U.S. SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549
                          
                          
                         FORM 1O-QSB
                          
                          
       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
             THE SECURITIES EXCHANGE ACT OF 1934
                                                    
For Quarter ended September 30, 1998         Commission File No.33-30476-D
                                                    
                                                    
                  ISO BLOCK PRODUCTS USA, INC.
      (Exact name of registrant as specified in its charter)
                                                    
                                                    
                           COLORADO
                (State or other jurisdiction of
                incorporation or organization)
                                                    
                   8037 South Datura Street
                   Littleton, Colorado 80120
            (Address of Principal's Executive Offices)
                                                    
                          84-1O26503
                (I.R.S. Employer Identification No.)
                                                    
                                                    
                                                    
                        (303) 795-9729
           (Registrant's Telephone No. Incl. area code)
                                                    
                                                    
                                                    
  Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or such shorter period that the
registrant was required to file such reports), and (2) Has been subject to
such filing requirements for at least the past: 90 days.

                       Yes ___           No X
                                                     
  The number of  shares outstanding of each of the Registrant's classes of
common equity, as of April 26, 1999, are as  follows:
                                                    
        Class of Securities            Shares Outstanding
        -------------------            ------------------
     Common Stock, no par value            3,924,730  

                                               
                                                 
                                                    
                         INDEX                      
                                   
                                                                 Page of
                                                                  Report
                                                    
        PART I          FINANCIAL INFORMATION
                                                    
                                                    
Item 1.  Financial Statements
                                                    
         Consolidated Balance Sheets:
                                                    
         As of  September 30, 1998 (unaudited) and March 
         31,1998.......................................................  3
                                                    
         Consolidated Statements of Operations (unaudited)
                                                    
         For the three-month periods ended September 30, 1998 and
         1997..........................................................  4
                                                    
         Consolidated Statements of Cash Flows (unaudited)
                                                    
         For the three-month periods ended September 30, 1998 and
         1997..........................................................  5
                                                    
         Notes to Unaudited Financial Statements.......................  6
                             
                       
Item  2. Management's Discussion and Analysis or Plan of
         Operation.....................................................  8
                                                    
                                                    
             PART II.          OTHER INFORMATION
                                                    
                                                    
Item 6.  Exhibits and Reports on Form 8-K..............................  9
                                                    
                                                    
                                                    
         Signatures....................................................  9
                                                    
                                                    
                                                    
                

                      ISO BLOCK PRODUCTS USA, INC.

                 CONSOLIDATED COMPARATIVE BALANCE SHEET

  

                                         September 30,         March 31,
                                              1998               1998
                                           ----------         ----------

         ASSETS
         ------

    Current Assets
    --------------
      Cash                                   31,442                4,234
      Accounts Receivable - Officer               -                2,000
      Accounts Receivable - trade                 -              135,850       
      Mortgages Receivable                   16,200               16,200 
      Inventory-work in progress             34,540              235,494
                                          ----------          ----------
        Total Current Assets                 82,182              393,778


    Property & Equipment
    --------------------
      Office Equipment                        9,071               9,071
      Vehicle                                14,273              14,273
      Less:    Accumulated Depreciation      (3,333)             (2,333)
                                          ----------          ----------
        Net Property & Equipment             20,011              21,011


    Other Assets
    ------------    
    Deposits                                  2,551               2,551
    Franchise & License                     114,233             114,233
                                          ----------          ----------
        Total Other Assets                  116,784             116,784

    TOTAL ASSETS                            218,977             531,573
                                          ==========          ==========


         LIABILITIES & STOCKHOLDERS' EQUITY
         ----------------------------------

    Current Liabilities
    -------------------
      Accounts Payable                       54,383              81,381
      Notes payable                         100,000             310,360
      Accrued Interest payable                    0              14,349
      Capitalized lease payable               3,838               3,838
                                          ----------          ----------
         Total Current Liabilities          158,221             409,928
  

