|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
|-----------------------------------------------------------------

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

|CLASS                             |  | Outstanding at March 31, 2000
|--------------------------------- |  | -----------------------------
|Common Stock

(5 cents par value) |  | 990,213                      

|PART I                     | FINANCIAL INFORMATION |                                                                                               | PAGE
|-------------------------- | --------------------- | --------------------------------------------------------------------------------------------- | ----
|                           | Item 1.               | Financial Statements                                                                         
|                           |                       |                                                                                              
|                           |                       | Balance Sheets, March 31, 2000 and June 30,
1999                                              | 3   
|                           |                       |                                                                                              
|                           |                       | Statements of Income for three months and
nine months ended March 31, 2000 and March
31, 1999 | 4   
|                           |                       |                                                                                              
|                           |                       | Statement of Cash Flows for nine months
ended March 31, 2000 and March 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                                                                             | 11  
|                           | Item 2.               | Changes in Securities                                                                         | 11  
|                           | Item 3.               | Defaults Upon Senior Securities                                                               | 11  
|                           | Item 4.               | Submission of Matters to Vote of Security
Holders                                             | 11  
|                           | Item 5.               | Other Information                                                                             | 11  
|                           | Item 6.               | Exhibits                                                                                      | 11  
|ACCOUNTANTS' REVIEW REPORT | 12                   
|SIGNATURES                 |                       | 13                                                                                           

|**ASSETS**                                                                           | **03/31/00** | **6/30/99**
|------------------------------------------------------------------------------------ | ------------ | -----------
|Current                                                                              |              |            
|Cash                                                                                 | $   29,479   | $  40,884  
|Receivables - Affiliates, Current                                                    | 328,293      | 176,440    
|Prepaid Other Expenses                                                               | 9,247        | 5,810      
|Total Current Assets                                                                 | $  367,019   | $ 223,134  
|                                                                                     |              |            
|Investments - Affiliate, at Equity                                                   | 1,834,660    | 1,721,828  
|Furniture and Equipment - At Cost                                                    | 73,389       | 73,389     
|Less:  Accumulated Depreciation                                                      | 68,373       | 65,674     
|                                                                                     | 1,839,676    | 1,729,543  
|                                                                                     |              |            
|Other Assets                                                                         |              |            
|Patent, Net                                                                          | 134,473      | 126,503    
|Receivables - Affiliates, Long-term                                                  | - 0 -        | - 0 -      
|Cash Value - Life Insurance, Net                                                     | 66,098       | 66,098     
|Total Other Assets                                                                   | 200,571      | 192,601    
|TOTAL ASSETS                                                                         | $2,407,266   | $2,136,278 
|                                                                                     |              |            
|**LIABILITIES AND STOCKHOLDERS' EQUITY**                                             |              |            
|Current                                                                              |              |            
|Payables - Trade                                                                     | - 0 -        | - 0 -      
|Payables - Affiliate                                                                 | - 0 -        | - 0 -      
|Current Portion of Long Term Debt                                                    | - 0 -        | 14,411     
|Accrued Income Tax                                                                   | 30,402       | 22,896     
|Accrued Expenses                                                                     | 48,257       | 6,768      
|Total Current Liabilities                                                            | $   78,659   | $   44,075 
|                                                                                     |              |            
|Long Term Debt                                                                       | - 0 -        | - 0 -      
|Deferred Income Tax                                                                  | 2,400        | 2,400      
|                                                                                     |              |            
|Stockholders' Equity                                                                 |              |            
|Common Stock, par value $.05 per
share, 1,000,000 shares authorized,
 990,213 issued | $   49,696   | $   49,696 
|Paid - In Capital                                                                    | 670,605      | 670,605    
|Retained Earnings                                                                    | 1,611,535    | 1,375,131  
|                                                                                     | $2,331,836   | $2,095,432 
|                                                                                     |              |            
|Less: Cost of Treasury Stock 3,709 Shares
at Cost                                    | 5,629        | 5,629      
|Total Stockholders' Equity                                                           | $2,326,207   | $2,089,803 
|TOTAL LIABILITIES & STOCKHOLDERS'

