U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14C INFORMATION

INFORMATION STATEMENT PURSUANT TO SECTION 14(c)
OF THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )

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[ ] Confidential, for Use of the Commission Only (as permitted by
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[ ] Definitive Information Statement

IBIZ TECHNOLOGY CORP.
(Name of the Registrant as Specified in its Charter)

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INFORMATION STATEMENT

IBIZ Technology Corp.
2238 West Lone Cactus Drive, Suite 200
Phoenix, Arizona 85021

We Are Not Asking You for a Proxy and You Are
Requested Not To Send Us a Proxy

This Information Statement Proxy Statement is being furnished at
the direction and on behalf of the Board of Directors of IBIZ
Technology Corp., a Florida corporation ("Company"), to the holders
of record at the close of business on July 23, 2003 ("Record Date")
that were not solicited by the Company, of the Company's outstanding
common stock, par value $0.001 per share ("Common Stock",) pursuant
to Rule 14c-2 promulgated under the Securities Exchange Act of 1934,
as amended ("Exchange Act").

The Company's Board of Directors has unanimously approved the
spin-off IBIZ, Inc., a wholly owned subsidiary of the Company, into a
separate public company. The Company has received the consent of a
majority of the outstanding shares of Common Stock for the Company
for the foregoing action. The issuance of the shares of IBIZ, Inc.
will not be commenced until a date that is at least twenty (20) days
after the filing of a Definitive Information Statement.

This Information Statement will be mailed on or about September
17, 2002 to the Company's stockholders of record who have not been
solicited for their consent of this corporate action. The cost of
preparing, assembling and mailing this Information Statement is being
borne by the Company.

VOTING SECURITIES

The record date of shareholders entitled to notice of this
corporate action by the Company is the close of business on July 23,
2003. On such date, the Company had issued and outstanding
454,338,052 shares of $0.001 par value common stock. Each share is
entitled to one vote per share on any matter that may properly come
before the shareholders and there is no cumulative voting right on
any shares. All matters voted on required an affirmative vote of a
majority of the issued and outstanding shares of the Company.

The Company has solicited and received written consent of a
majority of stockholders. Pursuant to applicable Florida law, there
are no dissenter's rights relating to the matter voted on.

STOCK OWNERSHIP

The following table sets forth information regarding the
beneficial ownership of shares of the Company's common stock as of
July 23, 2003 (454,338,052 issued and outstanding) by (i) all
stockholders known to the Company to be beneficial owners of more
than 5% of the outstanding common stock; and (ii) all of the current
directors and executive officers of the Company as a group:

Title of Class Name and Address Amount of Percent of
of Beneficial Owner Beneficial Class
Ownership (1)

Common Stock Mark H. Perkins 103,678,645 22.82%
2238 West Lone Cactus Drive
Suite 200
Phoenix, Arizona 85021

Common Stock Kenneth W. Schilling 103,484,952 22.78%
2238 West Lone Cactus Drive
Suite 200
Phoenix, Arizona 85021

Common Stock Yigal Baruchi 0 0.00%
2238 West Lone Cactus Drive
Suite 200
Phoenix, Arizona 85021

Common Stock Shares of all directors and 207,163,597 45.60%
executive officers as a
group (3 persons)

(1) Each person has sole voting power and sole dispositive power as
to all of the shares shown as beneficially owned by them. None of
these individuals holds any convertible securities.

SPIN-OFF OF IBIZ, INC.

The Company proposes to spin-off its subsidiary company, IBIZ,
Inc., a Nevada corporation organized by the Company on November 1,
2001 ("IBIZ"). The Company proposes to issue without consideration
non-restricted shares of common stock in IBIZ pro rata to all
shareholders of the Company as of September 25, 2003 (the directors,
officers, and 10% or greater shareholders ("affiliates") will
received restricted shares in IBIZ) at the ratio of one share of IBIZ
for each 500 shares of Company common stock held as of that date.
Prior to this issuance, IBIZ intends to file with the Securities and
Exchange Commission, and have go effective, a Form 10-SB for the
purpose of registering the common stock of IBIZ under Section 12(g)
of the Securities Exchange Act of 1934.

There is a valid business purpose for the spin-off of IBIZ in
that it will allow management of each business to focus solely on that
business. In addition, it should enhance access to financing by
allowing the financial community to focus separately on each business.

Description of Business of IBIZ.

IBIZ designs, manufactures (through subcontractors), and
distributes its existing and assigned products and licenses and a new
line of accessories for the PDA and handheld computer market. These
products will be distributed through large retail chain stores and e-
commerce sites throughout the United States by IBIZ Corp. and
worldwide by IBIZ.

After completion of the spin-off as outlined previously, IBIZ
intends to do a share exchange with IBIZ AG, a wholly subsidiary of
Endeavour Capital AG; this share exchange does not, under
Nevada law, require the consent of shareholders). This will be
accomplished by the issuance by IBIZ of 11,200,000 shares of common
stock to the parent of IBIZ AG, Endeavour Capital AG, in exchange of
100% of the issued and outstanding common stock of this company. The
new subsidiary of IBIZ will hold products and licenses for the spin-
off operation and introduce to the Programmable Digital Assistant
("PDA") market the virtual laser light keyboard "Light Key".

Endeavour Capital has assigned all licenses for "Light Key" and
E-Pen and Endeavour Capital owned intellectual properties to its
wholly owned subsidiary IBIZ AG, for the purpose of the share
exchange. The Light Key is capable of projecting a full size laser
keyboard on any flat surface, providing full keyboard capabilities to
the PDA and hand held user in any location.

As a complimentary input device Endeavour Capital will introduce
its and virtual pen, the E-Pen, capable of storing and sending to the
PDA hand held or any computer any hand writing or written-on-paper image.

The license of "Light Key" will provide IBIZ AG the worldwide
rights to manufacture and market a virtual keyboard developed by VKB
Inc. as an accessory to appliances such as PDA's, hand-held, cell-
phones, laptops, etc. This license is for an indefinite period and
enables IBIZ to develop its own intellectual properties in design and
engineering for its exclusive products without the need to invest
massive capital for "core technology" development.

The license of E-Pen will provide IBIZ AG the exclusive
worldwide rights to manufacture and market an electronic pen
developed by InMotion E-Pen Inc. as an accessory to appliances such
as PDA's, hand-held, cell-phones, laptops, etc. This license is for
an indefinite period and enables IBIZ to develop its own intellectual
properties in design and engineering including the core technology.
Endeavour Capital, through IBIZ AG, currently operates InMotion E-Pen
Inc., company under a special operating agreement which will allows
IBIZ to receive 10% of InMotion E-Pen Inc.'s issued and outstanding
share capital in a fully diluted base.

During the third quarter of 2003, IBIZ intends to support and
execute the license agreement with Sanyo. Under this agreement, IBIZ
will manufacture a critical component in Sanyo E-Pen product.

(a) PDA Market Perspectives.

The PDA market is now over 10 years old and got its start in
1990 with Apple's Newton. The Newton is considered to be a failure,
but a new industry was born and the name used by Applem PDA, is still
with us. In its first decade, PDA industry unit sales have followed
the PC industry sales volume. When the PC was 10 years old in 1985,
U.S. PC sales hit 5.6M units while worldwide PC sales surpassed 10M
units. In 2000, the U.S. PDA unit sales were 5.5M while worldwide
sales passed 12M devices.

