U.S. SECURITIES AND EXCHANGE COMMISSION

                         WASHINGTON, DC 20549

                              FORM 10-QSB

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

     For the Quarter Ended June 30, 1999

     Commission file number 0-16819

                           FragranceNet.com, Inc.
        (Exact name of registrant as specified in its charter)

           Delaware                                  94-3054267
     (State or other jurisdiction of    (I.R.S.Employer Identification Number)
     incorporation or organization)

     2070 Deer Park Avenue   Deer Park       NY         11729
     (Address of principal executive offices)         (Zip Code)
     Registrant's telephone number, including area code   (516) 242-3205
     Former name, former address and former fiscal year, if changed from last
     report

     National Capital Management Corporation 520 Madison Ave. N.Y., N.Y. 10022

     Check whether the issuer (1) filed all reports required to be filed by
     Section 13 or 15(d) of the Securities Exchange Act during the past 12
     months (or for such shorter period that the registrant was required to
     file such reports), and (2) has been subject to such filing requirements
     for the past 90 days.

                     Yes      X           No ___________

     Number of common shares outstanding as of June 30, 1999:

           Common stock, $0.01 par value, 1,673,190 shares

 <PAGE>

                        FRAGRANCENET.COM, INC.
            (FORMERLY NATIONAL CAPITAL MANAGEMENT CORPORATION)
                     FORM 10-QSB QUARTERLY REPORT
                             JUNE 30, 1999



                           TABLE OF CONTENTS



                                                                  PAGE

                    PART I.  FINANCIAL INFORMATION

     Consolidated Balance Sheets as of June 30, 1999
      (unaudited) and December 31, 1998                            3
     Consolidated Statements of Operations for the three
       and six months ended June 30, 1999 and 1998 (unaudited)     4
     Consolidated Statements of Cash Flows for the six
       months ended June 30, 1999 and 1998 (unaudited)             5
     Notes to Consolidated Financial Statements                 6-11

     ITEM II. Management's Discussion and Analysis of
                Financial Condition and
                Results of Operations                          12-14

                      PART II - OTHER INFORMATION

     Item 1.  Legal Proceedings                                   15
     Item 2.  Changes in Securities                               15
     Item 3.  Defaults Upon Senior Securities                     15
     Item 4.  Submission of Matters to a Vote of
              Security Holders                                    15
     Item 5.  Other Information                                   15
     Item 6.  Exhibits and Reports on Form 8-K                    15
              Signatures                                          16


                                  -2-
<PAGE>
                        FRAGRANCENET.COM, INC.
          (FORMERLY NATIONAL CAPITAL MANAGEMENT CORPORATION)
                      CONSOLIDATED BALANCE SHEETS
                  JUNE 30, 1999 AND DECEMBER 31, 1998
<TABLE>
                                                    June 30,   December 31,
                                                      1999       1998
       ASSETS                                      (Unaudited) (Audited)
     <S>                                           <C>         <C>

     Cash and cash equivalents                     $2,106,022  $2,058,674
     Other receivable                                  -           75,000
     Accounts receivable                               -            3,711
     Property and equipment, less accumulated
      depreciation of $-0- and $80,718 at
      June 30, 1999 and December 31, 1998,
      respectively                                     -           24,113
     Net assets of discontinued operations -
      Real Estate Segment                              -           11,426
      Viatical Settlements Segment                                 -
     Other assets                                      -           39,960

     Total assets                                  $2,106,022  $2,212,884
</TABLE>
          LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
     <S>                                           <C>         <C>
     Net liabilities of discontinued operations -
       Viatical Settlements Segment                $   -       $  493,015
     Accrued liabilities                               34,624      71,007

     Total current liabilities                         34,624     564,022

     Shareholders' equity:
      Preferred stock, $0.01 par value,
        3,000,000 shares authorized, no shares
        issued and outstanding                         -           -
      Common stock, $0.01 par value, 6,666,666
        shares authorized, 1,813,056 shares
        issued, 1,673,190 outstanding                  16,732      16,732
      Additional paid-in capital                   23,618,139  23,125,123
      Accumulated deficit                         (21,389,256)(21,318,776)
      Treasury stock, 139,866 shares at
        June 30, 1999 and
        December 31, 1998                            (174,217)   (174,217)

