<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934.

For the quarterly period ended December 31, 2002

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934.

For the transition period from _____________________ to ___________________.

                         Commission file number: 0-26355

                                 eUNIVERSE, INC.

             (Exact name of registrant as specified in its charter)

            DELAWARE                                              06-1556248
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

      6060 CENTER DRIVE, SUITE #300
         LOS ANGELES, CALIFORNIA                                         90045
(Address of principal executive offices)                              (Zip Code)

                                  (310)215-1001
              (Registrant's telephone number, including area code)

     Indicate by check 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 [ ]

     Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

     As of December 31, 2002, there were 24,808,246 shares of eUniverse,
Inc. common stock outstanding.





<PAGE>

                                 eUNIVERSE, INC.

                                    FORM 10-Q

                     FOR THE QUARTER ENDED DECEMBER 31, 2002

                                      INDEX

PART I - FINANCIAL INFORMATION

   ITEM 1.  FINANCIAL STATEMENTS

         Consolidated Balance Sheets as of December 31, 2002 and
         March 31,2002.........................................................3

         Consolidated Statements of Operations for the three
         months and nine months ended December 31, 2002 and 2001...............4

         Statements of Cash Flows for the nine months ended
         December 31, 2002 and 2001............................................5

         Notes to Financial Statements.........................................6

   ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATION................................14

   ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK........20

   ITEM 4.  CONTROLS AND PROCEDURES...........................................20

PART II - OTHER INFORMATION

   ITEM 1.  LEGAL PROCEEDINGS.................................................20

   ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS...............20

   ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K..................................21


                                       2





<PAGE>

                                     PART I

                              FINANCIAL INFORMATION

ITEM 1. Financial Statements.

                        eUNIVERSE, INC. and Subsidiaries

                           Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                       December 31,     March 31,
                                                                           2002           2002
                                                                       ------------   ------------
                                                                       (Unaudited)
<S>                                                                    <C>            <C>
ASSETS

CURRENT ASSETS
   Cash and cash equivalents                                           $  5,410,382   $  8,007,784
   Accounts receivable, net of allowances for
      doubtful accounts of $860,242 and $452,239, respectively            7,116,305      5,022,745
   Inventory                                                              1,255,838             --
   Prepaid expenses                                                       3,047,091      1,488,069
   Deferred charges and other current assets                                263,045        551,100
                                                                       ------------   ------------
         Total Current Assets                                            17,092,661     15,069,698

RESTRICTED CASH                                                           1,294,117             --

FURNITURE AND EQUIPMENT, less accumulated depreciation
   of $1,149,150 and $563,120, respectively                               3,371,601      2,293,836

GOODWILL, net of amortization of $545,769
   and $545,769 respectively                                             15,307,553     12,298,241
OTHER INTANGIBLES, net of amortization of $1,485,979 and $649,803
   respectively                                                           5,133,151      4,576,249

Deferred charges                                                             29,930        197,222
Deposits and other assets                                                   557,397        142,407
                                                                       ------------   ------------

            TOTAL ASSETS                                               $ 42,786,409   $ 34,577,653
                                                                       ============   ============

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts payable                                                    $  2,146,188   $  2,253,811
   Accrued expenses                                                       4,902,466      4,153,122
   Deferred Revenue                                                         552,542      1,033,698
   Notes payable, short-term non-affiliate                                  184,204        450,000
   Current portion of long-term notes payable, non-affiliate              2,952,229      2,683,390
   Current portion of long-term notes payable, affiliate                    832,222        393,672
   Capitalizable lease obligations, current                               1,026,363         28,028
                                                                       ------------   ------------
         Total Current Liabilities                                       12,596,214     10,995,721
                                                                       ------------   ------------
LONG-TERM NOTES PAYABLE, LESS CURRENT PORTION, NON-AFFILIATE                313,809      2,387,356
LONG-TERM NOTES PAYABLE, LESS CURRENT PORTION, AFFILIATE                         --        518,357
CAPITALIZED LEASE OBLIGATIONS                                               425,992             --

SHAREHOLDERS' EQUITY
   Preferred stock, $.10 par value; 40,000,000 shares
      authorized; 2,872,665 and 2,872,665 shares
         issued and outstanding, respectively                               287,267        287,267
   Common stock, $.001 par value; 250,000,000 shares authorized;
      24,765,496 and 23,542,219 issued and outstanding, respectively         24,765         23,542
   Treasury stock                                                           (36,000)       (36,000)
   Additional paid-in capital                                            69,780,558     68,766,181
   Retained deficit                                                     (40,606,197)   (48,364,771)
                                                                       ------------   ------------
         Total Shareholders' Equity                                      29,450,394     20,676,219
                                                                       ------------   ------------

            TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                 $ 42,786,409   $ 34,577,653
                                                                       ============   ============
</TABLE>

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


                                      3





<PAGE>

                        eUniverse, Inc. and Subsidiaries

                      Cosolidated Statements of Operations

<TABLE>
<CAPTION>
                                                               Three Months Ended          Nine Months Ended
                                                                  December 31,                December 31,
                                                           -------------------------   -------------------------
                                                               2002          2001          2002          2001
                                                           -----------   -----------   -----------   -----------
<S>                                                        <C>           <C>           <C>           <C>
REVENUE                                                    $25,854,135   $10,128,554   $49,753,268   $21,880,670

COST OF GOODS SOLD                                           7,044,097     2,468,914    11,346,888     3,167,099
                                                           -----------   -----------   -----------   -----------

GROSS PROFIT                                                18,810,038     7,659,640    37,806,380    18,713,571
                                                           -----------   -----------   -----------   -----------

OPERATING EXPENSES:

   Marketing and sales                                       7,915,186     1,292,639    13,412,341     4,704,583
   Product development                                       3,671,424     1,836,778     7,924,314     4,651,083
   General and administrative                                3,528,559     2,255,597     8,163,710     5,422,088
   Amortization of goodwill and other intangibles              350,423       177,815       835,010       226,304
                                                           -----------   -----------   -----------   -----------

TOTAL OPERATING EXPENSES                                    15,465,593     5,562,829    30,335,376    15,004,058
                                                           -----------   -----------   -----------   -----------

   OPERATING INCOME                                          3,344,445     2,096,811     7,471,004     3,709,513

NONOPERATING INCOME (EXPENSE)
   Interest income                                              24,042        13,644        62,956        13,792
   Interest and other financing expense                       (104,910)     (206,977)     (419,568)     (501,754)
   Cancellation of stock options                                    --            --      (452,000)           --
   Other gains and losses                                           --            --       (24,000)           --
                                                           -----------   -----------   -----------   -----------

   INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES     3,263,577     1,903,478     6,638,392     3,221,551

INCOME TAXES                                                        --            --            --            --
                                                           -----------   -----------   -----------   -----------

   INCOME FROM CONTINUING OPERATIONS                       $ 3,263,577   $ 1,903,478   $ 6,638,392   $ 3,221,551
                                                           -----------   -----------   -----------   -----------

DISCONTINUED OPERATIONS:
   Loss from operations discontinued segment
    (net of applicable income taxes of $0)                          --       105,583      (148,818)       34,183

EXTRAORDINARY GAIN                                                  --            --     1,269,000            --
                                                           -----------   -----------   -----------   -----------

   NET INCOME                                              $ 3,263,577   $ 2,009,061   $ 7,758,574   $ 3,255,734
                                                           ===========   ===========   ===========   ===========

INCOME AVAILABLE TO COMMON SHARES                          $ 3,211,878   $ 2,009,061   $ 7,604,038   $ 3,255,734
                                                           ===========   ===========   ===========   ===========

Continuing operations earnings per common share            $      0.13   $      0.08          0.28   $      0.16
Discontinued operations earnings per common share          $        --   $      0.01         (0.01)  $        --
Extraordinary gain per common share                        $        --   $        --          0.05   $        --
                                                           -----------   -----------   -----------   -----------
Basic earnings per common share                            $      0.13   $      0.09          0.32   $      0.16
                                                           -----------   -----------   -----------   -----------
Diluted earnings per common share                          $      0.10   $      0.07          0.25   $      0.13
                                                           -----------   -----------   -----------   -----------

Basic weighted average common shares outstanding            24,600,496    22,514,621    24,142,979    20,245,135
                                                           -----------   -----------   -----------   -----------
Shares outstanding for diluted earnings per share           32,044,909    30,070,633    30,711,660    25,997,878
                                                           -----------   -----------   -----------   -----------
</TABLE>

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


                                        4





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES

                      Consolidated Statements of Cash flows

<TABLE>
<CAPTION>
                                                                Nine Months Ended December 31,
                                                                ------------------------------
                                                                     2002          2001
                                                                  -----------   -----------
<S>                                                               <C>           <C>
OPERATING ACTIVITIES
   Net income                                                     $ 7,758,574   $ 3,255,734

   Transactions not requiring cash:
      Depreciation                                                    588,424       224,257
      Amortization of intangibles                                     835,010       225,138
      Loss from discontinued operations                               148,818            --
      Extraordinary Gain from retirement of debt                   (1,269,000)           --
      Bad Debts                                                       529,086       353,827
     Stock and warrants granted to outside consultants and
         affiliates                                                   455,348       343,449
      Non-cash financing related costs                                     --       110,074
   Changes in current assets                                       (5,604,819)     (778,668)
   Changes in current liabilities                                      11,747     1,030,386
   Others                                                             (10,794)      138,350
                                                                  -----------   -----------
      NET CASH PROVIDED BY OPERATING ACTIVITIES                     3,442,394     4,902,547
                                                                  -----------   -----------

INVESTING ACTIVITIES
   Payment for investment                                            (250,000)           --
   Payment for acquisition                                         (3,780,459)           --
   Purchases of fixed assets                                         (890,639)     (385,963)
   Purchases of intangible assets                                    (719,912)   (1,614,197)
                                                                  -----------   -----------
      NET CASH USED IN INVESTING ACTIVITIES                        (5,641,011)   (2,000,160)
                                                                  -----------   -----------

