<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                   FORM 10-Q


(Mark One)
 X  Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange
    Act of 1934.

For the Quarterly Period Ended: June 30, 2001


                       Commission File Number: 333-57201

                         Advanstar Communications Inc.
            (Exact name of registrant as specified in its charter)


                                   New York
                        (State or other jurisdiction of
                        incorporation or organization)

                                   59-2757389
                                (I.R.S. Employer
                              Identification No.)


                  545 Boylston Street, Boston, Massachusetts
                   (Address of principal executive offices)

                                     02116
                                  (Zip Code)

       Registrant's telephone number, including area code: (617) 267-6500

  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. Yes    X    No _____
                                              -------

As of August 14, 2001, 1,000,000 shares of the Registrant's common stock were
outstanding.
<PAGE>

PART I      Financial Information

Item 1.   Financial Statements:

<TABLE>
<CAPTION>
                                                                                           Page in this
                                                                                            Quarterly
                                                                                              Report
                                                                                              ------
                <S>                                                                        <C>
                Condensed Consolidated Balance Sheets at  June 30, 2001 (unaudited)
                  and December 31, 2000...................................................            2

                Condensed Consolidated Statements of Operations (unaudited) for the three
                  months ended June 30, 2001 and 2000.....................................            3

                Condensed Consolidated Statements of Operations (unaudited) for the six
                  months ended June 30, 2001 and 2000.....................................            4

                Condensed Consolidated Statements of Cash Flows (unaudited) for the
                  six months ended June 30, 2001 and 2000.................................            5

                Notes to Condensed Consolidated Financial Statements (unaudited)..........            6

Item 2.   Management's Discussion and Analysis of  Financial Condition and Results of
          Operations......................................................................           20

Item 3.   Qualitative and Quantitative Disclosure about Market Risk.......................           28

PART II     Other Information


Item 4.         Submissions of Matters to a Vote of Security Holders......................           29

Item 6(a).      Exhibits..................................................................           29

Item 6(b).      Reports on Form 8-K.......................................................           29

                Signature.................................................................           29

                Exhibit Index.............................................................           30

                Exhibits..................................................................
</TABLE>
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

                     CONDENSED CONSOLIDATED BALANCE SHEETS
                     (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                                                              June 30,        December 31,
                                                                                                2001             2000
                                                                                                ----             ----
                                       ASSETS                                                (Unaudited)
<S>                                                                                           <C>             <C>
CURRENT ASSETS
  Cash and cash equivalents............................................................       $ 14,461        $ 17,675
  Accounts receivable, net.............................................................         32,550          31,158
  Prepaid expenses.....................................................................          8,401          15,721
  Other................................................................................          1,668           1,832
                                                                                              --------        --------
     Total current assets..............................................................         57,080          66,386
                                                                                              --------        --------

DUE FROM AFFILIATE.....................................................................         32,271          19,769
PROPERTY, PLANT AND EQUIPMENT, net.....................................................         26,077          25,767
GOODWILL AND INTANGIBLE ASSETS, net....................................................        819,866         836,755
DEFERRED INCOME TAXES..................................................................          7,743           7,743
OTHER ASSETS...........................................................................            509             785
                                                                                              --------        --------
     Total Assets......................................................................       $943,546        $957,205
                                                                                              ========        ========


                         LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
  Current maturities of long-term debt.................................................       $  6,700        $ 13,150
  Accounts payable.....................................................................         20,462          22,007
  Accrued liabilities..................................................................         26,432          21,350
  Deferred revenue.....................................................................         47,001          67,955
                                                                                              --------        --------
     Total current liabilities.........................................................        100,595         124,462
                                                                                              --------        --------
LONG-TERM DEBT, net of current maturities..............................................        545,300         551,850
OTHER LONG-TERM LIABILITIES............................................................          4,457           5,448
MINORITY INTEREST......................................................................          8,899          10,434
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY
  Common stock, $.01 par value; 40,000,000 shares authorized; 1,000,000 shares
    issued and outstanding at June 30, 2001 and December 31, 2000......................             10              10
  Capital in excess of par.............................................................        315,617         280,842
  Accumulated deficit..................................................................        (26,508)        (16,745)
  Accumulated other comprehensive income (loss)........................................         (4,824)            904
                                                                                              --------        --------
     Total stockholder's equity  ......................................................        284,295         265,011
                                                                                              --------        --------
     Total liabilities and stockholder's equity........................................       $943,546        $957,205
                                                                                              ========        ========
</TABLE>

 The accompanying notes to financial statements are an integral part of these
                           consolidated statements.

                                       2
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share data - Unaudited)

<TABLE>
<CAPTION>
                                                                                  Successor        Predecessor
                                                                             -----------------------------------
                                                                                Three Months      Three Months
                                                                                    Ended             Ended
                                                                                   June 30,          June 30,
                                                                                     2001              2000
                                                                             -----------------------------------
<S>                                                                          <C>                  <C>
Net revenue...................................................................        $ 75,481          $ 74,400
                                                                                      --------          --------
Operating expenses:
  Costs of production.........................................................          15,598            14,548
  Selling, editorial and circulation..........................................          38,159            34,557
  General and administrative..................................................          11,633            12,283
  Depreciation and amortization...............................................          14,658            12,668
                                                                                      --------          --------
     Total operating expenses.................................................          80,048            74,056
                                                                                      --------          --------
Operating income (loss).......................................................          (4,567)              344
Other income (expense):
  Interest expense, net.......................................................         (13,518)          (12,136)
        Other income (expense), net...........................................           2,488               (58)
                                                                                      --------          --------
Loss before income taxes and minority interest................................         (15,597)          (11,850)
Income tax benefit............................................................          (4,192)           (2,243)
Minority interest.............................................................            (632)             (348)
                                                                                      --------          --------
Net loss......................................................................        $(12,037)         $ (9,955)
                                                                                      ========          ========
</TABLE>

 The accompanying notes to financial statements are an integral part of these
                           consolidated statements.

                                       3
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share data - Unaudited)

<TABLE>
<CAPTION>
                                                                                  Successor        Predecessor
                                                                             -----------------------------------
                                                                                 Six Months        Six Months
                                                                                    Ended             Ended
                                                                                  June 30,          June 30,
                                                                                    2001              2000
                                                                             -----------------------------------
<S>                                                                            <C>               <C>
Net revenue..................................................................         $204,128          $207,467
                                                                                      --------          --------
Operating expenses:
  Costs of production  ...........................................................      41,004            42,137
  Selling, editorial and circulation  ............................................      83,842            83,904
  General and administrative  ....................................................      24,108            23,693
  Depreciation and amortization  .................................................      30,446            24,903
                                                                                      --------          --------
     Total operating expenses  ...................................................     179,400           174,637
                                                                                      --------          --------
Operating income   ...............................................................      24,728            32,830
Other income (expense):
  Interest expense, net  .........................................................     (28,192)          (24,495)
  Other income (expense), net  ...................................................       1,550                (3)
                                                                                      --------          --------
Income (loss) before income taxes and minority interest  .........................      (1,914)            8,332
Provision for income taxes   .....................................................       3,975             6,726
Minority interest   ..............................................................        (766)             (711)
                                                                                      --------          --------
Income (loss) before extraordinary item and accounting change.....................      (6,655)              895
Extraordinary item - early extinguishment of debt, net............................      (2,556)                -
Cumulative effect of accounting change, net.......................................        (552)                -
                                                                                      --------          --------
Net income (loss).................................................................    $ (9,763)         $    895
                                                                                      ========          ========
</TABLE>


  The accompanying notes to financial statements are an integral part of these
                            consolidated statements.

                                       4
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (In thousands - Unaudited)

<TABLE>
<CAPTION>
                                                                              Successor          Predecessor
                                                                        ---------------------------------------
                                                                             Six Months          Six Months
                                                                                Ended               Ended
                                                                              June 30,            June 30,
                                                                                2001                2000
                                                                        ---------------------------------------
<S>                                                                       <C>                 <C>
OPERATING ACTIVITIES
 Net income (loss)  ............................................................  $  (9,763)           $    895
 Adjustments to reconcile net income to net cash provided by
  operating activities
  Extraordinary item - early extinguishment of debt.............................      2,538                   -
  Depreciation and amortization  ...............................................     30,446              24,903
  Non-cash interest  ...........................................................      1,110                 599
  Non-cash stock option compensation  ..........................................          -                (183)
  Loss on sales of assets and other  ...........................................        770               1,211
  Changes in operating assets and liabilities...................................    (14,618)             (9,448)
                                                                                  ---------            --------
    Net cash provided by operating activities  .................................     10,483              17,977
                                                                                  ---------            --------
INVESTING ACTIVITIES
 Additions to property, plant and equipment  ...................................     (4,950)             (6,463)
 Acquisition of publications and trade shows, net  .............................     (9,214)             (8,146)
 Increase in long-term receivable from affiliate................................    (12,535)                  -
 Proceeds from sale of assets and other.........................................         18              (1,103)
                                                                                  ---------            --------
   Net cash used in investing activities  ......................................    (26,681)            (15,712)
                                                                                  ---------            --------
FINANCING ACTIVITIES
 Net proceeds from revolving credit facility  ..................................     22,000               3,000
 Borrowings of long-term debt...................................................    160,000                   -
 Payments of long-term debt.....................................................   (195,000)             (4,916)
 Long-term debt financing costs.................................................     (9,001)                  -
 Capital contributions  ........................................................     34,775                   -
                                                                                  ---------            --------
    Net cash provided by (used in) financing activities  .......................     12,774              (1,916)
                                                                                  ---------            --------
EFFECT OF EXCHANGE RATE CHANGES ON CASH.........................................        210                 363
                                                                                  ---------            --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS............................     (3,214)                712
CASH AND CASH EQUIVALENTS, beginning of period  ................................     17,675              11,237
                                                                                  ---------            --------
CASH AND CASH EQUIVALENTS, end of period  ......................................  $  14,461            $ 11,949
                                                                                  =========            ========
</TABLE>

  The accompanying notes to financial statements are an integral part of these
                            consolidated statements.

