<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                      10-Q

  |X|     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934


               For the quarterly period ended: September 30, 1999



  | |     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934


                    For the transition period from     to
                                                   ----  ----

                         Commission file number 0-16284


                            NATIONAL TECHTEAM, INC.
                            -----------------------
                         (Name of issuer in its charter)

           DELAWARE                                    38-2774613
           --------                                    ----------
  (State or other jurisdiction of           (I.R.S. Employer Identification No.)
  incorporation or organization)

                835 Mason Street, Suite 200, Dearborn, MI 48124
                -----------------------------------------------
               (Address of principal executive offices) (Zip Code)


  Registrant's telephone number, including area code: (313) 277-2277
                                                      --------------

               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.

               |X| Yes | | No

  The number of shares of the registrant's only class of common stock
  outstanding at October 31, 1999 was 13,233,796.

  THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION
  27A OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. ACTUAL RESULTS COULD
  DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS AS A RESULT OF
  CERTAIN FACTORS DESCRIBED HEREIN INCLUDING THOSE SET FORTH UNDER "FACTORS
  AFFECTING FUTURE RESULTS" UNDER "MANAGEMENT'S DISCUSSION AND ANALYSIS OF
  FINANCIAL CONDITION AND RESULTS OF OPERATIONS" AND ELSEWHERE IN, OR
  INCORPORATED BY REFERENCE INTO, THIS REPORT.

                                       1

<PAGE>   2


                             NATIONAL TECHTEAM, INC.

                                    FORM 10-Q

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                   INDEX                                                       NUMBER
<S>                                                                                                          <C>
 PART I - FINANCIAL INFORMATION
 ----------------------------------------------------------------------------------------------------------
 ITEM 1.
 ----------------------------------------------------------------------------------------------------------
 Condensed Consolidated Statements of Operations (Unaudited)                                                     3
          Three and Nine Months Ended
          September 30, 1999 and 1998
 ----------------------------------------------------------------------------------------------------------
 Condensed Consolidated Statements of Financial Position (Unaudited)                                           4 - 5
          September 30, 1999 and December 31, 1998
 ----------------------------------------------------------------------------------------------------------
 Condensed Consolidated Statements of Cash Flows (Unaudited)                                                     6
          Nine Months Ended
          September 30, 1999 and 1998
 ----------------------------------------------------------------------------------------------------------
 Notes to the Condensed Consolidated Financial Statements - September 30, 1999 (Unaudited)                     7 - 11
 ----------------------------------------------------------------------------------------------------------
 ITEM 2.
 ----------------------------------------------------------------------------------------------------------
 Management's Discussion and Analysis of Financial Condition and Results of Operations                        12 - 15
 ----------------------------------------------------------------------------------------------------------
 PART II - OTHER INFORMATION
 ----------------------------------------------------------------------------------------------------------
 ITEM 1.
 ----------------------------------------------------------------------------------------------------------
 Legal Proceedings                                                                                               16
 ----------------------------------------------------------------------------------------------------------
 ITEM 6.
 ----------------------------------------------------------------------------------------------------------
 Exhibits and Reports on Form 8-K                                                                                16
 ----------------------------------------------------------------------------------------------------------
 Signatures                                                                                                      16
 ----------------------------------------------------------------------------------------------------------
</TABLE>











                                       2

<PAGE>   3

                         PART 1 -- FINANCIAL INFORMATION


ITEM 1 -- FINANCIAL STATEMENTS

               NATIONAL TECHTEAM, INC. AND SUBSIDIARIES CONDENSED
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                                               THREE MONTHS ENDED                NINE MONTHS ENDED
                                                                  SEPTEMBER  30,                   SEPTEMBER 30,
                                                         -------------------------------  -------------------------------
                                                                              1998                            1998
                                                             1999        (AS RESTATED)        1999        (AS RESTATED)
                                                         --------------  ---------------  --------------  ---------------
                                                                      (IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                                      <C>            <C>               <C>            <C>
REVENUES

    Corporate Services
       Corporate help desk services..................    $       9,283   $        8,337   $      27,775   $       21,207
       Technical staffing............................            5,153            6,084          17,042           19,537
       Systems integration...........................            7,254            4,892          17,904           10,299
       Training programs.............................            1,194            1,676           3,975            5,297
                                                         -------------   --------------   -------------   --------------
    Total Corporate Services.........................           22,884           20,989          66,696           56,340
                                                         -------------   --------------   -------------   --------------
    OEM Call Center Services.........................            6,384            4,736          21,278           17,867
    Leasing Operations...............................            4,687            4,707          14,336           10,178
                                                         -------------   --------------   -------------   --------------

