Our consolidated financial statements are stated in United Stated Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13, 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. YES [ ] NO [ ]

Indicate by check mark whether the registrant is a shell company ( as defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [ X ]

Check whether the issuer: (1) 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 (2) has been subject to such filing requirements for the past 90 days. YES [ X ] NO [ ]

THRIFTY PRINTING INC.

(A Development Stage Company)

INTERIM FINANCIAL STATEMENTS

June 30, 2006

(Stated in US Dollars)

( Unaudited )

THRIFTY PRINTING INC.

(A Development Stage Company)

INTERIM BALANCE SHEETS

June 30, 2006 and September 30, 2005

(Stated in US Dollars)

( Unaudited )

SEE ACCOMPANYING NOTES

THRIFTY PRINTING INC.

(A Development Stage Company)

INTERIM STATEMENTS OF OPERATIONS

for the three and nine months ended June 30, 2006

and for the period from January 23, 2004 (Date of Inception) to June 30, 2006

(Stated in US Dollars)

( Unaudited )

SEE ACCOMPANYING NOTES

THRIFTY PRINTING INC.

(A Development Stage Company)

INTERIM STATEMENT OF STOCKHOLDERS'EQUITY (DEFICIENCY)

for the period from January 23, 2004 (Date of Inception) to June 30, 2006

(Stated in US Dollars)

( Unaudited )

SEE ACCOMPANYING NOTES

THRIFTY PRINTING INC.

(A Development Stage Company)

INTERIM STATEMENTS OF CASH FLOWS

for the nine months ended June 30, 2006

and for the period from January 23, 2004 (Date of Inception) to June 30, 2006

(Stated in US Dollars)

( Unaudited )

THRIFTY PRINTING INC.

(A Development Stage Company)

NOTES TO THE INTERIM FINANCIAL STATEMENTS

June 30, 2006

(Stated in US Dollars)

( Unaudited )

Note 1 Interim Financial Statements

The amount due to related parties was forgiven by the directors and a loan amount of $20,000 was advanced to the Company from a shareholder. This loan is unsecured, non-interest bearing with no specific terms of repayment.

The interim financial statements have been prepared using generally accepted accounting principles in the United States of America applicable for a going concern which assumes that the Company will realize its assets and discharge its liabilities in the ordinary course of business. As of June 30, 2006, the Company has a working capital deficiency of $9,756, has not yet attained profitable operations and has accumulated losses of $125,797 since its inception. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due. Realization values may be substantially different from carrying values as shown in these financial statements should the Company be unable to continue as a going concern. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amount of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

Operating results for the nine month period ended June 30, 2006 are not necessarily indicative of the results that can be expected for the year ending September 30, 2006.

The accompanying unaudited interim financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. Such adjustments consist of normal recurring adjustments. These interim financial statements should be read in conjunction with the Company's September 30, 2005, audited financial statements.

The following amounts were donated to the Company by the directors:

On May 24, 2006, the board of directors approved a six (6) for one (1) forward split of the authorized, issued and outstanding common stock. The company's authorized capital increased from 25,000,000 shares of common stock to 150,000,000 shares of common stock and correspondingly issued and outstanding capital increased from 3,200,000 shares of common stock to 19,200,000 shares of common stock.

Item 2. Management's Discussion and Analysis or Plan of Operation

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to "CDN$" refer to Canadian dollars and all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our", and "Thrifty Printing" means Thrifty Printing Inc., unless otherwise indicated.

Since the company is new to the on on-line photofinishing business and to date has not not generated any revenues, our independent auditors have issued an opinion about our ability to continue as a going concern in connection with our audited financial statements for the year ended September 30, 2005. Our accumulated deficit is $125,797 as of June 30, 2006. The discussion below provides an overview of our operations, discusses our results of operations, our plan of operations and our liquidity and capital resources.

The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.

RESULTS OF OPERATIONS

Overview - January 23, 2004 (date of inception) to September 30, 2005

From the date of our incorporation on January 23, 2004 to September 30, 2005, we had not generated any revenue. Our operating activities during this period consist primarily of developing our business plan, marketing our digital photo printing business and developing our website, http://www.myphotolab.us.

