| U.S. SECURITIES AND EXCHANGE      COMMISSIONWashington,D.C. |
|-------------------------------------------------------------|

| Form 10-Q |
|-----------|

| (Mark one) |
|------------|

| [ X ] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 for the quarterly period ended March 31,  2008 |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------|

| OR |
|----|

| [ ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 |
|-----|-----------------------------------------------------------------------------------------------|

| Commission File No.  33-19961 |
|-------------------------------|

|   |
|--------|

|   | Diamond I, Inc.                                             |   |
|--------|-------------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in      its charter) |   |

|   |
|--------|

|   | DELAWARE |   | 01-0623010 |   |
|--------|----------|--------|------------|--------|

|   | (State or Other Jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |   |
|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|

|   |
|--------|

|   | 8733 Siegen Lane, Suite 309, Baton Rouge,      LA 70810 |   |
|--------|---------------------------------------------------------|--------|

|   | (Address of principal executive offices,      including zip code) |   |
|--------|-------------------------------------------------------------------|--------|

|   | (225) 341-4004 |   |
|--------|----------------|--------|

|   | (Issuer’s telephone number, including area      code) |   |
|--------|-------------------------------------------------------------|--------|

|   |
|--------|

| Indicate by check mark whether the registrant (1) has filed all      reports required to be filed by Section 13 or 15(d) of the Securities      Exchange Act of 1934 during the preceding 12 months (or for such shorter      period that the registrant was required to file such reports), and (2) has      been subject to such filing requirements for the past 90 days. Yes [ X ]      No [ ] |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a large accelerated      filer, an accelerated filer, a non-accelerated filer, or a smaller      reporting company. See the definitions of "large accelerated filer,"      "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the      Exchange Act. (Check one): |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Large accelerated filer [ ] |   | Accelerated filer [ ] |
|-----------------------------|--------|-----------------------|

| Non-accelerated filer [ ] (Do not check if a smaller reporting      company) |   | Smaller reporting company [ X ] |
|------------------------------------------------------------------------------|--------|---------------------------------|

| Indicate by check mark whether the registrant is a shell company (as      defined in Rule 12b-2 of the Exchange Act).Yes [ ] No [ X ] |
|---------------------------------------------------------------------------------------------------------------------------------------|

| As of May 16, 2008, there were 352,016,707 shares of the issuer’s      common stock outstanding. |
|--------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| <PAGE> |
|         |

| PART I - FINANCIAL  INFORMATION |
|---------------------------------|

| Item 1. Financial Statements |
|------------------------------|

| INDEX TO FINANCIAL  STATEMENTS |
|--------------------------------|

|   | Page |
|--------|------|

| Diamond I, Inc. |
|-----------------|

| Condensed Consolidated Balance Sheets as of March 31, 2008      (unaudited), and December 31, 2007 (audited) | 3 |
|--------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Operations for the Three Months      Ended March 31, 2008 (unaudited) and 2007 (unaudited), and the Period from      June 17, 2003 (Inception), Through March 31, 2007 (unaudited) | 4 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Statement of Stockholders’ Equity for the Three Months Ended March      31, 2008 (unaudited) | 5 |
|----------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Cash Flows for the Three Months      Ended March 31, 2008 (unaudited) and 2007 (unaudited), and the Period from      June 17, 2003 (Inception), Through March 31, 2007 (unaudited) | 6 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Notes to Condensed Consolidated Financial Statements | 8 |
|------------------------------------------------------|---|

|   |
|--------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED BALANCE    SHEETS |   |
|--------|------------------------------------------|--------|

|   | March 31, 2008, and December 31,    2007 |   |
|--------|------------------------------------------|--------|

|   | 3/31/08unaudited |   | 12/31/07 |
|--------|------------------|--------|----------|

| ASSETS |
|--------|

| Current assets |
|----------------|

|   | Cash | $70 |   | $294 |
|--------|------|-----|--------|------|

|   | Total current assets | 70 |   | 294 |
|--------|----------------------|----|--------|-----|