     Total shareholders' equity                     2,071,398   1,648,862

     Total liabilities and shareholders' equity   $ 2,106,022  $2,212,884
</TABLE>

     See Accompanying Notes to Financial Statements.
                                  -3-
<PAGE>
                        FRAGRANCENET.COM, INC.
          (FORMERLY NATIONAL CAPITAL MANAGEMENT CORPORATION)
                 CONSOLIDATED STATEMENTS OF OPERATIONS
       FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>

                                 Three months ended      Six Months Ended
                                       June 30,               June 30,
                                  1999        1998        1999        1998
                               (Unaudited) (Unaudited) (Unaudited) (Unaudited)
     <S>                        <C>         <C>         <C>          <C>
     Income (expense):
      Other income              $ 17,638    $ 66,833    $ 34,330     $ 77,726
      Corporate administrative
        expense                 (301,745)   (299,633)   (424,235)    (437,072)

     Net loss from
      continuing operations
      after tax                 (284,107)   (232,800)   (389,905)    (359,346)

     Discontinued operations:
      Net operating income
       (loss):
         Viatical settlements
           (Note 2)                 -        (25,201)     (3,750)     (25,201)
             Real estate segment
            (Note 3)                -        (43,932)       (399)     (30,973)
         Gain on disposal of
           real estate segment,
           Net of taxes of
           approximately
           $43,000 in 1998
           (Note 3)             323,574      655,374     323,574      655,374

     Net income from
      discontinued
      operations                323,574      586,241     319,425      599,200

     Net income (loss)         $ 39,467     $353,441    $(70,480)    $239,854

     Net loss from
      continuing operations
      per share                  $(.18)       $(.14)      $(.24)        $(.21)

     Net income from
      discontinued operations
      per share                    .20          .35         .20           .35

     Net income (loss)
       per share                 $ .02        $ .21       $(.04)        $ .14

     Average number of
      shares outstanding     1,673,190    1,673,190   1,673,190     1,673,190
</TABLE>

     See Accompanying Notes to Financial Statements.
                                  -4-
<PAGE>
                        FRAGRANCENET.COM, INC.
          (FORMERLY NATIONAL CAPITAL MANAGEMENT CORPORATION)
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>

                                                      1999         1998
                                                   (Unaudited)  (Unaudited)
     <S>                                          <C>            <C>
     Cash flows from operating activities:
      Net income (loss)                           $  (70,480)    $ 239,854
      Adjustments to reconcile net income (loss)
        to net cash provided by (used in)
        operating activities:
          Depreciation                                 4,380         4,380
          Bad debt expense                             -           127,767
          Gain on sale of real estate segment       (323,574)     (655,374)
          Loss on disposal of fixed assets            19,733          -
      Changes in operating assets and
        liabilities:
          Decrease in accounts receivable              3,711          -
          Increase (decrease) in accounts
            payable and accrued liabilities          (36,382)       44,234
          Increase (decrease) in other assets         39,960        (3,736)

     Net cash used in operating activities          (362,652)     (242,875)

     Change in net assets of discontinued
      operations                                       -          (373,691)

     Cash flows from investing activities:
       Proceeds from sale of real estate segment     335,000     2,499,101
       Collections on notes receivable                75,000        56,785

     Net cash provided by investing activities       410,000     2,555,886

     Increase in cash and cash equivalents            47,348     1,939,320

     Cash and cash equivalents at beginning
       of period                                   2,058,674        56,035

     Cash and cash equivalents at end of period   $2,106,022    $1,995,355
</TABLE>

     See Accompanying Notes to Financial Statements.
                                  -5-
<PAGE>
                        FRAGRANCENET.COM, INC.
          (FORMERLY NATIONAL CAPITAL MANAGEMENT CORPORATION)
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        JUNE 30, 1999 AND 1998
                              (Unaudited)


     NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION

     The financial information for the three and six month periods ended June
     30, 1999 and 1998 presented in this Form 10-QSB has been prepared from the
     accounting records without audit.  The information furnished reflects all
     adjustments (consisting of only normal recurring adjustments) which are,
     in the opinion of management, necessary for a fair statement of the
     results of interim periods.  The results of operations for the three
     months ended June 30, 1999 are not necessarily indicative of the results
     to be expected for a full year.  The consolidated balance sheet as of
     December 31, 1998 has been derived from audited financial statements.
     This report should be read in conjunction with the consolidated financial
     statements included in the Company's December 31, 1998 Annual Report to
     shareholders on Form 10-KSB as filed with the Securities and Exchange
     Commission.

     On July 28, 1999 the Company merged with TeleScents, Inc. and changed its
     name to FragranceNet.com, Inc.  (See Note 6.)

     Prior to 1995, the Company had been comprised of three distinctly
     different operating businesses, the Viatical Settlements Segment, which
     was operated through National Capital Benefits Corporation ("NCBC"), a
     wholly owned subsidiary, the Real Estate Segment and the Industrial
     Products Segment.  The Industrial Products Segment and Real Estate Segment
     were discontinued in 1995.  The Viatical Settlement Segment was
     discontinued in 1996.

     The remainder of the Real Estate Segment was sold for $335,000 in May,
     1999 (see Note 3).

     The Viatical Settlement Segment was disposed of in June, 1999 (see Note 2).

     Subsequent to June 30, 1999 the Company declared a dividend of $.58 per
     share (see Note 6).

     Consolidation Principles

     The consolidated financial statements include the accounts of the Company
     and all of its majority-owned subsidiaries.  All significant intercompany
     accounts and transactions have been eliminated in consolidation.

     Earnings per share

     Effective December 15, 1997, the Financial Accounting Standards Board
     issued Statement No. 128, "Earnings per Share".  Statement No. 128
     replaced the previously reported primary and fully diluted earnings per
     share with basic and diluted earnings per share.  Under the new
     requirements for calculating earnings per share, the dilutive effect of
     stock options will be excluded from basic earnings per share but included
     in the computation of diluted earnings per share.  All earnings per share
     amounts have been restated so as to comply with Statement No. 128.


                                  -6-
<PAGE>
     NOTE 2 - DISCONTINUED OPERATIONS - VIATICAL SETTLEMENTS SEGMENT

     The results of the Viatical Settlements Segment have been reported
     separately as discontinued operations in these consolidated statements of
     operations.

     In December 1996, the Company decided to discontinue the operations of the
     Viatical Settlements Segment.  The Company reduced its staff and expects
     that the remaining personnel will administer the orderly liquidation of
     its existing portfolio. The Company established a $1,500,000 valuation
     reserve during 1996 against accrued policy revenues and purchased policy
     costs which represents the estimated expected loss on holding the remaining
     policies to maturity in order to reflect management's estimate of the fair
     market value of the net assets.  During the fourth quarter ended
     December 31, 1997, the Company increased its original reserve by $350,000.
     In addition, management reevaluated the expected costs of operations and
     accordingly increased the reserve by $522,000 as of December 31, 1998.
     The amount of the reserve was determined based on projections of expected
     cash inflows from maturities and reinsurance claims, and cash outflows for
     debt service and operating costs during the portfolio administration
     process, which is expected to take several more years.

     Because the Company is under no obligation to fund the liability
     associated with the cost of operations of the Viatical Settlements
     Segment, the liability of the discontinued operation at December 31, 1998
     was reclassified to additional paid-in-capital.

     On June 29, 1999, the Company sold all outstanding shares of the Viatical
     Settlements Segment to an entity controlled by the former Chief Executive
     Officer/Director of the Company.  As consideration, the Purchaser assumed
     all obligations to Bank One and Bank One Capital Partners V, Ltd.

