MONTHLY OPERATING REPORT SUMMARY FOR MONTH MAY 2005


*MONTH*	April			May
REVENUES (MOR-6)	$	0.00		$	0.00		$	0.00	$	0.00	$	0.00	$	0.00
INCOME BEFORE INT; DEPREC./TAX (MOR-6)		($733.00	)		($35,125.63	)	$	0.00	$	0.00	$	0.00	$	0.00
NET INCOME (LOSS) (MOR-6)	$	3,286.83			($32,581.22	)	$	0.00	$	0.00	$	0.00	$	0.00
PAYMENTS TO INSIDERS (MOR-9)	$	0.00		$	100.00		$	0.00	$	0.00	$	0.00	$	0.00
PAYMENTS TO PROFESSIONALS (MOR-9)	$	0.00		$	0.00		$	0.00	$	0.00	$	0.00	$	0.00

TOTAL DISBURSEMENTS (MOR-8)	$	0.00		$	1,813.90		$	0.00	$	0.00	$	0.00	$	0.00

***	The original of this document must be filed with the United States Bankruptcy Court and a copy must be sent to the United States Trustee***


*REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE*		*EXP. DATE*
CASUALTY	YES x NO ¨	2-01-2006
LIABILITY	YES x NO ¨	2-01-2006
VEHICLE	YES x NO ¨	2-01-2006
WORKER’S	YES ¨ NO x	- -
OTHER	YES x NO ¨	3-15-2006


		CIRCLE ONE
Are all accounts receivable being collected within terms?		No
Are all post-petition liabilities, including taxes, being paid within terms?		*Yes*
Have any pre-petition liabilities been paid?		No
If so, describe
Are all funds received being deposited into DIP bank accounts?		*Yes*
Were any assets disposed of outside the normal course of business?		No
If so, describe
Are all U.S. Trustee Quarterly Fee Payments current?		*Yes*
What is the status of your Plan of Reorganization?


		*The Debtor filed its Plan of Distribution on May 16, 2005*

ATTORNEY NAME:	Gary C. Miller	I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct.
FIRM NAME:	Andrews Kurth LLP
ADDRESS:	600 Travis
	Suite 4200
CITY, STATE, ZIP:	Houston,Texas 77002	*SIGNED X ______ /s/ Eric Schumann*	Senior Vice-President
TELEPHONE/FAX:	Ph 713-2204200 Fax 713-220-4285	(ORIGINAL SIGNATURE)
		_______________/s/ Eric Schumann	6/20/2005
*MOR-1*		(PRINT NAME OF SIGNATORY)	DATE	Revised 07/01/98


CASE NAME:		Southern Investors Service Company, Inc.
CASE NUMBER:		05-35538-H4-11

COMPARATIVE BALANCE SHEETS


	FILING DATE* 4/8/2005 0:00		MONTH April		MONTH May		MONTH		MONTH		MONTH		MONTH
ASSETS
CURRENT ASSETS
Cash	$	1,987,139.56	$	1,993,290.29	$	1,996,539.97
Accounts Receivable, Net	$	32,328.76	$	30,197.86	$	29,492.59
Inventory: Lower of Cost or Market
Prepaid Expenses
Investments	$	703,000.00	$	703,000.00	$	703,000.00
Other

TOTAL CURRENT ASSETS	$	2,722,468.32	$	2,726,488.15	$	2,729,032.56	$	0.00	$	0.00	$	0.00	$	0.00

PROPERTY, PLANT & EQUIP. @ COST
Less Accumulated Depreciation
NET BOOK VALUE OF PP & E	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00
OTHER ASSETS
1. Tax Deposits
2. Investments in Subsidiaries
3. Electric Deposit
4.

