U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark  One)
[X]    QUARTERLY  REPORT  UNDER  SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
       ACT  OF  1934

                 For the quarterly period ended:  June 30, 2001

                                       OR

[ ]    TRANSITION  REPORT  UNDER  SECTION  13  OR  15(d)  OF  THE EXCHANGE ACT

       For  the  transition  period  from                   to
                                          -----------------    -----------------

       Commission  file  number               000-26751
                               -------------------------------------------------

                               CyPost Corporation
        -----------------------------------------------------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)

           Delaware                                      98-0178674
-------------------------------             -----------------------------------
(State or other jurisdiction of            (IRS Employer Identification Number)
incorporation or  organization)

900-1281  West Georgia St.,  Vancouver, British Columbia, Canada     V6E 3J7
--------------------------------------------------------------------------------
     (Address  of  Principal  Executive  Offices)               (Zip  Code)

                              (604)  904-4422
--------------------------------------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

     Not  Applicable
--------------------------------------------------------------------------------
(Former  Name,  Former  Address  and  Former  Fiscal Year, if Changed Since Last
Report)

     Check  whether  the  issuer:  (1) filed all reports required to be filed by
Section  13  or 15(d) of the 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 [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  the latest practicable date:  21,559,525 as of July 31,
2001.

Transitional  Small  Business  Disclosure  Format  (check one):  Yes [ ] No [X]


<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM  1.     FINANCIAL  STATEMENTS

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  reporting and pursuant to the rules and regulations of the Securities
and  Exchange  Commission  ("Commission").  While  these  statements reflect all
normal  recurring adjustments which are, in the opinion of management, necessary
for  fair presentation of the results of the interim period, they do not include
all  of  the information and footnotes required by generally accepted accounting
principles for complete financial statements.  For further information, refer to
the  financial  statements  and  footnotes  thereto,  which  are included in the
Company's  Annual  Report  on Form 10-KSB, as amended, for the fiscal year ended
December  31,  2000,  previously  filed  with  the  Commission.

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

<TABLE>
<CAPTION>
                             CYPOST CORPORATION AND SUBSIDIARIES
                                  CONSOLIDATED BALANCE SHEETS
                              JUNE 30, 2001 AND DECEMBER 31, 2000
                                        (U.S. DOLLARS)

                                                            6/31/01        12/31/00
                                                         --------------  -------------
                                                          (Unaudited)      (Audited)
<S>                                                      <C>             <C>
ASSETS

CURRENT ASSETS
  CASH                                                   $     102,161   $    250,631
  ACCOUNTS RECEIVABLE, NET OF ALLOWANCE                        331,787        173,207
  INSURANCE PROCEEDS RECEIVABLE                                  2,716         58,488
  PREPAIDS AND DEPOSITS                                        152,390        250,534
                                                         --------------  -------------
                                                               589,054        732,860

PROPERTY AND EQUIPMENT, NET OF ACCUMULATED
DEPRECIATION                                                   607,054        751,020

 GOODWILL AND OTHER INTANGIBLES, NET OF                      2,277,090      3,193,015
   ACCUMULATED AMORTIZATION
 OTHER ASSETS                                                    9,323          5,371
                                                         --------------  -------------

                                                         $   3,482,521   $  4,682,266
                                                         ==============  =============

 LIABILITIES AND SHAREHOLDERS EQUITY

 CURRENT LIABILITIES
   ACCOUNTS PAYABLE AND ACCRUED LIABILITIES              $   1,111,089   $  1,026,666
   LOANS                                                     2,344,788      2,110,000
   DEFERRED REVENUE                                            547,315        640,483
                                                         --------------  -------------
   TOTAL CURRENT LIABILITIES                                 4,003,192      3,777,149
                                                         --------------  -------------

 COMMITMENTS AND CONTINGENCIES

 STOCKHOLDERS' EQUITY (DEFICIT)
   SHARE CAPITAL
        AUTHORIZED
             5,000,000 PREFERRED STOCK  WITH A PAR VALUE OF $.001
             30,000,000 COMMON STOCK
             WITH A PAR VAUE OF $.001

        ISSUED AND OUTSTANDING
             PREFERRED STOCK -
             NONE                                                    -              -
             COMMON STOCK 21,559,493 -
             2001, 21,556,993 - 2000                            21,560         21,557
   PAID-IN CAPITAL                                          14,048,816     14,047,544
   ACCUMULATED DEFICIT                                     (14,587,243)   (13,197,006)
   CURRENCY TRANSLATION ADJUSTMENT                              (3,804)        33,022
                                                          --------------  ------------
  TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                        (520,671)       905,117
                                                         --------------  -------------

                                                         $   3,482,521   $  4,682,266
                                                         ==============  =============
</TABLE>

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


<PAGE>
<TABLE>
<CAPTION>
                      CYPOST  CORPORATION  AND  SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
        FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (UNAUDITED)
                                 (U.S. DOLLARS)


                             Three Months Ended           Six Months Ended
                                   June 30,                   June 30,
                         --------------------------  -------------------------
                             2001          2000          2001         2000
                         ------------  ------------  ------------  -----------
<S>                      <C>           <C>           <C>           <C>
REVENUE                  $   955,376   $ 1,354,745   $ 2,019,199    2,394,305

DIRECT COSTS                (484,358)     (676,546)     (913,029)  (1,296,927)
                         ------------  ------------  ------------  -----------
                             471,018       678,199     1,106,170    1,097,378
                         ------------  ------------  ------------  -----------
EXPENSES
  SELLING, GENERAL AND
  ADMINISTRATIVE             723,047     1,403,834     1,345,999    2,411,617
  AMORTIZATION
  AND
  DEPRECIATION               548,604       847,556     1,067,461    1,506,648
                         ------------  ------------  ------------  -----------
                           1,271,651     2,251,390     2,413,460    3,918,265
                         ------------  ------------  ------------  -----------

LOSS BEFORE OTHER
 INCOME (EXPENSE)           (800,633)   (1,573,191)   (1,307,290)  (2,820,887)
                         ------------  ------------  ------------  -----------
NET PROCEEDS FROM
 FIRE INSURANCE                    -        22,274             -      129,545

INTEREST EXPENSE             (41,621)   (1,824,611)      (82,947)  (2,003,895)

