ITEM 1:	BUSINESS (General)
A.	The Company
Merit Diversified International, Inc. ("the Company") currently has no operations and no cash flow or operating capital. The Company is considered to be a develop- ment-stage company, and will continue to be classified as such until the Company initiates business operations.
B.	History of Operations
The Company was incorporated in the State of Utah, in 1983, subsequently reincorporating in the State of Nevada. Initially, the Company published a telephone directory, but this operation was suspended in 1987 due to lack of operating funds and revenues. Since 1988, the Company has made several attempts to acquire and operate various businesses. All efforts have proven to be unsuccessful.
In 1994, the Company purchased from Phalanx, Ltd., certain rights to molds and designs of exclusive jewelry. These were purchased with 27,000,000 shares of the Company's common stock. Originally valued at $270,000 this investment proved to be worthless. Major shareholders of the Company sued for return of the shares. On February 9, 1995, the Superior Court of the County of Maricopa, Arizona decided that the 27,000,000 were improperly given and denied those shares voting rights. On March 23, 1995, a shareholders meeting was held whereby those shares were rescinded and returned to the Company.
In April, 1996, the Company approved a 20 to 1 reverse stock split. Subsequent to the stock split, the Company approved a merger with a company named NEAT, Inc., a Nevada corporation, through the issuance of 13,000,000 shares of common stock, with the intent of marketing a certain new technology and combining the companies. Both parties chose not to continue the merger; however, NEAT, Inc. returned 13,000,000 shares to the Company. There is no assurance that the potential business will be successful.
During the past five fiscal years, the Company has been dormant. During May 1997, and in anticipation of the acquisition of Global Resources and Technology, Inc., the Company appointed Mr. Mallette as officer and interim director to investigate and facilitate the acquisition of a viable business operation focusing on environmental products and services. During June 1997, the Company identified a business opportunity with Amwest Environmental Group, Inc. (AEG). AEG held contracts to perform environmental reclamation services for certain cities in the Peoples Republic of China and secured property, plant and equipment in those cities to operate recycling and manufacturing facilities. The company issued 25,100,000 shares of no par value Common Stock to Jen Investments Corporation, in trust for the benefit of AEG, pending shareholder approval of the exchange of those shares for AEG's investment in Global Resources & Technology, Inc. (Global). During May 1997, AEG formed Global as a wholly owned subsidiary and transferred certain contracts for enviromental clean-up projects, patents, and proprietary technologies associated with environmental clean-up and protection, and certain assets acquired including property, plant and equipment, including land, that it had acquired by purchase. The property, plant, equipment and land are located in the Peoples Republic of China. However, the merger to this date has not yet been completed and the Company does not anticipate that it will be completed in the future.
As a potential replacement to the above referenced China deal, on or about August 5, 1998 Jen Investments transferred to six entities 20,000,000 shares in exchange for an irrevocable commitment by Synergy International to transfer into Merit assets having a value of $5,000,000. It is anticipated by the Company that $2,000,000 of those commited assets will be booked on the records of Merit within the third quarter of the year 1999 and that the Company will seek to engage in the business of selling music over the Internet and other entertainment related businesses.
As of August 31, 1999, the Company had no employees and no operating assets. The Company continues to meet its organizational obligations through the contribution of capital by major shareholders.
The Company has continued its efforts to acquire, merge with or enter into other forms of business combinations. It is presently unknown whether any transactions will be successfully concluded.
ITEM 2:
ITEM 2:	PROPERTIES
None.
ITEM 3:
ITEM 3:	LEGAL PROCEEDINGS
None.
ITEM 4:
ITEM 4:	SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS None.
ITEM 5:
ITEM 5:	MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS
The Company's common stock is traded on the OTC Bulletin Board.
The quote below is from the "Pink sheets: and the OTC bulletin Board. These numbers represent an average. The Company's stock was thinly traded in fiscal year ended August 31, 1999.
