UNITED  STATES
                       SECURITIES  AND  EXCHANGE  COMMISSION

                           WASHINGTON,  D.  C.  20549

                              FORM  10-QSB
 (  X )     QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934

               For  the  Quarterly  Period  Ended          March  31,  2001

(   )     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:   0-30018


                              MERIDIAN  HOLDINGS,INC.
                              ----------------------
             (Exact  Name  of  Registrant  as  Specified  in  its  Charter)

              COLORADO                                   52-2133742
    -------------------------------               ------------------------
    (State  of  Other  Jurisdiction  of                  (I.R.S.  Employer
    Incorporation  or  Organization)               Identification  Number)

        900  WILSHIRE  BOULEVARD,  SUITE  500,  LOS  ANGELES,  CALIFORNIA  90017
        ----------------------------------------------------------------
                    (Address  of  Principal  Executive  Offices)

                                 (213)  627-8878
        ----------------------------------------------------------------
              (Registrant's  telephone  number,  including  area  code)

                                       N/A
        ----------------------------------------------------------------
    (Former  name,  former address and formal fiscal year, if changed since last
                                     report)


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 and, (2) has been subject to such filing
requirements  for  the  past  90  days.     Yes  (  X  )   No   (    )

As  of  March  31,  2001,  Meridian Holdings, Inc.,  Registrant  had  93,456,485
shares  of  its  $0.001  par  value  common  stock  outstanding.

                                        Page 1 of 12 sequentially numbered pages
                                                                       Form 10-Q
                                                              First Quarter 2001













                            MERIDIAN  HOLDINGS,  INC.


                                      INDEX


                                                                       PAGE
                                                                       ----


PART  I.  FINANCIAL INFORMATION

          Consolidated Balance Sheets                                    3

          Consolidated Statements of Operations                          4

          Consolidated Statements of Cash Flows                          5

          Notes to Consolidated Financial Statements                   6-7

          Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                      8

PART II   OTHER INFORMATION

          Additional Information                                        10

          Signature                                                     11




































                                        2
<PAGE>
                            MERIDIAN  HOLDINGS,  INC.

                           Consolidated Balance Sheets
                                   (Unaudited)
<TABLE>
<CAPTION>
ASSETS

                                                         As of
                                                         March 31,   December 31,
                                                         2001        2000
                                                 ==========   ==========
<S>                                                  <C>            <C>
Current assets
Cash and cash equivalents                              $  212,463     $  253,501
    Restricted cash                                       272,252        202,688
Accounts receivable, net of allowance for
doubtful accounts of $151,744                           1,454,082      1,526,725
Other current assets                                       17,344         16,166
                                                       ----------     ----------
                  Total current assets                  1,956,141      1,999,080

Fixed assets, net of accumulated depreciation              47,953         51,726
Intellectual property, net of accumulated
amortization of $506,250 and $337,500, respectively      2,193,750     2,362,500
Investments                                              4,080,926     4,372,688
                                                         ---------    ----------
 Total assets                                          $ 8,278,770  $  8,785,994
                                                         ==========  ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
    Accounts payable                                   $    281,254  $   371,469
    Accrued payroll and other                               172,830      189,062
    Dividend payable                                              -      267,720
    Reserve for incurred but not reported claims            265,664      202,690
    Accrued interest                                        208,534      134,750
    Line of credit                                           52,236       50,109
    Current portion of long-term debt                        71,253       76,186
                                                        -------      -------
    Total current liabilities                              1,051,771   1,291,986

Long Term liabilities
    Loan from majority stockholder/officer                 2,951,342   2,939,974
    Long-term debt, net of current portion                    54,440      54,826
                                                           ---------   ---------
    Total liabilities                                      4,057,553   4,286,786
                                                           =========   ==========
Commitments and contingencies

Stockholders' equity
   Preferred stock (20,000,000 shares authorized,
   par value $0.001; no shares issued and outstanding)            -           -
   Common stock (100,000,000 shares authorized, par value
   $0.001; 93,456,485 shares issued and outstanding at
   March 31, 2001 and December 31, 2000                       93,957      93,957
   Additional paid-in capital                              4,947,137   4,947,137
   Accumulated deficit                                      (819,877)   (541,886)
                                                           ----------  ----------
    Total stockholders' equity                             4,221,217   4,499,208
                                                        -- ---------  -----------
    Total liabilities and stockholders' equity          $  8,278,770 $ 8,785,994
                                                        ============  ============
</TABLE>
See accompanying notes to consolidated financial statements

                                        3
<PAGE>

MERIDIAN  HOLDINGS,  INC.

