U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

   Quarterly Report Section 13 or 15(d) of the Securities Exchange Act of 1934

                      For the quarter ended March 31, 2003

                          Commission File No. 000-26213

                             ARC COMMUNICATIONS INC.

        (Exact name of small business issuer as specified in its charter)




        A New Jersey Corporation                                 22-3201557
(State or other jurisdiction of incorporation                (I.R.S. Employer
          or organization)                                   Identification No.)

                              788 Shrewsbury Avenue
                         Tinton Falls, New Jersey 07724
                    (Address of principal executive offices)


                    Issuer's telephone number: (732) 219-1766

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  Exchange  Act of 1934  during the  preceding  12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes [ X ] No [ ]

The number of shares outstanding of the Issuer's common stock as of May 19, 2003
was 14,984,459.



<PAGE>


ARC COMMUNICATIONS INC.



INDEX

PART I.  FINANCIAL INFORMATION

         Item 1. Financial Statements (Unaudited)

         a) Consolidated Balance Sheets as of March 31, 2003.................  3

         b) Consolidated Statements of Operations for the
             Three Months Ended March 31, 2003 and 2002 .....................  4

         c) Consolidated Statements of Cash Flows for the
             Three Months Ended March 31, 2003 and 2002 .....................  5

         d) Notes to Consolidated Financial Statements ...................6 to 7


         Item 2. Management's Discussion and
                 Analysis or Plan of Operations ..........................8 to 9

        Item 3. Controls and Procedures......................................

PART II.  OTHER INFORMATION

        Item 6.  Exhibits and Reports on Form 8-K

Signature..................................................................10





<PAGE>
                    ARC COMMUNICATIONS, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                    UNAUDITED

                                     ASSETS
<TABLE>
<CAPTION>
                                                                               March 31,
                                                                                  2003
                                                                              -----------
CURRENT ASSETS
<S>                                                                           <C>
     Cash and Cash Equivalents                                                $    14,000
     Accounts Receivable-Net                                                      189,000
     Assets of discontinued operations                                             10,000
     Prepaid Expenses                                                               2,000


                                                                              -----------
         Total Current Assets                                                     215,000
                                                                              -----------


PROPERTY AND EQUIPMENT-NET                                                        126,000

OTHER ASSETS                                                                       15,000
                                                                              -----------

TOTAL ASSETS                                                                  $   356,000
                                                                              ===========


                             LIABILITIES AND CAPITAL DEFICIENCY

CURRENT LIABILITIES
     Note Payable                                                             $   286,000
     Due to officers/stockholders                                                  73,000
     Accounts Payable and Accrued Expenses                                        366,000
     Liabilities of discontinued operations                                        89,000
                                                                              -----------
         Total Current Liabilities                                                814,000
                                                                              -----------

COMMITMENTS AND CONTINGENCIES

     Preferred Stock, Stated Value $.20; 5,000,000 Shares Authorized;
         720,000 Shares Issued in 2003
         Respectively                                                             144,000
     Common Stock, $.001 Par Value, Authorized 45,000,000 Shares, Issued
         and Outstanding 14,984,459 in 2003                                        15,000
     Additional Paid in Capital                                                 1,428,000
     Accumulated Deficit                                                       (2,045,000)
                                                                              -----------
TOTAL CAPITAL DEFICIENCY                                                         (458,000)
                                                                              -----------

TOTAL LIABILITIES AND CAPITAL DEFICIENCY                                      $   356,000
                                                                              ===========
</TABLE>

<PAGE>
                             ARC COMMUNICATIONS, INC
                             STATEMENT OF OPERATIONS

                                    UNAUDITED
<TABLE>
<CAPTION>

                                                       3 Months Ended     3 Months Ended
                                                          March 31,          March 31,
                                                            2003               2002

<S>                                                     <C>                <C>
NET SALES                                               $    218,000       $    357,000

COSTS AND EXPENSES
           Operating Costs                                    43,000             26,000
           Selling, General and Administrative               171,000            302,000
           Depreciation and Amortization                      16,000             24,000
                                                        ------------       ------------
                    Total Costs and Expenses                 230,000            352,000
                                                        ------------       ------------

OTHER INCOME (EXPENSES)
           Interest Income                                         0              1,000
           Interest Expense                                   (5,000)             6,000
                                                        ------------       ------------
                    Total Other Expense                       (5,000)             7,000
                                                        ------------       ------------


NET INCOME(LOSS)FROM CONTINUING OPERATIONS              $    (17,000)      $     12,000

NET INCOME(LOSS)FROM DISCONTINUED OPERATIONS                   5,000            (19,000)
                                                        ------------       ------------

NET LOSS                                                $    (12,000)      $     (7,000)
                                                        ============       ============

BASIC AND DILUTED (LOSS) INC PER COMMON SHARE DATA
Continuing Operations                                   $      (0.00)      $       0.00
Net Loss                                                $       0.00       $       0.00

Weighted Average Number of Shares Outstanding             14,984,459         14,770,622
</TABLE>



See Notes to Consolidated Financial Statements.









<PAGE>




                            ARC COMMUNICATIONS, INC.

