For quarter ended December 31, 2000

Commission File Number 2-15966

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|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

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 December 31, 2000
|------------------------------- |  | --------------------------------
|Common Stock(5 cents par value) |  | 990,213                         



|PART I                     | FINANCIAL INFORMATION |                                                                                                    | PAGE
|-------------------------- | --------------------- | -------------------------------------------------------------------------------------------------- | ----
|                           |                       |                                                                                                   
|                           | Item 1.               | Financial Statements                                                                              
|                           |                       |                                                                                                   
|                           |                       | Balance Sheets, December 31, 2000 and June 30, 2000                                                | 3   
|                           |                       |                                                                                                   
|                           |                       | Statements of Income for three months and six months ended
December 31, 2000 and December 31, 1999 | 4   
|                           |                       |                                                                                                   
|                           |                       | Statement of Cash Flows for
six months ended December 31, 2000
and December 31, 1999               | 5   
|                           |                       |                                                                                                   
|                           |                       | Notes to  Condensed Financial
Statements                                                           | 6   
|                           |                       |                                                                                                   
|                           | Item 2.               | Management's Discussion and Analysis of the Financial Condition
and Results of Operations          | 7   
|                           |                       |                                                                                                   
|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 Vote of Security Holders                                                  | 10  
|                           | Item 5.               | Other Information                                                                                  | 10  
|                           | Item 6.               | Exhibits                                                                                           | 10  
|ACCOUNTANTS' REVIEW REPORT | 11                   
|SIGNATURES                 |                       | 12                                                                                                

|ASSETS                                   | ****12/31/00                                                                        | ****6/30/00                  
|---------------------------------------- | ----------------------------------------------------------------------------------- | -----------------------------
|Current                                  |                                                                                     |                              
|                                         | Cash                                                                                | $     54,896                 
|                                         | Receivables - Affiliates, Current                                                   | 270,494                      
|                                         | Prepaid Other Expenses                                                              | 7,938                        
|                                         |                                                                                     | Total Current Assets         
|                                         |                                                                                     |                              
|Investments - Affiliate, at Equity       | 2,038,988                                                                           | 1,947,885                    
|Furniture and Equipment - At Cost        | 73,389                                                                              | 73,389                       
|                                         | Less: Accumulated Depreciation                                                      | 69,542                       
|                                         | 2,042,835                                                                           | 1,952,932                    
|Other Assets                             |                                                                                     |                              
|                                         | Patent, Net                                                                         | 134,457                      
|                                         | Receivables - Affiliates, Long-term                                                 | - 0 -                        
|                                         | Cash Value - Life Insurance, Net                                                    | 75,408                       
|                                         |                                                                                     | Total Other Assets           
|                                         |                                                                                     |                              
|TOTAL ASSETS                             | $2,586,028                                                                          | $2,526,109                   
|                                         |                                                                                     |                              
|LIABILITIES AND STOCKHOLDERS' EQUITY     |                                                                                     |                              
|Current                                  |                                                                                     |                              
|                                         | Payables - Trade                                                                    | $         - 0 -              
|                                         | Payables - Affiliate                                                                | - 0 -                        
|                                         | Current Portion of Long Term Debt                                                   | - 0 -                        
|                                         | Accrued Income Tax                                                                  | (26,384)                     
|                                         | Accrued Expenses                                                                    | 12,061                       
|                                         |                                                                                     | Total Current Liabilities    
|                                         |                                                                                     |                              
|Non Current                              |                                                                                     |                              
|                                         | Long Term Debt                                                                      | - 0 -                        
|                                         | Deferred Income Tax                                                                 | 1,800                        
|                                         |                                                                                     | Total Non Current Liabilities
|                                         |                                                                                     |                              
|STOCKHOLDERS' EQUITY                     |                                                                                     |                              
|                                         | Common Stock, par value $.05 per share, 1,000,000 shares
authorized, 990,213 issued | 49,696                       
|                                         | Paid - In Capital                                                                   | 670,605                      
|                                         | Retained Earnings                                                                   | 1,883,879                    
|                                         | 2,604,180                                                                           | 2,477,221                    
|                                         |                                                                                     |                              
|                                         | Less: Cost of Treasury Stock 3,709 Shares at Cost                                   | 5,629                        
|                                         |                                                                                     | Total Stockholders' Equity   
|                                         |                                                                                     |                              
|TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $2,586,028                                                                          | $2,526,109                   

