For quarter ended August 31, 2003

Commission File Number 2-15966

|TAYCO DEVELOPMENTS,
      INC.                              
|------------------------------------------------------------
|(EXACT NAME OF REGISTRANT AS
      SPECIFIED IN ITS CHARTER)

|NEW YORK                                                             |  | 16-0835557                                   
|-------------------------------------------------------------------- |  | ---------------------------------------------
|(State or other Jurisdiction of
      incorporation or organization) |  | (I.R.S. Employer Identification
      Number)

|100 TAYLOR DRIVE, NORTH TONAWANDA, NEW
      YORK |  | 14120-0748
|------------------------------------------------- |  | ----------
|Address of Principal Executive
      Offices      |  | Zip
Code  

|Registrant's telephone number, including area code -
      716-694-0877
|-----------------------------------------------------------------------

Indicate by check mark whether the registrant
(1) has filed all annual, quarterly, and other reports required to be filed with
all the Commission and (2) has been subject to the filing requirements for at
least the past 90 days.

|Yes | X |  | No | 
|--- | - |  | -- | 



Indicate the number of shares outstanding, of
each of the Issuer's classes of common stock as of the close of the period
covered by this report.

|CLASS                                  |  | Outstanding at
      August 31, 2003
|-------------------------------------- |  | ------------------------------------
|Common Stock
      (5 cents par value) |  | 990,213                             







|TAYCO DEVELOPMENTS, INC.   
|---------------------------
|                           
|**Index****to Form 10-QSB**
|                           

|PART I -                         | FINANCIAL INFORMATION |                                                                                              | PAGE
|-------------------------------- | --------------------- | -------------------------------------------------------------------------------------------- | ----
|                                 |                       |                                                                                             
|                                 | Item 1.               | Financial
  Statements                                                                      
|                                 |                       |                                                                                             
|                                 |                       | Condensed
      Balance SheetsAugust 31,
      2003and May 31, 2003                          | 3   
|                                 |                       |                                                                                             
|                                 |                       | Condensed
      Statements of Income for the three months endedAugust 31, 2003 and 2002      | 4   
|                                 |                       |                                                                                             
|                                 |                       | Condensed Statements of Cash Flows for the three
      months ended August 31, 2003 and 2002 | 5   
|                                 |                       |                                                                                             
|                                 |                       | Notes to Condensed Financial Statements                                                      | 6   
|                                 |                       |                                                                                             
|                                 | Item 2.               | Management's Discussion and
      Analysis or Plan of Operation                              | 7   
|                                 | Item
      3.         | Controls and Procedures                                                                      | 9   
|                                 |                       |                                                                                             
|PART II
    -                    | OTHER INFORMATION    
|                                 | Item
      1.         | Legal Proceedings                                                                            | 10  
|                                 | Item 2.               | Changes in Securities                                                                        | 10  
|                                 | Item 3.               | Defaults Upon Senior
      Securities                                                        | 10  
|                                 | Item 4.               | Submission of Matters to a Vote
      of Security Holders                                    | 10  
|                                 | Item 5.               | Other Information                                                                            | 10  
|                                 | Item 6.               | Exhibits and Reports on Form
      8-K                                                       | 10  
|ACCOUNTANTS' REVIEW
      REPORT | 11                   
|SIGNATURES                       |                       | 12                                                                                          
|                                 |                       |                                                                                             

|TAYCO DEVELOPMENTS,
      INC.                  
|------------------------------------------------
|                                                
|**Part I - Item 1. Financial
      Statements** 
|                                                
|                                                
|                                                
|Condensed Balance Sheets                        
|                                                
|                                                
|****Assets********                              
|******Current assets:**********                 
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|************Investments in affiliates, at equity
|                                                
|************Cash value of life insurance        
|                                                
|************Patents, net                        
|                                                
|                                                
|                                                
|Liabilities and
      Stockholders' Equity      
|                                                
|Current
      liabilities                       
|                                                
|********Stockholders' Equity**:**               
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                
|                                                

See notes to condensed
financial statements.



|TAYCO DEVELOPMENTS, INC.                           
|---------------------------------------------------
|                                                   
|**Condensed Statements of Income******             
|                                                   
|For the three months ended August
    31,          
|                                                   
|Revenues:                                          
|                                                   
|                                                   
|                                                   
|                                                   
|Operating expenses:                                
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|Other income, net                                  
|                                                   
|                                                   
|                                                   
|                                                   
|****Provision for income
      taxes               
|                                                   
|                                                   
|                                                   
|****Equity in net income
      (loss) of affiliates
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|See
      notes to condensed financial statements. 
|                                                   

|                                                   
|---------------------------------------------------
|                                                   
|TAYCO DEVELOPMENTS, INC.                           
|Condensed Statements of Cash
      Flows           
|                                                   
|For the three months ended August
    31,          
|                                                   
|**Cash flows from
      operating activities:**    
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|******Cash flows from
      investing activities:**
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|                                                   
|****Cash -
      beginning                         
|                                                   
|                                                   
|                                                   
|                                                   