 Consolidated Statements of Operations
(UNAUDITED)
<TABLE>
<CAPTION>


                                             Three Months Ended March 31,
                                              2001           2000
                                                     ====           ====
<S>                                              <C>            <C>
Revenues
 Capitation                                       $ 477,228        $ 337,185
 Royalties from MedMaster Software License           90,000                -
 Services related to  MedMaster software             59,600                -
                                                   ========        =========
                                                    626,828          337,185
Cost of revenues
 Capitation                                         203,848          201,437
                                                    -------          -------
 Gross margin                                       422,980          135,748
                                                    -------          -------

Operating expenses

General and administrative                          665,939          241,414
                                                    -------          -------
Loss from operations                               (242,959)        (105,666)
                                                    --------        ---------

Other income and (expense)
Equity interest in earnings (loss) of investment    (24,042)               -
 Other, net                                         (10,990)          (5,631)
                                                    --------        --------
                                                    (35,032)         (5,631)
                                                 -----------     -----------
      Net Loss                                   $ (277,991)     $ (111,297)
                                                 ===========     ===========
Net Loss per share:

    Basic and diluted                               $  (0.001)   $  (0.001)
    Weighted average shares outstanding            93,456,485    93,472,500


</TABLE>

















See accompanying notes to consolidated financial statements
                                        4
<PAGE>

MERIDIAN  HOLDINGS,  INC.

Consolidated Statements of Cash Flows
(UNAUDITED)

<TABLE>
<CAPTION>
                                                     Three Months Ended March 31,
                                                    2001            2000
                                                   =====          ======
<S>                                                   <C>           <C>
Cash flows from operating activities
  Net Loss                                              $ (277,991)   $ (111,297)
  Adjustments to reconcile net Loss to net
  cash used in operating activities:
  Depreciation and amortization                            174,024             -
  Equity interest in earnings of investments                24,042             -
  (Increase) decrease in:
         Restricted cash                                   (69,564)            -
         Accounts receivable                                72,643      (209,485)
         Other current assets                               (1,178)      (10,530)
         Accounts payable                                  (90,215)      123,039
         Accrued payroll and other                         (16,232)       38,764
         Incurred but not reported reserve                  62,974            -
         Accrued interest                                   73,784            -
                                                          --------       -------
Net cash used in operating activities                      (47,713)     (169,509)
                                                          ---------     ---------
Cash flow from investing activities
   Acquisition of fixed assets                              (1,501)      (24,962)
   Organization costs                                            -        16,613
                                                         ----------     ---------
Net cash used in investing activities                       (1,501)       (8,349)
                                                         ----------     ---------
Cash flow from financing activities
   Borrowings from majority stockholder / officer           11,368             -
   Borrowings on long-term debt                                  -       186,074
   Repayment of debt                                        (5,319)      (12,502)
   Borrowings on line of credit                              2,127             -
                                                           --------     --------
Net cash provided by financing activities                    8,176      173,572
                                                           --------     ---------
   Decrease in cash and cash equivalents                   (41,038)      (4,286)

Cash and cash equivalents, beginning of period             253,501        4,286
                                                        ---------      --------
Cash and cash equivalents, end of period                 $ 212,463      $      -
                                                        ==========     ==========

Supplemental  disclosure  of  non-cash  investing  and  financing  activities:

During  the  three months ended March 31, 2001, the Company distributed non-cash
dividends  of  $267,720,  representing  a  portion  of  its  holdings  of  CGI
Communications  Services,  Inc.  to  the  Company's  stockholders,  which  were
previously  accrued  as  of  December  31,  2000.




</TABLE>


See accompanying notes to consolidated financial statements

                                        5
<PAGE>


                            MERIDIAN  HOLDINGS,  INC.

