Form 10-QSB U. S. Securities and Exchange Commission Washington, D. C. 20549 [X] Quarterly report pursuant section 13 or 15(d) of the Securities Act of 1934 For the quarterly period ended June 30th, 2000 Commission file number: 000-28207 INTERNATIONAL BRANDS, INC. (Exact Name of Registrant as Specified in its Charter) Nevada 33-0652291 (State of Incorporation) (I.R.S. Employer Identification Number) 7729 Othello Ave. San Diego, CA. 92111 (Address of Principal (Zip Code) Executive Offices) Tele: (858) 292-3380 Fax: (858) 292-1528 (Registrant's Executive Office Telephone Number) Check whether the issuer: [] filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and has been subject to such filing requirements for the past 90 days. Yes____X_____ No___________- Item 1. Financial Statements The required financials are hereby attached as exhibit 99.1. Item 2. Management's Discussion and Analysis or Plan of Operation International Brands' Inc. is a diversified company whose current emphasis has been on an e-commerce shopping mall. Our revenues are generated by sales of products from this site as well as income we receive from notes receivable from Z3 Capital Corporation. Our operating expenses include rent, payments to independent contractors and payment for merchandise sold on our website, various professional expenses, such as audit, and legal. We plan to enhance our website by acquiring new products and heighten the products appeal to potential buyers with improved presentations. We also plan to implement our acquisition in spin-off strategies. The plan would increase investors equity through distribution of shares in new companies. The company is currently in negotiations to acquire three spin-off three "bricks-and-mortar" companies to enhance the value of shareholder holdings and help insulate the company from wild fluctuations in any one segment of the stock market. At this particular time, it is important to remember that International Brands is and always has been a diversified company with interests outside-as well as inside the world of e-commerce. Currently, the directors are negotiating with several companies to increase the diversity of your portfolio by acquiring those companies and spinning them off into independent enterprises in which all current IBI stockholders would automatically be granted shares. Possible uncertainties which may have an impact on the International Brands, Inc short and long term liquidity include, market conditions, competition from other dot com companies and Z3 Capital's ability to maintain its payments on the promissory notes to IBI and possible legal challenges. A minor material commitment for a capital expenditure exists in a pending agreement to purchase an additional server/backup for our website. NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS This statement includes projections of future results and "forward- looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this Registration Statement, other than statements of historical fact, are forward-looking statements. Although the management of INBR believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. There may be factors that could cause actual results to differ materially from the expectations are disclosed in this Statement, including, without limitation, in conjunction with those forward-looking statements contained in this Statement. Part II. Item 1. Legal Proceedings. On May 9, 2000, the Company received a final judgement against it as a result of litigation initiated by the State of New Jersey against International Brands and several other defendants. As a result, the Company is enjoined from selling any of its stock within the State of New Jersey. In addition, International Brands shall send a notice to all New Jersey residents who purchased stock, allowing them a right of recision. International Brands, Z3 Capital Corporation and its chief executive are liable to the State of New Jersey for $7,770 in civil monetary penalties. This amount has been accrued on the Company's books and is reflected as a liability at December 31, 1999 and March 31, 2000 since the source for payment of the penalty shall come from the Company. The Company is currently appealing this judgement, however the success of this appeal is in doubt. Item 2. Changes in Securities and Use of Proceeds. None Item 3. Defaults upon Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders. None. Item 5. Other Information. None Item 6. Exhibits and Reports on Form 8-K (a) 3.1 Certification of Incorporation filed as an exhibit to the Company's registration statement on Form 10-SB filed on November 19, 1999, and incorporated herein by reference. 3.2 By-Laws filed as an exhibit to the Company's registration statement on Form 10-SB filed on November 19, 1999, and incorporated herein by reference. (b) The Corporation filed an 8-K on January 12, 2000, and an amended 8-K on January 18th. Pursuant to an Acquisition Agreement and Plan of Merger dated as of January 12, 2000 between International Brands, Inc ("IBI"), a Nevada corporation, and Tele Special.Com ("TSC"), a Nevada corporation, all the outstanding shares of common stock of TSC were exchanged for 25,000 shares of common stock of IBI in a transaction in which IBI was the surviving corporation. All document relating to such transaction are incorporated by reference. 99.1 Financials for June 30th, 2000 SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. International Brands, Inc. /s/__________________________ Date: August 8-21-2000 Kellie Kitzgerald Officer, International Brands. INTERNATIONAL BRANDS, INC. FINANCIAL STATEMENTS FOR THE SECOND QUARTER ENDED JUNE 30, 2000 TABLE OF CONTENTS Balance Sheets 2 Statements of Income 4 Statement of Stockholders Equity 5 Statements of Cash Flows 6 Notes to the Financial Statements 7

