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<SEC-DOCUMENT>0001295345-06-000048.txt : 20060512
<SEC-HEADER>0001295345-06-000048.hdr.sgml : 20060512
<ACCEPTANCE-DATETIME>20060512095054
ACCESSION NUMBER:		0001295345-06-000048
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20060331
FILED AS OF DATE:		20060512
DATE AS OF CHANGE:		20060512

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHEFFIELD PHARMACEUTICALS INC
		CENTRAL INDEX KEY:			0000894158
		STANDARD INDUSTRIAL CLASSIFICATION:	BLANK CHECKS [6770]
		IRS NUMBER:				133808303
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12584
		FILM NUMBER:		06832443

	BUSINESS ADDRESS:	
		STREET 1:		1220 GLENMORE DRIVE
		CITY:			APOPKA
		STATE:			FL
		ZIP:			32712
		BUSINESS PHONE:		407-880-2213

	MAIL ADDRESS:	
		STREET 1:		1220 GLENMORE DRIVE
		CITY:			APOPKA
		STATE:			FL
		ZIP:			32712

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SHEFFIELD MEDICAL TECHNOLOGIES INC
		DATE OF NAME CHANGE:	19940606
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>sfph.htm
<DESCRIPTION>QUARTERLY REPORT FOR THE PERIOD ENDED MARCH 31, 2006
<TEXT>
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<title>qsb</title>
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<p ALIGN="CENTER"><b><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="4">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">Washington, D.C. 20549<br>
</font></b><font SIZE="4" FACE="Times New Roman, Times, Serif">___________________<br>
<br>
<strong>FORM 10-QSB<br>
</strong>___________________</font></p>

<p style="MARGIN: 0in 0in 0pt 0.5in; COLOR: windowtext; TEXT-INDENT: -0.5in"
align="center"><b><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" face="Wingdings"
size="3">&#253</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 3pt" size="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" size="3">QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext" align="center">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
face="Times New Roman" size="2">For the quarterly period ended March 31, 2006</font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext" align="center">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
face="Times New Roman" size="2">OR</font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
size="1">&nbsp; </font></p>

<p style="MARGIN: 0in 0in 0pt 0.5in; COLOR: windowtext; TEXT-INDENT: -0.5in"
align="center"><b><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" face="Wingdings"
size="3">&#168</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 3pt" size="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" size="3">TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
face="Times New Roman" size="2">For the transition period from
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center">&nbsp;</p>

<p style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center"
align="center"><font face="Times New Roman" size="2">Commission file number: 01-12584</font></p>

<p style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center"
align="center">&nbsp;</p>

<p ALIGN="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="5"><b>SHEFFIELD
PHARMACEUTICALS, INC.<br>
</b></font><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">(Exact Name Of Registrant
As Specified In Its Charter)</font></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="1237">
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="CENTER" WIDTH="613" bgcolor="#FFFFFF"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
    SIZE="2"><u>Delaware</u></font></p>
    </div></td>
    <td ALIGN="CENTER" WIDTH="624" bgcolor="#FFFFFF"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
    SIZE="2"><u><p>13-3808303</u></font></p>
    </div></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="CENTER" WIDTH="613" bgcolor="#ccffcc"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="1">(State of Incorporation)</font></p>
    </div></td>
    <td ALIGN="CENTER" WIDTH="624" bgcolor="#ccffcc"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="1">(I.R.S. Employer
    Identification No.)</font></p>
    </div></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="CENTER" WIDTH="613" bgcolor="#FFFFFF"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p>&nbsp;</p>
    </div></td>
    <td bgcolor="#FFFFFF" width="624"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; </font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="CENTER" WIDTH="613"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><u><p></u><font
    size="2">1220 Glenmore Drive, Apopka, FL</font></p>
    </div></td>
    <td ALIGN="CENTER" WIDTH="624"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><u><p><font
    size="2">32712</font></u></p>
    </div></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="CENTER" WIDTH="613"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="1">(Address of Principal Executive Offices)</font></p>
    </div></td>
    <td ALIGN="CENTER" WIDTH="624"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="1">(ZIP Code)</font></p>
    </div></td>
  </tr>
</table>

<p align="center"><font size="2">&nbsp;Registrant's Telephone Number, Including Area Code:
(407) 880-2213</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Indicate by check
mark whether the registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.&nbsp;&nbsp;Yes&nbsp;</font><font
size="2" FACE="WINGDINGS">&#120</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">&nbsp;No&nbsp;</font><font
size="2" FACE="WINGDINGS">&#168</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><br>
<br>
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule
12b-2 of the Exchange Act). Yes&nbsp;</font><font size="2" FACE="WINGDINGS">&#168</font><font
FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">&nbsp;No&nbsp;</font><font size="2"
FACE="WINGDINGS">&#120</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">&nbsp;</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">At March 31, 2006,
the Registrant had 1,792,217 shares of common stock outstanding.</font></p>

<p ALIGN="JUSTIFY"><font size="2">Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act). </font><font
FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Yes&nbsp;</font><font size="2"
FACE="WINGDINGS">&#120</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">&nbsp;No&nbsp;</font><font
size="2" FACE="WINGDINGS">&#168</font></p>

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<hr SIZE="4" NOSHADE COLOR="#000000">
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<hr NOSHADE SIZE="5">
<font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">