| Equipment - net of accumulated depreciation of $102,115 and $100,911,      respectively | --- |   | 1,204 |
|-----------------------------------------------------------------------------------------|-----|--------|-------|

|   | Total assets | $70 |   | $1,498 |
|--------|--------------|-----|--------|--------|

| LIABILITIES AND STOCKHOLDERS’ EQUITY(DEFICIT) |
|-----------------------------------------------------|

| Current liabilities |
|---------------------|

|   | Accounts payable | $4,500 |   | $4,500 |
|--------|------------------|--------|--------|--------|

|   | Accrued expenses | 368,032 |   | 293,032 |
|--------|------------------|---------|--------|---------|

|   | Short-term payable - third party | 30,400 |   | 30,400 |
|--------|----------------------------------|--------|--------|--------|

|   | Short-term note payable - related party | 41,640 |   | 41,640 |
|--------|-----------------------------------------|--------|--------|--------|

|   | Accrued interest - shareholders | 8,419 |   | 7,582 |
|--------|---------------------------------|-------|--------|-------|

|   | Dividend payable on preferred stock | 120,000 |   | 112,500 |
|--------|-------------------------------------|---------|--------|---------|

|   | Total current liabilities | 572,991 |   | 489,654 |
|--------|---------------------------|---------|--------|---------|

|   | Commitments |   |   |   |
|--------|-------------|--------|--------|--------|

| Stockholders’ equity (deficit) |
|--------------------------------------|

|   | Series A Convertible Preferred Stock, $.001 par value, 50,000,000      shares authorized, 500,000 Series A shares issued and outstanding | 500 |   | 500 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|-----|--------|-----|

|   | Common stock, $.001 par value; 700,000,000 shares authorized,      342,016,707 and 342,016,707 shares issued and outstanding | 342,017 |   | 342,017 |
|--------|------------------------------------------------------------------------------------------------------------------------------|---------|--------|---------|

|   | Subscription receivable | (128,000) |   | (128,000) |
|--------|-------------------------|-----------|--------|-----------|

|   | Additional paid-in capital | 29,865,658 |   | 29,873,158 |
|--------|----------------------------|------------|--------|------------|

|   | Deficit accumulated during the development stage | (30,653,096) |   | (30,575,831) |
|--------|--------------------------------------------------|--------------|--------|--------------|

|   | Total stockholders’ (deficit) | (572,921) |   | (488,156) |
|--------|-------------------------------------|-----------|--------|-----------|

|   | Total liabilities and stockholders’ equity (deficit) | $70 |   | $1,498 |
|--------|------------------------------------------------------------|-----|--------|--------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   |
|--------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF      OPERATIONS |   |
|--------|------------------------------------------------------|--------|

|   | For the Three Months Ended March 31, 2008      and 2007, and the Period from June 17, 2003 (Inception), Through March 31,      2008 |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Three Months Ended March 31, |   |
|--------|------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Inceptionthrough3/31/2008(unaudited) |   |   |   |   |
|--------|-------------------|--------|-----------------|--------|--------------------------------------|--------|--------|--------|--------|

| Revenues | $--- |   | $--- |   | $10,784 |   |   |   |   |
|----------|------|--------|------|--------|---------|--------|--------|--------|--------|

| Internet access costs | --- |   | --- |   | (32,850) |   |   |   |   |
|-----------------------|-----|--------|-----|--------|----------|--------|--------|--------|--------|

| Gross profit (loss) | --- |   | --- |   | (22,066) |   |   |   |   |
|---------------------|-----|--------|-----|--------|----------|--------|--------|--------|--------|

| OPERATING EXPENSES |   |   |   |   |   |   |   |   |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Professional and consulting fees | --- |   | 202,100 |   | 4,183,672 |   |   |   |   |
|--------|----------------------------------|-----|--------|---------|--------|-----------|--------|--------|--------|--------|

|   | Compensation expense | 75,000 |   | 78,000 |   | 5,257,776 |   |   |   |   |
|--------|----------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|