Bid	High		1.00		Low			 .125
Ask	High		3.00		Low			1.00
ITEM 6:
ITEM 6:	SELECTED FINANCIAL DATA
The following information is derived from the consolidated financial statements included elsewhere herein. All information presented below should be read in conjunction with the Consolidated Financial Statements and Notes included elsewhere in this Form 10K.
For Year Ended August 31 1999	 1998 1997 1996 1995 Net Sales	 0	 0	 0	 0	 0
Net Income (Loss)	 0	 0 0 (21,418) (17,650)
Earnings (Loss) per Share NIL NIL NIL 0	 0
Cash Dividends per Share 0	 0	 0	 0	 0
Total Assets		 0	 0	 0 0 16,418
Long-term Notes Payable	 0	 0	 0	 0	 0 Total Stockholders' Equity 0 0 0 (109,677) (93,269)
ITEM 7:
ITEM 7:	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 	CONDITION RESULTS OF OPERATIONS (Continued)
The information set forth in "Management's Discussion and Analysis of Financial Condition and Results of Operations" below includes "forward- looking statements" within the meaning of Section 27A of the Securities Act, and is subject to the safe harbor created by that section. Factors that could cause actual results to differ materially from these contained in the forward-looking statements are set forth in "Management's Discussion and Analysis of Financial condition and Results of Operations".
Year Ended August 31, 1999 and 1998
The Company has no assets, and has not engaged in any operational activities during the past five (5) years. At present, the Company has no employees. The Company does not expect any changes unless the Company concludes a merger or other business combination.
During the years ended August 31, 1998 and 1999, the Company had no operations. The Company maintained its existence through contributions from its shareholders to satisfy its general and administrative expenses. As detailed on the accompanying consolidated statements of cash flows, there were no significant adjustments between the net loss and net changes in cash.
Due to the nature of the Company's activities, the Company's prospects for the future are dependent on a number of variables which cannot be predicted. Generally, after identifying a potential business opportunity, the Company could incur significant costs in evaluating the desirability of an acquisition or other form of business combination. Should the Company determine to proceed with the business combination, the transaction costs could be significant. Thereafter, results of operation would likely be materially affected by the business acquired or merged with the Company.
The Company has continued its efforts to acquire, merge with or enter into another form of business combination with another entity, and the Company plans to continue these efforts in the future fiscal year. It is presently unknown whether any transaction will be successfully concluded.
Liquidity and Capital Resources
Year Ended August 31, 1999
The Company currently does not have adequate reserves to satisfy its short - -term obligations. The Company is currently seeking private placement funding to maintain its obligation until such time as its operations can generate cash flow. No guarantee can be made that the current development stage search for an operational business or private funding will be successful. The Company is able to continue because the major shareholders continue to cover administrative expenses. No guarantee can be made that the major shareholder will continue to cover these expenses.
ITEM 7:	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION RESULTS OF 	OPERATIONS (Continued)
The Company considers its current cash and cash equivalent balances inadequate to satisfy its cash requirements for the next twelve months. Legal and accounting and other expenses required could increase significantly in connection with any contemplated business combination. The Company may not have the liquidity and capital resources to consummate such business combination. Due to the nature of the Company's present activities, however, the Company is unable to predict its likely expenditure for professional fees and other expenses. The Company has no major capital commitments nor access to mechanisms to fund working or operating capital, and there can be no assurance that it will be successful in its efforts to raise additional capital to maintain its plan of operation.
Balance of Page Left Blank Intentionally
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-Stage Company)
ITEM 8
ITEM 8	Financial Statements 	Index to Consolidated Financial Statements
________________________________________________________________________________ _____________________________________________________________________________ 1999, 1998 and 1997 Consolidated Financial Statements:
	Report of Independent Certified Public Accountants
	Balance Sheets as of August 31, 1999 and 1998
	Statements of Operations for the Years Ended August 31, 1999, 	1998 and 1997
	Statements of Stockholders' Equity for the Years Ended August 31, 1999, 	1998 and 1997
	Summary of Accounting Policies and Notes to Consolidated Financial Statements
Schedules --
	II	Valuation and Qualifying Accounts
Andrew M. Smith, CPA 3711 Long Beach Blvd., Suite 809 Long Beach, Ca 90807 (562) 424-8679
To the Board of Directors Merit Diversified International, Inc.:
INDEPENDENT AUDITOR'S REPORT
	I have audited the accompanying balance sheet of Merit Diversified International, Inc., a development-stage company, as of August 31, 1999 and the related statements of operations, stockholders' equity and cash flows for the year ended August 31, 1999. My responsibility is to express an opinion on these financial statements based on my audit.
