UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


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

                  For the quarterly period ended March 3, 2001
                                                --------------

                                       OR

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

              For the transition period from __________to__________


                         Commission file number 1-11479
                                                -------


                                  E-Z-EM, Inc.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                   Delaware                           11-1999504
         -------------------------------          -------------------
         (State or other jurisdiction of           (I.R.S. Employer
          incorporation or organization)          Identification No.)


                    717 Main Street, Westbury, New York 11590
               ---------------------------------------------------
               (Address of principal executive offices) (Zip Code)


                                 (516) 333-8230
               --------------------------------------------------
               Registrant's telephone number, including area code


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

                                    Yes  X       No
                                        -----       -----

As of April 10, 2001, there were 4,011,827 shares of the issuer's Class A Common
Stock  outstanding  and  5,845,183  shares of the issuer's  Class B Common Stock
outstanding.


                                       -1-
<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                                      INDEX
                                      -----


Part I:  Financial Information                                            Page
------   ---------------------                                            ----

    Item 1.  Financial Statements


       Consolidated Balance Sheets - March 3, 2001 and
          June 3, 2000                                                   3 - 4


       Consolidated Statements of Earnings - thirteen and
          thirty-nine weeks ended March 3, 2001 and
          February 26, 2000                                                5


       Consolidated Statement of Stockholders' Equity and
          Comprehensive Income - thirty-nine weeks ended
          March 3, 2001                                                    6


       Consolidated Statements of Cash Flows - thirty-nine weeks
          ended March 3, 2001 and February 26, 2000                      7 - 8


       Notes to Consolidated Financial Statements                        9 - 14


    Item 2.  Management's Discussion and Analysis of Financial
                Condition and Results of Operations                     15 - 20


    Item 3.  Quantitative and Qualitative Disclosures About
                Market Risk                                             20 - 21


Part II:  Other Information
-------   -----------------

    Item 6.  Exhibits and Reports on Form 8-K                                22


                                       -2-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                           CONSOLIDATED BALANCE SHEETS
                                 (in thousands)


                                                         March 3,   June 3,
              ASSETS                                      2001       2000
                                                         -------    -------
                                                       (unaudited)  (audited)

     CURRENT ASSETS
         Cash and cash equivalents                       $ 3,271    $ 5,583
         Debt and equity securities                       13,714      8,051
         Accounts receivable, principally
            trade, net                                    22,240     22,256
         Inventories                                      24,777     26,856
         Other current assets                              6,134      4,530
                                                          ------     ------

               Total current assets                       70,136     67,276

     PROPERTY, PLANT AND EQUIPMENT - AT COST,
         less accumulated depreciation and
         amortization                                     19,792     21,721

     COST IN EXCESS OF FAIR VALUE OF NET ASSETS
         ACQUIRED, less accumulated amortization             377        407

     INTANGIBLE ASSETS, less accumulated
         amortization                                      1,359      2,151

     DEBT AND EQUITY SECURITIES                            1,356      4,067

     OTHER ASSETS                                          5,586      3,463
                                                          ------     ------

                                                         $98,606    $99,085
                                                          ======     ======


The accompanying notes are an integral part of these statements.

                                       -3-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                           CONSOLIDATED BALANCE SHEETS
                 (in thousands, except share and per share data)


<TABLE>
<CAPTION>
                                                                                        March 3,    June 3,
    LIABILITIES AND STOCKHOLDERS' EQUITY                                                  2001        2000
                                                                                        --------    --------
                                                                                      (unaudited)   (audited)
<S>                                                                                     <C>         <C>
     CURRENT LIABILITIES
         Notes payable                                                                  $  1,069    $  1,080
         Current maturities of long-term debt                                                 91         103
         Accounts payable                                                                  7,008       6,384
         Accrued liabilities                                                               6,702       7,798
         Accrued income taxes                                                                140         477
                                                                                         -------     -------

               Total current liabilities                                                  15,010      15,842

     LONG-TERM DEBT, less current maturities                                                 345         453

     OTHER NONCURRENT LIABILITIES                                                          2,665       2,756
                                                                                         -------     -------

               Total liabilities                                                          18,020      19,051
                                                                                         -------     -------

     COMMITMENTS AND CONTINGENCIES

     STOCKHOLDERS' EQUITY
         Preferred stock, par value $.10 per
            share - authorized, 1,000,000 shares;
            issued, none
         Common stock
            Class A (voting), par value $.10 per share - authorized, 6,000,000
               shares; issued and outstanding 4,012,033 shares at March 3, 2001 and
               4,015,111 shares at June 3, 2000 (excluding 41,223 and 38,145 shares
               held in treasury at March
               3, 2001 and June 3, 2000, respectively)                                       401         401
            Class B (non-voting), par value $.10 per
               share - authorized, 10,000,000 shares; issued and outstanding
               5,851,522 shares at March 3, 2001 and 5,909,277 shares at June 3, 2000
               (excluding 387,155 and 313,748 shares held in treasury at March
               3, 2001 and June 3, 2000, respectively)                                       585         591
         Additional paid-in capital                                                       20,107      20,521
         Retained earnings                                                                62,661      59,852
         Accumulated other comprehensive income (loss)                                    (3,168)     (1,331)
                                                                                         -------     -------

               Total stockholders' equity                                                 80,586      80,034
                                                                                         -------     -------

                                                                                        $ 98,606    $ 99,085
                                                                                         =======     =======
</TABLE>


The accompanying notes are an integral part of these statements.

