----

----

| [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) |   |   |
|                                                                                                         | March      31, |   | December 31, |
|                                                                                                         | 2008 |   | 2007 |
|                                                                                                         |   |   |   |
| ASSETS                                                                                                       |   |   |   |
|                                                                                                         |   |   |   |
| Current Assets:                                                                                              |  |  |  |
|    Cash                                                                                            |  $                        12,248 |  |  $                     93,535 |
|    Accounts receivable (net of      allowance for doubtful accounts of                        |  |  |  |
|       approximately      $208,000 and $261,000 respectively)                        |                       7,727,001 |  |                    8,355,280 |
|    Costs on uncompleted projects      applicable to future billings                                |                          958,502 |  |                    2,188,514 |
|    Inventory                                                                                       |                          480,649 |  |                       402,351 |
|    Current portion of deferred tax      asset                                                      |                          301,900 |  |                       301,900 |
|    Prepaid expenses and other      current assets, net                                             |                          238,290 |  |                       503,858 |
|                                                                                                              |  |  |  |
|                 Total Current Assets                       |                       9,718,590 |  |                  11,845,438 |
|                                                                                                              |  |  |  |
| Property and equipment, net                                                                                  |                       3,166,235 |  |                    3,266,973 |
| Deferred tax asset                                                                                           |                       1,169,000 |  |                    1,127,700 |
| Other assets                                                                                                 |                            13,961 |  |                         13,961 |
|                                                                                                              |  |  |  |
|                 Total Assets                               |  $                 14,067,786 |  |  $              16,254,072 |
|                                                                                                              |  |  |  |
|                                                                                                              |  |  |  |
| LIABILITIES AND SHAREHOLDERS'      EQUITY                                                                    |   |   |   |
|                                                                                                         |   |   |   |
| Current Liabilities:                                                                                         |  |  |  |
|    Accounts payable                                                                                |  $                   1,637,432 |  |  $                2,598,756 |
|    Outstanding checks in excess of      bank balance                                               |                          384,375 |  |                       592,757 |
|    Billings in excess of costs and      estimated profit                                           |  |  |  |
|       on      uncompleted projects                                                  |                          725,199 |  |                    1,369,899 |
|    Accrued expenses and other      current liabilities                                             |                       1,097,224 |  |                       957,625 |
|    Accrued litigation defense      reserve                                                         |                          308,881 |  |                       345,645 |
|    Note payable to bank under line      of credit                                                  |                       4,782,687 |  |                                 -   |
|    Current portion of long-term      debt                                                          |                          644,232 |  |                       840,602 |
|                                                                                                              |  |  |  |
|                 Total Current Liabilities                  |                       9,580,030 |  |                    6,705,284 |
|                                                                                                              |  |  |  |
| Long-term debt, net of current portion                                                                       |                       1,742,590 |  |                    1,871,745 |
| Note payable to bank under line of credit                                                                    |                                   -   |  |                    4,862,207 |
|                                                                                                              |  |  |  |
|                 Total Liabilities                          |                     11,322,620 |  |                  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 March      31, 2008 and December 31, 2007                               |                          119,371 |  |                       119,371 |
|    Additional paid-in capital                                                                      |                       7,005,724 |  |                    7,005,724 |
|    Accumulated deficit                                                                             |                     (4,356,129) |  |                   (4,304,059) |
|    Accumulated other comprehensive      income                                                     |                          (23,800) |  |                          (6,200) |
|                                                                                                              |  |  |  |
|                 Total Shareholders' Equity                 |                       2,745,166 |  |                    2,814,836 |
|                                                                                                              |  |  |  |
|                 Total Liabilities and Shareholders' Equity |  $                 14,067,786 |  |  $              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 |
|                                                                                        | March      31, |   | March      31, |
|                                                                                        | 2008 |   | 2007 |
|                                                                                        |   |   |   |
| Project revenue                                                                             |  $      7,326,263 |  |  $      7,455,990 |
|                                                                                             |  |  |  |
| Project costs                                                                               |               5,220,168 |  |               5,770,106 |
|                                                                                             |  |  |  |
| Gross margin                                                                                |               2,106,095 |  |               1,685,884 |
|                                                                                             |  |  |  |
| Operating expenses:                                                                         |   |   |   |
|     Payroll expense and      related payroll taxes and benefits              |               1,023,140 |  |                  799,932 |
|     Office expense                                                           |                  259,306 |  |                  188,888 |
|     Occupancy                                                                |                  230,218 |  |                  206,502 |
|     Business insurance                                                       |                  121,225 |  |                  139,461 |
|     Professional services                                                    |                  153,869 |  |                  130,192 |
|     Equipment expenses, net      of usage credit                             |                  233,422 |  |                  256,348 |
|     Other expenses                                                           |                    38,150 |  |                    79,198 |
|                                                                                             |               2,059,330 |  |               1,800,521 |
|                                                                                             |  |  |  |
| Operating income    (loss)                                                                  |                    46,765 |  |                (114,637) |
|                                                                                             |  |  |  |
| Other income and      (expense):                                                            |   |   |   |
|    Interest expense                                                               |                (131,885) |  |                (179,844) |
|    Other, net                                                                     |                    (1,538) |  |                         855 |
|                                                                                             |                (133,423) |  |                (178,989) |
|                                                                                             |  |  |  |
| Net income (loss) before income      taxes                                                  |                  (86,658) |  |                (293,626) |
|                                                                                             |  |  |  |
| Income tax benefit      (expense)                                                           |                    34,588 |  |                  118,000 |
|                                                                                             |  |  |  |
| Net income (loss)                                                                           |  $              (52,070) |  |  $          (175,626) |
|                                                                                             |  |  |  |
|                                                                                             |  |  |  |
| Earnings per common share:                                                                  |  |  |  |
|    Basic                                                      |  $                (0.004) |  |  $                (0.015) |
|     Diluted                                                                  |  $                (0.004) |  |  $                (0.014) |
|                                                                                             |  |  |  |
| Weighted average shares outstanding:                                                        |  |  |  |
|     Basic                                                                    |        11,937,038 |  |        11,748,704 |
|     Diluted                                                                  |        12,294,492 |  |        12,398,031 |
|                                                                                             |  |  |  |
|                                                                                             |  |  |  |
| 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)                                                                                                                                                                         |
|                                                                                                                                                                                |   |   |   |
|                                                                                                                                                                                |   |   |   |
|                                                                                                                                                                                |   |   |   |
|                                                                                                                                                                                | THREE MONTHS ENDED |
|                                                                                                                                                                                | March      31, |   | March      31, |
|                                                                                                                                                                                | 2008 |   | 2007 |
|                                                                                                                                                                                |   |   |   |
| Operating activities:                                                                                                                                                               |   |   |   |
|    Net loss                                                                                                                                                               |  $               (52,070) |  |  $          (175,626) |
|    Adjustments to reconcile net      loss to net cash                                                                                                                     |  |  |  |
|       provided by      operating activities:                                                                                                               |  |  |  |
|          Bad debt      expense (recovery)                                                                                                   |                   (39,174) |  |                    21,958 |
|          Depreciation      and amortization                                                                                                 |                  172,413 |  |                  167,474 |
|          Benefit from      deferred income taxes                                                                                            |                   (29,600) |  |                (107,949) |
|          (Increase)      decrease in operating assets and                                                                                   |  |  |  |
|                  increase (decrease) in operating liabilities:                                                               |  |  |  |
|                     Accounts receivable                                                                       |                  667,453 |  |               1,267,973 |
|                     Costs on uncompleted projects applicable to                                          |  |  |  |
|                         future billings                                                   |               1,230,012 |  |               1,589,458 |
|                     Billings and estimated profit in excess of costs                                          |  |  |  |
|                        on uncompleted contracts                                                |                 (644,700) |  |                (227,591) |
|                     Prepaid expenses, inventory and other assets                                              |                  187,270 |  |                    28,880 |
|                     Accounts payable and accrued expenses                                                     |                 (858,489) |  |        (2,225,269) |
|                             Net cash provided by operating activities |                  633,115 |  |                  339,308 |
|                                                                                                                                                                                     |  |  |  |
| Investing activities:                                                                                                                                                               |   |   |   |
|    Purchase of property and      equipment                                                                                                                                |                   (71,675) |  |                (457,041) |
|                            Net cash used in investing activities           |                   (71,675) |  |                (457,041) |
|                                                                                                                                                                                     |  |  |  |
| Financing activities:                                                                                                                                                               |   |   |   |
|    Increase (decrease) in outstanding checks in excess of bank balance                                                                                                    |                 (208,382) |  |                  123,069 |
|    Proceeds from note payable to      bank and current                                                                                                                    |  |  |  |
|       and long-term      borrowings, net of financing costs                                                                                                |               3,284,746 |  |               4,422,677 |
|    Principal payments on current      and long-term borrowings                                                                                                            |            (3,719,091) |  |        (4,213,673) |
|                           Net cash provided by (used in) financing activities   |                 (642,727) |  |                  332,073 |
|                                                                                                                                                                                     |  |  |  |
| Increase (decrease) in      cash                                                                                                                                                    |                   (81,287) |  |                  214,340 |
|                                                                                                                                                                                     |  |  |  |
| Cash at beginning of      period                                                                                                                                                    |                    93,535 |  |                    30,981 |
|                                                                                                                                                                                     |  |  |  |
| Cash at end of period                                                                                                                                                               |  $                12,248 |  |  $              245,321 |
|                                                                                                                                                                                     |  |  |  |
|                                                                                                                                                                                     |  |  |  |
| The accompanying notes are an      integral part of the consolidated financial  statements.                                                                                         |

