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STEFANOU & COMPANY, LLP

Certified Public Accountants

1360 Beverly Road

Suite 305

McLean, VA 22101-3621

703-448-9200

703-448-3515 (fax)

Philadelphia, PA

Board of Directors and Stockholders

Los Angeles, California

         We have audited the accompanying balance sheet of LAPTA ACQUISITION CORPORATION X, (a development stage company) as of July 12, 2000 and the related statements of losses, stockholders' equity, and cash flows for the period June 30, 2000 (date of inception) through July 12, 2000. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on the financial statements based upon our audit.

        We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we 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. We believe our audit provides a reasonable basis for our opinion.

          In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of LAPTA ACQUISITION CORPORATION X (a development stage company) at July 12, 2000 and the results of its operations and its cash flows for the period June 30, 2000 (date of inception) through July 12, 2000 in conformity with generally accepted accounting principles.

          The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the financial statements, the Company has incurred net losses since its inception. This condition raises substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to this matter is described in Note D. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

McLean, Virginia

July 14, 2000

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LIABILITIES

STOCKHOLDER'S EQUITY

See accompanying notes to financial statements.

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See accompanying notes to financial statements.

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See accompanying notes to financial statements.

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CASH FLOWS FROM OPERATING ACTIVITIES:

See accompanying notes to financial statements.

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A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows.

LAPTA ACQUISITION CORPORATION X (the "Company") was incorporated in the state of Nevada on June 30, 2000. The Company is in the development stage and its efforts have been principally devoted to raising capital. To date, the Company has generated no sales revenues, has incurred expenses and has sustained losses. Consequently, its operations are subject to all the risks inherent in the establishment of a new business enterprise.

Income taxes are provided based on the liability method for financial reporting purposes in accordance with the provisions of Statements of Financial Standards No. 109, "Accounting for Income Taxes". Deferred and prepaid taxes will be provided for on items which are recognized in different periods for financial and tax reporting purposes.

For purposes of the accompanying financial statement, the Company considers all highly liquid debt instruments purchased with a maturity date of three months or less to be cash equivalents.

Earnings per common share will be based upon the weighted average number of hares outstanding.

Organization costs incurred have been expensed in accordance with AICPA Statement of Position 98-5.

The preparation of financial statement in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Statement of Financial Accounting Standards No.130, "Reporting Comprehensive Income" ("SFAS 130"), establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, SFAS 130 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. The Company adopted SFAS 130 during the year ended July 12, 2000 and has no items of comprehensive income to report.

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The Company's president and sole director is also the sole shareholder of entity which own 100% of the Company's issued and outstanding common stock. The Company has entered into an agreement with the entity whereby the entity will provide administrative support to the Company and evaluate potential business opportunities. The entity will not be reimbursed for these services until a suitable business combination has been consummated.

The Company is authorized to issue 20,000,000 shares of preferred stock at $.001 per share. As of July 12, 2000, there were no preferred shares outstanding.

The Company is authorized to issue 100,000,000 shares of common stock at $.001 per share. During the period ended July 12, 2000, the Company issued 5,000,000 shares of common stock in exchange for cash and reimbursement of services for $ 1,830 (see Note B).

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying financial statements during the period June 30, 2000 (date of inception) through July 12, 2000, the Company incurred a loss of $ 1,330. This factor among others may indicate that the Company will be unable to continue as a going concern for a reasonable period o

The Company's existence is dependent upon management's ability to develop profitable operations. Management is devoting substantially all of its efforts to establishing a new business, however the planned principal operations have not commenced. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

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