                                       -4-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                       CONSOLIDATED STATEMENTS OF EARNINGS
                                   (unaudited)
                      (in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                   Thirteen weeks ended                Thirty-nine weeks ended
                                                                -----------------------------       -----------------------------
                                                                 March 3,        February 26,       March 3,         February 26,
                                                                  2001              2000              2001              2000
                                                                --------          --------          --------          --------
<S>                                                             <C>               <C>               <C>               <C>
     Net sales                                                  $ 27,386          $ 25,752          $ 80,951          $ 80,922

     Cost of goods sold                                           16,609            14,647            46,029            44,500
                                                                 -------           -------           -------           -------

           Gross profit                                           10,777            11,105            34,922            36,422
                                                                 -------           -------           -------           -------

     Operating expenses
       Selling and administrative                                  9,453             8,971            28,254            26,640
       Loss on sale of subsidiary
         and related assets                                                                              872
       Research and development                                    1,349             1,190             4,010             3,562
                                                                 -------           -------           -------           -------

         Total operating expenses                                 10,802            10,161            33,136            30,202
                                                                 -------           -------           -------           -------

           Operating profit (loss)                                   (25)              944             1,786             6,220

     Other income (expense)
       Interest income                                               215               243               671               534
       Interest expense                                              (75)              (61)             (213)             (180)
       Other, net                                                     82               (26)              107                36
                                                                 -------           -------           -------           -------

           Earnings before income
             taxes                                                   197             1,100             2,351             6,610

     Income tax provision (benefit)                                   91               584              (458)            2,479
                                                                 -------           -------           -------           -------

           NET EARNINGS                                         $    106          $    516          $  2,809          $  4,131
                                                                 =======           =======           =======           =======

     Earnings per common share
       Basic                                                    $    .01          $    .05          $    .28          $    .41
                                                                 =======           =======           =======           =======

       Diluted                                                  $    .01          $    .05          $    .28          $    .40
                                                                 =======           =======           =======           =======

     Weighted average common shares
       Basic                                                       9,875             9,988             9,889            10,045
                                                                 =======           =======           =======           =======

       Diluted                                                    10,119            10,410            10,185            10,285
                                                                 =======           =======           =======           =======
</TABLE>


The accompanying notes are an integral part of these statements.

                                       -5-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

     CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME

                      Thirty-nine weeks ended March 3, 2001
                                   (unaudited)
                        (in thousands, except share data)


<TABLE>
<CAPTION>

                                     Class A            Class B                              Accumulated
                                   common stock       common stock    Additional                other               Compre-
                                -----------------  -----------------   paid-in    Retained  comprehensive           hensive
                                  Shares   Amount    Shares   Amount   capital    earnings  income (loss)   Total   income
                                ---------  ------  ---------  ------  ----------  --------  -------------  -------  -------
<S>                             <C>         <C>    <C>         <C>     <C>        <C>         <C>          <C>       <C>
Balance at June 3, 2000         4,015,111   $401   5,909,277   $591    $20,521    $59,852     $(1,331)     $80,034

Exercise of stock options                              8,711      1         38                                  39
Income tax benefits on
  stock options exercised                                                    3                                   3
Compensation related to
  stock option plans                                                         4                                   4
Issuance of stock                                      6,941      1         45                                  46
Purchase of treasury stock         (3,078)           (73,407)    (8)      (504)                               (512)
Net earnings                                                                        2,809                    2,809   $2,809
Unrealized holding loss on debt
  and equity securities                                                                        (2,207)      (2,207)  (2,207)
Foreign currency translation
  adjustments                                                                                     370          370      370
                                ---------    ---   ---------    ---     ------     ------       -----       ------    -----

Comprehensive income                                                                                                 $  972
                                                                                                                      =====
Balance at March 3, 2001        4,012,033   $401   5,851,522   $585    $20,107    $62,661     $(3,168)     $80,586
                                =========    ===   =========    ===     ======     ======      ======       ======
</TABLE>


The accompanying notes are an integral part of this statement.

                                       -6-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                 (in thousands)


                                                      Thirty-nine weeks ended
                                                      -----------------------
                                                       March 3,  February 26,
                                                         2001        2000
                                                       --------    --------
     Cash flows from operating activities:
       Net earnings                                    $  2,809    $  4,131
       Adjustments to reconcile net earnings
         to net cash provided by operating
         activities
           Depreciation and amortization                  2,080       2,169
           Impairment of long-lived assets                  450
           Provision for doubtful accounts                   88          91
           Loss on sale of subsidiary and
             related assets                                 872
           Deferred income tax (benefit) provision       (1,712)         37
           Other non-cash items                              45          74
           Changes in operating assets and
             liabilities, net of sale
               Accounts receivable                         (297)      2,958
               Inventories                                  799      (1,542)
               Other current assets                      (1,344)     (1,037)
               Other assets                                (420)       (440)
               Accounts payable                             983      (1,820)
               Accrued liabilities                       (1,048)        (57)
               Accrued income taxes                        (356)       (432)
               Other noncurrent liabilities                 147         114
                                                       --------    --------

                 Net cash provided by operating
                   activities                             3,096       4,246
                                                       --------    --------

     Cash flows from investing activities:
       Additions to property, plant and
         equipment, net                                  (2,117)     (2,021)
       Proceeds from sale of subsidiary and
         related assets                                   3,250
       Available-for-sale securities
         Purchases                                      (69,823)    (22,339)
         Proceeds from sale                              64,160      18,635
                                                       --------    --------

           Net cash used in investing activities         (4,530)     (5,725)
                                                       --------    --------

     Cash flows from financing activities:
       Repayments of debt                                  (196)     (1,044)
       Proceeds from issuance of debt                       216          26
       Proceeds from exercise of stock options,
         including related income tax benefits               42         781
       Purchase of treasury stock                          (512)     (2,381)
       Proceeds from issuance of stock in connection
         with the stock purchase plan                         5           6
                                                       --------    --------

           Net cash used in financing activities           (445)     (2,612)
                                                       --------    --------


                                       -7-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
                                   (unaudited)
                                 (in thousands)

                                                         Thirty-nine weeks ended
                                                         -----------------------
                                                          March 3,  February 26,
                                                            2001       2000
                                                          -------    -------

     Effect of exchange rate changes on
       cash and cash equivalents                          $  (433)   $   105
                                                           ------     ------

           DECREASE IN CASH AND CASH
             EQUIVALENTS                                   (2,312)    (3,986)

     Cash and cash equivalents
       Beginning of period                                  5,583      8,073
                                                           ------     ------

       End of period                                      $ 3,271    $ 4,087
                                                           ======     ======

     Supplemental disclosures of cash flow information:
         Cash paid during the period for:
           Interest                                       $    79    $    75
                                                           ======     ======

           Income taxes (net of refunds of $7 and $6 in
             2001 and 2000, respectively)                 $ 2,395    $ 3,044
                                                           ======     ======


The accompanying notes are an integral part of these statements.