See notes to condensed financial statements.

|                                                                                    | Six MonthsEnded December 31 | Three Months Ended December 31
|----------------------------------------------------------------------------------- | --------------------------- | ------------------------------
|                                                                                    |                             |                               
|                                                                                    | 2000                        | 1999                          
|NET SALES                                                                           |                             |                               
|Royalties                                                                           | $     54,348                | $     117,939                 
|Research & Development                                                              | 167,100                     | 145,120                       
|                                                                                    | Total Revenues              | 221,448                       
|                                                                                    |                             |                               
|EXPENSES                                                                            |                             |                               
|Research & Development                                                              | 81,023                      | 81,410                        
|Selling, General   Administrative                                                   | 81,189                      | 76,277                        
|Amortization & Depreciation                                                         | 8,400                       | 8,400                         
|                                                                                    | Total Expenses              | 170,612                       
|                                                                                    |                             |                               
|Operating Income                                                                    | 50,836                      | 96,972                        
|                                                                                    |                             |                               
|OTHER INCOME/(EXPENSE)                                                              | (580)                       | (631)                         
|Income Before Provision for Income Taxes and
    Equity in Net Income of Affiliates | 50,256                      | 96,341                        
|Provisions for Income Taxes                                                         | 14,400                      | 39,600                        
|                                                                                    |                             |                               
|Net Income before Equity in Net Income o
f
Affiliates                               | 35,856                      | 56,741                        
|                                                                                    |                             |                               
|Equity in Net Income of Affiliates                                                  | 91,103                      | 64,400                        
|                                                                                    |                             |                               
|NET INCOME                                                                          | $  126,959                  | $   121,141                   
|                                                                                    |                             |                               
|NET INCOME PER SHARE                                                                | $        .128               | $         .122                

See notes to condensed financial statements.

|                                     | Six Months EndedDecember 31                                                     
|------------------------------------ | --------------------------------------------------------------------------------
|                                     |                                                                                 
|                                     | 2000                                                                            
|Cash Flows From Operating Activities |                                                                                 
|                                     | Net Income                                                                      
|                                     | Adjustments to reconcile Net Income to Net Cash Flows from Operating
Activities:
|                                     |                                                                                 
|                                     |                                                                                 
|                                     |                                                                                 
|                                     | Changes in:                                                                     
|                                     |                                                                                 
|                                     |                                                                                 
|                                     |                                                                                 
|                                     |                                                                                 
|                                     |                                                                                 
|                                     |                                                                                 
|                                     |                                                                                 
|                                     | Net cash from (for) operating activities                                        
|                                     |                                                                                 
|Cash Flows for Investing Activities  |                                                                                 
|                                     |                                                                                 
|                                     | Net Increase in Cash                                                            
|                                     |                                                                                 
|Cash Balance, Beginning of Period    | $     31,381                                                                    
|                                     |                                                                                 
|Cash Balance, End of Period          | $     54,896                                                                    

See notes to condensed financial statements.