MINORITY INTEREST                  -        92,700             -      108,656
                         ------------  ------------  ------------  -----------

NET LOSS                    (842,254)   (3,282,828)   (1,390,237)  (4,586,581)
                         ------------  ------------  ------------  -----------


LOSS PER SHARE
 BASIC & DILUTED               (0.04)        (0.16)        (0.06)       (0.22)
                         ============  ============  ============  ===========

WEIGHTED AVERAGE
 NUMBER OF SHARES         21,559,493    21,138,993    21,558,243   20,892,842
 OUTSTANDING
                         ============  ============  ============  ===========
</TABLE>

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


<PAGE>
<TABLE>
<CAPTION>
                       CYPOST CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                 (U.S. DOLLARS)

                                                         2001          2000
                                                     ------------  ------------
<S>                                                  <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  NET LOSS                                           $(1,390,237)  $(4,586,581)
  Adjustments to reconcile net loss to cash used by
      operating activities:
    Amortization and depreciation                      1,067,461     1,506,648
    Interest expense                                      82,947     2,003,451
    Fair value of stock issued for services                1,275             -
    Net recovery from fire insurance                           -      (129,545)
                                                     ------------  ------------
                                                        (238,554)   (1,206,027)
  Changes in non-cash operating accounts                 161,755       348,308
                                                     ------------  ------------
NET CASH USED BY OPERATING ACTIVITIES                    (76,799)     (857,719)
                                                     ------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of business                                      -      (300,000)
  Purchase of property and equipment                     (71,671)     (266,130)
  Investment in software development                           -       (74,447)
                                                     ------------  ------------
NET CASH USED IN INVESTING ACTIVITIES                    (71,671)     (640,577)
                                                     ------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Loan proceeds                                                -     1,333,589
                                                     ------------  ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES                      -     1,333,589
                                                     ------------  ------------
NET INCREASE IN CASH                                    (148,470)     (164,707)
CASH, BEGINNING OF PERIOD                                250,631       415,779
                                                     ------------  ------------
CASH, END OF PERIOD                                  $   102,161   $   251,072
                                                     ============  ============
</TABLE>

  The accompanying notes are an integral part of these consolidated statements


<PAGE>
                               CYPOST CORPORATION
                         NOTES TO CONDENSED CONSOLIDATED
                              FINANCIAL STATEMENTS
                                  JUNE 30, 2001
                                   (UNAUDITED)

                                 (U.S. DOLLARS)

1.   BASIS  OF  PRESENTATION  AND  SIGNIFICANT  ACCOUNTING  POLICIES

     GOING  CONCERN

          These  financial  statements  have  been  prepared  on  the  basis  of
     accounting  principles  applicable  to  a "going concern" which assume that
     Cypost  Corporation (the "Company") will continue in operation for at least
     one  year  and  will  be  able  to  realize  its  assets  and discharge its
     liabilities  in  the  normal  course  of  operations.

          Several  conditions  and events cast doubt about the Company's ability
     to  continue  as  a  going  concern. The Company has incurred net losses of
     approximately $14.6 million for the period from inception September 5, 1997
     to  June  30,  2001,  has  a  working capital deficit of approximately $3.4
     million  at  June  30,  2001,  and  requires  additional  financing for its
     business  operations.

          The  Company is streamlining operations and consolidating its ISP's to
     enhance  efficiency  and  reduce  operating  expenses.  As  a result of the
     foregoing  efforts,  the  operations  of Intouch Internet Inc. and NetRover
     Office  Inc.  have  been fully consolidated into the Company's wholly-owned
     subsidiary,  NetRover  Inc.

          These  consolidated  financial  statements  do not reflect adjustments
     that  would  be necessary if the Company were unable to continue as a going
     concern.  While  management  believes  that  the  actions  already taken or
     planned,  as  described  above,  will  mitigate  the adverse conditions and
     events  which  raise  doubts  about  the  validity  of  the "going concern"
     assumption  used  in  preparing these financial statements, there can be no
     assurance  that  these  actions  will  be  successful.

          If  the  Company  were  unable  to  continue  as a going concern, then
     substantial  adjustments  would  be  necessary  to  the  carrying values of
     assets,  the reported amounts of its liabilities, the reported revenues and
     expenses.

                          INTERIM FINANCIAL STATEMENTS

          The interim condensed consolidated financial statements presented have
     been  prepared  by  the  Company  without  audit and, in the opinion of the
     management,  reflect all adjustments of a normal recurring nature necessary
     for  a fair statement of (a) the consolidated results of operations for the
     three  and  six  months  ended June 30, 2001 and 2000, (b) the consolidated
     financial position at June 30, 2001 and (c) the consolidated cash flows for
     the  six  months  ended  June  30,  2001  and 2000. Interim results are not
     necessarily  indicative  of  results  for  a  full  year.

          The  consolidated  balance sheet presented as of December 31, 2000 has
     been  derived  from  the  consolidated  financial statements that have been
     audited  by  the Company's independent auditors. The consolidated financial
     statements  and  notes are condensed as permitted by Form 10-QSB and do not
     contain certain information included in the annual financial statements and
     notes  of  the  Company.  The  consolidated  financial statements and notes
     included herein should be read in conjunction with the financial statements
     and  notes  included  in  the  Company's  Annual  Report  on  Form  10-KSB.


<PAGE>
                                  CONSOLIDATION

          The  consolidated  financial statements include the accounts of CyPost
     Corporation  and its subsidiaries. In 2000, the subsidiaries include CyPost
     KK,  Playa  Corporation,  ePost  Innovations  Inc., NetRover Inc., NetRover
     Office  Inc.,  Hermes  Net Solutions Inc., and Intouch.Internet Inc. All of
     the  subsidiaries,  except  CyPost KK, are wholly owned. Later in 2000, the
     Company  sold  its  investment in CyPost KK and abandoned its investment in
     Playa  Corporation.  Connect Northwest and Internet Arena are DBA of CyPost
     Corporation.  All  significant inter-company transactions and balances have
     been  eliminated  in  consolidation.