                                       5
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


1.   Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared by Advanstar Communications Inc. ( Communications, the Company) in
accordance with the instructions to Form 10-Q and, therefore, do not include all
the information and footnotes required by generally accepted accounting
principles for complete financial statements. Management believes that the
disclosures are adequate to make the information presented not misleading.
However, these condensed consolidated financial statements should  be read in
conjunction with the audited financial statements and the related notes,
included in the Company's Form 10-K for the year ended December 31, 2000.  The
results of operations for the three and six month periods ended June 30, 2001,
are not necessarily indicative of the operating results that may be expected for
the entire year ending December 31, 2001.

2.  Derivative Financial Instruments

Effective January 1, 2001, the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging
Activities" which requires that derivative instruments be recorded in the
balance sheet at fair value.  Changes in the fair value of derivative financial
instruments must be recognized currently in earnings unless specific hedge
accounting criteria are met.  For those which meet the criteria, gains and
losses may be recognized in other comprehensive income rather than in current
earnings.

The adoption of SFAS 133 on January 1, 2001, resulted in the pre-tax cumulative
effect of an accounting change of a reduction to income of approximately $0.9
million and a $0.2 million reduction to other comprehensive income.

The Company uses derivative instruments to manage exposures to foreign currency
and interest rate risks.  The Company's objectives for holding derivatives are
to minimize the risks using the most effective methods to eliminate or reduce
the impacts of these exposures.

Certain forecasted transactions are exposed to foreign currency risk. Principal
currencies hedged include the Euro, British Pound and Brazilian Real.  Forward
contracts used to hedge forecasted international revenue for up to 15 months in
the future are designated as cash flow hedging instruments.  Forwards not
designated as hedging instruments under SFAS 133 are also used to manage the
impact of the variability in exchange rates.

Variable rate debt instruments are subject to interest rate risk. The Company
has entered into interest rate collar and cap agreements with remaining
maturities of up to 33 months to manage its exposure to interest rate movements
on a portion of its variable rate debt obligations.

Other expense includes income of $2.0 million and $0.9 million for the three and
six months ended June 30, 2001 representing the amount of hedge ineffectiveness
and changes in fair value of derivative instruments not designated as hedging
instruments. Other comprehensive income includes net losses of $2.0 million and
$2.5 million, respectively, for the three and six months ended June 30, 2001.

                                       6
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (UNAUDITED)

3.   Debt

On January 9, 2001, in connection with the acquisition of the Company's parent,
Advanstar, Inc. by a group of investors, including DLJ Merchant Banking Partners
III L.P., the 9.25% senior subordinated notes due 2008 (Notes) were tendered at
an offer price in cash equal to 101% of the aggregate principal amount, plus
accrued interest.  The Company financed the repurchase of the Notes with bridge
financing.  The premium paid on the tender of the Notes of $1.5 million is
reflected, net of income tax, as an extraordinary item in the accompanying 2001
condensed consolidated statement of operations.

On February 21, 2001, the Company issued $160.0 million of unsecured, 12% senior
subordinated notes, due 2011(Replacement Notes).  Interest on the Replacement
Notes is payable semi-annually on February 15th  and August 15th of each year
commencing on August 15, 2001.  The Replacement Notes are fully and
unconditionally guaranteed on a senior subordinated basis, by the Company and
its wholly-owned domestic subsidiaries.

Concurrently, Advanstar, Inc. issued units comprised of 15% senior discount
notes (the Discount Notes) with an aggregate principal amount at maturity of
approximately $68.6 million, and warrants to purchase shares of common stock of
its parent, Advanstar Holdings Corp., for consideration of approximately $34.8
million.  The Company used the proceeds from issuance of the Replacement Notes
and the Discount Notes to repay and terminate the bridge financing and to repay
approximately $45.0 million of term loan borrowings under the credit facility.

The contribution of the proceeds from the Discount Notes by Advanstar, Inc. to
the Company was treated as a capital contribution.  The Company charged-off
deferred financing costs of approximately $1.6 million, net of income taxes,
during the first quarter of 2001.  This charge is reflected as an extraordinary
item in the accompanying 2001 condensed consolidated statement of operations.


  Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                                                June 30,            December 31,
                                                                                  2001                  2000
                                                                            ---------------       ---------------
<S>                                                                          <C>             <C>
Term loan A, interest at LIBOR plus 3.00%, 7.00% at June 30, 2001, due            $ 89,200            $100,000
 quarterly through April 11, 2007
Term loan B, interest at LIBOR plus 3.50%, 7.50% at June 30, 2001, due             280,800             315,000
 quarterly through October 11, 2008
Revolving credit facility, interest at LIBOR plus 3.00%, 7.19% at June 30,          22,000                   -
 2001, due April 11, 2007
12.00% Senior subordinated notes, due 2011                                         160,000                   -
9.25% Senior subordinated notes, due 2008                                                -             150,000
                                                                            ---------------       ---------------
                                                                                   552,000             565,000

Less- Current maturities                                                            (6,700)            (13,150)
                                                                            ---------------       ---------------
                                                                                  $545,300            $551,850
                                                                            ===============       ================
</TABLE>

                                       7
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (UNAUDITED)

The Company's credit facility contains certain financial covenants, including a
minimum fixed charge coverage ratio and a maximum leverage ratio.
Additionally, certain financial covenants under the Replacement Notes include a
maximum leverage ratio, limitations on certain asset dispositions, dividends and
other restricted payments. The Company was in compliance with all covenants as
of June 30, 2001.


4.   Comprehensive Income

The tables below presents comprehensive income, defined as changes in the equity
of the Company excluding changes resulting from investments by and distributions
to shareholders.  (in thousands)

<TABLE>
<CAPTION>
                                                                              Successor    Predecessor
                                                                              ---------    -----------
<S>                                                                          <C>           <C>
                                                                                 Three         Three
                                                                                 Months        Months
                                                                                 Ended         Ended
                                                                                June 30,      June 30,
                                                                                  2001          2000
                                                                                  ----          ----


Net loss...................................................................     $(12,037)     $ (9,955)
Change in cumulative translation adjustment................................         (981)         (593)
Change in unrealized losses on derivative financial instruments,
    net of tax.............................................................       (1,975)            -
                                                                                ---------     ---------
Comprehensive loss.........................................................     $(14,993)     $(10,548)
                                                                                =========     =========

                                                                              Successor    Predecessor
                                                                              ---------    -----------
                                                                              Six Months    Six Months
                                                                                Ended         Ended
                                                                               June 30,      June 30,
                                                                                 2001          2000
                                                                                 ----          ----

Net loss...................................................................     $ (9,763)      $   895
Change in cumulative translation adjustment................................       (3,179)       (1,531)
Change in unrealized losses on derivative financial instruments, net of tax
    net of tax.............................................................       (2,549)            -
                                                                                ---------      --------
Comprehensive loss.........................................................     $(15,491)      $  (636)
                                                                                =========      ========

</TABLE>

                                       8
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


<TABLE>
<CAPTION>
                                                Trade Shows                           Corporate
                                                    and         Trade      Marketing     and
                                                Conferences  Publications  Services     Other      Totals
                                                -----------  ------------  ---------  ---------    -------
                                                                       (In thousands)
<S>                                             <C>          <C>           <C>        <C>          <C>
Three months ended June 30, 2001 (Successor)
Revenues........................................   $ 30,110      $ 40,733     $4,476   $    162    $ 75,481
Gross profit....................................      7,105        12,116      2,409         94      21,724
Segment assets..................................      8,332        32,450      2,241    900,523     943,546

-----------------------------------------------------------------------------------------------------------

Three months ended June 30, 2000
 (Prececessor)
Revenues........................................   $ 25,411      $ 43,936     $4,794   $    259    $ 74,400
Gross profit....................................      6,385        15,948      2,703        259      25,295
Segment assets..................................     15,942        35,345      2,536    724,121     777,944