From January 23, 2004 (date of inception) to September 30, 2004

For the period from January 23, 2004 to September 30, 2004 we had generated $Nil revenue. Our financial statements are prepared in accordance with U.S. generally accepted accounting principles. For this period our operating expenses are classified into four categories:

Audit fee, which consists primarily of accounting and auditing fees for the year-end audit. The amount incurred and accrued by our company during the period from January 23, 2004 to September 30, 2004 was $2,000;

Bank charges, which consist primarily of charges by our bank for processing transactions through our checking account. The amount incurred by our company during the period from January 23, 2004 to September 30, 2004 was $0;

Legal and organizational fees, which consist primarily of legal fees paid by us regarding securities advice and organizing the company. The amount incurred by our company during the period from January 23, 2004 to September 30, 2004 was $3,730; and

Other operating expenses incurred by our company during the period from January 23, 2004 to September 30, 2004 were $8,736.

From October 1, 2004 to September 30, 2005

For the period from October 1, 2004 to September 30, 2005, we did not generate any revenue.

Total operating expenses for the period from October 1, 2004 to September 30, 2005 were $91,750. Of these total expenses, professional fees paid to our independent auditors for the period from October 1, 2004 to September 30, 2005 were $15,460. Bank charges and other office charges for the period from October 1, 2004 to September 30, 2005 were $209. Legal fees for the period from October 1, 2004 to September 30, 2005 were $29,649.

Other operating expenses, including rent, registration, filing, consulting, web design and management fees for the period from October 1, 2004 to September 30, 2005 were $46,432.

From October 1, 2005 to December 31, 2005

For the period from October 1, 2005 to December 31, 2005 we generated no revenue. Our operating activities during this period consisted primarily of improving our website and marketing.

Total operating expenses for the period from October 1, 2005 to December 31, 2005 were $9,437. Out of these total expenses, professional fees paid to our independent auditors and legal counsel for this period were $1,000 and $6,032 respectively. Other expenses consisting of bank charges, rent and Management fees for this period were $2,405.

From January 1, 2006 to March 31, 2006

For the period from January 1 to March 31, 2006 we generated no revenue. Our operating activities during this period consisted primarily of improving our website and marketing.

Total operating expenses for the period January 1, 2006 to March 31, 2006 were $4660. Out of the total expenses professional fees paid to our independent auditors and legal counsel for this period were $2,998 and $1,662 respectively.

From April 1, 2006 to June 30, 2006

For the period from April 1, 2006 to June 30, 2006 we generated no operating revenue. However, we incurred an extra-ordinary income due to a forgiveness of debt by former directors. Our operation activities consisted primarily of strategic planning and consultation with other industry related companies.

Total operating expenses for the period April 1, 2006 to June 30, 2006 were $5,680. Out of the total expenses of $5,680, professional fees paid for accounting and audit fees were $4,600, $832 for legal counsel and $247 for service charges and filing fee and $10 for bank service charges.

PLAN OF OPERATION

The following discussion should be read in conjunction with our audited financial statements and the related notes that appear elsewhere in this report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this report.

Our audited financial statements are stated in United States dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

From the date of our incorporation on January 23, 2004, we have been a start-up company with no revenues. Our operating activities during this period consist primarily of developing our business plan, marketing digital photo printing business and developing our website http://www.myphotolab.us.

Since our incorporation on January 23, 2004, we have been taking steps to implement our business plan.

Firstly, we have attended several meetings with film and photo processing companies to negotiate an agreement to have our customers' digital print orders processed and delivered at a very low price. After numerous negotiations and examinations of equipment, paper and quality, as well as management, we reached an agreement with GL Photo Processing Corp. of Shanghai China.

Secondly, we have been developing our web site. The website is currently fully operational, and a customer can create an account at no cost by submitting his personal information including name, address and email, then logging onto the website, uploading his pictures, selecting pictures he wants to print, choosing print size and quantity and checking out to pay by credit card. The order would then be processed and delivered.