FINANCING ACTIVITIES
   Proceeds from short term notes                                     398,300            --
   Repayment of short term notes                                     (734,502)   (2,496,481)
   Proceeds from capitalized lease obligations                      1,289,248     2,553,834
   Repayment of long term notes                                       (95,110)     (512,418)
   Restricted cash deposits as required by lease obligations       (1,281,000)           --
   Proceeds from sale of preferred stock                                          5,000,000
   Receipt of advances to officer                                                    40,000
   Proceeds from exercise of stock options                            565,601            --
   Payment on capitalized lease obligations                          (541,323)           --
                                                                  -----------   -----------
      NET CASH PROVIDED BY/(USED) IN FINANCING ACTIVITIES            (398,785)    4,584,935
                                                                  -----------   -----------

CHANGE IN CASH AND CASH EQUIVALENTS                                (2,597,402)    7,487,322
Cash and cash equivalents, beginning of period                      8,007,784       218,841
                                                                  -----------   -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                          5,410,382   $ 7,706,163
                                                                  ===========   ===========

CASH PAID DURING THE YEAR FOR:
   Interest Expense                                               $   187,380   $   123,849
                                                                  ===========   ===========
   Income taxes                                                   $        --   $        --
                                                                  ===========   ===========
</TABLE>

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


                                       5





<PAGE>

<TABLE>
<CAPTION>
                                                                                    Nine Months Ended December 31,
                                                                                    ------------------------------
                                                                                           2002        2001
                                                                                        ---------   ----------
<S>                                                                                     <C>         <C>
OTHER NON-CASH FINANCIAL ACTIVITIES

Stock issued in connection with acquisitions:
   Acquisition of Gamer's Alliance ..............................................              --      403,576
   Acquisition of eGames.com ....................................................              --      100,000
   Acquisition of ratedfun.com ..................................................              --       18,750
   Acquisition of Spreadingjoy.com ..............................................              --       75,000
Stock issued to employees, 7,992 and 16,653 shares respectively .................              --       25,000
Warrants issued in connection with services
   Performed and to be performed (1) ............................................              --      473,359
Warrants issued to preferred shareholders .......................................              --       69,464
Shares cancelled in payment of amounts due from employees .......................              --      (42,000)
Shares issued to Isosceles(2) ...................................................              --      212,500
Reduction of FunnyGreetings goodwill in connection with restructuring of
   obligation ...................................................................              --     (705,438)
Restructuring of obligation in connection with FunnyGreetings acquisition .......              --      705,438
Shares returned to treasury in payment of amounts due from
   employees ....................................................................              --      (36,000)
Stock options issued in connection with services performed and to be performed ..              --       72,640
Warrants issued to preferred shareholders .......................................              --      110,073
Stock issued in connection with purchase of Infobeat from 550 DMV(3) ............              --    9,940,000
Warrants cancelled that were issued to 550 DMV(3) ...............................              --    1,000,000
Stock issued in connection with 550 DMV warrant cancellation(3)..................              --   (1,000,000)
Issuance of below market preferred shares to 550 DMV in connection
   with Sony purchase agreement(3) ..............................................              --    1,923,076
Beneficial conversion of below market preferred shares to 550 DMV(3) ............              --   (1,923,076)
Non-cash retirement of debt to developers of JustSayWow and Send4Fun (4) ........       1,260,290           --
Shares issued to Saggi Capital in connection with payment of note (5) ...........         450,000           --
Capital lease obligations for software and hardware equipment ...................         676,401           --
</TABLE>

(1) The Company agreed to a two year investor relations services agreement that
commenced on April 4, 2001. As consideration for these services, the Company
issued warrants for 300,000 shares of the Company's common stock with an
exercise price of $1.25. The warrants have been valued at $473,359 in the
financial statements using the Black-Scholes model with a risk-free rate of
5.75%, a volatility of 128% with no expected dividend yield and a life of two
years. The warrants expire on 4/3/2003.

(2) Shares issued in satisfaction of settlement agreement February 2, 2001 with
the Isosceles Fun Limited.

(3) 550 Digital Media Ventures (Sony) share purchase agreement as previously
disclosed

(4) During the quarter ended June 30, 2002, the Company entered into a
settlement agreement to retire notes due of $1,663,319 for a cash payment of
$403,029 resulting in an extraordinary gain.

(5) On August 12, 2002, Saggi Capital exercised its right to convert its
$450,000 and accrued interest into 233,430 shares of Company common stock at
$2.08 per share.

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


                                       6





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 2002

NOTE 1: ORGANIZATION AND LINE OF BUSINESS

eUniverse, Inc. (the "Company") is a Delaware corporation engaged in developing
and operating a network of Web sites providing entertainment-oriented content
and certain proprietary products and services. Effective December 30, 2002, The
Company, previously a Nevada corporation, completed a statutory merger effected
for the purpose of changing its state of incorporation from Nevada to Delaware
by merging into a newly formed Delaware corporation, eUniverse, Inc. Further
information regarding the Delaware reincorporation is contained in the Company's
Form 8-K filed with the Securities and Exchange Commission on January 9, 2003.
During the reporting period, the Company had two primary reporting segments: (1)
Products and Services and (2) Media/Advertising. The Company conducts operations
from facilities located in Los Angeles, CA; Santa Monica, CA; Montclair, CA and
Mount Vernon, WA. The financial statements being presented include the accounts
of eUniverse, Inc. and its consolidated subsidiaries. Prior to fiscal year 2002,
the Company engaged in sales of audio CDs, videotapes (VHS), and digital video
disks ("DVDs") over the Internet. This business was discontinued in October
2000. All significant inter-company transactions and balances have been
eliminated in consolidation.

NOTE 2: ACCOUNTING POLICIES

INTERIM FINANCIAL INFORMATION

The accompanying unaudited interim financial statements have been prepared by
the Company, in accordance with United States generally accepted accounting
principles pursuant to Regulation S-K of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in audited
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. Accordingly, these interim financial
statements should be read in conjunction with the Company's financial statements
and related notes as contained in Form 10-K for the year ended March 31, 2002.
Certain reclassifications have been made to prior years' financial statements to
conform to the current year presentation. In the opinion of management, the
interim financial statements reflect all adjustments, including normal recurring
adjustments, necessary for fair presentation of the interim periods presented.
The results of operations for the three months and nine months ended December
31, 2002 are not necessarily indicative of results of operations to be expected
for the full year.

REVENUE RECOGNITION

The Company recognizes service revenue upon fulfillment and delivery of
customer's advertising. Additionally, the Company derives revenue from the sale
of non-refundable memberships and sponsorships that are recognized ratably as
earned.

The Company also earns revenue from services and electronic commerce
transactions, including sales of products and services. Service revenue includes
fees from the sale of non-refundable memberships and sponsorships that are
recognized ratably as earned. Service revenue also includes fees from the sale
of non-refundable dating credits, which are recognized as credits are used.
These credits are utilized in the Company's online dating service. Electronic
commerce transactions include, but are not limited to, sales of laser and inkjet
printer supplies, various consumer electronics, and other impulse merchandise.
For these transactions, the Company recognizes revenue upon shipment of its
products. Revenue includes shipping and handling charges. Fulfillment for the
majority of these products is provided by an independent third party.

Barter transactions are recorded at the lower of the estimated fair value of
advertisements received or the estimated fair value of the advertisements given
with the difference recorded as an advance or prepaid. During the nine months
ended December 31, 2002 and 2001, the Company recorded $588,000 and $325,000 as
bartered advertising revenue, respectively. The Company enters into barter
transactions to further future business relationships.

INVENTORY

Inventory is composed of inkjet and laser printer cartridges and various
consumer merchandise, primarily digital cameras and other electronic products.
The majority of Company inventories are held by unrelated third parties who
operate the Company's order fulfillment. Inkjet and laser printer cartridge
inventory is purchased and title is transferred to the Company automatically as
orders are accepted from customers. All other inventories are purchased from
suppliers and title transferred upon receipt of goods.

INTANGIBLE ASSETS

Intangible assets consist of goodwill, customer lists, trademarks, domain names
and other intellectual property. These assets are assessed for impairment
annually or upon an adverse change in operations and intangibles exclusive of
goodwill are being amortized on a straight-line basis over a period of 3 to 5
years. Should events or circumstances occur subsequent to the acquisition of a
business, which bring into question the realization or impairment of the related
goodwill, the Company will evaluate the remaining useful life and balance of
goodwill and make adjustments, if required. The Company's principal
consideration in determining an impairment includes the strategic benefit to the
Company of


                                       7





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 2002

the particular assets as measured by undiscounted current and future operating
income of that specified group of assets and expected undiscounted cash flows.
Should an impairment be identified, an expense would be reported to the extent
that the carrying value of the related goodwill exceeds the fair value of that
goodwill as determined by discounted future cash flows.

ADVERTISING COSTS

Advertising costs, except for costs associated with direct-response advertising,
are charged to operations when incurred. The costs of direct-response
advertising, if any, are capitalized and amortized over the period during which
future benefits are expected to be received. During the nine months ended
December 31, 2002 and 2001 advertising expense from continuing operations
amounted to $7,946,016 and $1,650,346, respectively. These totals include media
and affiliate expenses previously included in cost of goods sold for December
31, 2002 and 2001 of $6,980,134 and $434,329, respectively. The Company had no
direct-response advertising during the periods presented.

NOTE 3: MAJOR CUSTOMERS

During the nine months ended December 31, 2002, approximately 6% of the
Company's total revenues resulted from five customers ranging from 1% to 2% of
total revenues each. These five customers comprised 18% of advertising revenues
ranging 3% to 4% of advertising revenues each.

During the nine months ended December 31, 2001, approximately 44% of revenues
were generated from the top five customers ranging from 5% to 12% of revenues
each. These customers made up 62% of advertising revenue.

NOTE 4: AMORTIZATION AND IMPAIRMENT OF INTANGIBLE ASSETS

The net carrying value of goodwill and other intangibles recorded through
acquisitions is $20,440,704 and $16,874,490 as of December 31,2002 and March 31,
2002, respectively. These assets will be assessed for impairment at least
annually or upon an adverse change in operations. The Company evaluated the
reduction in goodwill amortization periods based on management's assessment of
future cash flows and the practice of other firms in the Internet industry.
Since March 31, 2002, the Company has not noted any material adverse events that
could cause an impairment of the net carrying value of goodwill or other
intangible assets as of December 31, 2002.

