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 June 30, 1999         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 Julyl 31, 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  June 30, 1999 (unaudited) and March
         31, 1999....................................................... 3

         Consolidated Statements of Operations (unaudited)

         For the three-month periods ended June 30, 1999 and
         1998..........................................................  4

         Consolidated Statements of Cash Flows (unaudited)

         For the three-month periods ended June 30, 1999 and
         1998..........................................................  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



                                            June 30,          March 31,
                                              1999               1999
                                           ----------         ----------

         ASSETS
         ------

    Current Assets
    --------------
      Cash                                    1,693                5,135
      Mortgages Receivable                   16,200               16,200
      Inventory-work in progress             34,540               34,540
                                          ----------          ----------
        Total Current Assets                 52,433               55,875


    Property & Equipment
    --------------------
      Office Equipment                        9,071                9,071
      Vehicle                                14,273               14,273
      Less:    Accumulated Depreciation      (4,833)              (4,333)
                                          ----------           ----------
        Net Property & Equipment             18,511               19,011


    TOTAL ASSETS                             70,944               74,886
                                          ==========           ==========


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

    Current Liabilities
    -------------------
      Accounts Payable                       54,529               54,383
      Notes payable                         150,360              150,360
      Accrued Interest payable               26,304               26,304
                                          ----------           ----------
         Total Current Liabilities          231,193              231,047


    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, 4,041,484 and
       3,854,730 Shares Outstanding,
       Respectively.                      2,897,764            2,897,764

      Accumulated Deficit                (3,172,703)          (3,168,615)
                                          ----------           ----------
                                           (160,249)            (156,161)
                                          ----------           ----------
       TOTAL LIABILITIES &
        STOCKHOLDERS EQUITY                  70,944               74,886
                                          ==========           ==========



               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 June 30, 1999 and 1998





                                                         June 30,
                                                  1999              1998
                                              ----------         -----------

    INCOME
    ------
      Sales                                      18,460              42,866
      Interest Income                                 1                   4
                                              ----------         -----------
        Total Income                             18,461              42,870


    COST OF SALES
    -------------
      Cost of Materials and Services             20,866              32,817
      Labor                                           -                   -
                                              ----------         -----------
        Total Cost of Sales                      20,866              32,817


    GROSS PROFIT (LOSS)                          (2,405)             10,053


    OPERATING EXPENSES
    ------------------
      General and Administrative                  1,537              66,944
                                              ----------         -----------

        NET LOSS                                 (3,942)            (56,891)
                                              ==========         ===========


    LOSS PER COMMON SHARE                      (      -)           (    .01)


    Weighted Average Shares Outstanding        4,041,484           3,854,730




                   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 June 30, 1999 and 1998


                                                        June 30,
    Cash Flows From Operating Activities         1999              1998
    ------------------------------------         ----              ----
    Net Income (Loss)                            (3,942)         (56,891)
        Depreciation                                500              500
        Inventory                                     -          (39,294)
        Prepaid Expenses                              -            2,850
        Accounts Payable                           (146)         (54,636)
                                             -----------       ----------
    Net Cash Used in Operating Activities        (3,588)        (147,471)



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



    CASH FLOWS FROM FINANCING ACTIVITIES
    ------------------------------------
      Write-down of Receivable                        -          135,000
      Proceeds From Notes Payable                     -           13,518
                                             -----------       ----------
      Net Cash Provided by (Used In)
        Financing Activities                          -          148,518



    NET INCREASE (DECREASE) IN CASH              (3,588)           1,047


    CASH - Beginning of Period                    5,281            4,234
                                             -----------       ----------

    CASH - End of Period                          1,693            5,281
                                             ===========       ==========



                   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.

       Franchising Operations

       Effective January 24, 1997, ISO acquired 100% stock of Franchise
       Connection, Inc. and its wholly owned subsidiary Brilliant Marketing,
       Inc.  The Acquisition was accounted for as a purchase by ISO and the
       accompanying financial statements present historical results of ISO
       and include Franchise Connection, Inc. and Brilliant Marketing, Inc.
       activities from the effective date of the acquisition.

       Franchise Connection, Inc. was incorporated in Colorado in 1996 with
       headquarters in Denver, Colorado.  The Company planed to form strategic
       partnerships with prospective or existing franchise operations
       (Franchisers) under which it will provide them with marketing and sales
       services plus business and legal services in return for an equity


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, 1999.
       Following is a summary of significant accounting policies.


       Consolidation

       The financial statements include the accounts of ISO and its wholly-
       owned subsidiaries Franchise Connection, Inc., Brilliant Marketing,
       Inc., and Magna Dry, Inc.  All significant inter-company balances have
       been eliminated in consolidation.


       Income Taxes

       The Company has no current or deferred income tax liability due to
       accumulated losses during the development stage. The Company has net
       operating losses totaling $3,172,703 which is available to offset
       future taxable income. These NOL's expire through 2009. Since
       realization of the tax benefits of  these net operating losses is
       not assured beyond any reasonable doubt, no recognition has been
       given to possible future tax  benefits in the financial statements.
       A deferred tax benefit is of $1,170,000 has been offset by a
       valuation allowance.


       Use of Estimates

       The preparation of financial statements in conformity with generally
       accepted accounting principles requires management to make estimates
       and assumptions that affect reported amounts of assets and liabilities
       and disclosure of contingent assets and liabilities at the date of the
       financial statements and the reported amounts of revenues and expenses
       during the reporting period. Actual results differ from those estimates.


Note 3.
-------
       During the quarter ended June 30, 1999, the Company incurred a
       net loss of  $3,942, and as of that date had accumulated a deficit
       of $3,172,703. The Company had slight operations during the first
       fiscal quarter covered by these statements and incurred a small loss
       for the quarter of $3,942.


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 operations through June 30, 1999 consisted of
       residential home construction as general contractor as well as the
       holding company of Franchise Connection, Inc., a strategic
       conglomerate of new and emereging franchise companies and a team of
       franchise experts that work together to match the aspirations of
       entrepreneurs with viable analogous franchise concepts.


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

       During the first fiscal  quarter ended June 30, 1999, the Company had
       revenues of $18,461 and engaged in limited operations primarily those
       of franchise operations in comparison to revenues of $42,870
       in the first fiscal quarter of 1998. The Company realized a loss of
       $3,942 in the first quarter of 1999 compared to a loss of $56,891
       in the first quarter of 1998. The Company has accumulated a deficit
       since inception totaling $3,172,703. The loss realized was primarily
       due to general and administrative expenses.


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

       The Company has total assets of $70,944 including cash or cash
       equivalents at the end of the first fiscal quarter 1999 of $1,693
       compared to total assets of $74,886 including cash or cash
       equivalents of $5,135 at the end of the first fiscal quarter of 1998.


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

       At June 30, 1999, the Company had net operating loss carryforwards
       for United States and German income tax purposes totaling $3,172,703,
       which are available to offset future taxable income.  These NOL's
       expire through 2009.


       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 will complete in the
       secojnd fiscal quarter of 1998. The house will be offered to the
       public for sale September 1, 1998. When the first residential house
       is 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 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 September
       1999. The Company's contingency plan in this regard is to move accounts
       from any institution that cannot be certified Year 2000 compliant
       by September 30, 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: September 7, 1999

                                  ISO BLOCK PRODUCTS USA, INC.


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




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