SECURITIES AND EXCHANGE COMMISSION
               WASHINGTON, DC 20549

                    FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934

  For the quarterly period ended August 31, 2000

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

For the transition period from            to


          Commission file number 0-17741


                    EPOLIN, INC.
(Exact name of Small Business Issuer as Specified in its Charter)


New Jersey                                      22-2547226
(State or Other Jurisdiction              (I.R.S. Employer
of Incorporation or                         Identification
Organization)                                      Number)

               358-364 Adams Street
             Newark, New Jersey 07105
     (Address of Principal Executive Offices)

                  (973) 465-9495
 (Issuer's Telephone Number, Including Area Code)

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

         Yes    X              No

State the number of shares outstanding of each of the Issuer's classes of
common equity, as of the latest practicable date:

    Common, no par value per share: 11,419,355
        outstanding as of September 1, 2000




          PART I - FINANCIAL INFORMATION

            EPOLIN, INC. AND SUBSIDIARY


          Index to Financial Information
           Period Ended August 31, 2000



Item
                                                  Page Herein

Item 1 - Financial Statements:

Accountant's Review Report                          3

Consolidated Financial Statements:

Consolidated Balance Sheets                         4-5

Consolidated Statements of Income                   6-7

Consolidated Statements of Stockholders' Equity     8

Consolidated Statements of Cash Flows               9-10

Notes to Consolidated Financial Statements          11-18

Item 2 - Management's Discussion and
         Analysis or Plan of Operation              19-20







ACCOUNTANT'S REVIEW REPORT


To the Board of Directors
EPOLIN INC. AND SUBSIDIARY
Newark, NJ

We have reviewed the accompanying Consolidated Balance Sheet of Epolin Inc.
and Subsidiary as of August 31, 2000 and the related Consolidated
Statements of Income, Stockholders' Equity and Cash Flows for the six
months then ended in accordance with Statements on Standards for Accounting
and Review Services issued by the American Institute of Certified Public
Accountants.  All information included in these financial statements is the
representation of the management of Epolin, Inc. and Subsidiary.

A review consists principally of inquiries of Company personnel and
analytical procedures applied to financial data.  It is substantially less
in scope than an audit in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole.  Accordingly, we do not express
such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the August 31, 2000 financial statements in order for
them to be in conformity with generally accepted accounting principles.

The accompanying financial statements of Epolin, Inc. and Subsidiary for
the six months ended August 31, 1999 were complied by us in accordance with
Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants.  A compilation is
limited to presenting in the form of financial statements information that
is the representation of management.  We have not audited or reviewed the
August 31, 1999 finanical statements and, accordingly, do not express an
opinion or any other form of assurance on them.




POLAKOFF WEISMANN LEEN LLC

September 15, 2000




EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

ASSETS
                                          August 31,
                                      2000         1999

Current assets:
  Cash and cash equivalents      $ 1,192,995     1,170,812
  Accounts receivable                415,736       170,633
  Inventories                        463,007       380,527
  Prepaid expenses - other            12,999        34,282
  Employee loans                       1,675             -
  Deferred taxes                       8,079        32,000

Total current assets               2,094,491     1,788,254

Property, plant and equipment - at cost:
Land                                  81,000        81,000
Building                             369,000       369,000
Machinery and equipment              228,837       206,727
Furniture and fixtures                11,407        11,408
Leasehold improvements               432,037       432,037

Total                              1,122,281     1,100,172

Less:  Accumulated depreciation
and amortization                     662,204       640,684

Net property, plant and equipment    460,077       459,488

Other assets:
Deferred taxes                       151,904        90,107
Cash value - life insurance policy    89,579        72,558

Total other assets                   241,483       162,665

      Total                      $ 2,796,051     2,410,407



See accountant's review report



EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (CONTINUED)

LIABILITIES AND STOCKHOLDERS' EQUITY

                                           August 31,
                                      2000          1999

Current liabilities:
  Accounts payable                  $ 16,340        32,062
  Accrued expenses                   134,636        19,574
  Taxes payable - payroll and income  52,587       163,420
Loans payable officers                     -        10,319