2.   LOANS

          On June 18, 2001 at the request of Blue Heron Venture Fund, Ltd. (Blue
     Heron),  Blue  Heron  Notes in the aggregate principal amount of $2,085,000
     were  cancelled  and on June 19, 2001 new promissory notes (the "Blue Heron
     Shareholder Notes") in the aggregate principal amount of $2,319,788.24 were
     issued  to the shareholders of Blue Heron. The principal amount of the Blue
     Heron  Shareholder Notes is comprised of the $2,085,000 principal amount of
     the  Blue Heron Notes and the $234,788.24 in interest due on the Blue Heron
     Notes  at  the  time  of cancellation. The Blue Heron Shareholder Notes are
     unsecured  and are payable on demand. $2,085,000 in principal amount of the
     Blue  Heron Shareholder Notes bear interest at 8% per annum. The balance of
     the  Blue  Heron  Shareholder  Notes  do  not  provide  for  the payment of
     interest.

3.   COMMITMENTS  AND  CONTIGENCIES

     CANADA  POST  LITIGATION

          On  June  20,  2001  ePost  Innovations,  Canada  Post and the Company
     entered  into  a  Settlement  and Release Agreement effective as of May 30,
     2001  (the  "Settlement  Agreement"). Pursuant to the Settlement Agreement,
     the  parties  executed  mutual  releases  and discontinued their respective
     claims. The release by Canada Post to ePost Innovations was made subject to
     the  Company  and ePost Innovations ceasing all use of the trade name EPOST
     within  Canada  within  90  days  of  the  effective date of the Settlement
     Agreement  and  transferring  all  right,  title and interest they had with
     respect  to  the trade name and trademark EPOST and any goodwill associated
     therewith  to  Canada  Post upon execution of the Settlement Agreement. The
     Company  has  yet to change the name of its subsidiary but intends to do so
     within  the  time  frame  set  forth in the Settlement Agreement. All other
     terms  of  the  Settlement  Agreement  have  been  complied  with.

     BERRY  LITIGATION

          On  March 31, 2000, the Company commenced suit in the Supreme Court of
     British  Columbia,  Action  #S001822,  Vancouver Registry against Tia Berry
     (the  "Tia  Action"),  the  wife  of  Steven  Berry  ("Berry"),  the former
     President  and  Chief  Executive Officer of the Company. In the Tia Action,
     the  Company  claims $42,516 (CDN) from Tia Berry on account of monies paid
     to  her by the Company which she was not entitled to receive. Tia Berry has
     filed  a  Statement  of Defense in the Tia Action in which she alleges that
     the  payments which she received from the Company were to reimburse her for
     business  expenses  which  she had charged to her credit cards on behalf of
     Berry.  The  Tia  Action  has  not  yet  been  set  for  trial.

          On  April  4,  2000, Berry commenced an action in the Supreme Court of
     the  State of New York, County of New York (Index No. 601448/2000), against


<PAGE>
     the Company and Continental Stock Transfer & Trust Company ("Continental"),
     (the  "New York Action"). In the New York Action, Berry claimed damages for
     alleged  conversion, fraud, breach of contract and breach of fiduciary duty
     all arising from the alleged wrongful Stop Transfer Order which the Company
     placed  relating  to 75,000 shares of the Company's Common Stock registered
     in  Berry's name and the Company's cancellation of a further 600,000 shares
     (the  "Contingent  Shares").  The  complaint  in the New York Action claims
     damages in excess of $3,000,000 with the precise amount to be determined at
     trial.

          Berry  received  the  600,000 Contingent Shares upon condition that he
     would  remain  in  the  Company's  employ as Chief Executive Officer for at
     least two years. Berry commenced his employment with the Company on January
     4,  1999, and resigned his employment with the Company on January 17, 2000.
     Following  Berry's  resignation,  the  Company  attempted  to  have  a Stop
     Transfer  Order  issued  with  respect  to  the 75,000 shares registered in
     Berry's  name  and  cancel the 600,000 Contingent Shares. The Stop Transfer
     Order  was  not  effective  and  Berry subsequently sold the 75,000 shares.

          On  May  19,  2000  CyPost and ePost Innovations commenced suit in the
     Supreme  Court  of  British  Columbia, Action #S002798, Vancouver Registry,
     against  Berry and his wife, Tia Berry (the "BC Action"). In the BC Action,
     the Company seeks an order directing Berry to return the 600,000 Contingent
     Shares to the Company for cancellation or an order entitling the Company to
     cancel  the  same  on  the  basis that Berry did not fulfill the employment
     conditions  which  were  the  condition  precedent  to  his  becoming  the
     beneficial  owner  of  the  Contingent  Shares.

          In  the  BC  Action, the Company also claims at least Cdn$800,000 from
     Berry  on  account  of  breach  of  fiduciary  duty,  negligence, breach of
     statutory  duties  and  breach  of contract arising from Berry's failure to
     properly  carry  out his employment responsibilities. In the BC Action, the
     Company  also  claims  Cdn$34,013  from  Berry  and Tia Berry on account of
     conspiracy  to  defraud  and  injure  the  Company and ePost Innovations by
     causing  certain personal expenses to be paid by the Company rather than by
     Berry  and  Tia  Berry  personally.  The  Company  also claims punitive and
     exemplary  damages  from  Berry  and  Tia  Berry  in  the  BC  Action.

          On May 25, 2000, the Company moved in the New York Action for an order
     dismissing  the  action against the Company for lack of jurisdiction or, in
     the  alternative,  on  the  basis  of forum non conveniens. On September 5,
     2000,  the  court  dismissed  the  New  York Action on forum non conveniens
     grounds, subject to the Company making certain stipulations in the New York
     Action.  Those stipulations have been made and the appeal period in the New
     York  Action  has  expired  without  Berry or any other party appealing the
     September  5,  2000  order.

          The issues raised by Berry and the Company in the New York Action will
     be  litigated  in  the BC Action together with the further issues raised by
     the  Company in the BC Action. The Company feels that Berry's claims in the
     New  York Action were without merit and that the Company will be successful
     in  obtaining  an order declaring that Berry's 600,000 Contingent Shares be
     cancelled  and  further  entitling  the Company to substantial damages. The
     Company  will  vigorously  pursue  its  position  in  all  respects.