<CAPTION>
                                                   Trade Shows                           Corporate
                                                       and         Trade      Marketing     and
                                                   Conferences  Publications  Services     Other      Totals
                                                   -----------  ------------  --------     -----     --------
                                                                        (In thousands)
<S>                                                <C>          <C>           <C>      <C>         <C>
Six months ended June 30, 2001 (Successor)
Revenues........................................   $119,674      $ 75,373     $8,646   $    435    $ 204,128
Gross profit....................................     55,310        19,340      4,265        367       79,282
Segment assets..................................      8,332        32,450      2,241    900,523      943,546

-------------------------------------------------------------------------------------------------------------

Six months ended June 30, 2000 (Prececessor)
Revenues........................................   $119,040      $ 78,910     $9,088   $    429    $ 207,467
Gross profit....................................     53,395        22,993      4,609        429       81,426
Segment assets..................................     15,942        35,345      2,536    724,121      777,944
</TABLE>

                                       9
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

   The reconciliation of total segment gross profit to consolidated pre-tax
income is as follows (in thousands):

<TABLE>
<CAPTION>
                                                                           Successor      Predecessor
                                                                         -----------------------------
                                                                              Three          Three
                                                                             Months         Months
                                                                              Ended          Ended
                                                                            June 30,       June 30,
                                                                              2001           2000
                                                                            --------       --------
         <S>                                                             <C>              <C>
         Total segment gross profit....................................     $ 21,724       $ 25,295
         General and administrative expense............................      (11,633)       (12,283)
         Depreciation and amortization.................................      (14,658)       (12,688)
         Other expense.................................................      (11,030)       (12,194)
                                                                            --------       --------
         Loss before minority interest and income taxes................     $(15,597)      $(11,850)
                                                                            ========       ========
<CAPTION>
                                                                           Successor      Predecessor
                                                                         -----------------------------
                                                                              Six             Six
                                                                             Months         Months
                                                                              Ended          Ended
                                                                            June 30,       June 30,
                                                                              2001           2000
                                                                            --------       --------
         <S>                                                             <C>              <C>
         Total segment gross profit....................................     $ 79,282       $ 81,426
         General and administrative expense............................      (24,108)       (23,693)
         Depreciation and amortization.................................      (30,446)       (24,903)
         Other expense.................................................      (26,642)       (24,498)
                                                                            --------       --------
         Income (loss) before minority interest and income taxes.......     $ (1,914)      $  8,332
                                                                            ========       ========
</TABLE>

6.  Related Party Transactions

Financial Advisory Fees and Agreements

Credit Suisse First Boston Corporation (CSFB), an affiliate of the DLJ Merchant
Banking funds, acted as the Company's financial advisor and was an initial
purchaser of the Replacement Notes and the Discount Notes. The Company paid
customary fees to CSFB as compensation for those services. DLJ Capital Funding,
an affiliate of the DLJ Merchant Banking funds, received customary fees and
reimbursement of expenses in connection with the bridge financing. The aggregate
amount of all fees paid to the CSFB entities in connection with these financings
for the six months ended June 30, 2001 was approximately $7.3 million, plus out-
of-pocket expenses.

                                       10
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Relationship with Advanstar.com

Advanstar.com, Inc. (Advanstar.com) an affiliate, is operating the Company's
event and publication-related web sites and is developing selected enhanced web
opportunities to serve the Company's customers in selected industries. The
Company provides Advanstar.com with certain administrative support services and
charges for these services based on a general overhead charge. In addition,
selected sales, editorial, marketing and production staff in the Company are
shared with Advanstar.com. The Company also provides Advanstar.com with
marketing and promotional support through advertising pages in its trade
publications and exhibit space in its trade shows. In return, Advanstar.com
provides support on its web sites for the Company's trade publications and trade
shows. The Company has a long-term receivable of approximately $26.7 million
from Advanstar.com as of June 30, 2001.

7. Supplemental Guarantor Condensed Consolidating Financial Statements

  Basis of presentation

    The Replacement Notes are fully and unconditionally guaranteed on a senior
subordinated basis, jointly and severally, by the Company and the wholly-owned
domestic subsidiaries. The subsidiary guarantors are Mens Apparel Guild In
California, Inc. (MAGIC) and Applied Business TeleCommunications, Inc. (ABC).
The subsidiary guarantors and the non-guarantor subsidiaries comprise all of the
direct and indirect subsidiaries of the Company. The condensed consolidated
financial statements of the guarantors are presented below and should be read in
connection with the consolidated financial statements of the Company. Separate
financial statements of the guarantors are not presented because the guarantors
are jointly, severally and unconditionally liable under the guarantees and the
Company believes the condensed consolidated financial statements presented are
more meaningful in understanding the financial position of the guarantors and
management has determined that such information is not material to investors.

    There are no significant restrictions on the ability of the subsidiary
guarantors to make distributions to the Company.

                                       11
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 JUNE 30, 2001
                          (in thousands - unaudited)

<TABLE>
<CAPTION>

                                                           Guarantor       Non-Guarantor                         Consolidated
                                        Communications    Subsidiaries      Subsidiaries         Elimination         Total
                                        --------------    ------------     ---------------     -------------     -------------
<S>                                    <C>               <C>              <C>                 <C>               <C>
                   ASSETS
Current assets:
     Cash and cash equivalents          $        5,733    $          -     $         8,728      $          -     $      14,461
     Accounts receivable, net                   29,173              41               3,336                 -            32,550
     Prepaid expenses                            3,678           2,657               2,066                 -             8,401
     Investments                                     -               -                   -                 -                 -
     Intercompany receivable (payable)        (121,767)        134,159             (12,392)                -                 -
     Other                                      (2,613)              -               4,281                 -             1,668
                                        --------------    ------------     ---------------      ------------     -------------
            Total current assets               (85,796)        136,857               6,019                 -            57,080

Due from affiliate:                             32,271                                                                  32,271

Property, plant and equipment, net              24,100             860               1,117                 -            26,077
Investments in subsidiaries:                   512,705               -                   -          (512,705)                -
Intangible assets, net:                        394,190         353,163              72,513                 -           819,866
Deferred income taxes:                           7,743               -                   -                 -             7,743
Other assets:                                      509               -                   -                 -               509
                                        --------------    ------------     ---------------      ------------     -------------
                                               885,722         490,880              79,649          (512,705)          943,546
                                        ==============    ============     ===============      ============     =============

        LIABILITIES AND SHAREHOLDER'S
                   EQUITY
Current liabilities
     Current portion of long-term debt  $        6,700    $          -     $             -      $          -     $       6,700
     Accounts payable                           13,696           1,469               5,297                 -            20,462
     Deferred revenue                            9,144          32,052               5,805                 -            47,001
     Accrued liabilities                        11,956          12,069               2,407                 -            26,432
                                        --------------    ------------     ---------------      ------------     -------------
       Total current liabilities                41,496          45,590              13,509                 -           100,595

Long term debt, net of current
     maturities:                               545,300               -                   -                 -           545,300
Other long term liabilities:                     4,241               -                 216                 -             4,457
Minority interest                                8,115               -                 784                 -             8,899

Shareholder interest
     Common stock                                   10               3                 472              (475)               10
     Capital in excess of par value            315,617         438,117              71,296          (509,413)          315,617
     Retained earnings (deficit)               (26,508)          7,170              (4,353)           (2,817)          (26,508)
     Accum other comprehensive income           (2,549)              -              (2,275)                -            (4,824)
                                        --------------    ------------     ---------------      ------------     -------------
          Total shareholders' equity           286,570         445,290              65,140          (512,705)          284,295
                                        --------------    ------------     ---------------      ------------     -------------
                                        $      885,722    $    490,880     $        79,649      $   (512,705)    $     943,546
                                        ==============    ============     ===============      ============     =============
</TABLE>
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       THREE MONTHS ENDED JUNE 30, 2001
                          (in thousands - unaudited)

<TABLE>
<CAPTION>
                                                                          Guarantor     Non-Guarantor                 Consolidated
                                                        Communications   Subsidiaries    Subsidiaries   Elimination       Total
                                                       ---------------- -------------- --------------- ------------- --------------
<S>                                                    <C>              <C>            <C>             <C>           <C>
Net revenue                                                $  65,104       $  1,795        $  8,582       $      -      $  75,481
                                                       ---------------- -------------- --------------- ------------- --------------
Operating expenses
     Cost of sales and selling, editorial and
       circulation                                            43,124          2,634           7,999              -         53,757
     General and administrative                                9,771            289           1,573              -         11,633
     Depreciation and amortization                             6,066          6,764           1,828              -         14,658
                                                       ---------------- -------------- --------------- ------------- --------------
     Total operating expenses                                 58,961          9,687          11,400              -         80,048
                                                       ---------------- -------------- --------------- ------------- --------------
Operating income (loss)                                        6,143         (7,892)         (2,818)             -         (4,567)