<hr SIZE="1" NOSHADE COLOR="#000000">
</font>

<p ALIGN="CENTER">&nbsp;</p>

<p ALIGN="CENTER"><a name="TABLE OF CONTENTS"><strong><font size="2">TABLE OF CONTENTS</font></strong></a></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <tr VALIGN="BOTTOM">
    <th nowrap ALIGN="LEFT"><font face="Times New Roman" size="2">Item</font><hr SIZE="1"
    NOSHADE COLOR="#000000" ALIGN="left">
    </th>
    <th></th>
    <th></th>
    <th></th>
    <th nowrap ALIGN="LEFT"><font face="Times New Roman" size="2">Description</font><hr
    SIZE="1" NOSHADE COLOR="#000000" ALIGN="left">
    </th>
    <th COLSPAN="3" nowrap><font face="Times New Roman" size="2">Page</font><hr SIZE="1"
    NOSHADE COLOR="#000000" WIDTH="22%">
    </th>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="CENTER" WIDTH="12%" COLSPAN="8"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2"><strong>PART I - FINANCIAL INFORMATION</strong></font></p>
    </div></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp; </font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 1.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><a
    HREF="#a050"><p></a><font size="2">&nbsp; <a href="#ITEM 1.&nbsp;FINANCIAL STATEMENTS">FINANCIAL
    STATEMENTS.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">3</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 2.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><a
    HREF="#a051"><p></a><font size="2">&nbsp; <a
    href="#ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION">MANAGEMENT'S
    DISCUSSION AND ANALYSIS AND PLAN OF OPERATION</a>.</font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">3</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="12%"><font size="2">ITEM 3.</font></td>
    <td WIDTH="3%"></td>
    <td WIDTH="3%"></td>
    <td WIDTH="3%"></td>
    <td ALIGN="LEFT" WIDTH="75%"><font size="2">&nbsp; <a
    href="#ITEM 3. CONTROLS AND PROCEDURES">CONTROLS AND PROCEDURES.</a></font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap></td>
    <td ALIGN="RIGHT"><font size="2">4</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp; </font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="center" WIDTH="12%" COLSPAN="8" bgcolor="#ccffcc"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font size="2"><strong>PART II - OTHER
    INFORMATION</strong></font></p>
    </div></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp; </font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 1.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 1. LEGAL PROCEEDINGS">LEGAL PROCEEDINGS.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">4</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 2.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 2. CHANGES IN SECURITIES">CHANGES IN SECURITIES.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">4</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 3.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 3.&nbsp;DEFAULTS UPON SENIOR SECURITIES">DEFAULT UPON
    SENIOR SECURITIES.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font size="2">4</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 4.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a
    href="#ITEM 4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS">SUBMISSION OF
    MATERS TO A VOTE OF SECURITY HOLDERS.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">5</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#ccffcc">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 5.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 5.&nbsp;OTHER INFORMATION">OTHER INFORMATION.</a></font></p>
    </div></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">5</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="12%"><font size="2">ITEM 6.</font></td>
    <td WIDTH="3%"></td>
    <td WIDTH="3%"></td>
    <td WIDTH="3%"></td>
    <td ALIGN="LEFT" WIDTH="75%"><font size="2">&nbsp; <a
    href="#ITEM 6.&nbsp;EXHIBITS AND REPORTS ON FORM 8-K">EXHIBITS AND REPORTS ON FORM 8-K.</a></font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap></td>
    <td ALIGN="RIGHT"><font size="2">5</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap></td>
  </tr>
</table>

<p>&nbsp;</p>
<b><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">

<hr SIZE="1" NOSHADE COLOR="#000000">
</font></b>

<hr NOSHADE SIZE="5">
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p ALIGN="CENTER"><font size="2"><b>PART I - FINANCIAL INFORMATION</b></font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 1.&nbsp;FINANCIAL STATEMENTS">ITEM
1.&nbsp;FINANCIAL STATEMENTS</a><b> </b></font><a href="#TABLE OF CONTENTS"><font size="1">Back
to Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">The Registrant's unaudited interim financial statements
are attached hereto. <a
href="#Financial Statements for the Interim Periods ended June 30, 2003 and 2002">Unaudited
Interim Financial Statements</a></font></p>

<p ALIGN="JUSTIFY"><font size="2"><a
name="ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION">ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION</a> </font><font size="1"><a
href="#TABLE OF CONTENTS">Back to Table of Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">Some of the statements contained in this quarterly
report of Sheffield Pharmaceutical, Inc., a Delaware corporation (hereinafter </font><font
size="2" color="#000000">referred to as &quot;we&quot;, &quot;us&quot;, &quot;our&quot;,
&quot;Company&quot; and the &quot;Registrant</font><font size="2">&quot;) discuss future
expectations, contain projections of our plan of operation or financial condition or state
other forward-looking information. Forward-looking statements give our current
expectations or forecasts of future events. You can identify these statements by the fact
that they do not relate strictly to historical or current facts. They use of words such as
&quot;anticipate,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;project,&quot;
&quot;intend,&quot; &quot;plan,&quot; &quot;believe,&quot; and other words and terms of
similar meaning in connection with any discussion of future operating or financial
performance. From time to time, we also may provide forward-looking statements in other
materials we release to the public.</font></p>

<p align="justify"><font size="2" color="#000000"><u>General Background of the Registrant</u></font></p>

<p align="justify" style="text-align: justify"><font size="2">Sheffield Pharmaceutical,
Inc.<font color="#000000">, a Delaware corporation, </font>was incorporated under Canadian
law in October 1986. In May 1992, the Registrant was domesticated to Wyoming pursuant to a
continuance procedure under Wyoming law. In January 1995, the Registrant's shareholders
approved the proposal to reincorporate the Registrant in Delaware, which reincorporation
was effected on June 13, 1995. </font></p>