The following are the goodwill and other intangible assets that will no longer
be amortized:

                                                      December 31,    March 31,
                                                      ------------   -----------
                                                         2002           2002
                                                      ------------   -----------
Intangible Assets                                      $         0   $ 1,473,302
Goodwill                                                15,307,553    12,298,241
                                                       -----------   -----------
Total                                                  $15,307,553   $13,771,543

NOTE 5: FIXED ASSETS

Fixed assets, at cost, consist of the following:

                                                      December 31,    March 31,
                                                      -----------    ----------
                                                         2002           2002
                                                      -----------    ----------
Furniture and fixtures                                $    76,485    $   26,593
Computers and equipment                                 3,935,834     2,568,297
Purchased software                                        508,431       262,067
                                                      -----------    ----------
                                                        4,520,750     2,856,957
Less: accumulated depreciation                         (1,149,149)     (563,120)
                                                      -----------    ----------
Fixed assets, Net                                     $ 3,371,601    $2,293,836
                                                      ===========    ==========


                                       8





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 2002

Accumulated amortization of purchased software as of December 31, 2002 and March
31, 2002 is $145,654 and $109,658, respectively.

Depreciation expense for the reporting periods was as follows:

                                                              Nine Months Ended
                                                                 December 31,
                                                             -------------------
                                                               2002       2001
                                                             --------   --------
Depreciation expense......................................   $588,424   $224,257

NOTE 6: PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses consist of the short-term portion of the fair value of warrants
or options issued or cash payments made in advance for marketing or other
services to be rendered as follows:

                                                       December 31,    March 31,
                                                       ------------   ----------
                                                           2002          2002
                                                        ----------    ----------
Co-marketing agreement shares                           $   74,156    $  326,700
Prepaid eGames advance                                     285,000       300,000
Prepaid marketing expenses                                 730,808       107,142
Prepaid investment banking expenses                             --        23,333
Prepaid investor relations expenses                          3,900         9,677
Prepaid licensing agreements                               199,584       242,521
Prepaid insurance, advances & other                        576,217       141,604
Prepaid inventory                                          834,725       337,092
Credit Card Processor deposits                             342,701            --
                                                        ----------    ----------
                                                        $3,047,091    $1,488,069
                                                        ==========    ==========

NOTE 7: DEFERRED CHARGES

Deferred charges consist of the short-term portion of the unamortized fair value
of warrants or options issued principally in connection with the securing of
financing, investor relations services and web site development. Options issued
to advertising affiliates for continued online advertising services are also
included. All such options and warrants have been valued using the Black-Scholes
method option pricing model (see also Note 14 - Warrants).

                                                       December 31,   March 31,
                                                       ------------   ---------
                                                           2002         2002
                                                         --------     ---------

Warrants:

Granted for investor relations services                  $146,828     $ 492,718
Granted for Web site development services                 146,147       255,604
                                                         --------     ---------
                                                          292,975       748,322
Less: Non-current portion

Granted for investor relations services                   (29,930)     (133,321)
Granted for Web site development services                      (0)      (63,901)
                                                         --------     ---------
   Total                                                 $263,045     $ 551,100
                                                         ========     =========


                                       9





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 2002

NOTE 8: NOTES PAYABLE, SHORT-TERM NON-AFFILIATE

Notes payable, short-term non-affiliate consists of the following:

                                                        December 31,   March 31,
                                                        ------------   ---------
                                                            2002         2002
                                                          --------     ---------

Insurance Finance Contracts                               $184,204
Saggi Capital (1)                                                       $450,000

                                                          --------      --------
                                                          $184,204      $450,000
                                                          ========      ========

1. On August 13, 2001, Saggi Capital purchased the $450,000 note formerly held
by Videogame Partners. The note was payable in stock on June 12, 2002, and
accrued interest at 8%. Saggi Capital expressed its intention to exercise its
conversion rights pursuant to the agreement prior to June 30, 2002. During the
quarter ended September 30, 2002, the Company issued 216,522 shares of Company
common stock to Saggi Capital to redeem the note and pay applicable accrued
interest.

NOTE 9: NOTES PAYABLE, LONG-TERM NON-AFFILIATE

Notes payable, long-term non-affiliate consists of the following:

                                                     December 31,    March 31,
                                                     ------------   -----------
                                                         2002          2002
                                                      -----------   -----------

550 Digital Media Ventures (Sony) (1)                 $ 2,289,764   $ 2,289,764
FunBug                                                    200,000       200,000
FunPageLand (2)                                           112,863       112,863
JustSayWow (2) (4)                                              0       951,313
Send4Fun (2) (4)                                                0       712,006
SFX Entertainment, Inc. (3)                               654,009       804,800
Other                                                       9,401             0
                                                      -----------   -----------
Total notes payable, long-term non-affiliate            3,266,038     5,070,746
Less: current portion                                  (2,952,229)   (2,683,390)
                                                      -----------   -----------
Notes payable, long-term non-affiliate, less
   current portion                                    $   313,809   $ 2,387,356
                                                      ===========   ===========

1. Due to Sony subsidiary 550 Digital Media Ventures on March 31, 2003. The note
is convertible to common or preferred stock subject to certain conditions and is
collateralized by a blanket lien on the assets of the Company. The note accrues
interest at the prime rate plus 2%.

2. As of March 1, 2001, the Company entered into promissory notes in connection
with settlements of amounts due pursuant to agreements with certain then-current
employees that had developed Web sites, as listed above, and related content for
the Company. Obligations were settled by entering into promissory notes having a
term of 30 months and with the entire principal due on September 1, 2003.
Interest accrues at 8% with payments of interest only payable at different dates
for the various notes through September 2003. The note holders have the right at
anytime to convert the unpaid balance of the note into shares of unregistered,
restricted common stock of the Company at $6 per share.

3. In January 2002, the payment terms of this note were extended to January 1,
2004 from August 26, 2002. The note is collateralized by 2,600,000 shares of
common stock owned by Brad D. Greenspan. Principal and interest payments are
quarterly over the life of the note with an effective interest rate of 16.96%.

4. In June 2002, the Company recognized an extraordinary gain from the early
retirement of the principal and related accrued interest of these notes payable.
This retirement of debt resulted in the Company recognizing an extraordinary
gain of $1.269 million.


                                       10





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 2002

NOTE 10: NOTES PAYABLE, LONG-TERM AFFILIATE

Notes payable, long-term affiliate consists of the following:

                                                      December 31,    March 31,
                                                      ------------   ----------
                                                         2002           2002
                                                       ---------     ----------

Deb's FunPages (1)                                     $ 287,336     $  287,336
FunnyGreetings (2)                                       544,886        747,165
                                                       ---------     ----------
Total notes payable, long-term affiliate                 832,222      1,034,501
Less: discount on notes                                  (69,368)      (122,472)
Less: current portion                                   (762,854)      (393,672)
                                                       ---------     ----------
Notes payable, long-term affiliate, less
   current portion                                     $       0     $  518,357
                                                       =========     ==========

1. As of March 1, 2001, the Company entered into settlements of amounts due
pursuant to agreements and promissory notes with certain existing employees that
had developed Web sites as listed above and related content for the Company.
Obligations were settled by entering into promissory notes having a term of 30
months and with the entire principal due on September 1, 2003. Interest accrues
at 8% with payments of interest only payable at different dates for the various
notes through September 2003. The note holders have the right at any time to
convert the unpaid balance of the note into shares of unregistered, restricted
common stock of the Company at $6 per share.

2. In July 2001, the Company amended its agreement with an employee for the
purchase of Funnygreetings.com. Under the prior agreement, the Company was
obligated to pay $2,000,000. Under the new agreement, the Company reduced the
obligation to $1,200,000, less $86,000 already received by the seller, and
restructured the payment terms as described below. The Company made an
additional payment of $129,814 in connection with Company financing which closed
October 23, 2001 with 550 Digital Media Ventures as previously reported. The
remaining balance of $984,146 is payable in thirty monthly installments subject
to certain advertising revenues being achieved on the Funnygreetings.com Web
site. Whenever revenue performance is not achieved in a given month, the monthly
payment is reduced to a minimum of $20,000. The monthly installments and
remaining balance of the note are payable within the next twelve months and
represent a current liability.

In connection with this note, the seller filed suit against the Company during
the quarter regarding the July 2001 amended agreement. (See Note 13, Commitments
and Contingencies.)

NOTE 11: CAPITALIZED LEASE OBLIGATION

On May 3, 2002, the Company entered into a 24 month master lease and security
agreement to borrow $1.1 million from Transamerica Equipment Financial Services
Corporation for the sales lease back of certain equipment necessary to run the
eUniverse network of Web sites. The lease rate excluding applicable sales taxes
is $52,525 per month and is secured by an $825,000 letter of credit, or 75% of
the principal due at the origination of the lease.


                                       11





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 2002

NOTE 12: ACCRUED EXPENSES

                                                       December 31,    March 31,
                                                       ------------   ----------
                                                           2002          2002
                                                       ------------   ----------
Accrued professional services                           $  560,808    $  757,430
Accrued compensation                                     1,521,764       868,613
Accrued royalties                                          294,090       487,130
Accrued interest                                           553,130       486,312
Accrued acquisition payments                               226,642       397,558
Accrued affiliate payments                                 132,696       212,345
Accrued marketing                                          908,346        58,250
Accrued inventory payable                                  158,760            --
Other accrued expenses                                     546,231       885,484

                                                        ----------    ----------
                                                        $4,902,466    $4,153,122
                                                        ==========    ==========

NOTE 13: COMMITMENTS AND CONTINGENCIES

Litigation

As previously disclosed, on July 6, 2001, Adolph Komorsky Investments,
Inc. ("AKI"), an Illinois corporation with its principal place of business in
Tarrytown, New York, filed a complaint against the Company in the Supreme Court
of the State of New York, County of Westchester. AKI alleges that the Company
breached a consulting agreement with AKI by failing and refusing to pay cash and
warrants due under the agreement. The Company filed an answer to AKI's complaint
denying AKI's allegations and asserting defenses to the claims including the
failure of AKI to perform its obligations under the consulting agreement. On
February 11, 2003, the Company accepted an offer by AKI to settle this matter
for a one-time cash payment in an amount not exceeding the reserve established
by the Company to cover this contingent liability. The settlement is expected to
be documented and finalized in the near future and is not expected to have any
material adverse effect on the Company.