Other income (expense):
     Interest income (expense), net                          (13,118)             -            (400)             -        (13,518)
     Other income (expense), net                               1,560              -             928              -          2,488
                                                       ---------------- -------------- --------------- ------------- --------------
Loss before minority interest and income taxes                (5,415)        (7,892)         (2,290)             -        (15,597)

     Provision (benefit) for income tax                       (4,105)          (484)            397              -         (4,192)
     Minority interests                                          180              -            (812)             -           (632)
     Equity in loss of subsidiaries                          (10,907)             -               -         10,907
                                                       ---------------- -------------- --------------- ------------- --------------
Net loss                                                   $ (12,037)      $ (7,408)       $ (3,499)      $ 10,907      $ (12,037)
                                                       ================ ============== =============== ============= ==============
</TABLE>
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        SIX MONTHS ENDED JUNE 30, 2001
                          (in thousands - unaudited)

<TABLE>
<CAPTION>

                                                                        Guarantor     Non-Guarantor                 Consolidated
                                                       Communications  Subsidiaries   Subsidiaries   Elimination        Total
                                                       -------------- -------------- -------------- ------------   ----------------
<S>                                                    <C>            <C>            <C>            <C>            <C>
Net revenue                                                 $ 142,346     $ 35,800       $ 25,982          $ -          $ 204,128
                                                       -------------- -------------- -------------- ------------   ----------------

Operating expenses
     Cost of sales and selling, editorial and
          circulation                                          92,170       11,883         20,793            -            124,846
     General and administrative                                20,242          563          3,303            -             24,108
     Depreciation and amortization                             19,606        7,700          3,140            -             30,446
                                                       -------------- -------------- -------------- ------------   ----------------
     Total operating expenses                                 132,018       20,146         27,236            -            179,400
                                                       -------------- -------------- -------------- ------------   ----------------

Operating income (loss)                                        10,328       15,654         (1,254)           -             24,728

Other income (expense):
     Interest income (expense), net                           (27,506)           -           (686)           -            (28,192)
     Other income (expense), net                                  575            -            975            -              1,550
                                                       -------------- -------------- -------------- ------------   ----------------

Income (loss) before minority interest and income taxes       (16,603)      15,654           (965)           -             (1,914)

     Provision (benefit) for income tax                        (6,389)       8,434          1,930            -              3,975
     Minority interests                                            46            -           (812)           -               (766)
     Equity in (loss) of subsidiaries                           3,513            -              -       (3,513)
                                                       -------------- -------------- -------------- ------------   ----------------

Income before extraordinary and
     accounting change                                         (6,655)       7,220         (3,707)      (3,513)            (6,655)

     Extraordinary item                                        (2,556)           -              -            -             (2,556)
     Cumulative effect of change in
       accounting, net                                           (552)           -              -            -               (552)

                                                       -------------- -------------- -------------- ------------   ----------------
Net income (loss)                                            $ (9,763)     $ 7,220       $ (3,707)    $ (3,513)          $ (9,763)
                                                       ============== ============== ============== ============   ================

</TABLE>
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.
                CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                        SIX MONTHS ENDED JUNE 30, 2001
                          (in thousands - unaudited)

<TABLE>
<CAPTION>
                                                                                Guarantor    Non-Guarantor             Consolidated
                                                               Communications  Subsidiaries  Subsidiaries  Elimination     Total
                                                             ----------------------------------------------------------------------
<S>                                                          <C>               <C>          <C>            <C>         <C>
OPERATING ACTIVITIES:
  Net income (loss)                                          $      (9,763)    $     7,220  $    (3,707)   $     (3,513)  $  (9,763)
  Adjustments to reconcile net income (loss)
       to net cash provided by operating activities:
       Undistributed earnings of subsidiaries                       (3,513)              -            -           3,513           -
       Extraordinary item                                            2,538               -            -               -       2,538
       Depreciation and amortization                                19,606           7,700        3,140               -      30,446
       Non cash items                                                1,880               -            -               -       1,880
       Change in working capital items                              (3,405)        (14,355)       3,142               -     (14,618)

                                                             -------------     -----------  -----------    ------------   ---------
       Net cash provided by (used in) operating
       activities                                                    7,343             565        2,575               -      10,483
                                                             -------------     -----------  -----------    ------------   ---------

INVESTMENT ACTIVITIES:
       Additions to property, plant and equipment,
       net                                                          (4,215)           (566)        (169)              -      (4,950)
       Acquisitions of publ and trade shows                         (8,370)              -         (826)              -      (9,196)
       Intercompany                                                (12,535)              -            -               -     (12,535)

                                                             -------------     -----------  -----------    ------------   ---------
       Net cash provided by (used in) investing
       activities                                                  (25,120)           (566)        (995)              -     (26,681)
                                                             -------------     -----------  -----------    ------------   ---------

FINANCING ACTIVITIES:
       Capital contributions                                        34,775               -            -               -      34,775
       Long-term debt financing costs                               (9,001)              -            -               -      (9,001)
       Borrowings of long-term debt, net                           (13,000)              -            -               -     (13,000)
                                                             -------------     -----------  -----------    ------------   ---------
       Net cash provided by (used in) financing
       activities                                                   12,774               -            -               -      12,774
                                                             -------------     -----------  -----------    ------------   ---------

EFFECT OF EXCHANGE RATE CHANGES
     ON CASH AND CASH EQUIVALENTS                                        -               -          210               -         210
                                                             -------------     -----------  -----------    ------------   ---------
NET INCREASE (DECREASE) IN CASH AND
     CASH EQUIVALENTS:                                              (5,003)             (1)       1,790               -      (3,214)
                                                             -------------     -----------  -----------    ------------   ---------

CASH AND CASH EQUIVALENTS, beginning of period                      10,736               1        6,938               -      17,675
                                                             -------------     -----------  -----------    ------------   ---------
CASH AND CASH EQUIVALENTS, end of period                     $       5,733     $         -  $     8,728    $          -   $  14,461
                                                             =============     ===========  ===========    ============   =========
</TABLE>
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                             At December 31, 2000
                                (in thousands)
<TABLE>
<CAPTION>
                                                   Guarantor          Non-Guarantor                           Consolidated
                             Communications       subsidiaries        subsidiaries         Eliminations           total
                            ----------------     --------------      --------------       --------------     ---------------
<S>                         <C>                  <C>                 <C>                  <C>                <C>
          ASSETS
Current assets:
 Cash and cash equivalents         $ 10,736            $      1           $  6,938        $          -             $ 17,675
 Accounts receivable, net            28,061                 329              2,768                   -               31,158
 Prepaid expenses                     8,223               2,712              4,786                   -               15,721
 Intercompany receivable
  (payable)                         (72,727)            100,811            (28,084)                  -                    -
 Other                                1,491                   -                341                   -                1,832
                            ----------------     --------------      --------------       --------------     ---------------
   Total current assets             (24,216)            103,853            (13,251)                  -               66,386

Noncurrent assets:
 Due from affiliate                  19,769                   -                  -                   -               19,769
 Property, plant and
  equipment, net                     23,654                 713              1,400                   -               25,767
 Intangible assets, net             701,250              56,435             79,070                   -              836,755
 Deferred income taxes and
  other                               8,446                   -                 82                   -                8,528
 Investments in
  subsidiaries                      182,395                   -                  -            (182,395)                   -
                            ----------------     --------------      --------------       --------------     ---------------
                                   $911,298            $161,001           $ 67,301        $   (182,395)            $957,205
                            ================     ==============      ==============       ==============     ================
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
 Current maturities of             $ 13,150            $      -           $      -        $          -             $ 13,150
  long-term debt
 Accounts payable                    13,800               1,793              6,414                   -               22,007
 Deferred revenue                    37,389              21,526              9,040                   -               67,955
 Accrued liabilities                 15,120               3,707              2,523                   -               21,350
                            ----------------     --------------      --------------       --------------     ---------------
   Total current
    liabilities                      79,459              27,026             17,977                   -              124,462
Long-term debt, net of
 current maturities                 551,850                   -                  -                   -              551,850
Other long-term liabilities           5,448                   -                  -                   -                5,448
Minority interest                    10,434                   -                  -                   -               10,434
Stockholder's equity:
 Common stock                            10                   3                403                (406)                  10
 Capital in excess of par
  value                             280,842             134,110             49,988            (184,098)             280,842
 Accumulated deficit                (16,745)               (138)            (1,971)              2,109              (16,745)
 Accumulated other
  comprehensive income                    -                   -                904                   -                  904
                            ----------------     --------------      --------------       --------------     ---------------
        Total stockholder's
         equity                     264,107             133,975             49,324            (182,395)             265,011
                            ----------------     --------------      --------------       --------------     ---------------
                                   $911,298            $161,001           $ 67,301        $   (182,395)            $957,205
                            ================     ==============      ==============       ==============     ===============
</TABLE>

                                      13
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       THREE MONTHS ENDED JUNE 30, 2000
                          (in thousands - unaudited)