                            STATEMENTS OF CASH FLOWS

                                    UNAUDITED

<TABLE>
<CAPTION>
                                                                   March 31,       March 31,
                                                                      2003           2002
                                                                   ---------       ---------
CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                                <C>             <C>
     Net Loss                                                      $ (12,000)      $  (7,000)
     Adjustments to Reconcile Net Income or Loss to Net Cash
        Provided by Operating Activities:
           Depreciation and Amortization                              17,000          25,000

     Increase (Decrease) in Cash from Changes in:
        Accounts Receivable                                          (61,000)        569,000
        Prepaid Expenses & Other Current Assets                       (1,000)            700
        Other Receivable                                                   0             800
        Due to Stockholders                                          (74,000)              0
        Accounts Payable and Accrued Expenses                        151,000         (77,000)
        Billings in Excess of Costs                                        0        (242,000)
                                                                   ---------       ---------

           Total Adjustments                                          32,000         276,500
                                                                   ---------       ---------

           Net Cash Provided by Operating Activities                  20,000         269,500
                                                                   ---------       ---------

                                                                                   ---------
CASH FLOWS IN INVESTING ACTIVITIES
                                                                                   ---------
     Cash included in assets held for sale                             3,000
                                                                   ---------       ---------

CASH FLOWS FROM FINANCING ACTIVITIES

     Repayment to Note Payable                                        (9,000)            500
                                                                   ---------       ---------

           Net Cash (Used In) Provided ByFinancing Activities         (9,000)            500
                                                                   ---------       ---------

NET INCREASE IN CASH                                                  14,000         270,000

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                           0          44,000
                                                                   ---------       ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                         $  14,000       $ 314,000
                                                                   =========       =========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
     Cash Paid for Interest                                            5,000           6,000
</TABLE>




<PAGE>


                    ARC COMMUNICATIONS INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                    Unaudited

                                 March 31, 2003

1. Basis of Presentation

In the opinion of the Company, the accompanying consolidated financial
statements contain all adjustments (consisting only of normal recurring
adjustments) necessary to fairly present the Company's financial position and
its results of operations and cash flows as of the dates and for the periods
indicated.

Certain information and footnote disclosures normally contained in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. These condensed consolidated financial statements should be
read in conjunction with the audited December 31, 2002 consolidated financial
statements and related notes included in the Company's year end certified
financial statements. The results of operations for the three months are not
necessarily indicative of the operating results for the full year.

2. Revenue Recognition

The Company recognizes income from sales at the date the product is shipped and
as professional services are performed. Revenue from custom software development
is recognized based on its percentage of completion.

3. Discontinued Operations

During 2002, the management of the Company committed to a plan to sell its
continuing professional education segment. The segment provides continuing
professional education to various professions with a primary focus on the
medical profession. On April 1, 2003, the Company sold the continuing
professional education segment for approximately $350,000 in cash. Additionally,
the Company signed a non-compete agreement. In connection with this agreement,
the buyer will pay $100,000 on April 1, 2004. The estimated gain on the sale
aggregates $421,000.

The loss from discontinued operations reflects the results of operations of the
discontinued segment for the three months ended March 31, 2003 and 2002. The
assets and liabilities of the subsidiary are classified separately in the
consolidated balance sheet at March 31, 2003. The assets, liabilities and income
(loss) from discontinued operations in the consolidated financial statements
consist of the following:

                                                As of March 31, 2003
                                                --------------------
Assets
Accounts Receivable - net                       $   4,000
Inventory                                           1,000
Property and equipment - net                        5,000
                                                ---------

                                                  $10,000


Liabilities
Accounts Payable and accrued expenses             $89,000
                                                ---------

<TABLE>
<CAPTION>

                                               Three Months           Three Months
                                           ended March 31, 2003   ended March 31, 2002

<S>                                             <C>                    <C>
Results of Operations
Net Sales                                       $  71,000              $ 215,000
                                                ---------              ---------

Costs and expenses
Operating Costs
Selling, general and administrative costs          65,000                233,000
Depreciation and amortization                       1,000                  1,000
                                                ---------              ---------
                                                   66,000                234,000
                                                ---------              ---------

Income (loss) from discontinued operations      $   5,000              ($ 19,000)
                                                ---------              ---------
</TABLE>




<PAGE>

Item 2. Management's Discussion and Analysis or Plan of Operations

Three Months Ended March 31, 2003 and March 31, 2002

     The Company's net sales for the three months ended March 31, 2003 and 2002
were $218,000 and $357,000, respectively, a decrease of 39 percent. The decrease
in sales is a result of web site development decreasing $111,000 (or 74%); full
interactive multi-media development increasing $25,000 (or 27%); and
Production/Print services decreasing $54,000 (or 47%).

     Revenue decline was driven by the continued slow down in the economy in the
Company's main areas of concentration which are technology and health care,
along with the increase in competition for web services which results in severe
price cutting of what we can charge for our services.

     Operating costs for the three months ended March 31, 2003 and 2002 were
$43,000 and $26,000, respectively. The increase is due to the need to utilize
outside resources more often. With the Company's continued reduction in
full-time employees, this increase is more than offset by the decrease in
general and administrative expenses.