TOTAL ASSETS	$	2,722,468.32	$	2,726,488.15	$	2,729,032.56	$	0.00	$	0.00	$	0.00	$	0.00


MOR-2		* Per Schedules and Statement of Affairs. Note: the Debtor inadvertently failed to account for approximately $1,800 worth of interest earned on one of its bank accounts for the month of March 2005 in determining the amount of cash listed in its Schedule B. The Debtor intends to amend Schedule B to reflect that cash on the Petition Date was $1,987,139.56. The Debtor also inadvertently failed to account for $645.91 in payment received prepetition in April that reduced the amounts owing on the notes receivable listed on Schedule B. The Debtor intends to amend Schedule B to reflect that the amount owing on the notes receivable was less by this amount.		Revised 07/01/98


CASE NAME:		Southern Investors Service Company, Inc.
CASE NUMBER:		05-35538-H4-11

COMPARATIVE BALANCE SHEETS


	FILING DATE* 4/8/2005 0:00			MONTH April			MONTH May			MONTH		MONTH		MONTH		MONTH
LIABILITIES & OWNER’S EQUITY
LIABILITIES
POST-PETITION LIABILITIES(MOR-4)				$	733.00		$	35,858.63
PRE-PETITION LIABILITIES
Notes Payable - Secured
Priority Debt	$	1,706.04		$	1,706.04		$	1,706.04
Federal Income Tax
FICA/Withholding
Unsecured Debt	$	8,634,350.43		$	8,634,350.43		$	8,634,350.43
Other
TOTAL PRE-PETITION LIABILITIES	$	8,636,056.47		$	8,636,056.47		$	8,636,056.47		$	0.00	$	0.00	$	0.00	$	0.00

TOTAL LIABILITIES	$	8,636,056.47		$	8,636,789.47		$	8,671,915.10		$	0.00	$	0.00	$	0.00	$	0.00

OWNER’S EQUITY (DEFICIT)
PREFERRED STOCK
COMMON STOCK	$	3,281,331.00		$	3,281,331.00		$	3,281,331.00
ADDITIONAL PAID-IN CAPITAL	$	2,905,072.00		$	2,905,072.00		$	2,905,072.00
RETAINED EARNINGS: Filing Date	($	12,099,991.15	)	($	12,099,991.15	)	($	12,099,991.15	)
RETAINED EARNINGS: Post Filing Date				$	3,286.83		($	29,294.39	)
TOTAL OWNER’S EQUITY (NET WORTH)		($5,913,588.15	)		($5,910,301.32	)		($5,942,882.54	)	$	0.00	$	0.00	$	0.00	$	0.00

TOTAL LIABILITIES & OWNERS EQUITY	$	2,722,468.32		$	2,726,488.15		$	2,729,032.56		$	0.00	$	0.00	$	0.00	$	0.00


	* Per Schedules and Statement of Affairs (see note on previous page)
MOR-3		Revised 07/01/98


CASE NAME:		Southern Investors Service Company, Inc.
CASE NUMBER:		05-35538-H4-11

SCHEDULE OF POST-PETITION LIABILITIES


	MONTH April		MONTH May		MONTH		MONTH		MONTH		MONTH
*TRADE ACCOUNTS PAYABLE*
TAX PAYABLE
Federal Payroll Taxes
State Payroll Taxes
Ad Valorem Taxes
Other Taxes
TOTAL TAXES PAYABLE		0.00		0.00		0.00		0.00		0.00		0.00
SECURED DEBT POST-PETITION
ACCRUED INTEREST PAYABLE
ACCRUED PROFESSIONAL FEES*				34,125.63
OTHER ACCRUED LIABILITIES
1. Management Fee		733.00		1,733.00
2.
3.

