----

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**UNITED          STATES**

**SECURITIES          AND EXCHANGE COMMISSION**

**Washington,          DC 20549**

**FORM          10-QSB**

**QUARTERLY            REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE **

**SECURITIES            EXCHANGE ACT OF 1934**

**For              the period ended July 31, 2007**

**: 333-83231**

**GLOBAL          DIVERSIFIED INDUSTRIES, INC.**

**(Exact          Name of Registrant as specified in its charter)**

| **NEVADA**                                                     | **95-4741485**                                                          |
|----------------------------------------------------------------|-------------------------------------------------------------------------|
| (State                    of                    incorporation) | (IRS                    Employer Identification                    No.) |

|  **1200 Airport                    Drive, Chowchilla, CA** | **93610**                           |
|---------------------------------------------------------------------------|-------------------------------------|
|  (Address                    of principal executive offices)         |  (Zip                    Code) |

**(559)            665-5800**

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Table            of Contents

| **TABLE                    OF CONTENTS**                          |
|-------------------------------------------------------------------|
|                                                              |   |
| PART                    I   Financial Information  |   |
|                                                              |   |   |
| Item                    1                                         | Financial                    Statements (Unaudited) | 3 |
|                                                              | Condensed                      Consolidated Balance Sheets: July 31, 2007 and April                      30, 2007 | 3 |
|                                                              | Condensed                      Consolidated Statements Of Operations: For The Three                      Months  Ended July 31, 2007 And 2006 | 4 |
|                                                              | Condensed                      Consolidated Statements Of Cash Flows: For The Three                      Months Ended July 31, 2007 And 2006 | 5 |
|                                                              | Notes                      To Unaudited Condensed Consolidated Financial                      Information: July 31, 2007 | 6 |
|                                                              |   |   |
| Item                    2                                         | Management's                    Discussion and Analysis of Financial Condition                    and Results of Operations | 16 |
| Item                    3                                         | Controls                    And Procedures | 21 |
|                                                              |   |   |
| PART                  II  Other Information             |   |
|                                                              |   |   |
| Item                    1                                         | Legal                    Proceedings | 21 |
| Item                    2                                         | Unregistered                    Sale Of Equity Securities And Use Of                    Proceeds | 21 |
| Item                    3                                         | Defaults                    Upon Senior Securities | 21 |
| Item                    4                                         | Submission                    Of Matters To Vote Of Security                    Holders | 21 |
| Item                    5                                         | Other                    Information | 21 |
| Item                    6                                         | Exhibits | 21 |

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Table            of Contents

**ITEM        I.  FINANCIAL STATEMENTS        (UNAUDITED)**

**GLOBAL        DIVERSIFIED INDUSTRIES, INC.**

**CONDENSED        CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                            |   | **(Unaudited)**                    |       |   |                                |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|--------|-------------------------------------|--------|
|                                                                                                                                                                                                                            |   | **July                  31, 2007** |       |   | **April                  30, 2007** |   |
| ASSETS:                                                                                                                                                                                                                         |   |                               |       |   |                                |   |
| Current                  assets:                                                                                                                                                                                                |   |                               |       |   |                                |   |
| Cash                  and cash equivalents                                                                                                                                                                                      |   | $                                  | 14,903     |   |                                | $      | 356,569 |   |
| Accounts                  receivable, net of allowance for doubtful accounts of $0                  at    July 31, 2007 and April 30, 2007,                  respectively                                   |   |                               | 2,174,260  |   |                                |   | 682,363 |   |
| Inventories                                                                                                                                                                                                                     |   |                               | 3,488,548  |   |                                |   | 2,973,540 |   |
| Advance                  to employees                                                                                                                                                                                           |   |                               | 18,063     |   |                                |   | 1,745 |   |
| Prepaid                  expenses                                                                                                                                                                                               |   |                               | 57,867     |   |                                |   | 87,057 |   |
| Total                  current assets                                                                                                                                                                                           |   |                               | 5,753,641  |   |                                | $      | 4,101,274 |   |
|                                                                                                                                                                                                                            |   |                               |       |   |                                |   |   |   |
| Property,                  plant and equipment:                                                                                                                                                                                 |   |                               |       |   |                                |   |   |   |
| Property,                  plant and equipment, at cost                                                                                                                                                                         |   |                               | 3,081,437  |   |                                |   | 3,081,437 |   |
| Less:                  Accumulated depreciation                                                                                                                                                                                 |   |                               | (1,092,215 | )      |                                |   | (1,033,801 | ) |
| Total                  property, plant and equipment, net                                                                                                                                                                       |   |                               | 1,989,222  |   |                                |   | 2,047,636 |   |
|                                                                                                                                                                                                                            |   |                               |       |   |                                |   |   |   |
| Other                  assets:                                                                                                                                                                                                  |   |                               |       |   |                                |   |   |   |
| Deposit                  and others                                                                                                                                                                                             |   |                               | 189,903    |   |                                |   | 190,443 |   |
| Non                  Current deferred tax asset (Note H)                                                                                                                                                                        |   |                               | 96,000     |   |                                |   | 96,000 |   |
| Intangible                  assets  net of accumulated amortization                  of   $218,266  and $196,299 at July 31, 2007 and                  April 30, 2007, respectively (Note F) |   |                               | 1,010,473  |   |                                |   | 1,005,590 |   |
| Total                  other assets                                                                                                                                                                                             |   |                               | 1,296,376  |   |                                |   | 1,292,033 |   |
|                                                                                                                                                                                                                            |   |                               |       |   |                                |   |   |   |
| Total                  Assets                                                                                                                                                                                                   |   | $                                  | 9,039,239  |   |                                | $      | 7,440,943 |   |
|                                                                                                                                                                                                                            |   |                               |       |   |                                |   |   |   |

