EAGLE ENVIRONMENTALTECHNOLOGIES LTD.
(A  DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
AS OF JUNE 30 2004 AND 2003
ASSETS
						30-Jun		30-Jun
CURRENT ASSETS						2004		2003
	CASH					(6,570.00)		(5,571.60)
	ACCOUNTS RECEIVABLE
	NOTES RECEIVABLE- PETTI					21.00
	NOTES RECEIVABLE - PEPI					1,301.00
	NOTES RECEIVABVLE - ZAWTECH					19,152.45		19,152.45
	NOTES RECEIVABLE - TRI VALLEY					538.90		538.90
	NOTES RECEIVABLE - OFFICERS					77.00		1,951.08
	INTEREST RECEIVABLE					8,449.46		8,449.46
		TOTAL CURRENT ASSETS				22,969.81		24,520.29
PROPERTY, PLANT AND EQUIPMENT
	MACHINERY AND EQUIPMENT					37,475.00		37,475.00
	LESS ACCUMULATED DEPRECIATION					(32,253.00)		(28,249.00)
	VEHICLES					18,867.00		18,867.00
	LESS ACCUMULATED DEPRECIATION					(16,979.00)		(13,206.00)
	FURNITURE					1,547.00		1,547.00
	LESS ACCUMULATED DEPRECIATION					(744.00)		(563.00)
	INTANGIBLE ASSETS					4,000.00		4,000.00
	LESS ACCUMULATED AMORTIZATION					(3,600.00)		(3,600.00)
		TOTAL FIXED ASSETS				8,313.00		16,271.00
OTHER ASSETS
	RIGHTS TO TECHNOLOGY					256,655.00		256,655.00
	ZAWCAD LICENSE					411,417.00		391,417.00
		TOTAL OTHER ASSETS				668,072.00		648,072.00
		TOTAL ASSETS				$699,354.81		$688,863.29
EAGLE ENVIRONMENTALTECHNOLOGIES LTD.
-
BALANCE SHEET
AS OF JUNE 30,2004 AND  2003
LIABILITIES AND STOCKHOLDERS EQUITY
						30-Jun		30-Jun
						2004		2003
LIABILITIES
	ACCOUNTS PAYABLE		E - TRADE			264,342.00		296,057.77
	ACCOUNTS PAYABLE - RELATED					90,122.00		101,764.68
	CREDIT CARDS PAYABLE					48,392.00		76,011.90
	CONTRACTS PAYABLE					228,950.00		151,800.00
	CONTRACT LABOR					56,700.00
	DIRECTOR FEES PAYABLE					35,700.00
	LOANS PAYABLE - RELATED PARTIES					35,490.00		21,218.31
	NOTES PAYABLE -JAB					178,137.00		183,487.49
	NOTES PAYABLE - RELATED PARTIES					(243,616.00)
	NOTES PAYABLE CONV DEBENTURE					9,000.00		9,000.00
	NOTES PAYABLE - DEBT LOANS					5,433.00
	STOCK WARRANTS PAYABLE					7,640.51		16,800.51
	ACCRUED INTEREST					26,313.74		26,313.74
	TOTAL CURRENT LIABILITIES					742,604.25		882,454.40
STOCKHOLDER EQUITY
	COMMON STOCK - $0.001 PAR VALUE					456,231.00		342,332.00
	PREFERRED STOCK					5.00
	ADDITIONAL PAID INCAPITAL					3,381,451.00		2,551,800.00
	STOCK WARRANT EQUITY					90,372.00		138,165.00
								.
	ACCUMUL;ATED DEFICIT SINCE INCEPTION					(3,853,525.00)		(3,131,632.00)
	CURRENT YEAR LOSS					(117,783.44)		(94,256.11)
	TOTAL STOCKHOLDER EQUITY					(43,249.44)		(193,591.11)
	TOTAL LIABILITIES AND EQUITY					$699,354.81		$688,863.29
EAGLE ENVIRONMENTALTECHNOLOGIES LTD.
(A  DEVELOPMENT STAGE COMPANY)
STATEMENT OF INCOME AND EXPENSES
AS OF  JUNE 30 2004 AND  2003
REVENUE
						30-Jun		30-Jun
						2004		2003
	SALES
	OTHER INCONME					6,717.00		250.00
	TOTAL INCOME					6,717.00		250.00
OPERATING EXPENSES
	ADVERTISING					213.00
	AUTO EXPENSES					713.00		1,756.20
	DIRECTOR FEES					10,500.00
	INTEREST					5,514.00		7,124.32
	PROFESSIONAL FEES					20.00		2,215.90
	CONTRACT SERVICES					2,100.00		8,600.00
	CONTRACT LABOR					12,500.00		34,667.00
	CONTRACT LABOR - MANAGEMENT					62,500.00
	CONSULTING					250.00		650.00
	DEPRECIATION					12,865.44
	OFFICE EXPENSES					1,337.00		5,165.36
	RENT					10,800.00		8,700.00
	SHAREHOLDER EXPENSES					1,411.00		2,336.14
	TRAVEL AND ENTERTAIN					378.00		5,477.85
	UTILITIES					1,180.00		2,558.20
	LEGAL AND ACCOUNTING					2,219.00		15,255.14
	TOTAL OPERATINGEXPENSES					124,500.44		94,506.11
	MET INCOME (LOSS)					($117,783.44)		($94,256.11)