<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   -----------

                                    FORM 10-Q

(MARK ONE)  QUARTERLY  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
   |X|      AND EXCHANGE ACT OF 1934
                    FOR THE PERIOD ENDING SEPTEMBER 30, 2003
                                       OR
   |_|      TRANSITION  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            AND EXCHANGE ACT OF 1934

            FOR THE TRANSITION PERIOD FROM_____________TO_____________

                         COMMISSION FILE NUMBER 0 - 1325

                               VICOM, INCORPORATED

             (Exact name of registrant as specified in its charter)

                                    MINNESOTA

         (State or other jurisdiction of incorporation or organization)

                                  41 - 1255001

                        (IRS Employer Identification No.)

              9449 SCIENCE CENTER DRIVE, NEW HOPE, MINNESOTA 55428

                    (Address of principal executive offices)

                   TELEPHONE (763) 504-3000 FAX (763) 504-3060

                            www.vicominc.net Internet

     (Registrant's telephone number, facsimile number, and Internet address)

     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  and 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 |_|

         Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act).

                              Yes |_|    No |X|

         On November 10, 2003 there were 18,910,986 shares outstanding of the
registrant's common stock, par value $.01 per share, and 248,681 outstanding
shares of the registrant's convertible preferred stock.

<PAGE>


PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

                      VICOM, INCORPORATED AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                Three Months Ended               Nine Months Ended
                                                                ------------------               -----------------
                                                         Sept 30, 2003    Sept 30, 2002   Sept 30, 2003    Sept 30, 2002
                                                         -------------    -------------   -------------    -------------
                                                          (unaudited)      (unaudited)     (unaudited)     (unaudited)

<S>                                                       <C>             <C>             <C>             <C>
REVENUES ..............................................   $  6,283,365    $  6,382,633    $ 17,843,508    $ 18,589,245
COSTS AND EXPENSES
     Cost of products and services ....................      4,493,829       4,680,582      12,718,951      13,824,510
     Selling, general and administrative ..............      2,409,227       2,256,745       7,147,965       6,753,506
     Impairment on property & equipment ...............              0         119,480               0         119,480
                                                          ------------    ------------    ------------    ------------
     Total Costs and Expenses .........................      6,903,056       7,056,807      19,866,916      20,697,496

LOSS FROM OPERATIONS ..................................       (619,691)       (674,174)     (2,023,408)     (2,108,251)
OTHER EXPENSE
     Interest expense .................................       (202,958)       (349,388)       (648,368)     (1,122,292)
    Other Income (expense) ............................         (6,513)        (93,171)        (56,777)        (48,214)
                                                          ------------    ------------    ------------    ------------
     Total Other Expense ..............................       (209,471)       (442,559)       (705,145)     (1,170,506)

MINORITY INTEREST IN JOINT VENTURE ....................         (3,460)              0          (4,853)              0

LOSS BEFORE INCOME TAXES ..............................       (832,622)     (1,116,733)     (2,733,406)     (3,278,757)

PROVISION FOR INCOME TAXES
                                                                     0               0               0               0
                                                          ------------    ------------    ------------    ------------

NET LOSS ..............................................   $    (832,622)  $ (1,116,733)   $ (2,733,406)   $ (3,278,757)
      Preferred Stock Dividends .......................        (43,301)        (39,494)       (135,353)        (90,230)
LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
                                                          $   (875,923)   $ (1,156,227)   $ (2,868,759)   $ (3,368,987)
                                                          ============    ============    ============    ============

LOSS PER SHARE - BASIC AND DILUTED ....................   $       (.05)   $       (.09)   $       (.19)   $       (.29)

WEIGHTED AVERAGE SHARES OUTSTANDING -
BASIC AND DILUTED .....................................     16,981,266      12,028,501      15,168,069      11,398,078
</TABLE>


            See notes to condensed consolidated financial statements


                                       2
<PAGE>

                      VICOM, INCORPORATED AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                         Sept 30,2003    December 31, 2002
                                                                         ------------    -----------------
                                                                          (unaudited)        (audited)

                                     ASSETS
<S>                                                                      <C>               <C>
CURRENT ASSETS
   Cash and cash equivalents .........................................   $  1,846,743      $    540,375
   Accounts receivable, net ..........................................      2,268,117         1,948,004
   Inventories, net of reserve of $387,000 and $341,000 ..............      1,875,147         1,463,658
   Other Current Assets ..............................................        277,084           226,774
                                                                         ------------      ------------

      TOTAL CURRENT ASSETS ...........................................      6,267,091         4,178,811
                                                                         ------------      ------------
PROPERTY AND EQUIPMENT, NET ..........................................      3,484,141         3,248,973
                                                                         ------------      ------------

OTHER ASSETS
   Goodwill ..........................................................      2,966,241         2,748,879
   Other .............................................................        231,291           170,653
                                                                         ------------      ------------
       TOTAL OTHER ASSETS ............................................      3,197,532         2,919,532
                                                                         ------------      ------------
TOTAL ASSETS .........................................................   $ 12,948,764      $ 10,347,316
                                                                         ============      ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Wholesale line of credit ..........................................   $  1,323,767      $  1,290,383
   Current portion of note payable - stockholder .....................         60,756                 0
   Current portion of long term debt .................................        474,215           321,589
   Current portion of capital lease obligations ......................         45,200            59,570
   Accounts payable ..................................................      1,639,757         1,735,931
   Accrued liabilities ...............................................        807,454           714,479
   Deferred service obligations and revenue ..........................        335,975           309,729
                                                                         ------------      ------------
      TOTAL CURRENT LIABILITIES ......................................      4,687,124         4,431,681