          On  December  21,  2000,  Berry  and  Tia  Berry commenced suit in the
     Supreme  Court  of  British  Columbia, Action #S006790, Vancouver Registry,
     against  CyPost,  ePost  Innovations,  Kelly  Shane Montalban, J. Thomas W.
     Johnston, Carl Whitehead and Robert Sendoh (the "Berry Action"). Statements
     of  Defense  have  been  filed  on  behalf  of  the  Company  and the other
     defendants.

          The  Plaintiffs in the Berry Action allege that the Tia Action, the BC
     Action,  and  the action by Kelly Shane Montalban (Supreme Court of British
     Columbia,  Action #S002147, Vancouver Registry), against Berry for specific


<PAGE>
     performance  of an option agreement (the "Montalban Action"), collectively,
     amount to an abuse of process, malicious prosecution, unlawful interference
     with the Plaintiffs' economic rights, or were commenced pursuant to a civil
     conspiracy  to  injure  the  Plaintiffs.

          In  the  Berry Action, the Plaintiffs seek a declaration that Berry is
     entitled  to  the  600,000  Contingent Shares and claim unspecified damages
     which  are estimated at Cdn$2,000,000 based on the Statement of Claim. They
     also  claim  punitive or aggravated damages and costs. The Company believes
     that the allegations in the Berry Action are without merit and they will be
     vigorously  defended.

          It is expected that the Tia Action, the BC Action and the Berry Action
     will  be  consolidated for the purposes of trial due to the fact that there
     are  numerous  issues  of  fact  and  law  which are common to all of these
     actions. The Company believes that trial will likely take place in the fall
     of  2002.

          A  loss  by  the  Company of the claim against it for monetary damages
     would  have  a  material  adverse effect on the Company's future results of
     operations,  financial  condition  and liquidity; however, the Company does
     not  expect  to lose this action and believes additionally that it would be
     able  to  negotiate  reasonable  payment  terms  should  it lose this suit.

                           SHANE MONTALBAN LITIGATION

          On  June  15,  2001, the Company filed a Summons and Complaint against
     Kelly  Shane  Montalban,  a principal shareholder of the Company, in the US
     District  Court for the Southern District of New York alleging liability by
     Mr.  Montalban  to  the  Company  for  violations  of  Section 16(b) of the
     Securities  Exchange  Act  of  1934, as amended. The suit seeks recovery of
     short swing profits realized by Mr. Montalban and affiliated persons during
     the  period  September  1999 through June 15, 2001 as the result of certain
     purchases and sales of the Company's common stock by Mr. Montalban and such
     affiliated  persons.

          The  Company  and  Mr.  Montalban  are presently engaged in settlement
     discussions  to resolve the litigation. No assurance can be given, however,
     that  the  parties  will  reach  a  settlement.



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

     The  following  discussion  and  analysis  is  provided  to  increase  the
understanding  of,  and  should  be  read  in conjunction with, the Consolidated
Financial Statements of the Company and Notes thereto included elsewhere in this
Report.  Historical  results  and  percentage relationships among any amounts in
these financial statements are not necessarily indicative of trends in operating
results  for  any  future period.  The statements which are not historical facts
contained in this Report, including this Management's Discussion and Analysis of
Financial  Condition  and  Results  of Operations, and Notes to the Consolidated
Financial Statements, constitute "forward-looking statements" within the meaning
of  the  Private  Securities Litigation Reform Act of 1995.  Such statements are
based  on  currently available operating, financial and competitive information,
and  are  subject  to  various  risks  and uncertainties.  Future events and the
Company's  actual  results  may  differ materially from the results reflected in
these  forward-looking  statements.  Factors  that might cause such a difference
include, but are not limited to, dependence on existing and future key strategic
and  strategic  end-user  customers,  limited ability to establish new strategic
relationships,  ability  to  sustain and manage growth, variability of operating
results, the Company's expansion and development of new service lines, marketing
and other business development initiatives, the commencement of new engagements,
competition  in  the  industry,  general  economic conditions, dependence on key
personnel,  the  ability  to  attract, hire and retain personnel who possess the
technical  skills  and  experience necessary to meet the service requirements of
its  clients,  the  potential  liability  with  respect  to actions taken by its
existing  and  past  employees,  risks  associated with international sales, and
other  risks  described  herein  and  in  the  Company's  other  SEC  filings.

Overview

     The  Company  is  engaged  in  the  business  of providing Internet service
provider  ("ISP")  services  ("ISP  Services")  for  business  and personal use.
Previously,  the  Company  was  also  involved  in  developing  certain software
products,  which  activities  the  Company  no  longer  pursues.

     The  Company  was  a  development  stage company until the first quarter of
1999,  when  it  began to broaden its strategic focus through the acquisition of
six  ISPs.  Currently,  providing  ISP  Services  is  the focus of the Company's
business.  The  Company's  business  operations  are  presently conducted in the
United  States  and  Canada.

     The Company derives virtually all of its revenues from its ISP Services. At
present,  most  of  the  revenue  from  ISP  Services  can  be  attributed  to
connectivity,  although  the Company's network of ISP Services is moving towards
focusing  on Web hosting and server co-location, anticipating a strong hold over
connectivity  by  the  larger  ISPs  in  a  few  years'  time.

     During  2000,  the  Company  began  streamlining  and consolidating its ISP
Services  operations  to  enhance  efficiency and reduce operating expenses. The
Company  has  embarked  on  a program to centralize ISP Services to the greatest
extent  possible,  as  follows:

   -  Customer  Support.  During  the  second  half  of  2000, the Company began
      -----------------
      consolidating  all  aspects  of  customer  support  (including  end  user
      technical  issues)  into  the  Chatham,  Ontario  facility. In early 2001,
      customer  support for Oregon ISP Services customers were consolidated into
      the Chatham facility and by late-2001 it is expected that customer support
      for  all  of  the  Company's ISP Services customers will be handled by the
      Chatham  facility.

   -  Billing  and  Collections.  During  the  second  half of 2000, the Chatham
      -------------------------
      facility took over billing and collections for British Columbia customers,
      in  addition  to continuing billing and collections for all other Canadian
      customers.  In  early  2001 the billing and collections for the Oregon ISP
      customers  were  consolidated  into  the  Chatham  facility,  billing  and
      collections for the Washington ISP Services customers will be consolidated
      in  late-2001.