<p align="justify" style="text-align: justify"><font size="2">Prior to filing for
bankruptcy in June 2003, the Registrant was a development stage company and, as such, had
been principally engaged in research, development and licensing efforts. The Company
generated minimal operating revenue, sustained significant net operating losses, and
required additional capital that the Company obtained through out-licensing of rights to
its technology, as well as through equity and debt offerings. The Registrant provided
pharmaceutical therapies by combining pulmonary drug delivery technologies with existing
and emerging therapeutic agents and had developed a range of products to treat respiratory
and systemic diseases. Sheffield believed these pulmonary delivery technologies would
allow it to capitalize on the growing drug delivery market by providing both advanced
respiratory treatments and patient-friendly alternatives for therapies that could have
been administered only by injection or other inconvenient means.</font></p>

<p style="text-align: justify"><font size="2">By mid 2003, the Registrant had failed to
reach profitability and was undercapitalized to implement its business plan. The Company's
inability to meet its obligations as they became due and to continue to operate its
business as a going concern resulted in the Company&#146;s decision to seek relief under
Chapter 7 of the Bankruptcy Code. </font></p>

<p align="justify"><font size="2">On June 6, 2003, the Registrant filed a voluntary
Chapter 7 bankruptcy petition under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court
Western District of New York (case no. 03-22303). </font><font face="Times New Roman"
size="2">As a result of the Chapter 7 bankruptcy petition, the Registrant's assets were
transferred to a United States Trustee and the Registrant terminated its business
operations.</font><font size="2"> </font><font face="Times New Roman" size="2">During 2003
and 2004, the Bankruptcy Trustee had disposed of substantially all of the assets of the
Registrant and its subsidiaries. </font><font size="2">On June 7, 2005, the Trustee in
proceedings under Chapter 7, filed a notice of motion for the sale of the Company's
corporate entity and 70,000,000 (280,000 shares adjusted for reverse split) restricted
shares of the Registrant's unissued common stock. On July 6, 2005, the Bankruptcy Court
approved an order authorizing a change in control and confirming that Glenin Bay Equity,
LLC is a good faith purchaser pursuant to 11 USC Section 363(m). The Court order further
provided that the Company, subsequent to the bankruptcy proceeding, is free and clear of
all liens, claims and interests of others and that the sale was free and clear of any and
all other real or personal property interests, including any interests in the former
subsidiaries of Sheffield.</font></p>

<p align="justify"><font size="2"><u>Change in Control following Bankruptcy</u></font></p>

<p style="text-align: justify"><font size="2">The material terms of the transaction
confirmed by the Bankruptcy Court authorized Glenin Bay Equity, LLC. to receive 70,000,000
(280,000 shares adjusted for reverse split) restricted shares of common stock and to
appoint new members to the Registrant's board of directors. On July 8, 2005, Glenin Bay
Equity, LLC. appointed </font><font size="2" color="#000000">Michael F. Manion to the
board of directors of the Registrant, which board subsequently appointed Mr. Manion to be
chief executive officer and chief financial officer of the Registrant (the
&quot;Management&quot;).</font></p>

<p><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><u>New Business
Objectives of the Registrant</u></font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">As
a result of the Chapter 7 bankruptcy proceeding, the Registrant has no present operations.
Management determined to direct its efforts and limited resources to pursue potential new
business opportunities. The Registrant does not intend to limit itself to a particular
industry and has not established any particular criteria upon which it shall consider and
proceed with a business opportunity.</font></p>

<p align="justify"><font size="2">Our common stock is subject to quotation on the NASD
OTCBB under the symbol SFPH. There is currently only a limited trading market in the
Registrant's shares. There can be no assurance that there will be an active trading market
for our common stock. In the event that an active trading market commences, there can be
no assurance as to the market price of our shares of common stock, whether any trading
market will provide liquidity to investors, or whether any trading market will be
sustained.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Management
intends to devote such time as it deems necessary to carry out the Registrant's affairs.
The exact length of time required for the pursuit of any new potential business
opportunities is uncertain. No assurance can be made that we will be successful in our
efforts. We cannot project the amount of time that our Management will actually devote to
the Registrant's plan of operation.</font></p>

<p ALIGN="JUSTIFY"><font size="2" color="#000000"><u>Plan of Operation</u></font></p>

<p align="justify"><font size="2" color="#000000">We have no present operations or
revenues and our current activities are related to seeking new business opportunities,
including seeking an acquisition or merger with an operating company. If our board of
directors seeks to acquire another business or pursue a new business opportunity,
Management would have substantial flexibility in identifying and selecting a prospective
business. Registrant would not be obligated nor does Management intend to seek
pre-approval from our shareholders. Under the laws of the State of Delaware, the consent
of holders of a majority of the issued and outstanding shares, acting without a
shareholders meeting, can approve an acquisition.</font></p>

<p align="justify"><font size="2" color="#000000">The Registrant is entirely dependent on
the judgment of Management in connection with pursuing a new business opportunity or a
selection process for a target operating company. In evaluating a prospective new business
opportunity or an operating company, we would consider, among other factors, the
following: (i) costs associated with effecting a transaction; (ii) equity interest in and
opportunity to control the prospective candidate; (iii) growth potential of the target
business; (iv) experience and skill of management and availability of additional
personnel; (v) necessary capital requirements; (vi) the prospective candidate's
competitive position; (vii) stage of development of the business opportunity; (viii) the
market acceptance of the business, its products or services; (ix) the availability of
audited financial statements of the potential business opportunity; and (x) the regulatory
environment that may be applicable to any prospective business opportunity. </font></p>

<p align="justify"><font size="2" color="#000000">The foregoing criteria are not intended
to be exhaustive and there may be other criteria that Management may deem relevant. In
connection with an evaluation of a prospective or potential business opportunity,
Management may be expected to conduct a due diligence review.</font></p>