<TABLE>
<CAPTION>
                                                                    Guarantor      Non-Guarantor                  Consolidated
                                                 Communications    Subsidiaries    Subsidiaries     Elimination      Total
                                                 --------------    ------------    ------------     -----------   ------------
<S>                                             <C>               <C>              <C>            <C>           <C>
Net revenue                                      $       60,999    $        610    $     12,791     $         -   $     74,400
                                                 --------------    ------------    ------------     -----------   ------------

Operating expenses
     Cost of sales and selling, editorial and
     circulation                                         37,313           1,035          10,757               -         49,105
     General and administrative                          10,319             248           1,716               -         12,283
     Depreciation and amortization                        8,584           3,182             902               -         12,668
                                                 --------------    ------------    ------------     -----------   ------------
     Total operating expenses                            56,216           4,465          13,375               -         74,056
                                                 --------------    ------------    ------------     -----------   ------------

Operating income (loss)                                   4,783          (3,855)           (584)              -            344

Other income (expense):
     Interest income (expense), net                     (11,789)              -            (347)              -        (12,136)
     Other income (expense), net                            426               -            (484)              -            (58)
                                                 --------------    ------------    ------------     -----------   ------------
Loss before minority interest and income taxes           (6,580)         (3,855)         (1,415)              -        (11,850)
                                                 --------------    ------------    ------------     -----------   ------------

     Provision (benefit) for income tax                  (2,463)           (276)            496               -         (2,243)
     Minority interest in earnings                         (348)              -               -               -           (348)
     Equity in (loss) of subsidiaries                    (5,490)              -               -           5,490
                                                 --------------    ------------    ------------     -----------   ------------
Net loss                                         $       (9,955)   $     (3,579)   $     (1,911)    $     5,490   $     (9,955)
                                                 ==============    ============    ============     ===========   ============
</TABLE>

<PAGE>

                        ADVANSTAR COMMUNICATIONS INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        SIX MONTHS ENDED JUNE 30, 2000
                           (in thousands - unaudited)


<TABLE>
<CAPTION>

                                                                           Guarantor      Non-Guarantor                 Consolidated
                                                         Communications   Subsidiaries    Subsidiaries    Elimination       Total
                                                        ---------------- --------------- --------------- -------------- ------------
<S>                                                     <C>              <C>             <C>             <C>            <C>
Net revenue                                                 $ 146,877          $ 31,485       $ 29,105          $ -      $ 207,467
                                                        ---------------- --------------- --------------- -------------- ------------

Operating expenses
     Cost of sales and selling, editorial and
     circulation                                               93,376            10,420         22,245            -        126,041
     General and administrative                                19,924               441          3,328            -         23,693
     Depreciation and amortization                             16,748             6,407          1,748            -         24,903
                                                        ---------------- --------------- --------------- -------------- ------------
     Total operating expenses                                 130,048            17,268         27,321            -        174,637
                                                        ---------------- --------------- --------------- -------------- ------------

Operating income (loss)                                        16,829            14,217          1,784            -         32,830

Other income (expense):
     Interest expense, net                                    (23,805)                -           (690)           -        (24,495)
     Other income (expense), net                                1,501                 -         (1,504)           -             (3)

                                                        ---------------- --------------- --------------- -------------- ------------
Income (loss) before minority interest and income taxes        (5,475)           14,217           (410)           -          8,332
                                                        ---------------- --------------- --------------- -------------- ------------

     Provision (benefit) for income tax                        (1,908)            7,394          1,240            -          6,726
     Minority interest in earnings                               (711)                -              -            -           (711)
     Equity in (loss) of subsidiaries                           5,173                 -              -       (5,173)             -

                                                        ---------------- --------------- --------------- -------------- ------------
Net income (loss)                                               $ 895           $ 6,823       $ (1,650)    $ (5,173)         $ 895
                                                        ================ =============== =============== ============== ============
</TABLE>
<PAGE>

                         ADVANSTAR COMMUNICATIONS INC.
                CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                        SIX MONTHS ENDED JUNE 31, 2000
                          (in thousands - unaudited)

<TABLE>
<CAPTION>
                                                                               Guarantor    Non-Guarantor               Consolidated
                                                              Communications  Subsidiaries   Subsidiaries  Elimination      Total
                                                              --------------  ------------  ------------- ------------- ------------
<S>                                                           <C>             <C>           <C>           <C>           <C>
OPERATING ACTIVITIES:
  Net income (loss)                                              $    895       $  6,823      $ (1,650)     $ (5,173)     $    895
  Adjustments to reconcile net income (loss)
       to net cash provided by operating activities:
       Undistributed earnings of subsidiaries                      (5,173)             -             -         5,173             -
       Depreciation and amortization                               16,748          6,407         1,748             -        24,903
       Non cash Items                                               1,627              -             -             -         1,627
       Change in working capital items                              6,242        (13,505)       (2,185)            -        (9,448)

                                                                 --------       --------      --------      --------      --------
       Net cash provided by (used in) operating activities         20,339           (275)       (2,087)            -        17,977
                                                                 --------       --------      --------      --------      --------

INVESTMENT ACTIVITIES:
       Investment in subsidiaries                                 (13,089)             -             -        13,089             -
       Additions to property, plant and equipment, net             (5,871)          (215)         (377)            -        (6,463)
       Acquisitions of publ and trade shows                          (540)           500        (8,106)            -        (8,146)
       Intercompany                                                (1,103)             -             -             -        (1,103)

                                                                 --------       --------      --------      --------      --------
       Net cash provided by (used in) investing activities        (20,603)           285        (8,483)       13,089       (15,712)
                                                                 --------       --------      --------      --------      --------

FINANCING ACTIVITIES:
       Proceeds from sale of common stock and
       capital contributions and other                                  -              -        13,089       (13,089)            -
       Borrowings of long-term debt, net                           (1,916)             -             -             -        (1,916)

                                                                 --------       --------      --------      --------      --------
       Net cash provided by (used in) financing activities         (1,916)             -        13,089       (13,089)       (1,916)
                                                                 --------       --------      --------      --------      --------

EFFECT OF EXCHANGE RATE CHANGES
     ON CASH AND CASH EQUIVALENTS                                       -              -           363             -           363
                                                                 --------       --------      --------      --------      --------
NET INCREASE (DECREASE) IN CASH AND
     CASH EQUIVALENTS                                              (2,180)            10         2,882             -           712
                                                                 --------       --------      --------      --------      --------

CASH AND CASH EQUIVALENTS, beginning of period                      5,612             33         5,592             -        11,237

                                                                 --------       --------      --------      --------      --------
CASH AND CASH EQUIVALENTS, end of period                         $  3,432       $     43      $  8,474      $      -      $ 11,949
                                                                 ========       ========      ========      ========      ========
</TABLE>
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations:

     This quarterly report on Form 10-Q contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Investors are cautioned not to place undue reliance on
these forward-looking statements, including statements about plans and
objectives of management and market growth and opportunity.  These forward-
looking statements involve risks and uncertainties that could cause actual
results to differ materially from those indicated by such forward-looking
statements.  Important cautionary statements and risk factors that would affect
actual results are discussed in the Company's periodic reports and registration
statements filed with the Securities and Exchange Commission, including those
under the caption entitled "Factors That May Affect Future Results" in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission on April 16, 2001.

General
  Advanstar Communications Inc. is a worldwide provider of integrated, business-
to-business marketing communications products and services for targeted industry
sectors, principally through trade shows and conferences and through controlled
circulation trade, business and professional magazines. We also provide a broad
range of other marketing services products, including classified advertising,
direct mail services, reprints, database marketing, guides and reference books.

  We report our business in three segments:
  . trade shows and conferences, which consists primarily of the management of
    trade shows and seminars held in convention and conference centers;
  . trade publications, which consists primarily of the creation and
    distribution of controlled circulation trade, business and professional
    magazines; and
  . marketing services, which consists primarily of sales of a variety of direct
    mail and database products, magazine editorial reprints, and classified
    advertising.

  Trade shows and conferences accounted for approximately 59% and 57% of total
revenue in the six months ended June 30, 2001 and 2000, respectively.  Trade
publications accounted for approximately 37% and 38% of total revenue in the six
months ended June 30, 2001 and 2000, respectively, while marketing services
accounted for approximately 4% and 5% of total revenue in the six months ended
June 30, 2001 and 2000, respectively. Our revenue reaches its highest levels
during the first and third quarters of the year due to the timing of the MAGIC
trade shows and our other large trade shows and conferences. Because trade show
and conference revenue is recognized when a particular event is held, we may
experience fluctuations in quarterly revenue based on the movement of annual
trade show dates from one quarter to another.

  We provide our affiliate Advanstar.com with administrative support services in
accounting, finance, legal, human resource management, information technology
and business development. We also provide Advanstar.com with marketing and
promotional support through advertising pages in our trade publications and
exhibit space in our trade shows. In return, Advanstar.com provides promotional
support on its web sites for our trade publications and trade shows.