TOTAL POST-PETITION LIABILITIES (MOR-3)	$	733.00	$	35,858.63	$	0.00	$	0.00	$	0.00	$	0.00

*	Payment requires Court Approval


MOR-4		Revised 07/01/98


CASE NAME:		Southern Investors Service Company, Inc.
CASE NUMBER:		05-35538-H4-11

AGING OF POST-PETITION LIABILITIES

MONTH April


DAYS	TOTAL		TRADE ACCOUNTS		FEDERAL TAXES		STATE TAXES		AD VALOREM, OTHER TAXES		MONTH
0-30		35,125.63		35,125.63
31-60		733.00		733.00
61-90		0.00
91+		0.00

TOTAL	$	35,858.63	$	35,858.63	$	0.00	$	0.00	$	0.00	$	0.00


AGING OF ACCOUNTS RECEIVABLE

MONTH
0-30 DAYS
31-60 DAYS
61-90 DAYS
91+ DAYS

TOTAL	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00


MOR-5		Revised 07/01/98


CASE NAME:		Southern Investors Service Company, Inc.
CASE NUMBER:		05-35538-H4-11

STATEMENT OF INCOME (LOSS)


	MONTH April			MONTH May			MONTH		MONTH		MONTH		MONTH		FILING TO DATE
REVENUES (MOR-1)															$	0.00
TOTAL COST OF REVENUES															$	0.00
GROSS PROFIT	$	0.00		$	0.00		$	0.00	$	0.00	$	0.00	$	0.00	$	0.00
OPERATING EXPENSES:
Selling & Marketing															$	0.00
General & Administrative															$	0.00
Insiders Compensation (Management Fee)	$	733.00		$	1,000.00										$	1,733.00
Professional Fees				$	34,125.63										$	34,125.63
Other															$	0.00
Other															$	0.00

TOTAL OPERATING EXPENSES	$	733.00		$	35,125.63		$	0.00	$	0.00	$	0.00	$	0.00	$	35,858.63

INCOME BEFORE INT, DEPR/TAX (MOR-1)		($733.00	)	($	35,125.63	)	$	0.00	$	0.00	$	0.00	$	0.00		($35,858.63	)
INTEREST EXPENSE															$	0.00
DEPRECIATION															$	0.00
OTHER (INCOME) EXPENSE*	($	4,019.83	)		($2,544.41	)										($6,564.24	)
OTHER ITEMS**															$	0.00
TOTAL INT, DEPR & OTHER ITEMS	($	4,019.83	)		($2,544.41	)	$	0.00	$	0.00	$	0.00	$	0.00		($6,564.24	)
NET INCOME BEFORE TAXES	$	3,286.83			($32,581.22	)	$	0.00	$	0.00	$	0.00	$	0.00		($29,294.39	)
FEDERAL INCOME TAXES															$	0.00

NET INCOME (LOSS) (MOR-1)	$	3,286.83			($32,581.22	)	$	0.00	$	0.00	$	0.00	$	0.00		($29,294.39	)

Accrual Accounting Required, Otherwise Footnote with Explanation.

*	Footnote Mandatory.

**	Unusual and/or infrequent item(s) outside the ordinary course of business requires footnote.


MOR-6		Revised 07/01/98

Southern Investors Service Company, Inc.

Other Income & Expense

Attachment to MOR 6


	April		May
Interest Income	$	3,985.83	$	3,852.79
Fee Income	$	25.00	$	15.00
Void Check	$	9.00	$	—
Royalties	$	—	$	490.52

Other Income	$	4,019.83	$	4,358.31

Securities & Exchange Reporting	$	0.00	$	1,210.93
Repairs Maintence	$	0.00	$	100.00
General Administrative	$	0.00	$	484.76
Other	$	0.00	$	18.21

Other Disbursements	$	0.00	$	1,813.90

Net	$	4,019.83	$	2,544.41


CASE NAME:		Southern Investors Service Company, Inc.
CASE NUMBER:		05-35538-H4-11


