UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended September 30, 2003

Commission File Number 1-8635


                          AMERICAN MEDICAL ALERT CORP.
             (Exact Name of Registrant as Specified in its Charter)

         New York                                     11-2571221
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                  Identification Number)


                3265 Lawson Boulevard, Oceanside, New York 11572
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (516) 536-5850
              (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 __

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest  practicable  date:  7,499,227 shares of $.01 par
value common stock as of November 7, 2003.


<PAGE>

                  AMERICAN MEDICAL ALERT CORP. AND SUBSIDIARIES



                        INDEX                                               PAGE

Part  I  Financial Information

            Report of Independent Accountants                                  1

            Condensed Consolidated Balance Sheets for September 30,
            2003 and December 31, 2002.                                        2

            Condensed Consolidated Statements of Income for the
            Nine Months Ended September 30, 2003 and 2002                      4

            Condensed Consolidated Statements of Income for the
            Three Months Ended September 30, 2003 and 2002                     5

            Condensed Consolidated Statements of Cash Flows for
            the Nine Months Ended September 30, 2003 and 2002                  6

            Notes to Condensed Consolidated Financial Statements               8

            Management's Discussion and Analysis of
            Financial Condition and Results of Operations                     15

Part II  Other Information                                                    26



<PAGE>

Report of Independent Accountants

Board of Directors and Shareholders
American Medical Alert Corp. and Subsidiaries
Oceanside, New York

We have reviewed the condensed  consolidated  balance sheet of American  Medical
Alert Corp. and Subsidiaries as of September 30, 2003 and the related  condensed
consolidated  statements of income for the  nine-month and  three-month  periods
ended  September  30, 2003 and 2002,  and cash flows for the  nine-months  ended
September 30, 2003 and 2002. These financial  statements are the  responsibility
of the company's management.

We  conducted  our  reviews in  accordance  with  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial information consists principally of applying analytical procedures and
making inquiries of persons responsible for financial and accounting matters. It
is  substantially  less in scope  than an audit  conducted  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 reviews, we are not aware of any material modifications that should
be made to the condensed consolidated financial statements referred to above for
them to be in conformity with accounting  principles  generally  accepted in the
United States of America.

We have  previously  audited,  in accordance with auditing  standards  generally
accepted in the United  States of America,  the  consolidated  balance  sheet of
American  Medical Alert Corp. and  subsidiaries as of December 31, 2002, and the
related consolidated  statements of income,  shareholders' equity and cash flows
for the year then ended (not  presented  herein);  and in our report dated March
14, 2003, we expressed an unqualified  opinion on those  consolidated  financial
statements.  In our  opinion,  the  information  set  forth in the  accompanying
condensed  consolidated  balance sheet as of December 31, 2002 is fairly stated,
in all material  respects,  in relation to the  consolidated  balance sheet from
which it has been derived.

/s/ Margolin, Winer & Evens LLP

Margolin, Winer & Evens LLP

November 7, 2003

<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS.

                  AMERICAN MEDICAL ALERT CORP. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                     ASSETS
                                                                             September 30,
                                                                                 2003
                                                                              (Unaudited)       Dec. 31, 2002
                                                                              -----------        -----------
<S>                                                                           <C>                <C>
CURRENT ASSETS:
     Cash                                                                     $ 1,407,710        $   863,417
     Marketable securities                                                             --          2,057,925
     Accounts receivable
     (net of allowance for doubtful accounts of $601,500 and $540,000)          3,120,850          2,984,857
     Notes and other receivables                                                   21,804             75,792
     Inventory                                                                    320,347            373,423
     Prepaid and refundable taxes                                                 191,713            271,572
     Prepaid expenses and other current assets                                    266,332            239,168
     Deferred income taxes                                                        319,000            292,000
     Asset held for sale                                                          352,500                 --
                                                                              -----------        -----------

     Total Current Assets                                                       6,000,256          7,158,154
                                                                              -----------        -----------

FIXED ASSETS:

     (Net of accumulated depreciation and amortization)                         6,770,517          7,221,088
                                                                              -----------        -----------

OTHER ASSETS:

     Long-term portion of notes receivable                                        126,937            143,391
     Intangible assets (net of accumulated amortization of
     $802,503 and $599,304)                                                     2,012,653          1,123,870
     Goodwill (net of accumulated amortization of $58,868)                      1,970,320            961,731
     Other assets                                                                 148,651            218,413
     Deferred income taxes                                                        186,000            154,000
                                                                              -----------        -----------
                                                                                4,444,561          2,601,405
                                                                              -----------        -----------
TOTAL ASSETS                                                                  $17,215,334        $16,980,647
                                                                              ===========        ===========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
     Current portion of notes payable                                         $   298,312        $   293,529
     Accounts payable                                                             314,661            681,927
     Accrued expenses                                                           1,082,053            816,569
     Current portion of capital lease obligations                                  88,341            158,617
     Current portion of put warrant obligation                                    377,750            251,000
     Deferred revenue                                                              59,815            150,294
                                                                              -----------        -----------
     Total Current Liabilities                                                  2,220,932          2,351,936
</TABLE>