The PDA market currently consists of pen-based PDA's and
keyboard-based PDA's. All Palm-compatible PDA's are pen-based
products, as are Pocket PC PDA's. The use of Keyboard-based PDA's is
currently a niche market, used in vertical markets such as data
collection and inventory control. The latest PDA segment is the
phone-PDA or the combination of a cell phone, PDA and 2-way pager. An
overview of the three PDA segments is presented in the following table:

PDA Market Segment Overview

Pen PDA's Keyboard PDA's Phone PDA's

Description - Pen input - Keyboard input - PDA and cell phone
- Mostly pad form factor - Clamshell form factor - Mostly clamshell
- Display is VGA or less - Mostly Windows CE based - Usually has keyboard
- Display is VGA or VGA - Display is VGA or less

Product Examples - Palm family - Hitachi HPW-200EC - Ericsson R380s
- Handspring Visor - HP Jornada 710, 720 - Handspring Treo
- Compaq iPaq H3xxx - Melard Sidearm - Kyocera QCP-6035
- HP Jornada 525, 548 - NEC MobilPro 780 - Nokia 9110 Communicator

Market Focus - Office market - Vertical markets - Office market
- High-end consumers - Future horizontal markets - High-end consumers

Current Functions - PIM* applications - Vertical applications - Cell phone, PDA
- PC companion - Industrial applications and 2-way pager
replacement

Future Functions - Email & web access - Email & web access - Email & web access
- Multifunction device - Multifunction device - Multifunction device

Market Potential - Dominant segment - Niche market - Emerging segment
- Remains largest segment - Increasing market share - Large potential

The pen PDA is the dominant product segment and it is expected
to remain the largest category for the next 5+ years. The keyboard
PDA will increase in importance as email and web access proliferate.
Even a small keyboard is useful for email and Internet access
applications. There is a large degree of uncertainty in the market
outlook for phone-PDA's. Phone-PDA's are already seeing some success
in Europe, but are barely available in the U.S. Phone-PDA success
probably depends on the rollout of 2.5G and 3G cellular networks, as
"always-on" packet networks make phone-PDA's very useful to many
users. The conservative forecast for the growth of the phone-PDA
market assumes only a small portion of all cell phones will be phone-
PDA's-less than 5% of current cell phone shipment.

(b) PDA Technology Trends.

The capabilities of PDA's will advance rapidly. Advances in
computer, communications, networking and consumer electronics
technologies will make the PDA capabilities five to ten times better
than current products by 2006. Chapter 4 has details on the key
technologies that are advancing PDA functionality. By using the
current rate of technology advances the expected capabilities of
PDA's can be estimated.

The next table is a summary of current PDA capabilities and projected
capabilities in 2006. The 2001 features are quite different between
Palm OS devices and Pocket PC devices and both are listed in the next
table. Pocket PC products have the largest capabilities:

PDA Capabilities

Features 2001 PDA 2006 PDA

Price Range $100-$450 or $300-$600 $350-$450

Main Function Personal information management (PIM) - Phone, PIM, VPN client, thin client
- IM, web browsing, email, fax, messaging

Other Functions - Email & web access - Music player, video conferencing
- MP3 players - Digital camera, scanner

User Interface Pen, Browser Pen, browser & speech recognition

Operating System Palm OS or Pocket PC Palm, Pocket PC, Epoc, Linux

Microprocessor DragonBall 16-33 or RISC 70-206MHz RISC or X86, 800-1,000 MHz

Connectivity - None to 19.2 Kbps cellular dataIrDA - Cellular 3G: Up to 384 Kbps
- Serial or USB - Bluetooth: Up to 2 Mbps
-IEEE 802.11a: Up to 54 Mbps

Display 160x160 to 320x240, Mono or color VGA or full VGA

Program Memory 2-16 MB or 16-64 MBRAM 256-512 Mbytes RAM

Flash Memory 2-4 MB or 16-32 MB 128-256 Mbytes

Expansion Slot Springboard, SD or CompactFlash CompactFlash, SD

Mass Storage Expansion slot devices - 1,024 Mbytes memory card
5 Gbytes hard disk

The 2006 PDA is a multifunction device with a variety of
functionality. Most PDA's will have email and Internet access and
other communication capabilities. Connection to corporate networks
via Virtual Private Networks (VPN) will be standard for office PDA's.
Short-range wireless capabilities via Bluetooth and/or IEEE 802.11
are especially important because they will provide wireless broadband
access to PDA's. Access will only be available near access points or
hot points. By 2006 there may be 100K access points in businesses,
public places and in all types of retail establishments in the U.S.
Worldwide there may be 200K access points by 2006. Phone-PDA's will
also have 2.5G or 3G cellular voice communication capabilities.

Many PDA's will have a digital camera for low-end video
conferencing and to take still pictures. Built-in music players will
also be quite common. Some PDA's will also have scanner for
collecting printed information or scanning bar codes.

PDA memory size will grow by 8-16 times by 2006 and even more
for Palm-based products. Processor performance will improve by at
least 5X and more like 10-20X for Palm PDA's. The 2006 PDA will have
the processing power of a low-end PC in 2001.

The PDA market has been on a rapid growth path since the mid
1990s. The growth will continue strongly, but the days of yearly
sales doubling is over. The current economic slump has lowered the
growth rate substantially in 2001 and future growth is also expected
to be lower than in the late 1990s. A summary of the U.S. and
worldwide PDA market growth is shown in the next table.

PDA sales surpassed 5.5M units in the USA in 2000 and yearly
sales are projected to reach 21M in 2007. U.S. PDA revenue in 2000
reached nearly $2B and will grow to $7.6B in 2007. The table includes
a PDA comparison with the PC industry. The PDA unit and revenue is
expressed as a percentage of the PC market. In 2000 PDA units were at
12% of PC units, which will increase to nearly 37% in 2007. However,
in revenue PDA's only reached 2.2% in 2000 and will reach 8% in 2007.
This is due to the average PC price being 5X the typical PDA price

U.S. and Worldwide PDA Forecast

USA 1998 1999 2000 2001 2003 2005 2007

PDA Unit Sales (#K) 1,946 3,036 5,550 6,645 10,771 15,682 21,112
Unit Growth (%) 78.7 56.1 82.8 19.7 25.3 19.1 15.1
PDA Revenue ($M) 802 1,183 1,991 2,275 3,778 5,680 7,590
Revenue Growth (%) 67.2 47.5 68.3 14.3 27.4 20.3 14.3
PDA AUP ($) 412 390 359 342 351 362 359
PDA/PC Sales (%) 6.49 7.78 12.04 16.08 24.01 30.70 36.85
PDA/PC Revenue (%) 1.18 1.45 2.31 3.23 4.79 5.97 7.05

Worldwide

PDA Unit Sales (#K) 4,124 6,514 12,172 16,377 28,488 43,524 61,369
Unit Growth (%) 58.0 86.9 34.5 29.3 22.0 17.8
PDA Revenue ($M) 1,715 2,512 4,443 5,797 9,724 14,413 19,631
Revenue Growth (%) 46.5 76.9 30.5 26.9 20.1 15.8
PDA AUP ($) 416 386 365 354 341 331 320
PDA/PC Sales (%) 4.47 5.82 9.47 13.06 20.11 25.08 29.43
PDA/PC Revenue (%) 0.80 1.06 1.79 2.60 4.02 4.95 5.75

Worldwide PC sales topped 12M units in 2000 and are projected to
reach 61M devices in 2007 for a compound annual growth rate of 26%.
PDA unit sales will grow from 5.8% of PC sales in 2000 to 29.4% of PC
sales in 2007. Worldwide PDA revenue will grow from $4.4B in 2000 to
$19.6B in 2007. Compared to the PC market, PDA revenue will increase
from 1.8% of worldwide PC revenue in 2000 to 5.8% in 2007.

(d) PDA Product Segments.

For each geographic region the PDA product segment sales for
keyboard PDA's, pen PDA's and phone-PDA's were estimated and
projected until 2007. The phone-PDA category is difficult to project
since there is minimal sales history in the U.S. market. The strong
future growth of phone-PDA's is based on recent success in Europe,
where phone-PDA's have reached a market share of about 30% of total
PDA sales. The positive reaction and reviews of Handspring's Treo is
another reason for a growth forecast.

The pen PDA is the clear leader with 4.9M units sold in 2000,
which will grow to 13M in 2007. Pen-based PDA's accounted for 89% of
total sales in 2000, which will decline below 61% in 2007. Phone-PDA
sales were negligible in 2000, but will grow to 5.5M units in 2007.
Keyboard PDA sales will grow from 0.6M in 2000 to 2.6M units in 2007.
Cumulative USA sales of Pen PDA's will jump from 10M units at year-
end 2000 to over 78M at the end of 2007.

Keyboard PDA unit sales reached 2.9M devices in 2000 and is
forecasted to grow to 9.8M units in 2007. Phone-PDA's will grew from
only 0.2M units in 2000 to 18.7M units in 2007. Cumulative sales of
pen PDA's reached 23M units in 2000 and will top 186M devices in
2007. Cumulative sales of phone-PDA's will zoom from 0.2M in 2000 to
56M in 2007.

(e) PDA Operating System Trends.

After Palm introduced its Palm Pilot PDA's in 1996, the Palm OS
has rapidly gained market share and it is now the leading operating
system. The Palm OS will retain its lead in the U.S., but it will see
much stiffer competition from Microsoft's Pocket PC. Compaq, HP and
several other leading PC vendors have introduced Pocket PC-based
products that are now growing faster than the overall market. Linux-
based PDA's are also appearing and may do well in a few years.
Several phone-PDA's are using Symbian's Epoc OS and this will give
the Palm OS further competition. The "Other OS" category includes
Linux, Epoc and proprietary operating systems.