TOTAL REVENUES.......................................           33,955           30,432         102,310           84,385
COST OF SERVICES DELIVERED...........................           28,059           26,124          84,069           69,284
                                                         -------------   --------------   -------------   --------------
GROSS PROFIT.........................................            5,896            4,308          18,241           15,101
                                                         -------------   --------------   -------------   --------------
OTHER EXPENSES
    Selling, general and administrative..............            4,883            4,590          15,320           13,921
    Michigan Single Business Tax and other...........              205                7             618              529
                                                         -------------   --------------   -------------   --------------

TOTAL OTHER EXPENSES.................................            5,088            4,597          15,938           14,450
                                                         -------------   --------------   -------------   --------------
Operating income (loss)..............................              808             (289)          2,303              651
                                                         -------------   --------------   -------------   --------------

Interest income......................................              160              523             460            1,506
Interest expense.....................................              190              380             642            1,168
                                                         -------------   --------------   -------------   --------------
NET INTEREST EXPENSE (INCOME)........................               30             (143)            182             (338)
                                                         -------------   --------------   -------------   --------------

Income (loss) before income taxes....................              778             (146)          2,121              989
Income tax expense...................................              290               21             747              493
                                                         -------------   --------------   -------------   --------------
NET INCOME (LOSS)....................................    $         488   $         (167)  $       1,374   $          496
                                                         =============   ==============   =============   ==============
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE..........    $        0.04   $        (0.01)  $        0.10   $         0.03
                                                         =============   ==============   =============   ==============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
    AND COMMON SHARE EQUIVALENTS OUTSTANDING
    Basic............................................           13,207           14,223          13,293           15,135
    Net effect of dilutive stock options.............               10               74              18              138
                                                         --------------  ---------------  --------------  ---------------

    Diluted..........................................           13,217           14,307          13,311           15,273
                                                         ==============  ===============  ==============  ===============
<CAPTION>
            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
-------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>             <C>              <C>              <C>
NET INCOME (LOSS), AS SET FORTH ABOVE................    $         488   $         (167)  $       1,374    $         496

Foreign currency translation adjustments.............              103               26             (62)              25
                                                         --------------  ---------------  --------------   --------------
COMPREHENSIVE INCOME (LOSS)..........................    $         591   $         (141)  $       1,312    $         521
                                                         ==============  ===============  ==============   ==============
</TABLE>
                            See accompanying notes.


                                       3

<PAGE>   4


               NATIONAL TECHTEAM, INC. AND SUBSIDIARIES CONDENSED
                  CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                   (UNAUDITED)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                               SEPTEMBER 30,           DECEMBER 31,
                            ASSETS                                                1999                    1998
------------------------------------------------------------------------   --------------------    --------------------
                                                                                           (IN THOUSANDS)
<S>                                                                       <C>                     <C>
CURRENT ASSETS
    Cash and cash equivalents..........................................    $            12,422     $            22,696
    Securities available-for-sale......................................                  1,641
    Accounts receivable (less allowances of $450,000 at
       September 30, 1999 and $953,000 at December 31, 1998)...........                 25,772                  23,804
    Refundable income tax..............................................                    903                   3,153
    Inventories........................................................                  1,206                     811
    Prepaid expenses and other.........................................                  1,732                   1,704
    Deferred income tax................................................                    572                     438
                                                                           -------------------     -------------------
                                                                                        44,248                  52,606
                                                                           -------------------     -------------------

PROPERTY, EQUIPMENT AND PURCHASED SOFTWARE
    Office furniture and equipment.....................................                 20,259                  20,714
    Purchased software.................................................                  5,054                   4,924
    Leasehold improvements.............................................                  1,911                   2,081
    Transportation equipment...........................................                    271                     291
                                                                           -------------------     -------------------
                                                                                        27,495                  28,010
    Less-- Accumulated depreciation and amortization...................                 19,070                  15,691
                                                                           -------------------     -------------------
                                                                                         8,425                  12,319
                                                                           -------------------     -------------------

OTHER ASSETS
    Leased equipment and other investments in leases...................                 41,971                  29,766
    Intangibles (less accumulated amortization of $9,911,000 at
       September 30, 1999 and $7,663,000 at December 31, 1998).........                 10,206                  13,268
    Investment in GE Joint Venture.....................................                  1,106                     883
    Deferred income tax................................................                  1,078                   1,324
    Other..............................................................                  1,515                   1,452
                                                                           -------------------     -------------------
                                                                                        55,876                  46,693
                                                                           -------------------     -------------------
TOTAL ASSETS...........................................................    $           108,549     $           111,618
                                                                           ===================     ===================
</TABLE>

                             See accompanying notes.