|   | Depreciation and amortization | 1,204 |   | 43,475 |   | 298,680 |   |   |   |   |
|--------|-------------------------------|-------|--------|--------|--------|---------|--------|--------|--------|--------|

|   | Impairment loss | --- |   | --- |   | 17,473,096 |   |   |   |   |
|--------|-----------------|-----|--------|-----|--------|------------|--------|--------|--------|--------|

|   | General and administrative (excluding professional and consulting      fees, compensation expense, depreciation and impairment loss) | 224 |   | 213 |   | 3,387,529 |   |   |   |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|-----|--------|-----|--------|-----------|--------|--------|--------|--------|

|   | Total operating expenses | 76,428 |   | 323,788 |   | 30,600,753 |   |   |   |   |
|--------|--------------------------|--------|--------|---------|--------|------------|--------|--------|--------|--------|

| LOSS FROM OPERATIONS | (76,428) |   | (323,788) |   | (30,622,819) |   |   |   |   |
|----------------------|----------|--------|-----------|--------|--------------|--------|--------|--------|--------|

| OTHER INCOME (EXPENSE) | (837) |   | (837) |   | (30,277) |   |   |   |   |
|------------------------|-------|--------|-------|--------|----------|--------|--------|--------|--------|

| NET LOSS | $(77,265) |   | $(324,625) |   | $(30,653,096) |   |   |   |   |
|----------|-----------|--------|------------|--------|---------------|--------|--------|--------|--------|

| Deemed dividend on preferred stock | $--- |   | $(---) |   | $(165,442) |   |   |   |   |
|------------------------------------|------|--------|--------|--------|------------|--------|--------|--------|--------|

| Cumulative preferred dividends | (7,500) |   | (7,500) |   | (120,000) |   |   |   |   |
|--------------------------------|---------|--------|---------|--------|-----------|--------|--------|--------|--------|

| Net Loss Charged to Common Shareholders | $(84,765) |   | $(332,125) |   | $(30,938,538) |   |   |   |   |
|-----------------------------------------|-----------|--------|------------|--------|---------------|--------|--------|--------|--------|

| Net loss applicable to common shareholders |   |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted | $(0.00) |   | $(0.00) |   |   |   |   |   |   |
|--------|-------------------|---------|--------|---------|--------|--------|--------|--------|--------|--------|

| Weighted average number of shares outstanding |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted | 342,016,707 |   | 289,677,312 |   |   |   |   |   |   |
|--------|-------------------|-------------|--------|-------------|--------|--------|--------|--------|--------|--------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   |
|--------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENT OFSTOCKHOLDERS’ EQUITY (DEFICIT) |   |
|--------|-------------------------------------------------------------------------|--------|

|   | For the Three Months Ended March 31, 2008      (unaudited) |   |
|--------|------------------------------------------------------------|--------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulatedDuring theDevelopmentStage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------------|--------|------------------------|--------|----------------------------------------------|--------|-------|

| Balance, December 31, 2007 | 500,000 |   | $500 |   | 342,016,707 |   | $342,017 |   | $29,873,158 |   | $(128,000) |   | $(30,575,831) |   | $(488,156) |
|----------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

| Dividend payable on preferred stock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |
|-------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (77,265) |   | (77,265) |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|----------|--------|----------|

| Balance, March 31, 2008 | 500,000 |   | $500 |   | 342,016,707 |   | $342,017 |   | $29,865,658 |   | $(128,000) |   | $(30,653,096) |   | $(572,921) |
|-------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   |
|--------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF CASH      FLOWS |   |
|--------|------------------------------------------------------|--------|

|   | For the Three Months Ended March 31, 2008      and 2007, and the Period from June 17, 2003 (Inception), Through March 31,      2008 |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Three Months Ended March 31, |   |
|--------|------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Inception Through 3/31/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|--------------------------------------|

| CASH FLOWS FROM OPERATING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

| Net loss | $(77,265) |   | $(324,625) |   | $(30,653,096) |
|----------|-----------|--------|------------|--------|---------------|

