UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549

                                    FORM 10-Q

               QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the Quarterly Period Ended September 30, 2000

                          Commission File Number I-4383

                         ESPEY MFG. & ELECTRONICS CORP.
               --------------------------------------------------
               (Exact name of registrant as specified in charter)

        NEW YORK                                14-1387171
------------------------          --------------------------------------
(State of Incorporation)          (I.R.S. Employer's Identification No.)

 233 Ballston  Avenue,  Saratoga  Springs,  New York             12866
--------------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code          518-584-4100
                                                     ---------------------------

Number of shares  outstanding  of issuer's  class of common  stock  $.33-1/3 par
value as of November 6, 2000: 1,033,631.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

                  YES    X                NO
                     ---------              ----------


<PAGE>


                         ESPEY MFG. & ELECTRONICS CORP.


                                    I N D E X



PART I   FINANCIAL INFORMATION                                      PAGE

         Item 1   Financial Statements:

                  Consolidated Balance Sheets -
                  September 30, 2000 and June 30, 2000               1


                  Consolidated Statements of Income -
                  Three Months Ended September 30, 2000 and 1999     3

                  Consolidated Statements of Cash Flows -
                  Three Months Ended September 30, 2000 and 1999     4


                  Notes to Consolidated Financial Statements         5

         Item 2   Management's Discussion and Analysis of            7
                  Financial Condition and Results of
                  Operations

PART II  OTHER INFORMATION                                           9

                  SIGNATURES                                        10



<PAGE>


                         ESPEY MFG. & ELECTRONICS CORP.

                           Consolidated Balance Sheets

                      September 30, 2000 and June 30, 2000
                      ------------------------------------
                                   A S S E T S


<TABLE>
<CAPTION>
                                                        Unaudited
                                                          2000             2000
                                                       September 30      June 30
                                                       -----------     -----------

CURRENT ASSETS:
<S>                                                    <C>             <C>
  Cash and cash equivalents                            $ 2,971,887     $ 2,367,191
  Investments securities                                   679,000         650,000
                                                       -----------     -----------
          Net cash and cash equivalents and
           investment securities                         3,650,887       3,017,191
                                                       -----------     -----------

  Trade accounts receivable, net                         3,224,423       4,105,028
  Other receivables                                         10,263          46,435
                                                       -----------     -----------
          Net Receivables                                3,234,686       4,151,463
                                                       -----------     -----------

  Inventories:
     Raw materials and supplies                            823,264         822,814
     Work-in-process                                     3,363,149       3,113,708
     Costs relating to contracts in process, net of
       progress payments of $363,776 at September 30
       and $537,468 at June 30, 2000                    11,121,352      10,889,930
                                                       -----------     -----------
          Net Inventories                               15,307,765      14,826,452
                                                       -----------     -----------

  Deferred income taxes                                    289,559         299,709
  Prepaid expenses and other current assets                159,201         245,501
                                                       -----------     -----------

     Total Current Assets                               22,642,098      22,540,316
                                                       -----------     -----------

Deferred Income Taxes                                        6,516           6,516
                                                       -----------     -----------

Property, plant and equipment, net                       3,549,313       3,571,205
                                                       -----------     -----------
                           Total Assets                $26,197,927     $26,118,037
                                                       ===========     ===========
</TABLE>


See accompanying notes to the consolidated financial statements
                                                                     (Continued)

                                     - 1 -
<PAGE>


                         ESPEY MFG. & ELECTRONICS CORP.

                     Consolidated Balance Sheets, Continued

                      September 30, 2000 and June 30, 2000
                      ------------------------------------
                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                       Unaudited
                                                                          2000               2000
                                                                      September 30         June 30
                                                                      ------------       -----------
CURRENT LIABILITIES:
<S>                                                                     <C>                <C>
   Accounts Payable                                                     $  407,526         $ 541,636
   Accrued expenses:
       Salaries, wages and commissions                                     195,296           244,865
       Employees' insurance costs                                           57,318            65,194
       Vacation                                                            223,991           280,493
       ESOP payable                                                        138,615                 -
       Other                                                                 4,057             3,372
       Payroll and other taxes withheld
           and accrued                                                      57,000            69,536
       Income taxes payable                                                154,670           124,075
                                                                      ------------       -----------
                  TOTAL CURRENT LIABILITIES                              1,238,473         1,329,171