                                      -8-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                       March 3, 2001 and February 26, 2000
                                   (unaudited)


NOTE A - CONSOLIDATED FINANCIAL STATEMENTS

     The  consolidated  balance  sheet  as of March  3,  2001  the  consolidated
     statement of stockholders'  equity and comprehensive  income for the period
     ended March 3, 2001, and the  consolidated  statements of earnings and cash
     flows for the periods ended March 3, 2001 and February 26, 2000,  have been
     prepared by the Company without audit. The consolidated balance sheet as of
     June 3, 2000 was derived from audited consolidated financial statements. In
     the opinion of  management,  all  adjustments  (which include only normally
     recurring  adjustments) necessary to present fairly the financial position,
     changes  in  stockholders'  equity  and  comprehensive  income,  results of
     operations and cash flows at March 3, 2001 (and for all periods  presented)
     have been made.

     Certain  information  and  footnote   disclosures,   normally  included  in
     financial   statements  prepared  in  accordance  with  generally  accepted
     accounting principles, have been condensed or omitted. It is suggested that
     these  consolidated  financial  statements be read in conjunction  with the
     financial  statements and notes thereto  included in the fiscal 2000 Annual
     Report on Form 10-K filed by the Company on September 1, 2000.  The results
     of operations for the periods ended March 3, 2001 and February 26, 2000 are
     not necessarily indicative of the operating results for the respective full
     years.

     The consolidated  financial statements include the accounts of E-Z-EM, Inc.
     and  all  100%-owned   subsidiaries   (the   "Company").   All  significant
     intercompany balances and transactions have been eliminated.


NOTE B - EARNINGS PER COMMON SHARE

     Basic earnings per share are based on the weighted average number of common
     shares outstanding without consideration of potential common stock. Diluted
     earnings per share are based on the weighted  average  number of common and
     potential common shares outstanding. The calculation takes into account the
     shares that may be issued upon  exercise of stock  options,  reduced by the
     shares that may be  repurchased  with the funds received from the exercise,
     based on the average price during the period.

     The following table sets forth the  reconciliation  of the weighted average
     number of common shares:

                               Thirteen weeks ended     Thirty-nine weeks ended
                              ----------------------    -----------------------
                               March 3,  February 26,   March 3,   February 26,
                                2001        2000          2001         2000
                               ------      ------        ------       ------
                                              (in thousands)

     Basic                      9,875       9,988         9,889       10,045
     Effect of dilutive
       securities (stock
       options)                   244         422           296          240
                               ------      ------        ------       ------

     Diluted                   10,119      10,410        10,185       10,285
                               ======      ======        ======       ======



                                       -9-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

                       March 3, 2001 and February 26, 2000
                                   (unaudited)


NOTE B - EARNINGS PER COMMON SHARE (continued)

     Excluded from the calculation of earnings per common share,  are options to
     purchase  462,915 and 206,707  shares of common  stock at March 3, 2001 and
     February 26, 2000, respectively, as their inclusion would be anti-dilutive.


NOTE C - EFFECTS OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

     In June 1998, the Financial  Accounting Standards Board issued Statement of
     Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
     Instruments and Hedging  Activities,"  which requires entities to recognize
     all  derivatives  in  their  financial   statements  as  either  assets  or
     liabilities measured at fair value. SFAS No. 133 also specifies new methods
     of  accounting   for  hedging   transactions,   prescribes  the  items  and
     transactions  that may be hedged and specifies  detailed criteria to be met
     to qualify for hedge accounting.  SFAS No. 133, as amended by SFAS No. 138,
     is effective for fiscal years  beginning  after June 15, 2000.  The Company
     currently does not use  derivative  instruments as defined by SFAS No. 133.
     If the Company  continues not to use these  derivative  instruments  by the
     effective  date of SFAS No. 133,  the adoption of this  pronouncement  will
     have  no  effect  on the  Company's  results  of  operations  or  financial
     position.

     In December  1999,  the  Securities  and Exchange  Commission  issued Staff
     Accounting Bulletin ("SAB") No. 101 "Revenue  Recognition",  which provides
     guidelines in applying generally accepted accounting principles to selected
     revenue  recognition  issues. The SAB is effective in the fourth quarter of
     fiscal years  beginning  after December 15, 1999. The Company  continues to
     evaluate the impact of SAB 101, but believes it is in  compliance  with the
     provisions of the SAB, and, accordingly,  does not expect this statement to
     have a material impact on the Company's  results of operations or financial
     position.

     In October 2000, the Emerging Issues Task Force ("EITF") issued guidance on
     how to  classify  certain  revenues  and  costs  in a  company's  financial
     statements.  EITF No. 00-10  "Accounting for Shipping and Handling Revenues
     and Costs" requires that companies classify all amounts billed to customers
     related to shipping and handling cost as revenue.  This  statement  will be
     effective in the fourth  quarter of fiscal years  beginning  after December
     15, 1999 and is not expected to have any effect on the Company's results of
     operations or financial position.


                                      -10-

<PAGE>

                          E-Z-EM, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

                       March 3, 2001 and February 26, 2000
                                   (unaudited)


NOTE D - COMPREHENSIVE INCOME

     The components of comprehensive income, net of related tax, are as follows:

                                                      Thirty-nine weeks ended
                                                      -----------------------
                                                       March 3,  February 26,
                                                         2001       2000
                                                       -------    -------
                                                         (in thousands)

        Net earnings                                   $ 2,809    $ 4,131
        Unrealized holding gain (loss) on
          debt and equity securities                    (2,207)     2,979
        Foreign currency translation
          adjustments                                      370        (85)
                                                        ------     ------

            Comprehensive income                       $   972    $ 7,025
                                                        ======     ======

     The components of accumulated other comprehensive income (loss), net of
     related tax, are as follows:

                                                        March 3,   June 3,
                                                          2001       2000
                                                        -------    -------
                                                          (in thousands)

        Unrealized holding gain (loss) on debt
          and equity securities                         $  (143)   $ 2,064
        Cumulative translation adjustments               (3,025)    (3,395)
                                                         ------     ------

            Accumulated other comprehensive income
              (loss)                                    $(3,168)   $(1,331)
                                                         ======     ======


                                      -11-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                       March 3, 2001 and February 26, 2000
                                   (unaudited)