|   | Adjustments to reconcile net loss to cash used foroperating activities: |   |   |   |   |   |
|--------|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Depreciation and amortization | 1,204 |   | 43,475 |   | 298,680 |
|--------|-------------------------------|-------|--------|--------|--------|---------|

|   | Stock issued for services and bonuses | --- |   | 191,000 |   | 8,276,698 |
|--------|---------------------------------------|-----|--------|---------|--------|-----------|

|   | Impairment loss and write-down of assets | --- |   | --- |   | 17,473,096 |
|--------|------------------------------------------|-----|--------|-----|--------|------------|

|   | Warrant expense | --- |   | --- |   | 2,200,389 |
|--------|-----------------|-----|--------|-----|--------|-----------|

|   | Donated capital, officers’ salaries | --- |   | --- |   | 279,808 |
|--------|-------------------------------------------|-----|--------|-----|--------|---------|

|   | Loss on debt extinguishment | --- |   | --- |   | 23,000 |
|--------|-----------------------------|-----|--------|-----|--------|--------|

|   | Changes in assets and liabilities: |   |   |   |   |   |
|--------|------------------------------------|--------|--------|--------|--------|--------|

|   | Accrued expenses | 75,000 |   | 75,837 |   | 368,032 |
|--------|------------------|--------|--------|--------|--------|---------|

|   | Accrued interest | 837 |   | --- |   | 8,419 |
|--------|------------------|-----|--------|-----|--------|-------|

|   | Accounts payable | --- |   | --- |   | 4,500 |
|--------|------------------|-----|--------|-----|--------|-------|

| CASH FLOWS USED IN OPERATING ACTIVITIES | (224) |   | (14,313) |   | (1,720,474) |
|-----------------------------------------|-------|--------|----------|--------|-------------|

|   |
|--------|

| CASH FLOWS FROM INVESTING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Purchase of equipment | --- |   | --- |   | (102,116) |
|--------|-----------------------|-----|--------|-----|--------|-----------|

| CASH FLOWS USED IN INVESTING ACTIVITIES | --- |   | --- |   | (102,116) |
|-----------------------------------------|-----|--------|-----|--------|-----------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   |
|--------|

|   | Three Months Ended March 31, |   |
|--------|------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Inception Through 3/31/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|--------------------------------------|

| CASH FLOWS FROM FINANCING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Repayment of related party advances | (14,000) |   | --- |   | (73,000) |
|--------|-------------------------------------|----------|--------|-----|--------|----------|

|   | Proceeds from related party advances | 2,000 |   | --- |   | 102,640 |
|--------|--------------------------------------|-------|--------|-----|--------|---------|

|   | Sale of preferred stock and warrants | --- |   | --- |   | 500,000 |
|--------|--------------------------------------|-----|--------|-----|--------|---------|

|   | Proceeds from exercise of warrants | --- |   | --- |   | 742,400 |
|--------|------------------------------------|-----|--------|-----|--------|---------|

|   | Shareholder contributions to capital | --- |   | 2,220 |   | 5,220 |
|--------|--------------------------------------|-----|--------|-------|--------|-------|

|   | Contract party contributions to capital | --- |   | 25,200 |   | --- |
|--------|-----------------------------------------|-----|--------|--------|--------|-----|

|   | Proceeds from short term payable | 12,000 |   | --- |   | 67,400 |
|--------|----------------------------------|--------|--------|-----|--------|--------|

|   | Sale of common stock, net | --- |   | --- |   | 478,000 |
|--------|---------------------------|-----|--------|-----|--------|---------|

| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | --- |   | 27,420 |   | 1,822,660 |
|---------------------------------------------|-----|--------|--------|--------|-----------|

|   |
|--------|

| NET CHANGE IN CASH | 216 |   | 13,107 |   | 70 |
|--------------------|-----|--------|--------|--------|----|

| Cash, beginning of period | 294 |   | 35 |   | --- |
|---------------------------|-----|--------|----|--------|-----|