                   Notes  to  Consolidated  Financial  Statements
1.     General

Basis  of  Reporting

The  interim  accompanying unaudited consolidated financial statements have been
prepared  in  accordance  with generally accepted accounting principles ("GAAP")
for  interim  financial  information  and  with the instructions to Form 10-QSB.
Accordingly,  they  do not include all of the information and footnotes required
by  GAAP  for  complete financial statements.  In the opinion of management, all
adjustments  (consisting of normal, recurring accruals) considered necessary for
a  fair  presentation  have  been included.  For further information, management
suggests  that the reader refer to the audited financial statements for the year
ended December 31, 2000 included in its Annual Report on Form 10-KSB.  Operating
results  for  the  three-month  period  ended March 31, 2001 are not necessarily
indicative of the results of operations that may be expected for the year ending
December  31,  2001.

The interim accompanying unaudited consolidated financial statements include the
operations  of  the  Company  and  its  majority-owned  subsidiary  Corsys Group
Limited.

Nature  of  Operations

Meridian  Holdings,  Inc. (the "Company") was incorporated under the laws of the
State  of  Colorado  on October 13, 1998.  The Company is located in the City of
Los  Angeles, California, U.S.A. and contracts with physicians to provide health
care  services  primarily  within  the  area  of  Los  Angeles  County.

The  Company  is  an  acquisition-oriented  holding company focused on building,
operating, and managing a portfolio of business-to-business companies.  It seeks
to acquire majority or controlling interests in companies engaged in e-commerce,
e-communication,  and  e-business services, which will allow the holding company
to  actively participate in management, operations, and finances.  The Company's
network  of  affiliated  companies  is designed to encourage maximum leverage of
information  technology,  operational  excellence,  industry  expertise,  and
synergistic  business  opportunity.

2.     Investments  and  Intellectual  Property

On June 29, 2000, the Company purchased all of the assets of Sirius Computerized
Technologies Limited (Israel), consisting primarily of intellectual property and
technology  related  to  that  company's software used in healthcare management.
The asset purchase includes the highly innovative intellectual property commonly
known  as  MedMaster  and  the  associated  Virtual  Multi-object-architecture
Database, as well as all components, subsystems, source code, and documentation.
The  purchase  price  was $2.7 million.  Simultaneous with this acquisition, the
Company  formed a research and development subsidiary in Jerusalem, Israel known
as  Corsys  Group  Limited  ("Corsys").  The  total costs incurred by Corsys are
included  in  the accompanying consolidated statements of operations as research
and  development  expenses.

The  purchase  of  intellectual  property  was  funded  by  the  majority
stockholder/officer  of the Company.  The Company has recorded a note payable in
the  amount  of $2.7 million.  Intellectual property has been capitalized in the
amount  of  $2.7  million in the accompanying consolidated balance sheet, and is
being  amortized  over a four-year period on a straight-line basis.  The Company
recorded  $506,250 and $337,500 amortization expense for the quarter ended March
31,  2001,  and  the  period  ended  December  31,  2000  respectively.

The  intellectual  property,  including  its  subsystems,  source  code  and
                                        6
<PAGE>
documentation,  was  acquired  out  of  the  bankruptcy  proceedings  of  Sirius
Computerized  Technologies  Limited  (Israel) and Sirius Technologies of America
(Collectively,  "Sirius").  The acquisition was made with the understanding that
the  Company  would  have  free  and  clear  title to the intellectual property.
However,  a significant creditor of Sirius, Lockheed Martin Systems Integration,
Owego  ("Lockheed")  obtained  a  judgment  against  Sirius and executed same to
obtain  possession  of  the source code underlying the Sirius MedMaster suite of
software  products,  and  has  expressed  its  intention  to  exploit same, thus
creating  competition  with  the Company.  The Company has requested that Sirius
and  Lockheed  come  to some negotiated settlement of their dispute in order for
the asset to be delivered free and clear to the Company, as per the terms of the
purchase  agreement  of  the  intellectual  property  originally approved by the
Israeli  Bankruptcy  Courts.  Negotiations  are  currently  proceeding  in  this
regard,  and as of this writing, no settlement agreement has been reached by all
parties.  If  no agreement is reached, the Company may be forced to seek redress
through  the  Israeli  court system to recover all monies spent in salvaging the
asset,  as  well as collateral damages it may have sustained as a result.  There
can  be no assurance that the Company will succeed in obtaining any redress from
the  Israeli  court.  Also,  the  cost  of litigation may be very expensive, and
could  impact  the  results  of  the  Company's  operations.