    Stockholders' Equity
    --------------------    
      Preferred Stock, No Par Value,
       10,000,000 Shares Authorized,
       116,370 and 116,370 Shares
       Outstanding, Respectively.            114,690            114,690

      Common Stock, 50,000,000 Shares
       Authorized, 3,854,730 and
       3,854,730 Shares Outstanding,
       Respectively.                       2,887,464           2,867,464

      Accumulated Deficit                 (2,941,398)         (2,860,509)
                                           ----------          ----------
                                              60,756             121,645
                                           ----------          ----------
       TOTAL LIABILITIES &
        STOCKHOLDERS EQUITY                  218,977             531,573
                                           ==========          ==========



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




                        ISO BLOCK PRODUCTS USA, INC.


               CONSOLIDATED COMPARATIVE STATEMENT OF OPERATIONS
               ------------------------------------------------
            For the three months ended September 30, 1998 and 1997




                                 Six months Ended        Three Months Ended
                                      Sept. 30,               Sept. 30,
                                 1998        1997         1998        1997
                              ----------  ----------  ----------  ----------

    INCOME
    ------
      Sales                    337,347      47,013      294,481      24,670
      Interest Income                4      12,591            -       6,454
                              ----------  ----------  ----------  ----------
        Total Income           337,351      59,607      294,481      31,124


    COST OF SALES
    -------------
      Cost of Goods Sold       282,200     128,270      249,383      41,698
      Cost of Mamaterials            -     160,882            -     126,091
                              ----------  ----------  ----------  ----------  
        Total Cost of Sales    282,200     289,152      249,383     167,789


    GROSS PROFIT (LOSS)         55,151    (229,545)      45,098    (136,665) 


    OPERATING EXPENSES
    ------------------
      General and Admin.       129,085     142,245       62,141      65,087
                              ----------  ----------  -----------  ---------
        NET LOSS               (73,934)   (371,790)     (17,043)   (201,752)
                              ==========  ==========  ===========  =========


    LOSS PER COMMON SHARE      (   .02)   (    .18)     (   .01)   (    .09)


    Weighted Average 
      Shares Outstanding      3,884,730   2,112,071   3,914,730   2,154,154 




                   The accompanying notes are an integral
                     part of these financial statement.




                       ISO BLOCK PRODUCTS USA, INC.

            CONSOLIDATED COMPARATIVE STATEMENT OF CASH FLOWS
            ------------------------------------------------
         For the three months ended September 30, 1998 and 1997 

 
                                                      September 30,     
    Cash Flows From Operating Activities         1998              1997
    ------------------------------------         ----              ----
    Net Income (Loss)                           (17,043)        (201,752)   
        Depreciation                                500               -
        Accrued interest                        (14,349)              -
        Mortgages Receivable                          -           (2,201)
        Inventory                               240,248               -
        Prepaid Expenses                              -          (26,894)
        Accounts Payable                        (27,638)          22,169
                                             -----------       ----------
    Net Cash Used in Operating Activities       181,718         (208,681)



    CASH FLOWS FROM INVESTING ACTIVITIES
    ------------------------------------
      Purchase of Property & Equipment                -               -


    CASH FLOWS FROM FINANCING ACTIVITIES
    ------------------------------------
      Proceeds From Preferred Stock                   -            12,712
      Proceeds From Common Stock                 20,000            50,000
      Promissory notes                         (227,879)           20,000
                                              -----------       ----------
      Net Cash Provided by (Used In)   
        Financing Activities                   (207,879)           82,712  



    NET INCREASE (DECREASE) IN CASH              26,161          (125,969)


    CASH - Beginning of Period                    5,281           143,913
                                              -----------       ----------

    CASH - End of Period                         31,442            17,944
                                              ===========       ==========



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

                                                       
                                                              
                        ISO BLOCK PRODUCTS USA, INC.
                   NOTES TO UNAUDITED  FINANCIAL STATEMENTS

                                                                
Note 1.
- ------
        Company Description.  Iso Block Products USA, Inc. ("Company") was
        incorporated in the State of  Colorado on April 28, 1986 under the
        name Champion Computer Rentals, Inc.  The Company was formed to
        obtain funding from a public offering in order to engage in the sale
        and leasing of computers and related equipment.  As March 31, 1992,
        the Company ceased those sale and leasing operations.