| Cash, end of period | $78 |   | $13,142 |   | $70 |
|---------------------|-----|--------|---------|--------|-----|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   |
|--------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | NOTES TO CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS |   |
|--------|-----------------------------------------------------------|--------|

|   | March 31, 2008(unaudited) |   |
|--------|---------------------------|--------|

|   |
|--------|

| Note 1. Basis of Presentation |
|-------------------------------|

| The condensed consolidated balance sheet as of March 31, 2008, the      statement of revenues and expenses for the three months ended March 31,      2008 and 2007, and the period from inception (June 17, 2003) through March      31, 2008, the statement of stockholders’ equity (deficit) for the three      months ended March 31, 2008, and the statement of cash flows for the three      months ended March 31, 2008 and 2007, and the period from inception (June      17, 2003) through March 31, 2008, have been prepared by Diamond I, Inc.      (together with its subsidiaries, “Diamond I”) without audit. In the      opinion of management, all adjustments necessary to present fairly the      financial position, results of operations and cash flows of Diamond I at      March 31, 2008, and for all other periods presented, have been made. The      results of operations for interim periods are not necessarily indicative      of the results to be expected for the full year. Certain information and      disclosures normally included in financial statements prepared in      accordance with generally accepted accounting principles have been omitted      in accordance with the Securities and Exchange Commission’s rules for      interim reporting. Accordingly, these financial statements should be read      in conjunction with the financial statements and accompanying notes      thereto in Diamond I’s Annual Report on Form 10-KSB for the fiscal year      ended December 31, 2007. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2. Going Concern |
|-----------------------|

| Diamond I has incurred losses totaling $30,653,096 through March 31,      2008, and had limited working capital at March 31, 2008. Because of these      conditions, Diamond I will require additional working capital to continue      operations and develop the business. Diamond I intends to raise additional      working capital either through private placements, public offerings and/or      bank financing. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There are no assurances that Diamond I will be able to achieve a      level of revenues adequate to generate sufficient cash flow from      operations or obtain additional financing through private placements,      public offerings and/or bank financing necessary to support Diamond I’s      working capital requirements. To the extent that funds generated from any      private placements, public offerings and/or bank financing are      insufficient, Diamond I will have to raise additional working capital. No      assurance can be given that additional financing will be available, or if      available, will be on terms acceptable to Diamond I. If adequate working      capital is not available Diamond I may not continue its operations or      execute its business plan. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| These conditions raise substantial doubt about Diamond I's ability to      continue as a going concern. The financial statements do not include any      adjustments relating to the recoverability and classification of asset      carrying amounts or the amount and classification of liabilities that      might be necessary should Diamond I be unable to continue as a going      concern. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 2. Management’s Discussion and Analysis of Financial Condition      and Results of Operations. |
|-----------------------------------------------------------------------------------------------------------|

| General |
|---------|

| References to “us”, “we” and “our” include our subsidiary, Diamond I      Technology, Inc., unless otherwiseindicated. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Certain statements contained herein are not based on historical facts      and are "forward-looking statements" within the meaning of Section 21A of      the Securities Exchange Act of 1934. Forward-looking statements which are      based on various assumptions (some of which are beyond the Company's      control), may be identified by reference to a future period or periods, or      by the use of forward-looking terminology, such as "may," "will,"      "believe," "expect," "estimate," "anticipate," "continue," or similar      terms or variations on those terms, or the negative of these terms. Actual      results could differ materially from those set forth in forward-looking      statements, due to a variety of factors, including, but not limited to,      events that deprive us of the services of our president and largest      shareholder, David Loflin, whether we are able to obtain adequate capital      with which to pursue our full business plan; and other uncertainties, all      of which are difficult to predict and many of which are beyond our      control. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We do not undertake, and specifically disclaims any obligation, to      publicly release the result of any revisions which may be made to any      forward-looking statements to reflect the occurrence of anticipated or      unanticipated events or circumstances after the date of such      statements. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Online Casinos. During the second quarter of 2008, We expect to begin      to generate revenues from IslandBlueCasino.net and VegasBetLive.com,      through our click-through advertising programs. Access to capital would      permit us to expand our cadre of online casinos at a greater  rate. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We have launched IslandBlueCasino.net and VegasBetLive.com, and      intend to launch additional online gaming web sites, as a means to      creating a revenue stream for our company, much the same way that      traditional magazine publishers generate revenues from their businesses:      advertising. As traditional magazine publishers seek ever-increasing      subscription rates upon which to base advertising rates, we seek to      establish an ever-increasing number of Internet visitors, or “traffic”, to      each of our gaming web pages, thereby increasing mathematically our      opportunities to generate revenues through “click-through” advertising and      e-commerce commissions, through the use of click-through advertising      programs, including Google Adsense(TM), Commission Junction, AdBright and      LinkShare. To date, this strategy has proven to be successful, as we have      begun to derive click-through advertising revenues from our online      casinos. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Oil and Gas. We have not generated any revenues from this line of      business. |
|----------------------------------------------------------------------------------|

