----

----

| [X] | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|---------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------|----------------------------------------------------------------------------------------------------|

----

----

----

|                                                                                                              |   |          |       |   |              |   |
|-------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
| OP-TECH      ENVIRONMENTAL SERVICES, INC. AND WHOLLY-OWNED SUBSIDIARIES                                           |   |          |       |   |              |   |
| CONSOLIDATED      BALANCE SHEETS                                                                                  |   |          |       |   |              |   |
|                                                                                                              |   |          |       |   |              |   |
|                                                                                                              |   |          |       |   |              |   |
|                                                                                                              |   |          |       |   |              |   |
|                                                                                                              |   | (UNAUDITED)   |       |   |              |   |
|                                                                                                              |   | June      30, |       |   | December      31, |   |
|                                                                                                              |   | 2008          |       |   | 2007              |   |
|                                                                                                              |   |          |       |   |              |   |
| ASSETS                                                                                                            |   |          |       |   |              |   |
|                                                                                                              |   |          |       |   |              |   |
| Current      Assets:                                                                                              |   |          |       |   |              |   |
|    Cash                                                                                            |   | $             | 253,798    |   |              | $      | 93,535 |   |
|    Accounts      receivable (net of allowance for doubtful accounts of                             |   |          |       |   |              |   |   |   |
|       approximately      $224,000 and $261,000, respectively)                       |   |          | 6,810,976  |   |              |   | 8,355,280 |   |
|    Costs      on uncompleted projects applicable to future billings                                |   |          | 1,118,172  |   |              |   | 2,188,514 |   |
|    Inventory                                                                                       |   |          | 481,730    |   |              |   | 402,351 |   |
|    Current      portion of deferred tax asset                                                      |   |          | 301,900    |   |              |   | 301,900 |   |
|    Prepaid      expenses and other current assets, net                                             |   |          | 706,101    |   |              |   | 503,858 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|            Total      Current Assets                       |   |          | 9,672,677  |   |              |   | 11,845,438 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
| Property      and equipment, net                                                                                  |   |          | 3,055,431  |   |              |   | 3,266,973 |   |
| Deferred      tax asset                                                                                           |   |          | 1,024,974  |   |              |   | 1,127,700 |   |
| Other      assets                                                                                                 |   |          | 13,961     |   |              |   | 13,961 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|            Total      Assets                               |   | $             | 13,767,043 |   |              | $      | 16,254,072 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                         |   |          |       |   |              |   |   |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
| Current      Liabilities:                                                                                         |   |          |       |   |              |   |   |   |
|    Accounts      payable                                                                           |   | $             | 1,193,335  |   |              | $      | 2,598,756 |   |
|    Outstanding      checks in excess of bank balance                                               |   |          | -          |   |              |   | 592,757 |   |
|    Billings      in excess of costs and estimated profit                                           |   |          |       |   |              |   |   |   |
|       on      uncompleted projects                                                  |   |          | 465,470    |   |              |   | 1,369,899 |   |
|    Accrued      expenses and other current liabilities                                             |   |          | 1,212,773  |   |              |   | 957,625 |   |
|    Accrued      litigation defense reserve                                                         |   |          | 302,857    |   |              |   | 345,645 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|    Note      payable to bank under line of credit                                                  |   |          | 4,921,046  |   |              |   | - |   |
|    Current      portion of long-term debt                                                          |   |          | 1,147,154  |   |              |   | 840,602 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|            Total      Current Liabilities                  |   |          | 9,242,635  |   |              |   | 6,705,284 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
| Long-term      debt, net of current portion                                                                       |   |          | 1,565,489  |   |              |   | 1,871,745 |   |
| Note      payable to bank under line of credit                                                                    |   |          | -          |   |              |   | 4,862,207 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|            Total      Liabilities                          |   |          | 10,808,124 |   |              |   | 13,439,236 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
| Shareholders'      Equity:                                                                                        |   |          |       |   |              |   |   |   |
|    Common      stock, par value $.01 per share; authorized 20,000,000                              |   |          |       |   |              |   |   |   |
|       shares;      11,937,038 shares issued and outstanding                         |   |          |       |   |              |   |   |   |
|       as      of June 30, 2008 and December 31, 2007                                |   |          | 119,371    |   |              |   | 119,371 |   |
|    Additional      paid-in capital                                                                 |   |          | 7,005,724  |   |              |   | 7,005,724 |   |
|    Accumulated      deficit                                                                        |   |          | (4,155,676 | )      |              |   | (4,304,059 | ) |
|    Accumulated      other comprehensive income                                                     |   |          | (10,500    | )      |              |   | (6,200 | ) |
|                                                                                                              |   |          |       |   |              |   |   |   |
|            Total      Shareholders' Equity                 |   |          | 2,958,919  |   |              |   | 2,814,836 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|            Total      Liabilities and Shareholders' Equity |   | $             | 13,767,043 |   |              | $      | 16,254,072 |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
|                                                                                                              |   |          |       |   |              |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements.                   |   |          |       |   |              |   |   |   |