     Summarized below are the operations of the Company's Viatical Settlements
     Segment for the three and six months ended June 30, 1999 and 1998:
<TABLE>
                                   For the three             For the six
                                    months ended             months ended
                                      June 30,                 June 30,
                                 1999        1998         1999        1998
                              (Unaudited) (Unaudited)  (Unaudited) (Unaudited)
     <S>                       <C>         <C>          <C>         <C>
     Revenue accrued and
       received                $374,778    $ 867,340    $846,082    $1,901,078
     Cost of insurance
       policies                (286,026)    (686,820)   (642,907)   (1,443,663)
     Valuation reserve
       income                   116,305      170,532     210,393       262,737
     Earned discount            205,057      351,052     413,568       720,152
     Interest expense          (141,848)    (274,975)   (281,848)     (583,349)
     Earned discount after
      interest expense           63,209       76,077     131,720       136,803
     General and
       administrative
       expenses                 (63,209)    (101,278)   (131,720)     (162,004)

     Net income (loss)         $   -        $(25,201)       -        $ (25,201)
</TABLE>

                                  -7-
<PAGE>

     NOTE 2 - DISCONTINUED OPERATIONS - VIATICAL SETTLEMENTS SEGMENT
     (CONTINUED)

     The components of the Viatical Settlements Segment net assets
     (liabilities) from discontinued operations in the consolidated balance
     sheets as of June 30, 1999 and December 31, 1998 are as follows:
<TABLE>
                                                  June 30,     December 31,
                                                    1999           1998
                                                 (Unaudited)    (Audited)
     <S>                                         <C>           <C>
     Purchased policy costs, less amortized
       policy costs of $-0- and $20,668,126,
       respectively                              $    -        $ 1,583,337
     Valuation reserve                                -           (666,899)
     Accrued policy revenues, less matured
       revenues valuation of $-0- and
       $9,586,769, respectively                       -         15,266,332
     Revolving credit facility                        -         (3,660,216)
     Subordinated note payable                        -         (2,000,000)
     Reinsurance liability                            -        (10,522,723)
     Other, net                                       -           (492,846)

                                                 $    -        $  (493,015)
</TABLE>

     NOTE 3 - DISCONTINUED OPERATIONS - REAL ESTATE SEGMENT

     On November 27, 1995, the Company elected to discontinue operations of the
     Real Estate Segment to concentrate its efforts on its Viatical Settlements
     Segment.  The following is a description of the Company's recent disposal
     activity:

     Colony Ridge Apartments

     Colony Ridge Apartments was an apartment complex in Decatur, Georgia which
     was constructed in 1968 and consisted of 23 two-story buildings containing
     a total of 212 apartment units.  On May 6, 1998, the Company sold the
     Colony Ridge Apartments for $3,650,000.  The Company received net proceeds
     of approximately $2,500,000.  The difference between the sales price and
     the net proceeds received was due to the repayment of the mortgage, state
     taxes, and miscellaneous expenses.  The Company reported a gain, net of
     income taxes, of approximately $650,000 during 1998.

     Redbird Trails Apartments and North Oak Apartments:  On June 13, 1994 and
     December 8, 1994, in accordance with previous agreements dated December
     30, 1993, the Company sold limited partnership interests in Redbird Trails
     Associates, L.P. ("Redbird") and Signature Midwest, L.P. ("Signature"),
     respectively, to two unrelated entities.  The Company retained a .9%
     interest in each partnership through two wholly-owned subsidiaries serving
     as the operating general partners.  Such operating general partners were
     obligated to provide loans of up to $150,000 and $75,000 to Redbird and
     Signature, respectively, to fund any operating deficits, as defined, for
     a three year period ending December 8, 1997.  No loans were made during
     1997.

     The Company retained a contingent interest in the cash flows of these
     partnerships.  For the three and six months ended June 30, 1999 the
     Company received management fees of approximately $8,400 and $16,100.
     respectively.

                                  -8-
<PAGE>

     NOTE 3 - DISCONTINUED OPERATIONS - REAL ESTATE SEGMENT (CONTINUED)

     In May 1999, the Company sold to NCM Management Ltd. the real estate
     company currently providing management services to these properties,
     which is controlled by a former Director of the Company, its residual
     interest in such properties, including the right to receive the
     aforementioned management fee, for $335,000.