                                       4

<PAGE>   5


               NATIONAL TECHTEAM, INC. AND SUBSIDIARIES CONDENSED
            CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                               SEPTEMBER 30,           DECEMBER 31,
                 LIABILITIES AND SHAREHOLDERS' EQUITY                             1999                    1998
------------------------------------------------------------------------   --------------------    --------------------
                                                                                         (IN THOUSANDS)
<S>                                                                       <C>                     <C>
CURRENT LIABILITIES
    Accounts payable...................................................    $             3,759     $             4,107
    Accrued payroll, related taxes and withholdings....................                  4,369                   4,269
    Deferred revenues and unapplied receipts...........................                    942                   2,029
    Accrued expenses and taxes.........................................                  2,410                   1,145
    Current portion of long-term debt..................................                  7,520                   8,024
    Other..............................................................                    206                     398
                                                                           -------------------     -------------------
                                                                                        19,206                  19,972
                                                                           -------------------     -------------------

LONG-TERM DEBT.........................................................                  5,568                   7,312

SHAREHOLDERS' EQUITY
    Preferred stock, par value $.01,  5,000,000 shares authorized,
       none issued
    Common stock, par value $.01, 45,000,000 shares authorized,
       Issued-- 16,711,400 and 16,703,800 shares at
       September 30, 1999 and December 31, 1998, respectively..........                    167                     167
    Additional paid-in capital.........................................                111,115                 111,414
    Retained earnings..................................................                  2,135                     761
    Accumulated other comprehensive income (loss)......................                     (6)                     56
                                                                           -------------------     -------------------
                                                                                       113,411                 112,398
    Less -- Treasury stock (3,487,967 and 3,179,226 shares
       at September 30, 1999 and December 31, 1998, respectively)......                 29,636                  28,064
                                                                           -------------------     -------------------
    Total shareholders' equity.........................................                 83,775                  84,334
                                                                           -------------------     -------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY.............................    $           108,549     $           111,618
                                                                           ===================     ===================

</TABLE>

                             See accompanying notes.









                                       5



<PAGE>   6


               NATIONAL TECHTEAM, INC. AND SUBSIDIARIES CONDENSED
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
 -------------------------------------------------------------------------------------------------------------------
                                                                                NINE MONTHS ENDED SEPTEMBER 30,
                                                                            ----------------------------------------
                                                                                  1999                  1998
                                                                            ------------------    ------------------
                                                                                        (IN THOUSANDS)
<S>                                                                        <C>                   <C>
 OPERATING ACTIVITIES
     Net income........................................................     $           1,374     $             496
     Adjustments to reconcile net income to net cash provided by
        operating activities:
           Depreciation and Amortization...............................                15,250               11,002
           Treasury stock contributed to 401(k) plan and other.........                   592                  337
           Changes in operating assets and liabilities.................                  (820)             (14,817)
                                                                            -----------------    -----------------
           Net cash provided by (used in) operating activities.........                16,396               (2,982)
                                                                            -----------------    -----------------

 INVESTING ACTIVITIES
     Purchase of leased equipment, net.................................               (21,078)              (6,354)
     Sale (purchase) of securities available-for-sale..................                (1,641)              29,000
     Investment in direct financing leases and residuals...............                   895                2,409
     Purchase of property, equipment and software, net.................                   (12)              (3,754)
     Other ............................................................                   (62)                (619)
                                                                            -----------------    -----------------
        Net cash provided by (used in) investing activities............               (21,898)              20,682
                                                                            -----------------    -----------------

 FINANCING ACTIVITIES
     Purchase of Company common stock..................................                (2,497)             (25,000)
     Payments on notes payable, net....................................                (2,247)                (257)
     Proceeds from issuance of common stock............................                    34                  384
     Other.............................................................                   (62)                 510
                                                                            -----------------    -----------------
        Net cash used in financing activities..........................                (4,772)             (24,363)
                                                                            -----------------    -----------------
        Decrease in cash and cash equivalents..........................               (10,274)              (6,663)
 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD......................                22,696               24,927
                                                                            -----------------    -----------------
 CASH AND CASH EQUIVALENTS AT END OF PERIOD............................     $          12,422    $          18,264
                                                                            =================    =================
</TABLE>

                             See accompanying notes.






                                       6




<PAGE>   7


                    NATIONAL TECHTEAM, INC. AND SUBSIDIARIES
  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - SEPTEMBER 30, 1999
                                   (UNAUDITED)

The accompanying unaudited consolidated financial statements have been prepared
by National TechTeam, Inc. ("TechTeam" or "Company") in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the nine month period ended September 30, 1999 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 1999. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company and Subsidiaries'
annual report on Form 10-K for the year ended December 31, 1998.

Certain  reclassifications  have been made to the 1998  financial  statements in
order to conform to the 1999  financial statement presentation.

NOTE A -- RESTATEMENT OF SEPTEMBER 30, 1998 STATEMENT OF OPERATIONS

As disclosed in the December 31, 1998 Form 10-K, net income for the three-month
and nine-month periods ended September 30, 1998 were restated. Net income for
the quarter ended September 30, 1998 was decreased by $1,166,000. The decrease
resulted from $875,000 of GE Joint Venture billing adjustments, increases in
cost of services of $483,000 and increases in health care costs of $410,000,
offset by income tax reductions from these changes of $602,000.

