SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           FORM 10-QSB

[X]    Quarterly Report Under Section 13 or 15(d) of the Securities Exchange
       Act of 1934

       For Quarter Ended: December 31, 1999 Commission File No. 33-18143-D

                                OR

[ ]   Transition Report Pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934

                  Commission File No. 33-18143-D

                         CORVALLIS, INC.
      (Exact name of registrant as specified in its charter)

                 Nevada                        87-0449399
(State or other jurisdiction               (I.R.S. Employer
of incorporation or organization)           Identification No.)


                       1486 South 11th East
                    Salt Lake City, Utah 84105
                          (801) 487-3893
(Address and telephone number of principal executive offices and principal
place of business)



     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 for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes  [ X ]   No  [   ]

     As of the date of filing of this report, the Registrant had a total of
1,505,000 shares of common stock issued and outstanding.

<PAGE>

                        TABLE OF CONTENTS

PART I: FINANCIAL INFORMATION

Item 1:  Financial Statements ............................................. 3

Item 2:  Management's Discussion and Analysis or Plan of Operations .......13

PART II: OTHER INFORMATION

Item 6:  Exhibits and Reports filed on Form 8-K .......................... 13

Signatures................................................................ 14

<PAGE>


     In this registration statement references to "Corvallis," "we," "us," and
"our" refer to Corvallis, Inc.

                    FORWARD LOOKING STATEMENTS

     This Form 10-QSB contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.  For this
purpose any statements contained in this Form 10-QSB that are not statements
of historical fact may be deemed to be forward-looking statements.  Without
limiting the foregoing, words such as "may," "will," "expect," "believe,"
"anticipate," "estimate" or "continue" or comparable terminology are intended
to identify forward-looking statements.  These statements by their nature
involve substantial risks and uncertainties, and actual results may differ
materially depending on a variety of factors, many of which are not within
Corvallis' control.  These factors include but are not limited to economic
conditions generally and in the industries in which Corvallis may participate;
competition within Corvallis'  chosen industry, including competition from
much larger competitors; technological advances and failure by Corvallis to
successfully develop business relationships.

                  PART I: FINANCIAL INFORMATION

ITEM 1:  FINANCIAL STATEMENTS

                         Corvallis, Inc.
                  (a Development Stage Company)
                       Financial Statements
                        December 31, 1999

<PAGE>



                         C O N T E N T S



Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . .  3

Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4

Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . .  5

Statements of Stockholders' Equity . . . . . . . . . . . . . . . . . . . .  6

Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . .  9

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

<PAGE>


                   CROUCH,  BIERWOLF & CHISHOLM
                   Certified Public Accountants
                   50 West Broadway, Suite 1130
                    Salt Lake City, Utah 84101
                      Office (801) 363-1175
                        Fax (801) 363-0615


                   INDEPENDENT AUDITOR'S REPORT



To the Board of Directors and Stockholders of
Corvallis, Inc.
Salt Lake City, Utah

The accompanying balance sheets as of December 31, 1999 and the related
statements of operations, stockholders' equity, and cash flows for the six
months ended December 31, 1999 and 1998 were not audited by us and,
accordingly, we do not express and opinion on them.

The accompanying balance sheet as of June 30, 1999 was audited by us and we
expressed an unqualified opinion on it in our report dated July 25, 1999.

/s/ Crouch, Bierwolf & Chisholm


January 26, 2000

<PAGE>
                         Corvallis, Inc.
                  (a Development Stage Company)
                          Balance Sheets

                              Assets

                                                December 31,      June 30,
                                                   1999            1999
                                                -------------- -------------
Current assets
 Cash                                           $           -  $          -
                                                -------------- -------------
    Total Current Assets                        $           -  $          -
                                                -------------- -------------
    Total Assets                                $           -  $          -
                                                ============== =============

               Liabilities and Stockholders' Equity

CURRENT LIABILITIES

 Accounts payable                               $       5,966  $      5,966
                                                -------------- -------------
    Total Current Liabilities                           5,966         5,966
                                                -------------- -------------
STOCKHOLDERS' EQUITY (DEFICIT)