   -  Network Operations.  During 2000, the Company reduced four maintenance and
      ------------------
      repair  teams  to  two  regionally-based  teams.  A  team based in Toronto
      provides primary monitoring and repair of all servers and routers covering
      all  Canadian  ISP  Services customers and provides overflow assistance to


<PAGE>
      the  Pacific  Northwest,  while a Seattle team provides primary monitoring
      and  repair  of  all  servers  and  routers  covering  all  of the Pacific
      Northwest  ISP  Services  customers  and  provides  overflow assistance to
      Canada.

     The  Company  is also consolidating Web hosting and dedicated services into
Toronto,  a  process which began in late-2000 and is expected to be completed by
late-2001.  Other  ISP  Services  such  as e-mail and user authentication (i.e.,
customer  security)  will  continue  to  be  handled from regional data centers.
Beginning  in  early 2001, all new Web hosting customers, wherever located, will
be  hosted  from  Toronto.

     The Company is also considering implementing other consolidated services to
achieve  greater  efficiency  and  cost  savings.

Results  of  Operations for the Three Months Ended June 30, 2001 Compared to the
Three  Months  Ended  June  30,  2000

     Substantially  all  of  the  Company's  revenue  was  earned  from  its ISP
operations  during  the  three  months  ended June 30, 2001.  These revenues are
attributable  virtually  entirely  to  the  operations  of  the  Company's  ISP
businesses  (Hermes  Net  Solutions, Inc., Intouch.Internet Inc., NetRover Inc.,
Connect  Northwest  Internet  Services  and  Internet  Arena)  which the Company
acquired  beginning  late  in the second quarter of 1999.  The Company generated
net  sales  of  $955,376  for  the  three months ended June 30, 2001 compared to
$1,354,745  for the three months ended June 30, 2000.  The decrease in the above
noted  revenue,  for  the three months ended June 30, 2001 compared to the three
months  ended  June 30, 2000, are primarily due to the discontinuation of  Playa
Corporation  during  the fourth quarter of 2000, a decrease in marketing related
activities,  and  the  softening  of  technology  related  sector  spending.

     Direct  costs,  which  consist  primarily  of telecommunications charges in
respect  of  providing  Internet  connection services to customers, of $484,358,
were incurred for the three months ended June 30, 2001, compared to $676,546 for
the  three  months ended June 30, 2000. The decrease in the above noted expenses
for the three months ended June 30, 2001 compared to the three months ended June
30,  2000  results  primarily  from  having  renegotiated  certain  key
telecommunication  agreements and receiving service level agreement credits from
certain  telecommunication  providers.

     Selling,  general  and  administrative expenses were $723,047 for the three
months  ended  June  30,  2001 compared to $1,403,834 for the three months ended
June  30,  2000.  The  decrease in the above noted expenses for the three months
ended  June  30,  2001  compared to the three months ended June 30, 2000 results
primarily  from  a  reduction  in salaries and benefits and consolidation of the
operation  of  the  Company's  ISP  businesses.

     The Company has accrued interest of $41,621 for the three months ended June
30,  2001,  compared to $1,824,611 for the three months ended June 30, 2000. The
interest  expense  is  in  respect  of promissory notes (the "Blue Heron Notes")
issued  by the Company in favor of Blue Heron Venture Fund, Ltd. ("Blue Heron"),
the  Company's  former principal creditor These notes in the aggregate principal
amount as at June 18, 2001 of $2,085,000 were unsecured, bore interest at 8% per
annum and were payable on demand. On June 18, 2001 at the request of Blue Heron,
these  notes were cancelled and on June 19, 2001 new promissory notes (the "Blue
Heron  Shareholder  Notes") in the aggregate principal amount of $2,319,788 were
issued to the shareholders of Blue Heron. The principal amount of the Blue Heron
Shareholder  Notes  is  comprised of the $2,085,000 principal amount of the Blue
Heron Notes and the $234,788 in interest due on the Blue Heron Notes at the time
of  cancellation. The Blue Heron Shareholder Notes are unsecured and are payable
on  demand.  $2,085,000  in principal amount of the Blue Heron Shareholder Notes
bear  interest  at 8% per annum. The balance of the Blue Heron Shareholder Notes
do  not  provide  for  the  payment  of  interest.  See  "Liquidity  and Capital
Resources"  below.

     The  Company  had  a net loss of $842,254, or $.04 per share, for the three
months  ended  June  30, 2001, compared to a net loss of $3,282,828, or $.16 per
share,  for  the  three months ended June 30, 2000. The decrease in net loss for
the  three  months  ended  June  30,  2001 was primarily a result of significant
decreases  in  direct  costs;  selling,  general  and  administrative  expenses;
amortization  and  depreciation  of the assets acquired in the fiscal year 1999;
and  interest  expense.


<PAGE>
Results of Operations for the Six Months Ended June 30, 2001 Compared to the Six
Months  Ended  June  30,  2000

     Substantially  all  of  the  Company's  revenue  was  earned  from  its ISP
operations  during  the  six  months  ended  June  30, 2001.  These revenues are
attributable  virtually  entirely  to  the  operations  of  the  Company's  ISP
businesses  (Hermes  Net  Solutions, Inc., Intouch.Internet Inc., NetRover Inc.,
Connect  Northwest  Internet  Services  and  Internet  Arena)  which the Company
acquired  beginning  late  in the second quarter of 1999.  The Company generated
net  sales  of  $2,019,199  for  the  six months ended June 30, 2001 compared to
$2,394,305  for  the  six  months ended June 30, 2000. The decrease in the above
noted  revenue,  for  the three months ended June 30, 2001 compared to the three
months  ended  June 30, 2000, are primarily due to the discontinuation of  Playa
Corporation  during  the fourth quarter of 2000, a decrease in marketing related
activities,  and  the  softening  of  technology  related  sector  spending.

     Direct  costs,  which  consist  primarily  of telecommunications charges in
respect  of  providing  Internet  connection services to customers, of $913,029,
were incurred for the six months ended June 30, 2001, compared to $1,296,927 for
the six months ended June 30, 2000. The decrease in the above noted expenses for
the  six  months  ended  June 30, 2001 compared to the six months ended June 30,
2000  results  primarily  from having renegotiated certain key telecommunication
agreements  and  receiving  service  level  agreement  credits  from  certain
telecommunication  providers.