3.     Fixed  Assets

Fixed assets consist of the following:
<TABLE>
<CAPTION>
                                            As of
                                           March 31, 2001        December 31,2000
<S>                                      <C>                    <C>
Computer equipment                          $  71,853            $  71,853
Leasehold improvements                          6,500                6,500
Office furniture and fixtures                  36,603               36,603
Office equipment                               25,312               25,312
Software                                       20,035               18,534
Medical equipment                               5,391                5,391
                                             --------              -------
                                               65,694              164,193
Less accumulated depreciation                (117,741)            (112,467)
                                            ---------             --------
                                             $ 47,953             $ 51,726
                                            ========            ==========
</TABLE>
4.     Line  of  Credit

The  Company has a $50,000 line of credit with a financial institution.  Related
advances  bear  interest  at  11%, and interest is payable monthly.  The line of
credit  expires  March  21,  2002.

5.     Long-term  Debt

The  Company  has  various loans with financial institutions with interest rates
ranging  from  4%  to  15%  and  maturity  dates  ranging  from  2015  to  2024.

6.     Risk  Pool  Agreement

The  Company  is  party  to  a  Risk Pool Agreement (the "Agreement") with Tenet
HealthSystem  Hospitals,  Inc. ("Tenet").  Pursuant to the Agreement, 50% of the
monthly  capitation  revenue  is  received  directly  by  the  Company,  and the
remaining  50%  is  deposited  into  an escrow account from which Tenet pays all
claims  expenses,  reinsurance  expenses  and  retains  a management fee.  These
revenues  and  expenses  have  been  reflected  in the accompanying consolidated
statements of operations for the for the quarters ended March 31, 2001 and 2000.

The  Company has also reflected the monies in the escrow account as of March 31,
                                        7
<PAGE>

2001  and  December 31, 2000 as restricted cash in the accompanying consolidated
balance sheets.  Additionally, Tenet provides the Company with an estimate as to
the  incurred  but  not  reported claims, which has been recorded as such in the
accompanying  consolidated  balance  sheets.

                            MERIDIAN  HOLDINGS,  INC.


THE  COMPANY

Meridian  Holdings,  Inc. (the "Company") was incorporated under the laws of the
State  of  Colorado  on October 13, 1998.  The Company is located in the City of
Los  Angeles, California, U.S.A. and contracts with physicians to provide health
care  services  primarily  within  the  area  of  Los  Angeles  County.

The  Company  is  an  acquisition-oriented  holding company focused on building,
operating, and managing a portfolio of business-to-business companies.  It seeks
to acquire majority or controlling interests in companies engaged in e-commerce,
e-communication,  and  e-business services, which will allow the holding company
to  actively participate in management, operations, and finances.  The Company's
network  of  affiliated  companies  is designed to encourage maximum leverage of
information  technology,  operational  excellence,  industry  expertise,  and
synergistic  business  opportunity.


SELECTED  FINANCIAL  DATA

The  Company  had net working capital of $904,370 as at March  31, 2001 compared
to  $707,094  at  December  31, 2000.  This represents an  increase  in  working
capital of 21.8%.  This increase in working capital is attributed  to  increase
in  enrollment  of  membership  into the Capnet IPA Network; increase in monthly
fees  paid  by the contracted health plans to the IPA,  royalties from MedMaster
software  licenses  sales,  as  well as level three support services fee paid by
InterCare.com-dx,  Inc.  ("InterCare")  (a  related  party).

The  selected  financial data set forth above should be read in conjunction with
"Management's  Discussion  and  Analysis  of  Financial Condition and Results of
Operations"  and  the consolidated financial  statements and notes  thereto.

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

The following section contains forward-looking statements that involve risks and
uncertainties,  including  those  referring  to the period of time the Company's
existing  capital  resources  will  meet the Company's future capital needs, the
Company's future operating results, the market acceptance of the services of the
Company, the  Company's  efforts  to  develop new products and services, and the
Company's  planned  investment  in  the  marketing  of  its current services and
research  and  development   with  regard  to  future endeavors.  The  Company's
actual   results  could  differ  materially  from  those  anticipated  in  these
forward-looking  statements  as a result of certain factors, including: domestic
and  global  economic  patterns  and  trends.

LIQUIDITY  AND  CAPITAL  RESOURCES  OF  THE  COMPANY.

