavors. If the Company  is
in fact unsuccessful in its financing endeavors, such event will have
a material adverse impact on its operations.

In  March  2000,  the  Company entered into two  agreements  with  an
unaffiliated company to identify potential sources of capital and  to
provide  investor  relations services. The Company granted  3,200,000
stock  options  to the third party at an option price  of  $0.20  per
share.  The options are exercisable monthly on or before the  end  of
each  calendar  month  from June to December 2000  in  the  following
respective monthly increments; 250,000, 250,000, 1,000,000,  250,000,
1,250,000 and 200,000. In the event an increment is not exercised  by
any  such  respective date, the remaining unexercised options  expire
automatically.  As  of  this date, none  of  the  options  have  been
exercised.

Property,  plant  and  equipment, net  of  accumulated  depreciation,
totaled  $1,585,735 on June 30, 2000. Property, plant  and equipment,
net  of  accumulated depreciation, totaled  2,027,440  on
December 31, 1999.

Forward Looking Statements.  Certain  of  the statements contained in
this   Quarterly   Report on  Form  10-QSB  includes "forward looking
statements" within the  meaning  of Section  21E  of  the  Securities
Exchange Act of  1934, as amended ("Exchange Act"). See the Company's
Annual Report on  Form 10-KSB for  additional  statements  concerning
operations  and  future   capital requirements.

Certain  risks  exist with respect to the Company and  its  business,
which  risks  include  the  lack  of profitable  operations,  limited
distribution channels, and the need for additional capital to sustain
operations.  Readers  are  urged to refer  to  the  section  entitled
"Cautionary Statements in the Company's Annual Report on Form  10-KSB
for  the  period ended December 31, 1999 for a broader discussion  of
such risks and uncertainties.

                                  PAGE 9




                      Part II OTHER INFORMATION
Item 1. Legal Proceedings.
None

Item 2. Changes in Securities.
None

Item 3. Defaults Upon Senior Securities.
None

Item 4. Submission Of Matters To A Vote Of Securityholders.
None

Item 5. Other Information.
None

Item 6. Exhibits.
(a). Furnish the Exhibits required by Item 601 of Regulation S-B.

Exhibit 27.1 - Financial Data Schedule

(b) Reports on Form 8-K.

None

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


                            AVANI INTERNATIONAL GROUP, INC.

Date: August  14, 2000
                            ---------------------------
                             Dennis Robinson - Treasurer and
                             Chief Accounting Officer

                                     PAGE  10



                            SCHEDULE 27.1
                       FINANCIAL DATA SCHEDULE


ART.5 FDS FOR 2nd QUARTER 10-Q

Multiplier  1,000


PERIOD TYPE                                   6 MONTHS
FISCAL YEAR END                               DEC-31-1999
PERIOD END                                    JUN-30-2000
CASH                                          531
SECURITIES                                    0
RECEIVABLES                                   46
ALLOWANCES                                    0
INVENTORY                                     58
CURRENT-ASSETS                                1,070
PP&E                                          2,118
DEPRECIATION                                  532
TOTAL ASSETS                                  2,689
CURRENT-LIABILITIES                           621
BONDS                                         0
COMMON                                        20
PREFERRED-MANDATORY                           0
PREFERRED                                     0
OTHER-SE                                      1,924
TOTAL-LIABILITIES-AND-EQUITY                  2,689
SALES                                         250
TOTAL-REVENUES                                250
CGS                                           222
TOTAL-COST                                    679
OTHER-EXPENSES                                (23)
LOSS-PROVISON                                 0
INTEREST-EXPENSE                              17
INCOME-PRETAX                                 (423)
INCOME-TAX                                    0
INCOME-CONTINUING                             (423)
DISCONTINUED                                  0
EXTRAORDINARY                                 0
CHANGES                                       0
NET-INCOME                                    (423)
EPS-PRIMARY                                   (.02)
EPS-DILUTED                                   (.02)