                                      -2-
<PAGE>

<TABLE>
<S>                                                                             <C>                  <C>
DEFERRED INCOME TAX LIABILITY                                                          676,000              597,000
LONG-TERM PORTION OF NOTES PAYABLE                                                     849,897            1,079,506
LONG-TERM PORTION OF CAPITAL LEASE OBLIGATIONS                                         142,728              156,448
LONG-TERM PORTION OF PUT WARRANT OBLIGATION                                            244,916              181,000
ACCRUED RENTAL OBLIGATION AND OTHER                                                     89,860               55,500
                                                                                  ------------         ------------
     TOTAL LIABILITIES                                                               4,224,333            4,421,390
                                                                                  ------------         ------------

COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY                                                                        --                   --
     Preferred stock, $.01 par value - authorized, 1,000,000 shares;
     none issued and  outstanding
     Common  stock,  $.01 par  value - authorized  20,000,000 shares;
     issued 7,498,145 and 7,470,649 shares in 2003 and 2002, respectively               74,982               74,706
     Additional paid-in capital                                                      9,058,210            8,999,172
     Retained earnings                                                               3,963,841            3,591,411
                                                                                  ------------         ------------
                                                                                    13,097,033           12,665,289
     Less treasury stock, at cost (43,910 shares)                                     (106,032)            (106,032)
                                                                                  ------------         ------------
     Total Shareholders' Equity                                                     12,991,001           12,559,257
                                                                                  ------------         ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                        $ 17,215,334         $ 16,980,647
                                                                                  ============         ============
</TABLE>

See accompanying notes to condensed financial statements.




                                      -3-
<PAGE>


                  AMERICAN MEDICAL ALERT CORP. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                          Nine Months Ended September 30,
                                                                           2003                    2002
                                                                       ------------           ------------
<S>                                                                    <C>                    <C>
Revenues:
     Services                                                          $ 11,896,156           $ 10,780,348
     Product sales                                                          270,044                234,521
                                                                       ------------           ------------
                                                                         12,166,200             11,014,869
Costs and Expenses (Income):
     Costs related to services                                            5,367,579              5,052,523
     Costs of products sold                                                 138,366                129,429
     Selling, general and administrative expenses                         6,200,899              5,492,509
     Interest expense                                                        64,746                 96,386
     Other income                                                          (147,820)              (333,116)
                                                                       ------------           ------------

Income before Provision for Income Taxes                                    542,430                577,138

Provision for Income Taxes                                                  170,000                274,000
                                                                       ------------           ------------

NET INCOME                                                             $    372,430           $    303,138
                                                                       ============           ============

Net income per share:
     Basic                                                             $        .05           $        .04
                                                                       ------------           ------------
     Diluted                                                           $        .05           $        .04
                                                                       ------------           ------------

Weighted average number of common shares outstanding (Note 3)
     Basic                                                                7,436,685              7,108,812
                                                                       ============           ============

     Diluted                                                              7,621,842              7,562,729
                                                                       ============           ============
</TABLE>

See accompanying notes to condensed financial statements.


                                      -4-
<PAGE>


                  AMERICAN MEDICAL ALERT CORP. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                Three Months Ended September 30,
                                                                                2003                      2002
                                                                            -----------               -----------
<S>                                                                         <C>                       <C>
Revenues:
     Services                                                               $ 4,233,025               $ 3,637,613
     Product sales                                                               78,323                   114,034
                                                                            -----------               -----------
                                                                              4,311,348                 3,751,647
Costs and Expenses (Income):

     Costs related to services                                                1,821,873                 1,733,670
     Costs of products sold                                                      39,331                    66,184
     Selling, general and administrative expenses                             2,219,663                 1,944,303
     Interest expense                                                            25,923                    25,929
     Other expense (income)                                                       2,029                  (161,562)
                                                                            -----------               -----------

Income before Provision for Income Taxes                                        202,529                   143,123

Provision for Income Taxes                                                       45,000                    59,000
                                                                            -----------               -----------

NET INCOME                                                                  $   157,529               $    84,123
                                                                            ===========               ===========

Net income per share:
     Basic                                                                  $       .02               $       .01
                                                                            -----------               -----------
     Diluted                                                                $       .02               $       .01
                                                                            -----------               -----------

Weighted average number of common shares outstanding (Note 3)
     Basic                                                                    7,448,854                 7,426,739
                                                                            ===========               ===========

     Diluted                                                                  7,769,737                 7,796,499
                                                                            ===========               ===========

</TABLE>

See accompanying notes to condensed financial statements.