Net income for the nine-month period ended September 30, 1998 was reduced by
$1,478,000 due to the above mentioned third quarter adjustments combined with
$312,000 of 1998 second quarter adjustments. Net income for the second quarter
of 1998 decreased due to revenue reductions of $170,000 related to earnings and
billing adjustments to the GE Joint Venture and increases in health care costs
by $302,000 offset by income tax reductions from these changes of $160,000.

NOTE B -- EARNINGS PER SHARE

Earnings per share is computed using the weighted average number of common
shares and common share equivalents outstanding. Common share equivalents
consist of stock options and are calculated using the treasury stock method.

NOTE C -- REVENUES FROM MAJOR CLIENTS

Revenues from clients which represented ten percent or more of total revenue are
as follows:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                             THREE MONTHS ENDED SEPTEMBER 30,
                                      --------------------------------------------------------------------------------
                                                      1999                                     1998
                                      --------------------------------------- ----------------------------------------

                                                                      (IN THOUSANDS
                                      ---------------------------------------------------------------------------------
<S>                                  <C>                   <C>                 <C>                  <C>
                                           AMOUNT          PERCENT OF TOTAL          AMOUNT          PERCENT OF TOTAL
                                      -----------------    -----------------    -----------------    -----------------
DaimlerChrysler.....................  $          6,287                 18.5%    $          7,847                 25.8%
Ford Motor Company..................             6,264                 18.5%               5,033                 16.5%
GE TechTeam, L.P....................             6,255                 18.4%               5,611                 18.4%
Wayne County, Michigan..............             4,044                 11.9%               2,138                  7.0%
</TABLE>



                                       7



<PAGE>   8


                    NATIONAL TECHTEAM, INC. AND SUBSIDIARIES
  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - SEPTEMBER 30, 1999
                                   (UNAUDITED)

NOTE C -- REVENUES FROM MAJOR CLIENTS (continued)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                              NINE MONTHS ENDED SEPTEMBER 30,
                                      --------------------------------------------------------------------------------
                                                       1999                                        1998
                                      ----------------------------------------  --------------------------------------
                                                                      (IN THOUSANDS)
                                      --------------------------------------------------------------------------------
                                           AMOUNT          PERCENT OF TOTAL          AMOUNT          PERCENT OF TOTAL
                                      -----------------    -----------------    -----------------    -----------------
<S>                                  <C>                   <C>                 <C>                  <C>
DaimlerChrysler.....................  $         21,763                 21.3%    $         18,979                 22.5%
Ford Motor Company..................            18,367                 17.9%              12,431                 14.7%
GE TechTeam, L.P....................            21,149                 20.7%              13,521                 16.0%
Wayne County, Michigan..............             8,157                  8.0%               3,402                  4.0%

</TABLE>

NOTE D -- LEGAL PROCEEDINGS
Refer to Part II, Item 1 for a description of legal proceedings.

NOTE E -- SEGMENT REPORTING

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
                                           CORPORATE SERVICES
                      -------------------------------------------------------------
                       CORPORATE                                                      OEM CALL
                       HELP DESK   TECHNICAL     SYSTEMS     TRAINING                  CENTER       LEASING
                       SERVICES    STAFFING    INTEGRATION   PROGRAMS       TOTAL     SERVICES    OPERATIONS      TOTAL
                      ------------ ---------- ------------  ---------- ------------ ------------ ------------- -----------
                                                                 (IN THOUSANDS)
--------------------------------------------------------------------------------------------------------------------------
<S>                   <C>          <C>          <C>          <C>          <C>         <C>          <C>          <C>
Three months ended
September 30, 1999
Revenues.............   $   9,283   $   5,153    $   7,254    $   1,194    $  22,884   $   6,384    $   4,687    $  33,955
Gross profit (loss)..       2,169         839        1,299          (65)       4,242         637        1,017        5,896
Depreciation and
    amortization.....         791          44           35          132        1,002          23        3,627        4,652
Expenditures for
    property, net....         406           2           (7)          31          432           0          307          739

Three months ended
September 30, 1998
Revenues.............   $   8,337   $   6,084    $   4,892    $   1,676    $  20,989   $   4,736    $   4,707    $  30,432
Gross profit (loss)..       1,460         941          996           61        3,458        (231)       1,081        4,308
Depreciation and
    amortization.....         504         236          188           64          992         132        3,044        4,168
Expenditures for
    property, net....         144         151           15           32          342           0          135          477

</TABLE>






                                       8

<PAGE>   9


                    NATIONAL TECHTEAM, INC. AND SUBSIDIARIES
  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - SEPTEMBER 30, 1999
                                   (UNAUDITED)