On October 17, 2002, the Company filed a complaint in the Superior
Court of Los Angeles, California, against Jody Henderson, the former owner and
proprietor of the Company's interactive entertainment website known as
FunnyGreetings. The Company is seeking an order from the California Court
declaring the validity and enforceability of, and the Company's compliance with,
an amendment to the acquisition agreement pursuant to which the Company
purchased FunnnyGreetings from Mr. Henderson in September of 2000. The terms of
the amendment, which was executed by the parties in July of 2001, resulted in,
among other things, an $800,000.00 reduction in the minimum purchase price to be
paid by the Company to Mr. Henderson for the FunnyGreetings business. The
Company filed the lawsuit due to Mr. Henderson's allegations that (1) the
Company breached the purchase agreement by not accounting for all, and/or by
undermining, sources of revenue from the Company's operation of the
FunnyGreetings website thereby adversely affecting amounts due to Mr. Henderson
under the purchase agreement, and (2) the amendment to the purchase agreement
was the result of economic duress and is unenforceable. In January of 2003, the
Company was served with a lawsuit filed by Mr. Henderson in the Circuit Court of
Fayette County, Kentucky, which includes claims based on the above allegations.
On January 9, 2003, the Company removed the lawsuit to the United States
District Court for the Eastern District of Kentucky. The Company believes that
Mr. Henderson's claims are without merit and intends to vigorously defend
itself.

NOTE 14: EQUITY COMPENSATION PLAN

STOCK OPTIONS:

Under the Company's 1999 Stock Award Plan, stock options may be granted to
officers, directors, employees and consultants. An aggregate of 9,000,000 shares
of common stock have been reserved for issuance under the Plan. Typically,
options granted under the plan will vest ratably over 3 years with 1/3 vesting
after 12 months and the remaining vesting in 1/12 increments each 3 months
thereafter. During the quarter ended December 31 , 2002, the Company issued
221,600 options with exercise prices ranging from $2.20 to $4.42. As of December
31, 2002, 7,221,712 options were outstanding at a weighted average price of
$4.04, of which 3,301,727 options were exercisable at a weighted average price
of $2.63.

                                                                        WEIGHTED
                                              NUMBER OF     EXERCISE    AVERAGE
                                                SHARES       PRICE       PRICE
                                             ----------   -----------   --------
Outstanding at 3-31-2002 .................    8,706,681   $1.75-7.00    $3.16

Granted ..................................      544,729    2.20-5.41     3.17
Cancelled ................................   -1,955,456   2.72-11.40     6.42
Exercised ................................      -74,242    1.75-3.44     2.64
Forfeited ................................           --

                                             ----------   -----------   ------
Outstanding at 12-31-2002 ................    7,221,712   $ 1.75-7.00    $4.04

Options exercisable at 12-31-2002 ........    3,301,727   $ 1.75-7.00    $2.63


                                       12





<PAGE>

                        eUNIVERSE, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 2002

The Company uses the intrinsic value method (APB Opinion 25) to account for its
stock options granted to officers, directors, and employees. Under this method,
compensation expense is recorded over the vesting period based on the difference
between the exercise price and quoted market price on the date the options are
granted. Since the company has granted all its stock options at an exercise
price equal to or above the quoted market value on the measurement date, no
compensation expense related to grants of stock options to employees has been
recorded.

Pursuant to FASB Interpretation No. 44, the Company accounts for its repriced
options as a variable plan. Compensation is measured as the difference between
the fair market value and the exercise price of the option at the reporting
period, recognized in the financial statements over the service period.

On July 12, 2002, the Company agreed to pay approximately $452,000 to various
stock option holders in exchange for the cancellation of approximately 700,000
options. This resulted in a non-recurring charge to income from continuing
operations.

WARRANTS:

The Company has granted warrants to purchase common stock in connection with
debt and services.

Warrants outstanding and exercisable as of December 31, 2002 were 1,675,286;
with exercise prices ranging from $1.00 to $5.03 per share. Warrants outstanding
as of March 31,2002 were 2,079,901; with exercise prices ranging from $1.00 to
$4.50 per share.

NOTE 15: SEGMENT INFORMATION

Based on the criteria established by SFAS No. 131, Disclosures about Segments of
an Enterprise and Related Information, the Company currently operates in two
principal business segments globally. The Company does not allocate any
operating expenses other than direct cost of sales to its Goods and Services
segment, as management does not use this information to measure the performance
of the operating segment. Management does not believe that allocating these
expenses is material in evaluating the segment's performance.

Summarized information by segment as excerpted from the internal management
reports is as follows for the nine months ended December 31,2002:

                                            Media/     Products &
                                         Advertising    Services        Total
                                         -----------   -----------   -----------

Net Sales                                $17,590,844   $32,162,425   $49,753,269

Gross Profits                            $16,901,246   $20,905,134   $37,806,380


NOTE 16: BUSINESS COMBINATIONS

In August 2002, the Company entered into a joint venture with VintaCOM Media
Group Inc., an Alberta, Canada company to form Relationship Exchange Company,
LLC (REC), a Nova Scotia, Canada company for the purpose of expanding the
Internet dating businesses of both parties. VintaCOM has agreed to license
certain intellectual property and provide hosting and technical services to REC
in exchange for a 51% share of REC. The Company received the remaining 49% of
REC. Unanimous approval of both parties is required over certain corporate
governance matters and the Company has significant influence over major
operating decisions affecting the joint venture. The Company will report its
share of REC profits and losses and its investment in REC using the equity
method of accounting. No significant profits or losses have been reported to
date.

In September 2002, the Company entered into two joint ventures with Michael
Casey Enterprises, LLC, a California company to form Abdominal King, LLC, a
Delaware company, and Yogabol, LLC, a Delaware company to distribute certain
fitness products. The Company has received a 51% interest and substantial
control over corporate governance and daily operations for a cash investment for
marketing support through December 31, 2002 of approximately $0.6 million. No
significant profits and losses have been reported by either joint venture to
date.

In September 2002, the Company purchased certain assets of Mainland
Communications Ltd of Ireland for $337,000 and has launched new products and
services featuring the Colorgenics Psychological Profiling System. As a result
of this agreement, the Company has the exclusive online and offline worldwide
rights for Colorgenics. The new products and services line includes a
subscription service where users can obtain a detailed psychological analysis
and e-mail newsletter providing Colorgenics assessments based on color affinity
testing.

In September 2002, the Company acquired certain assets of ResponseBase LLC, for
$3.3 million. ResponseBase is a Santa Monica, CA online marketing company that
manages approximately 30 million permission-bases e-mail records and is expected
to add proven talent to the existing eUniverse team and add incremental
distribution and product development opportunities. Additional payments will be
made on an earn-out basis subject to the achievement of certain performance
goals for the two year period October 2002-September 2004.


                                      13





<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

The following discussion should be read in conjunction with our financial
statements and the accompanying notes that appear elsewhere in this report. The
results for the current quarter reflect the consolidated operations of
eUniverse, Inc. and its subsidiaries. The following subsidiaries were acquired
or created during the periods being discussed below, and therefore their
financial results are not fully represented in all such periods: Infobeat L.L.C.
f/k/a Indimi, L.L.C. (acquired as of October 23, 2001); Performance Marketing
Group, LLC (created as of July 22, 2002); Relationship Marketing Services
(acquired as of July 10, 2002); and Ultra Conversions, LLC (acquired as of
May 15, 2002).

Effective October 10, 2000, the Company sold the assets of CD Universe to CLBL,
Inc. and the results of that segment are treated as a discontinued operation in
the financial statements.

The following discussion contains forward-looking statements that reflect our
plans, estimates and beliefs. Our actual results could differ materially from
those discussed in the forward-looking statements.

RESULTS OF OPERATIONS - QUARTER ENDED DECEMBER 31, 2002 ("CURRENT QUARTER") VS.
QUARTER ENDED DECEMBER 31, 2001

NET REVENUES

In the current quarter, approximately 76% of the Company's revenues were derived
from its Product and Services segment, which was launched June, 2001 with the
remaining 24% from paid third party advertising. During the quarter ended
December 31, 2001, 61% of the Company's revenues from continuing operations were
derived from paid thirdparty advertising and the remaining 39% of revenue came
from the Products and Services segment. The Company intends to continue its
strategy of growing and diversifying its revenues by introducing and enhancing
various proprietary products and services. Management of the Company believes
that the Product and Services segment will continue to be the primary revenue
driver for the Company. The Products and Services segment is anticipated to grow
both in total dollars and as a percentage of total revenue.

Products and Services segment revenues are derived primarily from subscriptions,
merchandise sales and fees charged for activity based games and other items. The
Company's third party advertising commitments range from one week to three
months with revenue derived from Cost Per Acquisition (CPA), Cost Per Click
(CPC), Cost Per Impression (CPM) agreements with its customers.

Services revenues include fees from the sale of non-refundable memberships and
sponsorships that are recognized ratably as earned. Service revenues also
include fees from the sale of non-refundable dating credits, which are
recognized as credits are used.

The Company launched a new online product and service featuring the Colorgenics
Psychological Profiling System in September 2002. Colorgenics sells
subscriptions where users can obtain a detailed psychological analysis and
e-mail newsletter.

In August 2002, the Company launched Performance Marketing Group, LLC (PMG),
an online direct marketing company specializing in designing, planning,
implementing and optimizing advertising campaigns for online publishers. PMG has
significantly increased overall revenues and profitability through the purchase
and optimization of media campaigns and is expected to expand its activities.

Electronic commerce transactions include product sales for items such as laser
and inkjet printer supplies, various consumer electronic products, consumer
health products and various impulse merchandise. For these transactions, the
Company recognizes revenue upon shipment of its products. Revenue includes
shipping and handling charges. Product fulfillment is outsourced to independent
third parties.

Revenues from barter transactions are recorded at the lower of the estimated
fair value of advertisements received or the estimated fair value of the
advertisements given with the difference recorded as an advance or prepaid. The
Company had no barter transactions during the current quarter.

The Company recognizes revenues as the amount paid upon the delivery and
fulfillment of advertising, provided that the collection of the resulting
receivable is probable.