  In March 2001, our parent, Advanstar, Inc. announced plans to more tightly
focus the activities of Advanstar.com. These plans will have the effect of more
closely integrating many of the sales, marketing, technology and operating
functions of Advanstar.com with our core activities in publishing, tradeshows,
and marketing services. Also, Advanstar.com will reduce the number of internet
products originally scheduled for introduction in 2001.

                                       20
<PAGE>

  The Acquisition.   As a result of the acquisition of our company by the DLJ
Merchant Banking funds (the DLJ Acquisition), we have higher indebtedness and
interest expense than reflected in our 2000 historical results of operations. In
addition, our acquisition was accounted for under the purchase method of
accounting resulting in non-cash depreciation and amortization charges in future
periods that will be significantly higher than that reflected in our 2000
historical financial information.

  During the first quarter of 2001, we recorded an extraordinary charge of
approximately $2.6 million, net of a deferred tax benefit of approximately $1.5
million, in connection with the repayment of the 9.25% senior subordinated notes
and the write-off of deferred financing fees related to the bridge facility.
The 9.25% senior subordinated notes were refinanced with the proceeds of the
12.00% senior subordinated notes and the concurrent offering of additional
senior discount notes. See notes to condensed consolidated financial statements
in Item 1 for further details.

Sources of Revenue
  Trade shows and conferences. The trade shows and conferences segment derives
revenue principally from the sale of exhibit space and conference attendance
fees generated at its events. Events are generally held on an annual basis in
major metropolitan or convention areas such as New York City or Las Vegas. At
many of our trade shows, a portion of exhibit space is reserved and partial
payment is received as much as a year in advance.  The sale of exhibit space is
affected by the on-going quality and quantity of attendance, venue selection and
availability, industry life cycle and general market conditions. Revenue and
related direct event expenses are recognized in the month in which the event is
held. Cash is collected in advance of an event and is recorded on our balance
sheet as deferred revenue.

  Publications. The publications segment derives revenue principally from the
sale of advertising in its business-to-business magazines.  Additionally,
certain publications derive revenue from paid subscriptions, custom publishing,
and sponsorship activities.   Paid subscriptions comprise less than 5% of total
publishing revenue.   Most publications are produced monthly with advertising
sold both on an annual schedule and single insertion basis. The sale of
advertising is affected by new product releases, circulation quality, readership
and general market conditions. Advertising revenue is recognized on the
publication issue date, and subscription revenue, if any, is recognized over the
subscription period, typically one year.

  Marketing services. The marketing services segment derives its revenue from
the sale of value-added marketing products such as classified advertising, both
print and internet based, direct mail services, reprints, database marketing,
directories, guides and reference books. These products complement and, in many
cases, utilize the content or databases generated by our trade shows,
conferences and publications. The sale of these products is affected by the
success of the event or publication from which these products are derived, the
quality of the sales team and general market conditions. Revenue is generally
recognized when the applicable product is shipped.

Components of Expenses
  Trade shows and conferences. Costs incurred by the trade shows and conferences
segment include facility rent, outsourced services such as registration,
security and decorator, and attendee and exhibitor promotion. Exhibitors
generally contract directly with third parties for on-site services such as
electrical, booth set-up and drayage. Staff salaries and related payroll
expenses are treated as monthly period expenses. All other direct costs are
expensed in the month the event occurs.

  Publications. Costs incurred by the trade publications segment include
printing, paper and postage; selling and promotion; editorial and prepress; and
circulation acquisition and fulfillment. Additionally, publisher and sales staff
costs, and production, editorial and circulation staff costs, with related
payroll taxes and benefits, are charged to the publications. We outsource the
actual printing of our publications.

                                       21
<PAGE>

  Marketing services. Costs of the marketing services segment include printing
and distribution costs, database administration fees and selling and product
development salaries and related payroll taxes and benefits.

  General and administrative costs are not allocated to the segments.

Selected Financial Data
  The following table sets forth selected statements of operations and other
financial data.

  We define "EBITDA" as operating income plus amortization and depreciation.
EBITDA does not represent, and should not be considered to be, an alternative to
net income or cash flow from operations as determined in accordance with GAAP,
and our calculation thereof may not be comparable to that reported by other
companies.  We believe that EBITDA provides useful information regarding our
ability to service and/or incur indebtedness and is used by many other
companies.  Our key financial covenants under our existing credit facility,
which impact the amount of indebtedness we are permitted to incur, are based, in
part, on our EBITDA.  EBITDA does not take into account our working capital
requirements, debt service requirements and other commitments.  Accordingly,
EBITDA is not necessarily indicative of amounts that may be available to us for
discretionary uses.

  To calculate EBITDA for the three months ended June 30, 2001 and 2000, we
reduced operating income by  $0.8 million and $0.5 million, respectively, to
reflect minority interest.  To calculate EBITDA for the six months ended June
30, 2001 and 2000, we reduced operating income by  $1.1 million and $1.4
million, respectively, to reflect minority interest.


<TABLE>
<CAPTION>
                                                                Successor                        Predecessor
                                                  -------------------------------------------------------------------
                                                     Three Months       Six Months      Three Months     Six Months
                                                         Ended             Ended            Ended           Ended
                                                       June 30,          June 30,         June 30,        June 30,
                                                         2001              2001             2000            2000
                                                         ----              ----             ----            ----
<S>                                               <C>                   <C>             <C>              <C>
In thousands
Net revenue:
  Trade shows and conferences.....................         $ 30,110          $119,674        $ 25,411        $119,040
  Publications....................................           40,733            75,373          43,936          78,910
  Marketing services and other....................            4,638             9,081           5,053           9,517
                                                           --------          --------        --------        --------
     Total net revenues...........................           75,481           204,128          74,400         207,467
Production, selling and other direct expenses:
  Trade shows and conferences.....................           23,005            64,364          19,026          65,645
  Publications....................................           28,617            56,033          27,988          55,917
  Marketing services and other....................            2,135             4,449           2,091           4,479
                                                           --------          --------        --------        --------
     Total production, selling and other direct
       expenses...................................           53,757           124,846          49,105         126,041
General and administrative expenses...............           13,893            28,643          14,018          26,627
Non-cash stock option compensation................               --                --            (294)           (183)
Amortization......................................           12,398            25,911          11,227          22,152
                                                           --------          --------        --------        --------
     Operating income (loss)......................           (4,567)           24,728             344          32,830
Other income (expense):
  Interest expense, net...........................          (13,518)          (28,192)        (12,136)        (24,495)
  Other income (expense)..........................            1,856               784            (406)           (714)
Provision (benefit) for income taxes..............           (4,192)            3,975          (2,243)          6,726
                                                           --------          --------        --------        --------
Income (loss) before extraordinary item and
  accounting change...............................         $(12,037)         $ (6,655)       $ (9,955)       $    895
                                                           --------          ========        ========        ========

EBITDA............................................         $  9,320          $ 54,122        $ 12,535        $ 56,373
</TABLE>

                                       22
<PAGE>

Results of Operations
  The following discussion compares our results for the three months and six
months ended June 30, 2001 to that of our predecessor's results in 2000.

Three Months Ended June 30, 2001 Compared to the Three Months Ended June 30,
2000

Revenue

  Total revenue increased $1.1 million or 1.5% to $75.5 million in the second
quarter of 2001 from $74.4 million for the quarter ended June 30, 2000.

  Revenue from trade shows and conferences increased $4.7 million or 18.5% to
$30.1 million for the second quarter of 2001 from $25.4 million in the second
quarter of 2000.  This increase was primarily attributable to a shift in the
timing of when events take place, revenue growth in our core trade shows and new
event launches, partially offset by the discontinuation of several events in the
technology and healthcare/pharmaceutical markets and the repositioning and
consolidation of our east coast fashion events.  Second quarter 2001 results
were impacted by a net shift in timing of nine trade shows, including three
major trade shows, SeCA, iEB and e-Learning Conference and Expo.  The SeCA and
iEB shows were held in the first quarter of 2000, but moved to the second
quarter this year, while e-Learning was held in the third quarter of 2000, but
moved to the second quarter this year.  Adjusting second quarter 2000 results
for all such movements, second quarter 2001 trade show revenue decreased by
$2.6 million, or 7.9%, primarily due to the realignment of our east coast
fashion events.

  Revenue from publications decreased $3.2 million or 7.3% to $40.7 million for
the second quarter in 2001 from $43.9 million in the second quarter of 2000.
This decrease was attributable to the overall  slowdown in the economy and the
resulting reduction in marketing spending by our customers as they adjust to
slowing growth in their respective industry sectors. Advertising pages decreased
approximately 6.9% while advertising revenue per page decreased approximately
1.2% in the second quarter of 2001.  The economic outlook in the publishing
sector continues to be challenging, and forward visibility on our advertising
revenue and pages is limited, due to the concerns of our customers related to
the overall business environment. We also  discontinued publication of certain
magazines published in 2000. These declines were offset  by revenue from our
acquisition of Motor Age and Auto Body Repair News magazines.