	MONTH April		MONTH		MONTH		MONTH		MONTH		MONTH		FILING TO DATE
CASH RECEIPTS AND DISBURSEMENTS
1. CASH-BEGINNING OF MONTH	$	1,987,139.56	$	1,993,290.29	$	1,996,539.97	$	1,996,539.97	$	1,996,539.97	$	1,996,539.97	$	1,987,139.56
RECEIPTS:
2. CASH SALES													$	0.00
3. COLLECTION OF ACCOUNTS RECEIVABLE													$	0.00
4. LOANS & ADVANCES (attach list)	$	2,130.90	$	705.27									$	2,836.17
5. SALE OF ASSETS													$	0.00
6. OTHER (attach list)	$	4,019.83	$	4,358.31									$	8,378.14
TOTAL RECEIPTS**	$	6,150.73	$	5,063.58	$	0.00	$	0.00	$	0.00	$	0.00	$	11,214.31
(Withdrawal) Contribution by Individual Debtor MFR-2*													$	0.00
DISBURSEMENTS:
7. NET PAYROLL													$	0.00
8. PAYROLL TAXES PAID													$	0.00
9. SALES, USE & OTHER TAXES PAID													$	0.00
10. SECURED/RENTAL/LEASES													$	0.00
11. UTILITIES & TELEPHONE													$	0.00
12. INSURANCE													$	0.00
13. INVENTORY PURCHASES													$	0.00
14. VEHICLE EXPENSES													$	0.00
15. TRAVEL & ENTERTAINMENT													$	0.00
16. REPAIRS, MAINTENANCE & SUPPLIES			$	100.00									$	100.00
17. ADMINISTRATIVE & SELLING			$	484.76									$	484.76
18. OTHER (attach list)			$	1,229.14									$	1,229.14

TOTAL DISBURSEMENTS FROM OPERATIONS	$	0.00	$	1,813.90	$	0.00	$	0.00	$	0.00	$	0.00	$	1,813.90

19. PROFESSIONAL FEES													$	0.00
20. U.S. TRUSTEE FEES													$	0.00
21. OTHER REORGANIZATION EXPENSES (attach list)													$	0.00

TOTAL DISBURSEMENTS**	$	0.00	$	1,813.90	$	0.00	$	0.00	$	0.00	$	0.00	$	1,813.90

22. NET CASH FLOW	$	6,150.73	$	3,249.68	$	0.00	$	0.00	$	0.00	$	0.00	$	9,400.41
23. CASH - END OF MONTH (MOR-2)	$	1,993,290.29	$	1,996,539.97	$	1,996,539.97	$	1,996,539.97	$	1,996,539.97	$	1,996,539.97	$	1,996,539.97


	* Applies to Individual debtors only
MOR-7	** Numbers for the current month should balance (match)	Revised 07/01/98
	RECEIPTS and CHECKS/OTHER DISBURSEMENTS lines on MOR-8

Southern Investors Service Company, Inc.

Notesr Receivable Analysis May, 2005

Attachment to MOR 7


Note No.	Name of Payee	Note Maturity	Int Rate		Monthly Payment		Balance 30-Apr-05		Interest		Principal		Late Fee		Total Payment		Balance 31-May-05
1275	SULLIVAN, JANET S	1-Apr-06	9.50	%	$	82.82	$	1,187.33	$	9.40	$	73.42	$	—	$	82.82	$	1,113.91
N/A	GOSSIEN, FRED	10-Oct-09	8.25	%	$	78.50	$	3,533.31	$	24.29	$	54.21	$	—	$	78.50	$	3,479.10
1287	HURT, PAUL & RENEE	1-Oct-08	8.50	%	$	138.86	$	5,113.57	$	36.22	$	102.64	$	2.50	$	141.36	$	5,010.93
N/A	LEROY, STEPHEN & APRIL	15-Oct-09	8.00	%	$	48.53	$	2,197.29	$	57.24	$	136.88	$	—	$	194.12	$	2,060.41
N/A	SULLIVAN, JR	1-Sep-09	8.25	%	$	157.00	$	7,119.78	$	—	$	—	$	—	$	—	$	7,119.78
N/A	SULLIVAN, JANET	1-Mar-10	8.00	%	$	61.88	$	3,010.32	$	20.07	$	41.81	$	—	$	61.88	$	2,968.51
1289	THOMPSON, ELIZABETH	25-Feb-09	8.50	%	$	49.59	$	1,941.85	$	13.75	$	35.84	$	—	$	49.59	$	1,906.01
N/A	THOMPSON, ELIZABETH	1-Mar-10	8.00	%	$	48.52	$	2,328.95	$	15.53	$	32.99	$	—	$	48.52	$	2,295.96
1288	WHITE, SCOTT R	1-Feb-09	8.50	%	$	79.35	$	3,765.46	$	160.02	$	227.48	$	12.50	$	400.00	$	3,537.98

							$	30,197.86	$	336.52	$	705.27	$	15.00	$	1,056.79	$	29,492.59

Southern Investors Service Company, Inc.

