CONSOLIDATED BALANCE SHEETS 
December 31, 


ASSETS                                                 2000          1999

Current assets: 
Cash and cash equivalents...................... $ 655,409 $ 51,707 Accounts receivable: 

  Trade ........................................      464,061      254,471
  Other ........................................       16,274       76,460
                                                   ----------    ---------  
   Total current assets ........................    1,135,744      382,638 

Fixed assets - net .............................       46,418            -

Deferred tax asset .............................      260,000      323,000
                                                   ----------    ---------  
                                                  $ 1,442,162  $   705,638
                                                   ==========   ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities: Accounts payable and accrued expenses ......... $ 105,521 $ 164,401 
 Accounts payable - officers ...................      75,805        63,416
 Deferred revenue ..............................     164,167             -
 Income taxes payable...........................      15,532         3,400
                                                   ---------    ----------
  Total current liabilities ....................     361,025       231,217

Stockholders' equity: Common stock, $.001 par value, 50,000,000 shares authorized, 10,730,000 shares issued 
 and outstanding (10,500,000 - 1999) ...........      10,730        10,500
 Additional paid in capital ....................   1,411,820       939,050
 Accumulated deficit ...........................    (341,413)     (475,129) 
                                                   ---------     --------- 
                                                   1,081,137       474,421
                                                   ---------     ---------
                                                 $ 1,442,162    $  705,638
                                                  ==========     =========

See notes to financial statements. 


					     dot com ENTERTAINMENT GROUP, INC.
						      AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS 
Years Ended December 31, 

                                               2000          1999

Revenues Royalties .............................. $ 1,464,798 $ 368,443 

 Support and maintenance ................     321,500       210,000
 Other ..................................      17,000           743
                                          -----------    ----------
                                            1,803,298       579,186  
Expenses:
 General and administrative .............     732,125       232,971
 Research, software development and 
  support services  .....................     588,996       269,044
 Marketing (including equity compensation
  of $701,000 in 1999 - see Note 6) .....     269,929       884,971
                                           ----------   -----------
                                            1,591,050     1,386,986
                                           ----------   -----------
Income (loss) before income tax
 (expense) benefit ......................     212,248      (807,800)

Income tax (expense) benefit ............     (78,532)      323,000
                                            ---------    ----------

Net income (loss) ....................... $ 133,716 $ (484,800) 
                                           ==========    ==========

Net income (loss) per share: 
 Basic .................................. $      0.01  $       (.05)
                                           ==========    ===========
 Diluted................................. $      0.01  $       (.05)
                                           ==========    ===========

Weighted average number of common shares outstanding: Basic .................................. 10,710,833 9,958,333 
                                           ==========    ===========
 Diluted ................................  10,805,214      9,958,333
                                           ==========    ===========

See notes to financial statements. 


					     dot com ENTERTAINMENT GROUP, INC.
						      AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY 
Years Ended December 31, 2000 and 1999 

                                                                                 Retained
                                                                     Additional       Earnings
                                            Common Stock              Paid-In      (Accumulated
                                       Shares           Amount        Capital         Deficit)      Total
                                       ------           ------        -------         -------       -----
Balance at January 1, 1999 ........  4,000,000        $  4,000    $   (3,870)      $   9,671    $   9,801

Issuance of common stock for 
acquisition of dot com (Note 2) ...  6,420,000           6,420         2,000               -        8,420

Issuance of common stock (Note 5)..     80,000              80       239,920               -      240,000   

Stock options issued in exchange 
for services (Note 6) .............          -               -       701,000               -      701,000

Net loss - 1999 ...................          -               -             -        (484,800)    (484,800)  
                                    ----------          ------       -------         -------      -------
Balance at December 31, 1999        10,500,000          10,500       939,050        (475,129)     474,421 

Issuance of common stock (Note 5)..    200,000             200       454,800               -      455,000

Issuance of common stock in exchange 
 for services (Note 6) ............     30,000              30         2,970               -        3,000

Issuance of stock options in exchange 
 for services (Note 6) ............          -               -        15,000               -       15,000

Net income - 2000 ...................        -               -             -         133,716      133,716
                                    ----------         -------       -------         -------      -------
Balance at December 31, 2000        10,730,000         $10,730    $1,411,820       $(341,413)  $1,081,137
                                    ==========         =======    ==========       =========   ==========

See notes to financial statements. 


					     dot com ENTERTAINMENT GROUP, INC.
						      AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF CASH FLOWS 
Years Ended December 31, 

                                                             2000        1999

Cash flows from operating activities: Net income (loss) ..................................... $ 133,716 $ (484,800) Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by (used in) operations: 

   Common stock and stock options issued for services....    18,000     701,000
   Depreciation .........................................     6,243           -
   Deferred income tax expense (benefit) ................    63,000    (323,000)
   Changes in non-cash working capital items:
   Accounts receivable ..................................  (149,404)   (318,664) 
   Accounts payable and accrued expenses ................   (58,880)    164,401
   Accounts payable - officers ..........................    12,389      63,416
   Deferred revenue .....................................   164,167           -
   Income taxes payable .................................    12,132           -
                                                           ---------    --------
  Net cash and cash equivalents provided by
  (used in) operating activities ........................   201,363    (197,647)

Cash flows from investing activities: 
  Purchases of fixed assets                                 (52,661)          -
                                                           ---------    --------
    Net cash and cash equivalents 
     used in  investing activities                          (52,661)          -

Cash flows from financing activities: 
  Proceeds from issuance of common stock ..............     455,000     248,420
  Repayment of shareholder loan .......................           -       (2,485) 
                                                           ---------   --------
    Net cash and cash equivalents provided 
    by financing activities ...........................     455,000     245,935
                                                           ---------   --------
Net increase in cash and cash equivalents .............     603,702      48,288

Cash and cash equivalents, beginning of year ..........       51,707      3,419
                                                           ---------   --------
Cash and cash equivalents, end of year ................   $  655,409   $ 51,707
                                                           =========    =======
Supplemental cash flow activities:
  Income taxes paid ...................................   $    3,400   $      -
                                                           =========    =======

See notes to financial statements.