PDA's based on Microsoft's Pocket PC and Windows CE are expected
to gain market share and unit sales will increase from 0.8M in 2000
to 9M in 2007. Cumulative sales of Windows CE/Pocket PC products will
increase from 2.9M in 2000 to nearly 35M units in 2007. Other OS-
devices will grow due to the impact of Symbian-based phone-PDA's and
Linux devices-from 0.36M units in 2000 to 2.9M in 2007.

Windows CE/Pocket PC devices will grow from 2.2M units in 2000
to over 24M units in 2007 and will overtake the Palm OS in 2005.
Cumulative sales of Windows CE-Pocket PC devices topped 9M devices in
2000 and will surpass 101M units in 2007. Other OS device sales were
3.2M units in 2000 and will pass Palm OS devices in 2006 and are
projected to reach over 20M units in 2007. Cumulative sales of Other
OS-based PDA's will reach 90M units at year-end 2007-up from 9.6M
units in 2000.

(f) Summary of Business of IBIZ.

IBIZ Technology Corp. entered the growing PDA market in 1998
with a single keyboard input device that was designed with open
connectivity. Today, IBIZ Technoloy Corp. has more than eighty
different products addressing every PDA currently available, from the
new Xela Case Keyboard, Portable Card Readers, FM and TV tuner CF
(Compact Flash I) and SD (Secure Digital)cards to travel kits
comprised of A/C adapters, 12 volt chargers and USB sync cables. Our
mission has been to enhance and add usable value to the PDA. The
computer power of the PDA allows many applications to converge into a
single multi purpose computer platform. Everything from data base
management to remote control applications including a simple garage
door opener can be combined into a single device. IBIZ Technology
Corp. will continue to distribute its product line in the United
States providing sub-licenses for all products to IBIZ for worldwide
distribution. IBIZ will sign distribution agreements with IBIZ
Technology Corp. for distribution of its products in the United
States. IBIZ will support IBIZ Technology Corp. in engineering,
production, and business development through synergetic agreements
using Endeavour Capital and its affiliates infrastructure in Europe
and Israel.

Late in the third quarter of 2003, IBIZ intends to start
production and distribution of the Light Key and E-Pen products and
support the license agreement provided to Sanyo for the E-Pen Product.

Plan of Operation.

On July 11, 2002, IBIZ acquired the intellectual property and
marketing rights for the Xela Case Keyboard, which is currently
scheduled for mass production and shipping at the beginning of the
second quarter of fiscal year 2003. IBIZ Technology Corp will license
IBIZ to manufacture and distribute the products worldwide (except USA)

IBIZ will market and distribute products directly to end users
through a direct sales force, regional resellers, value-added
providers in the banking and point-of-sale ("POS") market and
Internet commerce sites. IBIZ will utilize IBIZ Technology Corp
marketing channels, sales force, and expertise to distribute all of
the Company's product lines in the United States.

In addition to direct sales, IBIZ also markets its full range of
products directly to retail customers through IBIZ Technology Corp
website at www.IBIZcorp.com or www.IBIZpda.com. To date, IBIZ has
recognized only nominal revenues from Internet retail sales, however,
we are continuing to see moderate revenue increases through this
venue. Management believes that direct sales to end users should
allow IBIZ to more efficiently and effectively meet customer needs by
providing products which are tailored for the customer's individual
requirements at a more economical price.

IBIZ and IBIZ Technology Corp also distribute their products to
regional resellers and, to a lesser extent, national distributors and
to retail stores such as CompUSA, Inc. and Fry's Electronics,
Staples, Mobileplanet, Micro Center, RC Willeys, Baillios, Pdamart
and Outpost.com.

IBIZ's products will be engineered by the Endeavour AG
engineering team and manufactured by various entities in Taiwan and
Mainland China and Israel. Manufacturers will build IBIZ AG products
to specifications designed by Endeavour's engineering team, using
standard components and several proprietary components allowing IBIZ
AG market and distribution control. Although IBIZ has not
experienced difficulties in the past relating to engineering and
manufacturing, the failure of IBIZ's manufacturers to produce
products of sufficient quantity and quality could adversely affect
IBIZ's ability to sell the products its customers' demand.

IBIZ and IBIZ AG will engage in final assembly, functional
testing and quality control of its products in its Phoenix, Arizona
and Israel facilities. Management believes IBIZ's completion of the
final stages of manufacturing allows IBIZ to ensure quality control
for its products manufactured overseas.

On July 11, 2002 IBIZ purchased intellectual property assets for
the Xela Case Keyboard including the patent application S/N T001
P00547-US1, trademark application S/N: 78/139,898 and resale rights
from Tools, LLC, a Rhode Island limited liability company. Currently
Patent and Trademark applications are in due process with the United
States Patent and Trademark Office. The trademark application for
XELA was published by the Patent and Trademark office in the Official
Gazette on January 7, 2003 for the purpose of opposition. IBIZ will
license IBIZ AG to produce, sell, distribute and sub-license the Xela
product and its license.

IBIZ provides its customers with a comprehensive service and
support program. Technical support is provided to customers via a
toll-free telephone number as well as through the IBIZ website. The
number is available Monday through Friday 8:00 a.m. to 5:00 p.m.,
Mountain Time. In addition, IBIZ AG will provide customer service in
Europe via IBIZ AG Zurich office Monday through Friday 9:00 a.m. to
6:00 p.m. GMT.

Also available on IBIZ's website are links to files for software
patches and drivers used for software updates.

Risk Factors Connected with Plan of Operation.

(a) Limited Prior Operations, History of Operating Losses, and
Accumulated Deficit May Affect Ability of Company to Survive.

IBIZ has had limited prior operations to date and it had a
limited record of revenue-producing operations. Consequently, there
is only a limited operating history upon which to base an assumption
that IBIZ will be able to achieve its business plans. In addition,
IBIZ has only limited assets. As a result, there can be no assurance
that IBIZ will generate significant revenues in the future; and there
can be no assurance that IBIZ will operate at a profitable level. If
IBIZ is unable to obtain customers and generate sufficient revenues
so that it can profitably operate, IBIZ's business will not succeed.
Accordingly, IBIZ's prospects must be considered in light of the
risks, expenses and difficulties frequently encountered in connection
with the establishment of a new business in a highly competitive
industry, characterized by new product introductions.

IBIZ incurred a net loss of $362,871 for the fiscal year ended
October 31, 2002 period, and a net loss of $492,652 for the six month
ended April 30, 2002. At April 30, 2003, IBIZ had an accumulated
deficit of $855,523. This raises substantial doubt about IBIZ's
ability to continue as a going concern.

(b) Need for Additional Financing May Affect Operations and Plan of
Business.

Current funds available to IBIZ will not be adequate for it to
be competitive in the areas in which it intends to operate. IBIZ's
continued operations, as well as the implementation of its business
plan, therefore will depend upon its ability to raise additional
funds through bank borrowings, equity or debt financing. IBIZ
estimates that it will need to raise up to approximately $1,000,000
over the next 12 months for these purposes.

There is no guarantee that these funding sources, or any others,
will be available in the future, or that they will be available on
favorable terms. In addition, this funding amount may not be adequate
for IBIZ to fully implement its business plan. Thus, the ability of
IBIZ to continue as a going concern is dependent on additional
sources of capital and the success of IBIZ's business plan.
Regardless of whether IBIZ's cash assets prove to be inadequate to
meet IBIZ's operational needs, IBIZ might seek to compensate
providers of services by issuance of stock in lieu of cash.

If funding is insufficient at any time in the future, IBIZ may
not be able to take advantage of business opportunities or respond to
competitive pressures, any of which could have a negative impact on
the business, operating results and financial condition. In
addition, if additional shares were issued to obtain financing,
current shareholders may suffer a dilutive effect on their percentage
of stock ownership in IBIZ.

IBIZ's success and ability to compete will be dependent in part
on the protection of its potential patents, trademarks, trade names,
service marks and other proprietary rights. IBIZ intends to rely on
trade secret and copyright laws to protect the intellectual property
that it plans to develop, but there can be no assurance that such
laws will provide sufficient protection to IBIZ, that others will not
develop a service that are similar or superior to IBIZ's, or that
third parties will not copy or otherwise obtain and use IBIZ's
proprietary information without authorization. In addition, certain
of IBIZ's know-how and proprietary technology may not be patentable.