($ in Thousands)

<TABLE>
<CAPTION>
                                                         Three Months Ended December 31,
                                   ----------------------------------------------------------------------
                                                   % of                    % of                       %
                                       2002      Revenues       2001      Revenues     Change      Change
                                   -----------   --------   -----------   --------   -----------   ------
<S>                                <C>            <C>       <C>            <C>       <C>           <C>
Revenues:
     Media/Advertising.........   $ 6,328,499      24.5%    $6,189,857      61.1%     $   138,642      2.2%
     Products and services.....    19,525,636      75.5%     3,938,697      38.9%      15,586,939    395.7%
                                  -----------     -----    -----------     -----      -----------    -----
Total Revenues.................   $25,854,135     100.0%   $10,128,554     100.0%     $15,725,581    155.3%
</TABLE>

<TABLE>
<CAPTION>
                                                          Nine Months Ended December 31,
                                   ----------------------------------------------------------------------
                                                   % of                    % of                       %
                                       2002      Revenues       2001      Revenues     Change      Change
                                   -----------   --------   -----------   --------   -----------   ------
<S>                                <C>            <C>       <C>            <C>       <C>           <C>
     Media/Advertising.........   $17,590,844      35.4%   $16,088,268        73.5%      $1,502,576    9.3%
     Products and services.....    32,162,425      64.6%     5,792,402        26.5%      26,370,023  455.3%
                                  -----------     -----    -----------       -----      -----------  -----
Total Revenues.................   $49,753,269     100.0%   $21,880,670       100.0%     $27,872,599  127.4%
</TABLE>

                                      14





<PAGE>

For the current quarter, total revenue increased 155% to $25.9 million, up from
$10.1 million reported the same quarter in 2001. For the nine months ended
December 31, 2002 total revenue increased 127% to $49.8 million, up from $21.9
million reported for the same period in 2001. The increase is due to the
introduction of the Products and Services segment, which contributed
substantially all of the overall increase in revenues of $15.6 million for the
current quarter. The revenues produced from this segment were primarily from
recurrent transaction products (e.g. ink jet cartridges), subscription-based
services (e.g. dating, fitness, premium memberships) and the sale of impulse
merchandise. The Company intends to continue to add to and upgrade its product
and service offerings during the remainder of fiscal year 2003 and for the fore
seeable future

Revenues from Media and Advertising increased approximately 2% to $6.3 million
up from $6.2 million, in the third quarter. For the nine months ended December
31, 2002, revenues from Media and Advertising were up 9% to $17.6 million, from
$16.1 million for the prior year, due primarily to an increase in available
advertising space from newly launched and acquired sites.

For the nine months ended December 31, 2002, the top five customers made up 18%
of media/advertising revenue, down from 62% in the prior year. The top five
customers comprised 7% of total revenues in the current period, a decline from
44% in the comparable nine month period in the prior year.

The Company expects that revenue from the Products and Services segment will
continue to increase as percentage of overall revenues during fiscal years 2003
and 2004. Management plans to continue to allocate a greater percentage of
available advertising inventory to promote proprietary Company products and
services. Consequently, revenue growth from Media/Advertising may slow during
the remainder of fiscal year 2003 and during fiscal year 2004.

Revenue also includes barter and non-cash advertising where the Company
exchanges advertising on our sites for similarly valued online advertising or
other services. The Company did not enter into any barter transactions in the
current quarter. The Company's barter value was $588,000, or 1% of total
revenue, for the nine months ended December 31, 2002. The Company's barter and
non-cash advertising constituted $325,000, or 1% of total revenue, in the nine
months ended December 31, 2001. The Company typically uses barter transactions
to test prospective media/advertising purchases or sales campaigns with the
anticipation of additional advertising business.

COST OF GOODS SOLD
($ in Thousands)

<TABLE>
<CAPTION>
                                                            Three Months Ended December 31,
                                         -------------------------------------------------------------------
                                                        % of                    % of                     %
                                            2002      Revenues      2001      Revenues     Change     Change
                                         ----------   --------   ----------   --------   ----------   ------
<S>                                      <C>            <C>      <C>            <C>      <C>          <C>
     Cost of Advertising.............    $  286,525     4.5%   $   41,298       0.7%     $  245,227    593.8%
     Cost of Products and services...     6,757,572    34.6%    2,427,616      61.6%      4,329,957    178.4%
                                         ----------    -----   ----------      -----     ----------    ------
Total Cost of Goods Sold.............    $7,044,097    27.2%   $2,468,914      24.4%     $4,575,184    185.3%
</TABLE>

<TABLE>
<CAPTION>
                                                            Nine Months Ended December 31,
                                         --------------------------------------------------------------------
                                                         % of                    % of                     %
                                             2002      Revenues      2001      Revenues     Change     Change
                                         -----------   --------   ----------   --------   ----------   ------
<S>                                      <C>             <C>      <C>            <C>      <C>          <C>
     Cost of Advertising.............   $   689,598      3.9%    $  603,182      3.7%    $   86,416     14.3%
     Cost of Products and services...    11,257,291     35.0%     2,563,917     44.3%     8,693,374    339.1%
                                         ----------    -----     ----------     -----     ----------   -----
Total Cost of Goods Sold.............   $11,946,888     24.0%    $3,167,099     14.5%    $8,779,789    277.2%
</TABLE>

% of revenues based on segment cost of goods sold divided by segment revenues

Cost of goods sold consists primarily of the cost of products for the commerce
offerings within the Products and Services segment. Fees paid to third parties
for media space, license agreements and ad sharing revenue arrangements for
content and other service providers are reflected in sales and marketing
expenses effective with the current quarter. Credit card fees, previously shown
in general and administrative expense have been reclassified into cost of goods
sold, a preferable method of disclosure. Prior year amounts have been revised
accordingly.

During the current quarter, cost of goods sold increased 185% to $7.1 million,
or 27% of total revenues, from $2.5 million or 24% of total revenues in 2001.
For the current quarter, costs of Products and Services were $6.8 million
compared to $2.4 million in the same period in 2001. Cost of revenues rose due
to increased Products and Service segment revenues partially off set by lower
product costs. For the nine months ended December 31, 2002, cost of goods sold
increased 277% to $11.9 million from $3.2 million. The increase was due to the
launch of the Products and Services segment in the prior year.

The Company expects total cost of revenues to increase proportionately or
slightly decline as a percentage of revenues as the Products and Services
segment continues its growth. The Company will continue to seek purchasing
economies of scale and additional operating efficiencies in its sourcing and
logistics processes.


                                      15





<PAGE>

OPERATING COSTS

Our operating costs were as follows for the years indicated (dollars in
thousands):

($ in Thousands)

<TABLE>
<CAPTION>
                                                             Three Months Ended December 31,
                                         --------------------------------------------------------------------
                                                         % of                    % of                     %
                                            2002       Revenues      2001      Revenues     Change     Change
                                         -----------   --------   ----------   --------   ----------   ------
<S>                                      <C>             <C>      <C>            <C>      <C>          <C>
Operating Costs:
   Sales and marketing ...............   $ 7,915,187     30.6%    $1,292,639     12.8%    $6,622,548   512.3%
   Product development ...............     3,671,425     14.2%     1,836,778     18.1%     1,834,647    99.9%
   General and administrative ........     3,528,559     13.6%     2,255,597     22.3%     1,272,962    56.4%
   Amortization of goodwill &
      other intangibles ..............       350,423      1.4%       177,815      1.8%       172,608    97.1%
                                         -----------     ----     ----------     ----     ----------   -----
Total Operating Costs ................   $15,465,594     59.8%    $5,562,829     54.9%    $9,902,765   178.0%
</TABLE>

<TABLE>
<CAPTION>
                                                               Nine Months Ended December 31,
                                         ----------------------------------------------------------------------
                                                         % of                     % of                      %
                                             2002      Revenues       2001      Revenues      Change     Change
                                         -----------   --------   -----------   --------   -----------   ------
<S>                                      <C>             <C>      <C>            <C>       <C>           <C>
Operating Costs:
   Sales and marketing ...............   $13,412,341     27.0%    $ 4,704,583     21.5%    $ 8,707,758   185.1%
   Product development ...............     7,924,314     15.9%      4,651,083     21.3%      3,273,231    70.4%
   General and administrative ........     8,163,710     16.4%      5,422,088     24.8%      2,741,622    50.6%
   Amortization of goodwill &
      other intangibles ..............       835,010      1.7%        226,304      1.0%        608,706   269.0%
                                         -----------     ----     -----------     ----     -----------   -----
Total Operating Costs ................   $30,335,375     61.0%    $15,004,057     68.6%    $15,331,318   102.2%
</TABLE>

% of revenues based on operating costs divided by total revenues

SALES AND MARKETING

Sales and marketing costs consist primarily of media purchases, promotional and
advertising costs, personnel costs, commissions, agency and consulting fees, and
allocated overhead for facilities and other costs. The Company has a direct
sales force that sells our inventory of advertisements to advertisers and
advertising agencies.

Media and affiliate costs have been reclassified from cost of sales in the
current quarter. The previous period has been adjusted accordingly.

Sales and marketing costs increased by 512% to $7.9 million, or 31% of total
revenues, for the current quarter, from $1.3 million, or 13% of total revenues,
for the comparable quarter last year. Sales and marketing costs for the nine
months ended December 2002 increased by 185% to $13.4 million, or 27% of total
revenues, compared to $4.7 million or 22% of total revenues for the comparable
period last year. The $6.6 million and $8.7 million increases for the current
quarter and nine month period, respectively, were due to increased media
purchases and marketing employees. The relatively large increase in media
expense was a means to more fully expand the marketing reach to new customers,
and increase revenues and profits outside of the eUniverse network of Web sites.
The increase in marketing staff was to support new product and service
categories and to identify and develop new or enhance existing products and
services. Media expense comprised $5.0 million and $7.9 million for the quarter
and nine months, respectively. Overall media increased to 16% as a percentage of
revenues in the nine month period from 8% for the same period last year.
Salaries increased $1.5 million in the nine month period due to increased hiring
while salaries declined slightly as a percentage of revenues. The remaining
increase was composed of additional consulting expense, facility costs, bad
debts expense and public relations.

During the remainder of fiscal year 2003 and in fiscal 2004, the Company plans
to continue to expand its direct sales, marketing and customer care teams to
identify new product and service offerings, increase customer loyalty and drive
new revenue growth. The Company intends to continue to increase the number of
paying consumers and enhance the lifetime value of each consumer and advertiser
relationship. Excluding media purchases, the Company expects that sales and
marketing costs will increase in absolute terms but will continue to decline as
a percentage of overall revenue. However, media purchases are not expected to be
significantly change as a percentage of sales during fiscal year 2004.Such
purchases will continue as a means for the Company to expand its advertising
reach, optimize revenues and profitability and further develop its core paying
customer base.