   Common Stock, authorized
    200,000,000 shares of $.001 par value,
     issued and outstanding 1,505,000
     and 1,505,000 shares, respectively                 1,505         1,505
   Additional Paid-in Capital                         201,799       201,799
   Deficit Accumulated During the
     Development Stage                               (209,270)     (209,270)
                                                -------------- -------------
    Total Stockholders' Equity (Deficit)               (5,966)       (5,966)
                                                -------------- -------------
    Total Liabilities and Stockholders' Equity  $           -  $          -
                                                ============== =============

The accompanying notes are an integral part of these financial statements.
                                4
<PAGE>
                         Corvallis, Inc.
                  (a Development Stage Company)
                     Statements of Operations

<TABLE>
<CAPTION>
                                  For the Three Months        For the Six Months     Cumulative
                                   Ended December 31,          Ended December 31,      Total
                                 ------------------------- ------------------------   Since
                                  1999           1998          1999           1998   Inception
                                 ------------- ----------- ------------ ----------- -------------
<S>                              <C>           <C>         <C>          <C>         <C>
Revenues                         $          -  $        -  $         -  $        -  $          -

Expenses:

  Consulting fees                           -           -            -           -        12,540
  Legal                                     -           -            -           -        11,127
  Accounting                                -           -            -           -        11,463
  General & Administrative                  -           -            -       1,037        17,386
                                 ------------- ----------- ------------ ----------- -------------
    Total Expenses                          -           -            -       1,037        52,516
                                 ------------- ----------- ------------ ----------- -------------
Net loss before
 discontinued operations         $          -  $        -  $         -  $   (1,037)      (52,516)
                                 ------------- ----------- ------------ ----------- -------------
Loss on discontinued operations             -           -            -           -      (156,754)
                                 ------------- ----------- ------------ ----------- -------------
Net Loss                         $          -  $        -  $         -  $   (1,037) $   (209,270)
                                 ============= =========== ============ =========== =============
Weighted Average Loss Per Share  $      (.000) $    (.000) $     (.000) $    (0.00) $     (0.214)
                                 ============= =========== ============ =========== =============
Weighted Average
 Shares Outstanding                 1,505,000   1,505,000    1,505,000   1,505,000       976,550
                                 ============= =========== ============ =========== =============

</TABLE>

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

                                5
<PAGE>

                         Corvallis, Inc.
                  (a Development Stage Company)
                Statement of Stockholders' Equity
<TABLE>
<CAPTION>
                                                                              Deficit
                                                                              Accumulated
                                                               Additional     During the
                                          Common Stock         paid-in        Development
                                      Shares         Amount    Capital        Stage
                                   ------------- ------------- ------------- -------------
<S>                                <C>           <C>           <C>           <C>

Balance, June 30,1995                 1,020,002  $      1,020  $    174,635  $   (176,385)

Issuance of common stock for
  services rendered at $0.025
  per share in March, 1996               80,000           80          1,920             -

Fractional shares from reverse
  stock split                                 7            -              -             -

Net loss for the year ended
  June 30, 1996                               -            -              -        (7,535)
                                   ------------- ------------- ------------- -------------
Balance, June 30, 1996                1,250,009         1,250       181,805      (183,920)

Shares issued for cash in
  October 1996                           60,000            60         5,940             -

Issuance of common stock for
  services rendered at $0.025 per
  share in October 1996                  20,000            20         2,000             -

Net Loss for the year ended
 June 30,1997                                 -            -              -        (9,840)
                                   ------------- ------------- ------------- -------------
Balance June 30, 1997                 1,330,009  $      1,330  $    189,745  $   (193,760)

Shares issued for services and
 expenses paid $.06 share               174,991           175        10,325             -

Net loss for the year ended
 June 30, 1998                                -            -             -        (13,037)
                                   ------------- ------------- ------------- -------------
Balance, June 30, 1998                1,505,000         1,505       200,070      (206,797)

Net loss for the year ended
 June 30, 1999                                -            -             -         (2,473)
                                   ------------- ------------- ------------- -------------
Balance, June 30, 1999                1,505,000         1,505       200,070      (209,270)

Forgiveness of debt by shareholders
 classified as Capital Contributions          -            -          1,729             -

Net loss for the six month
 period ended December 31, 1999
  (unaudited)                                 -            -              -             -
                                   ------------- ------------- ------------- -------------
Balance, December 31, 1999
     (unaudited)                   $  1,505,000  $      1,505  $    201,799  $   (209,270)
                                   ============= ============= ============= =============