  Revenue from marketing services was $4.6 million in the second quarter of 2001
compared to $5.1 million in the comparable period of 2000.  Marketing services
revenue is closely linked to our publishing operations and the results are in
line with the results of our publishing segment.


Production, Selling and Other Direct Expenses

  Production, selling and other direct expenses increased $4.7 million or 9.5%
to $53.8 million for the second quarter of 2001 from $49.1 million for the
second quarter of 2000.

  Expenses of trade shows and conferences increased $4.0 million or 20.9% to
$23.0 million for the second quarter of 2001 from $19.0 million in the second
quarter of 2000.  This increase was primarily due to costs associated with the
movement of events between quarters, partially offset by cost savings associated
with discontinued events. Adjusting second quarter 2000 results for these
movements, trade show and conference expenses in 2001 decreased by $0.6 million,
or 2.6%.

  Publications production, selling and other direct expenses increased $0.6
million or 2.3% to $28.6 million in the second quarter of 2001 from $28.0
million in the second quarter of 2000.  This increase was primarily attributable
to our acquisitions described above, the launch of e-Learning magazine late in
the second quarter of 2000, and a 15% postage increase effective January, 2001,
partially offset by our ongoing cost management reduction program.

                                       23
<PAGE>

  Marketing services production, selling and other direct expenses were
unchanged at $2.1 million in the second quarter of 2001 and 2000, respectively.

General and Administrative Expenses

  General and administrative expenses decreased  $0.1 million, or 0.9%, to $13.9
million in the second quarter of 2001 from $14.0 million in the second quarter
of 2000. Depreciation expense increased $0.6 million related to the development
and expansion of our information technology infrastructure, offset by cost
savings in our industry-focused infrastructure and our central service groups,
such as publishing operations, business development and finance.

Amortization

  Amortization expense increased $1.2 million from $11.2 million in the second
quarter of 2000 to $12.4 million in the second quarter of 2001 primarily due to
increased amortization of intangible assets related to the DLJ Acquisition.

Interest Expense

  Net interest expense increased $1.4 million or 11.4% to $13.5 million in the
second quarter of 2001 from $12.1 million in the second quarter of 2000 due to
the additional indebtedness necessary to fund the DLJ Acquisition.  In February
2001, we replaced our existing $150.0 million, 9.25% senior subordinated notes
with $160.0 million, 12.00% senior subordinated notes.

Other Income and Expense

  Other income increased $2.3 million to $1.9 million in the second quarter of
2001 from a net expense of  $0.4 million in the second quarter of  2000.  As a
result of the provisions of  SFAS 133, the Company recorded a $2.0 million gain
during the quarter, primarily due to an increase in the effectiveness of our
interest rate protection agreements related to an overall decline in interest
rates. Under SFAS 133, our derivative financial instruments are required to be
marked-to-market each period to reflect the current fair value. See the notes to
condensed consolidated financial statements in Item 1 for further details.

Income Taxes

  Income tax benefit increased $2.0 million in the quarter to $4.2 million in
the second quarter of 2001 from $2.2 million in the second quarter of 2000.
This increase was primarily due to a decrease in taxable earnings related to
increased interest expense and other expenses as more fully described above,
partially offset by an increase in non-deductible amortization resulting from
the DLJ Acquisition.

EBITDA

  EBITDA decreased $3.2 million or 25.6% to $9.3 million in the second quarter
of 2001 from $12.5 million in the second quarter of 2000.  The decrease was
primarily due to a general economic downturn in our publishing segment as more
fully discussed above.  Adjusting second quarter 2000 for the movement of trade
shows from one quarter to another, EBITDA in the second quarter of 2001
decreased by $5.3 million, or 36.3% from the second quarter of 2000.

                                       24
<PAGE>

Six Months Ended June 30, 2001 Compared to the Six Months Ended June 30, 2000

Revenue

  Total revenue decreased $3.4 million or 1.6% to $204.1 million in the first
half of 2001 from $207.5 million for the comparable period in 2000.

  Revenue from trade shows and conferences increased $0.7 million or 0.5% to
$119.7 million in the first half of  2001 from $119.0 million for the comparable
period in 2000.  Strong performances in our larger first quarter events, such as
New York art and beauty shows, our motorcycle shows, MAGIC fashion and apparel
events and our Brazil telecom show were partially offset by the impact of our
east coast fashion realignment and cancellation of three call center events in
Europe and the United States.  Event timing shifts did not significantly impact
our year-to-date results.

  Revenue from publications decreased $3.5 million or 4.5% to $75.4 million in
the first half of 2001 from $78.9 million for the comparable period in 2000.
This decrease was primarily attributable to a slowdown in our existing product
portfolio due to a general economic downturn and the discontinuation of certain
magazines published in 2000, partially offset by our acquisition of Motor Age
and Auto Body Repair News magazines and launches in the first half of 2001.
Advertising pages decreased approximately 4.4% while advertising revenue per
page remained steady.  The economic outlook in the publishing sector continues
to be challenging, and forward visibility on our advertising revenue and pages
is limited, due to the concerns of our customers related to the overall business
environment.

  Revenue from marketing services was $9.1 million in the first half of 2001
compared to $9.5 million in the comparable period of 2000.  Marketing services
revenue is closely linked to our publishing operations, but performed slightly
better than the related publications.


Production, Selling and Other Direct Expenses

  Production, selling and other direct expenses decreased $1.2 million or 1.0%
to $124.8 million in the first half of 2001from $126.0 million in the first half
of 2000.

  Expenses of trade shows and conferences decreased $1.2 million or 2.0% to
$64.4 million in the first half of 2001 from $65.6 million in the comparable
period in 2000. This decrease was primarily due to cost savings associated with
discontinued events, partially offset by costs related to growth in our existing
events and new product launches. Event timing shifts did not significantly
impact trade show costs year-to-date.

  Publications production, selling and other direct expenses increased $0.1
million or 0.2% to $56.0 million in the first half of 2001 from $55.9 million in
the first half of 2000.  This increase was primarily attributable to our
acquisitions described above and a 15% postal rate increase in January, 2001,
partially offset by ongoing cost management strategies.

  Marketing services production, selling and other direct expenses was $4.5
million in the first half of 2001 and 2000, respectively.

General and Administrative Expenses

  General and administrative expenses increased $2.0 million, or 7.6% to $28.6
million in the first half of 2001 from $26.6 million in the first half of 2000.
Of this increase, approximately $1.3 million was related to the full-period
depreciation effect of the development and expansion of our information
technology infrastructure.  We also experienced increases related to the
consolidation of our New York metropolitan area offices and the full year effect
of staffing and salary increases in our central service groups, such as
publishing operations, finance and legal administration.

                                       25
<PAGE>

Amortization

  Amortization expense increased $3.7 million to $25.9 million in the first half
of 2001 from $22.2 million in the first half of 2000 primarily due to increased
amortization of intangible assets related to the DLJ Acquisition in October
2000.

Interest Expense

  Net interest expense increased $3.7 million or 15.1% to $28.2 million in the
first half of 2001from $24.5 million in the first half of 2000 due to the
additional indebtedness necessary to fund the DLJ Acquisition.  In February
2001, we replaced our existing $150.0 million, 9.25% senior subordinated notes
with $160.0 million, 12.00% senior subordinated notes.

Income Taxes

  Provision for income taxes decreased $2.7 million to $4.0 million in the first
half of 2001 from $6.7 million in the first half of 2000.  This decrease was
primarily due to a decrease in taxable earnings related to increased interest
expense and other expenses as more fully described above, partially offset by an
increase in non-deductible amortization resulting from the DLJ Acquisition.

EBITDA

  EBITDA decreased $2.3 million or 4.0% to $54.1 million in the first half of
2001 from $56.4 million in the first half of 2000.  The decrease was primarily
due to a general economic downturn in our publishing segment as more fully
discussed above.  Event timing shifts did not significantly impact our year-to-
date results.


Liquidity and Capital Resources

  As of June 30, 2001, we had total indebtedness of $552.0 million and
approximately $58 million of borrowings available under our credit facility,
subject to customary conditions.

  Credit facility. The term loan facility under the credit facility consists of
a $100.0 million amortizing term loan A maturing April 11, 2006 and a $315.0
million amortizing term loan B maturing October 11, 2008. The credit facility
also includes an $80.0 million revolving credit facility. The revolving credit
facility will terminate six and one-half years after the closing date. The
credit facility may be increased by up to $50.0 million at our request, with the
consent of the lenders or other financial institutions providing the increase.
In February, 2001, we repaid $10.8 million of term loan A and $34.2 million of
term loan B at the closing of our 12.00% senior subordinated notes.