                                      16





<PAGE>

PRODUCT DEVELOPMENT

Product development expenses consist of payroll and related expenses, Web
hosting, consulting services and allocated overhead costs for the following: (1)
developing and maintaining the Company's Web sites, (2) developing and
maintaining key proprietary technology, and (3) developing proprietary products
and services.

Product and development costs increased by 100% to $3.7 million, or 14% of total
revenues, for the current quarter, from $1.8 million, or 18% of total revenues,
for the comparable quarter in the prior year. Product and development costs
increased by 70% to $7.9 million or 16% of total revenues for the nine months
ended December 31, 2002, from $4.7 million or 21% for the same period in 2001.
The increases of $1.8 million and $3.3 million for the quarter and the nine
month periods, respectively were primarily due to increased staff and related
salaries, benefits and consulting costs. The increase in staff and consulting
was to support increased technology, database and content development related
to an increase in new products and services. Internet hosting fees were slightly
lower in the nine month period leading to a decrease in product development
costs as a percentage of revenues. Salaries and related costs, which increased
$2.2 million in the nine month period, were slightly lower as a percentage of
revenues.

The remaining significant increases for the nine month period were due to
increased consulting of $0.8 million and facility costs of $0.2 million.
Facility costs rose consistent with the growth in the technology and consulting
staff.

Management anticipates that product development costs related to compensation
and consulting services will continue to increase in absolute terms with
development of new or expansion of existing product and service categories, but
decline slightly as a percentage of revenue as the Company leverages its
technology and content development processes. Internet costs are expected to
slightly decrease or remain unchanged as a percentage of revenues as overall
traffic and revenue grows. During the remainder of fiscal year 2003 and in
fiscal year 2004,the Company expects product development costs may increase
slightly as a percent of revenues as it continues to invest in new products and
services.

GENERAL AND ADMINISTRATIVE

General and administrative expenses consist of payroll and related expenses for
executive, finance, legal, human resources and administrative personnel;
recruiting; outside legal and other professional fees; and other general
corporate expenses.

General and administrative costs increased by 56% to $3.5 million, or 14% of
total revenues, for the current quarter, from $2.3 million, or 22% of total
revenues, for fiscal year 2001. For the nine months ended December 31, 2002,
these costs increased by 51% from $5.4 million to $8.2 million for the
comparable period last year. The $1.3 million and $2.8 million increases for
the quarter and nine month periods were due to growth in the number of
management, legal and finance personnel, expansion of facilities and computer
systems, and an increase in legal and accounting services to support the
growth of Company operations and infrastructure.

Credit card fees have been reclassified into cost of goods sold effective with
this quarter. The prior period has been adjusted accordingly.

Specific increases for the nine months ended December 31, 2002 compared to the
same period last year include payroll and related of $1.0 million; and
depreciation of $0.4 million The remainder was due to facility and lease
expenses and various royalty and license expenses. Overall, general and
administrative fees declined as a percentage of revenues with the largest
decreases in legal, salaries and related, and consulting services.

For the remainder of fiscal year 2003, the Company anticipates that general and
administrative costs will decline as a percentage of revenues as the business
obtains further economies of scale in this area.

AMORTIZATION OF GOODWILL AND OTHER INTANGIBLE ASSETS

The Company evaluates the purchased goodwill and other intangible amounts for
potential impairment on an at least an annual basis or upon the occurrence of a
material adverse event. Amortization of acquisition-related intangible assets
for the quarter ending December 31, 2002 reflects the stock acquisition of
Infobeat and the asset acquisitions of FunnyGreetings, SpreadingJoy, VIZX,
FunOne, Send4Fun, Colorgenics, ResponseBase and other Web sites and customer
name lists.


                                      17





<PAGE>

INTEREST AND OTHER INCOME, NET AND OTHER NON-OPERATING EXPENSE

($ in Thousands)

<TABLE>
<CAPTION>
                                                                   Three Months Ended December 31,
                                                  -----------------------------------------------------------------
                                                                 % of                    % of                   %
                                                     2002      Revenues      2001      Revenues    Change    Change
                                                  ----------   --------   ----------   --------   --------   ------
<S>                                               <C>            <C>      <C>            <C>      <C>        <C>
Interest Income ...............................   $   24,042      0.1%    $   13,644      0.1%    $ 10,398     76.2%
Interest and other financing expense ..........     (104,910)    -0.4%      (201,340)    -2.0%      96,430    -47.9%
Other gains and losses ........................            0                  (5,637)    -0.1%       5,637   -100.0%

                                                  ----------     ----     ----------     ----     --------   ------
Total Interest and Non-Operating Expense ......    ($ 80,868)    -0.3%     ($193,333)    -1.9%    $112,465    -58.2%
</TABLE>

<TABLE>
<CAPTION>
                                                                     Nine Months Ended December 31,
                                                  -------------------------------------------------------------------
                                                                 % of                    % of                     %
                                                     2002      Revenues      2001      Revenues     Change     Change
                                                  ----------   --------   ----------   --------   ----------   ------
<S>                                               <C>            <C>      <C>            <C>      <C>          <C>
Interest Income ...............................   $   62,955      0.1%    $   13,792      0.1%    $   49,164    356.5%
Interest and other financing expense ..........     (419,568)    -0.8%      (501,754)    -2.3%        82,186    -16.4%
Non-recurring cancellation of stock options ...     (452,000)    -0.9%                    0.0%      (452,000)      nm
Other gains and losses ........................      (24,000)                      0                 (24,000)      nm
Extraordinary gain from retirement of debt ....    1,269,000      2.5%                    0.0%     1,269,000       nm
Discontinued operations .......................     (148,818)    -0.3%        34,183      0.2%      (183,001)  -535.4%
                                                  ----------     ----     ----------     ----     ----------   ------
Total Interest and Non-Operating Expense ......   $  287,569      0.6%     ($453,779)    -2.1%    $  741,349   -163.4%
</TABLE>

% of revenues based on operating costs divided by total revenues

Interest and financing expense decreased by 48% to $105,000 in the current
quarter from $201,000 for the same period in 2001 primarily due to a replacement
of higher interest rate financing with 0% fair market value capitalized lease
obligations and a reduction in total financing; and decreased 16% to $419,000
in the nine months ended December 31, 2002, from $502,000 from the same period
in 2001. The expense includes interest on the 550 Digital Media Ventures (Sony),
capital lease obligations and notes to certain Web site developers.

The Company recognized a non-recurring expense for payments of approximately
$452,000 to various stock option holders subsequent to June 30, 2002 for the
cancellation of approximately 700,000 options.

During the quarter ended June 30, 2002, the Company entered an agreement for the
early retirement of approximately $1.7 million of long-term notes payable,
resulting in an extraordinary gain of $1,269,000.

The Company recognized a loss from discontinued operations $149,000 for the nine
months ended December 31, 2002. This loss represents the settlement of
outstanding balances related to CD and DVD e-commerce operations. The Company
decided to discontinue its CD and DVD e-commerce operations in September of
2000.

INCOME TAXES

Due to net operating loss carryforwards resulting from cumulative operating
losses, the Company had not recorded a provision for income taxes in the
quarters ended December 31, 2002 and 2001. As of March 31, 2002, the balance of
net deferred tax assets was $8,600,200. Utilization of the Company's net
operating loss carry forwards, which begins to expire in 2020, may be subject to
certain limitations under Section 382 of the Internal Revenue Code of 1986, as
amended. Due to uncertainties regarding realizability of the deferred tax
assets, the Company has provided a valuation allowance on the deferred tax asset
in an amount necessary to reduce the net deferred tax asset to zero.

NET INCOME
($ in Thousands)

<TABLE>
<CAPTION>
                                                     Three Months Ended December 31,
                                 ----------------------------------------------------------------------
                                                 % of                     % of                      %
                                     2002      Revenues       2001      Revenues     Change      Change
                                 -----------   --------   -----------   --------   -----------   ------
<S>                              <C>            <C>       <C>            <C>       <C>           <C>
Revenues                         $25,854,135    100.0%    $10,128,554    100.0%    $15,725,581    155.3%
Cost of Goods Sold                 7,044,097     27.2%      2,468,914     24.4%      4,575,184    185.3%
                                 -----------    -----     -----------    -----     -----------   ------
Gross Margin                      18,810,038     72.8%      7,659,640     75.6%     11,150,397    145.6%
                                 -----------    -----     -----------    -----     -----------   ------
Operating Expenses                15,465,594     59.8%      5,562,829     54.9%      9,902,765      178%
Nonoperating Income/(Expenses)       (80,868)    -0.3%       (193,333)    -1.9%        112,465    -58.2%
Discontinued Operations                    0        0         105,583      1.0%       (105,583)  -100.0%
                                 -----------    -----     -----------    -----     -----------   ------
Net Income                       $ 3,263,576     12.6%    $ 2,009,061     19.8%    $ 1,254,515     62.4%
                                 ===========    =====     ===========    =====     ===========   ======
</TABLE>

<TABLE>
<CAPTION>
                                                     Nine Months Ended December 31,
                                 ----------------------------------------------------------------------
                                                 % of                     % of                      %
                                     2002      Revenues       2001      Revenues     Change      Change
                                 -----------   --------   -----------   --------   -----------   ------
<S>                              <C>            <C>       <C>            <C>       <C>           <C>
Revenues                         $49,753,269    100.0%    $21,880,670    100.0%    $28,872,599    127.4%
Cost of Goods Sold                12,946,888     24.0%      3,167,099     14.5%      8,779,789    277.2%
                                 -----------    -----     -----------    -----     -----------   ------
Gross Margin                      37,806,380     76.0%     18,713,571     85.5%     19,092,809    102.0%
                                 -----------    -----     -----------    -----     -----------   ------
Operating Expenses                30,335,375     61.0%     15,004,057     68.6%     15,331,318    102.2%
Nonoperating Income/(Expenses)       287,569      0.6%       (453,779)    -2.1%        741,349   -163.4%
                                 -----------    -----     -----------    -----     -----------   ------
Net Income                       $ 7,758,575     15.6%    $ 3,255,734     14.9%    $ 4,502,840    138.3%
                                 ===========    =====     ===========    =====     ===========   ======
</TABLE>

% of revenues based on operating costs divided by total revenues

For the quarter ended December 31, 2002, the Company reported net income of $3.3
million compared to $2.0 million for the same period in 2001. For the nine
months ended December 31, 2002 the Company reported net income of $$7.8 million
compared to $3.3 million in the prior year. The increase in net income was due
primarily to the growth in the Company's overall revenues from the growth of our
Products and Services business segment and investments made during fiscal year
2002 to improve operating efficiencies.