STOCKHOLDERS' EQUITY:
   Common stock, par value .33-1/3 per
   share.  Authorized 10,000,000 shares;
   issued 1,514,937 shares September 30, 2000
   and June 30, 2000. Outstanding 1,033,631
   on September 30, 2000 and June 30, 2000                                 504,979           504,979

   Accumulated  other  comprehensive  income(loss)                         (88,371)         (107,221)
   Capital in excess of par value                                       10,496,287        10,496,287
   Retained earnings                                                    23,927,171        23,775,433
                                                                      ------------       -----------
                                                                        34,840,066        34,669,478

   Less: Common stock subscribed                                        (2,234,650)       (2,234,650)

         Cost of 481,306 shares on September 30, 2000
         and June 30, 2000 of common stock in treasury                  (7,645,962)       (7,645,962)
                                                                      ------------      ------------
                  TOTAL STOCKHOLDERS' EQUITY                            24,959,454        24,788,866
                                                                      ------------      ------------
                           TOTAL LIABILITIES AND
                           STOCKHOLDERS' EQUITY                       $ 26,197,927      $ 26,118,037
                                                                      ============      ============
</TABLE>


See accompanying notes to the consolidated financial statements

                                     - 2 -

<PAGE>


                         ESPEY MFG. & ELECTRONICS CORP.

                        Consolidated Statements of Income

                 Three Months Ended September 30, 2000 and 1999
                 ----------------------------------------------


<TABLE>
<CAPTION>
                                                                      Unaudited
                                                                     Three Months
                                                          September 2000      September 1999
                                                          --------------      --------------

<S>                                                          <C>                 <C>
Net Sales                                                    $ 4,167,234         $ 3,298,980

Cost of sales                                                  3,478,973           2,884,391
                                                             -----------         -----------
                             GROSS PROFIT                        688,261             414,589

Selling, general and
administrative expenses                                          460,251             493,600
                                                             -----------         -----------
                             OPERATING INCOME (LOSS)             228,010            (79,011)
                                                             -----------         -----------
Other Income:

       Interest and dividend income                               65,190              90,666
       Other                                                      17,126              52,941
                                                             -----------         -----------
                             TOTAL OTHER INCOME                   82,316             143,607
                                                             -----------         -----------
Income before income taxes                                       310,326              64,596

Provision for income taxes                                       106,906              25,000
                                                             -----------         -----------
                             NET INCOME                      $   203,420         $    39,596
                                                             -----------         -----------
Income per Share:

Basic and diluted income per share                                 $ .20               $ .04
                                                                   =====               =====
Weighted average number of
shares outstanding
       Basic                                                   1,033,631           1,052,884
                                                               =========           =========
       Diluted                                                 1,035,966           1,052,884
                                                               =========           =========
</TABLE>


See accompanying notes to the consolidated financial statements


                                     - 3 -
<PAGE>


                         ESPEY MFG. & ELECTRONICS CORP.
                      Consolidated Statements of Cash Flows
                 Three Months Ended September 30, 2000 and 1999

<TABLE>
<CAPTION>
                                                                                Unaudited
                                                                              September 30
                                                                         2000               1999
                                                                       -----------       -----------
Cash Flows From Operating Activities:
<S>                                                                    <C>               <C>
     Net income                                                        $   203,420       $    39,596

     Adjustments  to  reconcile  net income to net
     cash  provided  by  operating activities:

     Depreciation                                                          181,094           111,751
     Gain on disposal of fixed assets                                      (14,721)                -
     Changes in assets and liabilities:
         Decrease in receivables                                           916,777         1,181,939
         Increase in inventories                                          (481,313)         (617,286)
         Decrease in prepaid expenses and
             other current assets                                           86,300           147,738
         (Decrease) increase in accounts payable                          (134,110)          555,001
         Decrease in accrued salaries,
             wages and commissions                                         (49,569)         (118,242)
         Decrease in accrued employee insurance costs                       (7,876)           (1,391)
         (Decrease) increase in other accrued expenses                         685           (28,235)
         Decrease in vacation accrual                                      (56,502)          (21,450)
         Increase in ESOP payable                                          138,615           138,352
         Decrease in payroll & other taxes
             withheld and accrued                                          (12,536)          (22,418)
         Decrease in deferred income taxes                                       -                 -
         Increase in income taxes payable                                   30,595            19,608
                                                                       -----------       -----------