|                                                                                                                                                                                                                                                                         |   |   |       |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                        |   |   |       |   |   |   |
| Current                  liabilities:                                                                                                                                                                                                                                        |   |   |       |   |   |   |
| Accounts                  payable and accrued liabilities                                                                                                                                                                                                                    |   | $      | 1,388,995  |   |   | $      | 1,183,865 |   |
| Notes                  payable to related parties, current portion (Note B)                                                                                                                                                                                                  |   |   | 251,500    |   |   |   | 251,500 |   |
| Notes                  payable, current portion (Note B)                                                                                                                                                                                                                     |   |   | 1,428,183  |   |   |   | 846,527 |   |
| Total                  current liabilities                                                                                                                                                                                                                                   |   |   | 3,068,678  |   |   |   | 2,281,892 |   |
|                                                                                                                                                                                                                                                                         |   |   |       |   |   |   |   |   |
| Long-term                  liabilities:                                                                                                                                                                                                                                      |   |   |       |   |   |   |   |   |
| Notes                  payable, long term portion, net of debt discount (Note B)                                                                                                                                                                                             |   |   | 232,175    |   |   |   | 227,330 |   |
| Notes                  payable to related parties, long-term portion (Note B)                                                                                                                                                                                                |   |   | 588,815    |   |   |   | 588,815 |   |
| Total                  long-term liabilities                                                                                                                                                                                                                                 |   |   | 820,990    |   |   |   | 816,145 |   |
|                                                                                                                                                                                                                                                                         |   |   |       |   |   |   |   |   |
| Commitment                  and contingencies                                                                                                                                                                                                                                |   |   | -          |   |   |   | - |   |
|                                                                                                                                                                                                                                                                         |   |   |       |   |   |   |   |   |
| Stockholders'                  equity:                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Series                  A Preferred stock, par value $.001 per share; 10,000,000 shares                  authorized; 413,092 shares issued and outstanding at July 31, 2007                  and                  April 30, 2007 (Note C)                                    |   |   | 413        |   |   |   | 413 |   |
| Common                  stock, par value $ .001 per share; 400,000,000 shares authorized;                  169,209,211 and 167,209,211 shares issued and outstanding at                  July  31, 2007 and April 30, 2007, respectively (Note                  C) |   |   | 169,209    |   |   |   | 167,208 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                  |   |   | 6,429,438  |   |   |   | 6,413,438 |   |
| Preferred                  stock subscription                                                                                                                                                                                                                                |   |   | 733,374    |   |   |   | 733,374 |   |
| Common                  stock subscription                                                                                                                                                                                                                                   |   |   | 1,653,881  |   |   |   | 916,600 |   |
| Treasury                  stock (Note C)                                                                                                                                                                                                                                     |   |   | (50        | )      |   |   | (50 | ) |
| Accumulated                  deficit                                                                                                                                                                                                                                         |   |   | (3,836,694 | )      |   |   | (3,888,077 | ) |
| Total                  stockholders' equity                                                                                                                                                                                                                                  |   |   | 5,149,571  |   |   |   | 4,342,906 |   |
|                                                                                                                                                                                                                                                                         |   |   |       |   |   |   |   |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                                  |   | $      | 9,039,239  |   |   | $      | 7,440,943 |   |

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Table            of Contents