On  June  29,  1999,  Dr.  Anthony  C.  Dike joined  the Company as Chairman and
Chief Executive Officer.  Under his employment agreement, the Company was to pay
Dr.  Dike  a base salary of $12,000 per month.   As of April 1, 2000 and up to
March  31,  2001,  the  Company  has  not  paid Dr. Dike any portion of his base
salary  that was calculated to $144,000.

Long-term  cash  requirements,  other  than  normal  operating  expenses,  are
anticipated  for the continued development of the Company's business plans.  The
Company  will need to raise additional funds from investors in order to complete
                                        8
<PAGE>
these  business plans.  There is no assurance that such funds will be available,
and  even  when  available,  the  terms  may  be  very  prohibitive.

RESULTS  OF  OPERATIONS

The  Company  generated  revenues  from  operations of $626,828 during the first
quarter  ended  March  31,  2001,  compared  to  the revenues from operations of
$337,185  during  the  comparable period in 2000.  This represents   an increase
in  revenues  of  86%.  This  increase in revenue is attributed  to the increase
in  enrollment  of  membership  into the Capnet IPA Network; increase in monthly
fees  paid  by  the contracted health plans to the IPA, royalties from MedMaster
software  licenses  sales,  as  well as level three support services fee paid by
InterCare.

The  Company  recorded  a  net  loss from operations  of  $(277,991) during  the
three-month period ended March 31, 2000, compared to net loss from operations of
$(111,297)  during  the  comparable  period  in  2000.

The  increase  in  net  loss  is  attributed  to  the  hiring  of  additional
support-staff,  marketing  and outside  consultants  fees. Of the $665,939 total
operating  expense,  $208,000  was  spent  on  research  and development (Corsys
Group),  the  remaining  $457,939  was  spent  on  general  corporate  purposes,
including  personnel  salaries,  marketing  etc.

Management  anticipates  that  general  operating  expenses will increase, as it
pursues,  vigorously,  its  acquisition  of  new  business opportunities and the
integration  of  the  existing  ones.

PLAN  OF  OPERATIONS

Management  initiated  a  restructuring  plan  during the first quarter of 2001,
necessary  as  a  result  of  the  general  market  condition,  as  well  as the
termination  of  some  of  the  Capnet  IPA  contracts  with  health plans whose
membership  is  less  than  200.

The  Company intends to embark on more aggressive marketing campaign to increase
its  enrollment  of membership into its Healthy Family Program contract with the
County  of  Los  Angeles  Community Health Plan, and LACARE Health Plan. To this
end,  the  Company  has  hired  Dr.  Wesley  Bradford,  MD, MS, MBA, as its Vice
President  Business Development, and Medical Director of its Capnet IPA Network.

On  April  30,  2001,  the  Company  initiated  a  restructuring of its business
operations
whereby  the  operations  of  Corsys  Group  (Israel)  LTD,  the  research  and
development  subsidiary of the Company was consolidated with the core operations
of  the  registrant.  This  restructuring  was  necessitated by the need for the
Company  to
enhance  the  Company's balance sheet, as well as mitigate further losses due to
its  inability  to exploit fully the asset purchased from the Israeli bankruptcy
court  (See  legal  proceedings  below).  As  a  result  of  this  restructuring
exercise,  the  Israel operations were shut down, and all but  the key employees
of  Corsys  Group,  were  laid-off.

RECENT  EVENTS

On  January  5,  2001,  the  Company  held its annual shareholder meeting at the
Ramada  Inn,  in  Culver City, California.  Four of five members of the board of
directors  for  the  year  2001  were  elected.  Also, during  this meeting, the
shareholders  approved  the company's 2001  stock  option  plan.   And, finally,
the  shareholders  approved  the  appointment  of  Haskell  &  White  LLP as the
Company's  independent  auditors.

On  January  25,  2001  the  Company announced that its Capnet Physician Network
renewed  its  contracts  with  the  County of Los Angeles - Department of Health
Services  Community  Health  Plan.   The  agreement  was  extended  for  another
                                        9
<PAGE>
12-month period and the Company projected revenue provision in the range of $1.5
million  to  $2  million  during  the  extension  period.