I have conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis. Evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit and those of other auditors provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Merit Diversified International, Inc., as of August 31, 1999 and the results of their operations and their cash flows for the three (3) years ended August 31, 1999 in conformity with generally-accepted accounting principles.
													Andrew M. Smith, CPA
Dated: September 27, 1999
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-Stage Company)
CONSOLIDATED BALANCE SHEETS
August 31,					1999		 1998
Assets
Total Assets					$ -		 $ -
Liabilities and Shareholders' Equity
	Current Liabilities
Accounts and Taxes Payable	 		8,000		 8,000
Total Current Liabilities			8,000		 8,000
Commitments and Contingencies
Shareholders' Equity
	Common Stock--No Par Value; 	50,000,000 shares authorized, 	30,042,257 and 16,209,316 	issued and outstanding as of 	1999 and 1998, respectively	 1,332,349	 1,332,349
	Additional Paid-in Capital	 1,122,215 1,122,215
	Accumulated Deficit--Accumulated 	during the developmental stage	 (2,462,564) (2,462,564)
Total Shareholders' Equity	 ( 8,000) ( 8,000)
Total Liabilities and Shareholders' Equity	 $ -		 $ -
See Notes to Consolidated Financial Statements.
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended August 31, 1999, 1998 and 1997 1999		 1998		 1997
Net Revenue	 $ -		 $ -		 $ -
Costs and Expenses
General and Administrative -	 -		 - Depreciation and Amortization	 -		 - Income (Loss) from Operations	 -		 - -
Other Income (Expense) -		 -		 -
Income Before Taxes on Income	 -		 -	 -
Taxes on Income			 -	 	 -	 -
Net Income (Loss)		 -	 	 -	 	 -
Net Income (Loss) Per Share	 Nil 		 Nil		 Nil
Weighted Average Number of Shares and Shares Equivalents Outstanding 26,584,022 26,584,022 23,125,787
See Notes to Consolidated Financial Statements.
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-Stage Company)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Years ended August 31, 1999, 1998 and 1997:
			 Common Stock	 Paid-in	Accumulated 				 Shares Amount Capital	 (Deficit)
Balance, August 31, 1997				16,209,316 $1,332,349 $1,122,215	 ($2,462,564)
Purchase of consulting		 1,186,175 Issuance of shares	 25,646,766 Cancellation of Shares	 (13,000,000)
Balance, August 31, 1998				30,042,257 $1,332,349 $1,122,215	 ($2,462,564)
Balance, August 31 1999 30,042,257 $1,332,349 $1,122,215 ($2,462,564)
See Notes to Consolidated Financial Statements.
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
Years Ended August 31, 					1999	 	1998 		 1997
Operating Activities:
	Net Income (Loss)		 $ - $ -		 $ -
	Adjustments to reconcile net loss 	to cash used in operating activities:
	Depreciation Expense
	Loss on Devaluation
Changes in Operating Assets and Liabilities:
	Accounts Payable
Cash Provided by (used in) Operating Activities
Investing Activities: 	Net Decrease in Notes Payable 	Purchase of Fixed Assets
Cash Used in Investing Activities
Financing Activities: 	Net Change in Common Stock 	Paid-in Capital
Cash Provided by Financing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Period
Cash and Cash Equivalents, End of Period
Significant Non-cash Transactions 	Fiscal Year ended August 31, 1999:
Fiscal Year ended August 31, 1997: 	Issuance of 25,100,000 Common Shares to JEN INVESTMENTS CORP.
See Notes to Consolidated Financial Statements.