INTERNATIONAL BRANDS, INC. (FORMERLY KNOWN AS STELLA BELLA CORPORATION, U.S.A.) BALANCE SHEETS

INTERNATIONAL BRANDS, INC. (FORMERLY KNOWN AS STELLA BELLA CORPORATION, U.S.A.) BALANCE SHEETS

INTERNATIONAL BRANDS, INC. (FORMERLY KNOWN AS STELLA BELLA CORPORATION, U.S.A.) STATEMENTS OF INCOME

INTERNATIONAL BRANDS, INC. (FORMERLY KNOWN AS STELLA BELLA CORPORATION, U.S.A.) STATEMENT OF STOCKHOLDERS EQUITY

AMOUNT Common Preferred Preferred Additional Stock Stock Series Stock Series Paid-In Accumulated Restricted IV VI Capital Deficit Accumulated Deficit Balance at December 31,1999 $57,612 $627 - $346,278,098 $(352,722,083) Acquisition of Tele Special.com - - - 5,000 (5,305) Shares issued for Services (unaudited) 13,397 - - 11,991,320 - Shares issued in Settlement of litigation (unaudited) 40 - - 129,960 - Preferred Stock Issued (unaudited) - - 1,253 (1,253) - Conversion of SeriesIV preferred Stock (unaudited) 224 (6) - (218) - Conversion of SeriesVI Preferred Stock (unaudited) 2,499 - (500) (1,999) - Conversion of Warrants (unaudited) 101 - - 32,752 - Expiration of Restriction on Common Stock through the quarter ended June 30,2000 (unaudited) (62,350) - - - - - - - - (849,547) Balance at June 30, 2000 $11,523 $621 $753 $358,433,660 $(353,576,935)

INTERNATIONAL BRANDS, INC. (FORMERLY KNOWN AS STELLA BELLA CORPORATION, U.S.A.) STATEMENTS OF CASH FLOWS

INTERNATIONAL BRANDS, INC. (FORMERLY KNOWN AS STELLA BELLA CORPORATION, U.S.A.) NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements included herein are unaudited and have been prepared in accordance with generally accepted accounting principles for interim financial reporting and Securities and Exchange Commission ("SEC") regulations. Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In management's opinion, the financial statements reflect all adjustments (of a normal and recurring nature) which are necessary to present fairly the financial position, results of operations, stockholders' equity and cash flows for the interim periods. These financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 1999, as set forth in the Company's Annual Report on Form 8-K. The results of the six months ended June 30, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000. 2. GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplates continuation of the Company as a going concern. However, the Company has sustained substantial operating losses in recent years. In addition, the Company has used substantial amounts of working capital in its operations. Furthermore, the Company has incurred a loss of $189,985,747 as of December 31, 1999 and $ 849,547 through the second quarter of 2000, as well working capital deficits of $8,018,181 as of December 31, 1999, and $2,745,663 as of the second quarter of 2000. Management has been advised by the Company's Senior Financial Advisor, who was also the President of Z 3 Capital Corporation, that Z 3 will continue to fund the Company's continued operations through private placements of the Company's stock. Z 3 has demonstrated continued ability since 1994 to raise capital for the Company. The Company's continued viability and its ability to continue as a going concern as a going concern is dependent upon its ability to issue stock and raise funds. In addition, on May 31, 2000, the Company approved the extension of the management contract with Z-3. The agreement calls for the Company to pay Z 3 a monthly management fee of $650,000. The monthly payment will be applied as a payment against the Company's note receivable from Z 3, which had been previously fully reserved. As a result, the Company recognized a loss recovery of $7,552,306, which is recognized as other income for the three months and six months ending June 30, 2000. 3. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION In addition to cash provided or used for operations, investing, and financing, the Company had the following non-cash investing and financing activities: A. For the Six Months Ended June 30, 1999 1. The Company issued 40,000,000 shares of restricted common stock in exchange for a $40,000,000 note receivable and $80,000,000 in consulting services from Z 3 Capital Corporation. 2. The Company issued its President 13,000,000 shares of restricted common stock, having a fair market value of $39,000,000. 3. The Company issued 50,000 shares of restricted common stock in consideration for various services, having a market value of $397,500. 4. Net adjustments to notes receivable consisted of $3,811,973 B. For the Six Months Ended June 30, 2000 1. The Company issued 13,396,707 shares of restricted common stock in consideration for various services, having a market value of $12,004,717. Of these services $7,008,700 were capitalized as prepaid advertising. 2. The Company issued 40,000 shares of restricted common stock in settlement of a lawsuit, having a fair market value of $130,000. 3. The Company issued 31,500 shares restricted common stock to purchase Tele Special.com. The net fair market value of the transaction was $97,375. 4. Net adjustments to notes receivable consisted of ($5,954,306).

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