EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)





CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)





OCTOBER 31, 2002



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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

CONSOLIDATED BALANCE SHEETS

(Unaudited - Prepared by Management)



|                                   | October 31,
2002 | April 30,
2002
|---------------------------------- | ---------------- | --------------
|                                   |                  |               
|                                   |                  |               
|                                   |                  |               
|ASSETS                             |                  |               
|                                   |                  |               
|Current                            |                  |               
|Cash                               | $
1,829          | $
18,354      
|Accounts receivable                | 200,820          | 213,987       
|Marketable securities              | 1                | -             
|Prepaid expenses                   | 64,618           | 26,556        
|Current portion of note receivable | 24,000           | -             
|                                   |                  |               
|Total current assets               | 291,268          | 258,897       
|                                   |                  |               
|Capital assets(Note 4)             | 24,011           | 18,753        
|                                   |                  |               
|Investment (Note 5)                | 42,500           | -             
|                                   |                  |               
|Note receivable                    | 24,000           | -             
|                                   |                  |               
|Other assets                       | 2,453            | 415           
|                                   |                  |               
|Total assets                       | $
384,232        | $
278,065     





- continued -



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

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

CONSOLIDATED BALANCE SHEETS

(Unaudited - Prepared by Management)



|                                               | October 31,
2002                            | April 30,
2002
|---------------------------------------------- | ------------------------------------------- | --------------
|                                               |                                             |               
|                                               |                                             |               
|                                               |                                             |               
|Continued                                      |                                             |               
|                                               |                                             |               
|                                               |                                             |               
|LIABILITIES AND STOCKHOLDERS DEFICIENCY       |                                             |               
|                                               |                                             |               
|Current                                        |                                             |               
|Bank indebtedness                              | $
65,459                                    | $
-           
|Accounts payable and accrued liabilities       | 270,723                                     | 173,288       
|Current portion of capital lease obligations   | 2,703                                       | 6,524         
|Loan payable (Note 6)                          | 1,205                                       | 3,113         
|                                               |                                             |               
|Total current liabilities                      | 340,090                                     | 182,925       
|                                               |                                             |               
|Capital lease obligations(Note 7)              | -                                           | 2,622         
|                                               |                                             |               
|Due to related parties (Note 8)                | 186,490                                     | 197,220       
|                                               |                                             |               
|Total liabilities                              | 526,580                                     | 382,767       
|                                               |                                             |               
|Stockholders deficiency                       |                                             |               
|Capital stock                                  |                                             |               
|Authorized                                     |                                             |               
|50,000,000                                     | common shares with a par value of $0.001    |               
|25,000,000                                     | preferred shares with a par value of $0.001 |               
|Issued and outstanding                         |                                             |               
|28,961,500                                     | common shares (April 30, 2002  11,034,000) | 28,962        
|Additional paid-in capital                     | 186,000                                     | -             
|Deficit                                        | (357,310)                                   | (104,766)     
|                                               |                                             |               
|                                               | (142,348)                                   | (104,702)     
|                                               |                                             |               
|Total liabilities and stockholders deficiency | $
384,232                                   | $
278,065     



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

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

(Unaudited - Prepared by Management)



|                                         | Three Month
Period Ended
October 31,
2002 | Three Month
Period Ended
October 31,
2001 | Six Month
Period Ended
October 31,
2002 | Six Month
Period Ended
October 31,
2001
|---------------------------------------- | ----------------------------------------- | ----------------------------------------- | --------------------------------------- | ---------------------------------------
|                                         |                                           |                                           |                                         |                                        
|                                         |                                           |                                           |                                         |                                        
|                                         |                                           |                                           |                                         |                                        
|REVENUE                                  | $
294,342                                 | $
266,102                                 | $
656,830                               | $
515,557                              
|                                         |                                           |                                           |                                         |                                        
|                                         |                                           |                                           |                                         |                                        
|EXPENSES                                 |                                           |                                           |                                         |                                        
|Amortization                             | 1,025                                     | 1,124                                     | 2,055                                   | 2,266                                  
|Consulting, marketing and subcontractors | 286,331                                   | 198,108                                   | 693,527                                 | 400,477                                
|Salaries and management fees             | 55,117                                    | 51,007                                    | 121,546                                 | 89,580                                 
|Selling, general and administration      | 56,168                                    | 46,731                                    | 92,246                                  | 90,341                                 
|                                         |                                           |                                           |                                         |                                        
|                                         | 398,641                                   | 296,970                                   | 909,374                                 | 582,664                                
|                                         |                                           |                                           |                                         |                                        
|                                         |                                           |                                           |                                         |                                        
|Net loss for the period                  | $
(104,299)                               | $
(30,868)                                | $
(252,544)                             | $
(67,107)                             
|                                         |                                           |                                           |                                         |                                        
|                                         |                                           |                                           |                                         |                                        
|Basic and diluted loss per common share  | $
0.00                                    | $
0.00                                    | $
(0.01)                                | $
0.00                                 
|                                         |                                           |                                           |                                         |                                        
|                                         |                                           |                                           |                                         |                                        
|Weighted average number of               |                                           |                                           |                                         |                                        
|common shares outstanding                | 28,921,283                                | 16,005,000                                | 27,260,519                              | 16,005,000                             