     Selling,  general  and  administrative expenses were $1,345,999 for the six
months  ended June 30, 2001 compared to $2,411,617 for the six months ended June
30, 2000. The decrease in the above noted expenses for the six months ended June
30, 2001 compared to the six months ended June 30, 2000 results primarily from a
reduction  in  salaries  and  benefits and consolidation of the operation of the
Company's  ISP  businesses.

     The  Company  has accrued interest of $82,947 for the six months ended June
30,  2001,  compared  to  $2,003,895 for the six months ended June 30, 2000. The
interest  expense  is  in  respect  of promissory notes (the "Blue Heron Notes")
issued  by the Company in favor of Blue Heron Venture Fund, Ltd. ("Blue Heron"),
the  Company's  former principal creditor These notes in the aggregate principal
amount as at June 18, 2001 of $2,085,000 were unsecured, bore interest at 8% per
annum and were payable on demand. On June 18, 2001 at the request of Blue Heron,
these  notes were cancelled and on June 19, 2001 new promissory notes (the "Blue
Heron  Shareholder  Notes") in the aggregate principal amount of $2,319,788 were
issued to the shareholders of Blue Heron. The principal amount of the Blue Heron
Shareholder  Notes  is  comprised of the $2,085,000 principal amount of the Blue
Heron Notes and the $234,788 in interest due on the Blue Heron Notes at the time
of  cancellation. The Blue Heron Shareholder Notes are unsecured and are payable
on  demand.  $2,085,000  in principal amount of the Blue Heron Shareholder Notes
bear  interest  at 8% per annum. The balance of the Blue Heron Shareholder Notes
do  not  provide  for  the  payment  of  interest.  See  "Liquidity  and Capital
Resources"  below.

     The  Company  had  a net loss of $1,390,237, or $.06 per share, for the six
months  ended  June  30, 2001, compared to a net loss of $4,586,581, or $.22 per
share,  for the six months ended June 30, 2000. The decrease in net loss for the
six  months  ended June 30, 2001 was primarily a result of significant decreases
in  direct costs; selling, general and administrative expenses; amortization and
depreciation  of  the  assets  acquired  in  the  fiscal year 1999; and interest
expense.

Liquidity  and  Capital  Resources

     The accompanying financial statements have been prepared on a going concern
basis,  which  assumes  that the Company will continue in operation for at least
one year and will be able to realize its assets and discharge its liabilities in
the  normal  course  of  business.  The  Company incurred a net loss for the six
months  ended  June  30,  2001 of $1,390,237, compared to a net loss for the six
months  ended  June  30,  2000 of $4,586,581.  For the six months ended June 30,
2001, the Company had a working capital deficit of appromixately $3.4M, which is
primarily  due  to  the  Company's  use of current assets to acquire its ISP and
Software Products businesses, and professional fees. These factors indicate that
the  Company's  continuation as a going concern is dependent upon its ability to
obtain  adequate  financing.


<PAGE>
     The  Company  has  obtained  most  of its financing through Blue Heron. The
loans  were  made under agreements pursuant to which the Company could borrow up
to  $16,000,000  in unsecured loans from Blue Heron. The loans were evidenced by
the Company's Convertible Demand Notes (the "Blue Heron Demand Notes"). The Blue
Heron  Demand  Notes  bore  interest at 8% per annum, were payable on demand and
were  convertible  into  shares  of  the  Company's Common Stock at the lender's
option, in which case Blue Heron would have waived its right to be paid interest
under  the Blue Heron Demand Notes. On June 18, 2001 the Blue Heron Demand Notes
were  cancelled  and  subsequently replaced by the Blue Heron Shareholder Notes.
During  1999,  $4,000,000  of  outstanding  loans  were converted into 4,500,000
shares  of  the Company's Common Stock. On August 16, 1999, $1,000,000 aggregate
principal amount of Blue Heron Demand Notes were converted into 1,500,000 shares
of Common Stock, at a conversion price of $0.67 per share. On November 24, 1999,
an  aggregate  additional  principal  amount  of $3,000,000 of Blue Heron Demand
Notes  were  converted into an additional 3,000,000 shares of Common Stock, at a
conversion  price  of  $1.00  per  share.

     During  the  fiscal  year  ended December 31, 2000, the Company borrowed an
additional  $1,210,000  from  Blue  Heron, resulting in an aggregate outstanding
principal amount of the loans of $2,085,000 as of December 31, 2000. The Company
did  not  borrow any additional funds during the six months ended June 30, 2001.

     Effective  June 18, 2001 Blue Heron has withdrawn this credit facility, and
since  the  Blue  Heron  Shareholder  Notes are payable on demand, the Company's
ability  to  continue  operations  is dependent upon the willingness of the Blue
Heron  shareholders to forbear from demanding payment. The Company believes that
the  Blue  Heron  shareholders will continue to forbear payment of the loans for
the  immediately  foreseeable future, but they are under no obligation to do so.
Should the Blue Heron shareholders demand payment, the Company would be required
to obtain financing from other sources to satisfy its obligations or would be in
default  under  the loans. The Company does not believe that bank borrowings are
available  under  present  circumstances, and there can be no assurance that any
financing  could be obtained from other sources. Even if funding were available,
it  might be available only on terms which would not be favorable to the Company
or  which  management  would  not  find  acceptable.

     During  the  fiscal  year  ended December 31, 2000, the Company borrowed an
aggregate  of $125,000 from Pacific Gate Capital Corporation ("Pacific Gate"), a
corporation  owned  by  Kelly  Shane  Montalban,  a principal shareholder of the
Company,  of  which amount $25,000 was outstanding on June 30, 2001. These loans
bear  interest  at 8% per annum and are payable on demand. Since these loans are
payable  on  demand,  the  Company's ability to continue operations is dependent
upon  the  willingness  of  Pacific  Gate to forbear from demanding payment. The
Company believes that Pacific Gate will continue to forbear payment of the loans
for  the immediately foreseeable future, but it is under no obligation to do so.
Should  Pacific  Gate  demand  payment,  the Company would be required to obtain
financing  from  other sources to satisfy its obligations or would be in default
under the loans. The Company does not believe that bank borrowings are available
under  present  circumstances,  and there can be no assurance that any financing
could  be  obtained from other sources. Even if funding were available, it might
be  available only on terms which would not be favorable to the Company or which
management  would  not  find  acceptable.