IBIZ may rely on certain intellectual property licensed from
third parties, and may be required to license additional products or
services in the future, for use in the general operations of its
business plan. IBIZ currently has no licenses for the use of any
specific products. There can be no assurance that these third party
licenses will be available or will continue to be available to IBIZ
on acceptable terms or at all. The inability to enter into and
maintain any of these licenses could have a material adverse effect
on IBIZ's business, financial condition or operating results.

There is a risk that some of IBIZ's products may infringe the
proprietary rights of third parties. In addition, whether or not
IBIZ's products infringe on proprietary rights of third parties,
infringement or invalidity claims may be asserted or prosecuted
against it and it could incur significant expense in defending them.
If any claims or actions are asserted against IBIZ, it may be required
to modify its products or seek licenses for these intellectual
property rights. IBIZ may not be able to modify its products or
obtain licenses on commercially reasonable terms, in a timely manner
or at all. IBIZ's failure to do so could have a negative affect our
business and adversely our revenues.

(d) Product Errors Could Affect Impact Business of IBIZ.

IBIZ (and soon to be IBIZ AG) develops products that are
extremely complex, and the products it produces may contain
undetected errors when first introduced or when new updated versions
are released to the marketplace. Despite IBIZ's rigorous product
testing procedures and testing by current and potential customers, it
is possible that errors will be found in new products or upgrades
after commencement of commercial shipments. The occurrence of
product defects or errors could result in adverse publicity, delay in
product introduction, diversion of resources to remedy defects, loss
of or a delay in market acceptance, claims by customers against us,
or could cause us to incur additional costs, any of which could
adversely affect our business.

(e) Dependence on Outsourced Manufacturing May Affect Ability to
Bring Products to Market.

The risks of association with outsourced manufacturers are
related to aspects of these firms' operations, finances and
suppliers. IBIZ may suffer losses if the outside manufacturer fails
to perform its obligations to manufacture and ship the product
manufactured. These manufacturers' financial affairs may also affect
IBIZ's ability to obtain product from these firms in a timely fashion
should they fail to continue to obtain sufficient financing during a
period of incremental growth. IBIZ intends to maintains a strong
relationship with these manufacturers to ensure that any issues they
may face are dealt with in a timely manner.

(f) No Assurance of Market Acceptance May Affect Ability to Sell
Products.

There can be no assurance that any products successfully
developed by IBIZ or its corporate collaborators, if approved for
marketing, will ever achieve market acceptance. IBIZ's products, if
successfully developed, may compete with a number of traditional
products manufactured and marketed by major e-commerce and technology
companies, as well as new products currently under development by
such companies and others. The degree of market acceptance of any
products developed by IBIZ or its corporate collaborators will depend
on a number of factors, including the establishment and demonstration
of the efficacy of the product candidates, their potential advantage
over alternative methods and reimbursement policies of government and
third party payors. There can be no assurance that the marketplace
in general will accept and utilize any products that may be developed
by IBIZ or its corporate collaborators.

The standards for the products marketed by IBIZ may not achieve
broad market acceptance or market acceptance may be slower than IBIZ
expected. Additionally, if a new standard emerges that is more
accepted by the marketplace, IBIZ may not be successful in developing
products that comply with that standard on a timely basis unable. To
be successful, IBIZ will need to effectively respond on a timely
basis to future changes in the ever-expanding markets in which IBIZ
sells its software products. The markets for IBIZ's products are at
early stages of development and are rapidly expanding .

(g) Substantial Competition May Affect Ability to Sell Products.

The handheld computer industry is highly competitive. IBIZ
competes at the product level with various other handheld computer
manufacturers and at the distribution level primarily with computer
retailers, on-line marketers and the direct sales forces of large PDA
manufacturers.

At the product level, the PDA industry is characterized by rapid
technological advances in both hardware and software development and
by the frequent introduction of new and innovative products. There
are approximately 14 manufacturers of personal computers, the
majority of which have greater financial, marketing and technological
resources than IBIZ. Competitors at this level include Palm, HP,
Dell, Sony, and Handspring, however, most key PDA manufacturers
outsource or private label PDA accessory products from companies
similar to IBIZ.

Competitive factors include product quality and reliability,
price to performance characteristics, marketing capability, and
corporate reputation. In addition, a segment of the industry competes
primarily for customers on the basis of price. Although IBIZ's
products are price competitive, IBIZ does not attempt to compete
solely on the basis of price.

The intense nature of competition in the computer industry
subjects IBIZ to numerous competitive disadvantages and risks. For
example, many major companies will exclude consideration of IBIZ's
products due to limited size of IBIZ. Moreover, IBIZ's current
revenue levels cannot support a high level of national or
international marketing and advertising efforts. This, in turn, makes
it more difficult for IBIZ to develop its brand name and create
customer awareness. Also, some competitors in its industry have
greater experience, resources, and managerial capabilities than IBIZ
and may be in a better position than IBIZ to obtain access to attract
customers.

Additionally, IBIZ's current and future competitors may develop
products or systems that may be comparable or superior to those
developed by it or adapt more quickly than it to new technologies,
evolving industry standards or customer requirements. Increased
competition could result in price reductions, reduced margins and
loss of market share, any or all of which could have a material
adverse effect on our business, financial condition, results of
operations and prospects.

Additionally, IBIZ's products are manufactured by third parties
in Taiwan or China. As such, IBIZ is subject to numerous risks and
uncertainties of reliance on offshore manufacturers, including, taxes
or tariffs, non-performance, quality control, and civil unrest. Also,
as IBIZ holds few patents, the vast majority of parts used in its
products are available to its competitors.

Management believes that it can compete effectively by providing
PDA accessories utilizing unique designs and space-saving qualities.
Although Management believes it has been successful to date, there
can be no assurance that IBIZ will be able to compete successfully in
the future.

(h) Government Regulations May Affect the Ability of IBIZ to Operate.

Because IBIZ sells its products internationally, as well as
domestically, it must comply with federal laws that relate to the
export and applicable foreign government laws regulating the import
of our products. However, the federal government may rescind these
approvals at any time. Under current regulations these products can
be exported without a license to most countries for use by banks,
money transfer companies, general online and traditional merchants
organizations.

Additionally, IBIZ may apply for export approval, on a specific
case-by-case basis, for specific future products. Government export
regulation for security products is less stringent for products
designed for banking, finance, and e-commerce. It is possible that
IBIZ will not receive approval to export future products on a timely
basis, on the basis we request, or at all. As a result of government
regulation of our products, IBIZ may be at a disadvantage when
competing for international sales with foreign companies not subject
to these restrictions.

Various aspects of IBIZ's business are subject to governmental
regulation in the United States and other countries in which it
operates. Failure to comply with such regulation may, depending upon
the nature of the noncompliance, result in the suspension or
revocation of any license or registration at issue, the termination
or loss of any contract at issue or the imposition of contractual
damages, civil fines or criminal penalties. IBIZ has experienced no
material difficulties in complying with the various laws and
regulations affecting its business.

(i) Other External Factors May Affect Viability of Company.

The industry of IBIZ in general is a speculative venture
necessarily involving some substantial risk. There is no certainty
that the expenditures to be made by IBIZ will result in commercially
profitable business. The marketability of its products will be
affected by numerous factors beyond the control of IBIZ. These
factors include market fluctuations, and the general state of the
economy (including the rate of inflation, and local economic
conditions), which can affect peoples' spending. Factors that leave
less money in the hands of potential customers of IBIZ will likely
have an adverse effect on IBIZ. The exact effect of these factors
cannot be accurately predicted, but the combination of these factors
may result in IBIZ not receiving an adequate return on invested capital.

(j) Control by Officers and Directors Over Affairs of IBIZ May
Override Wishes of Other Stockholders.

All decisions with respect to the management of IBIZ will be
made exclusively by the officers and directors of IBIZ. Investors
will only have rights associated with stockholders to make decisions
that effect IBIZ. Accordingly, it could be difficult for the
investors hereunder to effectuate control over the affairs of IBIZ.

Therefore, the success of IBIZ, to a large extent, will depend
on the quality of the directors and officers of IBIZ. Accordingly,
no person should invest in IBIZ unless he is willing to entrust all
aspects of the management of IBIZ to the officers and directors.