LONG TERM DEBT, NET ..................................................      2,245,535         3,114,006
NOTE PAYABLE - STOCKHOLDER, NET OF CURRENT PORTION ...................         48,784                 0
CAPITAL LEASE OBLIGATIONS, NET OF CURRENT PORTION ....................        176,461           159,344
MINORITY INTEREST ....................................................         64,853                 0
                                                                         ------------      ------------
TOTAL LIABILITIES ....................................................      7,222,757         7,705,031
                                                                         ------------      ------------
STOCKHOLDERS' EQUITY
Cumulative convertible preferred stock, no par value:
  8% Class A (27,831 shares issued and outstanding) ..................        418,252           418,252
  10% Class B (8,700  and 6,200 shares issued and outstanding) .......         74,663            62,000
  10% Class C (134,500 and 131,510 shares issued and outstanding).....      1,720,493         1,699,407
  15% Class E (77,650 and 70,000 shares issued and outstanding) ......        438,964           395,778
Common stock, no par value (18,574,405 and 13,110,477 shares issued;
  18,533,799 and 13,065,410 shares outstanding) ......................      8,330,093         4,465,832
Stock subscriptions receivable .......................................       (531,768)         (633,195)
Options and warrants .................................................     28,188,007        26,632,299
Unamortized compensation .............................................       (327,939)         (682,089)
Accumulated deficit ..................................................    (32,584,758)      (29,715,999)
                                                                         ------------      ------------

TOTAL STOCKHOLDERS' EQUITY ...........................................      5,726,007         2,642,285
                                                                         ------------      ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...........................   $ 12,948,764      $ 10,347,316
                                                                         ============      ============
</TABLE>

            See notes to condensed consolidated financial statements.



                                       3
<PAGE>

                      VICOM, INCORPORATED AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                             NINE MONTHS ENDED
                                                                                             -----------------
                                                                                            SEPT 30, (UNAUDITED)
                                                                                            --------------------
                                                                                            2003           2002
                                                                                            ----           ----
<S>                                                                                     <C>            <C>
OPERATING ACTIVITIES
   Net loss .........................................................................   $(2,733,406)   $(3,278,757)
   Adjustments to reconcile net loss to net cash flows from operating activities
      Depreciation and amortization .................................................       709,404        730,581
      Amortization of deferred compensation .........................................       340,572        408,201
      Amortization of original issue discount .......................................       285,345        768,159
      Impairment on property and equipment ..........................................             0        119,480
      Common stock issued for services ..............................................       321,920         14,700
      Loss on sales of property and equipment .......................................        76,269        118,367
      Interest receivable on stock subscription receivable ..........................        13,452              0
      Discount on preferred stock related to warrants ...............................             0        (53,041)
      Minority  interest  in joint venture ..........................................         4,853              0
      Changes in operating assets and
liabilities:
        Accounts receivable, net ....................................................      (329,189)       428,421
        Inventories, net ............................................................      (411,092)       138,640
        Other current assets ........................................................        (6,026)       (30,621)
        Other assets ................................................................       (21,531)        19,507
        Wholesale line of credit ....................................................        33,384       (506,934)
        Accounts payable and accrued liabilities ....................................      (388,208)       140,432
        Deferred service obligations and revenue ....................................        26,246       (107,997)
           Net cash flows from operating activities .................................    (2,078,007)    (1,090,862)
                                                                                        -----------    -----------
INVESTING ACTIVITIES
   Purchases of property and equipment ..............................................      (356,291)      (583,552)
   Proceeds from sale of property and equipment .....................................         6,145        965,948
   Payment for investment in joint venture ..........................................       (64,878)             0
   Collections on notes receivable ..................................................         5,806         33,572
                                                                                        -----------    -----------
           Net cash flows from investing activities .................................      (409,218)       415,968
                                                                                        -----------    -----------
FINANCING ACTIVITIES
   Proceeds from long-term debt and warrants issued with long term debt .............             0        672,001
   Payments on long term debt .......................................................      (183,936)       (96,855)
   Payments on capital lease obligations ............................................       (69,252)      (919,365)
   Proceeds from issuance of long term debt .........................................       133,726              0
   Proceeds from issuance of stock and warrants .....................................     3,654,388        840,429
   Exercise of warrants .............................................................       312,030              0
   Redemption of preferred stock ....................................................        (2,100)       (94,000)
   Preferred stock dividends ........................................................       (51,263)       (90,230)
                                                                                        -----------    -----------
           Net cash flows from financing activities .................................     3,793,593        311,980
                                                                                        -----------    -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ....................................     1,306,368       (362,914)
CASH AND CASH EQUIVALENTS
   Beginning of period ..............................................................       540,375        624,845
                                                                                        -----------    -----------
   End of period ....................................................................   $ 1,846,743    $   261,931
                                                                                        -----------    -----------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
   Cash paid for interest, net of amortization of original issue discount ...........   $   280,148    $   393,587
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES
   Stock options issued below fair market value .....................................             0            400
   Issuance of preferred stock for acquisition of assets ............................        76,500         18,590
   Warrants issued with debt ........................................................       208,447          8,529
   Conversion of preferred stock into common stock ..................................        40,000        150,000
   Conversion of  notes payable in to preferred stock ...............................             0        414,882
   Conversion of current liabilities into stock .....................................       248,623          7,255
   Conversion of notes payable into common stock ....................................       642,000              0
   Conversion of note receivable into common stock ..................................             0         34,563
   Conversion of dividend into common stock .........................................        84,090              0
   Reduction of preferred stock to note payable .....................................             0        290,000
   Stock subscription receivable for issuance of common stock .......................        40,000              0
   Stock issued for guarantee of debt ...............................................             0         14,750
   Reduction of  stock subscription receivable ......................................        26,602              0
</TABLE>