NOTE E - SALE OF SUBSIDIARY AND RELATED ASSETS

     On July 27, 2000,  AngioDynamics,  Inc. entered into two agreements to sell
     all the capital stock of AngioDynamics Ltd., a wholly-owned subsidiary, and
     certain  other assets to  AngioDynamics  Ltd.'s  management.  AngioDynamics
     Ltd.,  located in Ireland,  manufactured  cardiovascular and interventional
     radiology  products.  The aggregate  consideration  paid was  $3,250,000 in
     cash. The sale was the culmination of AngioDynamics'  strategic decision to
     exit the cardiovascular  market and to focus entirely on the interventional
     radiology  marketplace.  As a result of this sale, the Company recognized a
     pre-tax loss of  approximately  $872,000 during the quarter ended September
     2, 2000. The aforementioned  pre-tax loss includes the effect of previously
     unrealized losses on foreign currency translation of approximately $994,000
     and the write-off of  approximately  $673,000 in inventory and  intangibles
     related to the  cardiovascular  product  line,  both of which were non-cash
     charges.  Further,  AngioDynamics entered into a manufacturing agreement, a
     distribution  agreement and a royalty  agreement with the buyer.  Under the
     two-year manufacturing  agreement,  the buyer will be manufacturing certain
     interventional radiology products sold by AngioDynamics.


NOTE F - ASSET IMPAIRMENT CHARGE

     In  accordance  with  SFAS  No.  121,  "Accounting  for the  Impairment  of
     Long-Lived  Assets  and for  Long-Lived  Assets  to be  Disposed  Of,"  the
     Company's Diagnostic operating segment recorded an impairment charge during
     the  quarter  ended  September  2, 2000 of  $450,000  relating  to  certain
     acquired  patent  rights to an oral  magnetic  resonance  imaging  contrast
     agent. The Company determined that the revenue potential of this technology
     was impaired,  since it now believes that the market for this technology is
     significantly  less  than  previously  projected.   The  impairment  charge
     represents  the  difference  between the carrying  value of the  intangible
     asset and the fair  market  value of this asset based on  estimated  future
     discounted cash flows.  The charge had no impact on the Company's cash flow
     or its ability to generate cash flow in the future.  The impairment  charge
     is included in the  consolidated  statement  of earnings  under the caption
     "Selling and administrative".


NOTE G - INVENTORIES

    Inventories consist of the following:

                                                  March 3,  June 3,
                                                    2001      2000
                                                  -------   -------
                                                    (in thousands)

     Finished goods                               $12,414   $13,246
     Work in process                                1,992     2,813
     Raw materials                                 10,371    10,797
                                                   ------    ------

                                                  $24,777   $26,856
                                                   ======    ======


                                      -12-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                       March 3, 2001 and February 26, 2000
                                   (unaudited)


NOTE H - INCOME TAXES

     During the thirteen weeks ended  September 2, 2000, the Company reduced its
     valuation   allowance   primarily  to  recognize  deferred  tax  assets  of
     approximately  $1,344,000.  Continued and projected future profitability of
     the Company's U.S.  operations,  including those of AngioDynamics,  made it
     more likely than not that  certain  deferred  tax assets  would be realized
     through future taxable earnings.


NOTE I - COMMON STOCK

     Under the 1983 and 1984 Stock Option  Plans,  options for 8,711 shares were
     exercised  at prices  ranging  from $4.22 to $5.63 per share,  options  for
     25,215  shares were  forfeited  at prices  ranging  from $4.22 to $8.58 per
     share, and no options were granted or expired during the thirty-nine  weeks
     ended  March 3,  2001.  Under the 1997  AngioDynamics  Stock  Option  Plan,
     options for .06 shares were granted at $40,000 per share,  options for 5.06
     shares were  forfeited at $40,000 per share,  and no options were exercised
     or expired during the thirty- nine weeks ended March 3, 2001.

     In January 1999, the Board of Directors  authorized the repurchase of up to
     500,000  shares  of the  Company's  Class B Common  Stock  at an  aggregate
     purchase price of up to $2,000,000. In October 1999, the Board modified the
     program to include the Company's  Class A Common Stock.  In February  2000,
     the Board further  modified the program to increase the aggregate  purchase
     price of Class A and Class B Common Stock by an additional  $2,000,000.  As
     of March 3, 2001,  the Company  had  repurchased  41,223  shares of Class A
     Common Stock and 387,155  shares of Class B Common Stock for  approximately
     $3,014,000.


NOTE J - OPERATING SEGMENTS

     The  Company is  engaged  in the  manufacture  and  distribution  of a wide
     variety of  products  which are  classified  into two  operating  segments:
     Diagnostic  products  and  AngioDynamics   products.   Diagnostic  products
     encompass both contrast systems,  consisting of barium sulfate formulations
     and related medical devices used in X-ray, CT-scanning,  ultrasound and MRI
     imaging  examinations,  and non-contrast  systems,  including  radiological
     medical   devices,   custom  contract   pharmaceuticals,   gastrointestinal
     cleansing  laxatives,  X-ray protection  equipment,  and immunoassay tests.
     AngioDynamics  products include  angiographic,  thrombolytic,  image-guided
     vascular access, angioplasty,  stents, and drainage medical devices used in
     the interventional radiology marketplace.


                                      -13-

<PAGE>

                          E-Z-EM, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

                       March 3, 2001 and February 26, 2000
                                   (unaudited)


NOTE J - OPERATING SEGMENTS (continued)

     The Company's chief operating decision maker utilizes operating segment net
     earnings  (loss)  information in assessing  performance  and making overall
     operating  decisions  and  resource  allocations.   Information  about  the
     Company's segments is as follows:

<TABLE>
<CAPTION>
                                                                  Thirteen weeks ended                Thirty-nine weeks ended
                                                             -----------------------------         -----------------------------
                                                             March 3,          February 26,        March 3,         February 26,
                                                               2001               2000               2001               2000
                                                             --------           --------           --------           --------
                                                                                     (in thousands)
<S>                                                          <C>                <C>                <C>                <C>
     Net sales to external
     customers
       Diagnostic products
         Contrast systems                                    $ 14,246           $ 14,044           $ 45,158           $ 47,249
         Non-contrast systems                                   7,892              6,806             19,910             19,904
                                                              -------            -------            -------            -------

         Total Diagnostic products                             22,138             20,850             65,068             67,153
       AngioDynamics products                                   5,248              4,902             15,883             13,769
                                                              -------            -------            -------            -------