                           Net cash provided by
                           operating activities                            800,859         1,384,963
                                                                       -----------       -----------
Cash Flows From Investing Activities:

     Proceeds from sale of fixed assets                                     14,750                 -
     Proceeds from maturity of investment securities                             -         2,915,161
     Additions to property, plant & equipment                             (159,231)         (260,559)
                                                                       -----------       -----------
                           Net cash (used in) provided by
                           investing activities                           (144,481)        2,654,602
                                                                       -----------       -----------
Cash Flows From Financing Activities:

     Dividends on common stock                                             (51,682)          (52,432)
     Purchase of treasury stock                                                  -          (193,223)
                                                                       -----------       -----------
                           Net cash used in
                           financing activities                            (51,682)         (245,655)
                                                                       -----------       -----------
Increase in cash and cash equivalents                                      604,696         3,793,910

Cash and cash equivalents, beginning of period                           2,367,191         2,364,335
                                                                       -----------       -----------
Cash and cash equivalents, end of period                               $ 2,971,887       $ 6,158,245
                                                                       -----------       -----------

Income Taxes Paid                                                      $         -        $        -
                                                                       ===========       ===========
</TABLE>


See accompanying notes to the consolidated financial statements


                                     - 4 -
<PAGE>

                         ESPEY MFG. & ELECTRONICS CORP.
                    Notes to Consolidated Financial Statements
                   ------------------------------------------

1.   In the  opinion  of  management  the  accompanying  unaudited  consolidated
     financial  statements  contain all  adjustments  (consisting of only normal
     recurring  adjustments)  necessary  for a fair  presentation of results for
     such  periods.  The  results  for any  interim  period are not  necessarily
     indicative of the results to be expected for the full fiscal year.  Certain
     information  and  footnote   disclosures  normally  included  in  financial
     statements  prepared  in  accordance  with  generally  accepted  accounting
     principles  have been  condensed  or omitted.  These  financial  statements
     should  be read in  conjunction  with the  Company's  most  recent  audited
     financial statements included in its 2000 Form 10-K.

2.   The basic earnings per share (EPS) is computed by dividing income available
     to common  stockholders  by the weighted  average  number of common  shares
     outstanding  for the period.  Diluted EPS is computed  giving effect to all
     dilutive  potential common shares that were outstanding  during the period.
     Dilutive  potential common shares consist of the incremental  common shares
     issuable  upon the  exercise of stock  options  for all  periods  using the
     treasury stock method.

3.   Other income consists principally of government grants related to increased
     employment,  interest on  Certificates of Deposit,  Treasury  Bills,  money
     market accounts and dividends on equity securities.

4.   For purposes of the  statements  of cash flows,  the Company  considers all
     liquid debt instruments with original maturities of three months or less to
     be cash equivalents.

5.   In fiscal 1989 the Company  established  an Employee  Stock  Ownership Plan
     (ESOP) for eligible  non-union  employees.  The ESOP used the proceeds of a
     loan from the Company to purchase  316,224  shares of the Company's  common
     stock  for   approximately   $8.4  million  and  the  Company   contributed
     approximately  $400,000 to the ESOP, which was used by the ESOP to purchase
     an additional 15,000 shares of the Company's common stock.

     The loan from the Company to the ESOP is repayable  in annual  installments
     of  $1,039,605, including  interest,  through  June  30, 2004.  Interest is
     payable at a rate of 9% per annum.  The Company's  receivable from the ESOP
     is recorded as common stock subscribed in the accompanying balance sheets.

     Each year,  the Company will make  contributions  to the ESOP which will be
     used to make  loan  interest  and  principal  payments.  With each loan and
     interest  payment,  a portion of the  common  stock  will be  allocated  to
     participating employees. As of September 30, 2000 there were 197,136 shares
     allocated to participants.