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1.	General Company Information and Summary of 		Significant Accounting Policies
The Company was organized August 23, 1983, in the State of Utah. Initially, the Company published and attempted to market a telephone directory, but this operation was suspended in 1987 due to lack of operating funds and revenues. Since 1988, the Company has made several attempts to acquire and operate various businesses. These have proven thus far to be unsuccessful. Note 2 (below) lists some of the attempted acquisitions and the results. The Company continues to pursue a path of merger with an operating business.
The Company has incurred significant losses since its inception and as of August 31 1999, has no source of revenue. The Company has no cash, and has maintained its existence and paid ongoing expenses through the issuance of common stock.
The Company has been able to continue because major shareholders have continued to invest in the Company to meet its expenses.
The Company is considered a development-stage company, and will remain in this status until operations begin. There can be no assurance that the Company will be able to merge with an operating company, acquire an ongoing business, or that the major shareholders will continue to pay the expense of the Company.
Basis of Presentation
The accompanying consolicated financial statements have been prepared in accordance with United States generally accepted accounting principles.
Property and Equipment
As of August 31, 1999 the Company had no fixed assets. Previously the Company depreciated its fixed assets over their estimated useful lives on a straight line bases.
Development Stage Company
The Company has had no revenue or operations during the previous five years, and because of this has considers itself a development stage company. It will remain in this status until such time as it initiates or merges with operations of some kind. In the early years, the Company generated nominal revenues from the sale of its telephone directory. These minimal revenues have been netted with general and administrative expenses of those years.
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Net Loss Per Share
Loss per share is computed based on the average number of shares outstanding during each year.
Revenue Recognition
The Company has had no revenue during the past five years.
Provision for Income Taxes
The provision for income taxes is the total of the current taxes payable and the net of the change in the deferred income taxes. Provision is made for deferred income taxes where differences exist between the period in which transactions affect current taxable income and the period in which they enter into the determination of net income in the financial statements. The Company has a net operating loss carry forward of approximately $2,000,000 available to offset future taxable income. The last of the carry forward expires in 2009. No benefit has been recorded on the face of the balance sheet for this benefit.
Note 2.	Investments and Acquisitions
Marketable securities at August 31, 1999 and 1998 had an original cost basis of $240,000. The stock is currently considered worthless.
Purchase of Phalanx, Ltd. Rights:
In 1994, the Company purchased from Phalanx, Ltd. certain rights to molds and designs of exclusive jewelry. These were purchased with 27,000,000 shares of the Company's common stock. Originally valued at $270,000 this investment proved to be worthless. Major shareholders of the Company sued for return of the shares. On February 9, 1995, the Superior Court of the County of Maricopa, Arizona decided that the 27,000,000 shares were improperly given and denied those shares voting rights. On March 23, 1995, a shareholders' meeting was held wherein those shares were rescinded and returned to the Company.
Note 3.	Related Party Transactions
The Company has been able to continue in existence and to remove most of its debts because some of the major shareholders have continued to cover the administrative expenses and to pay outstanding debts. There is no guarantee that these shareholders will continue to fund the Company.
There are no outstanding obligations due to or from related parties as of August 31, 1999.
Note 4.	Commitments and Contingencies
The Company has no commitments or contingencies as of August 31, 1998
Note 5. Going Concern
The Company has incurred significant losses since its inception and as of August 31, 1999, had no source of revenue. The Company also had no cash, and has paid for all of its ongoing expenses with the issuance of its common stock.
The Company has been able to continue because the major stockholders have been willing to continually invest in the Company to cover expenses. The Company is to be considered a development-stage company, and will remain in this status until operations have been established. No guarantee can be made that the Company will be able to merge with an operational company or that the major stockholders will continue to pay the expenses of the Company. As of August 31, 1999 and 1998, the Company had no assets.
Due to the nature of the Company's activities, the Company's prospects for the future are dependent on a number of variables which cannot be predicted. Generally, after identifying a potential business opportunity, the Company could incur significant costs in evaluating the desirability of an acquisition or other form of business combination. Should the Company determine to proceed with the business combination, the transaction costs could be significant. Thereafter, results of operation would likely be materially affected by the business acquired or merged with the Company.