**GLOBAL        DIVERSIFIED INDUSTRIES, INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF        OPERATIONS**

**(UNAUDITED)**

|                                                                                                                              |   | **For                  The Three Months Ended July 31,** |        |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-------------|
|                                                                                                                              |   | **2007**                                                 |        |   | **2006** |   |
|                                                                                                                              |   |                                                     |        |   |   |   |
| Revenues                                                                                                                          |   | $                                                        | 2,589,400   |   |   | $ | 2,822,718 |   |
| Cost                  of goods sold                                                                                               |   |                                                     | 1,958,537   |   |   |   | 1,876,265 |   |
| Gross                  profit                                                                                                     |   |                                                     | 630,863     |   |   |   | 946,453 |   |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Operating                  expenses:                                                                                              |   |                                                     |        |   |   |   |   |   |
| Selling,                  general and administrative expenses                                                                     |   |                                                     | 406,559     |   |   |   | 646,975 |   |
| Depreciation                  and amortization                                                                                    |   |                                                     | 80,382      |   |   |   | 76,729 |   |
| Total                  operating expense                                                                                          |   |                                                     | 486,941     |   |   |   | 723,704 |   |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Income                  from operations                                                                                           |   |                                                     | 143,922     |   |   |   | 222,749 |   |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Interest                  expense, net                                                                                            |   |                                                     | (92,539     | ) |   |   | (107,926 | ) |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Income                  from continuing operations before provision for income taxes and                  discontinued operations |   |                                                     | 51,383      |   |   |   | 114,823 |   |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Income                  taxes benefit (Note H)                                                                                    |   |                                                     | -           |   |   |   | 147,200 |   |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Net                  income from continuing operations, before discontinued                  operations                           |   |                                                     | 51,383      |   |   |   | 262,023 |   |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Loss                  from discontinued operations (Note G)                                                                       |   |                                                     | -           |   |   |   | (17,894 | ) |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Net                  income                                                                                                       |   | $                                                        | 51,383      |   |   | $ | 244,129 |   |
|                                                                                                                              |   |                                                     |        |   |   |   |   |   |
| Earnings                  (loss) per common share:                                                                                |   |                                                     |        |   |   |   |   |   |
| Basic                                                                                                                             |   | $                                                        | 0.00        |   |   | $ | 0.00 |   |
| Continuing                  operations                                                                                            |   | $                                                        | 0.00        |   |   | $ | 0.00 |   |
| Discontinued                  operations                                                                                          |   | $                                                        | -           |   |   | $ | (0.00 | ) |
| Diluted                                                                                                                           |   | $                                                        | 0.00        |   |   | $ | 0.00 |   |
| Continuing                  operations                                                                                            |   | $                                                        | 0.00        |   |   | $ | 0.00 |   |
| Discontinued                  operations                                                                                          |   | $                                                        | -           |   |   | $ | (0.00 | ) |
| Weighted                  average shares outstanding:                                                                             |   |                                                     |        |   |   |   |   |   |
| Basic                                                                                                                             |   |                                                     | 167,230,950 |   |   |   | 150,619,634 |   |
| Diluted                                                                                                                           |   |                                                     | 204,094,340 |   |   |   | 158,857,732 |   |

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Table            of Contents

**GLOBAL        DIVERSIFIED INDUSTRIES, INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF CASH        FLOWS**

**(UNAUDITED)**

|                                                                                |   | **For                  the Three Months ended July 31,** |       |
|-------------------------------------------------------------------------------------|--------|----------------------------------------------------------|------------|
|                                                                                |   | **2007**                                                 |       |   | **2006** |   |
| Cash                  flows from operating activities:                              |   |                                                     |       |   |   |   |
| Net                  income                                                         |   | $                                                        | 51,383     |   |   | $ | 244,129 |   |
| Loss                  from discontinued operations                                  |   |                                                     | -          |   |   |   | 17,894 |   |
| Income                  from continuing operations                                  |   |                                                     | 51,383     |   |   |   | 262,023 |   |
|                                                                                |   |                                                     |       |   |   |   |   |   |
| Adjustment                  to reconcile net income to net cash from operations:    |   |                                                     |       |   |   |   |   |   |
| Depreciation                  and amortization                                      |   |                                                     | 80,382     |   |   |   | 76,729 |   |
| Common                  stock issued in exchange for services rendered              |   |                                                     | 18,000     |   |   |   | 3,889 |   |
| Amortization                  of debt discount                                      |   |                                                     | 4,845      |   |   |   | 8,128 |   |
| Deferred                  taxes                                                     |   |                                                     | -          |   |   |   | (148,000 | ) |
| Common                  stock subscribed in exchange for rent expenses              |   |                                                     | 87,282     |   |   |   | - |   |
| Change                  in assets and liabilities:                                  |   |                                                     |       |   |   |   |   |   |
| (Increase)/decrease                  in accounts receivable                         |   |                                                     | (1,491,897 | ) |   |   | 985,488 |   |
| Increase                  in inventory                                              |   |                                                     | (515,008   | ) |   |   | (992,629 | ) |
| Decrease                  in prepaid expense and others                             |   |                                                     | 29,730     |   |   |   | 57,053 |   |
| Increase                  in employee advances                                      |   |                                                     | (16,318    | ) |   |   | (23,125 | ) |
| Increase                  in accounts payable and accrued liabilities               |   |                                                     | 225,129    |   |   |   | 447,964 |   |
| Net                  cash provided by (used in) operating activities:               |   |                                                     | (1,526,472 | ) |   |   | 677,520 |   |
| Net                  cash provided by discontinued operations                       |   |                                                     | -          |   |   |   | 4,927 |   |
| Net                  cash provided by (used in) operating activities                |   |                                                     | (1,526,472 | ) |   |   | 682,447 |   |
|                                                                                |   |                                                     |       |   |   |   |   |   |
| Cash                  flows from investing activities:                              |   |                                                     |       |   |   |   |   |   |
| Capital                  expenditure                                                |   |                                                     | (26,850    | ) |   |   | (50,222 | ) |
| Net                  cash used in investing activities                              |   |                                                     | (26,850    | ) |   |   | (50,222 | ) |
|                                                                                |   |                                                     |       |   |   |   |   |   |
| Cash                  flows from financing activities:                              |   |                                                     |       |   |   |   |   |   |
| Proceeds                  from common stock subscription, net of costs and fees     |   |                                                     | 630,000    |   |   |   | - |   |
| Proceeds                  from (repayments of) notes payable, net                   |   |                                                     | 581,656    |   |   |   | (767,066 | ) |
| Repayments                  of payable to related parties, net                      |   |                                                     | -          |   |   |   | (20,000 | ) |
| Net                  cash provided by (used in) financing activities                |   |                                                     | 1,211,656  |   |   |   | (787,066 | ) |
|                                                                                |   |                                                     |       |   |   |   |   |   |
| Net                  decrease in cash and cash equivalents                          |   |                                                     | (341,666   | ) |   |   | (154,841 | ) |
| Cash                  and cash equivalents at beginning of period                   |   |                                                     | 356,569    |   |   |   | 557,100 |   |
| Cash                  and cash equivalents at end of period                         |   | $                                                        | 14,903     |   |   | $ | 402,259 |   |
|                                                                                |   |                                                     |       |   |   |   |   |   |
| Supplemental                  Disclosures of Cash Flow Information:                 |   |                                                     |       |   |   |   |   |   |
| Cash                  paid during the period for interest                           |   | $                                                        | 55,271     |   |   | $ | 85,893 |   |
| Cash                  paid during the period for income taxes                       |   |                                                     | -          |   |   |   | - |   |
| Common                  stock issued to consultants for services rendered           |   |                                                     | 18,000     |   |   |   | 3,889 |   |
| Common                  stock subscribed in exchange for rent expenses              |   |                                                     | 87,282     |   |   |   | - |   |
| Common                  stock subscribed in exchange for accrued interest           |   |                                                     | 20,000     |   |   |   | - |   |
| Amortization                  of beneficial conversion feature of convertible notes |   |                                                     | 4,845      |   |   |   | 8,128 |   |