Note 2.
- -------
        Summary of Significant Accounting Policies.  The accompanying un-
        audited financial statements of the Company have  been prepared on
        the accrual basis and in accordance with the instructions to Form
        10-QSB and do not include all of the information and footnotes 
        required by generally accepted accounting principles for complete
        financial statements.  In the opinion of management, all adjustments
        (considered necessary for a for a fair presentation have been in-
        cluded. These financial statements should be read in conjunction with
        the financial statements and notes thereto included in the Company's
        annual report on Form 10-KSB for the fiscal year ended March 31, 1997.
        Following is a summary of significant accounting policies.
      

        Organization costs.
        -------------------
        Certain costs incurred to set up the Company are capitalized and were
        amortized over five years.  These costs were fully amortized at March
        31, 1994.
                                                                
        Income taxes.
        -------------
        The Company accounts for income taxes under SFAS No. 109.  Deferred
        income taxes result from temporary differences. Temporary differences
        are differences between the tax basis of assets and  liabilities and
        their reported amounts in the financial statements that will result
        in taxable or deductible amounts in future years.
                                                                
        Foreign Currency Translation.
        -----------------------------
        The functional currency for the Company's operations is the applic-
        able local currency.  The translation of the applicable foreign
        currency into U.S. dollars is performed for balance sheet  accounts
        using current exchange rates in effect at the balance sheet date and
        for revenue and expense accounts using a weighted average rate during
        the period. The gains or losses resulting from such translation
        are included in stockholder's equity.




                        ISO BLOCK PRODUCTS USA, INC.
                   NOTES TO UNAUDITED FINANCIAL STATEMENTS
                               (continued)



        Income (Loss) Per Common Share.
        -------------------------------
        Income (loss) per common share is based upon the weighted average
        number of common  shares outstanding during each period. Options and
        warrants outstanding to purchase common stock are included as common
        stock equivalents when diluted.

                                                                
        Concentrations of Credit Risk.
        ------------------------------
        The Company's financial instruments that are exposed to concentrations
        of credit risk consist primarily of mortgages receivable. These
        mortgages receivable are concentrated in German real estate but are
        not concentrated in a limited number of borrowers.  The mortgages are
        from high quality entities and secured by high value German real estate
        to limit the Company's concentrations of credit risk.


Note 3.
- ------
        During the quarter ended Septembere 30, 1998, the Company incurred a
        net loss of  $17,043, and as of that date had accumulated a deficit
        of $2,941,398. The Company had slight operations during the second
        fiscal quarter covered by  these statements and earned a small profit
        for the quarter of $45,098.

Note 4.
- ------
        Future working capital requirements are dependent on the Company's
        ability to attain profitable operations and  to obtain financing or
        new capital  as required.  It is not possible at this time to predict
        the outcome of future operations or whether the necessary financing
        or investment can be arranged. 



Item 2.    Management's Discussion and Analysis or Plan of Operation
           ---------------------------------------------------------
      
        Business Operations 

        The Company's principal business operations through March 31, 1992
        consisted of leasing out computers, peripheral products and software.
        The Company realized only nominal revenues through March 31,
        1992.Due to lack of significant revenues or operations, the Company
        remained in the developmental stage, as defined in Financial
        Accounting Standards Board Statement No. 7 until fiscal year ended
        March 31, 1994. 
 