NOTE E -- SEGMENT REPORTING (continued)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                           CORPORATE SERVICES
                        ---------------------------------------------------------------
                          CORPORATE                                                    OEM CALL
                          HELP DESK  TECHNICAL     SYSTEMS     TRAINING                 CENTER        LEASING
                          SERVICES   STAFFING    INTEGRATION   PROGRAMS       TOTAL    SERVICES     OPERATIONS     TOTAL
                        ------------ --------- ------------- ------------- ---------- -----------   ----------   ----------
                                                                 (IN THOUSANDS)
                        ---------------------------------------------------------------------------------------------------
<S>                    <C>         <C>           <C>         <C>          <C>        <C>           <C>          <C>
Nine months ended
September 30, 1999
Revenues.............   $  27,775   $  17,042    $  17,904    $   3,975    $  66,696   $  21,278    $  14,336    $ 102,310
Gross profit.........       6,023       3,844        3,481          180       13,528       1,375        3,338       18,241
Depreciation and
    amortization.....       2,606         138          110          404        3,258          23       10,169       13,450
Expenditures for
    property, net....        (125)         27           13           90            5           0          (63)         (58)

Nine months ended
September 30, 1998
Revenues.............   $  21,207   $  19,537    $  10,299    $   5,297    $  56,340   $  17,867    $  10,178    $  84,385
Gross profit.........       4,116       4,313        1,964          966       11,359         950        2,792       15,101
Depreciation and
    amortization.....       2,259       1,147          546          292        4,244         132        6,014       10,390
Expenditures for
    property, net....       1,036         366          289          107        1,798           0          117        1,915

Segment Assets

September 30, 1999...   $  13,099   $   6,535    $   8,095    $   1,443    $  29,172   $   2,841    $  54,709    $  86,722
December 31, 1998....      16,070       6,895        6,119        2,126       31,210       8,661       41,389       81,260
</TABLE>










                                       9


<PAGE>   10


                    NATIONAL TECHTEAM, INC. AND SUBSIDIARIES
  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - SEPTEMBER 30, 1999
                                   (UNAUDITED)

NOTE E -- SEGMENT REPORTING (continued)

A reconciliation of the totals reported for the operating segments to the
applicable line item in the consolidated financial statements is as follows:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------

                                                               THREE MONTHS ENDED                  NINE MONTHS ENDED
                                                                  SEPTEMBER 30,                      SEPTEMBER 30,
                                                      --------------------------------   --------------------------------
                                                           1999               1998             1999              1998
                                                      --------------    --------------   --------------    --------------
                                                               (IN THOUSANDS)                     (IN THOUSANDS)
<S>                                                  <C>               <C>              <C>              <C>
Depreciation and amortization
    Total for reportable segments.................    $        4,652    $        4,168   $       13,450    $       10,390
    Corporate assets..............................               614               205            1,800               612
                                                      --------------    --------------   --------------    --------------
       Total depreciation and amortization........    $        5,266    $        4,373   $       15,250    $       11,002
                                                      ==============    ==============   ==============    ==============
<CAPTION>
                                                        SEPTEMBER 30,      DECEMBER 31,
                                                            1999              1998
                                                       -------------    --------------
                                                               (IN THOUSANDS)
<S>                                                  <C>              <C>
Assets
    Total assets for reportable segments..........    $       86,722    $       81,260
    Corporate assets..............................            21,827            30,358
                                                      --------------    --------------
       Total assets...............................    $      108,549    $      111,618
                                                      ==============    ==============
</TABLE>


NOTE F -- GE TECHTEAM, L.P.

During 1997, the Company formed GE TechTeam, L.P. (the "GE Joint Venture"), a
joint venture between TechTeam and a unit of General Electric Appliances
Division ("GEA"). The GE Joint Venture was formed to market and service extended
warranty contracts for the personal computer industry. The GE Joint Venture,
headquartered in Dallas, Texas, is operated by TechTeam and by GE Service
Management, an operating unit of GEA.

GE Service Management is a leading provider of extended service plans and
warranty administration for products ranging from major appliances and consumer
electronics to personal computers. GE Service Management offers extended service
plans that cover numerous manufacturers, makes, and models, and it provides
comprehensive service coverage for post-warranty products and service needs. The
GE Joint Venture provides call taking and service contract administration
services for GE Service Management. TechTeam shares in the profits, if any, (up
to an agreed upon limit) of this portion of the GE Joint Venture's business pro
rata based on its partnership interest, 49.45%. Losses, if any, are reimbursed
to the GE Joint Venture by GEA. Operations for this portion of the business were
not profitable in 1997, 1998 or 1999 to date.