                                      -5-
<PAGE>


                  AMERICAN MEDICAL ALERT CORP. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                 Nine Months Ended September 30,
                                                                     2003               2002
                                                                 -----------         -----------
<S>                                                              <C>                 <C>
Cash Flows From Operating Activities:

     Net income                                                  $   372,430         $   303,138

     Adjustments  to  reconcile  net income to net cash
       provided by operating activities:

     Provision for deferred income taxes                              20,000                  --
     Depreciation and amortization                                 1,780,545           1,504,512
     Valuation of put warrants                                       190,666              90,000
     Accrued interest income                                              --             (46,827)
     Decrease (increase) in:
       Accounts receivables                                            1,544            (159,513)
       Inventory                                                      53,076              (5,078)
       Prepaid and refundable taxes                                   79,859              21,547
       Prepaid expenses and other current assets                     (27,164)           (141,320)
       Other assets                                                   17,779             (51,044)
     (Decrease) in:
       Accounts payable, accrued expenses and other                  (85,809)           (380,340)
       Deferred revenue                                              (90,479)            (51,341)
                                                                 -----------         -----------

Net Cash Provided by Operating Activities                          2,312,447           1,083,734
                                                                 -----------         -----------

Cash Flows From Investing Activities:

     Expenditures for fixed assets                                (1,242,613)           (571,838)
     Purchase of LMA                                              (1,686,720)                 --
     Investments in marketable securities                          2,057,925          (2,041,929)
     Deposit on medical devices                                       40,320              20,355
     Repayment of notes receivable                                    70,442             196,895
     Increase in goodwill                                           (116,019)                 --
     Payment for account acquisitions, licensing
       agreement and deferred charges                               (566,982)           (440,803)
                                                                 -----------         -----------

Net Cash Used In Investing Activities                             (1,443,647)         (2,837,320)
                                                                 -----------         -----------

Cash Flows From Financing Activities:

     Principal payments under capital lease obligation              (158,995)           (157,654)
     Proceeds from notes payable                                      16,049           1,787,054
     Repayment of notes payable                                     (240,875)         (2,266,121)
     Proceeds from private equity placement                               --           2,730,000
     Payment of fees relating to private equity placement                 --            (208,061)
     Proceeds upon exercise of stock options                          59,314             129,284
                                                                 -----------         -----------

Net Cash (Used in) Provided by Financing Activities                 (324,507)          2,014,502
                                                                 -----------         -----------
</TABLE>

See accompanying notes to condensed financial statements.


                                      -6-
<PAGE>


                  AMERICAN MEDICAL ALERT CORP. AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                             Nine Months Ended September 30,
                                                                 2003             2002
                                                              ----------        ----------
<S>                                                           <C>               <C>
         Net Increase in Cash                                 $  544,293        $  260,916

         Cash, Beginning of Period                               863,417           818,696
                                                              ----------        ----------

         Cash, End of Period                                  $1,407,710        $1,079,612
                                                              ==========        ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

CASH PAID DURING THE PERIOD FOR INTEREST                      $   64,746        $   90,980
                                                              ==========        ==========

CASH PAID DURING THE PERIOD FOR INCOME TAXES                  $   66,065        $  253,410
                                                              ==========        ==========

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
 AND FINANCING ACTIVITY:

 Fixed assets recorded under capital lease obligations        $   75,000        $       --


See Note 7 for assets and liabilities acquired in connection with the purchase of LMA.

</TABLE>

See accompanying notes to condensed financial statements.



                                      -7-
<PAGE>

                  AMERICAN MEDICAL ALERT CORP. AND SUBSIDIARIES


              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

1.    General:

These  financial  statements  should be read in  conjunction  with the financial
statements  and notes  thereto for the year ended  December 31, 2002 included in
the Company's Annual Report on Form 10-KSB.

2.    Results of Operations:

In the opinion of management,  the accompanying  unaudited  condensed  financial
statements  contain  all  adjustments   (consisting  only  of  normal  recurring
accruals) necessary to present fairly the financial position as of September 30,
2003 and the results of operations for the nine and three months ended September
30, 2003 and 2002,  and cash flows for the nine months ended  September 30, 2003
and 2002.

The accounting  policies used in preparing  these  financial  statements are the
same as those described in the December 31, 2002 financial statements, except as
described in Note 3.

The results of operations for the nine and three months ended September 30, 2003
are not  necessarily  indicative  of the  results to be  expected  for any other
interim period or for the full year.

3.    New Pronouncements:

In April 2002,  SFAS No. 145,  "Rescission of FASB  Statements No. 4, 44 and 64,
Amendment of FASB Statement No. 13, and Technical  Corrections" was issued. This
statement (i) eliminates  extraordinary  accounting treatment for a gain or loss
reported on the  extinguishment of debt, (ii) eliminates  inconsistencies in the
accounting   required  for   sale-leaseback   transactions   and  certain  lease
modifications  with similar  economic  effects,  and (iii) amends other existing
authoritative pronouncements to make technical corrections, clarify meanings, or
describe their applicability under changed conditions.  The Company adopted SFAS
No. 145 effective  January 1, 2003. The adoption of this statement has not had a
material impact on the consolidated results of operations or financial position.