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Table            of Contents

**GLOBAL        DIVERSIFIED INDUSTRIES, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL        INFORMATION**

**July        31, 2007**

**(Unaudited)**

**NOTE        A - SUMMARY OF ACCOUNTING POLICIES**

*Revenue        Recognition*
*Revenue Recognition in Financial Statements*
*Multiple-Deliverable Revenue Arrangements.*

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Table            of Contents

**GLOBAL        DIVERSIFIED INDUSTRIES, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July        31, 2007**

**(Unaudited)**

**NOTE        A - SUMMARY OF ACCOUNTING POLICIES (Continued)**

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Table            of Contents

**GLOBAL        DIVERSIFIED INDUSTRIES, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July        31, 2007**

**(Unaudited)**

**NOTE        B - NOTES PAYABLE**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | **July                    31, 2007**  |   |   |   | **April 30,                    2007**  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------|--------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable to Company shareholder in monthly installments of interest                    only at                    10.0% per annum; unsecured; maturity date was in November 30,                    2003. The                    Company amended the note with the shareholder in April 2004,                    extending the                    maturity date to May 1, 2009; the noteholder has an option to                    convert the                    unpaid principal balance of the loan, together with any accrued                    and unpaid                    interest to the Company's preferred stock. (a) |   | $      | 389,465                                    |   |   |   | 389,465                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
|  Note                    payable to Company shareholders in monthly installments of interest                    only                    at 8.0% per annum; unsecured; maturity date extended to May 15,                    2008.                    Noteholder has the option to convert the principal balance of                    the loan to                    the Company’s preferred stock. (a)                                                                                                                                                                                                                                       |   |   | 78,500                                     |   |   |   | 78,500                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable to Company shareholders in monthly installments of interest                    only                    at 6.0% per annum; unsecured; maturity date is on May 1, 2009                    (Note                    I).                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 199,350                                    |   |   |   | 199,350                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable to Company shareholders in monthly installments of interest                    only                    at 5.0% per annum; unsecured; maturity date is on August 31,                    2005,                    maturity extended to August 31, 2007 Noteholder has the option                    to convert                    the principal balance of the loan to the Company’s preferred stock.                    (a).                                                                                                                                                                                       |   |   | 6,000                                      |   |   |   | 6,000                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
|  Note                    payable to Company shareholders in monthly installments of interest                    only                    at 8.0% per annum; unsecured; maturity dated August 2007. Noteholder                    has                    the option to convert the principal balance of the loan to the                    Company's                    preferred stock. (a)                                                                                                                                                                                                                                                         |   |   | 56,000                                     |   |   |   | 56,000                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable in 24 monthly installments beginning March 15, 2006;                    unsecured;                    maturity date is March 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 22,547                                     |   |   |   | 23,720                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable in 4 monthly installments beginning April 1, 2007, unsecured;                    maturity date July 1, 2007. This note was paid in full as of                    July 31,                    2007.                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | -                                          |   |   |   | 31,447                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable to Company shareholder in monthly installments of interest                    only at                    8% per annum, unsecured, maturity date is on January 31, 2006;                    maturity                    date extended to January 31, 2008 .                                                                                                                                                                                                                                                                                                                                                              |   |   | 111,000                                    |   |   |   | 111,000                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable in 24 monthly installments beginning December 27, 2004,                    with                    interest at 8% per annum beginning January 31, 2005, secured                    by company                    stock; maturity date was March 19, 2007. The Company paid in                    full as of                    July 31, 2007 . (b)                                                                                                                                                                                                                                                                      |   |   | -                                          |   |   |   | 15,743                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    Payable, interest only monthly beginning December 14, 2006 at                    8% per                    annum, unsecured, maturity date is April 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 28,000                                     |   |   |   | 28,000                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    payable in 12 installments beginning April 15, 2006 with interest                    at 9%                    per annum, unsecured, maturity date is March 15, 2007. paid in                    full as of                    July 31, 2007                                                                                                                                                                                                                                                                                                                                                                                     |   |   | -                                          |   |   |   | 6,327                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    Payable in 24 monthly installments beginning January 28, 2007,                    interest                    only first six months at 7.5 % per annum, unsecured, maturity                    is December                    2008                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 40,000                                     |   |   |   | 40,000                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |                                       |   |   |   |                                             |   |
| Note                    Payable with monthly interest only payment at 8% per annum beginning                    July                    23, 2007, unsecured, maturity is July 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 35,000                                     |   |   |   | --                                               |   |