                                       10

<PAGE>   11


                    NATIONAL TECHTEAM, INC. AND SUBSIDIARIES
  NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - SEPTEMBER 30, 1999
                                   (UNAUDITED)

NOTE F -- GE TECHTEAM, L.P. (continued)

The GE Joint Venture also provides call center services to original equipment
manufacturers of personal computer products. TechTeam shares in the profits and
losses of this portion of the GE Joint Venture's business pro rata based on its
partnership interest. Such earnings amounted to $101,000 for the quarter ended
September 30, 1999 and $223,000 for the nine month period ended September 30,
1999.

Summarized financial data for the GE Joint Venture follows:


<TABLE>
<CAPTION>
 -------------------------------------------------------------------------------------------------------------------------
                                                             THREE MONTHS ENDED                 NINE MONTHS ENDED
                                                                SEPTEMBER 30,                     SEPTEMBER 30,
                                                       --------------------------------   --------------------------------
 Statement of Operations
                                                           1999              1998             1999              1998
                                                       --------------    --------------   --------------    --------------
                                                               (IN THOUSANDS)                     (IN THOUSANDS)
<S>                                                   <C>               <C>              <C>               <C>
     Revenues.....................................     $       6,121     $       6,170    $      21,450     $       12,228
     Expenses.....................................            (8,114)           (7,833)         (25,813)           (17,861)
     Cost reimbursement - GE Appliances...........             2,196             1,424            4,809              5,394
                                                       -------------     -------------    -------------     --------------
     Pre-tax income (loss)........................     $         203     $        (239)   $         446     $         (239)
                                                       =============     =============    =============     ==============
</TABLE>





                                       11


<PAGE>   12


ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

Certain of the statements contained in this report that are not historical facts
are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. Our actual results may differ materially from those
included in the forward-looking statements. We caution readers not to place
undue reliance on these forward-looking statements, which reflect management's
opinions only as of the date hereof. We do not undertake an obligation to revise
or publicly release the results of any revisions to these forward-looking
statements. You should carefully review the risk factors described in other
documents the Company files from time to time with the SEC, including the Annual
Report on Form 10-K for the year ended December 31, 1998 and the Quarterly
Reports on Form 10-Q filed by the Company in fiscal 1999.

COMPANY OVERVIEW

National TechTeam, Inc. ("TechTeam" or "Company") is a leading provider of
information technology ("IT") outsourcing support services to large national and
multinational corporations, government agencies, and service organizations. The
Company offers its services through three global units: (1) Corporate Services,
which provides corporations with help desk support, technical staffing, systems
integration, and custom training; (2) OEM Call Center Services, which provides
end user customers of its clients with inbound telephone support for their
computer products; and (3) Leasing Operations, which consists primarily of
leasing computer-related hardware and integrated services to corporate
customers.


CORPORATE SERVICES

As a provider of Single Point of Contact help desk and desktop management
programs, TechTeam provides centralized delivery of IT technical support
services. TechTeam's Corporate Services consists of corporate help desk
services, technical staffing, systems integration, and training programs.

Corporate Help Desk Services

TechTeam provides help desk services to assist major companies in managing their
internal IT systems. The Company's technical staff uses its experience and
knowledge in launching and delivering corporate help desk programs to define and
execute corporate IT support solutions to meet its clients' specific needs. The
Company's help desk solutions include numerous options for call tracking,
Internet-based callback support, telecommunications systems, product knowledge
bases, statistical reporting, real-time scheduling, and forecasting.

Systems Integration

TechTeam's systems integration team performs all phases of network
implementations, from project planning and management, to full-scale network
server and workstation installations. After the implementation, the systems
integration team performs a wide range of maintenance services to the client
ranging from desk-side support to network monitoring.

Technical Staffing

TechTeam maintains a staff of trained technical personnel to provide computer
and technical support to its clients at the clients' facilities. Services most
often provided are on-site help desk, programming, consulting, and systems
implementation and maintenance. The Company's adaptive management and proactive
methodology enables its staff to work closely with its clients, understand their
computing environments, and work together to design and install technology to
meet their business needs.




                                       12


<PAGE>   13


Training Programs

Training programs include a wide array of applications within the office
automation, network, and client-server marketplace. Clients are offered a full
spectrum of delivery options including course catalogs, registration services,
computer equipment, networks, course materials, certified trainers, evaluation
options, desk-side tutorials, testing, feedback to help desks, and reporting.


OEM CALL CENTER SERVICES

TechTeam offers OEM call center services through the GE Joint Venture. TechTeam
provides the Joint Venture with technicians to answer support calls related to
extended warranty contracts for the personal computer industry. See Note F in
the notes to the consolidated financial statements for additional information on
the GE TechTeam Joint Venture.


LEASING OPERATIONS

In January 1998, TechTeam acquired TechTeam Capital Group in order to provide
lease financing to its client base. TechTeam Capital Group writes leases for
computer, telecommunications, and many forms of capital equipment ranging in
lease terms from 2 - 5 years. Project financing is also available for roll-in or
build-out periods from 6 - 12 months. Lease options include operating leases,
direct financing leases, technology refreshes, and sale/leasebacks.

RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO SEPTEMBER 30, 1998

Revenues increased 11.8% to $34.0 million from $30.4 million. The increase
resulted primarily from revenue increases in systems integration services of
$2.4 million and OEM Call Center Services of $1.6 million. Systems integration
revenues increased due to a large contract with a local government agency to
replace workstations, upgrade internal networks and provide certain year 2000
remediation services. The OEM Call Center Services revenue increase was due to
the GE Joint Venture adding a new warranty customer in the third quarter coupled
with additional need for Company technicians to staff existing business.

Gross profit increased as a percentage of sales to 17.4% from 14.1%. The
increase was primarily due to realizing better margins on existing corporate
help desk revenues through expansion of ongoing projects while containing the
related incremental costs.

Selling, General and Administrative expense decreased as a percentage of revenue
to 14.2% from 15.1%, due primarily to the Company's continuing efforts in cost
containment.

Interest income decreased to $0.2 million from $0.5 million. The decrease
resulted from having a lower average cash and cash equivalent balance during
1999. The decrease in cash is explained in the Liquidity and Capital Resources
section on the following page.





                                       13


<PAGE>   14


RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO SEPTEMBER 30, 1998

Revenues increased 21.2% to $102.3 million from $84.4 million. The increase
resulted primarily from revenue increases in corporate help desk services of
$6.6 million, systems integration services of $7.6 million, leasing operations
of $4.1 million, OEM Call Center Services of $3.4 million which were offset by
decreased revenue in technical staffing of $2.5 million. Corporate help desk
services increased due to expanding services to several existing large clients
in the Global Help Desk area along with the addition of several smaller
customers. Systems integration revenues increased due to a large contract with a
local government agency to replace workstations, upgrade internal networks and
provide certain year 2000 remediation services. The Leasing operations revenue
increase was due to the sale of certain lease assets and lease revenue rights to
a third party combined with an increase in lease volume due to the addition of
several new customers and placing additional assets with existing customers due
to growth by these customers. OEM Call Center Services increased due to the GE
TechTeam joint venture expanding warranty administration services for a major
personal computer manufacturer late in 1998 and this business has continued
through the current period. Technical staffing decreased due to the completion
of certain non-recurring projects near the end of 1998.

Gross profit remained constant at 17.9% for the nine months ended September 30,
1999 compared to the same period in 1998. Gross margins for each segment line of
business for the nine-month period ended September 30, 1999 remained consistent
with those of the same period in 1998.

Selling, General and Administrative expense decreased as a percentage of revenue
to 15.0% from 16.5%, due primarily to the Company's continuing efforts in cost
containment.

Interest income decreased to $0.5 million from $1.5 million. The decrease
resulted from having a lower average cash and cash equivalent balance during
1999. The decrease in cash is explained in the Liquidity and Capital section
below.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flow Provided from Operations

Cash flow provided from operating activities was $16.4 million for the nine
months ended September 30, 1999. Cash flow provided was primarily due to
earnings, combined with $15.3 million of non-cash depreciation expense mainly
related to the leasing operations, offset by a net decrease of $0.8 million in
operating assets and liabilities.

Cash Flow Used by Investing Activities

Cash flow used by investing activities was $22.0 million, principally to
purchase equipment to be leased to customers for the leasing operations.

Cash Flow Used in Financing Activities

Cash flow used in financing activities was $4.8 million. The Company used $2.2
million to pay down debt and $2.5 million to repurchase Company stock in
accordance with the stock repurchase program.

The Company's  working  capital  position at September 30, 1999 was $25.0
million  compared to $32.6 million at December 31, 1998.

The Company has line-of-credit agreements with Bank One and Chase Manhattan Bank
which provide for short-term borrowings of up to $25 million and $310,000,
respectively: both lines-of-credit are unsecured. Bank One borrowings are at the
prime rate and Chase Manhattan Bank borrowings are at prime plus 1.5%. There
were no borrowings under these lines at September 30, 1999.

The Company believes that cash flows from operations, together with current
short-term assets and borrowings available under the Company's lines-of-credit
will continue to be sufficient to meet its ongoing working capital needs.

                                       14


<PAGE>   15


YEAR 2000 DISCLOSURE

TechTeam has a Y2K Steering Committee reporting directly to the CEO and the
Board of Directors. The Steering Committee is charged with evaluating TechTeam's
risks, recommending solutions and implementing the solution to the various
problems that exist, and monitoring the remediation efforts. The entire
management of TechTeam is responsible to assure that the changes necessary are
made to achieve readiness for the Year 2000. TechTeam is engaged in a
comprehensive effort to meet the Year 2000 problems.

TechTeam has established four phases necessary to assure readiness: 1) inventory
- identify key business areas potentially affected by Y2K concerns; 2) analysis
- determine the impact and preparation of a plan to address the issue; 3)
remediation - making the necessary changes to bring the system into compliance;
and 4) validation - testing to ensure compliance.