            See notes to condensed consolidated financial statements


                                       4
<PAGE>

                      VICOM, INCORPORATED AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
                           SEPTEMBER 30, 2003 and 2002

NOTE 1 - UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The  information  furnished  in  this  report  is  unaudited  and  reflects  all
adjustments which are normal recurring  adjustments and, which in the opinion of
management,  are  necessary  to fairly  present  the  operating  results for the
interim periods. The operating results for the interim periods presented are not
necessarily  indicative  of the  operating  results to be expected  for the full
fiscal year.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenues and Cost Recognition

Vicom, Inc. and subsidiaries (the Company) earns revenues from five sources:  1)
Video and computer  technology  products  which are sold but not  installed,  2)
Voice,  video and data communication  products which are sold and installed,  3)
Service  revenues  related  to  communication  products  which are sold and both
installed  and not  installed,  4) MultiBand  user charges to multiple  dwelling
units, 5) Multiband USA user charges to timeshares.

Revenues  from video and computer  technology  products,  which are sold but not
installed, are recognized when delivered and the customer has accepted the terms
and has the ability to fulfill the terms.

Customers  contract  for both the purchase  and  installation  of voice and data
networking  technology  products and certain video technologies  products on one
sales   agreement,   as   installation  of  the  product  is  essential  to  the
functionality  of the product.  Revenues and costs on the sale of products where
installation  is involved are  recognized  under the  percentage  of  completion
method. Costs are expensed as incurred.  The amount of revenue recognized is the
portion that the cost expended to date bears to the  anticipated  total contract
cost, based on current  estimates to complete.  Contract costs include all labor
and  materials  unique to or installed in the  project,  as well as  subcontract
costs.  Costs and  estimated  earnings in excess of billings are  classified  as
current  assets;  billings  in  excess  of  costs  and  estimated  earnings  are
classified as current liabilities.

Service revenues related to technology products including  consulting,  training
and support are recognized when the services are provided.  The Company,  if the
customer elects, enters into equipment maintenance  agreements for products sold
once  the  original  manufacturer's  warranty  has  expired.  Revenues  from all
equipment  maintenance  agreements are recognized on a straight-line  basis over
the terms of each contract. Costs for services are expensed as incurred.

MultiBand  user  charges  are  recognized  as revenues in the period the related
services are provided.

Warranty costs incurred on new product sales are substantially reimbursed by the
equipment suppliers.

Goodwill

Goodwill  represents  the  excess of  acquisition  costs  over the fair value of
identifiable  net assets  acquired  and was  amortized  using the  straight-line
method over ten years.  The carrying  value of goodwill is reviewed if the facts
and circumstances  suggest that it may be impaired. If the review indicates that
goodwill will not be recoverable,  as determined based on the undiscounted  cash
flows  of the  assets  acquired  over the  remaining  amortization  period,  the
Company's  carrying  value of goodwill is reduced by the estimated  shortfall of
cash flows.  The Company  performed an  independent  assessment  of the goodwill
carrying  amount  during the quarters  ended  September  30, 2003 and 2002.  The
Company did not record any  impairment  charges  related to goodwill  during the
three or nine months ended September 30, 2003 and 2002.


                                       5
<PAGE>

The  changes  in the  carrying  value  of  goodwill  for the nine  months  ended
September 30, 2003 are as follows:

Balance of goodwill as of December 31, 2002                         $  2,748,879

Goodwill recorded related to the investment into MBUSA
Joint venture (see Note 7)                                               217,362
                                                                     -----------

Balance as of September 30, 2003                                    $  2,966,241
                                                                    ============

Stock-Based Compensation

In accordance with Accounting  Principles Board (APB) Opinion No. 25 and related
interpretations, the Company uses the intrinsic value-based method for measuring
stock-based compensation cost which measures compensation cost as the excess, if
any, of the quoted market price of the Company's  common stock at the grant date
over the  amount the  employee  must pay for the stock.  The  Company's  general
policy is to grant stock options at fair value at the date of grant.

