<PAGE>
                                       
                                FORM 10-QSB/A1
                   U.S. SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D. C.  20549


(Mark One)

(X)  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE 
     SECURITIES EXCHANGE ACT OF 1934
                                       
                             For the quarterly period ended September 30, 1998

( )  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE 
     EXCHANGE ACT

For the transition period from _________ to ________


                         Commission File No. 0-16335
                                       
                                       
                       OZO DIVERSIFIED AUTOMATION, INC.
                       7450 East Jewell Avenue, Suite A
                           Denver, Colorado  80231
                                          
                           Telephone (303)-368-0401


        Colorado                                84-0922701          
------------------------           ------------------------------------
(State of Incorporation)           (IRS Employer Identification Number)


Indicate by check mark whether the Issuer (1) has filed all reports required 
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 
during the past 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
     -----                 

As of September 30, 1998, Registrant had 483,164 shares of its $0.10 par 
value common stock outstanding.


                                       1
<PAGE>
                                       
                        PART I - FINANCIAL INFORMATION
                                          
                       OZO Diversified Automation, Inc.
                                 BALANCE SHEETS

                                     ASSETS
<TABLE>
<CAPTION>

                                                    September 30, 1998   December 31, 1997
                                                    ------------------   -----------------
                                                           (Unaudited)
<S>                                                 <C>                  <C>
CURRENT ASSETS
    Cash                                                          $607              $7,526
    Accounts and notes receivable, net                         131,296             255,414
    Inventories (See Note 3)                                   366,866             358,498
    Prepaid expenses                                            11,215              25,631
                                                              --------            --------

        Total Current Assets                                   509,984             647,069
                                                              --------            --------

PROPERTY AND EQUIPMENT
    Manufacturing                                               40,391             149,703
    Furniture & Fixtures                                        83,581             169,747
    Capitalized Leases                                         204,814             204,814
    Leasehold Improvements                                       5,010               5,010
    Vehicle                                                     10,820              10,820
                                                              --------            --------
                                                               344,616             504,094

        Less accumulated depreciation                          199,302             362,271
                                                              --------            --------

            Total Property and Equipment                       145,314             177,823
                                                              --------            --------

OTHER ASSETS
    Deferred Financing Costs                                     2,255               8,126
    Other                                                        2,859               2,859
                                                              --------            --------
                                                                 5,114              10,985
                                                              --------            --------

TOTAL ASSETS                                                  $660,412            $835,877
                                                              --------            --------
                                                              --------            --------
</TABLE>


                                       2
<PAGE>

                         OZO Diversified Automation, Inc.
                            BALANCE SHEETS (CONTINUED)

                      LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>

                                                    September 30, 1998   December 31, 1997
                                                    ------------------   -----------------
<S>                                                 <C>                  <C>
                                                            (Unaudited)
CURRENT LIABILITIES
    Current portion of notes payable and
      Capitalized lease obligation                            $281,835            $280,036
    Accounts payable and accrued expenses                      149,902             401,687
    Note payable - Bank                                         27,415              27,415
    Note payable - Officer                                      78,609                   0
    Note payable - Director                                     75,000                   -
                                                            ----------          ----------

        Total Current Liabilities                             $612,761             709,138
                                                            ----------          ----------

LONG-TERM DEBT AND CAPITALIZED LEASE OBLIGATION                 82,429             126,731
                                                            ----------          ----------

        Total Liabilities                                      695,190             835,869
                                                            ----------          ----------

SHAREHOLDERS' EQUITY
    Preferred stock $0.10 par value,
      Authorized 1,000,000 shares,
      Issued - none
    Common stock, $0.10 par value,
      Authorized 5,000,000 shares,
      Issued and outstanding - 483,164 (1998)
      Issued and outstanding - 478,164 (1997)                   48,316              47,816
    Capital in excess of par value                           1,198,004           1,193,004
    Accumulated deficit                                     (1,281,098)         (1,240,812)
                                                            ----------          ----------

        Total Shareholders' (Deficiency) Equity                (34,778)                  8
                                                            ----------          ----------

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY                      $660,412            $835,877
                                                            ----------          ----------
                                                            ----------          ----------
</TABLE>

                                       3
<PAGE>

                        OZO Diversified Automation, Inc.
                            STATEMENT OF OPERATIONS
                                  (UNAUDITED)
<TABLE>
<CAPTION>
                                                           Nine Months Ended September 30,