        The first half of the business year of 1994 was occupied in establishing
        the infra structure to gear up for the planned operational activities of
        the German subsidiary, ISO-Block GmbH. The Company had a very
        difficult time trying to raise capital to start single-family and
        multi-family developmental projects as a general contractor. The
        Company decided to begin building single family custom homes at
        first, using the Company's proprietary building system, before
        attempting larger and more aggressive projects. Not until the first
        quarter of 1995 was the Company able to raise sufficient additional
        capital to begin operations.  
 
        The Company had a difficult but promising start, and the wholly owned
        subsidiary Iso-Block GmbH began custom home construction in
        Germany in the second quarter of 1995. A proof-of-concept home was
        built to demonstrate the Company's proprietary building system,
        several homes were completed for customers and others were initiated.
        Bigger projects were planned, some with partial financing from local
        governments. The weather in Germany in the fall and winter of 1995
        (third and fourth quarter 1995) did turn so bad that it was practically
        impossible, under those circumstances, to build anything for several
        months. Also a very negative business climate developed in Germany
        with an abnormally high unemployment rate, the highest since Word
        War II.  The weather improved but the business climate in Germany did
        not. The construction industry, in general, in Germany hit bottom in
        1995. 
 
        The Company had operating losses for 1995 and 1996 of
        approximately  $1,031,000 of which the major amount was due to the
        very adverse business climate in Germany as outlined above.
        However, in addition the previous Chairman of the Board and CEO,
        Mr. Josef Ratey, resident of Germany, and the Company's major
        shareholder did not provide the required direction and guidance. The
        US side of the Company, represented by Mr. Egin Bresnig, was
        challenged with taking over the offices of CEO and the presidency of
        the Company from Mr. Josef Ratey. After this change of leadership, the
        Company and its new management initiated drastic action to stop
        the financial bleeding. The process of extraditing the Company from its
        overseas operations was very costly because of the archaic business
        practices still in place in Germany. The Company could not leave
        projects unfinished but rather completed them knowing that these
        projects would lose money. The Company explored other business
        opportunities in the United States. Management of the Company
        decided to cease all operational activities in Germany. The better
        part of 1996 was spent winding down and closing the German
        operation.  
 
        During the 1996 fiscal year, the Company discontinued its European
        operations because of the continuing recession in Germany and the
        difficulty in managing its European subsidiaries from Denver,
        Colorado. Iso-Block GmbH ceased operations in July, 1996. The
        Company incurred dissolution expenses in ceasing operations of its two
        European subsidiaries of $166,000. The Company retained assets of
        $126,000 consisting of undeveloped property in Kehl, Germany and
        an account receivable for completed construction of one residential
        property in Germany. On December 9, 1996 the Company sold its
        Iso-Block GmbH subsidiary, including all liabilities and
        assets, to Big B Tex A.G. (CH), a Swiss company domiciled in Zurich,
        and the Company paid $40,000 to the buyer in addition to transferring
        its Iso-Block GmbH assets.  Big B Tex A.G. assumed all Iso-Block
        GmbH liabilities and future contingent liabilities, if any. 

        Results of Operations.
        ----------------------

        During the second fiscal  quarter ended September 30, 1998, the 
        Company had revenues of $294,481 and engaged in limited operations 
        primarily those of initial franchise operations and the sale of one 
        residential home in comparison to revenues of $28,483 in the 
        second fiscal quarter of 1997. The Company realized a loss of 
        $17,043 in the second quarter of 1998 compared to a loss of $201,752
        in the second quarter of 1997. The Company has accumulated a deficit 
        since inception totaling $2,941,398. The loss realized was primarily
        due to $45,098 spent for general and administrative expenses.


        Liquidity and Capital Resources.
        --------------------------------

        The Company has total assets of $218,977 including cash or cash
        equivalents at the end of the second fiscal quarter 1998 of $31,442
        compared to total assets of $531,573 including cash or cash 
        equivalents of $4,234 at the end of fiscal 1997.
        