In June  2002,  SFAS No.  146,  "Accounting  for Costs  Associated  with Exit or
Disposal  Activities" was issued.  This statement  nullifies  existing  guidance
related  to the  accounting  and  reporting  for costs  associated  with exit or
disposal  activities and requires that the fair value of a liability  associated
with an exit or disposal  activity be recognized when the liability is incurred.
Under  previous  guidance,  certain exit costs were permitted to be accrued upon
management's  commitment  to an exit plan,  which is generally  before an actual
liability has been incurred. The provisions of this statement are required to be


                                      -8-
<PAGE>


adopted for all exit or disposal  activities  initiated after December 31, 2002.
This statement will not impact any liabilities  recorded prior to adoption.  The
Company  adopted SFAS No. 146  effective  January 1, 2003.  The adoption of this
statement  has  not  had a  material  impact  on  the  consolidated  results  of
operations or financial position.

In December  2002,  the FASB issued  SFAS No. 148,  "Accounting  for Stock Based
Compensation - Transition and  Disclosure,  an Amendment of FASB Statement 123".
SFAS No. 148 provides new  transition  alternatives  for companies  adopting the
fair value method of accounting for stock-based  compensation prescribed by SFAS
No. 123. SFAS No. 148 also requires that  disclosures of the pro forma effect of
using the fair value method of accounting for stock-based employee  compensation
be displayed more prominently and in tabular format. Additionally,  SFAS No. 148
requires  disclosures of the pro forma effect in interim  financial  statements.
The Company has chosen to continue to account for stock-based compensation using
the  intrinsic  value  method  prescribed  in APB  Opinion  No.  25 and  related
interpretations.  The Company adopted the annual  disclosure  provisions of SFAS
No. 148 in its financial report for the year ended December 31, 2002 and adopted
the interim  disclosure  provisions  for its  financial  reports for the quarter
ended March 31, 2003.

4.    Accounting for Stock-Based Compensation:

The Company  has three  stock-based  employee  compensation  plans.  The Company
accounts for those plans under the recognition and measurement principles of APB
Opinion  No.  25,  "Accounting  for Stock  Issued  to  Employees",  and  related
interpretations.  No stock-based employee  compensation cost is reflected in net
income,  as all options granted under those plans had an exercise price equal to
the  market  value of the  underlying  common  stock on the date of  grant.  The
following table  illustrates the effect on net income (loss) and earnings (loss)
per share if the Company had applied the fair value  recognition  provisions  of
SFAS  No.  123,  "Accounting  for  Stock-Based   Compensation,"  to  stock-based
compensation.

<TABLE>
<CAPTION>
                                   Nine Months Ended September 30,           Three Months Ended  September 30,
                                       2003                2002                    2003              2002
                                   -----------         -----------             -----------        ----------
<S>                                <C>                 <C>                     <C>                <C>
Net income, as reported            $   372,430         $   303,138             $   157,529        $   84,123
Deduct: Total stock-based
employee compensation
  expense determined under
  fair value based method             (183,585)           (414,101)                     --           (97,683)
                                   -----------         -----------             -----------        ----------

Pro forma net income (loss)        $   188,845         $  (110,963)            $   157,529        $  (13,560)

Earnings (loss) per share:
  Basic - as reported              $      0.05         $      0.04             $      0.02        $     0.01

  Basic - pro forma                $      0.03         $     (0.02)            $      0.02        $     0.00

  Diluted - as reported            $      0.05         $      0.04             $      0.02        $     0.01

  Diluted - pro forma              $      0.02         $     (0.01)            $      0.02        $     0.00
</TABLE>


                                      -9-
<PAGE>

The weighted  average grant date fair value of options  granted  during the nine
months  ended   September   30,  2003  and  2002  was  $103,352  and   $532,701,
respectively. During the three months ended September 30, 2003 and 2002 the fair
value of options granted was $-0- and $3,653, respectively.

The fair value of options at date of grant was estimated using the Black-Scholes
model with the following weighted average assumptions:

<TABLE>
<CAPTION>
                                         Nine Months Ended September 30,        Three Months Ended September 30,
                                           2003                2002                2003                2002
                                           ----                ----                ----                ----
<S>                                      <C>                  <C>                  <C>                 <C>
Expected life (years)                     2                    2                    --                  2

Risk free interest rate                   2.02%                2.95%                --                  2.04%

Expected volatility                      38.83%               37.32%                --                 39.34%
Expected dividend yield                    --                   --                  --                   --
</TABLE>

5.    Earnings Per Share:

Earnings per share data for the nine and three months ended  September  30, 2003
and 2002 is presented in conformity with SFAS No. 128, "Earnings Per Share".