See notes to condensed
financial statements.**





|TAYCO DEVELOPMENTS, INC.                         
|-------------------------------------------------
|                                                 
|**Notes to Condensed Financial
      Statements**
|                                                 

|1. | The accompanying unaudited
      condensed financial statements have been prepared in accordance with
      accounting principles generally accepted in the United States of America
      for interim financial information and with the instructions to Form 10-QSB
      and Regulation S-B. Accordingly, they do not include all of the
      information and footnotes required by accounting principles generally
      accepted in the United States of America for complete financial
      statements. In the opinion of the Company, the accompanying unaudited
      condensed financial statements contain all adjustments (consisting of only
      normal recurring accruals) necessary to present fairly the financial
      position as of August 31, 2003 and May 31, 2003 and the results of
      operations and cash flows for the three months ended August 31, 2003 and
      2002. These financial statements should be read in conjunction with the
      audited financial statements and notes thereto contained in the Company's
      Annual Report to Shareholders for the year ended May 31,
    2003.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|2. | There is no provision nor
      shall there be any provisions for profit sharing, dividends, or any other
      benefits of any nature at any time for this fiscal year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|3. | To calculate the earnings
      per share for the three month periods ended August 31, 2003 and 2002, the
      net income was divided by the outstanding shares of
  990,213.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|4. | The results of operations
      for the three month period ended August 31, 2003 are not necessarily
      indicative of the results to be expected for the full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|5. | Significant Equity Investee:
      The Company owns a 24% equity investment in Taylor Devices, Inc. For the
      three months ended August 31, 2003, Taylor Devices, Inc. had sales of
      $2,989,261, gross profit of $591,213, and net loss of $201,129. For the
      three months ended August 31, 2002, Taylor Devices, Inc. had sales of
      $4,021,331, gross profit of $1,806,511, and net income of
      $362,386.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   





|TAYCO DEVELOPMENTS,
      INC.                                             
|---------------------------------------------------------------------------
|                                                                           
|**Item 2. Management's
      Discussion and Analysis or Plan of Operation**
|                                                                           

**Cautionary Statement**

The Private
Securities Litigation Reform Act of 1995 provides a "safe harbor" for
forward-looking statements. Information in this Item 2, "Management's Discussion
and Analysis or Plan of Operations," and elsewhere in this 10-QSB that does not
consist of historical facts, are "forward-looking statements." Statements
accompanied or qualified by, or containing words such as "may," "will,"
"should," "believes," "expects," "intends," "plans," "projects," "estimates,"
"predicts," "potential," "outlook," "forecast," "anticipates," "presume," and
"assume" constitute forward-looking statements, and as such, are not a guarantee
of future performance. The statements involve factors, risks and uncertainties,
the impact or occurrence of which can cause actual results to differ materially
from the expected results described in such statements. Risks and uncertainties
can include, among others, fluctuations in general business cycles and changing
economic conditions; changing product demand and industry capacity; increased
competition and pricing pressures; advances in technology that can reduce the
demand for the Company's products, as well as other factors, many or all of
which may be beyond the Company's control. Consequently, investors should not
place undue reliance on forward-looking statements as predictive of future
results. The Company disclaims any obligation to update the forward-looking
statements in this report.

A summary of
the period to period changes in the principal items included in the condensed
statements of income is shown below:

|                                                                                            | Comparisons of the three months ended
      August 31, 2003 and
      2002
|------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------
|                                                                                            | Increase (Decrease)                                                       
|                                                                                            |                                                                           
|Royalties                                                                                   |                                                                           
|Research &
      development revenue                                                        |                                                                           
|Research &
      development expense                                                        |                                                                           
|Selling,
      general and administrative expense                                           |                                                                           
|Other income,
      net                                                                     |                                                                           
|Income before provision for income taxes andequity in
      net income (loss) of affiliates |                                                                           
|$55,000                                                                                     |                                                                           
|Provision for
      income taxes                                                            |                                                                           
|Equity in net
      income (loss) of affiliates                                             |                                                                           
|Net
      income                                                                            |                                                                           



|TAYCO DEVELOPMENTS, INC.                                                             
|-------------------------------------------------------------------------------------
|                                                                                     
|**Management's Discussion****and
      Analysis or Plan of Operation****(Continued)**
|                                                                                     

The Company's results of
operations for the three months ended August 31, 2003 showed an approximate 11%
increase in net revenues over the same period in the prior year, with a decrease
in net income of approximately 75%. The increase in net revenue is attributable
to royalties received as a result of the Company's affiliate's, Taylor Devices,
Inc. ("Devices"), increased manufacturing activity of products using the
Company's patented technology. This patented technology is used in Devices'
Tension / Compression units, whose sales have increased by almost $900,000 over
the same period in the prior year. Mitigating the increase from royalties was a
decrease in research and development revenue resulting from lower levels of
billable engineering hours on projects for Devices.

Management is focused on
developing new applications for existing technology that will lead to high
volume production and increased royalty income. The primary markets targeted are
military and aerospace.