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

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

CONSOLIDATED STATEMENT OF SHAREHOLDERS' DEFICIENCY

(Unaudited - Prepared by Management)



|                                        | Capital Stock    |          |                     |            
|--------------------------------------- | ---------------- | -------- | ------------------- | -----------
|                                        | Number
of Shares | Amount   | Contributed
Surplus | Deficit    
|                                        |                  |          |                     |            
|                                        |                  |          |                     |            
|                                        |                  |          |                     |            
|Balance at April 30, 2002               | 100              | $
64     | $
-                 | $
(104,766)
|                                        |                  |          |                     |            
|Capital stock of Edgetech Services Inc. |                  |          |                     |            
|at May 22, 2002                         | (100)            | (64)     | 64                  | -          
|                                        |                  |          |                     |            
|Capital stock of the Company at         |                  |          |                     |            
|May 22, 2002                            | 11,659,000       | 11,659   | (11,659)            | -          
|                                        |                  |          |                     |            
|Shares issued to acquire Edgetech       |                  |          |                     |            
|Services Inc.                           | 16,005,000       | 16,005   | 80,643              | -          
|                                        |                  |          |                     |            
|Shares issued for finders' fee on the   |                  |          |                     |            
|acquisition of Edgetech Services Inc.   | 825,000          | 825      | 40,425              | -          
|                                        |                  |          |                     |            
|Shares issued for cash                  | 282,500          | 283      | 48,217              | -          
|                                        |                  |          |                     |            
|Shares issued for services              | 20,000           | 20       | 2,980               | -          
|                                        |                  |          |                     |            
|Shares issued for settlement of debt    | 170,000          | 170      | 25,330              | -          
|                                        |                  |          |                     |            
|Loss for the period                     | -                | -        | -                   | (252,544)  
|                                        |                  |          |                     |            
|Balance at October 31, 2002             | 28,961,500       | $
28,962 | $
186,000           | $
(357,310)





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

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - Prepared by Management)

SIX MONTH PERIOD ENDED OCTOBER 31



|                                                                | 2002        | 2001      
|--------------------------------------------------------------- | ----------- | ----------
|                                                                |             |           
|                                                                |             |           
|                                                                |             |           
|CASH FLOWS FROM OPERATING ACTIVITIES                            |             |           
|Net loss for the period                                         | $
(252,544) | $
(67,107)
|Items not involving cash:                                       |             |           
|Amortization                                                    | 2,055       | 2,266     
|Stock issued for services                                       | 25,240      | -         
|                                                                |             |           
|Changes in non-cash working capital items:                      |             |           
|Decrease in accounts receivable                                 | 16,219      | 33,610    
|Increase in prepaid expenses                                    | (17,905)    | (11,009)  
|Increase (decrease) in accounts payable and accrued liabilities | 95,624      | (3,721)   
|                                                                |             |           
|Net cash used in operating activities                           | (131,311)   | (45,961)  
|                                                                |             |           
|CASH FLOWS FROM FINANCING ACTIVITIES                            |             |           
|Capital lease obligations                                       | (6,497)     | (6,477)   
|Bank indebtedness                                               | 65,459      | -         
|Issuance of capital stock                                       | 48,500      | -         
|Due to related parties                                          | (11,884)    | (318)     
|Loan payable                                                    | (1,926)     | 36,585    
|                                                                |             |           
|Net cash provided by financing activities                       | 93,652      | 29,790    
|                                                                |             |           
|CASH FLOWS FROM INVESTING ACTIVITIES                            |             |           
|Purchase of capital assets                                      | (1,918)     | (2,597)   
|Cash acquired on acquisition of subsidiary                      | 22,945      | -         
|                                                                |             |           
|Net cash provided by (used in) investing activities             | 21,027      | (2,597)   
|                                                                |             |           
|Change in cash during the period                                | (16,632)    | (18,768)  
|                                                                |             |           
|Cash, beginning of period                                       | 18,461      | (40,103)  
|                                                                |             |           
|Cash (indebtedness), end of period                              | $
1,829     | $
(58,871)
|                                                                |             |           
|Supplemental disclosure with respect to cash flows:             |             |           
|Common shares issued for services                               | $
3,000     | $
-       
|Common shares issued for acquisition of subsidiary              | 96,648      | -         
|Common shares issued for finders' fee                           | 41,250      | -         
|Common shares issued for settlement of debt                     | 25,500      | -         



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

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)

OCTOBER 31, 2002









1.