  Borrowings under the credit facility generally bear interest based on a margin
over, at our option, the base rate or the reserve-adjusted London-interbank
offered rate, or LIBOR. The applicable margin, until approximately six months
after the closing date, is 3.00% over LIBOR and 1.75% over the base rate for
borrowings under the revolving credit facility and for term loan A, and 3.50%
over LIBOR and 2.25% over the base rate for term loan B. Thereafter, the
applicable margin for revolving credit loans and term loan A will vary based
upon our ratio of consolidated debt to EBITDA, as defined in the credit
facility, and the applicable margin for term loan B will remain 3.50% over LIBOR
and 2.25% over the base rate. Our obligations under the credit facility are
guaranteed by Advanstar Holdings, Corp, our ultimate parent company and all our
existing and future domestic subsidiaries and are secured by substantially all
of the assets of our company and the subsidiary guarantors, including a pledge
of the capital stock of all our existing and future domestic subsidiaries, a
pledge of no more than 65% of the voting stock of any foreign subsidiary
directly owned by our company or any domestic subsidiary, a pledge of all
intercompany indebtedness in favor of Advanstar, Inc, our company and our
domestic subsidiaries, a pledge of our company's and Advanstar IH, Inc.'s
capital stock by our parent company and a pledge of our parent company's capital
stock by Advanstar Holdings, Corp. The credit facility contains customary
covenants,  including covenants that limit our ability to incur debt, pay
dividends and make investments, and customary events of default.

                                       26
<PAGE>

  Notes. The 12.00% senior subordinated notes (Notes) mature in 2011 and are
guaranteed by each of our existing and future domestic restricted subsidiaries.
Interest on the notes is payable semi-annually in cash. The notes contain
customary covenants and events of default, including covenants that limit our
ability to incur debt, pay dividends and make investments.

  Parent company notes. As part of the financing for the DLJ Acquisition, our
parent, Advanstar, Inc. issued senior discount notes due October 2011 with a
principal amount at maturity of $103.2 million. Concurrently with the closing of
the offering of the Notes, Advanstar, Inc. sold additional senior discount notes
due October 2011 with an additional aggregate principal amount at maturity of
$68.6 million. These notes will not require cash interest payments until 2006
and contain customary covenants and events of default, including covenants that
limit the ability of Advanstar, Inc. and its subsidiaries, including the
Company, to incur debt, pay dividends and make investments. Neither we nor any
of our subsidiaries guaranteed the notes.  However, Advanstar, Inc. is a holding
company and its ability to pay interest on these notes will be dependent upon
the receipt of dividends from its subsidiaries, including our company.

  Capital expenditures
  Capital expenditures in the first half of 2001 were approximately $5.0 million
and we anticipate that we will spend approximately $10.0 million on capital
expenditures in  2001, primarily for expenditures related to our desktop
computers and management information systems. Based on current estimates,
management believes that the amount of capital expenditures permitted to be made
under the credit facility will be adequate to grow our business according to our
business strategy and to maintain the properties and business of our continuing
operations.

  Acquisitions and Investments
  We have provided funding to Advanstar.com, our affiliate and a subsidiary of
Advanstar, Inc., to support its operations. We provided funding of approximately
$12.5 million in the first half of 2001 and anticipate that we will provide an
aggregate of $5.0 million of additional funding in 2001. Our debt instruments
limit the total amount we can invest in Advanstar.com, but, based on current
estimates, we anticipate that we will be able to make these investments within
those limitations.

  Our business strategy includes the consummation of strategic acquisitions. In
connection with any future acquisitions, we may require additional funding,
which may be provided in the form of additional debt or equity financing or a
combination thereof. There can be no assurance that any additional financing
will be available to us on acceptable terms or in a manner that complies with
the restrictive covenants in our debt instruments. Consistent with our strategy
since 1996, we continue to pursue potential acquisitions of complementary
businesses.

  Source of funds
  We generally operate with negative working capital, excluding cash and current
maturities of long-term debt, due to the impact of deferred revenue from trade
shows, which is billed and collected as deposits up to one year in advance of
the respective trade show. Consequently, our existing operations are expected to
maintain very low or negative working capital balances, excluding cash and
current maturities of long-term debt. We anticipate that our operating cash
flow, together with borrowings under the credit facility, will be sufficient to
meet our anticipated future operating expenses, capital expenditures and debt
service obligations as they become due. However, our ability to make scheduled
payments of principal, to pay interest on or to refinance our indebtedness and
to satisfy our other debt obligations will depend upon our future operating
performance, which will be affected by general economic, financial, competitive,
legislative, regulatory, business and other factors beyond our control.

  From time to time we will continue to explore additional financing methods and
other means to lower our cost of capital, which could include stock issuance or
debt financing and the application of the proceeds therefrom to the repayment of
bank debt or other indebtedness.

                                       27
<PAGE>

  Historically, our financing requirements have been funded primarily through
cash generated by operating activities and borrowings under our revolving credit
facility.  From time to time we have also raised additional funds through sales
of common stock, high yield offerings and term borrowings under our credit
facility for purposes of completing strategic acquisitions.

  Cash flows from operating activities. Net cash provided by operations
decreased $7.5 million, or 41.7%, to $10.5 million in the first half of 2001
from $18.0 million in the comparable period of 2000. The decrease was primarily
due to the decrease in operating results more fully described above, an increase
in working capital items, partially offset by a net reduction in cash interest
expense during the period.

  Cash flows used in investing activities. Net cash used in investing activities
increased $11.0 million for the first half of 2001 to $26.7 million, from $15.7
million in 2000.  This increase was principally due to an increase in our
funding of Advanstar.com during 2001, partially offset by a decrease in capital
expenditures.

  Cash flows from financing activities. Net cash provided by financing
activities increased $14.8 million in the first half of  2001 to $12.8 million,
from a use of cash of $2.0 million in the comparable period of 2000. This
increase was principally due to the effect of refinancing the Notes, as more
fully discussed above, and additional borrowings under our operating line of
credit.

Item 3.  Qualitative and Quantitative Disclosure about Market Risk

  We are exposed to various market risks, which is the potential loss arising
from adverse changes in market rates and prices, such as foreign currency
exchange and interest rates. We do not enter into derivatives or other financial
instruments for trading or speculative purposes.  We enter into financial
instruments to manage and reduce the impact of changes in interest rates and
foreign currency exchange rates.

Interest.  We rely significantly on variable rate and fixed rate debt in our
capital structure.  At June 30, 2001, we had fixed rate debt of $160.0 million
and variable rate debt of $392.0 million.  The pre-tax earnings and cash flows
impact for the next year resulting from a 100 basis point increase in interest
rates on variable rate debt would be a reduction of pre-tax earnings of $3.9
million, holding other variables constant and excluding the impact of our
interest rate protection agreements. Under the credit facility, we are required
to enter into interest rate protection agreements that have the effect of
causing at least half of the outstanding term loan borrowings and senior
subordinated notes to be fixed-rate borrowings. We have entered into agreements
to cap the interest rate on $250.5 million of borrowings under our credit
facility, which would have the effect of reducing the impact of interest rate
increases on our earnings and cash flows.

Currencies. Outside of the United States, we maintain assets and operations in
Europe, South America and Asia. The results of operations and financial position
of our foreign operations are principally measured in their respective currency
and translated into U.S. dollars. As a result, exposure to foreign currency
gains and losses exists. The reported income of these subsidiaries will be
higher or lower depending on a weakening or strengthening of the U.S. dollar
against the respective foreign currency.  Our subsidiaries and affiliates also
purchase and sell products and services in various currencies. As a result, we
may be exposed to cost increases relative to the local currencies in the markets
in which we sell.

A portion of our assets are based in our foreign locations and are translated
into U.S. dollars at foreign currency exchange rates in effect as of the end of
each period, with the effect of such translation reflected in other
comprehensive income. Accordingly, our consolidated stockholder's equity will
fluctuate depending upon the weakening or strengthening of the U.S. dollar
against the respective foreign currency.

                                       28
<PAGE>

Our strategy for management of currency risk relies primarily upon conducting
our operations in a country's respective currency and may, from time to time,
involve currency derivatives, primarily forward exchange contracts, to reduce
our exposure to currency fluctuations. As of June 30, 2001 there were open
foreign exchange derivative contracts with a notional amount totaling $6.7
million.  The potential loss in fair value resulting from a hypothetical 10%
adverse change in quoted foreign currency exchange rates amounts to
approximately $0.7 million. Actual results may differ.



PART II     Other Information


Item 4.     Submissions of Matters to a Vote of Security Holders.
            None

Item 6.     Exhibits and Reports filed on Form 8-K

Item 6(a).  Exhibits

Item 6(b).  Reports on Form 8-K

            Advanstar filed no reports on Form 8-K during the quarter ended June
            30, 2001.


SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                  Advanstar  Communications Inc.


                                    By:   /s/   David W. Montgomery

Date: August 14, 2001
                                                David W. Montgomery
                                           Vice President - Finance and
                                            Chief Financial Officer
                                            (Authorized Officer and
                                          Principal Financial Officer)

                                       29
<PAGE>

                         Advanstar Communications Inc.
                                 Exhibit Index

Exhibit No.

10.1               Employment Agreement, dated June 20,2001 between Advanstar,
                   Inc. and Joseph Loggia.


                                       30