In February 1997, major stockholders contributed $8,000 to pay old payables.
MERIT DIVERSIFIED INTERNATIONAL, INC. (A Developmental-Stage Company)
SCHEDULE 11 - VALUATION AND QUALIFYING ACCOUNTS
NONE.
ITEM 9:
ITEM 9:	CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON 		ACCOUNTING AND FINANCIAL DISCLOSURES
The Company has changed it's accountant to Andrew M. Smith CPA.
ITEM 10:
ITEM 10:	DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY
		The officers and directors of the Company were the following:
	Name		 				Title
	Dwight Mallette		 			Sec./Director 	Robert Rooks 					President/Director 	John P. Farquhar 				Director 	Dr. Philip Chamberlin				Vice President 	Cal Burton					Vice President 	Kurtis Blow					Vice President 	Fred Rector					Vice President 	Hiroko Sagawa					Treasurer
Mr. Dwight Mallette, age 64, has been a Director and Secretary and Treasurer of the Company since May 1997. Mr. Mallette has held positions including Director of Allstar Entertainment, Inc., Director of Largo Vista International, Inc. and Director of Astral Ventures & Tours, Inc.
Mr. Robert Rooks, the newly appointed President of the Company is an experienced business executive and entrepreneur, who has been active in the entertainment industry since 1969. Mr. Rooks has been the executive producer for major recording artists. He has been responsible for record and radio promotions for more than 300 radio stations. He was the founder, and the C.E.O., of Apple Juice Productions, Inc. and Apple Juice Records. He produced and co-produced a number of low budget movies which had successful theatrical releases, including "Disco Godfather" and "Dodomite". He produced video commercials and documentaries for the Democatic National Committee. Mr. Rooks produced for the Regan Administration and an important documentary film on international trade and American exports, with President Regan appearing in the film. Mr. Rooks established and developed Synergy Group of Companies, including International Synergy Holding Company, Internationl Synergy Corporation and United Assurance Company Ltd. United provides a wide range of property and causuality assurance and is listed in A.M. Best Directory of International Insurance Companies. He serves as Chief Executive Officer and a Director of these companies.
Mr. John P. Farquhar, a recently appointed director, is a research scientist, inventor and investor. Mr. Farquhar is a graduate of Harvard College; received his B.S. in mathematics at California Institute of Technology with an M.S. in Chemistry. He represented his family in major land reversion cases involving the Pacific Electric Railway, City of Santa Monica, Country of Los Angeles, State of California. Mr. Farquhar Contributed information and historical photographs and various documents to the Santa Monica Historical Society, the Heritage Square Museum and Miramar Hotel, which were family homes, and the Huntington Library in San Marino, California. He invented and obtained a patent for correcting extra-axial aberrations of both refractive and reflective lenses. Mr. Farquhar developed several other inventions on which he is still working; one of them is a system for eliminating pollutants form the exhaust of combustion engine systems, including internal combustion engines (such as in motor vehicles) and from factory smokestacks. During the last few years, he has been working with Robert Rooks in putting together Synergy Group of companies.
Dr. Philip Chamberlin, a newly appointed Vice President of the Company is well-known in the motion picture industry as a producer, as the founder, with George Cukor, of the Los Angeles International Film (FILMEX) and as a Member-at-large, and the Director of Special Projects, with the Academy of Motion Picture Arts and Sciences. He produced "the Movies," a four hour miniseries for ABC Television, "The Testament of Dr. Cordeher" with Jean Renoir, the award-winning documentary film, "Colleen," and other films. He is the co-founder of the Children's Film and Television Center of America and founder of the International Children's Film Festival, now in its 24th year.