<p align="justify"><font size="2" color="#000000"><u>Liquidity and Capital Resources</u></font></p>

<p align="justify"><font size="2" color="#000000">We will use our limited personnel and
financial resources in connection with seeking new business opportunities, including
seeking an acquisition or merger with an operating company. It may be expected that
entering into a new business opportunity or business combination will involve the issuance
of a substantial number of restricted shares of common stock. If such additional
restricted shares of common stock are issued, our shareholders will experience a dilution
in their ownership interest in the Registrant. If a substantial number of restricted
shares are issued in connection with a business combination, a change in control may be
expected to occur.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">In
connection with our plan to seek new business opportunities and/or effecting a business
combination, we may determine to seek to raise funds from the sale of restricted stock or
debt securities.We have no agreements to issue any debt or equity securities and cannot
predict whether equity or debt financing will become available at terms acceptable to us,
if at all.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">There
are no limitations in our articles of incorporation on our ability to borrow funds or
raise funds through the issuance of restricted common stock to effect a business
combination. Our limited resources and lack of operating history may make it difficult to
do borrow funds or raise capital. Our inability to borrow funds or raise funds through the
issuance of restricted common stock required to effect or facilitate a business
combination may have a material adverse effect on our financial condition and future
prospects, including the ability to complete a business combination. To the extent that
debt financing ultimately proves to be available, any borrowing will subject us to various
risks traditionally associated with indebtedness, including the risks of interest rate
fluctuations and insufficiency of cash flow to pay principal and interest, including debt
of an acquired business.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 3. CONTROLS AND PROCEDURES">ITEM 3.
CONTROLS AND PROCEDURES</a><b> </b></font><a href="#TABLE OF CONTENTS"><font size="1">Back
to Table of Contents</font></a></p>

<p style="text-align: justify"><font size="2"><em>Evaluation of disclosure controls and
procedures.</em> <font color="#000000">As of March 31, 2006, the Company's chief executive
officer and chief financial officer conducted an evaluation regarding the effectiveness of
the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or
15d-15(e) under the&nbsp; Exchange Act. Based upon the evaluation of these controls and
procedures, our president and chief financial officer concluded that our disclosure
controls and procedures were effective as of the date of filing this quarterly report.</font></font></p>

<p style="text-align: justify"><font size="2"><em>Changes in internal controls.</em> </font><font
size="2" color="#000000">During the quarterly period covered by this report, no changes
occurred in our internal control over financial reporting that materially affected, or is
reasonably likely to materially affect, our internal control over financial reporting.</font></p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p ALIGN="center"><font size="2"><b>PART II - OTHER INFORMATION</b></font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 1. LEGAL PROCEEDINGS">ITEM 1. LEGAL
PROCEEDINGS</a><b> </b></font><a href="#TABLE OF CONTENTS"><font size="1">Back to Table of
Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 2. CHANGES IN SECURITIES">ITEM 2. CHANGES
IN SECURITIES</a> </font><font size="1"><a href="#TABLE OF CONTENTS">Back to Table of
Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 3.&nbsp;DEFAULTS UPON SENIOR SECURITIES">ITEM
3.&nbsp;DEFAULTS UPON SENIOR SECURITIES</a><b> </b></font><font size="1"><a
href="#TABLE OF CONTENTS">Back to Table of Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a
name="ITEM 4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS">ITEM
4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</a> </font><font size="1"><a
href="#TABLE OF CONTENTS">Back to Table of Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 5.&nbsp;OTHER INFORMATION">ITEM
5.&nbsp;OTHER INFORMATION</a><b> </b></font><font size="1"><a href="#TABLE OF CONTENTS">Back
to Table of Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">None.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><a name="ITEM 6.&nbsp;EXHIBITS AND REPORTS ON FORM 8-K">ITEM
6.&nbsp;EXHIBITS AND REPORTS ON FORM 8-K</a><b> </b></font><font size="1"><a
href="#TABLE OF CONTENTS">Back to Table of Contents</a></font></p>

<p ALIGN="JUSTIFY"><font size="2">(a) The following documents are filed as exhibits to
this report on Form 10-QSB or incorporated by reference herein. Any document incorporated
by reference is identified by a parenthetical reference to the SEC filing that included
such document.</font></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" height="0%">
  <tr VALIGN="BOTTOM">
    <th nowrap height="0" bgcolor="#ccffcc" width="8%"><p align="left"><font size="1">Exhibit
    No.</font></th>
    <th nowrap ALIGN="LEFT" height="0" bgcolor="#ccffcc" width="92%"><font size="1">Description</font></th>
  </tr>
  <tr>
    <td width="8%" bgcolor="#FFFFFF" height="0%"><font size="1">31.1</font></td>
    <td width="92%" bgcolor="#FFFFFF" height="0%"><font size="1">Certification of CEO and CFO
    pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.</font></td>
  </tr>
  <tr>
    <td width="8%" bgcolor="#FFFFFF" height="0%"><font size="1">32.1</font></td>
    <td width="92%" bgcolor="#FFFFFF" height="0%"><font size="1">Certification of CEO and CFO
    pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002.</font></td>
  </tr>
</table>

<p><font size="2">(b)&nbsp;Reports on Form 8-K during the quarter covered by this report:</font></p>

<p><font size="2">The Registrant did not file a Form 8-K during the three-month period
ended March 31, 2006.</font></p>