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Table              of Contents

**GLOBAL            DIVERSIFIED INDUSTRIES, INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July            31, 2007**

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Note                    Payable with monthly interest only payments at 8% per annum beginning                    July                    14, 2007,unsecured, maturity is January 31, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 40,000     |   |   |   | --         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |       |   |
| Note                    payable in five annual payments beginning December 31, 2006,                    with interest                    payable monthly at 10% per annum. Lender has an option at the                    end of each                    twelve months (“anniversary date”) to receive restricted shares of the                    Company’s common stock in lieu of the annual cash payment of $100,000.                    The                    conversion price is equal to 75% of the closing price for the                    day that is                    twelve months prior to each anniversary date. The minimum conversion                    price                    shall be $0.05 per share. (c)                                                                                                                                                                                                                                                                                          |   |   | 232,175    |   |   |   | 227,330    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |       |   |
| Note                    payable revolving agreement secured by receivable and property                    with                    interest and administrative fees payable monthly; balance due                    for the term                    note was $187,500 and $250,000 at July 31, 2007 and April 30,2007                    respectively, balance due for the revolver was $1,075,136 and                    $451,290 at                    July 31, 2007 and April 30, 2007 respectively. Interest rate                    is at 1.75%                    and 2.75% per annum over and above the Prime Rate or Deemed Prime                    Rate                    whichever is higher for the revolver and term note, respectively.                    The                    maturity dates are November 1, 2007 and April 8, 2008 for the                    revolver and                    term note, respectively. The revolver has a maximum borrowing                    capacity of                    $3,000,000 . |   |   | 1,262,636  |   |   |   | 701,290    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 2,500,673  |   |   |   | 1,914,172  |   |
| Less:                    current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (1,679,683 | )      |   |   | (1,098,027 | )      |
| Total                    - notes payable – long term                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 820,990    |   |   |   | 816,145    |   |

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Table            of Contents

**GLOBAL          DIVERSIFIED INDUSTRIES, INC.**

**NOTES          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July          31, 2007**

**(Unaudited)**

**NOTE        C – CAPITAL STOCK**

**NOTE        D – STOCK OPTIONS AND WARRANTS**

|                                                   |   | **Number                  of Shares** | ** ** | ** ** | **Weighted                  Average Price Per Share** |
|--------------------------------------------------------|--------|---------------------------------------|------------|------------|-------------------------------------------------------|
| Outstanding                  at May 1, 2005            |   |                                  | 5,500,000  |       |                                                  | $ | 1.40 |
|    Granted                              |   |                                  | -          |       |                                                  |   | - |
|    Exercised                            |   |                                  | -          |       |                                                  |   | - |
|    Canceled                  or expired |   |                                  | (1,500,000 | )          |                                                  |   | 5,00 |
| Outstanding                  at April 30, 2006         |   |                                  | 4,000,000  |       |                                                  | $ | 0.05 |
|    Granted                              |   |                                  | -          |       |                                                  |   | - |
|    Exercised                            |   |                                  | -          |       |                                                  |   | - |
|    Canceled                  or expired |   |                                  | (4,000,000 | )          |                                                  |   | 0.05 |
| Outstanding                  at April 30, 2007         |   |                                  | -          |       |                                                  | $ | - |
|    Granted                              |   |                                  | -          |       |                                                  |   | - |
|    Exercised                            |   |                                  | -          |       |                                                  |   | - |
|    Canceled                  or expired |   |                                  | -          |       |                                                  |   | - |
| Outstanding                  at July 31, 2007          |   |                                  | -          |       |                                                  | $ | - |

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Table            of Contents

**GLOBAL          DIVERSIFIED INDUSTRIES, INC.**

**NOTES          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July          31, 2007**

**(Unaudited)**

**NOTE        D – STOCK OPTIONS AND WARRANTS (Continued)**

|                                 |       |       |                  **Warrants                  Outstanding   ** | ** ** | ** ** | ** **                                                               | ** ** | ** ** | ** ****Warrants                  Exercisable   ** |
|--------------------------------------|------------|------------|-----------------------------------------------------------------------------------|------------|------------|--------------------------------------------------------------------------|------------|------------|-----------------------------------------------------------------------|
| **Exercise                  Prices** | ** ** | ** ** | **Number                  Outstanding**                                           | ** ** | ** ** | **Weighted                  Average Remaining Contractual Life (Years)** | ** ** | ** ** | **Weighed                  Average Exercise Price**                   | ** ** | ** ** | **Number                  Exercisable** | ** ** | ** ** | **Weighted                  Average Exercise Price** |
| $                                    | 0.03       |       |                                                                              |       | 750,000    |                                                                     |       |       | 0.58                                                                  |   |   | $ | 0.03 |   |   |   | 750,000 |   |   | $ | 0.03 |