Operating expenses of the company
increased by approximately $13,000 over same period in the prior
year.

Other income of $54,000 in the
three months ended August 31, 2003 is primarily the amount of proceeds from the
life insurance policies on the Company's founder, Paul H. Taylor, in excess of
the net of the cash surrender value of the policies and loans against the
policies.

Equity in the net loss of
affiliates for the three months ended August 31, 2003 was $47,000. This compares
to income of $91,000 for the same period in the prior year.

Net income for the three months
ended August 31, 2003 was $29,000 or $0.03 per share. This is down from the
prior year's level of $114,000 or $0.12 per share. This is a result of the
aforementioned items.

In addition to working on product
development and bid projects on behalf of Devices, Tayco's engineers are working
on new military applications for the Seating Isolation System as well as
expanded aerospace applications for the Cargo Isolation Systems. Management
believes that if the U.S. defense department increases expenditures on new
development programs in 2004, royalty revenue may increase as new applications
using the Company's technology are marketed.

Receivables - other as of August
31, 2003 represents the expected proceeds from the death benefit settlement on
life insurance policies on a former officer. The cash value of officer's life
insurance of $105,000 as of May 31, 2003 comprised most of what became the
receivable as of August 31, 2003.

The remainder of the balance sheet
as of August 31, 2003 is comparable to that of the prior year-end and management
believes that it is likely to remain so throughout the fiscal year.

Management believes that the
Company's internally generated cash will be sufficient to fund ongoing
operations for the fiscal year ending May 31, 2004.

|TAYCO DEVELOPMENTS, INC.                 
|-----------------------------------------
|                                         
|**Item 3. Controls and
      Procedures**
|                                         



(a) *Evaluation of disclosure controls and
procedures*.

The
Company's principal executive officer and principal financial officer have
evaluated the Company's disclosure controls and procedures as of a date within
90 days of the filing date of this quarterly report and have concluded that as
of the evaluation date, the disclosure controls and procedures were adequate to
ensure that material information relating to the Company was made known to the
officers by others within the Company.





(b) *Changes in internal controls.*

There have
been no significant changes in the Company's internal controls or in other
factors that could significantly affect such controls subsequent to the date of
their evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

|TAYCO DEVELOPMENTS, INC.             
|-------------------------------------
|                                     
|**Part II - Other
      Information**
|                                     

|       |                                                                
|------ | ---------------------------------------------------------------
|      
|ITEM
1 | Legal
      Proceedings:                                       
|       | The Company is
      not currently engaged in any litigation.  
|       |                                                                
|ITEM 2 | Changes in
      Securities: None                              
|       |                                                                
|ITEM 3 | Defaults Upon Senior
      Securities: None                    
|       |                                                                
|ITEM 4 | Submission of Matters
      to Vote of Securities Holders: None

|       |                                        
|------ | ---------------------------------------
|ITEM 5 | Other
      Information: None          
|       |                                        
|ITEM 6 | Exhibits and Reports
      on Form 8-K:
|       |                                        
|       |                                        
|10(i)  |                                        
|31(i)  |                                        
|31(ii) |                                        
|32(i)  |                                        
|32(ii) |                                        
|       |                                        
|       |                                        



|                                    
|------------------------------------
|                                    
|**Accountants' Review
      Report**
|                                    

The
Board of Directors and Stockholders

Tayco Developments, Inc.



We have reviewed the condensed
balance sheet of Tayco Developments, Inc. as of August 31, 2003, and the related
condensed statements of income and cash flows for the three months ended August
31, 2003 and 2002. These financial statements are the responsibility of the
Company's management.

We conducted our review in
accordance with standards established by the American Institute of Certified
Public Accountants. A review of interim financial information consists
principally of applying analytical procedures to financial data and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with auditing
standards generally accepted in the United States of America, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not
aware of any material modifications that should be made to the condensed
financial statements referred to above for them to be in conformity with
accounting principles generally accepted in the United States of
America.

We have previously audited, in
accordance with auditing standards generally accepted in the United States of
America, the balance sheet as of May 31, 2003, and the related statements of
income, changes in stockholders' equity, and cash flows for the year then ended
(not presented herein); and in our report dated August 8, 2003, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed balance sheet as of May 31,
2003 is fairly stated, in all material respects, in relation to the balance
sheet from which it has been derived.

Lumsden & McCormick, LLP Buffalo, New York October 7, 2003

|TAYCO DEVELOPMENTS, INC.
|------------------------
|                        
|**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.

|TAYCO DEVELOPMENTS, INC.
|------------------------
|(Registrant)            

|By | s/Douglas P. Taylor                                                                          |  | Date: | October 13, 2003
|-- | -------------------------------------------------------------------------------------------- |  | ----- | ----------------
|   | Douglas P. Taylor President Chairman of the Board of Directors (Principal Executive Officer) |  |       |                 



AND

|By | s/Mark V. McDonough                       |  | Date: | October 13, 2003
|-- | ----------------------------------------- |  | ----- | ----------------
|   | Mark V. McDonough Chief Financial Officer |  |       |                 



************