     Total net sales to external
     customers                                               $ 27,386           $ 25,752           $ 80,951           $ 80,922
                                                              =======            =======            =======            =======

     Intersegment net sales
       Diagnostic products                                   $   --             $   --             $      1           $      2
       AngioDynamics products                                     189                494                541                819
                                                              -------            -------            -------            -------

     Total intersegment net sales                            $    189           $    494           $    542           $    821
                                                              =======            =======            =======            =======

     Operating profit (loss)
       Diagnostic products                                   $    (57)          $    959           $  2,057           $  7,015
       AngioDynamics products                                      17                (22)              (217)              (838)
       Eliminations                                                15                  7                (54)                43
                                                              -------            -------            -------            -------

     Total operating profit (loss)                           $    (25)          $    944           $  1,786           $  6,220
                                                              =======            =======            =======            =======

     Net earnings (loss)
       Diagnostic products                                   $    261           $    805           $  2,287           $  5,442
       AngioDynamics products                                    (170)              (296)               576             (1,354)
       Eliminations                                                15                  7                (54)                43
                                                              -------            -------            -------            -------

     Total net earnings                                      $    106           $    516           $  2,809           $  4,131
                                                              =======            =======            =======            =======

<CAPTION>
                                                                                                    March 3,           June 3,
                                                                                                     2001               2000
                                                                                                   --------           --------
                                                                                                        (in thousands)
<S>                                                                                                <C>                <C>
     Assets
       Diagnostic products                                                                         $109,713           $111,046
       AngioDynamics products                                                                        16,607             17,573
       Eliminations                                                                                 (27,714)           (29,534)
                                                                                                    -------            -------

     Total assets                                                                                  $ 98,606           $ 99,085
                                                                                                    =======            =======
</TABLE>

                                      -14-
<PAGE>

                          E-Z-EM, Inc. and Subsidiaries

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


Quarters ended March 3, 2001 and February 26, 2000
--------------------------------------------------

     The  Company's  quarters  ended  March 3, 2001 and  February  26, 2000 both
represent thirteen weeks.

Results of Operations
---------------------

     Segment Overview
     ----------------

     The Company  operates in two  industry  segments:  Diagnostic  products and
AngioDynamics  products. The Diagnostic products operating segment includes both
contrast systems and non-contrast systems. The AngioDynamics  products operating
segment includes  angiographic  products,  thrombolytic  products,  image-guided
vascular access products,  angioplasty  products,  stents, and drainage products
used in the interventional radiology marketplace.

<TABLE>
<CAPTION>
                                     Diagnostic   AngioDynamics   Eliminations   Total
                                     ----------   -------------   ------------   -----
                                                     (in thousands)
<S>                                    <C>          <C>             <C>        <C>
Quarter ended March 3, 2001
---------------------------

      Unaffiliated customer sales      $22,138      $5,248            -        $27,386
      Intersegment sales                   -           189          ($189)         -
      Gross profit                       8,137       2,625             15       10,777
      Operating profit (loss)              (57)         17             15          (25)

Quarter ended February 26, 2000
-------------------------------

      Unaffiliated customer sales      $20,850      $4,902            -        $25,752
      Intersegment sales                   -           494          ($494)         -
      Gross profit                       8,513       2,585              7       11,105
      Operating profit (loss)              959         (22)             7          944
</TABLE>

     Diagnostic Products
     -------------------

     Diagnostic  segment  operating  results for the current quarter declined by
$1,016,000  due  primarily to decreased  gross  profit and  increased  operating
expenses.  Net sales  increased 6%, or $1,288,000,  due to increased  demand for
sales of both non-contrast systems,  primarily relating to custom contracts, and
contrast systems. Price increases had little effect on net sales for the current
quarter. Gross profit expressed as a percentage of net sales declined to 37% for
the current  quarter  from 41% for the  comparable  period of the prior year due
primarily to decreased  production  throughput and severance  costs of $315,000,
resulting from  operational  reorganizations.  Increased  operating  expenses of
$640,000  resulted  from the  expansion of the domestic  sales force,  increased
distribution  costs and increased  administrative  and research and  development
expenses.

     AngioDynamics Products
     ----------------------

     AngioDynamics segment operating results for the current quarter improved by
$39,000 due to increased  sales.  Net sales  increased 7%, or $346,000,  due, in
large part,  to  increased  sales of the  Workhorse(TM)  PTA balloon  catheters,
introduced in the second quarter of last fiscal year.  Gross profit expressed as
a  percentage  of net  sales  was 48%  for  both  the  current  quarter  and the
comparable quarter of the prior year.


                                      -15-
<PAGE>


     Consolidated Results of Operations
     ----------------------------------

     For the quarter ended March 3, 2001,  the Company  reported net earnings of
$106,000,  or $.01 per common share on both a basic and diluted basis,  compared
to net  earnings  of  $516,000,  or $.05 per  common  share on both a basic  and
diluted basis, for the comparable  period of last year.  Results for the current
quarter  were  adversely  affected  by  decreased  gross  profit  and  increased
operating expenses in the Diagnostic segment.

     Net sales of $27,386,000  for the quarter ended March 3, 2001 increased 6%,
or $1,634,000,  compared to the quarter ended February 26, 2000 due to increased
sales of  non-contrast  systems of $1,086,000,  including  $758,000  relating to
custom  contracts,  AngioDynamics  products of $346,000 and contrast  systems of
$202,000.  Price  increases  had  little  effect on net  sales  for the  current
quarter. Net sales in international  markets,  including direct exports from the
U.S.,  increased 9%, or $766,000,  for the current  quarter from the  comparable
period of last year due, almost entirely,  to increased custom contract sales of
$758,000.

     Gross profit  expressed as a percentage  of net sales  decreased to 39% for
the current quarter from 43% for the comparable quarter of the prior year due to
reduced gross profit in the Diagnostic segment.  The decline in Diagnostic gross
profit  expressed  as a percentage  of net sales was due  primarily to decreased
production   throughput  and  severance   costs  of  $315,000,   resulting  from
operational  reorganizations.  The Company's third fiscal quarters traditionally
have fewer production days than the other fiscal quarters, resulting in somewhat
lower gross profit percentages in such quarters.