The following table is a  reconciliation  of the numerators and  denominators in
computing earnings per share:

<TABLE>
<CAPTION>
                                                             Income                  Shares                        Per-Share
Nine Months Ended September 30, 2003                       (Numerator)            (Denominator)                     Amounts
------------------------------------                     -------------            -------------                  ------------
<S>                                                          <C>                          <C>                          <C>
Basic EPS - Income available to
  common stockholders                                        $ 372,430                    7,436,685                    $.05
                                                                                                                       ====
Effect of dilutive securities -
 Options and warrants                                               --                      185,157
                                                             ---------                    ---------
Diluted EPS - Income available
to common stockholders and
 assumed conversions                                         $ 372,430                    7,621,842                    $.05
                                                             =========                    =========                    ====

Three Months Ended September 30, 2003
-------------------------------------

Basic EPS -Income available to
 common stockholders                                         $ 157,529                    7,448,854                    $.02
                                                                                                                       ====
Effect of dilutive securities -
 Options and warrants                                               --                      320,883
                                                             ---------                    ---------

Diluted EPS - Income available to  common
stockholders and assumed conversions                         $ 157,529                    7,769,737                    $.02
                                                             =========                    =========                    ====
</TABLE>



                                      -10-
<PAGE>

<TABLE>
<CAPTION>
Nine Months Ended September 30, 2002
------------------------------------

<S>                                                          <C>                       <C>                            <C>
Basic EPS - Income available to
 common stockholders                                         $ 303,138                    7,108,812                    $.04
                                                                                                                       ====
Effect of dilutive securities -
 Options and warrants                                               --                      453,917
                                                             ---------                    ---------

Diluted EPS - Income available to common
stockholders and assumed conversions                         $ 303,138                    7,562,729                    $.04
                                                             =========                    =========                    ====

Three Months Ended September 30, 2002
-------------------------------------

Basic EPS - Income available to
 common stockholders                                         $  84,123                    7,426,739                    $.01
                                                                                                                       ====
Effect of dilutive securities -
 Options and warrants                                               --                      369,760
                                                             ---------                    ---------

Diluted EPS - Income available to common
stockholders and assumed conversions                         $  84,123                    7,796,499                    $.01
                                                             =========                    =========                    ====
</TABLE>


6.    Asset Held for Sale:

As of June 30, 2003 the Company  reclassified  from fixed  assets to assets held
for sale, a condominium  previously used in the telephone  after-hours answering
service  ("TAS")  operation.  In  April  2003,  the  Company  relocated  its TAS
employees  from the  condominium  to its new facility in Long Island  City,  New
York. The Company  anticipates selling this asset, which is stated at historical
cost, during 2003.

7.    Acquisition:

On June 30, 2003, the Company acquired  substantially  all of the assets of Live
Message America,  Inc.  ("LMA"),  a provider of telephone  after-hour  answering
services and stand-alone voice mail services.  The purchase price consisted of a
cash payment of $1,607,818 plus professional fees of $78,902. A potential exists
for the payment of additional purchase price consideration based on a percentage
of gross  revenue of the  acquired  business  if certain  thresholds  concerning
revenue and earnings are met. The results of  operations  of LMA are included in
the TAS segment as of the date of acquisition.

The  following  table  summarizes  the fair  values of the assets  acquired  and
liabilities  assumed at the date of  acquisition.  The Company  received a third
party  valuation of certain  intangible  assets in determining the allocation of
the purchase price.

     Accounts receivable                        $       137,537
     Property and equipment                              75,000
     Non-compete agreement                               50,000
     Customer List                                      550,000
     Goodwill                                           892,570
     Customer deposits                                  (18,387)
                                                ---------------

     Cash paid to acquire LMA                   $     1,686,720
                                                ===============



                                      -11-
<PAGE>

Unaudited pro forma results of  operations  for the nine months ended  September
30, 2003 and 2002 and for the three  months ended  September  30, 2002 as if LMA
had been  consolidated as of the beginning of the year,  include estimates which
management believes are reasonable, are as follows:

<TABLE>
<CAPTION>
                               Nine Months Ended September 30,           Three Months Ended September 30,
                            ------------------------------------        ----------------------------------
                                 2003                  2002                 2003                  2002
                            --------------        --------------        -------------        -------------
<S>                         <C>                   <C>                   <C>                  <C>
Revenue                     $   12,910,000        $   12,120,000        $   4,310,000        $   4,120,000
Net income                         427,000               393,000              158,000              117,000
Net income per share
     Basic                  $          .06        $          .06        $         .02        $         .02
                            ==============        ==============        =============        =============
     Diluted                $          .06        $          .05        $         .02        $         .02
                            ==============        ==============        =============        =============
</TABLE>

The  unaudited  pro forma  results of  operations  for the nine and three months
ended September 30, 2003 and 2002 do not purport to represent what the Company's
results of operations would actually have been had the acquisition been effected
for the period presented,  or to predict the Company's results of operations for
any future period.

8.    Major Customers:

Since  1983,  the Company  has  provided  Personal  Emergency  Response  Systems
("PERS") services to the City of New York's Human Resources  Administration Home
Care Service  Program  ("HCSP").  Since January  1999,  the Company has provided
services  to  the  City  of New  York  under  extensions  and  contracts  issued
periodically.  The most recent one-year contract extension, which reflects terms
and conditions present in the original contract will remain in effect until June
30, 2004 unless an earlier  determination  is made in the RFP process  described
below.  During the nine months ended  September 30, 2003 and 2002, the Company's
revenues from this contract represented 18% and 24%, respectively,  of its total
revenue.