<p align="center"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">SIGNATURES</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on the date
indicated.</font></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <tr>
    <td ALIGN="LEFT" WIDTH="56%"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><i>&nbsp;
    </i></font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="56%"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><u>/s/
    Michael F. Manion</u><br>
    Michael F. Manion<br>
    &nbsp;&nbsp; <em>CEO, CFO and Chairman</em><br>
    <i>&nbsp;&nbsp; Dated: May 11, 2006</i></font></td>
  </tr>
</table>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p align="center"><a
name="Financial Statements for the Interim Periods ended June 30, 2003 and 2002"><strong><font
size="2">Financial Statements for the Interim Periods ended March&nbsp; 31, 2006 and 2005</font></strong></a><font
size="1"> <a href="#TABLE OF CONTENTS">Back to Table of Contents</a></font></p>

<table style="BORDER-BOTTOM: rgb(0,0,0) 1px" height="0%" cellSpacing="0" cellPadding="0"
width="100%" border="0">
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center" bgcolor="#ccffcc"><font
    size="2"><b>Sheffield Pharmaceuticals, Inc.</b></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center"><a
    name="Balance Sheets"><font size="2">Balance Sheets</font></a></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center"><font size="1"><strong>&nbsp;
    </strong></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="1"><strong>March 31,
    2006</strong></font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="1"><strong>December
    31, 2005</strong></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="1"><strong>&nbsp; </strong></font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">(Unaudited)</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1"><strong>&nbsp; </strong></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><p align="center"><font size="2">ASSETS</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Current Assets:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Cash</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; Prepaid expenses</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"
    style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total current assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 2px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Other assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total Assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 2px double rgb(0,0,0)" bgcolor="#ccffcc"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 2px double rgb(0,0,0)" bgcolor="#ccffcc"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><p align="center"><font size="2">LIABILITIES
    AND STOCKHOLDERS' EQUITY</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Current Liabilities:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Accounts
    payable-trade</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Accrued expenses</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Expenses paid by
    related parties</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">9,350</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">9,350</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">9,350</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#ccffcc"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">9,350</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Stockholders' Deficiency:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Preferred Stock,
    10,000,000 authorized, $0.001 par value; none issued</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">-</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">-</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Common stock,
    100,000,000 authorized, $0.001 par value;</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
    1,792,217 issued and outstanding at March 31, 2006 and December 31, 2005</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">1,792</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">1,792</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Additional paid-in
    capital</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">9,358</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">9,358</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Accumulated
    deficit</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(20,500)</font></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(20,500)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    shareholders' deficiency</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(9,350)</font></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">(9,350)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#ccffcc"><p align="left"><font
    size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders'
    deficiency</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0%" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%" bgcolor="#ccffcc"><font size="2">0</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%" bgcolor="#ccffcc"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" bgcolor="#FFFFFF" colspan="5"><font size="2">&nbsp;
    </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" bgcolor="#FFFFFF" colspan="5"><font size="2">See
    notes to unaudited interim financial statements.</font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<table height="516" cellSpacing="0" cellPadding="0" width="100%" border="0">
  <tr>
    <td width="100%" height="0" colspan="5" align="center" bgcolor="#ccffcc"><font size="2"><b>Sheffield
    Pharmaceuticals, Inc.</b></font></td>
  </tr>
  <tr>
    <td width="100%" height="1" colspan="5" align="center"><a name="Statement of Operations"><font
    size="2">Statement of Operations</font></a></td>
  </tr>
  <tr>
    <td width="100%" height="0" colspan="5" align="center"><font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="28%" height="0" colspan="3"><p align="center"><font size="1"><strong>Three
    Months Ended March 31,</strong></font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="28%" height="0" colspan="3"><p align="center"><font size="1">(Unaudited)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="1"><strong>2006</strong></font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td align="right" width="12%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="1"><strong>2005</strong></font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="1">&nbsp; </font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="12%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="12%" height="0" bgcolor="#FFFFFF"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">Revenue</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td align="right" width="12%" height="0" bgcolor="#ccffcc"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td align="right" width="12%" height="0" bgcolor="#ccffcc"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Costs and Expenses:</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="1"><font size="2">&nbsp;&nbsp; General and administrative</font></td>
    <td align="right" width="2%" height="1"></td>
    <td align="right" width="12%" height="1"><font size="2">0</font></td>
    <td align="right" width="2%" height="1"></td>
    <td align="right" width="12%" height="1"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Interest</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="12%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"
    bgcolor="#FFFFFF"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 1px none rgb(0,0,0)"
    bgcolor="#FFFFFF"></td>
    <td align="right" width="12%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"
    bgcolor="#FFFFFF"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Total costs and expenses</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Loss from continuing operations before
    discontinued operations</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Discontinued operations:</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Loss from
    discontinued operations (net of taxes)</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="12%" height="0" bgcolor="#FFFFFF"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="12%" height="0" bgcolor="#FFFFFF"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Gain on disposal of assets used in
    discontinued operations</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td align="right" width="12%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Income from discontinued operations</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">Net Income (loss)</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"><font size="2">$</font></td>
    <td align="right" width="12%" height="0" style="border-bottom: 2px double rgb(0,0,0)"
    bgcolor="#ccffcc"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 2px none rgb(0,0,0)"
    bgcolor="#ccffcc"><font size="2">$</font></td>
    <td align="right" width="12%" height="0" style="border-bottom: 2px double rgb(0,0,0)"
    bgcolor="#ccffcc"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Preferred stock dividends</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Net loss available to common shareholders</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="12%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Basic and diluted per shares amounts:</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Continued operations</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="12%" height="0"><font size="2">0.00</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="12%" height="0"><font size="2">0.00</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Discontinued operations</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="12%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.00</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 2px none rgb(0,0,0)"><font
    size="2">$</font></td>
    <td align="right" width="12%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.00</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Basic and diluted net loss</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="12%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.00</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 2px none rgb(0,0,0)"><font
    size="2">$</font></td>
    <td align="right" width="12%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.00</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="12%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Weighted average shares outstanding (basic and
    diluted)</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" align="right" width="2%" height="0"></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" align="right" width="12%" height="0"><font
    size="2">1,792,217</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" align="right" width="2%" height="0"></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" align="right" width="12%" height="0"><font
    size="2">395,500</font></td>
  </tr>
  <tr>
    <td width="130%" height="0" colspan="5"><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="130%" height="0" colspan="5"><font size="2">See Notes to Unaudited Interim
    Financial Statements.</font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<table cellSpacing="0" cellPadding="0" width="100%" border="0" height="1">
  <tr>
    <td width="101%" height="0" colspan="5" align="center" bgcolor="#ccffcc"><font size="2"><b>Sheffield
    Pharmaceuticals, Inc.</b></font></td>
  </tr>
  <tr>
    <td width="101%" height="0" colspan="5" align="center"><a name="Statements of Cash Flows"><font
    size="2">Statements of Cash Flows</font></a></td>
  </tr>
  <tr>
    <td width="101%" height="0" colspan="5" align="center"><font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="28%" align="right" height="0" colspan="3"><p align="center"><font size="1"><strong>Three
    Months Ended March 31,</strong></font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td width="2%" height="0" align="right"></td>
    <td width="28%" align="center" height="0" colspan="3"><font size="1">(Unaudited)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="1"><strong>&nbsp; </strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" align="right" style="border-bottom: 1px solid rgb(0,0,0)" height="0"><font
    size="1"><strong>2006</strong></font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="1"><strong>2005</strong></font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="1">&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="13%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Cash
    flows used by operating activities</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" align="right" width="2%" height="0"
    bgcolor="#ccffcc"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash flow from investing activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Purchase of
    equipment</font></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Cash
    used in investing activities</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="1"><font size="2">&nbsp;&nbsp; </font></td>
    <td width="2%" height="1" align="right"></td>
    <td width="13%" height="1" align="right"></td>
    <td align="right" width="2%" height="1"></td>
    <td width="13%" height="1" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash flows from financing activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Proceeds from
    debt borrowings</font></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Payments on long
    term debt</font></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Cash transferred to bankruptcy
    estate</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Net
    cash provided by financing activities</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#ccffcc"></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Change in cash</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash - beginning of period</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#ccffcc"><font size="2">Cash - end of period</font></td>
    <td width="2%" height="0" bgcolor="#ccffcc" align="right"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" align="right" width="2%" height="0"
    bgcolor="#ccffcc"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#ccffcc" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="100%" height="0" colspan="5">&nbsp; </td>
  </tr>
  <tr>
    <td width="100%" height="0" colspan="5"><font size="2">See Notes to Unaudited Interim
    Financial Statements.</font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<p ALIGN="center"><font size="2"><b>SHEFFIELD PHARMACEUTICALS, INC.</b><br>
<a name="NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS">Notes to Unaudited Interim
Financial Statements</a></font></p>
<font size="2"><b>