     The results of the Real Estate Segment have been reported separately as
     discontinued operations in these consolidated statements of operations.

     Summarized below are the operations of the Company s Real Estate Segment
     for the three and six months ended June 30, 1999 and 1998:
<TABLE>
                              For the three months       For the six months
                                 ended June 30,            ended June 30,
                                  1999          1998      1999         1998
                               (Unaudited) (Unaudited) (Unaudited) (Unaudited)
     <S>                        <C>         <C>          <C>         <C>
     Total revenues             $   -       $113,560     $   -       $393,148

     Costs and expenses:
       Operations and
          maintenance               -         80,045         -        227,477
       Property taxes and
          insurance                 -          2,101         -         22,143
       Depreciation and
          amortization              -         25,000         -        100,000
       Net interest                 -         16,940         -         41,095
       Corporate administrative
         expenses                    399      33,406          399      33,406

     Total costs and expenses       (399)   (157,492)        (399)   (424,121)

     Net income (loss)          $   (399)   $(43,932)    $   (399)   $(30,973)
</TABLE>

     NOTE 4 - DISCONTINUED OPERATIONS - INDUSTRIAL PRODUCTS SEGMENT

     The Industrial Products Segment was discontinued during 1995.  It
     consisted of the Company's wholly-owned subsidiary, Jensen Corporation
     ("Jensen"), which manufactured and distributed machinery used primarily by
     commercial laundries, large institutions and hotels as well as commercial
     compactor products for waste disposal.  On November 10, 1995, the Company
     sold 100% of the common stock of Jensen, located in Fort Lauderdale,
     Florida to AMKO USA, Inc. ("AMKO"), an affiliate of AMKO International
     B.V. which is based in The Netherlands, for $1,726,000.  The sale proceeds
     included cash of $415,000 and a promissory note receivable in the amount
     of $1,311,000 which was secured by Jensen's stock, accounts receivable and
     inventory.  The $1,311,000 note was guaranteed in its entirety by AMKO
     International B.V., and the sole shareholder of AMKO International B.V.
     guaranteed, as amended May 16, 1997, $500,000 of payments, of all notes.

     AMKO also agreed to cause Jensen to pay to the Company a $765,000
     obligation in the form of a note,  which was loaned to Jensen, $500,000 of
     which was prior to the sale and $265,000 which was simultaneous with the
     sale, and an intercompany balance payable by Jensen to the Company of
     $337,650, which was secured by the assets of Jensen.  These notes were
     guaranteed by AMKO International B.V.


                                  -9-
<PAGE>
     NOTE 4 - DISCONTINUED OPERATIONS - INDUSTRIAL PRODUCTS SEGMENT (CONTINUED)

     The $1,311,000 note, as amended May 16, 1997, bore interest at 8.5% per
     annum and was payable in varying installments with the balance due in
     April 1998 unless extended as indicated below.  The $765,000 note, as
     amended May 16, 1997, bore interest at 8.5% per annum and was payable in
     varying installments with the balance due in April 1998 unless extended as
     indicated below.  The $337,650 note, as amended May 16, 1997, bore
     interest at 8.5% per annum and was payable in varying installments with
     the balance due in April 1998 unless extended as indicated below.

     The Company advanced $198,000 to AMKO during February and March 1997, of
     which $82,500 was repaid.  The balance was a Demand Note which bore
     interest at 12% per annum.  This note was also guaranteed by AMKO
     International.  As of December 31, 1997, this note was paid in full.

     In accordance with the May 16, 1997 amendment, the notes could be extended
     until April 1999, if AMKO prepaid $500,000 on or before April 1, 1998.  If
     extended, the interest rate on all of the notes would increase to 12%.
     The Company charged AMKO a fee of $200,000 in  conjunction with the
     amendment.  The fee was paid on May 16, 1997.