Pursuant to APB No. 25 and related  interpretations,  $100,191  and  $130,602 of
compensation   cost  has  been  recognized  in  the  accompanying   consolidated
statements of operations for the three months ended September 30, 2003 and 2002,
respectively.  For the nine months ended  September 30, 2003 and 2002,  $340,572
and $391,632 of compensation  cost has been recognized.  Had  compensation  cost
been  recognized  based  on the  fair  values  of  options  at the  grant  dates
consistent  with the provisions of Statement of Financial  Accounting  Standards
(SFAS) No. 123 "Accounting for Stock-Based Compensation", the Company's net loss
and loss  attributable  to common  stockholders  and basic and diluted  loss per
common share would have been increased to the pro forma amounts:

<TABLE>
<CAPTION>
                                                      Three Months Ended             Nine Months Ended
                                                           Sept 30                        Sept 30
                                                           -------                        -------
                                                      2003           2002          2003           2002
                                                  -----------    -----------    -----------    -----------

<S>                                               <C>            <C>            <C>            <C>
Loss attributable to common stockholders          $  (875,923)   $(1,156,227)   $(2,868,759)   $(3,368,987)
Pro forma loss attributable to common shares      $(1,013,109)   $(1,206,160)   $(3,582,520)   $(3,518,288)

Basic and diluted net loss per share:
   As reported                                    $     (0.05)   $     (0.09)   $     (0.18)   $     (0.29)
   Pro forma loss attributable to common shares   $     (0.06)   $     (0.10)   $     (0.24)   $     (0.31)

Stock-based compensation:
   As reported                                    $   100,191    $   130,602    $   340,572    $   391,632
   Proforma                                       $   137,186    $    49,933    $   713,761    $   149,301
</TABLE>

In determining the compensation cost of the options granted during the three and
nine months ended September 30, 2003 and 2002, as specified by SFAS No. 123, the
fair value of each option  grant has been  estimated  on the date of grant using
the Black-Scholes option pricing model and the weighted average assumptions used
in these calculations are summarized as follows for September 30:

<TABLE>
<CAPTION>
                                                      Three Months Ended             Nine Months Ended
                                                            Sept 30                       Sept 30
                                                            -------                       -------
                                                      2003           2002          2003           2002
                                                  -----------    -----------    -----------    -----------
<S>                                                     <C>            <C>            <C>            <C>
Risk-free interest rate                                 3.62%          4.40%          3.41%          4.40%
Expected life of options granted                     10 years       10 years       10 years       10 years
Expected volatility range                                170%           170%           170%           170%
Expected dividend yield                                    0%             0%             0%             0%
</TABLE>


                                       6
<PAGE>

Net Loss per Share

Basic net loss per common share is computed by dividing the loss attributable to
common  stockholders by the weighted average number of common shares outstanding
for the  reporting  period.  Diluted  net loss per common  share is  computed by
dividing loss  attributable  to common  stockholders  by the sum of the weighted
average number of common shares  outstanding  plus all  additional  common stock
that would have been  outstanding if potentially  dilutive common shares related
to  common  share  equivalents  (stock  options,  stock  warrants,   convertible
preferred  shares,  and issued but not  outstanding  restricted  stock) had been
issued. All options, warrants,  convertible preferred shares, and issued but not
outstanding  restricted  stock during the three months ended  September 30, 2003
and 2002 were anti-dilutive.

NOTE 3 - LIQUIDITY

The accompanying  consolidated  financial statements have been prepared assuming
the Company will continue as a going concern that  contemplates  the realization
of assets and satisfaction of liabilities in the normal course of business.  For
the nine months  ended  September  30, 2003 and 2002,  the Company  incurred net
losses of $2,733,406 and  $3,278,757,  respectively.  At September 30, 2003, the
Company had an  accumulated  deficit of  $32,584,758.  The Company's  ability to
continue  as  a  going   concern  is  dependent  on  it   ultimately   achieving
profitability  and/or raising additional  capital.  Management intends to obtain
additional  debt or equity capital to meet all of its existing cash  obligations
and fund commitments on planned  MultiBand  projects,  however,  there can be no
assurance that the sources will be available or available on terms  favorable to
the Company. Management anticipates that the impact of the actions listed below,
will generate sufficient cash flows to pay current  liabilities,  long-term debt
and capital lease obligations and fund the Company's future operations:

1.  Continued   reduction  of  operating   expenses  by   controlling   payroll,
professional fees and other general and administrative expenses.

2.  Solicit  additional  equity  investment  in the  Company  by either  issuing
preferred or common stock.

3. Continue to market MultiBand services and acquire  additional  multi-dwelling
unit customers.

4. Control capital expenditures by contracting  MultiBand services and equipment
through a landlord-owned equipment program.

NOTE 4 - RELATED PARTY

Commissions  of $5,932 and $18,781 were paid to Rangecap,  LLC for the three and
nine months,  respectively,  ended  September  30, 2003 for profits  recorded to
Multiband equipment purchased by Rangecap. David Weiss, Rangecap's principal, is
a Vicom director. There were no payments during fiscal year 2002.