(k) Loss of Any of Current Management Could Have Adverse Impact on
Business and Prospects for Company.

IBIZ's success is dependent upon the hiring and retention of key
personnel. None of IBIZ's officers and directors currently has an
employment or non-competition agreement with IBIZ. Therefore, there
can be no assurance that these other personnel will remain employed
by IBIZ. Should any of these individuals cease to be affiliated with
IBIZ for any reason before qualified replacements could be found,
There could be material adverse effects on IBIZ's business and prospects.

IBIZ's success will also be highly dependent on its ability to
attract and retain qualified employees. Competition for employees is
intense in the hardware industry. To date, IBIZ believes it has been
successful in its efforts to recruit qualified employees, but there is
no assurance that it will continue to be as successful in the future.
IBIZ believes relations with its employees are more than satisfactory.

(l) Potential Conflicts of Interest May Affect Ability of Officers
and Directors to Make Decisions in the Best Interests of Company.

The officers and directors have other interests to which they
devote time, either individually or through partnerships and
corporations in which they have an interest, hold an office, or serve
on boards of directors, and each will continue to do so
notwithstanding the fact that management time may be necessary to the
business of IBIZ. As a result, certain conflicts of interest may
exist between IBIZ and its officers and/or directors that may not be
susceptible to resolution.

In addition, conflicts of interest may arise in the area of
corporate opportunities that cannot be resolved through arm's length
negotiations. All of the potential conflicts of interest will be
resolved only through exercise by the directors of such judgment as
is consistent with their fiduciary duties to IBIZ. It is the
intention of management, so as to minimize any potential conflicts of
interest, to present first to the board of directors to IBIZ, any
proposed investments for its evaluation.

(m) Limitations on Liability, and Indemnification, of Directors and
Officers May Result in Expenditures by Company.

IBIZ's articles of incorporation include provisions to
eliminate, to the fullest extent permitted by the Nevada Revised
Statutes as in effect from time to time, the personal liability of
directors of IBIZ for monetary damages arising from a breach of their
fiduciary duties as directors. The By-Laws of IBIZ also include
provisions to the effect that IBIZ may indemnify any director,
officer, or employee. Any limitation on the liability of any
director, or indemnification of directors, officer, or employees,
could result in substantial expenditures being made by IBIZ in
covering any liability of such persons or in indemnifying them.

(n) Absence of Cash Dividends May Affect Investment Value of
Company's Stock.

The Board of Directors does not anticipate paying cash dividends
on the common stock for the foreseeable future and intends to retain
any future earnings to finance the growth of IBIZ's business. Payment
of dividends, if any, will depend, among other factors, on earnings,
capital requirements and the general operating and financial
conditions of IBIZ as well as legal limitations on the payment of
dividends out of paid-in capital.

(o) No Cumulative Voting May Affect Ability of Some Shareholders to
Influence Mangement of Company.

Holders of the shares of common stock of IBIZ are not entitled
to accumulate their votes for the election of directors or otherwise.
Accordingly, the holders of a majority of the shares present at a
meeting of shareholders will be able to elect all of the directors of
IBIZ, and the minority shareholders will not be able to elect a
representative to IBIZ's board of directors.

(p) No Assurance of Public Trading Market and Risk of Low Priced
Securities May Affect Market Value of Company's Stock.

There has been no public market for the common stock of IBIZ.
IBIZ intends to apply for listing on the Over the Counter Bulletin
Board. However, until such times as the common stock of IBIZ is so
listed, if its is successful in such application, and even
thereafter, an investor may find it difficult to dispose of, or to
obtain accurate quotations as to the market value of IBIZ's
securities. In addition, the common stock of IBIZ upon such listing
will be subject to the low-priced security or so called "penny stock"
rules that impose additional sales practice requirements on broker-
dealers who sell such securities. The Securities Enforcement and
Penny Stock Reform Act of 1990 requires additional disclosure in
connection with any trades involving a stock defined as a penny stock
(generally, according to recent regulations adopted by the U.S.
Securities and Exchange Commission, any equity security that has a
market price of less than $5.00 per share, subject to certain
exceptions), including the delivery, prior to any penny stock
transaction, of a disclosure schedule explaining the penny stock
market and the risks associated therewith. The regulations
governing low-priced or penny stocks sometimes limit the ability of
broker-dealers to sell IBIZ's common stock and thus, ultimately, the
ability of the investors to sell their securities in the secondary market.

(q) Failure to Maintain Market Makers May Affect Value of Company's Stock.

If IBIZ attains listing on the Over the Counter Bulletin Board
and thereafter is unable to maintain a National Association of
Securities Dealers, Inc. member broker/dealers as market makers, the
liquidity of the common stock could be impaired, not only in the
number of shares of common stock which could be bought and sold, but
also through possible delays in the timing of transactions, and lower
prices for the common stock than might otherwise prevail.
Furthermore, the lack of market makers could result in persons being
unable to buy or sell shares of the common stock on any secondary
market. There can be no assurance IBIZ will be able to maintain such
market makers.

(r) Forward Looking Statements.

The foregoing plan of operation contains "forward looking
statements" within the meaning of Rule 175 under the Securities Act
of 1933, as amended, and Rule 3b-6 under the Securities Act of 1934,
as amended, including statements regarding, among other items, IBIZ's
business strategies, continued growth in IBIZ's markets, projections,
and anticipated trends in IBIZ's business and the industry in which
it operates. The words "believe," "expect," "anticipate," "intends,"
"forecast," "project," and similar expressions identify forward-
looking statements. These forward-looking statements are based
largely on IBIZ's expectations and are subject to a number of risks
and uncertainties that are beyond IBIZ's control. IBIZ cautions that
these statements are further qualified by important factors that
could cause actual results to differ materially from those in the
forward looking statements, including, among others, the following:
reduced or lack of increase in demand for IBIZ's products,
competitive pricing pressures, changes in the market price of
ingredients used in IBIZ's products and the level of expenses
incurred in IBIZ's operations. In light of these risks and
uncertainties, there can be no assurance that the forward-looking
information contained in this document will in fact transpire or
prove to be accurate. IBIZ disclaims any intent or obligation to
update "forward looking statements."

Management of IBIZ.

The names, ages, and respective positions of the directors,
executive officers, and key employees of IBIZ are set forth below;
there are no other promoters or control persons of IBIZ. The
directors named below will serve until the next annual meeting of
IBIZ's stockholders or until their successors are duly elected and
qualified. Directors are elected for a one-year term at the annual
stockholders' meeting. Officers will hold their positions at the
will of the board of directors, absent any employment agreement.
There are no arrangements, agreements or understandings between non-
management shareholders and management under which non-management
shareholders may directly or indirectly participate in or influence
the management of IBIZ's affairs. The directors and executive
officers of IBIZ are not a party to any material pending legal
proceedings and, to the best of their knowledge, no such action by or
against them has been threatened.

(a) Kenneth W. Schilling, Chief Executive Officer/Director.

Mr. Schilling, age 51, founded the Company's predecessor,
SouthWest Financial Systems, in 1979, and has been chief executive
officer, president and a director from that time to the present. He
has also held the same positions with IBIZ from its founding on
November 1, 2001 to the present. Mr. Schilling studied for a B.S. in
electrical engineering at the University of Pittsburgh from 1970 to
1972, but left for military service prior to receiving his degree.

(b) Yigal Baruchi, Director.

Mr. Baruchi, age 56, has 30 years of experience in management of
public companies. From March 2002 to the present, he has served as
an officer of Koor Industries\Telrad Networks Group. His
responsibilities have included the composition and overview of a
restructuring plan, compilation of a policy regarding Koor Corporate
Venture Capital's activities going forward, and a review of different
steps to increase value of Telrad Networks, including merger of
activities and moving into new fields. For the period of 1977 to
2002, Mr. Baruchi served as the president and CEO of Traded Elbit
Ltd., where his responsibilities included determining the company's
strategy, company growth, creating shareholder value, establishment
of Partner-Orange (Israel's third cellular operator) and investment
in start-ups. He was appointed a director of the Company and IBIZ on
July 28, 2003.

Mr. Perkins, age 39, joined the Company in 1994 and currently
serves as executive vice president. He was appointed to the
Company's board of directors on March 5, 1999. Mr. Perkins has also
held the same positions with IBIZ from its founding on November 1,
2001 to the present. Prior to his joining the Company, he was
employed at American Express as a project manager for major systems
implementation, a position he held for eight years. Mr. Perkins
earned a degree in business management from California State
University-Sonoma.