The accompanying notes are an integral part of these financial statements.
                                   6
</TABLE>
<PAGE>
                            Corvallis, Inc.
                     (a Development Stage Company)
                   Statement of Stockholders' Equity
<TABLE>
<CAPTION>
                                                                              Deficit
                                                                              Accumulated
                                                               Additional     During the
                                          Common Stock         paid-in        Development
                                      Shares         Amount    Capital        Stage
                                   ------------- ------------- ------------- -------------
<S>                                <C>           <C>           <C>           <C>
Balance, June 30, 1992                  745,066  $        745  $    151,298  $   (152,943)

Net loss for the year ended
  June 30, 1993                              -             -             -         (1,335)
                                   ------------- ------------- ------------- -------------
Balance, June 30, 1993                  745,066           745       151,298      (154,278)

Issuance of common stock for
  extinguishment of stockholders'
  payable at $0.2587 per share           54,936            55        14,157            -

Net loss for the year ended
  June 30, 1994                              -              -            -        (14,252)
                                   ------------- ------------- ------------- -------------
Balance, June 30, 1994                  800,002           800       165,455      (168,530)

Issuance of common stock for
  extinguishment of stockholders'
  payable at $0.04 per share in
  March, 1995                            85,000            85         3,315            -

issuance of common stock for
  extinguishment of stockholders'
  payable at $0.05 per share in
  March, 1995                            60,000            60         2,940            -

Issuances of common stock for
  services rendered at $.04 per
  share in March, 1995                   75,000            75         2,925            -

Net loss for the year ended
  June 30, 1995                              -             -             -         (7,855)
                                   ------------- ------------- ------------- -------------
Balance, June 30, 1995                1,020,002  $      1,020  $    174,635  $   (176,385)
                                   ------------- ------------- ------------- -------------
Capital contributed by
  extinguishment of
  stockholders' payable                      -             -          1,150            -

Issuance of common stock for
  extinguishment of stockholders'
  payable at $0.05 per share in
  September, 1995                       20,000             20           980            -

Issuance of common stock for
   extinguishment of stockholders'
  payable at $0.025 per share in
  March, 1996                          130,000            130         3,120            -


The accompanying notes are an integral part of these financial statements.
                                   7
</TABLE>
<PAGE>

                            Corvallis, Inc.
                     (a Development Stage Company)
                   Statement of Stockholders' Equity
<TABLE>
<CAPTION>
                                                                              Deficit
                                                                              Accumulated
                                                               Additional     During the
                                          Common Stock         paid-in        Development
                                      Shares         Amount    Capital        Stage
                                    ------------- ------------- ------------- -------------
<S>                                 <C>           <C>           <C>           <C>
Balance at inception                           -  $          -  $          -  $         -

Issuance of common stock
  at inception at $0.1875 per share      112,000           112        20,888            -

Issuance of common stock in
  July, 1988 at $1.25 per share,
  less deferred offering costs
  offset against paid-in capital         105,120           105        91,630            -

Net loss from inception to
  June 30, 1989                                -             -             -       (19,673)
                                    ------------- ------------- ------------- -------------
Balance, June 30, 1989                   217,120           217       112,518       (19,673)

Issuance of common stock for
  fixed assets and services in
  August, 1989                           506,613           507        18,801             -

Issuance of common stock
  in private placement at $0.9375
  per share in November, 1989             21,333            21        19,979             -

Net loss for the year ended
  June 30, 1990                                -             -             -      (132,670)
                                    ------------- ------------- ------------- -------------
Balance, June 30, 1990                   745,066           745       151,298      (152,343)

Net loss for the year ended
   June 30, 1990                               -             -             -          (300)
                                    ------------- ------------- ------------- -------------
Balance, June 30, 1991                   745,066           745       151,298      (152,643)

Net loss for the year ended
  June 30, 1992                                -             -             -          (300)
                                    ------------- ------------- ------------- -------------
Balance, June 30, 1992                   745,066  $        745  $    151,298  $   (152,943)
                                    ------------- ------------- ------------- -------------

The accompanying notes are an integral part of these financial statements.
                                   8
</TABLE>
<PAGE>