     Selling and administrative ("S&A") expenses were $9,453,000 for the quarter
ended March 3, 2001  compared to $8,971,000  for the quarter ended  February 26,
2000.  This  increase  of  $482,000,  or 5%,  for the  current  quarter  was due
primarily to increased  Diagnostic S&A expenses of $421,000,  resulting from the
expansion  of  the  domestic  sales  force,  increased  distribution  costs  and
increased administrative expenses.

     Research and development ("R&D") expenditures increased 13% for the current
quarter to $1,349,000,  or 5% of net sales, from $1,190,000, or 5% of net sales,
for the comparable quarter of the prior year. This increase was due primarily to
a redeployment of staff from other  departments  within the Company,  as well as
severance costs of $90,000, resulting from operational  reorganizations.  Of the
R&D expenditures for the current quarter,  approximately  44% relate to contrast
systems,  26% to AngioDynamics  projects,  2% to immunological  projects,  7% to
other  projects  and 21% to  general  regulatory  costs.  R&D  expenditures  are
expected to continue at approximately current levels.

     Other income,  net of other  expenses,  totaled  $222,000 of income for the
current  quarter  compared to $156,000 of income for the quarter ended  February
26, 2000.  This increased  income was due to an improvement in foreign  currency
exchange gains and losses.

     For the quarter ended March 3, 2001,  the  Company's  effective tax rate of
46% differed  from the Federal  statutory  tax rate of 34% due  primarily to the
fact that the Company did not provide for the tax benefit on losses  incurred in
a foreign jurisdiction, since it is more likely than not that such benefits will
not be realized,  and  non-deductible  expenses,  partially offset by tax-exempt
interest  and  earnings of the  Company's  Puerto  Rican  subsidiary,  which are
subject to favorable U.S. tax treatment. The Company's effective tax rate of 53%
for the quarter ended February 26, 2000 differed from the Federal  statutory tax
rate of 34% due  primarily  to the fact that the Company did not provide for the
tax benefit on losses in certain foreign jurisdictions,  since, at that time, it
was more  likely  than not that  such  benefits  would not be  realized.  Losses
incurred in a foreign jurisdiction subject to lower tax rates and non-deductible
expenses

                                      -16-

<PAGE>

also  contributed  to the unusually  high effective tax rate, but were partially
offset by earnings of the Company's Puerto Rican  subsidiary,  which are subject
to favorable U.S. tax treatment.

Thirty-nine weeks ended March 3, 2001 and February 26, 2000
-----------------------------------------------------------

Results of Operations
---------------------

     Segment Overview
     ----------------

<TABLE>
<CAPTION>
                                                Diagnostic   AngioDynamics   Eliminations    Total
                                                ----------   -------------   ------------    -----
                                                                (in thousands)
<S>                                              <C>           <C>               <C>       <C>
Thirty-nine weeks ended March 3, 2001
-------------------------------------

      Unaffiliated customer sales                $65,068       $15,883            -        $80,951
      Intersegment sales                               1           541          ($542)         -
      Gross profit (loss)                         26,903         8,073            (54)      34,922
      Operating profit (loss)                      2,057          (217)           (54)       1,786

Thirty-nine weeks ended February 26, 2000
-----------------------------------------

      Unaffiliated customer sales                $67,153       $13,769            -        $80,922
      Intersegment sales                               2           819          ($821)         -
      Gross profit                                29,681         6,700             41       36,422
      Operating profit (loss)                      7,015          (838)            43        6,220
</TABLE>

     Diagnostic Products
     -------------------

     Diagnostic  segment  operating  results for the current period  declined by
$4,958,000  due  primarily  to decreased  sales and gross  profit and  increased
operating expenses.  Net sales decreased 3%, or $2,085,000,  due to lower demand
for sales of contrast systems. Price increases accounted for approximately 2% of
net sales for the current period.  Gross profit expressed as a percentage of net
sales declined to 41% for the current period from 44% for the comparable  period
of the prior year due primarily to decreased production throughput and severance
costs of $315,000, resulting from operational reorganizations,  partially offset
by the  effects  of sales  price  increases.  Increased  operating  expenses  of
$2,180,000 are  attributable  to: an impairment  charge of $450,000  relating to
acquired patent rights to an oral magnetic resonance imaging contrast agent; the
expansion  of the  domestic  sales  force;  increased  distribution  costs;  and
increased administrative and R&D expenses.

     AngioDynamics Products
     ----------------------

     AngioDynamics  segment  operating  results  for the current  period,  which
improved by $621,000, were adversely affected by the sale of AngioDynamics Ltd.,
a wholly-owned subsidiary, and certain other assets. AngioDynamics Ltd., located
in Ireland,  manufactured  cardiovascular and interventional radiology products.
The sale was the culmination of  AngioDynamics'  strategic  decision to exit the
cardiovascular  market and to focus  entirely  on the  interventional  radiology
marketplace.  As a result of this sale, the Company recognized a pre-tax loss of
approximately  $872,000 during the current period.  The  aforementioned  pre-tax
loss includes the effect of  previously  unrealized  losses on foreign  currency
translation  of  approximately  $994,000  and  the  write-off  of  approximately
$673,000 in inventory  and  intangibles  related to the  cardiovascular  product
line, both of which were non-cash charges.

     Excluding  the  loss  on  sale,  AngioDynamics  segment  operating  results
improved by $1,493,000  due to increased  sales and improved  gross profit.  Net
sales  increased 15%, or $2,114,000,  due, in large part, to increased  sales of
several products, namely Abscession(TM) fluid drainage catheters,  VistaFlex(TM)
platinum biliary stents, and Workhorse(TM) PTA balloon catheters,  introduced in
the

                                      -17-
<PAGE>

second  quarter of last fiscal year.  Gross profit  expressed as a percentage of
net sales  improved  to 49% for the current  period from 46% for the  comparable
period of the prior year due primarily to increased production throughput at the
Glens Falls facility and reduced  unabsorbed  overhead costs  resulting from the
sale of the Irish facility.