|1. | The accompanying unaudited condensed financial statements have been prepared in accordance with
generally accepted accounting principles 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 generally accepted accounting principles for complete financial statements. In
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, results of operations, and cash flows as of December 31, 2000 and December 31, 1999 and
the results of operations for the three and six months then ended.  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 June 30, 2000.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | There is no provision nor shall there be any provision 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 and six month periods ended December 31, 2000
and 1999, the profit was divided by the outstanding shares of 990,213, which is net of the Treasury
Shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|4. | The results of operations for the three and six month periods ended December 31, 2000 are not
necessarily indicative of the results to be expected for the full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|5. | Significant Equity Investee: The Company owns a 25% equity investment in Taylor Devices, Inc.
For the 7 months ended 12/31/00, Taylor Devices, Inc. had sales of $6,399,812, gross profit of
$2,556,226 and net income of $337,330.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements.
Certain matters discussed in this section and elsewhere in this report, which are not historical facts, are
forward-looking statements.  Words such as "expects," "intends," "believes," "anticipates," "estimates,"
"assumes," and analogous expressions are intended to identify forward-looking statements.  As such, these
statements involve risks and uncertainties including, but not limited to, economic conditions, product demand
and industry capacity, competition, pricing pressures, the need for the Company to keep pace with customer
needs and technological developments, and other factors, many or all of which may be beyond the control of
the Company.  The following is management's discussion and analysis of certain significant factors which have
affected the Company's earnings during the periods included in the accompanying consolidated condensed
statements of income.

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

|                                           | Comparisons of Six Months Ended


12/31/00 vs. 12/31/99
|------------------------------------------ | -------------------------------------------------------
|                                           |                                                        
|                                           |                                                        
|Royalties                                  |                                                        
|Research & Development                     |                                                        
|R&D Expense                                |                                                        
|SG&A                                       |                                                        
|Amortization / Depreciation                |                                                        
|Operating Income                           |                                                        
|Other Income (Expense)                     |                                                        
|Income Before Taxes & Equity in Affiliates |                                                        
|Provision for Taxes                        |                                                        
|Equity in Affiliates                       |                                                        
|Net Income                                 |                                                        

In the first half of Fiscal Year 2001, the six months ending December 31, 2000, the Company enjoyed the
second best results (since the 1991 restructuring) as record high Research and Development revenues and
record high Equity Income offset reduced Royalty Income.

**For The Six Months Ending December 31, 2000**(all figures being compared are for the first six months
Fiscal Year 2001 versus the first six months of Fiscal Year 2000)

R&D Income for FY01 improved by 15% to $167,100 compared to $145,120 for FY00, as the Company's
technical staff continued to apply most of their efforts to two aerospace/defense projects.  Royalty Income
declined, reflecting the product mix of the Company's affiliate Taylor Devices.  Devices' shipments of defense
products have been lower in FY01 as some long-term contracts reached their conclusion.  Other expenses rose
moderately to $170,612 versus $166,087 due primarily to increased personnel costs and travel related
expenses.  Operating Income was $50,836 in FY01 compared to $96,972 in FY00, due almost entirely to the
change in Royalty Income generated.

Equity in the Net Income of the Company's two affiliates, Devices and Tayco Realty, increased by 41% to
$91,103, helping to produce the second-best six month Net Income figure in the Company's history, $126,959,
and earnings per share of $0.128.

**For the Three Months Ending December 31, 2000**(All figures being compared are for the three months
ended December 31, 2000 versus the three months ended December 31, 1999)

Financial results for the second quarter of Fiscal Year 2001 paralleled those of the six-month period discussed
above.  R&D revenues of $83,321 were a 7.1% improvement over $77,780 for FY00.  Royalty Income was
recorded at $20,485, down from $65,046 the prior year.  Operating Expenses increased to $88,067 from the
previous year's figure of $83,014 due to the aforementioned personnel and travel costs.  Equity in the Net
Income of Affiliates improved by 40.8% to $46,961 over last year's figure of $33,350.  Net Income for the
period was $58,552 and $.059 per share versus the results for FY00 of $66,847 and $.068 per share.  Overall,
the second quarter of FY01 was a strong one - the third best since the restructuring.