                                       18





<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Capital Resources

Since its inception in April 14, 1999, the Company has satisfied its cash
requirements from a combination of private placements of equity securities,
short-term and long-term debt and cash from operations.

For the nine months ended December 31,2002, net cash generated from operating
activities was approximately $3.4 million compared to $4.9 million for the nine
months ended December 31, 2001 due to increased receivables, inventory and
prepaid marketing related to seasonal holiday sales and new business initiatives
partially offset by increased profitability.

Net operating cash flows for the nine months ended December 31, 2002 consist of
$7.8 million of net income; non-cash expenses, including depreciation and
amortization of $1.4 million; bad debts expense of $0.5 million; warrant
amortization of $0.4 million, which includes a non-recurring write-off of $0.2
million for consulting services completed prior to the initial contract term;
and discontinued operations expense of $0.1 million. These sources of operating
cash flow were partially offset by an increase in receivables and inventory
primarily due to holiday sales and prepaid marketing and inventory for
the AbKing and Yogabol joint ventures; and by the non-cash extraordinary gain
from the retirement of debt for $1.3 million as previously disclosed.

During the remainder of fiscal year 2003 and in fiscal year 2004, the Company
intends to continue to invest in working capital including inventory as well as
in increased staffing and technology that may cause net operating cash flows to
fluctuate. For the remainder of the fiscal year and into the next, the overall
positive cash flow trend is expected to continue.

The Company anticipates that cash from operations will grow commensurately with
profits and will continue to seek to optimize its working capital positions in
inventory, receivables and prepaid marketing.

Net operating cash flows for the nine months ended December 31, 2001 consist of
$3.3 million of net income, $3.3 million of non-cash expenses for depreciation,
amortization, warrant amortization and bad debts of $1.3 million; and an
increase in payables and other current liabilities and other items of $1.2
million. These items were partially offset by an increase in receivables and
other current assets of $0.8 million.

Net cash used by investing activities was $5.6 million and $2.0 million for the
nine months ended December 31, 2002 and 2001, respectively. The $5.6 million
resulted from a $3.3 million acquisition of the certain assets of Response Base,
LLC, an online marketing company; $0.9 million for computer hardware, software
and other fixed assets; $1.0 million for customer and email lists and other
intangible assets; $0.25 million for the purchase of investments. During the
nine months ended December 31, 2001, the $2.0 million used in investing
activities resulted from the purchase of subscriber databases for $0.9 million;
Websites and related assets of $0.7 million and computer hardware and software
of $0.4 million.

Net cash used by financing activities was $0.4 million and net cash provided for
financing activities was $4.6 million for the nine months ended December 31,
2002 and 2001, respectively. The $0.4 million in the current period resulted
from $1.3 million in deposits required for equipment and facilities leases;
repayment of long term and short term notes totaling $0.8 million; and
capitalized lease obligation payments of $0.5 million. These items were offset
by proceeds from capitalized lease obligations of $1.3 million; proceeds from
the exercise of stock options of $0.6 million and the financing of short term
insurance contracts of $0.4 million. Net cash provided by financing activities
of $4.6 million for the nine months ended December 31, 2001 resulted from
proceeds of the sale of $5 million of Preferred Series B stock to 550 Digital
Media Ventures, a subsidiary of Sony, as previously disclosed; partially offset
by net reduction in short-term and long-term obligations of $0.5 million.

As of December 31, 2002, the Company's principal commitments include obligations
for facility operating leases amounting to approximately $1.3 million annually.
These lease commitments expire at various dates through the fiscal year 2007.

On August 29, 2002, the Company entered into a joint venture with VintaCOM Media
Group Inc. to form Relationship Exchange Company, LLC, (REC) to further expand
the Internet dating Web site networks of each party. VintaCOM has received a 51%
interest in the LLC in exchange for providing REC with a license to the
intellectual property of VintaCOM and a service agreement at cost for hosting
and certain technical services. The Company has received the remaining 49%
interest in REC. As of December 31, 2002, REC had not reported material profits
or losses. The Company had no other off-balance sheet financing arrangements or
undisclosed liabilities related to special purpose, related party or
unconsolidated entities.

In June 2002, the Company entered into a settlement agreement with certain web
site developers to retire approximately $1.7 million of debt and related accrued
interest for $497,000 resulting in a non-cash extraordinary gain of $1,269,000.
Other non-cash activity included the conversion of $450,000 of debt and related
accrued interest into shares of Company common stock and equipment leases for
computer hardware and software of $0.7 million.

Management of the Company believes that current cash on hand, together with net
cash generated from operations, will provide sufficient working capital for the
next 12 months. However, the Company will continue to seek financing for certain
equipment purchases and other fixed asset acquisitions. Additionally, for
certain acquisitions and other investments the Company may seek additional
financing from private debt or equity placements.


                                       19





<PAGE>

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

     The Company places its cash and cash equivalents in banks with high quality
standards. Cash investments consist of high quality short term investments
generally with maturities of 30 days or less that bear immaterial exposure to
interest rate fluctuations.

ITEM 4. CONTROLS AND PROCEDURES

     Based upon an evaluation within the 90 days prior to the filing date of
this report, our Chief Executive Officer and Chief Financial Officer have each
concluded that our disclosure controls and procedures as defined in Rules 13a-14
and 15d-14 of the Securities Exchange Act of 1934, as amended, are effective in
timely alerting them to material information required to be included in our
periodic filings with the Securities and Exchange Commission. There have been no
significant changes in the Company's internal controls or in other factors that
could significantly affect the Company's internal controls subsequent to the
date of the evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.

                                     PART II

                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

As previously disclosed, on July 6, 2001, Adolph Komorsky Investments,
Inc. ("AKI"), an Illinois corporation with its principal place of business in
Tarrytown, New York, filed a complaint against the Company in the Supreme Court
of the State of New York, County of Westchester. AKI alleges that the Company
breached a consulting agreement with AKI by failing and refusing to pay cash and
warrants due under the agreement. The Company filed an answer to AKI's complaint
denying AKI's allegations and asserting defenses to the claims including the
failure of AKI to perform its obligations under the consulting agreement. On
February 11, 2003, the Company accepted an offer by AKI to settle this matter
for a one-time cash payment in an amount not exceeding the reserve established
by the Company to cover this contingent liability. The settlement is expected to
be documented and finalized in the near future and is not expected to have any
material adverse effect on the Company.

On October 17, 2002, the Company filed a complaint in the Superior
Court of Los Angeles, California, against Jody Henderson, the former owner and
proprietor of the Company's interactive entertainment website known as
FunnyGreetings. The Company is seeking an order from the California Court
declaring the validity and enforceability of, and the Company's compliance with,
an amendment to the acquisition agreement pursuant to which the Company
purchased FunnnyGreetings from Mr. Henderson in September of 2000. The terms of
the amendment, which was executed by the parties in July of 2001, resulted in,
among other things, an $800,000.00 reduction in the minimum purchase price to be
paid by the Company to Mr. Henderson for the FunnyGreetings business. The
Company filed the lawsuit due to Mr. Henderson's allegations that (1) the
Company breached the purchase agreement by not accounting for all, and/or by
undermining, sources of revenue from the Company's operation of the
FunnyGreetings website thereby adversely affecting amounts due to Mr. Henderson
under the purchase agreement, and (2) the amendment to the purchase agreement
was the result of economic duress and is unenforceable. In January of 2003, the
Company was served with a lawsuit filed by Mr. Henderson in the Circuit Court of
Fayette County, Kentucky, which includes claims based on the above allegations.
On January 9, 2003, the Company removed the lawsuit to the United States
District Court for the Eastern District of Kentucky. The Company believes that
Mr. Henderson's claims are without merit and intends to vigorously defend
itself.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     The Annual Meeting of Stockholders was held on Wednesday, October 23, 2002
in Los Angeles, California at which the following matters were submitted to a
vote of the stockholders of the Company:

     (a) Votes cast for or withheld regarding the election/re-election of
Directors for terms expiring in 2003:

                                                              FOR       WITHHELD
                                                           ----------   --------

Brad D. Greenspan                                          14,817,121     2,000

Brett C. Brewer                                            14,817,121     2,000

Daniel L. Mosher                                           14,817,121     2,000

Jeffrey C. Lapin                                           14,817,121     2,000


                                       20





<PAGE>

     (b) Votes cast for or against, and the number of abstentions for each other
proposal brought before the meeting are as follows:

Proposal                                    For          Against       Abstain
--------                                  -------        -------       -------

Approval of the eUniverse 2002
Employee Stock Purchase Plan:           14,815,751        3,270           100

Ratification of Appointment of
Independent Auditors:                   14,816,871            0         2,250

Stockholder's Approval of the
Agreement and Plan of Merger
and change of the Company's
state of incorporation from
Nevada to Delaware:                     14,816,921        2,000           200

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

The following exhibits are filed as part of this report:

Exhibit
Number           Exhibit Title/Description
-------          --------------------------

2.1  --    Agreement and Plan of Merger by and between eUniverse,Inc., a
           Nevada corporation, and eUniverse, Inc., a Delaware corporation,
           dated October 31, 2002.(19)

3.1  --    Certificate of Incorporation of eUniverse, Inc., dated October 31,
           2002.(19)

3.2  --    Certificate of Designation of Series A 6% Convertible Preferred
           Stock of eUniverse, Inc., dated October 31, 2002.(19)

3.3  --    Certificate of Designation of Series B Convertible Preferred Stock
           of eUniverse, Inc., dated October 31, 2002.(19)

3.4  --    Bylaws of eUniverse, Inc., dated October 31, 2002.(19)