NOTE 5 - STOCK WARRANTS

Stock  warrants  activity is as follows for the nine months ended  September 30,
2003:

<TABLE>
<CAPTION>
                                                                            Weighted Average
                                                    Number of Warrants       Exercise Price
                                                    ------------------      ----------------
<S>                                                     <C>                          <C>
     Warrants outstanding - December 31, 2002           4,327,396                    2.05
       Granted                                          3,056,018                    1.39
       Canceled or expired                                      0                       0
       Exercised                                         (594,381)                   1.38
                                                    ------------------      ----------------
     Warrants outstanding - SEPTEMBER 30, 2003          6,789,033                    1.82
                                                    ==================      ================

</TABLE>
The  warrants  granted  during the nine  months  ended  September  30, 2003 were
awarded  for common  stock,  preferred  stock,  for  services  rendered,  and in
connection with notes payable.


                                       7
<PAGE>

NOTE 6 - BUSINESS SEGMENTS

Following is Company  business  segment  information  for the three months ended
September 30, 2003 and 2002:

<TABLE>
<CAPTION>
                                             Vicom           CTU          MultiBand        Total
                                         ------------    ------------   ------------    ------------
<S>                                      <C>             <C>            <C>             <C>
Three months ended Sept 30, 2003
         Revenues                        $          0    $  5,864,468   $    418,897    $  6,283,365
         Income (Loss) from operations       (370,645)         72,428       (321,474)       (619,691)
         Identifiable assets                4,543,772       5,601,468      2,803,524      12,948,764
         Depreciation and amortization          9,640         100,173        149,862         259,675
         Capital expenditures                       0          41,698          6,611          48,309

Three months ended Sept 30, 2002
         Revenues                        $          0    $  6,227,683   $    154,950    $  6,382,633
         Income (Loss) from operations       (437,013)        164,881       (402,042)       (674,174)
         Identifiable assets                3,020,620       5,020,048      1,969,577      10,010,245
         Depreciation and amortization        140,871         107,966        110,101         358,938
         Capital expenditures                   2,126         195,421        130,744         328,291
</TABLE>

Following  is Company  business  segment  information  for the nine months ended
September 30, 2003 and 2002:

<TABLE>
<CAPTION>
                                             Vicom           CTU          MultiBand        Total
                                         ------------    ------------   ------------    ------------
<S>                                      <C>             <C>             <C>             <C>
Nine Months ended Sept 30, 2003
         Revenues                        $          0    $ 16,831,531    $  1,011,977    $ 17,843,508
         Income/(Loss) from operations     (1,279,925)         45,997        (789,480)     (2,023,408)
         Identifiable assets                4,543,772       5,601,468       2,803,524      12,948,764
         Depreciation and amortization         33,090         318,839         357,475         709,404
         Capital expenditures                       0         272,466          83,825         356,291

Nine Months ended Sept 30, 2002
         Revenues                        $          0    $ 18,204,795    $    384,450    $ 18,589,245
         Income/(Loss) from operations     (1,286,465)         88,638        (910,424)     (2,108,251)
         Identifiable assets                3,020,620       5,020,048       1,969,577      10,010,245
         Depreciation and amortization        414,699         340,706         383,377       1,138,782
         Capital expenditures                   2,126         279,860         301,566         583,552
</TABLE>

NOTE 7- MULTIBAND USA JOINT VENTURE

     During February 2003, the Company incorporated a new subsidiary,  Multiband
USA,  Incorporated  (MB USA).  This subsidiary was set up as part of a 50% owned
joint  venture  agreement  with PACE  Electronics,  Inc (PACE)  with the Company
having the right to elect two of the three  board of  directors.  As part of the
joint venture agreement,  the Company, at its sole option and discretion,  shall
have the right,  but not the  obligation  to convert one Vicom  common share for
every ten shares of MB USA issued to PACE.

     On April 25, 2003,  the Company,  through MB USA,  purchased  certain video
equipment assets from Suncoast  Automation,  Inc for $450,000.  The Company also
purchased related rights to video subscribers and rights of access agreements.


                                       8
<PAGE>

FORWARD-LOOKING STATEMENTS

     From time to time,  the  Company  may  publish  forward-looking  statements
relating  to  such  matters  as  anticipated  financial  performance,   business
prospects,  product pricing, management for growth, integration of acquisitions,
technological  developments,  new  products,  and similar  matters.  The Private
Securities   Litigation   Reform  Act  of  1995   provides  a  safe  harbor  for
forward-looking  statements including those made in this statement.  In order to
comply  with the terms of the Private  Securities  Litigation  Reform  Act,  the
Company notes that a variety of factors could cause the Company's actual results
and experience to differ  materially from the  anticipated  results or Company's
forward-looking statements.

     The risks and  uncertainties  that may affect the operations,  performance,
developments  and  results of the  Company's  business  include  the  following:
national  and  regional  economic  conditions;  pending  and future  legislation
affecting  IT  and  telecommunications  industries;  market  acceptance  of  the
Company's  products and  services;  the  Company's  products and  services;  the
Company's  continued ability to provide integrated  communication  solutions for
customers in a dynamic industry; and other competitive factors.

     Because  these and other  factors  could  affect  the  Company's  operating
results,  past financial  performance  should not necessarily be considered as a
reliable indicator of future performance and anticipated future period results.

                                     ITEM 2.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATION

GENERAL

     Vicom,  Incorporated (Vicom) is a Minnesota corporation formed in September
1975.  Vicom  is  the  parent  corporation  of  two  wholly-owned  subsidiaries,
Corporate Technologies, USA, Inc. (CTU), and MultiBand, Inc. (MultiBand).