| In January 2008, following a period during which our management had      received numerous business propositions from oil and gas industry      participants, our board of directors determined to diversify our business      first into the oil and gas industry. To that end, in January 2008, we      entered into an agreement with a private Texas company to acquire six      producing oil and gas properties. It was our intention to complete the      acquisition of the first of these properties by the end of the first      quarter of 2008. However, due to circumstances beyond our control, we have      not yet completed the acquisition of the first property. We believe that      we will be able to do so, during the second quarter of  2008. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We are pursuing a strategy of acquiring near-term oil and gas      production without sacrificing our long-term success. To accomplish this      objective we are focused on: acquiring and, where appropriate, developing      oil and gas production, including secondary recovery operations; lease      acquisitions in areas of established production, thereby achieving stable,      predictable production rates; and developing and maintaining a low-risk      property portfolio through diversified oil and gas activities. Over time,      we intend to focus our efforts on the development of complete energy      solutions, through the development of a vertically integrated company. We      believe our strategy will result in our being largely insulated from      energy market fluctuations, while participating in one of the most      profitable industries in the world. We cannot make any assurances that we      will be successful in establishing our oil and gas operations or that, if      established, our oil and gas operations will ever earn a  profit. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Wireless Gaming. We have not generated any revenues from this line of      business. |
|--------------------------------------------------------------------------------------|

| During 2007, we completed the development of our GS3(TM)      (third-generation) wireless hand-held gaming unit, the hand-held component      of our WifiCasino(TM) wireless gaming system. However, we were unable to      make any significant progress in commercially exploiting this product, due      our inability to obtain needed capital. Unless and until we obtain      approximately $200,000, we will be unable to achieve significant progress      in exploiting our WifiCasino product. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies |
|------------------------------|