     On April 11, 2001, the Company received a letter from Pacific Gate, stating
its  willingness  to renegotiate the terms of the Pacific Gate loans from demand
loans  to terms loans. The actual terms of any such renegotiation are subject to
agreement  between  the  Company and Pacific Gate, and no assurance can be given
that  the  parties  will  reach  agreement  on  the  new  terms of the loans. No
substantive  negotiations  have  commenced as of the date of filing this Report.

     The  Company's  cash position during the six months ended June 30, 2001 was
$102,161,  compared to $250,631 on December 31, 2000. This decrease is primarily
due  to  the  Company not borrowing additional funds during the six months ended
June  30,  2001.

     The  Company's net cash used in operating activities totaled $76,799 during
the  six  months ended June 30, 2001, compared to $857,719 during the six months
ended  June 30, 2000. This decrease is primarily due to the interest expense and
amortization  and  depreciation.


<PAGE>
     The  Company's net cash used in investing activities totaled $71,161 during
the  six  months ended June 30, 2001, compared to $640,577 during the six months
ended  June  30, 2000. This decrease is primarily due to the Company's is not as
aggressive  as  previous  years  in  acquisitions.

     The  Company did not have any proceeds from financing activities during the
six  months  ended June 30, 2001, compared to $1,333,589 of such proceeds during
the  six  months  ended  June  30,  2000.

                           PART II - OTHER INFORMATION

ITEM  1.     LEGAL  PROCEEDINGS

Canada  Post  Litigation

     On June 11, 1999, Canada Post Corporation ("Canada Post") filed a Statement
of  Claim  in the Federal Court of Canada (Court File No. T-1022-99) in which it
sought  injunctive  and unspecified monetary relief for the allegedly "improper"
use by the Company's subsidiary, ePost Innovations, Inc., ("ePost Innovations"),
of  certain  marks  and names which contain the component "post". On October 18,
1999,  ePost  Innovations  filed its Defense and Counterclaim. In a motion heard
November  24,  1999,  Canada  Post  Corporation  challenged certain parts of the
Counterclaim  and  the  Federal  Court  reserved  judgment.

     On  May  25,  1999,  ePost  Innovations  filed  a statement of Claim in the
British  Columbia  Court (Court File No. C992649) seeking a declaration that the
public  notice  of Canada Post's adoption and use of CYBERPOSTE and CYBERPOST on
November  18,  1998  and  December  9,  1998  respectively,  did  not affect the
Company's  use  of  CyPost  and  ePost Innovations as trademarks and trade-names
prior  to  said  dates.  ePost  Innovations  sought  summary judgment for such a
declaration and on September 14, 1999, the BC Court rejected summary judgment on
the  basis  that  no  right  of ePost Innovations was being infringed and that a
trial  of  the  issues  was  more  appropriate.

     On  June  20,  2001  ePost Innovations, Canada Post and the Company entered
into  a  Settlement  and  Release  Agreement  effective  as of May 30, 2001 (the
"Settlement  Agreement").  Pursuant  to  the  Settlement  Agreement, the parties
executed  mutual  releases and discontinued their respective claims. The release
by  Canada  Post  to ePost Innovations was made subject to the Company and ePost
Innovations ceasing all use of the trade name EPOST within Canada within 90 days
of  the  effective  date of the Settlement Agreement and transferring all right,
title  and  interest they had with respect to the trade name and trademark EPOST
and  any  goodwill  associated  therewith  to  Canada Post upon execution of the
Settlement  Agreement.  The Company has yet to change the name of its subsidiary
but  intends  to  do  so  within  the  time  frame  set  forth in the Settlement
Agreement.  All other terms of the Settlement Agreement have been complied with.

     Berry  Litigation

     On  March  31,  2000,  the  Company  commenced suit in the Supreme Court of
British  Columbia,  Action  #S001822,  Vancouver Registry against Tia Berry (the
"Tia  Action"),  the  wife  of  Steven Berry ("Berry"), the former President and
Chief  Executive  Officer  of the Company. In the Tia Action, the Company claims
$42,516  (CDN)  from  Tia  Berry on account of monies paid to her by the Company
which  she  was  not  entitled  to  receive.  Tia Berry has filed a Statement of
Defense  in  the  Tia  Action  in  which she alleges that the payments which she
received  from the Company were to reimburse her for business expenses which she
had  charged  to her credit cards on behalf of Berry. The Tia Action has not yet
been  set  for  trial.

     On  April  4,  2000,  Berry commenced an action in the Supreme Court of the
State  of  New  York,  County  of  New York (Index No. 601448/2000), against the
Company  and  Continental  Stock  Transfer & Trust Company ("Continental"), (the
"New  York  Action").  In the New York Action, Berry claimed damages for alleged
conversion,  fraud,  breach of contract and breach of fiduciary duty all arising
from  the alleged wrongful Stop Transfer Order which the Company placed relating
to  75,000  shares  of the Company's Common Stock registered in Berry's name and
the  Company's  cancellation  of  a  further  600,000  shares  (the  "Contingent
Shares").  The  complaint  in  the  New  York Action claims damages in excess of
$3,000,000  with  the  precise  amount  to  be  determined  at  trial.


<PAGE>
     Berry  received  the 600,000 Contingent Shares upon condition that he would
remain  in  the  Company's  employ  as  Chief Executive Officer for at least two
years.  Berry commenced his employment with the Company on  January 4, 1999, and
resigned his employment with the Company on January 17, 2000.  Following Berry's
resignation,  the  Company  attempted  to have a Stop Transfer Order issued with
respect  to  the 75,000 shares registered in Berry's name and cancel the 600,000
Contingent  Shares.  The  Stop  Transfer  Order  was  not  effective  and  Berry
subsequently  sold  the  75,000  shares.

     On  May 19, 2000 CyPost and ePost Innovations commenced suit in the Supreme
Court  of  British  Columbia, Action #S002798, Vancouver Registry, against Berry
and  his wife, Tia Berry (the "BC Action").  In the BC Action, the Company seeks
an  order directing Berry to return the 600,000 Contingent Shares to the Company
for  cancellation  or  an  order entitling the Company to cancel the same on the
basis  that  Berry  did  not  fulfill  the  employment conditions which were the
condition  precedent  to  his  becoming  the  beneficial owner of the Contingent
Shares.