Total current liabilities            203,563       225,375

Other liabilities:
  Deferred compensation              271,986       144,764
  Due officers                        10,319             -

     Total other liabilities         282,305       144,764

     Total liabilities               485,868       370,139


Stockholders' equity:
    Preferred stock, $15.513
    par value; 940,000
    shares authorized;
    none issued                            -             -
    Preferred stock, series
    A convertible non-cumulative,
    $2.50 par value;
    redemption price and
    liquidation preference;
    60,000 shares authorized;
    5,478 shares issued and redeemed       -             -
    Common stock, no par value;
     20,000,000 shares
     authorized; 11,956,500
     and 11,759,000 shares
     issued and outstanding
     at 2000 and 1999              2,229,658     2,220,384
  Paid-in capital                      6,486         6,486
  Retained earnings (deficit)        203,811      (121,238)

Total                              2,439,955     2,105,632

Less: Treasury stock, at cost        129,772        65,364

Total stockholders' equity         2,310,183     2,040,268

  Total                          $ 2,796,051     2,410,407


See accountant's review report





EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED AUGUST 31, 2000 AND 1999


                                       2000           1999




Sales                               $ 657,396       566,347

Cost of sales and expenses:
  Cost of sales                       199,386       127,826
  Selling, general and administrative
    expenses                          155,306       129,222

Total                                 354,692       257,048

Operating income                      302,704       309,299

Other income - interest                14,630        11,361

Income before taxes                   317,334       320,660

Income tax expense                    144,713       163,720

Net income                          $ 172,621       156,940

Per share data:
  Net income per common share          $ 0.02          0.01

  Weighted average number of
    shares of common outstanding $ 11,438,268    11,445,414


See accountant's review report




EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED AUGUST 31, 2000 AND 1999

                                      2000         1999

Sales                            $ 1,154,597    1,058,013

Cost of sales and expenses:
  Cost of sales                      374,933      239,647
  Selling, general and
  administrative expenses            331,444      240,806

Total                                706,377      480,453

Operating income                     448,220      577,560

Other income - interest               30,620       19,242

Income before taxes                  478,840      596,802

Income tax expense                   194,207      257,660

Net income                         $ 284,633      339,142


Per share data:
  Net income per common share         $ 0.02         0.03

  Weighted average number of
  shares of common
  outstanding                   $ 11,438,268   11,445,414




See accountant's review report






EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED AUGUST 31, 2000 AND 1999




                                 Common   Additional       Accumulated
                                 Stock    Paid-in-Capital  Deficit

Balance - March 1, 1999       $ 2,220,384      6,486      (460,380)

Purchase of treasury stock              -          -             -

Net income                              -          -       339,142

Balance - August 31, 1999     $ 2,220,384      6,486      (121,238)




Balance - March 1, 2000       $ 2,220,384      6,486       (80,822)

Issue of common stock               9,274          -             -

Purchase of treasury stock              -          -             -

Net income                              -          -       284,633

Balance - August 31, 2000     $ 2,229,658      6,486       203,811


                                    Treasury      Stockholders'
                                    Stock         Equity



Balance - March 1, 1999             (34,084)     1,732,406

Purchase of treasury stock          (31,280)       (31,280)

Net income                                -        339,142

Balance - August 31, 1999           (65,364)     2,040,268




Balance - March 1, 2000            (118,906)     2,027,142

Issue of common stock                     -          9,274

Purchase of treasury stock          (10,866)       (10,866)

Net income                                -        284,633

Balance - August 31, 2000          (129,772)     2,310,183

See accountant's review report





EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED AUGUST 31, 2000 AND 1999