     Consolidated Results of Operations
     ----------------------------------

     For the  thirty-nine  weeks ended March 3, 2001,  the Company  reported net
earnings  of  $2,809,000,  or $.28 per common  share on both a basic and diluted
basis, compared to net earnings of $4,131,000, or $.41 and $.40 per common share
on a basic and diluted basis,  respectively,  for the comparable  period of last
year.  Results for the current period were adversely affected by decreased sales
and gross profit in the Diagnostic  segment and increased  operating expenses in
both industry segments.  The increased operating expenses,  totaling $2,934,000,
were due, in part, to the loss on sale of AngioDynamics  Ltd. and related assets
of $872,000 and the Diagnostic asset impairment charge of $450,000.  Results for
the  current  period were  favorably  affected  by the  Company's  reversal of a
portion of its income tax  valuation  allowance  against  certain  domestic  tax
benefits  totaling  $1,344,000,  since it is now more  likely than not that such
benefits will be realized.

     Net sales of  $80,951,000  for the  thirty-nine  weeks  ended March 3, 2001
increased  $29,000  compared to the  thirty-nine  weeks ended February 26, 2000.
Increased sales of AngioDynamics products of $2,114,000 and non-contrast systems
of $6,000 were almost entirely offset by decreased sales of contrast  systems of
$2,091,000.  Price increases accounted for approximately 1% of net sales for the
current period.  Net sales in  international  markets,  including direct exports
from the U.S.,  decreased  9%, or  $2,427,000,  for the current  period from the
comparable  period of last year due, in part, to decreased custom contract sales
of $849,000 and the continued  weakness of the Euro compared to the U.S. dollar,
as the Company's domestic operations bill export sales in U.S. dollars.

     Gross profit  expressed as a percentage  of net sales  decreased to 43% for
the current period from 45% for the  comparable  period of the prior year due to
reduced gross profit in the  Diagnostic  segment,  partially  offset by improved
gross  profit in the  AngioDynamics  segment.  The decline in  Diagnostic  gross
profit  expressed  as a percentage  of net sales was due  primarily to decreased
production   throughput  and  severance   costs  of  $315,000,   resulting  from
operational  reorganizations,  partially  offset by the  effects of sales  price
increases.  The improved AngioDynamics gross profit expressed as a percentage of
net sales was due  primarily to  increased  production  throughput  at the Glens
Falls facility and reduced unabsorbed  overhead costs resulting from the sale of
the Irish facility.

     S&A expenses were $28,254,000 for the thirty-nine weeks ended March 3, 2001
compared to $26,640,000 for the thirty-nine  weeks ended February 26, 2000. This
increase  of  $1,614,000,  or 6%, for the  current  period was due to  increased
Diagnostic S&A expenses, resulting from the asset impairment charge of $450,000,
the expansion of the domestic sales force,  increased  distribution  costs,  and
increased administrative expenses.

     R&D expenditures increased 13% for the current period to $4,010,000,  or 5%
of net sales, from $3,562,000, or 4% of net sales, for the comparable prior year
period.  This increase was due primarily to a  redeployment  of staff from other
departments within the Company,  increased spending relating to contrast systems
of  $128,000,  and  severance  costs  of  $90,000,  resulting  from  operational
reorganizations.  Of the R&D expenditures for the current period,  approximately
43%  relate  to  contrast  systems,  27%  to  AngioDynamics   projects,   4%  to
immunological  projects,  7% to other  projects  and 19% to  general  regulatory
costs.

     Other income,  net of other  expenses,  totaled  $565,000 of income for the
current period compared to $390,000 of income for the comparable period of last


                                      -18-
<PAGE>


year.  This  improvement  was due  primarily  to  increased  interest  income of
$137,000, resulting from the investment of AngioDynamics Ltd. sale proceeds, and
decreased foreign currency exchange losses of 61,000.

     For the  thirty-nine  weeks  ended March 3, 2001,  the Company  reported an
income tax benefit of $458,000  against  earnings before taxes of $2,351,000 due
primarily  to the fact that the  Company  reversed  a portion  of its  valuation
allowance against certain domestic tax benefits totaling  $1,344,000.  Continued
and projected future profitability of the Company's U.S.  operations,  including
those of  AngioDynamics,  made it more likely than not that certain deferred tax
assets  would  be  realized  through  future  taxable  earnings.  The  Company's
effective  tax rate of 38% for the  thirty-nine  weeks ended  February  26, 2000
differed  from the Federal  statutory  tax rate of 34% due primarily to the fact
that the  Company  did not  provide  for the tax  benefit  on losses in  certain
foreign  jurisdictions,  since,  at that time,  it was more likely than not that
such  benefits  would not be realized.  Earnings of the  Company's  Puerto Rican
subsidiary,  which are subject to favorable U.S. tax  treatment,  were offset by
losses  incurred in a foreign  jurisdiction  subject to lower tax rates and non-
deductible expenses.

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

     For the thirty-nine weeks ended March 3, 2001, capital expenditures and the
purchase of  treasury  stock were funded by cash  provided  by  operations.  The
Company's  policy  has  been  to fund  capital  requirements  without  incurring
significant debt. At March 3, 2001, debt (notes payable,  current  maturities of
long-term  debt and long-term  debt) was  $1,505,000,  compared to $1,636,000 at
June 3, 2000.  The  Company  has  available  $5,238,000  under two bank lines of
credit of which no amounts were outstanding at March 3, 2001.

     At March 3, 2001,  approximately  65% of the Company's  assets consisted of
inventories,  accounts  receivable,  short-term debt and equity securities,  and
cash and cash  equivalents.  The  current  ratio was 4.67 to 1, with net working
capital of $55,126,000, at March 3, 2001, compared to a current ratio of 4.25 to
1, with net working capital of $51,434,000, at June 3, 2000.

     In January 1999, the Board of Directors  authorized the repurchase of up to
500,000  shares of the Company's  Class B Common Stock at an aggregate  purchase
price of up to  $2,000,000.  In October 1999,  the Board modified the program to
include the Company's  Class A Common Stock. In February 2000, the Board further
modified the program to increase  the  aggregate  purchase  price of Class A and
Class B Common  Stock by an  additional  $2,000,000.  As of March 3,  2001,  the
Company had repurchased 41,223 shares of Class A Common Stock and 387,155 shares
of Class B Common Stock for approximately $3,014,000.