                                                               1998                1997
                                                               ----                ----
<S>                                                         <C>                 <C>
Net Sales                                                   $1,352,919          $2,032,998
Cost of Sales                                                  802,615           1,181,231
                                                            ----------          ----------
Gross Profit                                                   550,304             851,767
                                                            ----------          ----------

Operating Expenses:
    Marketing & Sales                                          119,660             290,491
    Research & Development                                     105,421             116,845
    General & Administrative                                   365,508             365,988
                                                            ----------          ----------
                                                               590,589             773,324
                                                            ----------          ----------

Income before Taxes                                            (40,285)             78,443

Provision for Income Taxes                                        ----              15,689
Tax Benefit of Operating Loss Carryforwards                       ----             (15,689)
                                                            ----------          ----------

NET INCOME (LOSS)                                              (40,285)            $78,443
                                                            ----------          ----------
                                                            ----------          ----------

NET INCOME (LOSS) PER COMMON SHARE                              ($0.08)              $0.17
                                                            ----------          ----------
                                                            ----------          ----------

NET INCOME (LOSS) PER COMMON SHARE
    ASSUMING DILUTION                                           ($0.08)              $0.17
                                                            ----------          ----------
                                                            ----------          ----------

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING                                                480,942             458,164
                                                            ----------          ----------
                                                            ----------          ----------

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING ASSUMING DILUTION                              480,942             458,164
                                                            ----------          ----------
                                                            ----------          ----------
</TABLE>


                                       4
<PAGE>

                                       
                         OZO Diversified Automation, Inc.
                             STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                           Nine months ended September 30,
                                                           -------------------------------
                                                                1998                1997  
                                                                ----                ----
<C>                                                           <C>                 <C>
Cash flows for operating activities:
    Net Income                                                ($40,285)            $78,443
    Adjustments to reconcile net income to net cash
      Used in operating activities:
          Depreciation                                          38,929              34,583
          Amortization of deferred financing costs               5,871               5,871
          Other                                                                     (2,082)
          Decrease (increase) in assets:
              Accounts receivable                              124,118            (197,979)
              Inventories                                       (8,369)            133,221
              Prepaid expenses                                  14,416               1,910

          Increase (decrease) in Accounts payable and
            Accrued expenses                                  (249,986)            (39,604)
                                                              --------             -------

    Net cash provided (used) by operating activities          (115,306)             14,363
                                                              --------             -------

Cash flows from investing activities:
    Capital expenditures                                        (6,421)             (9,213)
                                                              --------             -------

    Net cash provided (used) by investing activities            (6,421)             (9,213)
                                                              --------             -------

Cash flows from financing activities:
    Payments of long-term debt and capitalized lease
      Obligations                                              (44,302)             (7,736)
    Proceeds from officer loan                                 213,200                ----
    Payments on officer loan                                  (134,590)               ----
    Proceeds from director loan                                 75,000
    Payments on director loan                                        0
    Proceeds from issuance of common stock                       5,500                ----
                                                              --------             -------
        Net cash provided (used) by financing activities       114,808              (7,736)
                                                              --------             -------

Net increase (decrease) in cash                                 (6,919)             (2,586)

Cash at beginning of period                                      7,526               3,111

Cash at end of period                                             $607                $525
                                                              --------             -------
                                                              --------             -------
</TABLE>


                                       5
<PAGE>

                        OZO Diversified Automation, Inc.
                            STATEMENT OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                           Three Months Ended September 30,
                                                           --------------------------------
                                                                1998                1997
                                                                ----                ----
<S>                                                           <C>                 <C>
Net Sales                                                     $359,798            $604,809
Cost of Sales                                                  182,970             354,083
                                                              --------            --------

Gross Profit                                                   176,828             250,726
                                                              --------            --------

Operating Expenses:
    Marketing & Sales                                           15,346              78,407
    Research & Development                                      24,979              39,523
    General & Administrative                                   132,846             115,971
                                                              --------            --------
                                                               173,171             233,901
                                                              --------            --------

Income before Taxes                                              3,657              16,825

Provision for Income Taxes                                         731               3,365
Tax Benefit of Operating Loss Carryforwards                       (731)             (3,365)
                                                              --------            --------

NET INCOME (LOSS)                                               $3,657             $16,825
                                                              --------            --------
                                                              --------            --------

NET INCOME (LOSS) PER COMMON SHARE                               $0.01               $0.04
                                                              --------            --------
                                                              --------            --------