                                            2000          1999


Cash flows from operating activities:
  Net income                             $ 284,633       339,142
  Adjustments to reconcile net income
    to net cash provided by operating
    activities:
  Depreciation and amortization             13,267         9,170
  Deferred tax expense                     (14,031)            -
  Obligation under deferred
   compensation agreement                   42,790             -
  (Increase) decrease in:
     Accounts receivable                  (126,900)      160,281
     Inventories                            12,208      (100,903)
     Employee loans                          3,094             -
     Prepaid expenses                       19,600        49,531
  Increase (decrease) in:
     Accounts payable                         (990)      (11,342)
     Accrued expenses                      (27,448)      (31,453)
     Taxes payable                        (170,342)      128,875

        Net cash provided by
        operating activities                35,881       543,301

Cash flows from investing activities:
  Increase in cash value -
   life insurance policy                    (9,000)      (10,000)
  Payments for equipment                   (15,231)            -

         Net cash used by
         investing activities              (24,231)      (10,000)




See accountant's review report





EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
SIX MONTHS ENDED AUGUST 31, 2000 AND 1999


                                        2000          1999

Cash flows from financing activities:
 Proceeds from the issuance of
  capital stock                           9,274             -
 Related party loans                                  (31,280)
    Purchase of treasury stock          (10,866)       (6,937)

Net cash used by financing activities    (1,592)      (38,217)

Increase in cash                         10,058       495,084

Cash and cash equivalents:
  Beginning                           1,182,937       675,728

  Ending                            $ 1,192,995     1,170,812

Supplemental information:

  Income taxes paid                   $ 377,124         5,850

  Interest paid                       $     472             -



See accountant's review report





EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000




Note A - Organization and Basis of Presentation:

The Company is engaged in the development, production and sale of near
infrared dyes to the optical industry for laser protection and welding
applications and other dyes and specialty chemical products that serve as
intermediates and additives used in the adhesive, plastic, aerospace,
pharmaceutical and flavors and fragrance industries to customers located in
the United States and throughout the world.

The Company's wholly owned Subsidiary, Epolin Holding, Corp., was
incorporated in New Jersey as a real estate holding company assets
consisting of land and a building.  Prior to being acquired on January 29,
1998, it was controlled by two officers/stockholders of the Company.

Note B - Summary of Significant Accounting Policies:

Principles of Consolidation - The accompanying Consolidated Financial
Statements include the accounts of the Company and its Subsidiary.
Intercompany transactions and balances have been eliminated in
consolidation.  Condensed consolidating financial statements for the period
ended August 31, 2000 as follows:





EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000

Note B - Summary of Significant Accounting Policies: (Continued)

CONDENSED CONSOLIDATING BALANCE SHEET

                                        Epolin
                             Epolin     Holding     Eliminations   Consolidated
Current assets              $2,299,092     6,832         211,433    2,094,491
Non-current assets             493,156   413,661         205,257      701,560

Total                       $2,792,248   420,493         416,690    2,796,051

Total liabilities           $  482,065   215,236         211,433      485,868

Stockholders' equity:
    Common stock             2,229,658         -               -    2,229,658
    Additional paid-in
    capital                      6,486         -               -        6,486
    Retained earnings          203,811   205,257         205,257      203,811
     Treasury stock           (129,772)        -               -     (129,772)

     Total stockholders'
        equity               2,310,183   205,257         205,257    2,310,183

          Total             $2,792,248   420,493         416,690    2,796,051



CONDENSED CONSOLIDATING STATEMENT OF INCOME


Sales                       $1,154,597         -               -    1,154,597
Other revenue                        -    48,870          48,870            -
   Total                     1,154,597    48,870          48,870    1,154,597

Cost of sales                  374,933         -               -      374,933
Selling, general
  and administrative           373,218     7,096          48,870      331,444

     Total                     748,151     7,096          48,870      706,377

Operating income               406,446    41,774               -      448,220

Other income                    68,836       609          38,825       30,620

Income before taxes            475,282    42,383          38,825      478,840
Income taxes                   190,649     3,558               -      194,207

Net income                    $284,633    38,825          38,825      284,633



EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000

Note B - Summary of Significant Accounting Policies: (Continued)

Cash and Cash Equivalents - Includes cash in bank and money market accounts
for purposes of preparing the Statement of Cash Flows.