     Selling, general and administrative expenses for the three months ended
March 31, 2003 and 2002 were $171,000 and 302,000, respectively. Selling,
general and administrative expenses decreased $131,000 (or 43%). This decrease
was primarily due to reductions in selling expenses such as commissions and
travel expenses as a result of the decline in revenues along with the continuing
slashing of overhead to get it inline with the revenue declines. Salaries were
decreased $50,000 for the period as the Company moved towards the use of
contract employees on an as needed basis instead the use of full-time employees.

     Depreciation and amortization expenses for the three months ended March 31,
2003 and 2002 were $16,000 and $24,000, respectively, a decrease of 33 percent.

     The loss from continuing operations for the three months ended March 31,
2003 amounted to $17,000 compared to income from continuing operations for the
three months ended March 31, 2002 of $12,000. The primary reason for the loss
was the decline in revenue which was partially offset by the reduction in
selling, general and administrative expenses. As a result, income (loss) per
share from continuing operations was $0.00 for the three months ended March 31,
2003 and 2002.

     As a result of the closing of the Company's educational seminar programs
which generated a substantial portion of the educational division's revenue, the
Company determined in late 2002 to sell its continuing professional education
business, ArcMesa Educators, Inc. to Belcan Corporation of Cincinnati, Ohio.
This took place on April 1, 2003. This area of the Company's business had
sustained continual losses. This sale will allow the Company to concentrate on
its core business and provide it the resources to expand into other
communications areas.

     The net loss for the three months ended March 31, 2003 amounted to $12,000
compared to a net loss of $7,000 for the three months ended March 31, 2002. The
primary reason for the loss was the decline in revenue which was partially
offset by the reduction in selling general and administrative expenses. As a
result, loss per share was $0.00 for the three months ended March 31, 2003 and
2002.

Liquidity and Capital Resources

     Cash flow provided by operations for the three months ended March 31, 2003
amounted to $20,000. The Company believes that its present client base along
with the proceeds from the sale of Arcmesa will generate sufficient revenue to
maintain an appropriate level of liquidity for the near term. If revenues
continue to decline the Company will have to seek additional financing. The
Company believes that for the near term this will not be necessary due to
significant overhead reductions that took place in February 2003.

     The Company decreased its credit usage by $9,000. This was necessitated by
its stipulation agreement with Sovereign Bank. The company also used $150,000
from the proceeds of the sale of ArcMesa to further reduce its obligation to
Sovereign Bank. Additionally, beginning May 1, 2003 the Company is required to
make monthly principal payments of $2,000.

     In their report on the audit of the Company's financial statements for the
years ended December 31, 2002 and 2001, our independent auditors included an
explanatory paragraph in their report because of the uncertainty that we could
continue our business as a going concern. In the event we are unable to raise
the anticipated capital needs through some form of financing or increase our
revenues and cash flows, there would be substantial doubt about our ability to
continue as a going concern.


<PAGE>




Item 3. Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in our Exchange Act reports is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms, and that such
information is accumulated and communicated to our management, including our
Chief Executive Officer and Chief Financial Officer, to allow timely decisions
regarding required disclosure. In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance
of achieving the desired control objectives, and management necessarily was
required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.

Within 90 days prior to the date of this report, we carried out an evaluation,
under the supervision and with the participation of our management, including
the Chief Executive Officer and the Chief Financial Officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures. Based on the foregoing, our Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures were
effective.

There have been no significant changes in our internal and disclosure controls
or in other factors that could significantly affect the internal or disclosure
controls subsequent to the date we completed our evaluation.


PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

(a)  Exhibits.

     99.1 Certification pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002

     99.2 Amendments to Forbearance and Settlement Stipulation

     99.3 Stipulation of Dismissal With Prejudice as to the Defendant Arcmesa
          Educative Inc. Only

(b)  Current reports on Form 8-K.

     (i)  On April 16, 2003, the Company filed a Current Report on Form 8-K in
          connection with the sale all of the capital stock of its wholly-owned
          subsidiary Arcmesa Educators, Inc. to Belcan Corporation



<PAGE>


                                   SIGNATURES

In accordance with requirements of the Exchange Act, the Issuer caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.





Date: May 28, 2003                                      ARC COMMUNICATIONS INC.


                                                        BY: /s/ Michael Rubel
                                                           --------------------
                                                        Michael Rubel
                                                        Chief Operating Officer




<PAGE>


                                  CERTIFICATION

I, Steven Meyer, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Arc Communications
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date: May 28, 2003

                                                         /s/ Steven H. Meyer
                                                         -----------------------
                                                         Steven H. Meyer

                                                         Chief Executive Officer



<PAGE>


                                 CERTIFICATIONS

I, Michael Rubel, Chief Operating Officer, certify that:


1. I have reviewed this quarterly report on Form 10-QSB of Arc Communications
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


Date: May 28, 2003

                           /s/ Michael Rubel
                           ------------------------------------
                           Michael Rubel
                           Chief Operating Officer (principal financial officer)



<PAGE>