NET INCOME (LOSS) PER COMMON SHARE
    ASSUMING DILUTION                                            $0.01               $0.04
                                                              --------            --------
                                                              --------            --------

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING                                                483,164             458,164
                                                              --------            --------
                                                              --------            --------

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING ASSUMING DILUTION                              483,164             458,164
                                                              --------            --------
                                                              --------            --------
</TABLE>


                                       6
<PAGE>

                        OZO Diversified Automation, Inc.
                                          
                          NOTES TO FINANCIAL STATEMENTS
                  NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                                   (UNAUDITED)


The unaudited financial statements included herein were prepared from the 
records of the Company in accordance with Generally Accepted Accounting 
Principles and reflect all adjustments which are, in the opinion of 
Management, necessary to provide a fair statement of the results of operation 
and financial position for the interim periods.  Such financial statements 
generally conform to the presentation reflected in the Company's Form 10-KSB 
filed with the Securities and Exchange Commission for the year ended December 
31, 1997.  The current interim period reported herein should be read in 
conjunction with the Company's Form 10-KSB subject to independent audit at 
the end of the year.

The results of operations for the nine months ended September 30, 1998, are 
not necessarily indicative of the results that may be expected for the year 
ending December 31, 1998.

Note 1 - A summary of significant accounting policies is currently on file 
with the Securities and Exchange Commission on Form10-KSB

Note 2 - Income Taxes.  At December 31, 1997, the Company had net operating 
loss carryforwards totaling approximately $962,000, that may be offset 
against future taxable income through 2011 and research and development 
credits of approximately $60,000 expiring through 2012.

The Company has fully reserved the tax benefits of these operating losses 
because the likelihood of realization of the tax benefits cannot be 
determined. These carryforwards are subject to review by the Internal Revenue 
Service.

Temporary differences between the time of reporting certain items for 
financial and tax reporting purposes, primarily from using different methods 
of reporting depreciation cost and warranty and vacation accruals, are not 
considered significant by Management of the Company.

Note 3 - Inventories
<TABLE>
<CAPTION>

                           September 30, 1998        December 31, 1997
<S>                        <C>                       <C>
Raw Materials                        $324,867                 $358,498
Work in Progress                        8,000                     ----
Finished Goods                         34,000                     ----
                                     --------                 --------
    Total                            $366,867                 $358,498
                                     --------                 --------
                                     --------                 --------
</TABLE>


                                       7
<PAGE>

                       MANAGEMENT'S DISCUSSION AND ANALYSIS
                 OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


For the nine months ended September 30, 1998, the Company had revenues of 
$1,352,919, a 33.5% decrease from revenues of $2,032,998, recorded for the 
first nine months of 1997.  For the quarter ended September 30, 1998, the 
Company had revenues of $359,798, a 40.5% decrease from revenues of $604,809, 
recorded for the third quarter of 1997.  The decrease in revenues is 
primarily a result of weak economic conditions in Asia, as well as, capital 
spending curtailments by large Original Equipment Manufacturers (OEMs) in 
North America.  These spending curtailments are also directly attributable to 
the uncertain business conditions in Asia.  While Management cannot predict a 
timetable for a recovery in the Asian markets, it is believed that the weak 
business conditions in Asia will extend well into the second half of the year 
and possibly into the first half of 1999.  Management is in the process of 
refocusing its sales efforts in markets that remain less affected by the 
Asian financial situation.

Because of the decrease in total revenues reported during the first nine 
months of 1998, the Company posted a loss of $40,285, a 151.3% decrease from 
net income of $78,443, reported for the same period in 1997.  Despite a 
decrease in total revenues reported during the third quarter of 1998, the 
Company posted a gain of $3,657, a 78.3% decrease from net income of $16,825, 
reported for the same period in 1997.

In anticipation of an extended downturn in sales, Management has continued to 
undertake internal measures to reduce fixed costs and to match expense 
spending against projected revenues.  The Company will voluntarily enforce 
its cost containment program for as long as conditions warrant.

The Company continues to focus on the depaneling application market with its 
premium routing equipment, the 18HS PanelMASTER and the 16SI PanelROUTER.  
Both of these strategic product groups are continuously analyzed for 
improvements and incorporating requirements defined by our customers.  In 
August, the Company attended the SMTrends Trade Show in Huntsville, Alabama, 
and the SMI Trade Show in San Jose, California.  In addition, marketing 
efforts have been increased in the European Union, and in Central and South 
America.  Management has also reemphasized customer service, and is 
continuing production process improvements in an effort to preserve operating 
margins.