----

|        OP-TECH      ENVIRONMENTAL SERVICES, INC. AND WHOLLY-OWNED SUBSIDIARIES             |
|-------------------------------------------------------------------------------------------------|
|        CONSOLIDATED      STATEMENTS OF OPERATIONS                                          |
|        (UNAUDITED)                                                                         |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   | THREE      MONTHS ENDED |   |   | SIX      MONTHS ENDED |   |   |   |   |
|                                                                                            |   | June      30, |   |   | June      30, |   |   | June      30, |   |   | June      30, |   |
|                                                                                            |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Project      revenue                                                                            |   | $ | 7,422,275 |   |   | $ | 8,994,960 |   |   | $ | 14,748,538 |   |   | $ | 16,450,950 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Project      costs                                                                              |   |   | 5,158,568 |   |   |   | 7,094,645 |   |   |   | 10,378,736 |   |   |   | 12,864,751 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      margin                                                                               |   |   | 2,263,707 |   |   |   | 1,900,315 |   |   |   | 4,369,802 |   |   |   | 3,586,199 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Payroll      expense and related payroll taxes and benefits             |   |   | 763,429 |   |   |   | 937,993 |   |   |   | 1,786,569 |   |   |   | 1,737,925 |   |
|     Office      Expense                                                     |   |   | 201,265 |   |   |   | 240,862 |   |   |   | 460,571 |   |   |   | 429,750 |   |
|     Occupancy                                                               |   |   | 195,908 |   |   |   | 188,219 |   |   |   | 426,126 |   |   |   | 394,721 |   |
|     Business      Insurance                                                 |   |   | 133,498 |   |   |   | 186,913 |   |   |   | 254,723 |   |   |   | 326,374 |   |
|     Professional      Services                                              |   |   | 185,129 |   |   |   | 161,969 |   |   |   | 338,998 |   |   |   | 292,161 |   |
|     Equipment      Expenses, net of usage credit                            |   |   | 244,457 |   |   |   | 174,944 |   |   |   | 477,879 |   |   |   | 431,292 |   |
|     Other      expenses                                                     |   |   | 101,404 |   |   |   | 251,117 |   |   |   | 139,554 |   |   |   | 330,315 |   |
|                                                                                            |   |   | 1,825,090 |   |   |   | 2,142,017 |   |   |   | 3,884,420 |   |   |   | 3,942,538 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss)                                                                    |   |   | 438,617 |   |   |   | (241,702 | ) |   |   | 485,382 |   |   |   | (356,339 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income and (expense):                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      expense                                                         |   |   | (112,312 | ) |   |   | (179,085 | ) |   |   | (244,197 | ) |   |   | (358,929 | ) |
|    Other,      net                                                               |   |   | 11,950 |   |   |   | (120 | ) |   |   | 10,412 |   |   |   | 735 |   |
|                                                                                            |   |   | (100,362 | ) |   |   | (179,205 | ) |   |   | (233,785 | ) |   |   | (358,194 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) before income taxes                                                      |   |   | 338,255 |   |   |   | (420,907 | ) |   |   | 251,597 |   |   |   | (714,533 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax benefit (expense)                                                               |   |   | (137,802 | ) |   |   | 168,400 |   |   |   | (103,214 | ) |   |   | 286,400 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                          |   | $ | 200,453 |   |   | $ | (252,507 | ) |   | $ | 148,383 |   |   | $ | (428,133 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per common share:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                                                   |   | $ | 0.02 |   |   | $ | (0.02 | ) |   | $ | 0.01 |   |   | $ | (0.04 | ) |
|     Diluted                                                                 |   | $ | 0.02 |   |   | $ | (0.02 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                                                   |   |   | 11,937,038 |   |   |   | 11,799,372 |   |   |   | 11,937,038 |   |   |   | 11,774,039 |   |
|     Diluted                                                                 |   |   | 12,281,808 |   |   |   | 12,385,364 |   |   |   | 12,288,150 |   |   |   | 12,391,697 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements. |   |   |   |   |   |   |   |   |   |