In November 2002, in response to a Request For Proposal  ("RFP") issued by HCSP,
AMAC and several other companies submitted proposals to provide PERS services on
behalf  of the City of New York for the  period  July 1, 2003  through  June 30,
2006.  As of November 7, 2003,  HCSP has not awarded the  contract to any vendor
under the submitted  proposal and AMAC continues to service the City of New York
under the same terms and conditions present in the original contract.

During any contract RFP process,  there can be no assurance  that the same level
of revenues  will be sustained due to a variety of factors,  including  pricing,
number of subscribers to be serviced,  and the amount of time that passes before
the renewal  agreement is acted upon by HCSP.  While the Company has reduced its
dependence on revenue from HCSP, a significant  amount of the Company's  revenue
could be lost, albeit over a protracted period, if the contract with HCSP is not
maintained  or is  maintained at a  significantly  lower level of revenue.  This


                                      -12-
<PAGE>

could have a material  adverse  effect on operating  results and cash flows.  In
addition, it is possible that significant  adjustments to leased medical devices
associated  with the contract would occur.  The extent and  significance  of the
adjustments  will be dependent upon the length of the transition  period subject
to management's ability to place these devices with other providers.

As of  September  30,  2003 and  December  2002,  accounts  receivable  from the
contract  represented  31% and 41%,  respectively,  of accounts  receivable  and
leased medical devices in service under the contract  represented  approximately
19% and 20%, respectively, of leased medical devices.

9.    Segment Reporting:

The Company has two reportable  segments,  Personal  Emergency  Response Systems
("PERS") and Telephone After-Hours Answering Services ("TAS"), which is provided
through the  Company's  HCI  subsidiary,  which  acquired  the assets of Harriet
Campbell  Inc. on  November  21, 2000 and  acquired  the assets of Live  Message
America, Inc. (LMA) on June 30, 2003.

The table  below  provides  a  reconciliation  of segment  information  to total
consolidated  information for the nine and three months ended September 30, 2003
and 2002:

<TABLE>
<CAPTION>

                                                               2003
                                                               ----

                                                            PERS                 TAS                Other            Consolidated
                                                        -----------         ------------        ------------         ------------
<S>                                                    <C>                  <C>                 <C>                  <C>
Nine Months Ended September 30, 2003
------------------------------------
Revenue                                                $  9,346,212         $  2,591,355        $    228,633         $ 12,166,200
Income before provision for income taxes                     95,512              446,685                 233              542,430
Total assets                                             12,461,954            4,444,210             309,170           17,215,334


                                                            PERS                 TAS                Other            Consolidated
                                                        -----------         ------------        ------------         ------------
Three Months Ended September 30, 2003
-------------------------------------

Revenue                                                $  3,117,435         $  1,111,892        $     82,021         $  4,311,348
Income (loss) before provision for income taxes              (1,719)             196,567               7,681              202,529
</TABLE>



                                                               -13-
<PAGE>

<TABLE>
<CAPTION>
                                                               2002
                                                               ----

                                                            PERS                 TAS                Other            Consolidated
                                                        -----------         ------------        ------------         ------------
Nine Months Ended September 30, 2002
------------------------------------

<S>                                                    <C>                  <C>                 <C>                  <C>
Revenue                                                $  8,988,425         $  1,904,124        $    122,320         $ 11,014,869
Income (loss) before provision for income taxes             286,759              295,352              (4,973)             577,138
Total assets                                             13,847,601            2,288,150             224,724           16,360,475


                                                            PERS                 TAS                Other            Consolidated
                                                        -----------         ------------        ------------         ------------
Three Months Ended September 30, 2002
-------------------------------------

Revenue                                                $  3,028,969         $    675,407        $     47,271         $  3,751,647
Income (loss) before provision for income taxes              41,146              108,210              (6,233)             143,123
</TABLE>


10.   Commitments and Contingencies:

On January 14, 2002, the Company  entered into an operating  lease agreement for
space in Long  Island  City,  New York in an effort to  consolidate  its HCI and
Oceanside  ERC and  Customer  Service  facilities.  The  Company  believes  that
centralization  of the ERC,  Customer Service and H-Link OnCall  operations will
provide  additional  efficiencies  and  facilitate  the projected  growth of the
H-Link and Disease Management Monitoring  operations.  The lease term is fifteen
(15) years and  commenced in April 2003 when the property was first  occupied by
the Company. The lease calls for minimum annual rentals of $269,500,  subject to
a 3% annual  increase  plus  reimbursement  for real estate  taxes.  The Company
anticipates receiving  significant  Relocation and Employment Assistance Program
(REAP) and other tax  incentive  and cost savings  benefits from the City of New
York in connection  with the occupancy of this facility.  The Company also plans
to consolidate certain other facilities and is offering for sale the condominium
previously occupied by HCI Acquisition Corp.