| While we believe that the factors considered provide a meaningful      basis for the accounting policies applied in the preparation of the      consolidated financial statements, we cannot guarantee that our estimates      and assumptions will be accurate. If such estimates and assumptions prove      to be inaccurate, we may be required to make adjustments to these      estimates in future periods. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Revenue Recognition. We charge our customers service fees for      Internet access and recognize the revenue in the month the services are      provided. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Litigation and Tax Assessments. Should we become involved in      lawsuits, we intend to assess the likelihood of any adverse judgments or      outcomes of any of these matters as well as the potential range of      probable losses. A determination of the amount of accrual required, if      any, for these contingencies will be made after careful analysis of each      matter. The required accrual may change from time to time, due to new      developments in any matter or changes in approach (such as a change in      settlement strategy) in dealing with thesematters. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, in the future, we may become engaged in various tax      audits by federal and state governmental authorities incidental to our      business activities. We anticipate that we will record reserves for any      estimated probable losses for any suchproceeding. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock-Based Compensation. We account for stock-based compensation      based on the provisions of Statement of Financial Accounting Standards No.      123. In December 2004, the Financial Accounting Standards Board issued      Statement of Financial Accounting Standards No. 123 (Revised 2004),      Share-Based Payment, (FAS-123R). This statement replaces FAS-123,      Accounting for Stock-Based Compensation, supersedes APB Opinion No. 25,      Accounting for Stock Issued to Employees, and amends FAS-95, Statement of      Cash Flows. FAS-123R requires companies to apply a fair-value-based      measurement method in accounting for share-based payment transactions with      employees and to record compensation cost for all stock awards granted      after the required effective date and for awards modified, repurchased or      cancelled after that date. The scope of FAS-123R encompasses a wide range      of share-based compensation arrangements, including share options,      restricted share plans, performance-based awards, share appreciation      rights and employee share purchase plans. FAS-123R was effective for us on      January 1, 2006. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| New Accounting Pronouncements. In September 2006, the Financial      Accounting Standards Board (“FASB”) issued Statement of Financial      Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS      157”). SFAS 157 defines fair value, establishes a framework for measuring      fair value in accordance with generally accepted accounting principles,      and expands disclosures about fair value measurements. SFAS 157 is      effective January 1, 2008. We do not believe this statement will adversely      impact our financial statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In February 2007, the FASB issued SFAS No. 159, The Fair Value Option      for Financial Assets and Financial Liabilities, which permits entities to      choose to measure many financial instruments and certain other items at      fair value. The objective is to improve financial reporting by providing      entities with the opportunity to mitigate volatility in reported earnings      caused by measuring related assets and liabilities differently without      having to apply complex hedge accounting provisions. SFAS No. 159 applies      to all entities and is effective for fiscal years beginning after November      15, 2007. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In December 2007, the FASB issued SFAS No. 141 (revised 2007),      “Business Combinations” (“SFAS No. 141R”), which establishes principles      and requirements for how the acquirer shall recognize and measure in its      financial statements the identifiable assets acquired, liabilities      assumed, any noncontrolling interest in the acquiree and goodwill acquired      in a business combination. SFAS No. 141(R) is effective for business      combinations for which the acquisition date is on or after the beginning      of the first annual reporting period beginning on or after December 15,      2008. The Company is currently assessing the potential impact that the      adoption of SFAS No. 141(R) will have on its financial position and      results of operations. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Results of Operations - First Quarter 2008 vs. First Quarter      2007 |
|------------------------------------------------------------------------|

| Revenues. We generated no revenues during the First Quarter 2008 from      our Internet click-through advertising program. During the second quarter      of 2008, we expect to begin to generate monthly revenues from this      program. We did not have any revenue during the First Quarter    2007. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Should we acquire one or more oil and gas properties, it is expected      that we would derive revenues from such property. However, we must obtain      capital with which to many any such acquisition, of which there is no      assurance. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Expenses. Our operating expenses during the First Quarter 2008 were      $76,428 compared to $323,788 for the First Quarter 2007. Our non-cash      operating expenses, which include stock issued for services, accrued      salaries and depreciation and amortization, totalled $76,204 for the First      Quarter 2008 compared to $323,575 for the First Quarter  2007. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Until we obtain operating capital, it can be expected that we will      issue shares of our common stock to third-parties in payment of services      rendered on our behalf. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Financial Condition |
|---------------------|

| We have incurred losses from inception of $30,653,088 and we have      lacked adequate capital with which to accomplish our business objectives.      At March 31, 2008, we had a working capital deficit of $572,921 and we      remain substantially illiquid. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our Capital Needs |
|-------------------|

| We believe that our current level of operations can be maintained for      the next twelve months. We anticipate our capital needs will be met      through the sale of shares for cash, exercise of options and issuance of      shares for services. However, to achieve our business objectives, we must      obtain at least $500,000. To date, we have not received a commitment for      capital in any amount and we cannot assure you that we will be able to      obtain any capital. Should we fail to obtain such financing, our plan of      business would likely be unsuccessful and we may be forced to cease      operations. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures |
|----------------------|

| During the First Quarter 2008 and the First Quarter 2007, we made no      our capital expenditures. |
|-----------------------------------------------------------------------------------------------------|