Concentrations of Credit Risks - The Company has cash deposits in financial
institutions in excess of the amount insured by agencies of the federal
government of approximately $1,093,000 and $1,071,000 at August 31, 2000
and 1999, respectively.  In evaluating this credit risk, the Company
periodically evaluates the stability of these financial institutions.

Inventories - Consists of raw materials, work in process, finished goods
and supplies valued at the lower of cost or market under the first-in,
first-out method.

Fair Value of Financial Instruments - All reported assets and liabilities,
which represent financial instruments, approximate the carrying values of
such amounts.

Property, Plant and Equipment - Stated at cost less accumulated
depreciation and amortization. Provisions for depreciation are computed on
the straight-line and declining balance methods, based upon the estimated
useful lives of the assets.

Depreciation and amortization expense totaled $13,627 and $9,170 for the
period ended August 31, 2000 and 1999, respectively.

Income taxes -The Company accounts for income taxes under Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes",
wherein the asset and liability method is used in accounting for income
taxes.  Deferred taxes are recognized for temporary differences between the
basis of assets and liabilities for financial statement and income tax
purposes.  The temporary differences relate primarily to different
accounting methods used for depreciation and amortization of property and
equipment, allowance for doubtful accounts and net operating loss carry
forwards.

Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the amounts of sales and expenses during
the reporting period.  Actual results could differ from those estimates.






EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000


Note C - Economic Dependency:

     A material portion of the Company's business is dependent on
certain domestic customers, the loss of which could have a material effect
on operations.  During the period ended August 31, 2000, approximately
66.03% of sales were to four customers.   Three of these customers, located
in the Eastern United States, amounted for 42.70% of sales at August 31,
2000.

Note D - Inventories:

     Raw materials and supplies    $   36,594
     Work in process                   28,946
     Finished goods                   397,467

               Total               $  463,007

Note E - Income Taxes and Deferred Tax Asset:
Income tax expense and/or benefit consists of the following components:

  Current
     Federal            $ 160,300
     State                 46,338
     Total current        206,638

  Deferred:
       Federal             (9,800)
       State               (2,631)
       Total deferred     (12,431)

       Total             $194,207


Federal and State deferred tax assets include the following:

Temporary differences - principally accelerated amortization
of leasehold improvements for book purposes and deferred
compensation                     $159,983

         Current portion            8,079
         Non-current portion     $151,904





EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000

Note F - Accrued Salaries:


On April 25, 1995, the Board of Directors authorized the issuance of
1,000,000 shares of common stock (market value $.04 per share) to an
officer in lieu of $40,000 of his remaining accrued salary of $89,948.  The
remaining unpaid balance of $49,948 was paid in the current period.

Note G - Employee Benefits:

Simplified Employee Pension Plan - Effective June 1, 1994, covering all
eligible participating employees as defined. Employer contributions totaled
$5,396 for the period ended August 31, 2000.

Incentive Compensation Plan - In December 1989, the Company approved the
1989 Incentive Compensation Plan for the purpose of attracting and
retaining key personnel.  All employees of the Company are eligible to
participate in the plan whereby incentive bonuses are determined by the
Board of Directors and payable in shares of common stock.  Shares issued
are determined at fifty percent of the closing bid price and vested and
delivered over a three-year period.

Employee Option Plan - The Company had previously adopted The Stock Option
Plan.  As of April 1996, options may no longer be granted.  Under the terms
of the Plan, options granted could be designated as portions which qualify
for incentive stock option treatment under Section 422A of the Internal
Revenue Code of 1986, as amended, or options which do not qualify. In
December 1995, options to acquire up to 490,000 shares of the Company's
common stock were granted and will expire on December 1, 2005.  In the
current period, 150,000 shares of common stock were issued to two
employees.