     Forward-Looking Statements
     --------------------------

     This Form 10-Q  contains  certain  forward-looking  statements  within  the
meaning  of  Section  27A of  the  Securities  Act  of  1933,  as  amended  (the
"Securities  Act"),  and Section 21E of the Securities  Exchange Act of 1934, as
amended  (the  "Exchange  Act"),  which are  intended  to be covered by the safe
harbors  created  thereby.  Words such as "expects",  "intends",  "anticipates",
"plans",  "believes",  "seeks",  "estimates",  or  variations  of such words and
similar  expressions are intended to identify such  forward-looking  statements.
Investors are cautioned that all  forward-looking  statements  involve risks and
uncertainty, including without limitation, the ability of the Company to develop
its products,  future actions by the U.S. Food and Drug  Administration or other
regulatory  agencies,  results of pending or future clinical trials,  as well as
general  market  conditions,  competition  and  pricing.  Although  the  Company
believes  that  the  assumptions   underlying  the  forward-looking   statements
contained herein are reasonable, any of the assumptions could be inaccurate, and
therefore,  there  can  be no  assurance  that  the  forward-looking  statements
included in this Form 10-Q

                                      -19-

<PAGE>


will prove to be accurate. In light of the significant uncertainties inherent in
the   forward-looking   statements   included  herein,  the  inclusion  of  such
information  should not be  regarded as a  representation  by the Company or any
other person that the objectives and plans of the Company will be achieved.

     Effects of Recently Issued Accounting Pronouncements
     ----------------------------------------------------

     In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative  Instruments and Hedging  Activities," which requires
entities to recognize all  derivatives in their  financial  statements as either
assets or  liabilities  measured at fair value.  SFAS No. 133 also specifies new
methods  of  accounting  for  hedging  transactions,  prescribes  the  items and
transactions  that may be hedged and  specifies  detailed  criteria to be met to
qualify  for hedge  accounting.  SFAS No.  133,  as amended by SFAS No.  138, is
effective for fiscal years beginning after June 15, 2000. The Company  currently
does not use  derivative  instruments as defined by SFAS No. 133. If the Company
continues not to use these derivative  instruments by the effective date of SFAS
No. 133, the adoption of this pronouncement will have no effect on the Company's
results of operations or financial position.

     In December 1999, the Securities and Exchange Commission issued SAB No. 101
"Revenue Recognition",  which provides guidelines in applying generally accepted
accounting  principles  to  selected  revenue  recognition  issues.  The  SAB is
effective in the fourth  quarter of fiscal years  beginning  after  December 15,
1999.  The Company  continues to evaluate the impact of SAB 101, but believes it
is in compliance  with the  provisions of the SAB,  and,  accordingly,  does not
expect this  statement  to have a material  impact on the  Company's  results of
operations or financial position.

     In October  2000,  the EITF  issued  guidance  on how to  classify  certain
revenues  and  costs  in  a  company's  financial  statements.  EITF  No.  00-10
"Accounting  for  Shipping  and  Handling  Revenues  and  Costs"  requires  that
companies  classify  all amounts  billed to  customers  related to shipping  and
handling cost as revenue. This statement will be effective in the fourth quarter
of fiscal years  beginning  after  December 15, 1999 and is not expected to have
any effect on the Company's results of operations or financial position.


Item 3. Quantitative and Qualitative Disclosures About Market Risk
        ----------------------------------------------------------

     The  Company  is exposed to market  risk from  changes in foreign  currency
exchange rates and, to a much lesser extent,  interest rates on investments  and
financing,  which could impact results of operations and financial position. The
Company does not  currently  engage in hedging or other  market risk  management
tools.  There  have  been no  material  changes  with  respect  to  market  risk
previously disclosed in the fiscal 2000 Annual Report on Form 10-K.

     Foreign Currency Exchange Rate Risk
     -----------------------------------

     The Company's  international  subsidiaries  are  denominated  in currencies
other than the U.S.  dollar.  Since the  functional  currency  of the  Company's
international  subsidiaries is the local currency,  foreign currency translation
adjustments  are accumulated as a component of accumulated  other  comprehensive
income (loss) in stockholders' equity.  Assuming a hypothetical aggregate change
in the foreign  currencies versus the U.S. dollar exchange rates of 10% at March
3, 2001,  the Company's  assets and  liabilities  would  increase or decrease by
$2,191,000  and  $586,000,  respectively,  and the  Company's  net sales and net
earnings would increase or decrease by $1,997,000 and $36,000,  respectively, on
an annual basis.


                                      -20-

<PAGE>


     The Company also maintains  intercompany balances and loans receivable with
subsidiaries  with  different  local  currencies.  These  amounts are at risk of
foreign  exchange  losses if exchange rates  fluctuate.  Assuming a hypothetical
aggregate change in the foreign currencies versus the U.S. dollar exchange rates
of 10% at March 3, 2001, results of operations would be favorably or unfavorably
impacted by approximately $463,000 on an annual basis.

     Interest Rate Risk
     ------------------

     The Company is exposed to interest  rate change market risk with respect to
its investments in tax-free  municipal  bonds in the amount of $13,625,000.  The
bonds bear interest at a floating rate established  weekly.  For the thirty-nine
weeks ended March 3, 2001, the after-tax interest rate on the bonds approximated
4.3%.  Each 100 basis point (1%)  fluctuation in interest rates will increase or
decrease  interest  income on the bonds by  approximately  $136,000 on an annual
basis.

     As  the  Company's  principal  amount  of  fixed  interest  rate  financing
approximated  $1,505,000 at March 3, 2001, a change in interest  rates would not
materially impact results of operations or financial position. At March 3, 2001,
the Company did not maintain any variable interest rate financing.


                                      -21-

<PAGE>


                          E-Z-EM, Inc. and Subsidiaries

                           Part II: Other Information


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

(a)  Exhibits - None.
     --------

(b)  Reports on Form 8-K
     -------------------

     No reports on Form 8-K were filed during the quarter ended March 3, 2001.


                                   SIGNATURES

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



                                          E-Z-EM, Inc.
                                         -------------------------------------
                                          (Registrant)




Date    April 17, 2001                    /s/ Anthony A. Lombardo
     --------------------                -------------------------------------
                                          Anthony A. Lombardo, President,
                                          Chief Executive Officer and Director




Date    April 17, 2001                    /s/ Dennis J. Curtin
     --------------------                -------------------------------------
                                          Dennis J. Curtin, Senior Vice
                                          President - Chief Financial Officer
                                          (Principal Financial and Chief
                                          Accounting Officer)


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