        Income Taxes and Net Operating Losses 
        -------------------------------------

        At September 30, 1998, the Company had net operating loss carryforwards
        for United States and German income tax purposes totaling $2,941,398,
        which are available to offset future taxable income.  These NOL's
        expire through 2008. 

  
        Plan of Operation
        ----------------- 

        The Company intends to continue as general contractor in the United
        States and has purchased two residential building sites in the Outlook
        subdivision in Broomfield, Colorado, located approximately five miles
        northwest of Denver, Colorado, The Company had the capacity to build
        at least one speculative house at a constructed retail price of  
        $270,000. Construction was started June 1997 and wass complete in the
        second fiscal quarter of 1998. The first house was completed and sold
        to the public in September 1998. With the first residential house 
        sold, the Company will soon begin construction on its second 
        building site . The Company expects to continue its construction 
        program as long as the residential real estate business climate 
        continues its intensity in Colorado. According to the March 7, 1997 
        issue of The Rocky Mountain News "SunMicrosystems'  $200  million 
        planned research and development campus in Broomfield, Colorado 
        already has helped jump-start the metro area's home building activity.
        " One of the strongest areas of the Denver Metro home construction 
        industry is expected to be Broomfield, Colorado, thanks to SunMicro-
        systems, which will create 4,000 jobs at an average salary of $70,000.
        The Company is positioned correctly to take advantage of this
        growth by establishing itself as general contractor in Broomfield. If
        the Company realizes its profit goals by completing the first two
        speculative homes then it intends to become a developer of housing
        projects.  Even though the current management of the Company
        has limited building experience the availability of professional
        construction consultants should provide the necessary guidance to the
        Company. Management believes it will be successful in raising
        additional capital required to become a meaningful player in the
        Broomfield and Metro Denver housing construction market. 
 
        The Company is very excited about its completion of ownership of The
        Franchise Connection, Inc. because of the importance of franchising in
        today's economy. Franchising has been responsible for over 35% of the
        United State's total retail sales in the 1990s and is projected too
        grow to over 50% of all retail sales in the twenty-first century. 
        Franchising has proved to be an outstanding method of distribution and
        market penetration. Established franchise organizations are growing by
        11% annually and service related and business format franchises are
        growing by 39% annually.  Franchising has added two million jobs to
        the US economy the past ten years. The Franchise Connection, Inc.
        intends to capitalize on this predominate and enormous growth trend by
        exploiting its franchise expertise in conjunction with viable, talented
        entrepreneurs whom know and understand their business. These
        business owners work diligently to insure that their business will be
        successful and that it maintains its strong niche that can be
        duplicated on a national and/or international scale through franchising.
        By working in a "partnership" relationship with The Franchise
        Connection, Inc., these entrepreneurs can continue to make their
        business ever better while using The Franchise Connection, Inc. to
        recruit franchises and expand their concept globally. Using this
        strategic alliance, marketing costs, administration costs, and legal
        expenses can be controlled and, thus, general overhead can be
        reduced. The Franchise Connection's corporate objective is to acquire
        successful business concepts and via franchise sales to multiply its
        revenues over the next three years. The Franchise Connection, Inc. has
        formed alliances with the following companies; each representing
        a successful prototype and possessing a unique position in their
        industry. They all have a proprietary product with the ability to
        dominate their market if expanded rapidly. The concepts are very 
        teachable, have a universal consumer base and have very
        affordable entry investment. Each one has management in place with
        the technical expertise to operate the business.  With the
        franchising knowledge and marketing know-how of the Franchise
        Connection they all have the ability to exceed five hundred units in a
        reasonable period of time. The demand has never been
        higher to get into business. The opportunity seeker is more
        knowledgeable and seeking more than just buying a job. 
  