     Vicom  completed an initial public offering in June 1984. In November 1992,
Vicom became a non-reporting  company under the Securities Exchange Act of 1934.
In July 2000, Vicom regained its reporting  company status.  In December,  2000,
Vicom stock began trading on the NASDAQ stock exchange under the symbol VICM.

     Vicom's website is located at: www.vicominc.net .

     Vicom recently  expanded its efforts to establish itself within the rapidly
evolving  telecommunications  and computer  industries.  Effective  December 31,
1998,  Vicom  acquired  the assets of the  Midwest  region of Enstar  Networking
Corporation (ENC), a data cabling and networking  company.  In late 1999, in the
context of a forward triangular  merger,  Vicom, to expand its range of computer
products  and  related  services,  purchased  the  stock of  Ekman,  Inc.  d/b/a
Corporate  Technologies,  and merged Ekman, Inc. into the newly formed surviving
corporation,  Corporate Technologies,  USA, Inc. (CTU). CTU provides voice, data
and video systems and services to business and government.  MultiBand,  Inc. was
incorporated in February 2000.  MultiBand,  Inc provides  voice,  data and video
services to multiple  dwelling units (MDU's).  Multiband USA, Inc. was formed in
February,  2003 in partnership with Pace Electronics,  a video  wholesaler,  and
provides the same services as Multiband, Inc.

     As of September 30, 2003, CTU was providing telephone equipment and service
to approximately 800 customers, with approximately 10,000 telephones in service.
In addition,  CTU provides computer products and services to approximately 2,100
customers.  MultiBand,  as  of  September  30,  2003,  had  approximately  5,000
customers.  Telecommunications  systems  distributed  by Vicom are  intended  to
provide users with flexible,  cost-effective alternatives as compared to systems
available from major telephone  companies,  including those formerly  comprising
the Bell System and from other interconnect telephone companies.


                                       9
<PAGE>

     CTU provides a full range voice, data and video communications  systems and
service,  system  integration,  training  and  related  communication  sales and
support  activities for commercial,  professional and  institutional  customers,
most of which are located in Minnesota and North Dakota.  CTU purchases products
and equipment from NEC America, Inc. (NEC), Cisco Systems, Inc. (Cisco),  Nortel
Networks Corp. (Nortel), Tadiran  Telecommunications,  Inc. (Tadiran), and other
manufacturers of communications and electronic products and equipment.  CTU uses
these  products  to  design  telecommunications  systems  to fit its  customers'
specific needs and demands.


                                       10
<PAGE>

SELECTED CONSOLIDATED FINANCIAL DATA

<TABLE>
<CAPTION>
                                          DOLLAR AMOUNTS AS A PERCENTAGE OF    DOLLAR AMOUNTS AS A PERCENTAGE OF
                                                      REVENUES                             REVENUES
                                                 THREE MONTHS ENDED                    NINE MONTHS ENDED
                                          Sept 30, 2003    Sept 30, 2002         Sept 30, 2003   Sept 30, 2002
                                           (unaudited)     (unaudited)            (unaudited)      (unaudited)
<S>                                          <C>              <C>                   <C>              <C>
REVENUES                                      100%             100%                  100%             100%

COST OF PRODUCTS & SERVICES                  71.5%            73.3%                 71.3%            74.4%

GROSS MARGIN                                 28.5%            26.7%                 28.7%            25.6%

SELLING, GENERAL & ADMINISTRATIVE            38.4%            35.4%                 40.0%            36.3%
IMPAIRMENT ON PROPERTY & EQUIP                  0              1.9%                    0              .06%

OPERATING LOSS                               -9.9%           -10.6%                -11.3%           -11.3%
  INTEREST EXPENSE & OTHER, NET               3.4%             6.9%                  4.0%             6.3%
LOSS BEFORE TAXES                           -13.3%           -17.5%                -15.3%           -17.6%
MINORITY INTEREST IN JOINT VENTURE            -.0%               0                   -.0%               0
 INCOME TAX                                     0                0                     0                0
NET LOSS                                    -13.3%           -17.5%                -15.3%           -17.6%
</TABLE>



The  following  table sets forth,  for the period  indicated,  the gross  margin
percentages for Corporate Technologies USA, Inc., MultiBand,  Inc. and Multiband
USA, Inc.

<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED                      NINE MONTHS ENDED
                                          SEPT 30, 2003    SEPT 30, 2002          SEPT 30, 2003   SEPT 30, 2002
<S>                                          <C>              <C>                    <C>              <C>
GROSS MARGIN PERCENTAGES:
  CORPORATE TECHNOLOGIES USA, INC.           27.4%            26.8%                  28.0%            25.6%
  MULTIBAND, INC.                            43.1%            24.0%                  41.3%            30.9%
</TABLE>

RESULTS OF OPERATIONS

Revenues

     Revenues  decreased  1.5% to $6,283,365 in the quarter ended  September 30,
2003, as compared to $6,382,633 for the quarter ended September 30, 2002.

     Revenues for (CTU)  decreased  5.8% in the third  quarter of fiscal 2003 to
$5,864,468 as compared to  $6,227,683 in the third quarter of fiscal 2002.  This
decrease in CTU's  revenues  resulted  primarily  from CTU's  desire to increase
gross margins versus maintaining top line revenues.