The Company is aware of various  threatened or pending litigation claims against
the Company  relating to its products  and services and other claims  arising in
the ordinary course of its business. The Company has given its insurance carrier
notice of such claims and it believes there is sufficient  insurance coverage to
cover any such claims.  In any event,  the Company  believes the  disposition of
these matters will not have a material adverse effect on the financial condition
of the Company.

On March 2, 2001  American  Medical  Alert  Corp.  was served with a Summons and
Complaint by a former employee seeking to recover damages for discrimination and
harassment in connection  with her  employment  and the  associated  termination
thereof.  The  plaintiff  seeks to recover the sum of $750,000 for  compensatory
damages and $750,000 for punitive damages. In June 2003 the Company entered into
a settlement  agreement with this former employee for a nominal amount which was
previously accrued.



                                      -14-
<PAGE>

11.   Employment Agreement

On August 12, 2003,  the Company  entered into an employment  agreement with Mr.
Howard M. Siegel  pursuant to which he is employed  full-time  as the  Company's
Chairman of the Board,  President and Chief Executive Officer. The agreement has
a term of three years four and a half months and expires on December  2006.  The
agreement  provides  for an annual base salary of $300,000  per annum during the
period  beginning June 1, 2003 and ending  December 31, 2003, with a 5% increase
in each of the subsequent three fiscal years. Mr. Siegel will receive additional
compensation  based on the  Company  meeting  certain  criteria  relating to Net
Income before Provision for Income Taxes.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          ---------------------------------------------------------------
          RESULTS OF  OPERATIONS.
          -----------------------

The following  discussion and analysis  provides  information  which  management
believes is relevant to an assessment and understanding of the Company's results
of operations and financial  condition.  This  discussion and analysis should be
read in conjunction with the consolidated  financial statements contained in the
latest Annual Report dated December 31, 2002.

Statements   contained  in  this   Quarterly   Report  on  Form  10-QSB  include
"forward-looking statements" within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act,  including,  in particular  and without
limitation,   statements  contained  herein  under  the  heading   "Management's
Discussion  and  Analysis of  Financial  Condition  and Results of  Operations."
Forward-looking  statements  involve known and unknown risks,  uncertainties and
other factors which could cause the Company's  actual  results,  performance and
achievements,  whether expressed or implied by such forward-looking  statements,
not to occur or be realized.  These include uncertainties relating to government
regulation,  technological  changes,  our expansion plans and product  liability
risks. Such  forward-looking  statements  generally are based upon the Company's
best estimates of future results, performance or achievement, based upon current
conditions and the most recent results of operations. Forward-looking statements
may be  identified  by the use of  forward-looking  terminology  such as  "may,"
"will," "expect,"  "believe,"  "estimate,"  "anticipate,"  "continue" or similar
terms, variations of those terms or the negative of those terms.

You should carefully  consider such risks,  uncertainties and other information,
disclosures  and discussions  which contain  cautionary  statements  identifying
important  factors that could cause  actual  results to differ  materially  from
those  provided in the  forward-looking  statements.  Readers  should  carefully
review the risk  factors and any other  cautionary  statements  contained in the
Company's  Annual  Report on Form 10-KSB and other public  filings.  The Company
undertakes  no  obligation  to  publicly  update or revise  any  forward-looking
statements, whether as a result of new information, future events or otherwise.


                                      -15-
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

In April 2002, the Company raised $2,521,939,  after expenses of $208,061,  in a
private  equity  placement of the Company's  common stock and warrants.  Several
investors purchased an aggregate of 910,000 shares of the Company's common stock
and  warrants to purchase  227,500  shares of the  Company's  common stock at an
exercise price of $3.80 per share and  exercisable  until April 2007. As part of
this  transaction,  the Company  registered  for resale the common stock and the
common stock underlying the warrants sold in the private placement.  The Company
has been  utilizing a majority  of the  proceeds  from this  offering to further
execute its business  expansion  and  diversification  strategy  into the remote
patient  monitoring  and  medical  contact  center  industries,   including  its
initiative with HHN.

In connection  with the private  placement,  the Company issued to the placement
agent two  warrants to purchase  91,000 and 22,750  shares of common stock at an
exercise  price of $3.83 per share and  $4.17  per  share,  respectively.  These
warrants have the same terms as the warrants issued with the common stock.

On May 20, 2002, the Company entered into an agreement with a bank,  pursuant to
which it received a credit facility of $3,000,000, which includes a term loan of
$1,500,000  and a  revolving  credit line that  permits  maximum  borrowings  of
$1,500,000  (based  on  eligible  receivables,  as  defined  in the  agreement).
Borrowings  under the term loan will bear interest at either (a) LIBOR plus 3.5%
or (b) the prime rate or the federal funds effective rate plus .5%, whichever is
greater,  plus 1.0% and the  revolving  credit line will bear interest at either
(a) LIBOR plus 3.0% or (b) the prime rate or the federal  funds  effective  rate
plus .5%,  whichever is greater,  plus .5%. The Company has the option to choose
between the two interest rate options  under the term loan and revolving  credit
line.  The term loan is payable in equal monthly  principal  payments of $25,000
over five years while the  revolving  credit line is available  for three years.
The  outstanding  balance on the term loan at September 30, 2003 was $1,100,000.
There were no amounts  outstanding on the revolving credit line at September 30,
2003.