----

|                                                                                                                    |   | March 31, 2008 |    |   | March 31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
|                                                                                                                    |   |           |    |   |           |   |
| Net      loss                                                                                                           |   | $              | (52,070 | )      |           | $      | (175,626 | ) |
|                                                                                                                    |   |           |    |   |           |   |   |   |
| Other      comprehensive loss:                                                                                          |   |           |    |   |           |   |   |   |
|    Change      in fair value of cash flow hedge                                                          |   |           |    |   |           |   |   |   |
|    Net      of income tax benefit of $11,700 in                                                          |   |           |    |   |           |   |   |   |
|    2008      and $2,700 in 2007                                                                          |   |           | (17,600 | )      |           |   | (4,000 | ) |
|                                                                                                                    |   |           |    |   |           |   |   |   |
|                 Comprehensive      loss |   | $              | (69,670 | )      |           | $      | (179,626 | ) |

----

----

| ·   | Payroll      expense and related payroll taxes and benefits increased 28% to $1,023,140      from $799,932 in 2007.  The Company recorded an estimate for      performance compensation of approximately $50,000 to be paid at year-end      if certain targets are met.  Additionally, two new      administrative employees were hired in the second quarter of 2007, and the      Company increased the estimated liability for paid time off by $20,000 in      2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Office      expense increased 37% to $259,306 from $188,888 in 2007.  The      increase is attributed to increases in offices supplies, telephone and      information technology expenses. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Occupancy      expense increased 11% to $230,218 from $206,502 in 2007.  The      increase is due to the increase in utility  expenses. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 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. |
|--------|------------------------|

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