     Revenues  for  MultiBand,  Inc.  increased  170.3% to $418,897 in the third
quarter 2003 as compared to $154,950 in the third  quarter of fiscal 2002.  This
increase is due to continued  expansion of MultiBand including services provided
to resort locations.

     Revenues for the nine month period ended  September 30, 2003 decreased 4.0%
to $17,843,508  from  $18,589,245 for the same period in 2002. For the remainder
of fiscal  year 2003,  the  Company  anticipates  revenues  to  increase  as new
Multiband subscribers are added.


                                       11
<PAGE>

Gross Margin

     The Company's gross margin  increased 5.1% or $87,485 to $1,789,536 for the
quarter ended  September  30, 2003,  as compared to  $1,702,051  for the similar
quarter  last year.  This  increase  in gross  margin is due to an  increase  in
service sales and recurring  subscriber  revenues which have better margins than
product sales.  For the quarter ended  September 30, 2003, as a percent of total
revenues,  gross  margin was 28.5% as compared  to 26.7% for the similar  period
last year.  This  increase in gross margin  percentage  is  primarily  due to an
increase in service sales and recurring  subscriber  revenues  which have better
margins than equipment sales.

     Gross margin for  Corporate  Technologies  USA,  Inc.  decreased by 3.7% to
$1,608,975  for the quarter ended  September 30, 2003, as compared to $1,670,806
in the second quarter of fiscal 2002.

     Gross margin for MultiBand,  Inc. for the quarter ended  September 30, 2003
increased  384.8% to $180,561  as  compared  to $37,245 in the third  quarter of
fiscal 2002 reflecting on the increase of revenue being billed.

     For the nine month period ended  September  30, 2003, as a percent of total
revenues,  gross  margin was 28.7% as  compared  to 25.6% for the same period in
2002.  For the second half of fiscal year 2003,  gross  margin  percentages  are
expected to remain higher than gross margin percentages in the prior year as the
Company  continues  to shift its  emphasis to consumer  oriented  services  from
business related equipment sales.

Selling, General and Administrative Expenses

     Selling,  general and administrative  expenses increased 6.8% to $2,409,227
in the quarter  ended  September  30, 2003,  compared to $2,256,745 in the prior
year quarter. Selling, general and administrative expenses were, as a percentage
of revenues,  38.3% for the quarter  ended  September 30, 2003 and 35.4% for the
similar  period a year ago.  This increase is primarily  attributable  to higher
payroll and occupancy costs and the start-up of Multiband USA.

     For the nine month period ended September 30, 2003 these expenses increased
5.4% to $7,147,965 as compared to $6,753,506 for the nine months ended September
30, 2002.  As a  percentage  of revenues,  selling,  general and  administrative
expenses are 40.1% for the period ended  September 30, 2003 as compared to 36.3%
for the same period 2002.

Interest Expense

     Interest  expense was $202,958 for the quarter  ended  September  30, 2003,
versus $349,388 for the similar period a year ago,  reflecting a decrease in the
Company's  long  term debt  that  resulted  in a  considerable  decrease  in the
amortization  of original  discount  expense.  Amortization  of  original  issue
discount was $85,365 and $296,402 for the three months ended  September 30, 2003
and 2002.

     Interest  expense was $648,368 for the nine months ended September 30, 2003
and  $1,122,292  for the  same  period  last  year.  For the nine  months  ended
September 30, 2003  amortization of original  discount was $285,345 and $768,159
in same period as last year.

Net Loss

     In the third  quarter of fiscal  2003,  the Company  incurred a net loss of
$832,622  compared to a net loss of $1,116,733  for the third fiscal  quarter of
2002.  A decline in  operating  losses for the third  quarter of 2003 versus the
similar period a year ago was primarily due to the above  mentioned  increase in
gross margin and reduction in non-cash amortization expense.


                                       12
<PAGE>

     For the nine months ended  September 30, 2003,  the Company  recorded a net
loss of  $2,733,406,  as  compared  to  $3,278,757  for the  nine  months  ended
September 30, 2002.

Liquidity and Capital Resources

     Available  working capital at September 30, 2003 increased over the similar
period last year  primarily  due to an increase in cash from equity  sales.  The
equity sales primarily involved sales of common stock to institutional investors
with certain warrant rights attached.

     Inventories increased over last year's prior period inventories  reflecting
an increase in the  Wholesale  Line of Credit . Net  borrowings  under notes and
installment  obligations  payable  decreased for the period ended  September 30,
2003  compared to the prior year's  period in that payments on debt exceeded new
borrowings.

     Management of Vicom believes  that, for the near future,  cash generated by
sales of stock, and existing credit  facilities,  in aggregate,  are adequate to
meet  the  anticipated  liquidity  and  capital  resource  requirements  of  its
Corporate  Technologies  USA, Inc.  business for the next twelve months provided
Company operating losses continue to decrease.  Significant  continuation of the
Company's MultiBand, Inc.'s build-out is highly dependent on securing additional
financing for future projects.  Management  believes that while future build-out
financing  is  available,  there is no  guarantee  that said  financing  will be
obtained.