<p ALIGN="JUSTIFY">1. Basis of Presentation</b></p>

<p ALIGN="JUSTIFY">Sheffield Pharmaceuticals, Inc. (the &quot;Company&quot;), was
incorporated in 1986 and changed its domicile to Delaware on June 13, 1995. Prior to
filing for bankruptcy under chapter 7, Sheffield marketed a portfolio of products utilized
for treatment of pulmonary and respiratory diseases.</p>

<p ALIGN="JUSTIFY">The Financial Statements presented herein have been prepared by us in
accordance with the accounting policies described in our December 31, 2005 Annual Report
on Form 10-KSB and should be read in conjunction with the Notes to Consolidated Financial
Statements which appear in that report.</p>

<p ALIGN="JUSTIFY">The preparation of these financial statements in conformity with
accounting principles generally accepted in the United States requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities, revenues
and expenses, and related disclosure of contingent assets and liabilities. On an on going
basis, we evaluate our estimates, including those related intangible assets, income taxes,
insurance obligations and contingencies and litigation. We base our estimates on
historical experience and on various other assumptions that are believed to be reasonable
under the circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other
resources. Actual results may differ from these estimates under different assumptions or
conditions.</p>

<p ALIGN="JUSTIFY">In the opinion of management, the information furnished in this Form
10-QSB reflects all adjustments necessary for a fair statement of the financial position
and results of operations and cash flows as of and for the three-month periods ended March
31, 2006 and 2005. All such adjustments are of a normal recurring nature. The Consolidated
Financial Statements have been prepared in accordance with the instructions to Form 10-QSB
and therefore do not include some information and notes necessary to conform with annual
reporting requirements.</p>
<b>

<p ALIGN="JUSTIFY">&quot;Fresh Start&quot; Accounting: </b>On June 6, 2003 all assets were
transferred to the chapter 7 trustee in settlement of all outstanding corporate
obligations. We adopted &quot;fresh-start&quot; accounting as of June 7, 2003 in
accordance with procedures specified by AICPA Statement of Position (&quot;SOP&quot;) No.
90-7, &quot;Financial Reporting by Entities in Reorganization under the Bankruptcy
Code.&quot;</p>

<p ALIGN="JUSTIFY">All results for periods subsequent to June 6, 2003 are referred to as
those of the &quot;Successor Company&quot;. The results of operations and cash flows as
presented on the 2003 financial statements reflect the predecessor company. The results of
the discontinued component have been reclassified from continuing operations to
discontinued operations. The reclassification reduced sales for the period ended June 30,
2003 by $75,000 and related expenses by $1,245,000. The successor company had no
transactions between June 6, 2003 and the end of the reporting period.</p>