NATURE OF OPERATIONS AND BASIS OF PRESENTATION



The Company was incorporated under the laws of Nevada on May 16, 1997 as Newsgurus.com, Inc., and changed its name to Secure Enterprise Solutions Inc. (the Company) on January 10, 2002.  Prior to the name change, the Companys principal business consisted of providing opinion and information in the areas of money, health and lifestyles and e-commerce through the Internet.  Pursuant to resolutions by the shareholders, the Company decided to sell its media assets and move into the business of providing security services and IT solutions and services.



On May 22, 2002, the Company acquired all of the issued and outstanding capital stock of Edgetech Services Inc. ("Edgetech").  Edgetech specializes in IT placement outsourcing training and software development projects.  As consideration for all of the common shares of Edgetech, the Company issued 16,005,000 common shares and made payments of $66,000 to the former shareholders of Edgetech.



Legally, the Company is the parent of Edgetech.  However, control of the combined companies passed to the former shareholders of Edgetech.  This type of share exchange has been accounted for as a recapitalization of the Company using accounting principles applicable to reverse acquisitions.  In accounting for this transaction:



i)

Edgetech is deemed to be the purchaser and parent company for accounting purposes.  Accordingly, its net assets are included in the balance sheet at book values.



ii)

The deemed acquisition of the Company is accounted for by the purchase method with the net assets of the Company recorded at fair market value at the date of acquisition.  At the date of acquisition the Company's net assets were $96,648.  The net assets acquired were as follows:



Cash$
22,945Receivable1,800Prepaid expenses20,000Notes receivable48,000Capital assets5,285Other assets2,036100,066Accounts payable and accrued liabilities(3,418)Net assets$
96,648




iii)

Historical cost financial statements presented are those of Edgetech, with equity amounts of Edgetech restated to reflect the number of shares received in the business combination.



iv)

The consolidated statements of operations and cash flows include Edgetech's results of operations and cash flows for the three and six month periods ended October 31, 2002 and the Company's results of operations from May 22, 2002 (date of acquisition).  The consolidated statements of operations and cash flows for the three and six month periods ended October 31, 2001 are those of Edgetech's.



Subsequent to the acquisition, the Company changed its name to Edgetech Services Inc.

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)

OCTOBER 31, 2002









1.

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (cont'd)



The accompanying unaudited consolidated financial statements have been prepared by the Company in conformity with generally accepted accounting principles in the United States of America for interim financial statements.  In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary (consisting of normal recurring accruals) to present fairly the financial information contained therein.  These consolidated statements do not include all disclosures required by generally accepted accounting principles in the United States of America and should be read in conjunction with the audited financial statements of the Company for the year ended April 30, 2002.  The results of operations for the six month period ended October 31, 2002 are not necessarily indicative of the results to be expected for the year ending April 30, 2003.







2.

GOING CONCERN



These consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America  with the on-going assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business.  However, certain conditions noted below currently exist which raise substantial doubt about the Company's ability to continue as a going concern.  These consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.



The operations of the Company have primarily been funded by the issuance of capital stock.  Continued operations of the Company are dependent on the Company's ability to complete public equity financing or generate profitable operations in the future.  Management's plan in this regard is to secure additional funds through operations.



October 31,
2002April 30,
2002(Unaudited)Deficit$
(357,310)$
(104,766)Working capital (deficiency)(48,822)75,972








3.

SIGNIFICANT ACCOUNTING POLICIES



Use of estimates



The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the year.  Actual results could differ from these estimates.

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)

OCTOBER 31, 2002









3.

SIGNIFICANT ACCOUNTING POLICIES (cont'd)



Principles of consolidation



These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary.  Significant inter-company transactions have been eliminated upon consolidation.



Cash and equivalents



The Company considers all investments with a maturity of three months or less to be cash equivalents.



Investments



Long-term investments with which the Company does not exercise any significant influence are carried at cost.  If it is determined that the value of the investment is permanently impaired, it is written down to its estimated net realizable value.



Loss per share



In February 1997, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per Share". Under SFAS No. 128, basic and diluted earnings per share are to be presented.  Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the year.  Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares.