Description of Securities to be Issued.

(a) General Description.

The authorized capital stock of the IBIZ consists of
100,000,000 shares of common stock, par value $0.001. IBIZ also has
authorized 10,000,000 shares of preferred stock, par value $0.001.
The holders of the common stocks:

(a) have equal ratable rights to dividends from funds legally
available therefore, when, as, and if declared by the Board of
Directors of IBIZ;

(b) are entitled to share ratably in all of the assets of IBIZ
available for distribution upon winding up of the affairs of
IBIZ; and

(c) are entitled to one non-cumulative vote per share on all
matters on which shareholders may vote at all meetings of
shareholders.

These securities do not have any of the following rights:

(a) cumulative or special voting rights;

(b) preemptive rights to purchase in new issues of shares;

(d) preference upon liquidation; or

(e) any other special rights or preferences. In addition, the
Shares are not convertible into any other security.

There are no restrictions on dividends under any loan other financing
arrangements or otherwise. As of the date of this filing, IBIZ had
1,000 shares of common stock issued and outstanding.

(b) Non-Cumulative Voting.

The holders of shares of common stock of IBIZ will not have
cumulative voting rights, which means that the holders of more than
50% of such outstanding Shares, voting for the election of directors,
can elect all of the directors to be elected, if they so choose. In
such event, the holders of the remaining Shares will not be able to
elect any of IBIZ's directors.

IBIZ does not currently intend to pay cash dividends. Because
IBIZ does not intend to make cash distributions, potential
shareholders would need to sell their shares to realize a return on
their investment. There can be no assurances of the projected values
of the shares, or can there be any guarantees of the success of IBIZ.
A distribution of revenues will be made only when, in the
judgment of IBIZ's board of directors, it is in the best interest of
IBIZ's stockholders to do so. The board of directors will review,
among other things, the financial status of IBIZ and any future cash
needs of IBIZ in making its decision.

(d) Possible Anti-Takeover Effects of Authorized but Unissued Stock.

IBIZ's authorized but unissued capital stock currently consists
of 99,999,000 shares of common stock. One effect of the existence of
authorized but unissued capital stock may be to enable the Board of
Directors to render more difficult or to discourage an attempt to
obtain control of IBIZ by means of a merger, tender offer, proxy
contest, or otherwise, and thereby to protect the continuity of IBIZ's
management. If, in the due exercise of its fiduciary obligations, for
example, the Board of Directors were to determine that a takeover
proposal was not in IBIZ's best interests, such shares could be issued
by the Board of Directors without stockholder approval in one or more
private placements or other transactions that might prevent, or render
more difficult or costly, completion of the takeover transaction by
diluting the voting or other rights of the proposed acquiror or
insurgent stockholder or stockholder group, by creating a substantial
voting block in institutional or other hands that might undertake to
support the position of the incumbent Board of Directors, by effecting
an acquisition that might complicate or preclude the takeover, or otherwise.

By order of the Board of Directors
July 20, 2003

/s/ Kenneth W. Schilling
Kenneth W. Schilling, Chief Executive Officer

Financial Statements.

INDEPENDENT AUDITORS' REPORT

To The Board of Directors of
IBIZ, Inc.

We have audited the accompanying balance sheet of IBIZ, Inc. (the
"Company") as of October 31, 2002 and the related statements of
operations and accumulated deficit and of cash flows for the year
then ended. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
the financial statements based on our audit.

We conducted our audit in accordance with auditing standards
generally accepted in the United States of America. 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 that our audit
provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respect, the financial position of IBIZ, Inc.
at October 31, 2002 and the results of its operations and its cash
flows for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in
Note 1 to the financial statements, the Company has incurred
significant operating losses, has negative working capital, lacks
sufficient operating cash to purchase products to fill sales orders,
is delinquent in the payment of payroll taxes and is delinquent in
payment of some wages. These conditions raise substantial doubt
about its ability to continue as a going concern. Management's plans
regarding these matters also are described in Note 1. The financial
statements do not include any adjustments that might result from the
outcome of these uncertainties.

/s/ Farber & Hass LLP
Farber & Hass LLP
Oxnard, California
January 17, 2003

IBIZ, INC.
BALANCE SHEET
OCTOBER 31, 2002

ASSETS

CURRENT ASSETS:
Cash and cash equivalents $ 677
Accounts receivable, net 11,867
Inventories 95,601
Prepaid expenses 8,000

TOTAL ASSETS $ 116,145

LIABILITIES AND STOCKHOLDER'S DEFICIT

CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 72,657
Accrued wages and bonuses 83,683
Payroll taxes payable 11,767
Deferred income 5,916
Due to related entities:
IBIZ Technology Corp. 118,822
Invnsys Technology Corporation 186,170
Total current liabilities 479,015

COMMITMENTS AND CONTINGENCIES

STOCKHOLDER'S DEFICIT:
Preferred stock, $0.001 par value; 10,000,000
shares authorized; -0- shares issued and
outstanding
Common stock, $0.001 par value; 100,000,000
shares authorized; 1,000 shares issued
and outstanding 1
Accumulated deficit (362,871)
Total stockholder's deficit (362,870)

TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT $ 116,145

See notes to financial statements

IBIZ, INC.
STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
FOR THE YEAR ENDED OCTOBER 31, 2002

REVENUES:
Sales $ 309,554
Maintenance 32,093
Service 9,002
Total revenues 350,649

COST OF GOODS SOLD 365,821

GROSS LOSS (15,172)

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 324,789

LOSS FROM OPERATIONS (339,961)

OTHER INCOME (EXPENSE):
Interest income 77
Interest expense (22,987)
Other expense, net (22,910)

NET LOSS (362,871)

ACCUMULATED DEFICIT, BEGINNING OF YEAR 0

ACCUMULATED DEFICIT, END OF YEAR $(362,871)

See notes to financial statements

IBIZ, INC.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED OCTOBER 31, 2002

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(362,871)
Adjustments to reconcile net loss to net cash
used by operating activities:
Provision for uncollectible accounts 12,827
Changes in operating assets and liabilities:
Accounts receivable (24,694)
Inventories (95,601)
Prepaid expenses (8,000)
Accounts payable and accrued expenses 72,657
Accrued wages and taxes 95,450
Deferred income 5,916
Net cash used by operating activities (304,316)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds received from related entities 304,992
Proceeds from the issuance of common stock 1
Net cash provided by financing activities 304,993

NET INCREASE IN CASH AND CASH EQUIVALENTS 677

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 0

CASH AND CASH EQUIVALENTS, END OF YEAR 677

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest $ 22,987
Cash paid for taxes $ 0

See notes to financial statements

IBIZ, INC.
NOTES TO FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business Description - IBIZ, Inc. (the "Company") was organized on
October 30, 2001, under the laws of the State of Nevada. The Company
designs, manufactures (through subcontractors), and distributes a
line of accessories for the PDA and handheld computer market which
are distributed through large retail chain stores and e-commerce
sites throughout the United States. The Company also markets LCD
monitors, OEM notebook computers, third party software, and general
purpose financial application keyboards.

The Company is a wholly owned subsidiary of IBIZ Technology Corp.
("Corp"), a publicly held corporation.

Cash and Cash Equivalents - For purposes of the statement of cash
flows, the Company considers all highly liquid debt instruments
purchased with an original maturity of three months or less to be
cash equivalents.

Accounts Receivable - Accounts receivable are reported at the
customers' outstanding balances less any allowance for doubtful
accounts. Interest is not accrued on overdue accounts receivable and
the Company normally does not require collateral to support its
accounts receivable.

Allowance for Doubtful Accounts - The allowance for doubtful accounts
on accounts receivable is charged to income in amounts sufficient to
maintain the allowance for uncollectible accounts at a level
management believes is adequate to cover any probable losses.
Management determines the adequacy of the allowance based on
historical write-off percentages and information collected from
individual customers. Accounts receivable are charged off against
the allowance when collectibility is determined to be permanently
impaired (bankruptcy, lack of contact, account balance over one year
old, etc.).

Inventories - Inventories are stated at the lower of cost (determined
principally by average cost) or market. The inventories are
comprised of finished products at October 31, 2002.