     In  the  BC Action, the Company also claims at least Cdn$800,000 from Berry
on  account  of breach of fiduciary duty, negligence, breach of statutory duties
and  breach  of  contract arising from Berry's failure to properly carry out his
employment  responsibilities.  In  the  BC  Action,  the  Company  also  claims
Cdn$34,013  from  Berry  and  Tia  Berry on account of conspiracy to defraud and
injure the Company and ePost Innovations by causing certain personal expenses to
be  paid  by  the  Company  rather  than by Berry and Tia Berry personally.  The
Company  also  claims punitive and exemplary damages from Berry and Tia Berry in
the  BC  Action.

     On  May  25,  2000,  the  Company moved in the New York Action for an order
dismissing  the  action  against the Company for lack of jurisdiction or, in the
alternative,  on  the  basis of forum non conveniens.  On September 5, 2000, the
court  dismissed the New York Action on forum non conveniens grounds, subject to
the  Company  making  certain  stipulations  in  the  New  York  Action.  Those
stipulations  have  been  made  and  the appeal period in the Ne York Action has
expired  without Berry or any other party appealing the September 5, 2000 order.

     The  issues  raised by Berry and the Company in the New York Action will be
litigated  in  the  BC  Action  together  with  the further issues raised by the
Company in the BC Action.  The Company feels that Berry's claims in the New York
Action  were  without merit and that the Company will be successful in obtaining
an  order  declaring  that  Berry's  600,000  Contingent Shares be cancelled and
further  entitling  the  Company  to  substantial  damages.  The  Company  will
vigorously  pursue  its  position  in  all  respects.

     On  December  21,  2000,  Berry and Tia Berry commenced suit in the Supreme
Court  of British Columbia, Action #S006790, Vancouver Registry, against CyPost,
ePost  Innovations, Kelly Shane Montalban, J. Thomas W. Johnston, Carl Whitehead
and  Robert  Sendoh (the "Berry Action").  Statements of Defense have been filed
on  behalf  of  the  Company  and  the  other  defendants.

     The  Plaintiffs  in  the  Berry  Action  allege that the Tia Action, the BC
Action,  and  the  action  by  Kelly  Shane  Montalban (Supreme Court of British
Columbia,  Action  #S002147,  Vancouver  Registry),  against  Berry for specific
performance  of  an  option  agreement  (the  "Montalban Action"), collectively,
amount to an abuse of process, malicious prosecution, unlawful interference with
the  Plaintiffs'  economic  rights,  or  were  commenced  pursuant  to  a  civil
conspiracy  to  injure  the  Plaintiffs.

     In  the  Berry  Action,  the  Plaintiffs  seek  a declaration that Berry is
entitled  to  the  600,000 Contingent Shares and claim unspecified damages which
are estimated at Cdn$2,000,000 based on the Statement of Claim.  They also claim
punitive  or  aggravated  damages  and  costs.  The  Company  believes  that the
allegations  in  the  Berry Action are without merit and they will be vigorously
defended.

     It is expected that the Tia Action, the BC Action and the Berry Action will
be  consolidated  for  the  purposes  of  trial  due  to the fact that there are
numerous  issues  of fact and law which are common to all of these actions.  The
Company  believes  that  trial  will  likely  take  place  in  the fall of 2002.


<PAGE>
     A  loss  by  the Company of the claim against it for monetary damages would
have  a  material  adverse effect on the Company's future results of operations,
financial  condition and liquidity; however, the Company does not expect to lose
this  action  and  believes  additionally  that  it  would  be able to negotiate
reasonable  payment  terms  should  it  lose  this  suit.

Shane  Montalban  Litigation

     On  June  15, 2001, the Company filed a Summons and Complaint against Kelly
Shane  Montalban,  a  principal  shareholder  of the Company, in the US District
Court  for the Southern District of New York alleging liability by Mr. Montalban
to the Company for violations of Section 16(b) of the Securities Exchange Act of
1934,  as  amended.  The  suit seeks recovery of short swing profits realized by
Mr.  Montalban  and  affiliated persons during the period September 1999 through
June  15,  2001  as  the  result of certain purchases and sales of the Company's
common  stock  by  Mr.  Montalban  and  such  affiliated  persons.

     The  Company  and  Mr.  Montalban  are  presently  engaged  in  settlement
discussions to resolve the litigation.  No assurance can be given, however, that
the  parties  will  reach  a  settlement.

ITEM  2.  CHANGES  IN  SECURITIES

     On  or about May 15, 2001 the Company issued 7,500 shares of its restricted
common  stock  to Jeff Hoag of Celex Agency for services rendered.  These shares
were issued pursuant to the exemption from registration provided by Sec. 4(2) of
the  Securities  Act of 1933, as amended, as this was a transaction by an issuer
not  involving  a  public  offering.

ITEM  5.  OTHER  INFORMATION

     Effective  June  8,  2001, Robert Adams resigned as the Company's president
and chief operating officer and as a director to focus his full attention to the
Company's six ISP's with the goal of building the subscriber base and increasing
revenues.  Effective  June 15, 2001, Angela Belcourt was appointed as a director
of the Company to fill the vacancy created by Mr. Adams' resignation.  Effective
June  22,  2001,  Ms.  Belcourt  was  appointed  as  the  Company's  president,
secretary/treasurer  and  principal  financial officer.  Ms. Belcourt joined the
Company  in  2000 serving as General Manager, Asia Pacific in which position she
managed  the  Company's Japanese subsidiary Playa Corporation.  She is an active
member  of  the  Canada  Japan  Society  of  British  Columbia and has extensive
associations  with  the  Japanese  business  community.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

     (a)     Exhibits

             None

     (b)     Reports  on  Form  8-K

             None.



                                    SIGNATURE

     In  accordance  with  the  requirements of the Exchange Act, the registrant
caused this Report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                             CYPOST  CORPORATION


DATE:  August 14, 2001                       By:   /s/  Angela  Belcourt
                                                 -------------------------------
                                                   Angela  Belcourt
                                                   President  and  Treasurer
                                                   (Principal Financial Officer)


<PAGE>