Capital Expenditures

     The Company used $356,291 for capital  expenditures  during the nine months
ended  September  30, 2003,  as compared to $583,552 in the similar  period last
year. Capital expenditures  consisted of equipment acquired for internal use and
for completion of a Multiband build out.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Impairment of Long-Lived Assets
-------------------------------
The  Company's  long-lived  assets  include  property,  equipment  and leasehold
improvements.  The  estimated  fair value of these  assets is  dependent  on the
Company's future  performance.  In assessing for potential  impairment for these
assets,  the Company  considers future  performance.  If these forecasts are not
met,  the  Company  may have to  record  an  impairment  charge  not  previously
recognized,  which may be material.  During the nine months ended  September 30,
2003 and 2002,  the  Company  did not record any  impairment  losses  related to
long-lived assets.

Impairment of Goodwill
----------------------
We  periodically   evaluate   acquired   businesses  for  potential   impairment
indicators.  Our judgements regarding the existence of impairment indicators are
based on legal factors,  market  conditions and  operational  performance of our
acquired  businesses.  Future events could cause us to conclude that  impairment
indicators  exist and that goodwill  associated with our acquired  businesses is
impaired.  Any resulting impairment loss could have a material adverse impact on
our financial  condition  and results of  operations.  The Company  performed an
independent assessment of the goodwill carrying amount during the quarters ended
September 30, 2003 and 2002. During the nine months ended September 30, 2003 and
2002, the Company did not record any impairment losses related to goodwill.

Inventories
-----------
We value our inventory at the lower of the actual cost or the current  estimated
market value of the inventory.  We regularly review inventory quantities on hand
and record a provision for excess and obsolete  inventory.  Rapid  technological
change,  frequent new product  development,  and rapid product obsolescence that
could result in an increase in the amount of obsolete  inventory  quantities  on
hand characterize our industry.


                                       13
<PAGE>

ITEM 3. QUANTITIVE AND QUALITIVE DISCLOSURE ABOUT MARKET RISK

     Vicom is not  subject to any  material  interest  rate risk as any  current
lending agreements are at a fixed rate of interest.

ITEM 4. CONTROLS AND PROCEDURES

     The Company has carried out an evaluation,  with the  participation  of its
chief  executive/financial  officer, of the effectiveness,  as of the end of the
most recent fiscal quarter, of the Company's  disclosure controls and procedures
(as defined in Rules  13a-15(e) and 15d-15(e) of the Securities  Exchange Act of
1934), and the Company's  internal control over financial  reporting (as defined
in Rules 13a-15(f) and 13a-15(f) of the Securities  Exchange Act of 1934). Based
upon that evaluation, the chief executive/chief financial officer concluded that
the Company's  disclosure controls and procedures are effective in alerting him,
on a timely  basis,  to material


                                       14
<PAGE>

information  required to be disclosed in the Company's  periodic  reports to the
Securities and Exchange Commission and that there has been no significant change
in the Company's  internal  control over financial  reporting that occurred over
the most  recently  ended fiscal  quarter,  that has matrially  affected,  or is
reasonably  likely to materially  affect,  the Company's  internal  control over
financial reporting.

PART II. OTHER INFORMATION

ITEM 2. CHANGES IN SECURITIES

During the third quarter of fiscal year 2003, the Company  raised  approximately
$2,210,850 in gross proceeds of sales of common stock via private  placements to
accredited  investors and investor exercises of warrants.  The majority of these
sales occurred during the period of September 23 through September 30, 2003. The
proceeds from the aforementioned  were used primarily for working capital and to
retire debt.

ITEM 4.  ANNUAL SHAREHOLDERS' MEETING

The  Company's  annual  shareholder  meeting  was held on July 10,  2003.  Eight
Directors  were  elected  for a term of one year  with the  following  votes per
Director as indicated below.

                         Name                   Votes in Favor
                         ----                   --------------
                    Jonathan Dodge                7,677,782
                    Donald Miller                 7,677,782
                    Marvin Frieman                7,676,616
                    James Mandel                  7,677,782
                    Dave Ekman                    7,677,782
                    Steve Bell                    7,676,949
                    Frank Bennett                 7,677,782
                    David Weiss                   7,677,782

In addition,  at the meeting,  Virchow Krause and Company,  LLP were ratified as
the  Company's  Independent  Auditors  for Fiscal  Year 2002.  The votes were as
follows: For 7,672,034, Against, 0, Abstain, 5,748.

ITEM 5. LEGAL PROCEEDINGS

     As of September  30, 2003,  Vicom was not engaged in any legal  proceedings
whose anticipated results would have a material adverse impact on the Company.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

          (a)  Exhibits

                   31.1
                   31.2
                   32

          (b)  Reports on Form 8-K.

               The  Company  filed a report on Form 8-K on  September  24,  2003
               related to recent equity activity.


                                       15
<PAGE>

                                   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.

                                VICOM, INC.
                                Registrant
Date: November 14, 2003         By:

                                                      /s/ James L. Mandel
                                                    ------------------------
                                                    Chief Executive Officer

Date: November 14, 2003         By:

                                                       /s/ Steven M. Bell
                                                    ------------------------
                                                    Chief Financial Officer
                                                   (Principal Financial and
                                                      Accounting Officer)


                                       16