10.01 --   Stock Purchase Agreement by and between Palisades Capital, Inc. and
           Charles Beilman, dated as of October 1, 1998 (the "Stock
           Purchase Agreement").(1)

10.02 --   Amendment to Stock Purchase Agreement, dated December 29, 1998.(1)

10.03 --   Amendment No. 2 to Stock Purchase Agreement, dated February 11,
           1999.(1)

10.04 --   Amendment No. 3 to Stock Purchase Agreement, dated as of March ,
           1999.(1)

10.05 --   Amendment Number 4 to Stock Purchase Agreement, dated as of June 9,
           1999.(1)

10.06 --   Agreement and Plan of Reorganization by and among Motorcycle
           Centers of America, Inc., Entertainment Universe, Inc. and
           the principal officers of Entertainment Universe, Inc., dated
           April 9, 1999.(1)

10.07 --   Entertainment Universe, Inc. Regulation D Subscription Agreement,
           dated as of April, 1999.(1)

10.08 --   Entertainment Universe, Inc. Registration Rights Agreement, dated
           as of April 1999.(1)

10.09 --   Assignment and Assumption Agreement by and between Entertainment
           Universe, Inc. and Motorcycle Centers of America, Inc., dated as
           of April 14, 1999.(1)

10.10 --   Stock Purchase Agreement by and among Motorcycle Centers
           of America, Inc. and the shareholders of Case's Ladder, Inc., dated
           as of April 21, 1999.(1)

10.13 --   Letter agreement between Entertainment Universe, Inc. and E.P.
           Opportunity Fund, L.L.C. regarding appointment of a director of
           Entertainment Universe, Inc., dated April 6, 1999.(1)

10.15 --   Agreement and Plan of Reorganization by and among Universe, Inc.,
           Gamer's Alliance, Inc., and Larry N. Pevnick and Robin T. Pevnick,
           Ten Ent., and Stan Goldenberg and Andrea R. Goldenberg, Ten Ent.,
           dated as of the 1st day of July, 1999.(6)

10.15.1 -  Second Amendment to Agreement and Plan of Reorganization by and
           among eUniverse, Inc., Gamer's Alliance, Inc., and Larry N. Pevnick
           and Robin T. Pevnick, Ten Ent., and Stan Goldenberg and Andrea
           R. Goldenberg, Ten Ent., dated as of the 12th day of
           November, 1999.(1)


                                    21





<PAGE>

10.23 --   Engagement Letter by and among Gerard Klauer Mattison & Co.,Inc. by
           Entertainment Universe, Inc. and Brad Greenspan, dated February 24,
           1999.(6)

10.24 --   Indemnification Agreement by Entertainment Universe, Inc. and Brad
           Greenspan in favor of Gerard Klauer Mattison & Co., Inc.,
           dated February 24, 1999.(6)

10.25 --   eUniverse, Inc. 1999 Stock Awards Plan.(6)

10.29 --   eUniverse, Inc. Common Stock Purchase Warrant to Gerard Klauer
           Mattison & Co., Inc., dated April 14, 1999.(1)

10.30 --   Asset Purchase Agreement by and between eUniverse, Inc. and Scott
           Smith d/b/a Pokemonvillage.com and Quake City Gaming Network, dated
           as of February 1, 2000.(3)

10.31 --   Letter agreement by and among eUniverse, Inc. Take-Two Interactive
           Software, Inc. and Falcon Ventures Corporation, dated as of
           February 2, 2000.(3)

10.33 --   Letter Agreement by and between eUniverse, Inc. and Christian
           Walter d/b/a Justsaywow.com dated February 20, 2000.(4)

10.43 --   Agreement by and between eUniverse, Inc. and Take-Two Interactive
           Software, Inc., dated as of March 16, 2000, providing for
           account marketing services.(5)

10.44 --   Agreement by and between eUniverse, Inc. and Take-Two Interactive
           Software, Inc., dated as of March 16, 2000, providing for
           programming services.(5)

10.45 --   Letter agreement by and among eUniverse, Inc. and Erik MacKinnon
           and Dan Barnes d/b/a Dustcloud Media, dated March 29, 2000.(6)

10.47 --   Asset Purchase Agreement by and between CD Universe, Inc. and CLBL,
           Inc., dated as of October 3, 2000.(9)

10.48 --   Letter agreement by and among eUniverse, Inc., Take-Two Interactive
           Software, Inc. and Charles Beilman, dated October 30, 2000.(10)

10.48.01   First Amendment to letter agreement by and among eUniverse, Inc.,
           Take-Two Interactive Software, Inc. and Charles Beilman, dated
           November 6, 2000.(10)

10.49 --   Side letter agreement by and among eUniverse, Inc., Take-Two
           Interactive Software, Inc. and Brad D. Greenspan (with respect
           to Sections 2 and 4 only), dated October 30, 2000.(10)

10.49.01   First Amendment to Side Letter Agreement by and among eUniverse,
           Inc., Take-Two Interactive Software, Inc. and Brad D. Greenspan,
           dated November 6, 2000.(10)

10.50 --   Employment Agreement by and between eUniverse, Inc. and Will
           Griffin, dated as of September 1, 2000.(11)

10.52 --   Stock Purchase Agreement by and between eUniverse, Inc. and 550
           Digital Media Ventures, Inc., dated as of July 13, 2001.(13)

10.53 --   Share Purchase Agreement by and among eUniverse, Inc., Indimi,
           L.L.C., Indimi, Inc., 550 Digital Media Ventures, Inc. and Sony
           Music Entertainment, Inc., dated as of July 13, 2000.(13)

10.55 --   Registration Rights Agreement by and between eUniverse, Inc. and
           550 Digital Media Ventures Inc., dated as of October 23, 2001.(14)

10.56 --   Letter agreement by and between eUniverse, Inc. and 550 Digital
           Media Ventures Inc., dated as of October 23, 2001, regarding
           amendment of that certain Secured Note and Warrant Purchase
           Agreement dated September 6, 2000.(14)

10.57 --   eUniverse, Inc. Common Stock Purchase Warrant issued to Nicholas
           Agriogianis, dated April 4, 2001.(15)

10.58 --   eUniverse, Inc. Common Stock Purchase Warrant issued to Marci
           Zaroff, dated April 4, 2001.(15)

10.59 --   eUniverse, Inc. Common Stock Purchase Warrant issued to Saggi
           Capital Corp., dated September 25, 2001.(15)

10.60 --   eUniverse, Inc. Common Stock Purchase Warrant issued to Bridge
           Ventures, Inc., dated September 25, 2001.(15)

10.61 --   eUniverse, Inc. Common Stock Purchase Warrant issued to Nicholas
           Agriogianis, dated September 25, 2001.(15)

10.62 --   eUniverse, Inc. Common Stock Purchase Warrant issued to Marci
           Zaroff, dated September 25, 2001.(15)

10.65 --   Form of Warrant issued to certain eUniverse, Inc. Series A Preferred
           Stockholders as of October 22, 2001.(16)

10.66 --   eUniverse, Inc. Common Stock Purchase Warrant issued to Eisenberg
           Partners LLC, dated April 30, 2002.(18)

99.01 --   Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of
           2002.*

* Filed herewith


                                    22





<PAGE>

(1) Incorporated by reference to eUniverse's Form 10 filed on June 14, 1999
(Registration File No. 0-26355).

(3) Incorporated by reference to eUniverse's Form 10-Q filed on February 14,
2000.

(4) Incorporated by reference to eUniverse's Form 8-K filed on March 13, 2000.

(5) Incorporated by reference to eUniverse's Form S-1 filed on March 23, 2000
(Registration File No. 333-33084).

(6) Incorporated by reference to eUniverse's Form 8-K filed on June 28, 2000.

(9) Incorporated by reference to eUniverse's Form 8-K filed on October 24, 2000.

(10) Incorporated by reference to eUniverse's Form 10-Q filed on November 14,
2000.

(11) Incorporated by reference to eUniverse's Form S-3 filed on December 8,
2000.

(13) Incorporated by reference to eUniverse's Form 10-K filed on July 16, 2001.

(14) Incorporated by reference to eUniverse's Form 8-K filed on November 7,
2001.

(15) Incorporated by reference to eUniverse's Form 10-Q filed on November 14,
2001.

(16) Incorporated by reference to eUniverse's Form 10-Q filed on February 14,
2002.

(18) Incorporated by reference to eUniverse's Form 10-Q filed on August 14,
2002.

(19) Incorporated by reference to eUniverse's Form 8-K filed on January 9, 2003.

(b) Reports on Form 8-K.

     A Current Report on Form 8-K was filed by the Company with the Securities
and Exchange Commission on January 9, 2003 to report the completion of the
Company's statutory merger effected for the purpose of changing its state of
incorporation from Nevada to Delaware by merging into a newly formed Delaware
corporation, eUniverse, Inc., effective as of December 30, 2002.

                                   SIGNATURES

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

                                          eUNIVERSE, INC.
                                          Registrant


Dated: February 14, 2003                  By /s/ JOSEPH L. VARRAVETO
                                             -----------------------------------
                                             Joseph L. Varraveto
                                             Chief Financial Officer
                                             (Principal Financial Officer)
                                             and Registrant's Authorized Officer


                                    23





<PAGE>

                                  CERTIFICATION

     I, Brad D. Greenspan, certify that:

     1. I have reviewed this quarterly report on Form 10-Q of eUniverse, Inc.;

     2. Based on my knowledge, this quarterly report does not containany untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

     3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

     4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a) Designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during
the period in which this quarterly report is being prepared;

     b) Evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

     c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

     5. The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
function);

     a) All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

     b) Any fraud, whether or not material, that involves managementor other
employees who have a significant role in the registrant's internal controls; and

     6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: February 14 , 2003


/s/ Brad D. Greenspan
--------------------------------------
Chairman of the Board of Directors and
Chief Executive Officer
(Principal Executive Officer)

                                  CERTIFICATION

     I, Joseph L. Varrave to, certify that:

     1. I have reviewed this quarterly report on Form 10-Q of eUniverse, Inc.;

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made,in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;


                                    24





<PAGE>

     3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

     4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a) Designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

     b) Evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

     c) Presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;

     5. The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
function);

     a) All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

     b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

     6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: February 14, 2003


/s/ Joseph L. Varraveto
--------------------------------------------
Chief Financial Officer
(Principal Financial and Accounting Officer)


                                    25