**For the Remainder of Fiscal Year 2001**

As noted in the text above, the Company was impacted by the completion, by its affiliate Devices, of several royalty-bearing
aerospace/defense component contracts.  At this time, Management is seeing activities that indicate
new contracts should be awarded by the government in the near future.  Although there are no guarantees
concerning the timing of the placement of these re-supply contracts or that Devices will be awarded any of the
contracts, Management believes that Devices will ultimately receive its historic share of any contracts placed
and that Royalty Income will again reflect income from these shipments.  At 12/31/00, the demand for the
Company's technical services remains extremely high as Devices continues in the development stage of two
large aerospace contracts.  Additionally, Devices has recently reported that its backlog is at a near-record level
and marketing prospects remain very positive, indicating that the Company's Royalty and Affiliate Income
should be strong for the rest of Fiscal Year 2001.

In addition to the two continuing aerospace/defense contracts, the efforts of the Company's staff are showing
progress in other areas.  A prototype set of isolators (for a ship borne radar system) is currently undergoing live-fire testing.  Successful results could lead to substantial contracts in the near future.  Two other military
projects - a fin deployment damper and a gun buffer - have met government specifications.  The Company is awaiting final procurement decisions on these items.

Based on the mid-year results and the continued high utilization of the Company's staff on Devices' projects,
both military and civilian, management anticipates that Fiscal Year 2001 will be a good year with results
consistent with those of the past few fiscal years.  At this time, Management does not foresee any need to seek
funding from external sources.

|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                                                                                                                                                                                                                                                                                              
|         | 1.                | The Annual Meeting of Shareholders was held on November 10, 2000.  The total
outstanding number of shares on the meeting record date of September 22, 2000
was 990,213.  A total of 839,879 shares were present in person or by proxy at the
meeting.  The following are the election results for the slate of directors presented
by management:
|         |                   |                                                                                                                                                                                                                                                                                                                                                  
|         |                   | Douglas P. Taylor                                                                                                                                                                                                                                                                                                                                
|         |                   | David A. Lee                                                                                                                                                                                                                                                                                                                                     
|         |                   | Joseph P. Gastel                                                                                                                                                                                                                                                                                                                                 
|         |                   | Paul L. Tuttobene                                                                                                                                                                                                                                                                                                                                
|         |                   | Janice M. Nicely                                                                                                                                                                                                                                                                                                                                 
|         |                   |                                                                                                                                                                                                                                                                                                                                                  
|         | ITEM 5            | Other Information - None                                                                                                                                                                                                                                                                                                                         
|         |                   |                                                                                                                                                                                                                                                                                                                                                  
|         | ITEM 6            | Exhibits - None                                                                                                                                                                                                                                                                                                                                  



We have reviewed the condensed balance sheet of Tayco Developments, Inc. as of December 31, 2000, and
the related condensed statements of income and cash flows for the three and six months ended December 31,
2000.  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 generally accepted auditing
standards, 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 generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted auditing standards, the balance sheet as
of June 30, 2000, and the related statements of income, retained earnings, and cash flows for the year then
ended (not presented herein); and in our report dated August 4, 2000, we expressed an unqualified opinion on
those financial statements.  In our opinion, the information set forth in the accompanying condensed balance
sheet as of June 30, 2000 is fairly stated, in all material respects, in relation to the balance sheet from which
it has been derived.  We have not reviewed or compiled the related condensed statements of income and cash
flows for the three and six months ended December 31, 1999 and, accordingly, do not express an opinion or
any other form of assurance on them.

Lumsden & McCormick, LLPBuffalo, New YorkJanuary 24, 2001

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 | February 14, 2001
|-- | ----------------------------------------------------------------------------------------- |  | ---- | -----------------
|   | Douglas P. TaylorChairman of the Board of DirectorsPresident(Principal Executive Officer) |  |      |                  

|AND | 
|--- | 

|By | /s/Kenneth G. Bernstein                      |  | Date | February 14, 2001
|-- | -------------------------------------------- |  | ---- | -----------------
|   | Kenneth G. BernsteinChief Accounting Officer |  |      |