     The Company loaned Jensen an additional $200,000 in conjunction with the
     May 16, 1997 modification and an additional $36,000 in October 1997.
     These notes bore interest at 8.5% and mature simultaneously with the other
     notes.

     As of October 1997, Jensen stopped making payments as required by the
     terms of the May 16, 1997 amendment.  On November 11, 1997, Jensen filed
     for Chapter 7 bankruptcy.  On March 26, 1998, an auction sale was held,
     the proceeds of which are either to be distributed pursuant to an
     evidentiary hearing or a prior court approved agreement with the trustee.

     In March 1999, a settlement was reached with the trustee, in which a
     payment of $75,000 would be made to the Company, as a result of the sale
     of Jensen's inventory, in exchange for which the Company would assert no
     further claims against the debtor.  This payment was received in May 1999.

     As a result of the bankruptcy filing, the Company reduced the value of its
     notes receivable to $150,000 as of December 31, 1997.  The Company
     received approximately $73,000 during 1998 and the remaining balance was
     written off as of December 31, 1998.

     AMKO International filed for and was discharged from the bankruptcy in the
     Netherlands between January and April 1998.

     The Company had pursued a remedy in judicial proceedings in the
     Netherlands with a procedural result that would allow the Company to
     pursue AMKO International in the United States courts.  As of February
     1999, the Company released both AMKO International and its successor in
     interest from any and all claims.  In addition, the Company and FNM
     Holdings NV (a Netherlands bank) agreed to settle all potential lender
     liability claims.  As a result of the foregoing, the Company was free to
     pursue the former owner of AMKO International "solely" on his personal
     guarantee.  This claim against the personal guarantee will allocate any
     proceeds received on the basis of 75% to the Company and 25% to FNM
     Holding, N.V., after all expenses have been paid.  The Company cannot
     predict the outcome of this litigation or the likelihood that it will be
     pursued.  This claim was assigned to entities controlled by the former
     Chairman/Director and the former Chief Executive Officer/Director in
     exchange for their agreement to undertake certain limited indemnifications
     in connection with the merger.

                                 -10-
<PAGE>
     NOTE 5 - CONCENTRATION OF RISK

     The Company has bank balances in excess of the $100,000 of depository
     insurance provided by the Federal Deposit Insurance Corporation.

     NOTE 6 - SUBSEQUENT EVENTS:

     On July 28, 1999, the Company entered into an Agreement and Plan of Merger
     by and among the Company, FAC, Inc., and TeleScents, Inc. (the "Merger
     Agreement") pursuant to which the Company, through its wholly-owned
     subsidiary, FAC, Inc., merged with and into TeleScents, Inc.
     ("TeleScents"), a private closely-held company organized under the laws of
     the State of New York.  Pursuant to the terms of the Merger Agreement,
     FAC, Inc. merged with and into TeleScents (the "Merger"), whereupon the
     separate corporate existence of FAC, Inc. ceased, and TeleScents continued
     as the surviving corporation ("Surviving Corporation").  As Merger
     consideration for the shares of TeleScents, the Company issued to the
     Shareholders of TeleScents, Inc. (collectively, the "Shareholders") an
     aggregate of 4,900,000 shares of the Company's Common Stock and an
     aggregate of newly authorized 1,029,514 shares of the Company's Series A
     Preferred Stock having a par value of $.01 per share (the "Preferred
     Stock").  The Preferred Stock is convertible into the Company's Common
     Stock on a 1-for-10 basis at such time as the Company has sufficient
     number of authorized shares.  In accordance with the Post-Closing
     Agreement dated July 28, 1999, the Company anticipates that the Preferred
     Stock will be converted into 10,295,140 shares of Common Stock in
     connection with a shareholders' meeting to be held as soon as practicable.
     The Company intends to recommend to Shareholders as soon as practicable
     an amendment to the Company's Certificate of Incorporation to increase the
     number of shares to allow for the foregoing conversion.  The Preferred
     Stock carries voting privileges on an "as converted" basis.  Accordingly,
     the Shareholders, in the aggregate, hold approximately 89.55% of the
     Company's voting stock.