                            Corvallis, Inc.
                     (a Development Stage Company)
                        Statement of Cash Flows
<TABLE>
<CAPTION>
                                                                     From
                                                                     Inception on
                                                                     September 28,
                                          For the Six Months         1987 through
                                          ended December 31,         December 31,
                                           1999          1998        1999
                                       -------------- -------------- --------------
<S>                                    <C>            <C>            <C>
Cash Flows form Operating Activities:

   Net loss                            $           -  $      (1,037) $    (209,270)
   Discontinued operations                         -              -         19,308
   Non-cash services rendered and
     expenses paid by stockholders'                -              -         39,357
   Increase (decrease) in current
     liabilities                                   -          1,037          5,966
                                       -------------- -------------- --------------
     Net Cash Provided (Used)
       by Operating Activities                     -              -       (144,639)
                                       -------------- -------------- --------------
Cash Flows from Investment Activities:             -              -              -
                                       -------------- -------------- --------------
Cash Flows from Financing  Activities:

   Issuance of common stock                        -              -        142,910
   Capital Contribution                            -              -          1,729
                                       -------------- -------------- --------------
     Net Cash Provided by
       Financing Activities                        -              -        144,639
                                       -------------- -------------- --------------
Net increase (decrease) in cash                    -              -              -

Cash, beginning of year                            -              -              -
                                       -------------- -------------- --------------
Cash, end of year                      $           -  $           -  $           -
                                       ============== ============== ==============
Cash, paid during
  the year for:

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

Noncash financing activities

     Issuance of common stock for
       fixed assets                    $           -  $           -  $      19,308
     Issuance of common stock for
       stockholders' payable           $           -  $           -  $      20,612
     Issuance of stock for services
       rendered                        $           -  $           -  $           -

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

                                   9
</TABLE>
<PAGE>

                         Corvallis, Inc.
                  (a Development Stage Company)
                        December 31, 1999

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

GENERAL
-------

Corvallis, Inc. (the Company) has elected to omit substantially all footnotes
to the financial statements for the six months ended December 31, 1999 since
there have been no material changes (other than indicated in other footnotes)
to the information previously reported by the Company in their Annual Report
filed of Form 10-KSB for the Fiscal year ended June 30, 1999.

UNAUDITED INFORMATION
---------------------

The information furnished herein was taken from the books and records of the
Company without audit.  However, such information reflects all adjustments
which are, in the opinion of management, necessary to properly reflect the
results of the interim period presented.  The information presented is not
necessarily indicative of the results from operations expected for the full
fiscal year.

                                  10
<PAGE>

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

     On December 31, 1999, we had no cash and no other liquid assets or
resources.  We had $5,966 in current liabilities.  We did not post any
revenues for the fiscal year ended June 30, 1999 nor during the interium
period ended December 31, 1999.  We essentially had no operations.  We have no
material commitments for capital expenditures for the next twelve months.

     We anticipate that until a business opportunity is found and sufficient
revenues are generated we will rely on the commitment of our management and
principal shareholders to cover all operating expenses and other costs. There
is no assurance that the management and shareholders' commitment will
ultimately prove to be adequate to allow us to enter into a business
opportunity.  Currently, we have no plans to raise additional capital,
however, we may elect to do so at some future date.

     At present, we do not have adequate capital to conduct any significant
operations.  Management intends to actively seek business opportunities during
the next twelve months.  Management believes that any business venture in
which we may become involved will be made by issuing shares of our authorized
but unissued common stock.  Such issuance will be effected in accordance with
available exemption under federal and state securities laws.  It is
anticipated that our liquidity, capital resources and financial statements
will be significantly different subsequent to the consummation of any such
transaction.

Year 2000

     We did not experience any disruptions or other problems connected with
the year 2000.


     PART II: OTHER INFORMATION

ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Part I Exhibits.

     Exhibit     Description
     --------    ---------------------
     27          Financial Data Schedule

     (b)  Reports on Form 8-K.  During the three months ended December 31,
1999, no reports on Form 8-K were filed by Corvallis.

<PAGE>

                            SIGNATURES

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


                                   CORVALLIS, INC.
                                   (Registrant)

                                          /s/ Whitney O. Cluff
Date: Feb. 2, 2000                 By:_________________________________
                                         Whitney O. Cluff
                                         President and Chief Executive Officer

                                         /s/ John Papanikolas
                                   By: _______________________________
                                          John Papanikolas
                                          Secretary/Treasurer