Disclosure About Fair Value of Financial Instruments - The Company
has financial instruments, none of which are held for trading
purposes. The Company estimates that the fair value of all financial
instruments at October 31, 2002, as defined in Financial Accounting
Standards Board ("FASB") 107, does not differ materially from the
aggregate carrying values of its financial instruments recorded in
the accompanying balance sheet. The estimated fair value amounts
have been determined by the Company using available market
information and appropriate valuation methodologies. Considerable
judgment is required in interpreting market data to develop the
estimates of fair value, and accordingly, the estimates are not
necessarily indicative of the amounts that the Company could realize
in a current market exchange.

Revenue Recognition

Product sales - when the goods are shipped and title passes to the
customer.

Maintenance agreements - income from maintenance agreements is being
recognized on a straight-line basis over the life of the service
contracts. The unearned portion is recorded as deferred income.

Service income - when services are performed.

Shipping and Handling Costs - The Company's policy is to classify
shipping and handling costs as part of cost of goods sold in the
statement of operations.

Advertising - All direct advertising costs are expensed as incurred.
The Company charged to operations $10,965 in advertising costs for
the year ended October 31, 2002.

Research and Development - The Company expenses research and
development costs as incurred.

Interest Expense - The Company incurred interest expense during 2002
from factoring its receivables. The agreement with the factor was
terminated prior to year-end.

Income Taxes - Provisions for income taxes are based on taxes payable
or refundable for the current year and deferred taxes on temporary
differences between the amount of taxable income and pretax financial
income and between the tax bases of assets and liabilities and their
reported amounts in the financial statements. Deferred tax assets and
liabilities are included in the financial statements at currently
enacted income tax rates applicable to the period in which the
deferred tax assets and liabilities are expected to be realized or
settled as prescribed in FASB Statement No. 109, "Accounting for
Income Taxes". As changes in tax laws or rates are enacted, deferred
tax assets and liabilities are adjusted through the provision for
income taxes.

Concentration of Risk

Industry

The Company's products are directed to the computer and technology-
related industry. This industry experiences a high degree of
obsolescence and changes in buying patterns. The Company must expend
funds for research and development and identification of new products
in order to stay competitive.

Financial Instruments

Financial instruments that potentially subject the Company to
concentrations of credit risk consist principally of trade accounts
receivable.

Concentrations of credit risk with respect to trade receivables are
normally limited due to the large number of customers comprising the
Company's customer base and their dispersion across different
geographic areas. The Company routinely assesses the financial
strength of its customers.

At October 31, 2002, two customers accounted for 62% (49% and 13%,
respectively) of net receivables.

Purchases

The Company relies primarily on two suppliers for its products. The
loss of either supplier could have a material impact on the Company's
operations. Purchases for the year ended 2002 totaled 58% and 23%,
respectively, from each supplier.

Revenues

For the year ended October 31, 2002, the Company had two customers
that exceeded 10% of total revenues (14% and 13%, respectively).

Pervasiveness of Estimates - The preparation of financial statements
in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ
from those estimates.

Recent Accounting Pronouncements - The FASB recently issued the
following statements:

FASB 144 - Accounting for the Impairment or Disposal of Long-
Lived Assets

FASB 145 - Rescission of FASB Statements 4, 44 and 64 and
Amendment of FASB 13

FASB 146 - Accounting for Costs Associated with Exit or Disposal
Activities

FASB 147 - Acquisitions of Certain Financial Institutions

FASB 148 - Accounting for Stock-Based Compensation

These FASB statements did not, or are not expected to, have a
material impact on the Company's financial position and results of
operations.

Going Concern - These financial statements are presented on the basis
that the Company is a going concern. Going concern contemplates the
realization of assets and the satisfaction of liabilities in the
normal course of business over a reasonable length of time. The
following factors raise substantial doubt as to the Company's ability
to continue as a going concern:

A. Operating losses
B. Negative working capital
C. Lack of cash from continuing operations
D. Unpaid wages
E. Decline in national economy

Management's plans to eliminate the going concern situation include,
but are not limited to:

A. Increase sales through new line of products acquired on
July 11, 2002.

B. Obtain additional equity investments through private
placements of its common stock.

Should the Company be unsuccessful in its plans, the operations of
the Company could be discontinued.

2. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

A summary of accounts receivable and allowance for doubtful accounts
is as follows:

Accounts receivable $ 24,123
Allowance for doubtful accounts (12,256)

Net accounts receivable $ 11,867

Allowance for doubtful accounts:
Balance, November 1, 2001 0
Additions 12,827
Write-off of uncollectible accounts (571)

Balance, October 31, 2002 $ 12,256

3. INCOME TAXES

Deferred Taxes

The components of deferred tax assets are as follows:

Net operating loss carryforwards $ 61,000
Allowance for doubtful accounts 2,500
Accrued expenses not deductible until paid 9,200
Total deferred tax assets 72,700
Less valuation allowance 72,700

Net deferred tax asset $ 0

A reconciliation of the valuation allowance is as follows:

Balance, November 1, 2001 $ 0
Addition 72,700

Balance, October 31, 2002 $ 72,700

Tax Carryforwards

The Company has the following Federal tax carryforwards at
October 31, 2002:

Amount Expiration Date

Net operating loss $305,000 October 31, 2022

Future changes in ownership may limit the ability of the Company to
utilize these net operating loss carryforwards prior to their expiration.

4. PREFERRED STOCK

The Board of Directors has not assigned any preference rights for
this series of stock.

5. COMMITMENTS AND CONTINGENCIES

Operating Lease

The Company leases its office and warehouse facilities under the
following terms and conditions:

a. Term - Three years from February 1, 2002 to January 31, 2005
b. Size of facility - 4,343 square feet
c. Base rent - Monthly rentals plus taxes and common area operating expenses
d. Base rental schedule:

Months Rent

1 - 12 $2,172
13 - 24 $3,692
25 - 36 $4,343

Future minimum lease payments excluding taxes and expenses are as follows:

October 31, 2003 $ 39,744
October 31, 2004 50,163
October 31, 2005 13,029
Total $102,936

Rent expense for the year ended October 31, 2002 was $19,548.

Workers' Compensation Insurance

Through January 2003, the Company did not carry general liability or
workers' compensation coverage, nor was it self-insured. The Company
accrues liabilities when it is probable that future costs will be
incurred and such costs can be reasonably estimated. As of January
2003, there were no known liability claims. No amounts have been
accrued for any penalties that may be assessed by the State of
Arizona for non-compliance with the laws and regulations applicable
to workers' compensation insurance.

Pledged Assets

All of the Company's assets are pledged as security for Corp's
Secured Convertible Debentures.

IBIZ, INC.
BALANCE SHEET
APRIL 30, 2003
(Unaudited)

ASSETS

CURRENT ASSETS:
Accounts receivable, net $ 37,037
Inventories 124,880
Prepaid expenses 9,156

TOTAL ASSETS $ 171,073

LIABILITIES AND STOCKHOLDER'S DEFICIT

CURRENT LIABILITIES:
Bank overdraft $ 14,820
Accounts payable and accrued expenses 226,051
Accrued wages 123,477
Payroll taxes payable 30,548
Deferred income 1,802
Total current liabilities 396,698

COMMITMENTS AND CONTINGENCIES

STOCKHOLDER'S DEFICIT:
Preferred stock, $0.001 par value; 10,000,000
shares authorized; -0- shares issued and
outstanding
Common stock, $0.001 par value; 100,000,000
shares authorized; 1,000 shares issued
and outstanding 1
Additional paid-in capital 629,897
Accumulated deficit (855,523)
Total stockholder's deficit (225,625)

TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT $ 171,073

See notes to financial statements

IBIZ, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED
APRIL 30, 2003 AND 2002
(Unaudited)

2003 2002

SALES $ 135,947 $ 248,192

COST OF GOODS SOLD 148,304 154,041

GROSS PROFIT (LOSS) (12,357) 94,151

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 479,398 151,205

LOSS FROM OPERATIONS (491,755) (57,054)

OTHER INCOME (EXPENSE):
Interest income 3 -
Interest expense (900) -
Other expense, net (897) -
NET LOSS (492,652) (57,054)

See notes to financial statements

IBIZ, INC.
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
APRIL 30, 2003 AND 2002
(Unaudited)

2003 2002

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(492,652) $ (57,054)
Adjustments to reconcile net loss to net cash
used by operating activities:
Provision for uncollectible accounts 4,217 4,003
Changes in operating assets and liabilities:
Accounts receivable (29,387) (39,873)
Inventories (29,279) (180,864)
Prepaid expenses (1,156) (8,000)
Accounts payable and accrued expenses 153,395 32,726
Accrued wages and taxes 58,575 108,657
Deferred income (4,114) 8,895
Net cash used by operating activities (340,401) (131,510)

CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft 14,820
Net proceeds received from related entities 324,904 131,510
Net cash provided by financing activities 339,724 131,510

NET DECREASE IN CASH AND CASH EQUIVALENTS (677) 0

CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 677 0

CASH AND CASH EQUIVALENTS,
END OF PERIOD 0 0

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest 900 0
Cash paid for taxes 0 0

NON-CASH INVESTING AND FINANCIAL ACTIVITIES:
Transfer of related entity debt to
additional paid-in capital 629,897 0

See notes to financial statements.