     Subsequent to June 30, 1999 but prior to July 28, 1999, 40,000 options
     expiring three years from the date of issuance and exercisable at $.40
     per share were issued to the four directors of the Company.  In
     accordance with the Merger Agreement, three of the directors resigned on
     July 28, 1999.  In addition, in connection with identifying and
     negotiating the transaction with TeleScents and providing the Company
     with advising services in connection with the merger, on the date of
     closing a corporation controlled by the former Chairman and a
     partnership managed by the former Chief Executive Officer each received
     three-year warrants to purchase 30,000 shares of common stock of the
     Company at an exercisable price of $.40 per share, and $45,000 and
     $15,000 in cash, respectively.  All of the above options and warrants
     vested immediately.

     The Company declared a cash dividend of $.58 per share to the Shareholders
     of record as of the close of business on July 20, 1999.  The dividend will
     be paid on August 12, 1999.

                                 -11-
<PAGE>
                        FRAGRANCENET.COM, INC.
          (FORMERLY NATIONAL CAPITAL MANAGEMENT CORPORATION)
                 MANAGEMENT'S DISCUSSION AND ANALYSIS
           OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

     Overview

     The following is a discussion and analysis of the consolidated financial
     condition of the Company as of June 30, 1999 and of the results of
     operations for the Company for the three and six months ended June 30,
     1999 and 1998, and of certain factors that may affect the Company's
     prospective financial condition and results of operations.  The following
     is supplemental to and should be read in conjunction with the Company's
     December 31, 1998 Annual Report to shareholders on Form 10-KSB as filed
     with the Securities and Exchange Commission, and the financial information
     and accompanying notes beginning on page 3 of this report.

     Information contained in this discussion and analysis contains "forward-
     looking statements" within the meaning of the Private Securities
     Litigation Reform Act of 1995, which can be identified by the use of
     forward-looking terminology such as "may", "will", "expect", "plan",
     "anticipate", "estimate" or "continue" or the negative thereof or other
     variations thereon or comparable terminology.  There are certain important
     factors that could cause results to differ materially from those
     anticipated by some of these forward-looking statements.  Investors are
     cautioned that all forward-looking statements involve risks and
     uncertainty.  The factors, among others, that could cause actual results
     to differ materially include: cures and advances in medical treatments for
     terminal illnesses; dependence on medical consultants and an ability to
     predict life expectancy; the Company's ability to execute its business
     plan, and the ability to collect reinsurance recoveries from a single
     reinsurance facility.

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

     Material estimates that are particularly susceptible to significant change
     in the near term relate to the determination of the valuation reserve
     against accrued policy revenues and the cost of purchased policies and the
     collectibility of notes receivable.

     On July 28, 1999, the Company entered into an Agreement and Plan of Merger
     by and among the Company, FAC, Inc., and TeleScents, Inc. (the "Merger
     Agreement") pursuant to which the Company, through its wholly-owned
     subsidiary, FAC, Inc., merged with and into TeleScents, Inc.
     ("TeleScents"), a private closely-held company organized under the laws of
     the State of New York.  Pursuant to the terms of the Merger Agreement,
     FAC, Inc. merged with and into TeleScents (the "Merger"), whereupon the
     separate corporate existence of FAC, Inc. ceased, and TeleScents continued
     as the surviving corporation ("Surviving Corporation").  As Merger
     consideration for the shares of TeleScents, the Company issued to the
     Shareholders of TeleScents, Inc. (collectively, the "Shareholders") an

                                 -12-
<PAGE>
     aggregate of 4,900,000 shares of the Company's Common Stock and an
     aggregate of newly authorized 1,029,514 shares of the Company's Series A
     Preferred Stock having a par value of $.01 per share (the "Preferred
     Stock").  The Preferred Stock is convertible into the Company's Common
     Stock on a 1-for-10 basis at such time as the Company has sufficient
     number of authorized shares.  In accordance with the Post-Closing
     Agreement, the Company anticipates that the Preferred Stock will be
     converted into 10,295,140 shares of Common Stock in connection with a
     shareholders' meeting to be held as soon as practicable.  The Company
     intends to recommend to Shareholders as soon as practicable an amendment
     to the Company's Certificate of Incorporation to increase the number of
     shares to allow for the foregoing conversion.  The Preferred Stock carries
     voting privileges on an "as converted" basis.  Accordingly, the
     Shareholders, in the aggregate, hold approximately 89.55% of the Company's
     voting stock.