----

| OP-TECH      ENVIRONMENTAL SERVICES, INC. AND WHOLLY-OWNED SUBSIDIARIES                                                                                                                            |   |                  |       |   |          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|--------|---------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                                                                                                                                         |   |                  |       |   |          |   |
| (UNAUDITED)                                                                                                                                                                                        |   |                  |       |   |          |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |
|                                                                                                                                                                                               |   | SIX      MONTHS ENDED |       |
|                                                                                                                                                                                               |   | June      30,         |       |   | June      30, |   |
|                                                                                                                                                                                               |   | 2008                  |       |   | 2007          |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |
| Operating      activities:                                                                                                                                                                         |   |                  |       |   |          |   |
|    Net      income (loss)                                                                                                                                                           |   | $                     | 148,383    |   |          | $      | (428,133 | ) |
|    Adjustments      to reconcile net loss to net cash                                                                                                                               |   |                  |       |   |          |   |   |   |
|       provided      by operating activities:                                                                                                                         |   |                  |       |   |          |   |   |   |
|          Bad      Debt expense                                                                                                                        |   |                  | 7,411      |   |          |   | 191,778 |   |
|          Depreciation      and amortization                                                                                                           |   |                  | 344,387    |   |          |   | 340,443 |   |
|          Stock      Compensation                                                                                                                      |   |                  | -          |   |          |   | 28,614 |   |
|          Provision      for deferred income taxes                                                                                                     |   |                  | 102,726    |   |          |   | (289,456 | ) |
|          (Increase)      decrease in operating assets and                                                                                             |   |                  |       |   |          |   |   |   |
|             increase      (decrease) in operating liabilities:                                                                         |   |                  |       |   |          |   |   |   |
|                Accounts      receivable                                                                                 |   |                  | 1,536,893  |   |          |   | (362,441 | ) |
|                Costs      on uncompleted projects applicable to                                                         |   |                  |       |   |          |   |   |   |
|                    future      billings                                                             |   |                  | 1,070,342  |   |          |   | 1,549,156 |   |
|                Billings      and estimated profit in excess of costs                                                    |   |                  |       |   |          |   |   |   |
|                   on      uncompleted contracts                                                          |   |                  | (904,429   | )      |          |   | 554,934 |   |
|                Prepaid      expenses, inventory and other assets                                                        |   |                  | (281,622   | )      |          |   | (393,489 | ) |
|                Accounts      payable and accrued expenses                                                               |   |                  | (1,193,061 | )      |          |   | (1,836,456 | ) |
|                        Net      cash provided by (used in) operating activities |   |                  | 831,030    |   |          |   | (645,050 | ) |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
| Investing      activities:                                                                                                                                                                         |   |                  |       |   |          |   |   |   |
|    Purchase      of property and equipment                                                                                                                                          |   |                  | (132,845   | )      |          |   | (725,778 | ) |
|                       Net      cash used in investing activities                     |   |                  | (132,845   | )      |          |   | (725,778 | ) |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
| Financing      activities:                                                                                                                                                                         |   |                  |       |   |          |   |   |   |
|    Proceeds      from issuance of common stock                                                                                                                                      |   |                  | -          |   |          |   | 8,300 |   |
|    Outstanding      checks in excess of bank balance                                                                                                                                |   |                  | (592,757   | )      |          |   | 652,925 |   |
|    Proceeds      from note payable to bank and current                                                                                                                              |   |                  |       |   |          |   |   |   |
|       and      long-term borrowings, net of financing costs                                                                                                          |   |                  | 7,129,111  |   |          |   | 8,308,471 |   |
|    Principal      payments on current and long-term borrowings                                                                                                                      |   |                  | (7,074,276 | )      |          |   | (7,615,763 | ) |
|                      Net      cash provided by (used in) financing activities             |   |                  | (537,922   | )      |          |   | 1,353,933 |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
| Increase      (decrease) in cash                                                                                                                                                                   |   |                  | 160,263    |   |          |   | (16,894 | ) |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
| Cash      at beginning of period                                                                                                                                                                   |   |                  | 93,535     |   |          |   | 30,981 |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
| Cash      at end of period                                                                                                                                                                         |   | $                     | 253,798    |   |          | $      | 14,087 |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
| Non-cash      item                                                                                                                                                                                 |   |                  |       |   |          |   |   |   |
|    Non-cash      financing of insurance                                                                                                                                             |   | $                     | 566,043    |   |          | $      | 663,226 |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
|                                                                                                                                                                                               |   |                  |       |   |          |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements.                                                                                                    |   |                  |       |   |          |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |    |   |               |   |                       |          |   |   |                        |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|--------------------|--------|----------------------------|---------------|--------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Six months ended |    |   | Three months ended |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | June 30, 2008    |    |   | June 30, 2007      |   |                       | June 30, 2008 |   |   | June 30, 2007               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |    |   |               |   |                       |          |   |   |                        |   |
| Net      income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                | 148,382 |   |               | $      | (428,133                   | )             |   | $      | 200,452                     |   |   | $ | (252,507 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |    |   |               |   |                       |          |   |   |                        |   |   |   |   |   |
| Other      comprehensive income (loss):   Change      in fair value of cash flow hedge   Net      of income tax of ($2,900) and $8,800 in   2008      and $1,200 and $3,900 in   2007,      respectively                                            |   |             | (4,300  | )      |               |   |       1,743 |          |   |   |       13,300 |   |   |   |       5,800 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             |    |   |               |   |                       |          |   |   |                        |   |   |   |   |   |
| Comprehensive      income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                | 144,082 |   |               | $      | (426,390                   | )             |   | $      | 213,752                     |   |   | $ | (246,707 | ) |

----

----

----

| ·   | Payroll      and payroll related expense decreasing 19% to $763,429 from $937,993 due      to reductions in worker’s compensation and employee benefit      costs, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business      insurance expense decreasing 29% to $133,498 from $186,913 due to a      reduction in business insurance rates reducing overall premiums in 2008      with similar coverage and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other      expenses decreasing 60% to $101,401 from $251,117 as a result of a large      bad debt expense in the second quarter of2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | CRITICAL ACCOUNTING      POLICIES AND ESTIMATES |
|--------|-------------------------------------------------|

----

| (a)   | Disclosure Controls and      Procedures. |
|-----------------|------------------------------------------|

----

|   | Item      1.  Legal Proceedings. |
|--------|--------------------------------------------|

|   | Item      1A. Risk Factors. |
|--------|-----------------------------|

|   |          No      material changes |
|--------|--------------------------------------------------------------------------------|

|   | Item      2.  Unregistered Sales of Equity Securities and Use of      Proceeds. |
|--------|-------------------------------------------------------------------------------------------|

|   |           None |
|--------|------------------------------------------------------------------|

|   | Item      3.  Defaults Upon SeniorSecurities. |
|--------|---------------------------------------------------------|

|   |                      None |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

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

|   |                      None |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

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

|   | Item      6. Exhibits. |
|--------|------------------------|

----

----

----