Outstanding options remaining under the plan are as follows

Shares allocated as of August 31, 2000       207,500

Option price                            $       0.04

All outstanding options are currently exercisable.



EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000

Note G - Employee Benefits (Continued):

The Company adopted the 1998 Stock Option Plan on December 1, 1998.  Under
the terms of the plan, the company reserved 750,000 shares of common stock
for issuance pursuant to the exercise of options to be granted under the
Plan which do not meet the requirements of Section 422 of the Code.
Options expire ten years after the date granted and are subject to a
vesting period as follows: (1) no portion will be exercisable prior to the
first anniversary of the date of grant, and (2) each of the options will
become exercisable as to 50% of the shares underlying the option on each of
the first and second anniversaries of the date granted at $0.15 per share.

Option granted as of August 31, 2000:

No. of    Date                Expiration
Shares    Granted             Date

425,000   December 1, 1998    December 30, 2008
 25,000   February 10, 1999   February 9, 2009
 25,000   February 10, 2000   February 9, 2010

There are 275,000 options attributable to future grants.

Effective March 1, 1999, the company adopted deferred compensation
agreements with two of its employees.  Under the terms of the agreements,
each employee will receive one twenty sixth (1/26th) of fifty percent (50%)
of their annual salary (excluding bonuses) as of the date of retirement.
Each has a death vesting schedule.

Note H - Treasury Stock:

     Treasury stock at August 31, 2000 totaled 537,145 shares, at a
cumulative cost of $129,772 including 42,445 shares, which were returned to
the Company at no cost in prior years .

Note I - Research and Development:

The cost for the six-month period ended August 31, 2000 is $108,731
included in selling, general and administrative expenses.



EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000

Note J - Commitments and Contingencies:

Leases:

The company leases its promises from its wholly - owned subsidiary.  The
lease was for a term of five (5) years with three (3) five (5) year options
at annual rentals of $97,740 subject to a Cost of Living Index adjustment
effective with the second year.  Rent includes reimbursed real estate taxes
and insurance.

The minimum annual rentals under the lease are as follows:

          Years Ended            Amounts
          February 28, 2001      $97,740
          February 28, 2002       65,160

     The lease is anticipated to be renewed at February 28, 2002,
however, management has not determined the renewal rent.

Rental expense charged to operations and eliminated in consolidation
amounted to $48,870 for the six months ended August 31, 2000.

Deferred Compensation:

On December 29, 1995, the Company entered into a deferred compensation
agreement with two officers.  The first officer's additional annual
compensation of $19,645 plus interest is being deferred until such time the
officer reaches age 65 or is terminated.  The obligation is being funded
with a life insurance policy.  Annual payments of $32,000 for ten
consecutive years shall commence the first day of the month following the
officer's 65th birthday or termination.  The second officer was credited
with $25,000 per year until his date of retirement, however, he elected to
continue to work after his retirement age, thereby freezing the balance in
his account.  Therefore, no contribution was necessary for the current
period.  Upon retirement, he will be paid either in equal consecutive
monthly payments for a period not exceeding sixty (60) months or a single
payment equal to the then present value of the account.  This selection
will be at this discretion of the company.




EPOLIN, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2000

Note J - Commitments and Contingencies (continued):

Employment Agreements:

Effective March 1, 1999, the Company entered into ten year employment
Agreements with executive officers/directors:

James Ivchenko, President - To be paid an annual salary of not less than
the greater of his annual base salary in effect immediately prior to the
effective date of the agreement or any subsequently established annual base
salary.  In addition, he is to receive 1.5% of gross annual sales of no
more than $3,000,000, effective with the year ended February 29, 2000,
increasing by 0.25% a year during the term of the agreement.