|                                                   |   | **Number                  of Shares** | ** ** | ** ** | **Weighted                  Average Price Per Share** |
|--------------------------------------------------------|--------|---------------------------------------|------------|------------|-------------------------------------------------------|
| Outstanding                  at May 1, 2005            |   |                                  | 1,500,000  |       |                                                  | $ | 0.03 |
|    Granted                              |   |                                  | -          |       |                                                  |   |   |
|    Exercised                            |   |                                  | -          |       |                                                  |   |   |
|    Canceled                  or expired |   |                                  | -          |       |                                                  |   |   |
| Outstanding                  at April 30, 2006         |   |                                  | 1,500,000  |       |                                                  | $ | 0.03 |
|    Granted                              |   |                                  | -          |       |                                                  |   | - |
|    Exercised                            |   |                                  | -          |       |                                                  |   | - |
|    Canceled                  or expired |   |                                  | (750,000   | )          |                                                  |   | 0.03 |
| Outstanding                  at April 30, 2007         |   |                                  | 750,000    |       |                                                  | $ | 0.03 |
|    Granted                              |   |                                  | -          |       |                                                  |   | - |
|    Exercised                            |   |                                  | -          |       |                                                  |   | - |
|    Canceled                  or expired |   |                                  | -          |       |                                                  |   | - |
| Outstanding                  at July 31, 2007          |   |                                  | 750,000    |       |                                                  | $ | 0.03 |

**NOTE        E - EMPLOYEE STOCK INCENTIVE PLAN**

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Table            of Contents

**GLOBAL          DIVERSIFIED INDUSTRIES, INC.**

**NOTES          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July          31, 2007**

**(Unaudited)**

**NOTE        F- ACQUISITION OF INTANGIBLE ASSETS**

| Trade                  name                                   |   | $      | 350,000 |
|---------------------------------------------------------------|--------|--------|---------|
| Building                  engineering and architectural plans |   |   | 150,000 |
| Total                                                         |   | $      | 500,000 |

|                                                            |   | **Gross                  Carrying Amount** | ** ** | ** ** | **Accumulated                  Amortization** | ** ** | ** ** | **Net** | ** ** | ** ** | **Residual                  Value** | ** ** | ** ** | **Weighted                  Average Amortization Period (Years)** |
|-----------------------------------------------------------------|--------|--------------------------------------------|------------|------------|-----------------------------------------------|------------|------------|---------|------------|------------|-------------------------------------|------------|------------|-------------------------------------------------------------------|
| Amortized                  Identifiable Intangible Assets:      |   |                                       |       |       |                                          |       |       |    |       |       |                                |       |       |                                                              |
| Building                  engineering and architectural plans   |   | $                                          | 878,739    |       |                                          | $          | (218,266   | )       |       | $          | 660,473                             |       |       | $                                                                 | - |   |   |   | 10.0 |
| Total                  Amortized Identifiable Intangible Assets |   |                                       | 878,739    |       |                                          | $          | (218,266   | )       |       | $          | 660,473                             |       |       | $                                                                 | - |   |   |   | 10.0 |
| Unamortized                  Identifiable Intangible Assets:    |   |                                       |       |       |                                          |       |       |    |       |       |                                |       |       |                                                              |   |   |   |   |   |
| Trade                  Name                                     |   |                                       | 350,000    |       |                                          |       | -          |    |       |       | 350,000                             |       |       |                                                              | 350,000 |   |   |   |   |
| Total                  Amortized Identifiable Intangible Assets |   |                                       | 350,000    |       |                                          |       | -          |    |       |       | 350,000                             |       |       |                                                              | 350,000 |   |   |   |   |
|                                                            |   |                                       |       |       |                                          |       |       |    |       |       |                                |       |       |                                                              |   |   |   |   |   |
| Total                                                           |   | $                                          | 1,228,739  |       |                                          | $          | (218,266   | )       |       | $          | 1,010,473                           |       |       | $                                                                 | 350,000 |   |   |   |   |

|                                                            |   | **Gross                  Carrying Amount** | ** ** | ** ** | **Accumulated                  Amortization** | ** ** | ** ** | **Net** | ** ** | ** ** | **Residual                  Value** | ** ** | ** ** | **Weighted                  Average Amortization Period (Years)** |
|-----------------------------------------------------------------|--------|--------------------------------------------|------------|------------|-----------------------------------------------|------------|------------|---------|------------|------------|-------------------------------------|------------|------------|-------------------------------------------------------------------|
| Amortized                  Identifiable Intangible Assets:      |   |                                       |       |       |                                          |       |       |    |       |       |                                |       |       |                                                              |
| Building                  engineering and architectural plans   |   | $                                          | 851,889    |       |                                          | $          | (196,299   | )       |       | $          | 655,590                             |       |       | $                                                                 | - |   |   |   | 10.0 |
| Total                  Amortized Identifiable Intangible Assets |   |                                       | 851,889    |       |                                          | $          | (196,299   | )       |       | $          | 655,590                             |       |       | $                                                                 | - |   |   |   | 10.0 |
| Unamortized                  Identifiable Intangible Assets:    |   |                                       |       |       |                                          |       |       |    |       |       |                                |       |       |                                                              |   |   |   |   |   |
| Trade                  Name                                     |   |                                       | 350,000    |       |                                          |       | -          |    |       |       | 350,000                             |       |       |                                                              | 350,000 |   |   |   | - |
| Total                  Amortized Identifiable Intangible Assets |   |                                       | 350,000    |       |                                          |       | -          |    |       |       | 350,000                             |       |       |                                                              | 350,000 |   |   |   | - |
| Total                                                           |   | $                                          | 1,201,889  |       |                                          | $          | (196,299   | )       |       | $          | 1,005,590                           |       |       | $                                                                 | 350,000 |   |   |   | 10.0 |