| Item 3. Quantitative and Qualitative Disclosures About Market      Risk. |
|--------------------------------------------------------------------------|

| Not applicable. |
|-----------------|

| Item 4T. Controls and Procedures. |
|-----------------------------------|

| Evaluation of Controls and Procedures |
|---------------------------------------|

| As of March 31, 2008, an evaluation was performed by our President      and Acting Chief Financial Officer of the effectiveness of the design and      operation of our disclosure controls and procedures. Based on that      evaluation, our management, including our President and Acting Chief      Financial Officer, concluded that our disclosure controls and procedures      were not effective as of March 31, 2008. Our evaluation identified      deficiencies related to the accuracy and completeness of our accounting      records and disclosures resulting in substantial adjustments identified by      our independent auditors. These deficiencies are due to the limited      resources currently available to the Company. Management is making efforts      to utilize its resources more effectively to eliminate these deficiencies      until the Company is able to obtain sufficient funds for business      development, including improvements in internal controls and procedures.      There have been no significant changes in our internal controls or in      other factors that could significantly affect internal controls subsequent      to March 31, 2008. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Management’s Assessment of Internal Controls Over Financial      Reporting |
|----------------------------------------------------------------------------------|

| Our management is responsible for establishing and maintaining      adequate internal control over financial reporting. Internal control over      financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the      Securities Exchange Act. Our management assessed the effectiveness of our      internal control over financial reporting as of March 31, 2008, using the      framework set forth in Internal Control-Integrated Framework issued by the      Committee of Sponsoring Organizations of the Treadway Commission. Based      upon this assessment, our management concluded that, as of March 31, 2008,      our internal control over financial reporting was not effective. Due to      our lack of capital, our management determined that our control      environment, risk assessment functions, control activities, information      and communication functions and monitoring systems were not      effective. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| PART II - OTHER INFORMATION |
|-----------------------------|

| Item 1. Legal Proceedings. |
|----------------------------|

| We are not currently involved in any legal  proceedings. |
|----------------------------------------------------------|

| Item 2. Unregistered Sales of Equity Securities and Use of      Proceeds. |
|---------------------------------------------------------------------------|

| None which have not been previouslyreported. |
|----------------------------------------------|

| Item 3. Defaults upon SeniorSecurities. |
|-----------------------------------------|

| None. |
|-------|

| Item 4. Submission of Matters to a Vote of Security  Holders. |
|---------------------------------------------------------------|

| No matter was submitted to our shareholders, during the three months      ended March 31, 2008. |
|-------------------------------------------------------------------------------------------------|

| Item 5. Other Information. |
|----------------------------|

| None. |
|-------|

| Item 6. Exhibits. |
|-------------------|

|   | Exhibit No. |   | Description |
|--------|-------------|--------|-------------|

|   | 31.1 * |   | Certification of Chief Executive Officer required by Rule 13a-14(a)      or Rule 15d-14(b) |
|--------|--------|--------|--------------------------------------------------------------------------------------------|

|   | 31.2 * |   | Certification of Chief Accounting Officer required by Rule 13a-14(a)      or Rule 15d-14(b) |
|--------|--------|--------|---------------------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C.      Section 1350 |
|--------|--------|--------|----------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification of Chief Accounting Officer Pursuant to 18 U.S.C.      Section 1350 |
|--------|--------|--------|-----------------------------------------------------------------------------------|

|   | * filed herewith. |
|--------|-------------------|

|   |
|--------|

| SIGNATURES |
|------------|

| In accordance with the requirements of the Securities Exchange Act of      1934, Registrant has duly caused this report to be signed on its behalf by      the undersigned, hereunto duly authorized. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Date: May 20, 2008. | DIAMOND I, INC. |
|---------------------|-----------------|

|   |
|--------|

|   | By: | /s/ DAVID LOFLIN |   |
|--------|-----|------------------|--------|

|   | David Loflin |   |
|--------|--------------|--------|

|   | President and Acting Chief FinancialOfficer |
|--------|---------------------------------------------|