EQUITY                                            | $2,407,266   | $2,136,278 

|                                                                                | NINE MONTHSENDED MARCH 31 | THREE MONTHS
ENDED MARCH 31
|------------------------------------------------------------------------------- | ------------------------- | ---------------------------
|                                                                                | 2000                      | 1999                       
|**NET SALES**                                                                   |                           |                            
|Royalties                                                                       | $184,065                  | $ 128,507                  
|Research & Development                                                          | 242,636                   | 179,005                    
|Total Revenues                                                                  | $426,701                  | $307,512                   
|                                                                                |                           |                            
|**EXPENSES**                                                                    |                           |                            
|Research & Development                                                          | $118,933                  | $ 106,376                  
|Selling, General
Administrative                                                 | 116,719                   | 101,390                    
|Amortization - Patents                                                          | 12,600                    | 11,700                     
|Total Expenses                                                                  | $248,252                  | $219,466                   
|                                                                                |                           |                            
|Operating Income                                                                | $178,449                  | $88,046                    
|                                                                                |                           |                            
|**OTHER INCOME/(EXPENSE)**                                                      | (277)                     | 2,471                      
|Income Before Provision
for Income Taxes and
Equity in Net Income of
Affiliates | 178,172                   | 90,517                     
|Provisions for Income
Taxes                                                     | 63,600                    | 27,000                     
|Net Income before
Equity in Net Income of
Affiliates                            | 114,572                   | 63,517                     
|Equity in Net Income of
Affiliates                                              | 121,832                   | 106,915                    
|                                                                                |                           |                            
|NET INCOME                                                                      | $236,404                  | $170,432                   
|                                                                                |                           |                            
|NET INCOME PER SHARE                                                            | $   .239                  | $   .172                   

|                                                                                    | NINE MONTHS ENDEDMARCH 31
|----------------------------------------------------------------------------------- | -------------------------
|                                                                                    | 2000                     
|**CASH FLOWS FROM OPERATING ACTIVITIES**                                            |                          
|Net Income                                                                          | $236,404                 
|Adjustments to reconcile Net Income to Net

 Cash provided by Operating Activities: |                          
|Amortization - Patents                                                              | 12,600                   
|Equity in Net Income of Affiliate                                                   | (121,832)                
|                                                                                    |                          
|Changes in:                                                                         |                          
|Receivables - Affiliates                                                            | (151,853)                
|Prepaid Expenses                                                                    | ( 3,437)                 
|Payables - Trade                                                                    | - 0 -                    
|Payables - Affiliates                                                               | - 0 -                    
|Accrued Income Taxes                                                                | 7,506                    
|Accrued Expenses                                                                    | 41,489                   
|Amounts due to Stockholders                                                         | (14,411)                 
|Net property, Plant & Equipment                                                     | 2,699                    
|Net Cash Provided by Operating Activities                                           | 9,165                    
|                                                                                    |                          
|**CASH FLOWS FROM INVESTING ACTIVITIES**                                            |                          
|Acquisition of Patents                                                              | (20,570)                 
|Net Increase in Cash                                                                | (11,405)                 
|Cash Balance, Beginning of Period                                                   | 40,884                   
|Cash Balance, End of Period                                                         | $29,479                  

|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 March 31, 2000 and March 31,
1999 and the results of operations for the three months and
nine 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, 1999.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|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 and nine
month periods ended March 31, 2000 and March 31, 1999, the
profit was divided by the outstanding shares of 990,213.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|4. | The results of operations for the three and nine month periods
ended March 31, 2000, are not necessarily indicative of the
results to be expected for the full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

|   |                                                                                                                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5. | Significant Equity Investee: The Company owns a 23% equity
investment in Taylor Devices, Inc.  For the 10 months ended
3/31/00, Taylor Devices, Inc. had sales of $9,552,311, gross
profit of $3,563,813, and net income of $442,501.

|                                           | **Comparisons of Nine Months Ended**

**03/31/00 vs. 03/31/99**
|------------------------------------------ | ---------------------------------------------------------------
|                                           | **Increase**                                                   
|Royalties                                  |                                                                
|Research & Development                     |                                                                
|R&D Expense                                |                                                                
|SG&A                                       |                                                                
|Amortization                               |                                                                
|Operating Income                           |                                                                
|Other Income (Expense)                     |                                                                
|Income Before Taxes & Equity in
Affiliates |                                                                
|Provision for Taxes                        |                                                                
|Equity in Affiliates                       |                                                                
|Net Income                                 |                                                                

|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    
|         |                   |                                                        
|         | ITEM 5            | Other Information - None                               
|         |                   |                                                        
|         | ITEM 6            | Exhibits - None                                        

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

|By | /s/Douglas P. Taylor                                                                            |  | Date | May 11, 2000
|-- | ----------------------------------------------------------------------------------------------- |  | ---- | ------------
|   | Douglas P. Taylor

Chairman of the Board of Directors

President

(Principal Executive Officer) |  |      |             

|By | /s/Kenneth G. Bernstein                        |  | Date | May 11, 2000
|-- | ---------------------------------------------- |  | ---- | ------------
|   | Kenneth G. Bernstein

Chief Accounting Officer |  |      |