Murray S. Cohen, PhD, Chairman of the Board and Chief Executive Officer -
To be paid an annual salary of not less than the greater of his annual base
salary in effect immediately prior to the effective date of the agreement
or any subsequently established annual base salary.  He is to receive 2.00%
of gross annual sales of no more than $3,000,000, effective with the year
ended February 29, 2000, increasing by 0.25% a year during the term of the
agreement.  The Company had previously entered into a deferred compensation
agreement with Dr. Cohen providing for the payment of certain funds to him
for a period of ten years beginning two weeks after the date of his
retirement, which agreement was terminated in connection with the execution
of this employment agreement.

Contingencies:

In August 2000, the Company received a letter from a law firm representing
a former officer of the Company (who is also a current director) alleging
age discrimination and other monetary claims pertaining to such former
officer's past employment.  In addition, in September 2000, The Company
received a letter from the same law firm on behalf of another director (who
is currently an employee of the Company) alleging similar claims.  To date,
no actions have been commenced in either matter and the Company believes
such claims are without merit.  In the event actions are commenced, the
Company intends to defend such matters vigorously.  Nevertheless, while the
outcome of such matters cannot be predicted with certainty at this time,
management does not expect such will result in an unfavorable outcome to
the Company or have a material adverse effect.





Item 2.   Management's Discussion and Analysis or Plan of Operation.

     The following discussion should be read in conjunction with the
Financial Statements  included in this report and is qualified in its
entirety by the foregoing.

Introduction

     Epolin, Inc. (the "Company") is a manufacturing and research and
development company which was incorporated in the State of New Jersey in
May 1984.  The Company is principally engaged in the development,
production and sale of near infrared dyes to the optical industry for laser
protection and for welding applications and other dyes, specialty chemical
products that serve as intermediates and additives used in the adhesive,
plastic, aerospace, pharmaceutical, flavors and fragrance industries to a
group of customers located in the United States and throughout the world.

     This discussion contains certain forward-looking statements and
information relating to the Company that are based on the beliefs and
assumptions by the Company's management as well as information currently
available to the management.  When used herein, the words "anticipate",
"believe", "estimate", and "expect" and similar expressions, are intended
to identify forward-looking statements.  Such statements reflect the
current views of the Company with respect to future events and are subject
to certain risks, uncertainties and assumptions.  Should one or more of
these risks or uncertainties materialize or should underlying assumptions
prove incorrect, actual results may vary materially from those described
herein as anticipated, believed, estimated or expected.  The Company does
not intend to update these forward-looking statements.

Results of Operations

     During the quarter ended August 31, 2000, the Company reported
sales of approximately $657,400 as compared to sales of approximately
$566,300 during the quarter ended August 31, 1999, an increase of
approximately $91,000 or 16.1%.  During the six months ended August 31,
2000, the Company reported sales of approximately $1,154,600 as compared to
sales of approximately $1,058,000 during the six months ended August 31,
1999, an increase of approximately $96,600 or 9.1%.  This increase in sales
was primarily attributed to an increase in sales of the Company's near
infrared absorbing dyes and increases in sales of new dyes for new
applications.

     Operating income for the quarter August 31, 2000 decreased to
approximately $302,700 from operating income of approximately $309,300 for
the quarter ended August 31, 1999, a decrease of approximately $6,600.
Operating income for the six months ended August 31, 2000 decreased to
approximately $448,200 from operating income of approximately $577,600 for
the six months ended August 31, 1999, a decrease of approximately $129,300.
This change resulted primarily from increases in cost of sales and selling,
general and administrative expenses for the six months ended August 31,
2000 as compared to the six months ended August 31, 1999, offset by an
increase in sales of approximately $96,600 for the six months ended August
31, 2000, as compared to the comparable period in the prior fiscal year.
Cost of sales for the six months ended August 31, 2000 was approximately
$374,900 as compared to cost of sales during the six months ended August
31, 1999 of approximately $239,600.  During the six months ended August 31,
2000, the Company's selling, general and administrative expenses were
approximately $331,400 as compared to selling, general and administrative
expenses of approximately $240,800 for the six months ended August 31,
1999.

     During the three and six months ended August 31, 2000, the Company
realized approximately $14,600 and $30,600, respectively, in interest
income as compared to approximately $11,400 and $19,200, respectively, in
interest income for the comparable periods of the prior fiscal year.