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Table              of Contents

**GLOBAL          DIVERSIFIED INDUSTRIES, INC.**

**NOTES          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July          31, 2007**

**(Unaudited)**

**NOTE          F- ACQUISITION OF INTANGIBLE ASSETS (Continued)**

| For                  the twelve months ended July 31, |   |   |
|-------------------------------------------------------|--------|--------|
| 2008                                                  |   | $      | 87,864 |
| 2009                                                  |   |   | 87,864 |
| 2010                                                  |   |   | 87,864 |
| 2011                                                  |   |   | 87,864 |
| 2012                  and after                       |   |   | 309,017 |
|                                                  |   |   |   |
| Total                                                 |   | $      | 660,473 |

**NOTE        G - DIVESTITURES AND DISCONTINUED OPERATIONS**

| Cash                  consideration          |   | $      | 1,000   |   |
|----------------------------------------------|--------|--------|---------|--------|
| Debts                  assumed by PMI        |   |   | 372,819 |   |
| Net                  assets disposed of      |   |   | (45,533 | )      |
|                                         |   |   |    |   |
| Net                  gain on disposal of MBS |   | $      | 328,286 |   |
|                                         |   |   |    |   |

|                                                             |   | **2007** | ** ** | ** ** | **2006** |   |
|------------------------------------------------------------------|--------|----------|------------|------------|----------|--------|
|                                                             |   |     |       |       |     |   |
| Revenues                                                         |   | $        | -          |       |     | $      | - |   |
| Costs                  and Expenses                              |   |     | -          |       |     |   | (17,894 | ) |
|                                                             |   |     |       |       |     |   |   |   |
| Net                  loss before tax                             |   |     | -          |       |     |   | (17,894 | ) |
| Income                  tax provision                            |   |     | -          |       |     |   | - |   |
|                                                             |   |     |       |       |     |   |   |   |
| Loss                  from discontinued operations, net of taxes |   | $        | -          |       |     | $      | (17,894 | ) |
|                                                             |   |     |       |       |     |   |   |   |

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Table            of Contents

**GLOBAL          DIVERSIFIED INDUSTRIES, INC.**

**NOTES          TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July          31, 2007**

**(Unaudited)**

**NOTE        H- INCOME TAXES**

** **

|        |   | **2007** | ** ** | ** ** | **2006** |   |
|-------------|--------|----------|------------|------------|----------|--------|
| Current     |   |     |       |       |     |   |
| Federal     |   | $        | --         |       |     | $      | -- |   |
| State       |   |     | --         |       |     |   | 800 |   |
|        |   |     | --         |       |     |   | 800 |   |
|        |   |     |       |       |     |   |   |   |
| Deferred    |   |     |       |       |     |   |   |   |
| Federal     |   |     | --         |       |     |   | (117,000 | ) |
| State       |   |     | --         |       |     |   | (31,000 | ) |
|        |   |     | --         |       |     |   | (148,000 | ) |
|        |   |     |       |       |     |   |   |   |
|  Total |   | $        | --         |       |     | $      | (147,200 | ) |

|                                                                                       |   | **Three                    Months Ended July 31, 2007** |    | ** ** | **Three                    Months Ended July 31, 2006** |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|------------|---------------------------------------------------------|--------|
|                                                                                       |   |                                                    |    |       |                                                    |   |
|                                                                                       |   |                                                    |    |       |                                                    |   |
| Computed                    “expected” income tax expense at approximately 34% |   | $                                                       | 17,000  |       |                                                    | $      | 33,000 |   |
|                                                                                       |   |                                                    |    |       |                                                    |   |   |   |
| Increase                    (decrease) in NOL carryforwards                                |   |                                                    | (17,000 | )          |                                                    |   | (32,200 | ) |
|                                                                                       |   |                                                    |    |       |                                                    |   |   |   |
| Discretionary                    change in valuation allowances of deferred income taxes   |   |                                                    | --      |       |                                                    |   | (148,000 | ) |
|                                                                                       |   |                                                    |    |       |                                                    |   |   |   |
|                                                                                       |   | $                                                       | --      |       |                                                    | $      | (147,200 | ) |

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Table                  of Contents