On  January  30,  2001,  the  Company  announced the effectiveness of its equity
investee's,  InterCare,  SB-2  Filing with the Security and Exchange Commission.
On  February  21,  2001, the Company announced that its wholly-owned subsidiary,
CGI  Communications  Services,  Inc.  ("CGI"), executed a multi-facility service
level  agreement with Primary Doctors Medical Group in Los Angeles to deploy and
implement  the  web-enabled  version of MedMaster suite of clinical application.

On  February  27, 2001, the Company announced that CGI executed a multi-facility
service  level  agreement  with  El  Dorado Community Services Center in the Los
Angeles  area  to  deploy  and  implement  the  web-enabled version of MedMaster
Electronic  Medical  Record  System.

On  March  12,  2001, the Company announced that InterCare executed an exclusive
reseller  agreement with China Business Chain Group for the purpose of marketing
the  Chinese  version  of  MedMaster  suite  of  clinical  applications.

On March 21, 2001, the Company's Board of Directors authorized the repurchase of
up to 5million of the the  Company's common  stocks  from  the  open  market.

PART  II     -  OTHER  INFORMATION

LEGAL  PROCEEDINGS

The  intellectual  property  commonly  known  as  MedMaster(tm),  including  its
sub-systems, source-code  and documentations, was acquired out of the bankruptcy
proceedings   of  Sirius  Computerized  Technologies  Limited  and  Sirius
Technologies  of  America  (collectively,  "Sirius").  The  acquisition  was
made  with  the understanding  that  the  Company  would  have  free  and  clear
title  to  the  intellectual  property.  However,  a  significant  creditor  of
Sirius, Lockheed Martin  Systems  Integration,  Owego  ("Lockheed")  obtained  a
judgment  against  Sirius  and  executed  same  to  obtain  possession  of  the
source-code  underlying  the  Sirius'  MedMaster(tm)  suite  of  software
products,  and  has  expressed  its'  intention  to  exploit  same,  thus
creating  a  big  competition  against  the  registrant.  The  Registrant  has
requested that Sirius and Lockheed come to some negotiated settlement  of  their
dispute  in  order  for  the  asset  to  be  delivered  free  and clear  to  the
Company  as  per  the  terms  of  the  purchase  agreement  of  the intellectual
property  originally  approved  by  the Israeli  Bankruptcy  Courts. As  of this
writing,  no  settlement  agreement  has  been  reached  by  all  parties. If no
agreement is reached, the Company may be forced into seeking redress through the
Israeli  Court  Systems  to  recover all monies spent in salvaging the asset, as
well  as  collateral damages it may have  sustained as a result. There can be no
assurance  that  the  Company will succeed in obtaining any redress from Israeli
Court.  Also, the cost of litigation may be very expensive, and could impact the
results  of  the  registrants'  operation.

ADDITIONAL  INFORMATION

During  the  first quarter of 2001, the board of directors of InterCare approved
an  amendment  to  Mr.  Russ  Lyons  employment agreement retroactively dated to
November 30, 2000.  A significant part of this amendment, is that Mr. Lyon shall
waive  his  option to purchase 500,000 shares of Meridian Holdings, Inc., Common
Stock  at $0.50 per share, in lieu of receiving 200,000 restricted shares of the
InterCare,  at zero par value, pro-rated to the term of his employment agreement
(Please  see  Exhibit  1).

On  April  30,  2001,  the  Company  initiated  a  restructuring of its business
Operations  whereby  the  operations  of  Corsys  Group  (Israel)  LTD,  the
research  and  development  subsidiary  of the Company was consolidated with the
core  operations of  the  registrant.  This  restructuring  was  necessitated by
the  need  for  the  Company  to enhance the Company's balance sheet, as well as
mitigate  further  losses  owing  to  its  inability  to exploit fully the asset
                                        10
<PAGE>
purchased  from  the Israeli bankruptcy court  (See  legal  proceedings  below).
As  a  result  of  this  restructuring  exercise,  the Israel operation was shut
down,  and  all  but  the  key  employees  of  Corsys  Group,  were  laid-off.

                                   SIGNATURE

Pursuant  to  the  requirements  of Section 12 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.

MERIDIAN  HOLDINGS,  INC.

DATE:  May  14,  2001
                                   By:  /s/  Philip  Falese
                                        -------------------
                                             Philip  Falese
                                       Chief  Financial  Officer
















































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