     During the quarter ended August 31, 2000, the Company reported
income before taxes of approximately $317,300 as compared to income before
taxes of approximately $320,700 for the three months ended August 31, 1999.
For the six months ended August 31, 2000, the Company reported income
before taxes of approximately $478,800 as compared to income before taxes
of approximately $596,800 for the six months ended August 31, 1999.  Net
income after taxes was approximately $172,600 for the three months ended
August 31, 2000 as compared to income after taxes of approximately $156,900
for the three months ended August 31, 1999.  For the six months ended
August 31, 2000, net income after taxes was approximately $284,600 as
compared to net income after taxes of approximately $339,100 for the
comparable period of the prior fiscal year.

Liquidity and Capital Resources

     On August 31, 2000, the Company had working capital of
approximately $1,890,900, an equity to debt ratio of approximately 4.75 to
1, and stockholders' equity of approximately $2,310,200.  On August 31,
2000, the Company had approximately $1,193,000 in cash and cash
equivalents, total assets of approximately $2,796,100 and total
liabilities of approximately $485,900.  The Company believes that its
available cash, cash flow from operations and projected revenues will be
sufficient to fund the Company's operations for at least the next 12
months.

     The Company does not anticipate making any significant additional
capital expenditures in the immediate future as it believes its present
machinery and equipment will be sufficient to meet its near term needs.

     Inflation has not significantly impacted the Company's operations.

Other Information

     In March 1998, the Board of Directors of the Company authorized a
stock repurchase program of up to $150,000 of the Company's outstanding
shares of Common Stock.  In connection therewith, the Company announced
that purchases may be made in the open market or in privately negotiated
transactions from time to time, based on market prices and that the
repurchase program may be suspended without further notice.  Management
believes the Company's shares are undervalued at current price levels and
this program offers the Company a chance not only to repurchase some of
its stock at prices management perceives to be attractive but it also
enables the Company to enhance shareholder value although no assurance can
be given that any such repurchases will have such effect.  A total of
494,700 shares have been repurchased under this program through August 31,
2000, at a cumulative cost of $123,097, which includes 24,000 shares
repurchased during the quarter ended August 31, 2000.

<PAGE>
            PART II - OTHER INFORMATION


Item 1.   Legal Proceedings.

          In August 2000, the Company received a letter from a law
          firm representing a former officer of the Company (who is
          also a current director) alleging age discrimination and
          other monetary claims pertaining to such former officer's
          past employment.  In addition, in September 2000, the
          Company received a letter from the same law firm on behalf
          of another director (who is currently an employee of the
          Company) alleging similar claims.  To date, no actions have
          been commenced in either matter and the Company believes
          such claims are without merit.  In the event actions are
          commenced, the Company intends to defend such matters
          vigorously.  Nevertheless, while the outcome of such matters
          cannot be predicted with certainty at this time, management
          does not expect such will result in an unfavorable outcome
          to the Company or have a material adverse effect.

Item 2.   Changes in Securities.

          None.

Item 3.   Defaults Upon Senior Securities.

          None.

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

          None.

Item 5.   Other Information.

          None.

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

          (a)  Exhibits.

          There are no exhibits applicable to this Form 10-QSB.

          (b)  Reports on Form 8-K.

          Listed below are reports on Form 8-K filed during the
          fiscal quarter ended August 31, 2000.

          None.




                    SIGNATURES

     In accordance with the requirements of the Exchange Act, the
Registrant caused this Report to be signed on its behalf by the undersigned
thereunto duly authorized.


                                    EPOLIN, INC.
                                    (Registrant)


Dated: September 22, 2000           By:  /s/ Murray S. Cohen
                                             Murray S. Cohen,
                                             Chief Executive Officer



Dated: September 22, 2000           By:  /s/ Murray S. Cohen
                                             Murray S. Cohen,
                                             Principal Financial Officer