Cal Burton, a newly appointed Vice President of the Company is a creative entertainment executive and producer of films and TV programs. The films he has produced inlucde "Going For the Gold" and the award-winning "Maybe It's All In My Mind." He produced and packaged a number of Network specials on NBC-TV including "Chicago Soul I and II." On ABC-TV he produced the 90 minutes Special "Salute To Redd Foxx", featuring Steve Allen, Diahann Carroll, Quincy Jones, Richard Pryor, Milton Berie, Demond Wilson and Jayne Meadows. He was nominated for an Emmy Award - Producer for "What's Going On." He is a co-owner with John Mackey of Avanti Productions, a motion picture and television production company emphasizing sports and Music.
Fred Rector, a newly appointed Vice President is a veteran of thirty years of successful promotion in the music business. At Capitol Records, then at Record Merchandising Distributors, he launched and promoted hit records for artists, including Nancy Wilson, Lou Rawls and many others. His promotion work at TK Records made the company a huge success. After TK Records, his work with major record companies and distributors was instrumental in the success of records by Donna Summer, Lionel Richie, Elton John, Madonna, Michael Jackson, Paula Abdul and many others.
Kurtis Blow, a newly appointed Vice President, is an internationally known music star with many "firsts" to his credit. He has co-produced successful albums with many stars, including Witney Huston, Run DMC. New edition, De Barge and others. Kurtis Blow is one of the founders and creators of Record Rap. He stands as an emerging leader in a new generation of Rappers, and he will soon cary their music into its newest form. Kurtis Blow became the first rapper to be signed by a major label. Mercury released "Christmas Rappin," and it sold over 500,000 copies (going gold). He released ten albums over eleven years. The first entitled, "Kuris Blow," his full length debut, and his second, Top Pop Album "Deuce" became a big hit accross Europe. "America," America's video innovation received an MTV Monitor Award. Also, from the album "America" the song "If I Rule The World" became a top five hit on Billboard's R&B chart. Kurtis Blow worked along side Russell Simmons in starting Def Jam Records, one of the most successful Rap labels, with over $1,000,000 in sales.
ITEM 11:
ITEM 11:	EXECUTIVE COMPENSATION
No officer or director receives compensation for services rendered except that the directors are authorized to receive 100 shares of R-144 Company stock for each directors meeting that they attend. No such stock has been issued.
ITEM 12:
ITEM 12:	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of August 31, 1999, the following were beneficial owners of more than five percent of the Company's common stock.
Stock			 Name and Address				Ownership
Common		 	Selective Entertainment			 	3,250,000 			 1801 Avenue of the Stars #640 				Los Angeles, CA 90067
				I A T Mortgage Bankers				3,250,000 				1801 Avenue of the Stars #640 				Los Angeles, CA 90067
				Robert Rooks					 500,000 				1801 Avenue of the Stars #640 				Los Angeles, CA 90067
				International Annuity Trust Corporation		3,250,000 				6348 De Roja 				Woodland Hills, CA 91364
				Apple Juice Productions				3,250,000 				6348 De Roja 				Woodland Hills, CA 91364
				International Synergy Corporation		3,250,000 				1054 Thomas Street, South East 				Grand Rapids, MI
				United Assurance Company, Ltd.			3,250,000 				1142 King Street 				Chrisiansted, St.Croix, U.S.V.I.
	 	 Total as a Group: 20,000,000
The table below sets forth those directors and officers who own shares of Company stock.
		Common		 Robert Rooks					 500,000
ITEM 13:
ITEM 13:	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
No director or officer, directly or indirectly, is indebted to the Company in an amount in excess of $60,000 as of the close of the fiscal year August 31, 1999.
ITEM 14:
ITEM 14:	EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS
a.	Audited Financial Statements.
SIGNATURES
The signature below is that of Mr Dwight Mallette. Mr. Mallette did not become involved with the Company until May 1997. Mr. Mallette disclaims any knowledge of, or liability for any transaction prior to this time. Mr. Mallette signs below as a current officer and director.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Merit Diversified International, Inc. (Registrant)
		____________/s/_____________________________ Dwight Mallette, Chief Accountant, Secretary
Dated: September 27, 1999
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
	Signature					 										Title
			______________________/s/___________________ 	 Dwight Mallette													Chief Accountant