6.   Total comprehensive income consists of:

                                                 Three Months Ended
                                                    September 30,
                                                 2000          1999
                                               --------      --------

Net income                                    $ 203,420       39,596

Accumulated other comprehensive income:

Unrealized gain (loss) on
investment securities                            18,850      (33,280)
                                               --------      --------

Total comprehensive income                      222,270        6,316
                                               ========      ========


                                     - 5 -

<PAGE>

7.   Stock Options

     On  October  29,  1999,  the  Board  of  Directors  approved,   subject  to
     shareholder approval, the 2000 Stock Option Plan (the Plan). Under the Plan
     and related incentive stock option  agreements,  options will be granted to
     purchase  shares of common stock of the Company with an exercise  price not
     less than the fair value of a share of such common stock at the date of the
     grant and vest over a period not to exceed ten years as will be  determined
     by the Option Committee which will administer the Plan. Non-Qualified stock
     options will be issued in accordance with the Plan.  Shareholders  approved
     the Plan at the Annual Meeting on January 4, 2000.

     The Company applies Accounting Principles Board Opinion No. 25, "Accounting
     for Stock Issued to  Employees,"  in accounting  for the Plan. To determine
     the  necessary  pro  forma  disclosure  information  the  Company  utilizes
     Statement  of  Financial  Accounting  Standards  No.  123  "Accounting  for
     Stock-Based  Compensation".  On March 1, 2000,  11,500  stock  options were
     granted under the Plan. All options were granted at fair market value.


                                     - 6 -
<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations
--------------------------------------------------------------------------------
Results of Operations
---------------------

Net sales for the three  months  ended  September  30, 2000 were  $4,167,234  as
compared to $3,298,980 for the same period in 1999. The $868,254 increase in net
sales  for the  three-month  period is mainly  due to  increased  sales of power
supplies and radar  transmitters.  Due to successful  marketing efforts with new
and existing  customers the Company  should  continue to see increased net sales
levels as backlog orders are completed and shipped.

During the first  quarter of fiscal 2001 gross  profits as a percentage of sales
increased approximately 4% as compared with the first quarter of fiscal 2000.

Net income for the three  months ended  September  30, 2000 was $203,419 or $.20
per share  compared  to $39,596 or $.04 per share for the  corresponding  period
ended September 30, 1999.

The  increase in gross profit and net income was  primarily  due to higher sales
volume and changes in contract/product mix. Management continues to evaluate the
Company's  workforce to insure that production and overall  execution of backlog
orders and additional  anticipated  orders are successfully  performed.  Present
employment is approximately 240 people.

Selling,  general and administrative expenses were $460,251 for the three months
ended  September  30, 2000, a decrease of $33,349,  or 6.8%,  as compared to the
three months ended  September  30, 1999.  This  decrease was  primarily due to a
decrease in selling expenses.

Total other  income for the three  months  ended  September  30, 2000  decreased
$61,292, compared to the three months ended September 30, 1999. This decrease is
due to lower  interest  income and lower funds  received  related to  government
grants for increased employment.  The Company does not believe that there is any
risk  associated  with  its  investment  policy,   since  the  majority  of  its
investments are  represented by United States  Government  Treasury  Securities,
preferred equity securities and a money market account.

The Company continues to diversify its customer base and product offerings.  The
backlog at  September  30, 2000 was  approximately  $27,339,000,  as compared to
approximately $27,871,000 at September 30, 1999.

Liquidity and Capital Resources
-------------------------------

As of  September  30,  2000,  the Company had working  capital of $21.4  million
compared to $21.2  million at June 30, 2000.  The Company  meets its  short-term
financing  needs  through  cash from  operations  and when  necessary,  from its
existing cash and short term investments.