TechTeam began the inventory process of its worldwide business systems in 1997
to determine their compliance. This process was conducted by a team of internal
employees in cooperation with OEM hardware and software manufacturers. In 1998,
the scope of the inventory was expanded to include facilities and
non-information technology related systems and equipment. TechTeam has
identified all internal systems having material Year 2000 issues.

Analysis of systems critical to the delivery of TechTeam's services issues have
been completed on all critical systems. All of these systems have been
remediated to vendor specifications. Where feasible the systems have been
validated.

TechTeam has replaced its non-compliant financial system at a cost of $2.3
million. TechTeam has completed the remediation of its internal call center
software, also known as the GCC. TechTeam also utilizes many office automation
products from Microsoft Corporation. Microsoft has provided patches such that
TechTeam can complete remediation of its workstations. This is true of other
vendors as well, such as Sun Microsystems, Oracle, SGI, Novell, Aspect and
Siemens. TechTeam estimates that it will have spent a total of $200,000 in 1999
to complete its Y2K project. Much of the remediation was performed with vendor
patches at little or no cost to TechTeam or under maintenance contract.
Accordingly, other than internal labor required for remediation, these efforts
resulted in minimal additional expenses. The estimated expenses may not include
all of the cost of implementing contingency plans, which are in the process of
being finalized. Further, though no claims have been made these estimates also
do not include any litigation or warranty costs related to Y2K which may
potentially occur.

In addition, since a significant amount of TechTeam services to its clients
involve service related support of technology within the desktop services area,
TechTeam is working with appropriate clients to assess all facets of support
that will be required of the Company by its clients. Any expenses incurred by
TechTeam will likely be accompanied by additional revenues from its clients.

The most likely IT "worst case scenario" would be the failure of a telephone
switch at one of TechTeam's support centers. The recovery procedure would be to
divert traffic to another center. The most likely non-IT "worst case scenario"
would be loss of operations at one of TechTeam's support centers due to
environmental or security considerations. The recovery procedure would be to
divert traffic to another center. It is worth noting that less than 1 percent of
TechTeam's weekly support center traffic normally occurs on weekends, such as
the first two days of January 2000. Significant impact to TechTeam, and it's
clients for such a failure would not occur until 08:00 EST, Monday, January 3,
2000, which gives TechTeam additional time to react on behalf of itself and it's
clients. In all other lines of business, where the service is TechTeam staff
located at the client site, or leasing, the service can continue, without
interruption, for several weeks without interface to TechTeam's IT or non-IT
systems.


                                       15


<PAGE>   16

                          PART II -- OTHER INFORMATION


ITEM 1 - LEGAL PROCEEDINGS

Between August 27, 1997 and October 24, 1997, four actions were filed against
the Company, William F. Coyro, Jr. currently the Chairman of the Board of
Directors and formerly an officer of the Company, and Lawrence A. Mills, a
former officer of the Company. These actions were consolidated into a single
action, alleging violations of Section 10 (b) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated there under, as well as claims against the
individual defendants for alleged "controlling person" liability under Section
20(a) of the Securities Exchange Act. On December 24, 1998, the Company and the
individual defendants entered into an agreement in principle to settle the
consolidated class action lawsuits for the payment of $11 million to the
plaintiffs. On August 11, 1999, U.S. District Court Judge Avern Cohn of the
Eastern District of Michigan granted final approval of the Stipulation of
Settlement formalizing the agreement in principle.


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

     10.14    Mutual Separation Agreement and General Release between National
              TechTeam, Inc. and Lawrence A. Mills dated February 12, 1999
              (Filed as Exhibit 10.14 to the registrant's Form 10-Q for the
              quarter ended March 31, 1999, SEC File 0-16284, and incorporated
              herein by reference).

     27       Financial Data Schedule

(b) Reports on Form 8-K. No reports were filed on Form 8-K during the quarter
ended September 30, 1999.


ITEMS 2, 3, 4 AND 5 ARE NOT APPLICABLE AND HAVE BEEN OMITTED





                                   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.



                                                  National TechTeam, Inc.
                                                  -----------------------
                                                        (Registrant)


    Date:     11/15/99                            By: /s/Harry A. Lewis
                                                  ---------------------
                                                      Harry A. Lewis
                                                      Chief Executive Officer
                                                      and President


    Date:     11/15/99                            By: /s/M. Anthony Tam
                                                  ---------------------
                                                      M. Anthony Tam
                                                      Vice President,
                                                      Chief Financial Officer
                                                      and Treasurer



                                       16
<PAGE>   17





                                 Exhibit Index
                                 -------------



<TABLE>
<CAPTION>
Exhibit No.                    Description
-----------                    -----------
<S>                            <C>
   27                          Financial Data Schedule
</TABLE>