<p ALIGN="JUSTIFY">In accordance with SOP No. 90-7, the reorganized value of the Company
was allocated to the Company's assets based on procedures specified by SFAS No. 141,
&quot;Business Combinations&quot;. Each liability existing at the plan sale date, other
than deferred taxes, was stated at the present value of the amounts to be paid at
appropriate market rates. It was determined that the Company's reorganization value
computed immediately before June 7, 2003 was $0. We adopted &quot;fresh-start&quot;
accounting because holders of existing voting shares immediately before filing and
confirmation of the sale received less than 50% of the voting shares of the emerging
entity and its reorganization value is less than its post-petition liabilities and allowed
claims.</p>

<p ALIGN="JUSTIFY">The accounts of the former subsidiaries were not included in the
bankruptcy sale and have not been carried forward.</p>
<b>

<p ALIGN="JUSTIFY">2. Bankruptcy Proceedings</b></p>

<p ALIGN="JUSTIFY">On June 6, 2003, the Registrant filed a voluntary Chapter 7 petition
under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court Western District of New York
(case no. 03-22303). On July 6, 2005, the Bankruptcy Court approved an Order confirming
the sale of the public shell to Glenin Bay Equity, LLC. The transaction confirmed by the
Bankruptcy Court authorized Glenin Bay Equity, LLC. to receive 70,000,000 shares of common
stock or 70.3% of common shares outstanding.</font><font SIZE="3"></p>
</font><font size="2"><b>

<p ALIGN="JUSTIFY">Resultant Change in Control:</b> In connection with the Order
confirming the sale of debtor's interest to Glenin Bay Equity, LLC. approved by the U.S.
Bankruptcy Court Western District of New York on July 6, 2005, the Court authorized a
change in control pursuant to which Michael F. Manion will become our new director. The
new board of directors appointed Michael F. Manion as chief executive officer and chief
financial officer on July 8, 2005. The Court order further provided that the sale was free
and clear of liens, claims and interests of others and that the sale was free and clear of
any and all other real or personal property interests, including any interests in
Sheffield&#146;s subsidiaries. The issuance of 70,000,000 shares of common stock along
with a change in our board has resulted in a change in control.</p>
<b>

<p ALIGN="JUSTIFY">3. Earnings/Loss Per Share</b></p>

<p ALIGN="JUSTIFY">Basic earnings per share is computed by dividing income available to
common shareholders (the numerator) by the weighted-average number of common shares
outstanding (the denominator) for the period. Diluted earnings per share assume that any
dilutive convertible securities outstanding were converted, with related preferred stock
dividend requirements and outstanding common shares adjusted accordingly. It also assumes
that outstanding common shares were increased by shares issuable upon exercise of those
stock options for which market price exceeds the exercise price, less shares which could
have been purchased by us with the related proceeds. In periods of losses, diluted loss
per share is computed on the same basis as basic loss per share as the inclusion of any
other potential shares outstanding would be anti-dilutive.</p>
<b>

<p ALIGN="JUSTIFY">4. New Accounting Standards</b></p>

<p ALIGN="JUSTIFY">On January 1, 2006, we adopted the provisions of Statement of Financial
Accounting Standards (&quot;SFAS&quot;) 123R, &quot;Share-Based Payment&quot; (&quot;SFAS
123(R)&quot;), which requires that companies measure and recognize compensation expense at
an amount equal to the fair value of share-based payments granted under compensation
arrangements. Prior to January 1, 2006, we accounted for our stock-based compensation
plans under the recognition and measurement principles of Accounting Principles Board
(&quot;APB&quot;) Opinion 25, &quot;Accounting for Stock Issued to Employees,&quot; and
related interpretations, and would typically recognize no compensation expense for stock
option grants if options granted had an exercise price equal to the market value of the
underlying common stock on the date of grant.</font></p>
<font size="2">

<p ALIGN="JUSTIFY">We adopted SFAS 123(R) using the &quot;modified prospective&quot;
method, which results in no restatement of prior period amounts. Under this method, the
provisions of SFAS 123(R) apply to all awards granted or modified after the date of
adoption. In addition, compensation expense must be recognized for any unvested stock
option awards outstanding as of the date of adoption on a straight-line basis over the
remaining vesting period. We calculate the fair value of options using a Black-Scholes
option pricing model. We do not currently have any outstanding options therefore no charge
is required for the three months ended March 31, 2006. SFAS 123(R) also requires the
benefits of tax deductions in excess of recognized compensation expense to be reported in
the Statement of Cash Flows as a financing cash inflow rather than an operating cash
inflow. In addition, SFAS 123(R) required a modification to the Company&#146;s calculation
of the dilutive effect of stock option awards on earnings per share. For companies that
adopt SFAS 123(R) using the &quot;modified prospective&quot; method, disclosure of pro
forma information for periods prior to adoption must continue to be made.</p>

<p ALIGN="JUSTIFY">In May 2005, the FASB issued SFAS No. 154, &quot;Accounting Changes and
Error Corrections,&quot; which replaces APB Opinion No. 20 &quot;Accounting Changes,&quot;
and FASB Statement No. 3 &quot;Reporting Accounting Changes in Interim Financial
Statements,&quot; and changes the requirements for the accounting for and reporting of a
change in accounting principle. This Statement requires retrospective application to prior
periods&#146; financial statements of changes in accounting principle, unless it is
impracticable to determine either the period-specific effects or the cumulative effect of
the change. This Statement shall be effective for accounting changes and corrections of
errors made in fiscal years beginning after December 15, 2005. Early adoption is permitted
for accounting changes and corrections of errors made in fiscal years beginning after the
date this Statement is issued. We do not believe that adoption of SFAS 154 will have a
material impact on our financial statements.</p>