     Accounting for long-lived assets

     For the six months ended June 30, 1999 and calendar year December 31,
     1998, the Company has applied SFAS 121, "Accounting for the Impairment of
     Long-Lived Assets and for Long-Lived Assets to Be Disposed Of", and
     determined that certain adjustments for impairment were required.  In
     addition to the write-down of several assets of the Company, a $1.5
     million valuation reserve was established during 1996 against accrued
     policy revenues and purchased policy costs in order to reflect
     management's estimate of the fair market value of the net assets.  During
     the fourth quarter ended December 31, 1997 and 1998, the Company increased
     its original reserve by $350,000 and $522,000, respectively (Note 2).

     Financial condition and liquidity

     The Company's cash decreased from $2,058,674 as of December 31, 1998 to
     $2,106,022 at June 30, 1999, principally as a result of financing
     operating activities.

     With the disposal of its Viatical Settlements Segment, the Company does
     not have any existing general credit facilities to fund its ongoing
     working capital requirements.  These lending facilities were amended in
     1997 in  light of management's decision to discontinue the Viatical
     Settlements Segment and liquidate the portfolio.

     Results of operations

     The remainder of the Real Estate Segment was sold for $335,000 in May,
     1999 (see Note 3).

     The Viatical Settlement Segment was disposed of in June, 1999 (see Note
     2).

     During the three and six months ended June 30, 1999, approximately $-0-
     and $362,500 of life insurance policies matured as compared to $160,000
     and $297,500 for the same period last year.

                                 -13-
<PAGE>

     On May 6, 1998, the Company sold the Colony Ridge Apartments for
     $3,650,000.  The Company received net proceeds of approximately
     $2,500,000.  The difference between the sales price and the net proceeds
     received was due to the repayment of the mortgage, state taxes, and
     miscellaneous expenses.  The Company reported a gain, net of income taxes,
     of approximately $650,000 during 1998.

     YEAR 2000

     The Year 2000 problem is the result of computer programs being written
     with two digits instead of four digits to define the applicable year.  The
     Company believes based upon its internal reviews and other factors, that
     future external and internal costs to be incurred relating to the
     modification of internal-use software for the Year 2000 will not have a
     material adverse effect on the Company's results of operations or
     financial position.  The Company, due to the fact that it is in the
     process of orderly liquidating its discontinued operations, only makes
     minimal use of computers in operating its business.  In addition, the
     Company believes that its internal computer systems, facilities and
     equipment will be upgraded, where required, for Year 2000.  However, there
     is no assurance that all of the upgrades will be completed in time or
     function as intended.  In such an event, the Company may experience
     significant disruptions, the cost of which the Company is unable to
     estimate at this time.  The Company, also, cannot assure that its failure
     or failure of third parties to address adequately Year 2000 issues will
     not have a material effect on the Company.

                                 -14-
<PAGE>
                      PART II - OTHER INFORMATION


     ITEM 1. LEGAL PROCEEDINGS
             Not applicable

     ITEM 2. CHANGES IN SECURITIES
             Not applicable

     ITEM 3. DEFAULTS UPON SENIOR SECURITIES
             Not applicable

     ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
             Not applicable

     ITEM 5. OTHER INFORMATION
             Not applicable

     ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
             Not applicable

                                 -15-
<PAGE>
                                             SIGNATURES

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

                                           FRAGRANCENET.COM, INC.
                                           (FORMERLY NATIONAL CAPITAL
                                           MANAGEMENT CORPORATION




     Dated:                         By:               //s// Dennis M. Apfel
                                         Dennis M. Apfel
                                         Chief Financial Officer
                                 -16-