The Company's Current Liabilities as of September 30, 1998, are $612,761, 
approximately $102,777, higher than Current Assets of $509,984.  Included in 
the Current Liabilities as of September 30, 1998, are $240,000, in notes 
which are due December 30, 1998.  As disclosed in the 1997 10-KSB report, 
Management is in the process of addressing the Company's debt obligations, 
and expects to have this issue resolved well in advance of the due date.  
Please see Part II, Note 5, for more information.  Additionally, a $75,000 
loan was made from a director of the Company to partially fund the operating 
loss incurred to date.


                                       8
<PAGE>

Cash flow from operating activities was a negative $115,306, for the nine 
months ended September 30, 1998, as compared to a positive $14,363, for the 
same period in 1997.  This is directly attributable to reduced sales and a 
decrease in Accounts Payable.  The negative operating cash flow had been 
primarily funded by the aforementioned loan from a director of the Company in 
addition to a loan from an officer which is payable upon demand with interest 
at 2.0 percentage points above the prime rate.  As of September 30, 1998, the 
balance on these loans was approximately $75,000 and $78,609 respectively.

During the third quarter the Company wrote-off assets which were fully 
depreciated and no longer in service.  These write-offs included $109,311 in 
manufacturing equipment, and $92,587 in furniture and fixtures.

As of October 26, 1998, the Company had an open order backlog of 
approximately $304,700, compared to a backlog of $368,000, on October 28, 
1997.  The open order backlog reflects an upturn in business conditions both 
domestically and internationally.  However, as mentioned above, business 
conditions have continued to adversely impact the Company's open order 
backlog and remain unpredictable.

The foregoing discussion does not give any effect to the completion of a sale 
of the Company's depaneling and routing business as described in Part II, 
Item 5 of this report.  If the proposed transaction is completed, of which 
there can be no assurance, the Company's historical business will be 
discontinued.

Year 2000 Compliance

Although there can be no assurance, the company does not anticipate that it 
will suffer any adverse impact as a result of Year 2000 (Y2K) computer 
software issues either as a result of third party non-compliance or as a 
result of internal matters.  None of the information technology or other 
software and hardware systems utilized by the Company incorporates technology 
that is incapable of recognizing dates beyond December 31, 1999.

Internally developed computer software sold with the Company's equipment is 
not date dependent.  There are no date fields contained within this software. 
The software is designed to operate on IBM-compatible personal computers.  
The current version of the operating system sold with the Company's 
equipment, MS DOS 6.22, the Company has been informed, is Year 2000 
compatible by means of an upgrade to a more recent release.

Third-party software sold with the Company's equipment is limited to one 
product.  The vendor of this product is GraphiCode, Inc.  GraphiCode, Inc. 
has assured the Company that its software product, Etchmaster, is also Year 
2000 compatible.


                                       9
<PAGE>

The Company is currently upgrading its ERP software to Macola Progression 
Series (Version 7.0/7.5) which is completely Year 2000 compliant.  This 
upgrade will be completed by December 1999.  All our other software products 
used internally, primarily Office Automation and Engineering, are the most 
recent releases of the products, and the Company has been led to believe 
these releases are also Year 2000 compatible.

In making the foregoing determination, the Company has assessed embedded 
systems contained in its facility and manufacturing equipment.  As a result, 
the Company has not established a contingency plan to come into effect in the 
event of a Y2K catastrophe and management does not believe that such a plan 
is necessary.  Of course, the Company is dependent on facilities outside of 
their control, such as electrical power supplies, banking facilities, 
transportation facilities (such as airlines) and communications facilities.

While the Company believes, based on public reports and some notifications it 
has received, that these outside facilities are or will be Y2K compliant, the 
Company does not have any other basis for determining their compliance.  The 
operations of the Company would be significantly and adversely affected if 
any of these facilities are adversely affected by the millennium and other 
issues related to Y2K.

Except for historical information contained herein, the statements in this 
report are forward-looking statements that are made pursuant to the safe 
harbor provisions of the Private Securities Litigation Reform Act of 1995. 
Forward-looking statements involve known and unknown risks and uncertainties, 
which may cause the Company's actual results in future periods to differ 
materially, from forecasted results.  These risks and uncertainties include, 
among other things, product demand and acceptance, market competition, and 
risks inherent in the Company's international operations.  These and other 
risks are described elsewhere herein and in the Company's other filings with 
the Securities and Exchange Commission.