Attachment to MOR 7


Receipts	April		May
Royalities	$	0.00	$	490.52
Interest Earned	$	3,985.83	$	3,852.79
Fee Income	$	25.00	$	15.00
Voided Check	$	9.00	$	0.00

	$	4,019.83	$	4,358.31


Disbursements	April		May
Securities & Exchange Reporting	$	0.00	$	1,210.93
Other	$	0.00	$	18.21

	$	0.00	$	1,229.14


CASE NAME:		Southern Investors Service Company, Inc.
CASE NUMBER:		05-35538-H4-11

CASH ACCOUNT RECONCILIATION

MONTH OF May-05


BANK NAME	Amegy		Amegy
ACCOUNT NUMBER		#515737756		#51573705
ACCOUNT TYPE	OPERATING		MONEY MARKET		OTHER FUNDS		MONEY MARKET		MONEY MARKET		MONEY MARKET		TOTAL
BANK BALANCE	$	54,753.31	$	1,940,754.76	$	0.00	$	0.00	$	0.00	$	0.00	$	1,995,508.07
DEPOSITS IN TRANSIT	$	1,056.79											$	1,056.79
OUTSTANDING CHECKS	$	24.89											$	24.89
ADJUSTED BANK BALANCE	$	55,785.21	$	1,940,754.76	$	0.00	$	0.00					$	1,996,589.75
BEGINNING CASH - PER BOOKS	$	56,051.80	$	1,937,238.49	$	0.00			$	0.00	$	0.00	$	1,993,290.29
RECEIPTS*	$	1,547.31	$	3,516.27			$	0.00	$	0.00	$	0.00	$	5,063.58
TRANSFERS BETWEEN ACCOUNTS	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00
(WITHDRAWAL) OR CONTRIBUTION BY INDIVIDUAL DEBTOR MFR-2													$	0.00
CHECKS/OTHER DISBURSEMENTS*	$	1,813.90											$	1,813.90

ENDING CASH - PER BOOKS	$	55,785.21	$	1,940,754.76	$	0.00	$	0.00	$	0.00	$	0.00	$	1,996,539.97

MOR-8

* Numbers should balance (match) TOTAL RECEIPTS and

Revised 07/01/98

TOTAL DISBURSEMENTS lines on MOR-7


CASE NAME:		Southern Investors Service Company,Inc.
CASE NUMBER:		05-35538-H4-11

PAYMENTS TO INSIDERS AND PROFESSIONALS

Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals.

Also, for insiders, identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary).


INSIDERS: NAME/COMP TYPE	MONTH April		MONTH May		MONTH		MONTH		MONTH		MONTH
1. PMW, Inc (Paula Mischer) Mowing				100.00
2.
3.
4.
5.
6.

TOTAL INSIDERS (MOR-1)	$	0.00	$	100.00	$	0.00	$	0.00	$	0.00	$	0.00


PROFESSIONALS	MONTH		MONTH		MONTH		MONTH		MONTH		MONTH
1.
2.
3.
4.
5.
6.

TOTAL PROFESSIONALS (MOR-1)	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00


MOR-9		Revised 07/01/98

MOR-1

UNITED STATES BANKRUPTCY COURT

CASE NAME: Southern Investors Service Company, Inc.

PETITION DATE:

April 8, 2005

CASE NUMBER: 05-35538-H4-11

DISTRICT OF TEXAS:

PROPOSED PLAN DATE: 5/16/2005

DIVISION:

SOUTHERN INVESTORS SERVICE CO INC 8-K