Thirdly, we have begun building a local dealer network of corner stores in order to establish physical presence. This network will also bring convenience to local customers and promote our website at the same time. We have made contacts with corner stores in Calgary, Alberta and San Francisco, California. We provide corner stores in our dealer network with a unique price chart. These corner stores can sell for more or less, depending on their location and other criteria. If a customer orders prints from a corner store, he needs to pay that corner store's price, and he needs to go to the corner store to pick up the photo prints ordered after five business days. The manager of the corner store needs to upload pictures to our web site himself. We then process and mail the prints back to that corner store. Currently, we have entered into dealers' agreements with six Calgary corner stores and plan to enter into more such agreements with corner stores in the Calgary and San Francisco areas. Our primary objectives in the next twelve-month period include further marketing, development of the company in hopes of generating revenue from photofinishing sales. Management believes that the keys to our success include an increased awareness in the marketplace of our services and our competitive prices for photofinishing. The following events need to occur and we need to reach the following milestones in order for us to become profitable:

(1) Add the following new features to improve our website: (a) allow customers to modify photos online, including resizing, cropping and white balancing; (b) allow other people to view and rate a customer's selected photos to make suggestions and contact the customer (c) establish an affiliate program by allowing website owners to become our affiliates. An affiliate program means that if a person has a website, he can make a commission by putting our advertisement on his website. If someone clicks the advertisement and orders prints from us, the program will credit a commission to him. In other words, the affiliate program is a tracking program. We expect these features to be available before September 30, 2006, the cost of which will be $15,000.

(2) We will undertake our online promotional efforts to sell our services, encouraging potential customers to download their photographs for photofinishing by us. To expand our customer base and to extend the image of the Company, we plan to promote our website brand through a combination of advertising and participation in trade shows. We believe Internet ads are an obvious choice because that is the nature of our business. We will put text link ads on Google like our competitors. We will contact some Internet media such as dpreview.com. We also will carry on low-cost advertisements through printed media such as Meteo and Trader. We will join the "Print Ontario" trade show, which is a large printing show in North America. We expect to start all these promotions by September 30, 2006. The budget will be approximately $5,000 over the next 12 months.

(3) We will also list our website on major free search websites such as Google, Yahoo! and MSN for the vast majority of website traffic to our website. The listings on these website directories is free-of-charge. We will list our website on all of these types of search websites as much as we can.

(4) Increase the number of corner stores who will enter into dealer's agreements with us.

We will contact more corner stores for them to enter into agreements with us for providing digital film photofinishing photography.

We have cash in the amount of $19,881 as of June 30, 2006 as a result of an advance from a shareholder to allow us to further develop the company. We anticipate that we will need to raise additional capital for the implementation of our business plan ($4,000 - $12,000) and for legal and accounting expenses ($10,000) for the next twelve months. We will obtain the additional funding by borrowing from our directors and officers, as well as a private placement. We cannot guarantee that additional funding will be available on favorable terms, if at all. If adequate funds are not available, then our ability to expand our operations may be adversely affected. Our officers and directors have agreed to continue contributing funds to pay for our expenses by way of loans if adequate funds are not available. Therefore, we have not contemplated any plan of liquidation in the event that we do not generate revenues. Because our directors and officers feel confident about our business, we understand that our directors and officers will contribute their own funds to support the business of our Company. When there is a need for cash, the amount of funds to be contributed by our directors and officers will depend on the personal financial condition of each of them - the director or officer in a better personal financial condition will contribute more of his own funds to our Company. It is our understanding that our directors and officers agreed to first contribute up to an additional $50,000 of their own funds collectively toward our Company as loans without interest before we need to seek financing from other sources.

Liquidity and Capital Resources

Presently, our revenues are not sufficient to meet our operating and capital expenses. Management projects that we will require additional funding to expand our current operations.

There is some doubt about our ability to continue as a going concern as the continuation of our business is dependent upon the successful development and market acceptance of our website, and finally, maintaining a break-even or profitable level of operations.

We have incurred operating losses since inception. As at June 30, 2006 we had cash-on-hand of $19,881. Management projects that we may require an additional $19,000 to $27,000 to fund our ongoing operating expenditures and working capital requirements for the next twelve-month period, as follows: