----

----

| [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) |   |   |   |   |
|                                                                                                              |   | September    30, |   |   | December31, |   |
|                                                                                                              |   | 2008 |   |   | 2007 |   |
|                                                                                                              |   |   |   |   |   |   |
| ASSETS                                                                                                            |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |
| Current    Assets:                                                                                                |   |   |   |   |   |   |
|    Cash                                                                                            |   | $ | 29,934 |   |   | $ | 93,535 |   |
|    Accounts      receivable (net of allowance for doubtful accounts    of                          |   |   |   |   |   |   |   |   |
|       approximately      $371,000 and $261,000, respectively)                       |   |   | 10,212,463 |   |   |   | 8,355,280 |   |
|    Costs on      uncompleted projects applicable to future billings                                |   |   | 914,950 |   |   |   | 2,188,514 |   |
|    Inventory                                                                                       |   |   | 468,399 |   |   |   | 402,351 |   |
|    Current portion      of deferred tax asset                                                      |   |   | 301,900 |   |   |   | 301,900 |   |
|    Prepaid expenses      and other current assets, net                                             |   |   | 545,541 |   |   |   | 503,858 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Current Assets                       |   |   | 12,473,187 |   |   |   | 11,845,438 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Property and equipment,      net                                                                                  |   |   | 3,093,520 |   |   |   | 3,266,973 |   |
| Deferred tax      asset                                                                                           |   |   | 877,900 |   |   |   | 1,127,700 |   |
| Otherassets                                                                                                       |   |   | 13,961 |   |   |   | 13,961 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Assets                               |   | $ | 16,458,568 |   |   | $ | 16,254,072 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS'      EQUITY                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Current      Liabilities:                                                                                         |   |   |   |   |   |   |   |   |
|    Accounts      payable                                                                           |   | $ | 3,480,552 |   |   | $ | 2,598,756 |   |
|    Outstanding      checks in excess of bank balance                                               |   |   | 538,300 |   |   |   | 592,757 |   |
|    Billings in      excess of costs and estimated profit                                           |   |   |   |   |   |   |   |   |
|       on      uncompleted projects                                                  |   |   | 588,355 |   |   |   | 1,369,899 |   |
|    Accrued expenses      and other current liabilities                                             |   |   | 1,219,845 |   |   |   | 957,625 |   |
|    Accrued      litigation defense reserve                                                         |   |   | 301,687 |   |   |   | 345,645 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|    Current portion      of long-term debt                                                          |   |   | 965,024 |   |   |   | 840,602 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Current Liabilities                  |   |   | 7,093,763 |   |   |   | 6,705,284 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Long-term debt, net of current      portion                                                                       |   |   | 1,427,834 |   |   |   | 1,871,745 |   |
| Note payable to bank under line of      credit                                                                    |   |   | 4,759,634 |   |   |   | 4,862,207 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Liabilities                          |   |   | 13,281,231 |   |   |   | 13,439,236 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Shareholders'      Equity:                                                                                        |   |   |   |   |   |   |   |   |
|    Common stock,      par value $.01 per share; authorized 20,000,000                              |   |   |   |   |   |   |   |   |
|       shares;      11,940,372 and 11,937,038 shares issued and    outstanding       |   |   |   |   |   |   |   |   |
|       as      of September 30, 2008 and December 31, 2007,      respectively        |   |   | 119,404 |   |   |   | 119,371 |   |
|    Additional      paid-in capital                                                                 |   |   | 7,005,891 |   |   |   | 7,005,724 |   |
|    Accumulated      deficit                                                                        |   |   | (3,932,333 | ) |   |   | (4,304,059 | ) |
|    Accumulated      other comprehensive income                                                     |   |   | (15,625 | ) |   |   | (6,200 | ) |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Shareholders' Equity                 |   |   | 3,177,337 |   |   |   | 2,814,836 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Liabilities and Shareholders' Equity |   | $ | 16,458,568 |   |   | $ | 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 |   |   | NINE      MONTHS ENDED |   |
|                                                                                          |   | September    30, |   |   | September    30, |   |   | September    30, |   |   | September    30, |   |
|                                                                                          |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Project    revenue                                                                            |   | $ | 10,606,146 |   |   | $ | 8,109,003 |   |   | $ | 25,354,684 |   |   | $ | 24,559,953 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Project    costs                                                                              |   |   | 8,103,340 |   |   |   | 5,682,425 |   |   |   | 18,482,076 |   |   |   | 18,547,266 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grossmargin                                                                                   |   |   | 2,502,806 |   |   |   | 2,426,578 |   |   |   | 6,872,608 |   |   |   | 6,012,687 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Payroll      expense and related payroll taxes and benefits           |   |   | 838,795 |   |   |   | 977,172 |   |   |   | 2,625,364 |   |   |   | 2,714,004 |   |
|     Office      Expense                                                   |   |   | 220,746 |   |   |   | 182,699 |   |   |   | 681,317 |   |   |   | 648,329 |   |
|     Occupancy                                                             |   |   | 182,656 |   |   |   | 178,829 |   |   |   | 608,782 |   |   |   | 573,550 |   |
|     Business      Insurance                                               |   |   | 121,362 |   |   |   | 163,570 |   |   |   | 376,085 |   |   |   | 489,944 |   |
|     Professional      Services                                            |   |   | 194,687 |   |   |   | 149,090 |   |   |   | 533,685 |   |   |   | 441,251 |   |
|     Equipment      Expenses, net of usage credit                          |   |   | 255,758 |   |   |   | 253,174 |   |   |   | 733,637 |   |   |   | 684,466 |   |
|     Other      expenses                                                   |   |   | 200,179 |   |   |   | 131,772 |   |   |   | 339,733 |   |   |   | 427,210 |   |
|                                                                                          |   |   | 2,014,183 |   |   |   | 2,036,306 |   |   |   | 5,898,603 |   |   |   | 5,978,754 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                                                         |   |   | 488,623 |   |   |   | 390,272 |   |   |   | 974,005 |   |   |   | 33,933 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income and      (expense):                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      expense                                                       |   |   | (114,233 | ) |   |   | (145,784 | ) |   |   | (358,430 |   |   |   | (504,713 | ) |
|    Other,      net                                                             |   |   | 1,798 |   |   |   | 817 |   |   |   | 12,210 |   |   |   | 1,552 |   |
|                                                                                          |   |   | (112,435 | ) |   |   | (144,967 | ) |   |   | (346,220 |   |   |   | (503,161 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) before income      taxes                                                    |   |   | 376,188 |   |   |   | 245,305 |   |   |   | 627,785 |   |   |   | (469,228 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit      (expense)                                                             |   |   | (152,845 | ) |   |   | (98,100 | ) |   |   | (256,059 |   |   |   | 188,300 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income      (loss)                                                                        |   | $ | 223,343 |   |   | $ | 147,205 |   |   | $ | 371,726 |   |   | $ | (280,928 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common      share:                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                                                 |   | $ | 0.02 |   |   | $ | 0.01 |   |   | $ | 0.03 |   |   | $ | (0.02 | ) |
|     Diluted                                                               |   | $ | 0.02 |   |   | $ | 0.01 |   |   | $ | 0.03 |   |   | $ | (0.02 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares      outstanding:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                                                 |   |   | 11,937,595 |   |   |   | 11,860,650 |   |   |   | 11,938,150 |   |   |   | 11,911,576 |   |
|     Diluted                                                               |   |   | 12,294,199 |   |   |   | 12,321,642 |   |   |   | 12,290,907 |   |   |   | 12,477,012 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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)                                                                                                                                                                              |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                                                                     |   | NINE MONTHS      ENDED |   |
|                                                                                                                                                                                     |   | September    30, |   |   | September    30, |   |
|                                                                                                                                                                                     |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |
| Operating      activities:                                                                                                                                                               |   |   |   |   |   |   |
|    Net income      (loss)                                                                                                                                                 |   | $ | 371,726 |   |   | $ | (280,928 | ) |
|    Adjustments to      reconcile net loss to net cash                                                                                                                     |   |   |   |   |   |   |   |   |
|       provided      by operating activities:                                                                                                               |   |   |   |   |   |   |   |   |
|          Bad      Debt expense                                                                                                              |   |   | 158,181 |   |   |   | 228,089 |   |
|          Depreciation      and amortization                                                                                                 |   |   | 531,523 |   |   |   | 563,412 |   |
|          Stock      Compensation                                                                                                            |   |   | 167 |   |   |   | 51,221 |   |
|          Provision      for deferred income taxes                                                                                           |   |   | 249,800 |   |   |   | (188,300 | ) |
|          (Increase)      decrease in operating assets and                                                                                   |   |   |   |   |   |   |   |   |
|             increase      (decrease) in operating liabilities:                                                               |   |   |   |   |   |   |   |   |
|                Accounts      receivable                                                                       |   |   | (2,015,365 | ) |   |   | 2,436,177 |   |
|                Costs      on uncompleted projects applicable to                                               |   |   |   |   |   |   |   |   |
|                    future      billings                                                   |   |   | 1,273,564 |   |   |   | 1,127,963 |   |
|                Billings      and estimated profit in excess of costs                                          |   |   |   |   |   |   |   |   |
|                   on      uncompleted contracts                                                |   |   | (781,544 | ) |   |   | 198,298 |   |
|                Prepaid      expenses, inventory and other assets                                              |   |   | (107,731 | ) |   |   | 480,722 |   |
|                Accrued      litigation defense reserve                                                        |   |   | (43,958 | ) |   |   | (42,003 | ) |
|                Accounts      payable and accrued expenses                                                     |   |   | 1,144,016 |   |   |   | (1,968,213 | ) |
|                        Net      cash provided by operating activities |   |   | 780,378 |   |   |   | 2,606,438 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Investing      activities:                                                                                                                                                               |   |   |   |   |   |   |   |   |
|    Purchase of      property and equipment                                                                                                                                |   |   | (358,068 | ) |   |   | (749,856 | ) |
|                       Net      cash used in investing activities           |   |   | (358,068 | ) |   |   | (749,856 | ) |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Financing      activities:                                                                                                                                                               |   |   |   |   |   |   |   |   |
|    Proceeds from issuance of common      stock                                                                                                                            |   |   | 33 |   |   |   | 16,500 |   |
|    Outstanding checks in excess of      bank balance                                                                                                                      |   |   | (54,457 | ) |   |   | (149,741 | ) |
|    Proceeds from      note payable to bank and current                                                                                                                    |   |   |   |   |   |   |   |   |
|       and      long-term borrowings, net of financing costs                                                                                                |   |   | 10,327,462 |   |   |   | 11,429,813 |   |
|    Principal      payments on current and long-term borrowings                                                                                                            |   |   | (10,758,950 | ) |   |   | (13,115,478 | ) |
|                      Net      cash used in financing activities                 |   |   | (485,911 | ) |   |   | (1,818,907 | ) |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Increase (decrease) in      cash                                                                                                                                                         |   |   | (63,601 | ) |   |   | 37,675 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Cash at beginning of      period                                                                                                                                                         |   |   | 93,535 |   |   |   | 30,981 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Cash at end of      period                                                                                                                                                               |   | $ | 29,934 |   |   | $ | 68,656 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Non-cash    item                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    Non-cash      financing of insurance                                                                                                                                   |   | $ | 566,043 |   |   | $ | 663,266 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| The accompanying notes are an      integral part of the consolidated financial    statements.                                                                                            |   |

----

----

----

| ·   | Payroll      and payroll related expense decreasing 14% to $838,795 from $977,172      attributed to reductions in worker’s compensation and employee benefit      costs, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business      insurance expense decreasing 26% to $121,362 from $163,570 due to a      reduction in business insurance rates reducing overall premiums in 2008      with similar coverage, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other      expenses increasing 52% to $200,179 from $131,772 as a result of an      increase in the bad debt expense in the third quarter of 2008 due to the      increase in accounts receivable. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

----

----

----