IBIZ, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company is a wholly-owned subsidiary of IBIZ Technology Corp.
("Corp"), a publicly-held corporation).

Presentation - The interim financial statements of the Company are
condensed and do not include some of the information necessary to
obtain a complete understanding of the financial data. Management
believes that all adjustments necessary for a fair presentation of
results have been included in the unaudited financial statements for
the interim periods presented. Operating results for the six-month
period ended April 30, 2003 are not necessarily indicative of the
results that may be expected for the year ended October 31, 2003.

Inventories - Inventories are stated at the lower of cost (determined
principally by average cost) or market. The inventories are
comprised of finished products at April 30, 2003.

Disclosure About Fair Value of Financial Instruments - The Company
has financial instruments, none of which are held for trading
purposes. The Company estimates that the fair value of all financial
instruments at April 30, 2003, as defined in Financial Accounting
Standards Board ("FASB") 107, does not differ materially from the
aggregate carrying values of its financial instruments recorded in
the accompanying balance sheet. The estimated fair value amounts
have been determined by the Company using available market
information and appropriate valuation methodologies. Considerable
judgment is required in interpreting market data to develop the
estimates of fair value, and accordingly, the estimates are not
necessarily indicative of the amounts that the Company could realize
in a current market exchange.

Revenue Recognition

Product sales - when the goods are shipped and title passes to the customer.

Maintenance agreements - income from maintenance agreements is being
recognized on a straight-line basis over the life of the service
contracts. The unearned portion is recorded as deferred income.

Service income - when services are performed.

Shipping and Handling Costs - The Company's policy is to classify
shipping and handling costs as part of cost of goods sold in the
statement of operations.

Advertising - All direct advertising costs are expensed as incurred.
The Company charged to operations $5,222 and $4,136 in advertising
costs for the six months ended April 30, 2003 and 2002, respectively.

Research and Development - The Company expenses research and
development costs as incurred.

Concentration of Risk

Industry

Financial Instruments

Financial instruments that potentially subject the Company to
concentrations of credit risk consist principally of trade accounts
receivable.

At April 30, 2003, three customers accounted for 98% (58%, 22% and
18%, respectively) of net receivables.

Purchases

The Company relies primarily on three suppliers for its products.
The loss of any supplier could have a material impact on the
Company's operations. Purchases from these suppliers for the six
months ended April 30, 2003 totaled 79%, 11% and 8%, respectively.

Revenues

For the six months ended April 30, 2003, the Company had two
customers whose sales exceeded 37% of total revenues (20% and 17%,
respectively).

Recent Accounting Pronouncements - The FASB recently issued the
following statements:

FASB 144 - Accounting for the Impairment or Disposal of Long-
Lived Assets
FASB 145 - Rescission of FASB Statements 4, 44 and 64 and
Amendment of FASB 13
FASB 146 - Accounting for Costs Associated with Exit or Disposal
Activities
FASB 147 - Acquisitions of Certain Financial Institutions
FASB 148 - Accounting for Stock-Based Compensation
FASB 149 - Amendment of Statement 133 on Derivative Instruments

These FASB statements did not, or are not expected to, have a
material impact on the Company's financial position and results of
operations.

A. Operating losses
B. Negative working capital
C. Lack of cash from continuing operations
D. Unpaid wages
E. Decline in national economy

Management's plans to eliminate the going concern situation include,
but are not limited to:

A. Increase sales through new line of products acquired on
July 11, 2002

B. Obtain additional equity investments through private
placements of its common stock

Should the Company be unsuccessful in its plans, the operations of
the Company could be discontinued.

2. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

A summary of accounts receivable and allowance for doubtful accounts
is as follows:

Accounts receivable $ 53,510
Allowance for doubtful accounts (16,473)

Net accounts receivable $ 37,037

Allowance for doubtful accounts:

Balance, November 1, 2002 $ 12,256
Additions 4,217

Balance, April 30, 2003 $ 16,473

3. INCOME TAXES

Deferred Taxes

The components of deferred tax assets are as follows:

Net operating loss carryforwards $139,400
Allowance for doubtful accounts 3,300
Accrued expenses not deductible until paid 16,900
Total deferred tax assets 159,600
Less valuation allowance 159,600
Net deferred tax asset 0

A reconciliation of the valuation allowance is as follows:

Balance, November 1, 2002 $ 72,700
Addition 86,900

Balance, April 30, 2003 $159,600

Tax Carryforwards

The Company has the following tax carryforwards at April 30, 2003:

Amount Expiration Date

Net operating loss
October 31, 2002 $305,000 October 31, 2022
April 30, 2003 392,000 April 30, 2023

Total $697,000

Future changes in ownership may limit the ability of the Company to
utilize these net operating loss carryforwards prior to their expiration.

4. PREFERRED STOCK

The Board of Directors has not assigned any preference rights for
this series of stock.

5. COMMITMENTS AND CONTINGENCIES

Operating Lease

The Company leases its office and warehouse facilities under the
following terms and conditions:

Months Rent

1 - 12 $2,172
13 - 24 $3,692
25 - 36 $4,343

Future minimum lease payments excluding taxes and expenses are as
follows:

October 31, 2003 $ 39,744
October 31, 2004 50,163
October 31, 2005 13,029

Total $102,936

Rent expense for the six months ended April 30, 2003 and 2002 was
$17,592 and 46,516, respectively.

Workers' Compensation Insurance

Through July 2003, the Company did not carry general liability or
workers' compensation coverage, nor was it self-insured. The Company
accrues liabilities when it is probable that future costs will be
incurred and such costs can be reasonably estimated. As of July
2003, there were no known liability claims. No amounts have been
accrued for any penalties that may be assessed by the State of
Arizona for non-compliance with the laws and regulations applicable
to workers' compensation insurance.

Pledged Assets

All of the Company's assets are pledged as security for Corp's
Secured Convertible Debentures.

6. CONTRIBUTION OF CAPITAL

During April 2003, the Board of Directors of Corp authorized the
intercompany loans between Corp (and its other wholly-owned
subsidiaries) and the Company be contributed to the capital of the
Company.

REQUEST FOR CONSENT OF SHAREHOLDERS
OF IBIZ TECHNOLOGY CORP.
FOR CORPORATE ACTION

The following matters are hereby submitted to the shareholders of
IBIZ Technology Corp., a Florida corporation ("Company"), for their
approval and consent under the provisions of Florida Statutes
607.0821 and Article III, Section 9 of the Bylaws of the Company:

A proposal to spin-off IBIZ, Inc., a wholly owned
subsidiary of the Company, into a separate public company.

A shareholder does not have dissenter's rights of appraisal in
connection with the proposed action.

This written consent may be revoked prior to the date that the
Company receives the required number of consents to authorize the
proposed action. No revocation is effective unless in writing and
until received by the company at its principal office located at:
2238 West Lone Cactus Drive, Suite 200, Phoenix, Arizona 85021

Each shareholder must return the consent form, indicating an
affirmative or negative vote on this issue, by overnight courier to
reach the offices of the Company not later than two (2) days after
receipt thereof. If a shareholder does not return the consent form,
then his or her shares will not be counted in determining the
positive and negative votes.

I, __________________________, the undersigned owner of record of
____________shares of common stock of the Company, do hereby vote
these shares as follows with regard to the above described proposals
(please check next to the appropriate vote):

Approve: __________

Disapprove: _________

Dated: August ____, 2003 _____________________ ________________________
(Signature of Shareholder) (Signature Of Shareholder)
Printed name(s): -__________________________________
Title: ___________________________________________

Note: Please sign exactly as name appears on stock certificate. All
joint owners should sign. When signing as personal representative,
executor, administrator, attorney, trustee or guardian, please give
full title as such. If a corporation, please sign in full corporation
name by the president or other authorized person. If a partnership,
please sign in partnership name by a partner.