                                      10
<PAGE>

                          PART II - OTHER INFORMATION

                        OZO Diversified Automation, Inc.


Items 1-4   Not Applicable.

Item 5.     On October 6, 1998, the Company announced that it had reached a 
            nonbinding agreement in principle to sell its automation and 
            depaneling business to JOT Automation, Inc., the U.S. subsidiary 
            of JOT Automation Group Oyj, of Finland.  The nature of the 
            proposed transaction will be an asset sale between OZO and JOT, 
            as opposed to a common stock purchase by JOT from OZO's current 
            shareholders.

            The proposed transaction was originally scheduled to close before 
            the end of the year.  However, it was and is subject to 
            satisfactory completion of due diligence, preparation of 
            definitive agreements, and OZO shareholder approval among other 
            standard closing conditions.

            In its report on Form 8-K reporting an event of November 4, 1998, 
            the Company reported that it had entered into an Asset Purchase 
            Agreement with JOT Automation, Inc., of Dallas Texas.  Following 
            execution by both parties of that Agreement, the Company 
            continued negotiating certain of the documents with respect 
            thereto, and prepared and filed with the Securities and Exchange 
            Commission a preliminary proxy statement in accordance with SEC 
            Regulation 14A. The staff members of the Commission's Division of 
            Corporation Finance elected to review the Company's preliminary 
            proxy statement. The decision to review the proxy statement has 
            three consequences to OZO:

                 The shareholder vote on the proposed transaction between OZO 
                 and JOT Automation described in the preliminary proxy 
                 statement cannot occur prior to the end of 1998, which means 
                 that the completion of the transaction (if approved by the 
                 shareholders, of which there can be no assurance) cannot 
                 occur on January 2, 1999, as scheduled in the Asset Purchase 
                 Agreement;

                 The shareholders of OZO will not be able to elect directors 
                 at the shareholder meeting when the meeting is held; and

                 The Company has been asked to file amended versions of it 
                 1997 Form 10KSB and 1998 third quarter Form 10QSB.


                                      11
<PAGE>

           As a result of those consequences the Company and JOT Automation, 
           Inc., have entered into an amendment to the Asset Purchase 
           Agreement which provides that the completion of the transaction 
           will take place on the first business day not earlier than three 
           days after approval of the transaction by the shareholders of OZO. 
           In addition, JOT Automation has made certain accommodations for 
           OZO to make expenditures necessary or appropriate to maintain and 
           improve the Excluded Assets and to repay certain outstanding debt, 
           which will become due before the transaction with JOT Automation 
           can be completed.  OZO will have to repay these extraordinary 
           expenditures to JOT automation at the completion of the 
           transaction (if completed, of which there can be no assurance).

           Also as a result of the delay in finalizing the proxy statement, 
           OZO has elected to extend the record date for determining 
           shareholders entitled to notice of and to vote at, the meeting.  
           The record date for the forthcoming meeting will be December 31, 
           1998.
     
           OZO's Board of Directors and Officers have identified certain 
           assets that are not for sale.  They will determine if a new 
           business is to be established in the public shell, or if the 
           proceeds from the proposed transaction will be returned, in whole 
           or in part, to the shareholders.  Per the Company's corporate 
           bylaws, the current common stock shareholders must approve the 
           proposed transaction before it may be completed.  If the proposed 
           transaction is approved, OZO's Board of Directors and Officers 
           will determine the next course of action regarding the disposition 
           of the remaining operations.
     
           As part of the proposed transaction, JOT Automation, Inc., will 
           acquire the OZO name and trademark.  The OZO public shell, after 
           the completion of the agreement with JOT, will likely change its 
           name. This will be a decision to be considered by the Board of 
           Directors (and likely to be a condition of the final agreement 
           with JOT).
     

Item 6     Exhibits and Reports on Form 8-K

           a)    Exhibits - none
           b)    No Reports on Form 8-K were filed during the quarter ending 
                 September 30, 1998, however, subsequent to September 30, 
                 1998, the Company filed reports on Form 8-K on November 4, 
                 1998, and December 15, 1998

Item 7     Not Applicable


                                      12
<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this Report to be signed on its behalf by the 
undersigned thereunto duly authorized.


OZO DIVERSIFIED AUTOMATION, INC.



By:   /s/                                     /s/
     ----------------------------            ----------------------------
     David J. Wolenski                       Brantley J. Halstead
     Principal Executive Officer             Principal Accounting Officer
     Principal Financial Officer             Chief Financial Officer


Dated:  January 5, 1999


                                      13