**GLOBAL              DIVERSIFIED INDUSTRIES, INC.**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

**July              31, 2007**

**(Unaudited)**

**NOTE H- INCOME TAXES (Continued)**

|                                                                         |   | **July                31, 2007** | ** ** | ** ** | **April                30, 2007** |   |
|------------------------------------------------------------------------------|--------|----------------------------------|------------|------------|-----------------------------------|--------|
| Deferred                tax assets:                                          |   |                             |       |       |                              |   |
| Federal                and state net operating loss                          |   | $                                | 1,112,000  |       |                              | $      | 1,132,000 |   |
| Allowance                and accruals not recognized for income tax purposes |   |                             | -          |       |                              |   | - |   |
| Total                gross deferred tax assets                               |   |                             | 1,112,000  |       |                              |   | 1,132,000 |   |
| Less                : Valuation allowance                                    |   |                             | (934,000   | )          |                              |   | (954,000 | ) |
| Net                deferred tax assets                                       |   | $                                | 178,000    |       |                              | $      | 178,000 |   |
|                                                                         |   |                             |       |       |                              |   |   |   |
| Deferred                tax liabilities:                                     |   |                             |       |       |                              |   |   |   |
| Total                gross deferred tax liabilities:                         |   |                             |       |       |                              |   |   |   |
| Depreciation                and amortization, net                            |   |                             | (80,000    | )          |                              |   | (80,000 | ) |
| Deferred                state tax liability                                  |   |                             | (2,000     | )          |                              |   | (2,000 | ) |
| Total                net deferred tax liabilities                            |   | $                                | (82,000    | )          |                              | $      | (82,000 | ) |

|                                              |   | **July                31, 2007** | ** ** | ** ** | **April                30, 2007** |
|---------------------------------------------------|--------|----------------------------------|------------|------------|-----------------------------------|
| Current                deferred tax asset         |   | $                                | -          |       |                              | $ | - |
| Non                current deferred tax asset     |   |                             | 96,000     |       |                              |   | 96,000 |
| Non                current deferred tax liability |   |                             | -          |       |                              |   | - |
| Total                net deferred tax asset       |   | $                                | 96,000     |       |                              | $ | 96,000 |

**NOTE      I - RELATED PARTY TRANSACTIONS**

**NOTE      J - ECONOMIC DEPENDENCY**

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Table          of Contents

**ITEM      2.     MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR      THE      THREE AND NINE MONTHS ENDED JANUARY 31, 2006**

**DESCRIPTION      OF COMPANY**

**OVERVIEW**

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Table          of Contents

**COMPARISON      OF THE THREE MONTHS ENDED JULY 31, 2007 TO THE THREE MONTHS ENDED JULY 31,      2006**

**Results      of Operations**

**Liquidity      and Capital Resources**

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Table          of Contents

**Inflation**

**Off-Balance      Sheet Arrangements**

**Critical      Accounting Policies**

| ·   | Revenue                Recognition |
|--------------------|------------------------------------|

| ·   | Inventories |
|--------------------|-------------|

| ·   | Allowance                for doubtful accounts |
|--------------------|------------------------------------------------|

**Revenue      Recognition**

*Revenue Arrangements with Multiple*
*Deliverables*

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Table          of Contents

**Product      Warranty Reserve**

**Inventories**

**Allowance      for Uncollectible Accounts**

**Employees**

**Properties**

**Trends,      Risks and Uncertainties**

**Cautionary      Factors that May Affect Future Results and Market Price of      Stock**

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Table          of Contents

**LIMITED      OPERATING HISTORY; ANTICIPATED LOSSES; UNCERTAINTY OF **
**FUTURE      RESULTS**

**POTENTIAL      FLUCTUATIONS IN ANNUAL OPERATING RESULTS**

**LIMITED      PUBLIC MARKET, POSSIBLE VOLATILITY OF SHARE PRICE**

**MANAGEMENT      OF GROWTH**

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Table          of Contents

**RISKS      ASSOCIATED WITH ACQUISITIONS**

**ITEM      3.     CONTROLS AND      PROCEDURES**

**PART      II.   OTHER      INFORMATION**

**ITEM      1.     LEGAL      PROCEEDINGS**

**ITEM      2.     CHANGES IN      SECURITIES AND USE OF PROCEEDS**

**ITEM      3.     DEFAULTS UPON SENIOR      SECURITIES**

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

**ITEM      5.     OTHER      INFORMATION**

**ITEM      6.    EXHIBITS**

| No.  |  Description                                                                                                                                    |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1 | Certification                of Phillip Hamilton Pursuant to Section 302 of the Sarbanes-Oxley                Act                of  2002. |
| 31.2 | Certification                of E. Adam DeBard to Section 302 of the Sarbanes-Oxley Act                of  2002.                           |
| 32.1 | Certification                of Phillip Hamilton Pursuant to Section 906 of the Sarbanes-Oxley                Act of                2002.            |
| 32.2 | Certification                of E. Adam DeBard Pursuant to Section 906 of the Sarbanes-Oxley Act                of                2002.              |

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Table          of Contents

**SIGNATURES**

|                                                   | **Global                Diversified Industries, Inc.** |                                                                                                         |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                                   |                                                   |                                                                                                         |   |
| Date:                September                18, 2007 | By:                                                    | /s/ Phillip              Hamilton                                                                       |   |
|                                                   |                                                   | Phillip              Hamilton                                                                           |   |
|                                                   |                                                   | President              and Chief Executive              Officer (Principal                Executive Officer) |   |
|                                                   |                                                   |                                                                                                         |   |

| Date:                September                18, 2007    | By:    | /s/ Adam              DeBard                                                                       |   |
|--------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|
|                                                                     |   | Adam              DeBard                                                                                |   |
|                                                                     |   | Chief Operating                Officer (Principal Accounting                and Financial Officer) |   |
|                                                                     |   |                                                                                                    |   |

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