Capital assets



Capital assets are recorded at cost less accumulated amortization.  Amortization is recorded annually on a declining balance basis at the following annual rates:



Office equipment and furniture20%Computer equipment30%Computer software100%Books20%




Income taxes



Income taxes are provided in accordance with SFAS No. 109, "Accounting for Income Taxes".  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards.  Deferred tax expenses (benefit) result from the net change during the year of deferred tax assets and liabilities.



Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)

OCTOBER 31, 2002









3.

SIGNIFICANT ACCOUNTING POLICIES (cont'd)





Other assets



Intangible assets, being merchant credit rights, are amortized over 3 years on a straight line basis.



Stock-based compensation



SFAS No. 123, "Accounting for Stock-Based Compensation," encourages, but does not require, companies to record compensation cost for stock-based employee compensation plans at fair value.  The Company has chosen to account for stock-based compensation using Accounting Principles Board Opinion (APB) No. 25, "Accounting for Stock Issued to Employees."  Accordingly, compensation cost for stock options is measured as the excess, if any, of the quoted market price of the Company's stock at the date of the grant over the amount an employee is required to pay for the stock.



The Company accounts for stock-based compensation issued to non-employees in accordance with the provisions of SFAS 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services".



Foreign currency translation



The Company's operations are substantially through a Canadian subsidiary whose functional currency is the Canadian dollar. These consolidated financial statements are stated in US dollars. Assets and liabilities denominated in Canadian dollars are translated to US dollars using the exchange rate in effect at the year end date. Revenue and expenses are translated to US dollars using the average rate of exchange for the respective period.



The Company also conducts transactions in currencies other than the Canadian dollar. These amounts are translated as follows: Transactions are translated at the rate in effect on the transaction date. Monetary assets and liabilities denominated in foreign currencies are then translated using the rate in effect at the year end date.



Financial instruments



The Company's financial instruments consist of cash, accounts receivable, marketable securities, notes receivable, bank indebtedness, accounts payable and accrued liabilities, loan payable, capital lease obligations, and amount due to related parties.  Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.  The fair value of these financial instruments approximates their carrying value, unless otherwise noted.



The fair value of the amount due to related parties is not determinable as it has no repayment terms.



Revenue recognition



Revenues from operations are recognized when services are provided and ultimate collection is reasonably assured.

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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)

OCTOBER 31, 2002









4.

CAPITAL ASSETS



October 31, 2002April 30, 2002CostAccumulated
AmortizationNet
Book ValueCostAccumulated
AmortizationNet
Book ValueOffice equipmentand furniture$
19,562$
5,654$
13,908$
12,526$
4,765$
7,761Computer equipment30,68820,8439,84530,39719,40510,992Computer software13,30013,04225812,92212,922-Books3,2523,252-3,2413,241-$
66,802$
42,791$
24,011$
59,086$
40,333$
18,753






5.

INVESTMENT



On March 11, 2002 the Company signed a letter of intent to acquire 51% of Secured Infrastructure Design Corporation.  To date the, the Company paid $30,000 and issued 100,000 common shares pursuant to rule 144 for a 9.8% post interest, with a total value of $42,500.  Currently, there are no further plans to make any further payments or share issuances.





6.

LOAN PAYABLE



The loan is a short-term demand loan and is unsecured and non-interest bearing.





7.

CAPITAL LEASE OBLIGATIONS



The Company leases certain computer equipment under agreements that are classified as capital leases.  The future minimum lease payments required under the capital leases are as follows:



2003$
2,803Total minimum payments2,803Less amount representing interest(100)2,703Current portion(2,703)$
-


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<PAGE>

EDGETECH SERVICES INC.

(formerly Secure Enterprise Solutions Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)

OCTOBER 31, 2002









8.

DUE TO RELATED PARTIES



The amount due to related parties is non interest bearing and is unsecured.





9.

COMMITMENTS



a)

The Company has a lease agreement for its current premises for 5 years.  The agreement requires the Company to make payments as follows:



i)

Years 1 and 2:  $17,078 per annum

ii)

Years 3 and 4:  $18,113 per annum

iii)

Year 5:  $18,631 for the year



b)

On November 10, 2001, the Company signed a 10 year reseller agreement with C31 Operations Inc. that permits both parties to sell specified products and services of the other.





10.

RELATED PARTY TRANSACTIONS



During the period ended October 31, 2002, the Company entered into the following related party transaction:



a)

The Company accrued consulting fees of $29,750 to companies controlled by directors.



b)

Included in accounts payable is $29,750 owed to companies controlled by directors of the Company.



The amounts charged to the Company for the services provided have been determined by negotiations amongst the parties and, in certain cases, are covered by signed agreements.  These transactions were in the normal course of operations and were measured at the exchange value which represented the amount of consideration established and agreed to by the related parties.