<p style="text-align: justify">In September&nbsp;2004, the EITF reached a consensus
regarding Issue No.&nbsp;04-1, &quot;Accounting for Preexisting Relationships Between the
Parties to a Business Combination&quot; (&quot;EITF 04-1&quot;). EITF 04-1 requires an
acquirer in a business combination to evaluate any preexisting relationship with the
acquiree to determine if the business combination in effect contains a settlement of the
preexisting relationship. A business combination between parties with a preexisting
relationship should be viewed as a multiple element transaction. EITF 04-1 is effective
for business combinations after October&nbsp;13, 2004, but requires goodwill resulting
from prior business combinations involving parties with a preexisting relationship to be
tested for impairment by applying the guidance in the consensus. We will apply EITF 04-1
to acquisitions subsequent to the effective date and in our future goodwill impairment
testing. </font></p>
</div>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>exh31_1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<html>

<head>
<title>Exhibit 31.1</title>
</head>

<p><font size="2">Exhibit 31.1</font></p>

<p align="center"><font size="2">CERTIFICATION</font></p>

<p><font size="2">I, Michael F. Manion, certify that:<br>
</font></p>

<blockquote>
  <p><font size="2">(1) I have reviewed this Quarterly Report of Sheffield Pharmaceuticals,
  Inc.; </font></p>
  <p><font size="2">(2) Based on my knowledge, this report does not contain any untrue
  statement of a material fact or omit to state a material fact necessary to make the
  statements made, in light of the circumstances under which such statements were made, not
  misleading with respect to the period covered by this report; </font></p>
  <p><font size="2">(3) Based on my knowledge, the financial statements, and other financial
  information included in this report, fairly present in all material respects the financial
  condition, results of operations and cash flows of the small business issuer as of, and
  for, the periods presented in this report; </font></p>
  <p><font size="2">(4) I am responsible for establishing and maintaining disclosure
  controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
  internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
  15d-15(f)) for the small business issuer and have: </font></p>
  <blockquote>
    <p><font size="2">(a) Designed such disclosure controls and procedures, or caused such
    disclosure controls and procedures to be designed under our supervision, to ensure that
    material information relating to the small business issuer, including its consolidated
    subsidiaries, is made known to us by others within those entities, particularly during the
    period in which this report is being prepared; </font></p>
    <p><font size="2">(b) Designed such internal control over financial reporting, or caused
    such internal control over financial reporting to be designed under our supervision, to
    provide reasonable assurance regarding the reliability of financial reporting and the
    preparation of financial statements for external purposes in accordance with generally
    accepted accounting principles; </font></p>
    <p><font size="2">(c) Evaluated the effectiveness of the small business issuer's
    disclosure controls and procedures and presented in this report our conclusions about the
    effectiveness of the disclosure controls and procedures, as of the end of the period
    covered by this report based on such evaluation; and </font></p>
    <p><font size="2">(d) Disclosed in this report any change in the small business issuer's
    internal control over financial reporting that occurred during the small business issuer's
    most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case
    of an Quarterly report) that has materially affected, or is reasonably likely to
    materially affect, the small business issuer's internal control over financial reporting;
    and </font></p>
  </blockquote>
  <p><font size="2">(5) I have disclosed, based on our most recent evaluation of internal
  control over financial reporting, to the small business issuer's auditors and the audit
  committee of the small business issuer's board of directors (or persons performing the
  equivalent functions): </font></p>
  <blockquote>
    <p><font size="2">(a) All significant deficiencies and material weaknesses in the design
    or operation of internal control over financial reporting which are reasonably likely to
    adversely affect the small business issuer's ability to record, process, summarize and
    report financial information; and </font></p>
    <p><font size="2">(b) Any fraud, whether or not material, that involves management or
    other employees who have a significant role in the small business issuer's internal
    control over financial reporting. </font></p>
  </blockquote>
</blockquote>

<p><font size="2">Date: May 11, 2006 <br>
</font></p>

<p><font size="2"><u>/s/ Michael F. Manion<br>
</u>[Signature] <br>
CEO,CFO and Chairman<br>
[Title] </font></p>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>3
<FILENAME>exh32_1.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<html>

<head>
<title>Exhibit 32.1</title>
</head>

<body>

<p align="left"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Exhibit 32.1</font></p>

<p align="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">CERTIFICATION
PURSUANT TO<br>
18 U.S.C. SECTION 1350,<br>
AS ADOPTED PURSUANT TO SECTION 906<br>
OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style="text-align: justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">In
connection with the Quarterly Report of Sheffield Pharmaceuticals, Inc. (the
&#147;Company&#148;) on Form 10-QSB for the period ended March 31, 2006 (the
&#147;Report&#148;), as filed with the Securities and Exchange Commission on the date
hereof, I, Michael F. Manion, Chief Executive Officer and Chief Financial Officer of the
Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:</font></p>

<p style="text-align: justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">1. The
Report fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and</font></p>

<p style="text-align: justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">2. The
information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</font></p>

<p>&nbsp;</p>

<p><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">/s/ Michael F. Manion</font></p>

<p><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Michael F. Manion<br>
Chief Executive Officer and Chief Financial Officer<br>
Dated: May 11, 2006</font></p>

<p><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">A signed original of this written
statement required by Section 906 has been provided to Sheffield Pharmaceuticals, Inc. and
will be retained by the Company and furnished to the Securities and Exchange Commission or
its staff upon request.</font></p>
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