The table below presents the summary of cash flow for the periods indicated:

<TABLE>
<CAPTION>
                                                     Three Months Ended September 30,
                                                           2000           1999
                                                           ----           ----
<S>                                                     <C>             <C>
Net cash provided by operating activities               $  800,859      $1,384,963
Net cash (used in) provided by investing activities     $ (144,481)     $2,654,602
Net cash used in financing activities                   $   51,682      $  245,655
</TABLE>

Net cash provided by operating  activities  fluctuates between periods primarily
as a result of  differences  in net  income,  the  timing of the  collection  of


                                     - 7 -
<PAGE>

accounts  receivable,  purchase  of  inventory,  level of sales and  payment  of
accounts  payable.  The  decrease in net cash  provided  by (used in)  investing
activities  is due to the maturity of investment  securities  with no offsetting
purchase  of new  investments.  The  decrease  in net  cash  used  in  financing
activities is due to decreased treasury stock purchases.

The  Company  currently  believes  that its  current  cash  and cash  equivalent
balances and the cash generated from  operations  will be sufficient to meet its
long-term  funding  requirements.  Management has in place a $3,000,000  line of
credit to help fund further growth. For the first quarter of fiscal 2000 capital
expenditures were approximately $160,000.

Since the debt of the Company's  ESOP is not to an outside party the Company has
eliminated from the  Consolidated  Statements of Income the offsetting  items of
interest  income  and  interest  expenses  relating  to ESOP.  The  Company  has
also eliminated the offsetting accruals from the Consolidated Balance Sheets.

During the three months ended September 30, 2000, the Company did not repurchase
any of its common stock.  During the three months ended  September 30, 1999, the
Company  repurchased  15,027 shares of its common stock from the Company's  ESOP
and other  public  transactions.  Under  existing  Board  authorizations,  as of
September  30, 2000,  $925,750  could be utilized to  repurchase  the  Company's
common stock.

Year 2000 Issues

The  Company's  information   technology  systems  successfully   completed  the
transition  into the year 2000.  The  beginning  of the new year  resulted in no
adverse or negative  impact on  operations.  The Company  believes that the risk
associated with the year 2000 problem has been  identified and  eliminated.  The
Company will continue to evaluate the 2000 readiness of its business systems and
significant  vendors to ensure a complete  transition through the year 2000. The
estimated total cost of the year 2000  assessment and remediation  plan has been
less than $25,000.

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

It  should  be  noted  that in this  Management's  Discussion  and  Analysis  of
Financial Condition and Results of Operations are  "forward-looking  statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the  Securities  Exchange Act of 1934,  as amended,  and are made
pursuant to the safe harbor  provisions  of the  Private  Securities  Litigation
Reform  Act of  1995.  The  terms  "believe,"  "anticipate,"  "intend,"  "goal,"
"expect," and similar expressions may identify forward-looking statements. These
forward-looking  statements  represent the  Company's  current  expectations  or
beliefs  concerning  future events.  The matters covered by these statements are
subject to certain risks and  uncertainties  that could cause actual  results to
differ  materially  from  those  set  forth in the  forward-looking  statements,
including  the  Company's  dependence on timely  development,  introduction  and
customer  acceptance  of new  products,  the  impact  of  competition  and price
erosion,  as well as supply and  manufacturing  constraints  and other risks and
uncertainties. The foregoing list should not be construed as exhaustive, and the
Company  disclaims any  obligation  subsequently  to revise any  forward-looking
statements to reflect events or circumstances  after the date of such statements
or to reflect the occurrence of anticipated or unanticipated events. The Company
wishes  to  caution   readers   not  to  place   undue   reliance  on  any  such
forward-looking statements, which speak only as of the date made.


                                     - 8 -
<PAGE>

                         ESPEY MFG. & ELECTRONICS CORP.

                    PART II: Other Information and Signatures


Item 4.       Submission of Matters to a Vote of Security Holders
              ---------------------------------------------------

              None during the quarter.

Item-5.       Other Information
              -----------------

              None

Item 6.       Exhibits and Reports on Form 8-K
              --------------------------------

              None during the quarter.


                                     - 9 -
<PAGE>

                               S I G N A T U R E S
                               -------------------


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.

                                           ESPEY MFG. & ELECTRONICS CORP.


                                           /s/ Howard Pinsley,President
                                           -------------------------------
                                           Howard Pinsley, President and
                                           Chief Executive Officer


                                           /s/ David O'Neil, Treasurer
                                           --------------------------------
                                           David O'Neil, Treasurer and
                                           Principal Financial Officer

 15 November 2000
 ----------------
     Date


                                     - 10 -