        Performance Marketing, Inc. offers marketing and training services to
        small businesses that are custom designed to fit the client and his
        budget.  Performance Marketing offers a proprietary
        product," The Living Marketing Manual" featuring an annualized
        marketing blueprint that gets guaranteed results.  With more than 22.5
        million businesses currently operating the US and an additional
        800,000 new businesses starting up every year the marketing
        niche for this business is unlimited. Performance Marketing has a letter
        of intent to provide marketing product to be made available for
        distribution by a network of over 500 representatives. Encore Nails is
        an upscale nail studio in the fast growing nail beautification industry.
        It uses a revolutionary, proprietary process to offer clients
        attractive, durable, environmentally safe, and technologically advanced
        nail coverings. The product was tested for four years in a very
        successful studio prior to being offered outside the control market. A
        new unit opened in March, 1997 to serve as a prototype unit and has 
        proved to be successful.  With the growth in the nail industry
        exploding, Encore Nails is on the leading edge. Franchise Connection
        has acquired the franchise rights which includes a 40% ownership of
        Encore Nails and 50% of all franchise fees and has a letter of
        intent to joint venture the franchising with financial partners who 
        will have day to day operation responsibility. Hydro-Physics is the 
        first of its kind, national video pipe inspection service franchise 
        that saves commercial and residential customers thousands of dollars 
        in unnecessary repair cost. The company utilizes a self-contained 
        portable state-of the-art video technology to identify, locate, and 
        verify underground pipeline problems. The market is wide-open
        with limited competition. Hydro-Physics has a five-year history of
        profitability. By using technology in insure portability with the 
        ability to inspect 3-inch pipes by a one-man crew the concept has 
        wide appeal. The company has in operation two franchises
        (Idaho and Missouri). Franchise Connection has the exclusive marketing
        rights and receives 25% of royalty over five years with a conversion 
        factor to own 30% of the parent company. It is expected that five new
        units will be opened over the next 12 months. Footlab is a full 
        service, compact, self-contained foot insole manufacturing station 
        that produces hand-make custom shaped foot support inserts from a 
        variety of materials depending on the intended use in less that five 
        minutes. Re-designed from a 25 year old invention from Switzerland 
        and in use in the winter ski industry for many years this concept can
        be located in athletic footwear stores, sporting good stores, golf 
        pro shops, and department stores. With approximately 90 % of the 275 
        million US and Canadian population needing foot inserts the market is
        very large. The operating units require less than 20 sq. feet, which 
        opens up many avenues of opportunity. Franchise Connection is the 
        franchisor and owns 100% of Footlab with a contract to pay 10% 
        royalty fees to the founder who also has the responsibility to 
        provide all research and development of product. LARSON LEARNING 
        CENTERS, a program of supplemental education, offering development 
        and enrichment in all core academic subjects as well as basic skills 
        in reading, writing and math. 

        The principal business of MAGNA-DRY LLC is the manufacturing,
        re-packaging, distribution and licensing of leading-edge environ-
        mentally safe cleaning services developed by Australian formulator 
        Charles C. Borg. Franchise Connection, Inc. enjoys exclusive 
        territorial rights to manufacture and distribute Magna-Dry products 
        in the United States. Specifically, the operational aims and proposed
        development plans are as follows: (1). Increase resources for the 
        sales and operations team and strengthen middle management to
        support future growth of Magna-Dry (2). Magna-Dry sub-franchising, 
        forming synergistic services with other up-market carpet retailers, 
        existing laundry and cleaning businesses, upholstery and soft 
        furnishings businesses, car distributors and manufactures and rapid 
        numerical growth of the sales and operational teams (3). Magna-Dry 
        Area Franchising. Franchise Connection, Inc. has spent an additional 
        $175,000 in marketing and operational development costs for its 
        Magna-Dry subsidiary. Currently, Magna-Dry LLC has franchise 
        operations in Denver, Colorado, Reno, Nevada, Memphis, Tennessee and 
        Winnipeg, Canada. Additional locations are scheduled for Seattle, WA,
        dependent upon funding. 

        The Magna-Dry carpet and drape cleaning system has expanded to 22
        countries around the world including the United Kingdom, Germany,
        France, Belgium, the Netherlands, Luxembourg, Italy and Asia.
        Magna-Dry has over one thousand units operating internationally that
        produce gross revenues in excess of $300,000,000. In many areas
        Magna-Dry has captured over 60% of the market. Unlike competitors
        using conventional wet or shampoo cleaning methods, Magna-Dry
        employs a revolutionary cleaning process with magnetic ionization
        technology that cleans faster and more efficiently.  It is a proven 
        system that is safe, fast and reliable and suitable for cleaning 
        carpets, curtains, upholstery and mattresses of all material types. 


        Year 2000 Compliance
        --------------------
        General Description of the Year 2000 Issue and the Nature and Effects
        of the Year 2000 on Information Technology (IT) and Non-IT Systems


        The Year 2000 issue is the result of computer programs being written
        using two digits rather than four digits to define the applicable 
        year. Any of the Company's computer programs or hardware that have
        date-sensitive software or embedded chips may recognize a date using
        "00" as the year 1900 rather than the year 2000. This could result in a
        system failure or miscalculations causing disruptions of operations,
        including, among other things, a temporary inability to process
        transactions, send invoices, or engage in similar normal business
        activities.

        The Company presently leases one computer hardware and related
        software. The Company also uses services from other company's and
        does believe that all related computers are Year 2000 compliant. 

        Computer Hardware
        -----------------
        The Company believes that the one leased computers hardware is Year
        2000 compliant.


        Computer Software
        -----------------
        The Company believes that the one leased computers software is Year
        2000 compliant.


        Operating Equipment
        -------------------
        The Company does not own any related operating equipment.


        Nature and Level of Importance of Third Parties and Their Exposure to
        the Year 2000

        The Company continues to conduct surveys of its banking and other
        vendor relationships to assess risks regarding their Year 2000 
        readiness. The Company has banking relationships all of which have 
        indicated their compliance efforts will be complete before July 1999.
        The Company's contingency plan in this regard is to move accounts 
        from any institution that cannot be certified Year 2000 compliant 
        by August 1, 1999.

        The Company does not rely heavily on any single vendor for goods and
        services, and does not have significant suppliers and subcontractors
        who share information systems with the Company (external agents). To
        date, the Company is not aware of any external agent with a Year 2000
        compliance issue that would materially impact the Company's results of
        operations, liquidity, or capital resources. However, the Company has
        no means of ensuring that external agents will be Year 2000 compliant.

        Management does not believe that the inability of external agents to
        complete their Year 2000 remediation process in a timely manner will
        have a material impact on the financial position or results of 
        operations of the Company. However, the effect of non-compliance by 
        external agents is not readily determinable. 

        Costs to Address Year 2000
        --------------------------
        The total cost of the Year 2000 project is $0. To date, the Company 
        has incurred $0 related to all phases of the Year 2000 project. Of 
        the total remaining project costs, approximately $0 is attributable 
        to the purchase of new software and operating equipment. 

        Risks Associated with the Year 2000 
        -----------------------------------
        Management believes it has no risk associated with the Year 2000. 

 


                                                                
                                                               
Item 6.          Exhibits and Reports on Form 8-K

        (a)      Exhibits.     NONE
        
        (b)      Reports on Form 8-K        NONE

                                                    
                                                    
                                                    
                               SIGNATURES
                               ----------                                 
  In accordance with the requirements of the Exchange Act, the Registrant
caused this Report on Form 10-QSB to be signed on its behalf by the under-
signed thereunto duly authorized.
                                                    
                                                    
Dated: May 6, 1999

                                  ISO BLOCK PRODUCTS USA, INC.


                                  By   /S/ Egin Bresnig
                                  ------------------------------
                                           Egin Bresnig, 
                                           Chief Executive Officer




                                  By   /S/ Dean Wicker
                                  -------------------------------
                                           Dean Wicker,
                                           Chief Financial Officer