At September  30, 2003,  the Company was in compliance  with its loan  covenants
under the agreement dated May 20, 2002 and as amended on August 11, 2003.

The following table is a summary of the Company's contractual  obligations as of
September 30, 2003:
<TABLE>
<CAPTION>
                                                                   Payments Due by Period
-------------------------------------------------------------------------------------------------------------------------
Contractual  Obligations                   Total         Less than          1-3 years        4-5 years      After 5 years
                                                         1 year
-------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>              <C>              <C>              <C>              <C>
Revolving Credit Line                   $      -0-
-------------------------------------------------------------------------------------------------------------------------
Debt                                    $ 1,148,209      $   298,312      $   849,897
-------------------------------------------------------------------------------------------------------------------------
Capital Leases                          $   231,069      $    88,341      $   142,728
-------------------------------------------------------------------------------------------------------------------------
Operating Leases                        $ 5,845,476      $   532,522      $ 1,579,697      $   624,985      $ 3,108,272
-------------------------------------------------------------------------------------------------------------------------
Put Warrant Obligation                  $   820,000      $   400,000      $   420,000
-------------------------------------------------------------------------------------------------------------------------
Total Contractual Obligations           $ 8,044,754      $ 1,319,175      $ 2,992,322      $   624,985      $ 3,108,272
-------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                      -16-
<PAGE>

The Company's  working  capital on September 30, 2003 was $3,779,324 as compared
to $4,806,218 on December 31, 2002.  The Company  believes that its present cash
and working capital position combined with its borrowing  availability under its
credit facility and future  anticipated cash flow generated from operations will
be sufficient  to meet its cash and working  capital needs for at least the next
12  months.   During  2003,  the  Company   anticipates  it  will  make  capital
expenditures of approximately $1,500,000 - $1,750,000 for the enhancement of its
management information systems,  leasehold improvements in its Long Island City,
New York  premises,  and the  production  and  purchase  of the PERS  Buddy  and
additional  PERS.  For the nine months ended  September 30, 2003,  approximately
$1,250,000 was spent on capital expenditures.

Other Factors:

On June 30, 2003, the Company acquired  substantially  all of the assets of Live
Message America,  Inc.  ("LMA"),  a provider of telephone  after-hour  answering
services and stand-alone voice mail services.  The purchase price consisted of a
cash payment of $1,607,818 plus professional fees of $78,902. A potential exists
for the payment of additional purchase price consideration based on a percentage
of gross  revenue of the  acquired  business  if certain  thresholds  concerning
revenue and earnings are met. The results of  operations  of LMA are included in
the TAS segment as of the date of acquisition.

On January 14, 2002, the Company  entered into an operating  lease agreement for
space in Long  Island  City,  New York in an effort to  consolidate  its HCI and
Oceanside  ERC and  Customer  Service  facilities.  The  Company  believes  that
centralization  of the ERC,  Customer Service and H-Link OnCall  operations will
provide  additional  efficiencies  and  facilitate  the projected  growth of the
H-Link and Disease Management Monitoring  operations.  The lease term is fifteen
(15) years and  commenced in April 2003 when the property was first  occupied by
the Company. The lease calls for minimum annual rentals of $269,500,  subject to
a 3% annual  increase  plus  reimbursement  for real estate  taxes.  The Company
anticipates receiving  significant  Relocation and Employment Assistance Program
(REAP) and other tax  incentive  and cost savings  benefits from the City of New
York in connection  with the occupancy of this facility.  The Company also plans
to consolidate certain other facilities and is offering for sale the condominium
previously occupied by HCI Acquisition Corp.



                                      -17-
<PAGE>

On  November  1,  2001,  the  Company  entered  into  a  Cooperative  Licensing,
Development,  Services and Marketing  Agreement  with HHN (the "HHN  Agreement")
pursuant to which the Company has  developed,  with the assistance of HHN, a new
integrated  appliance  combining the features of the Company's PERS product with
HHN's  technology.  Pursuant to the HHN Agreement,  the Company is the exclusive
manufacturer and distributor (based on achievement of certain sales milestones),
in the United  States,  of an enhanced  PERS system that  combines the Company's
traditional  safety  monitoring  features  with  HHN's  internet  based  disease
management  monitoring  technology.  The HHN Agreement  has a minimum  five-year
term,  and also provides for the payment by the Company of certain fees based on
the  service  revenue  derived  from the  enhanced  PERS  product.  The  Company
anticipates the costs  associated  with the licensing,  research and development
and marketing with respect to the HHN Agreement to approximate  $2,000,000.  The
cost of the licensing component will aggregate $1,000,000, the full amount which
was recorded when certain  milestones  under the HHN  agreement  were met by the
Company in July 2003. The cost is being amortized over the remaining  portion of
the  initial  five year  term of the HHN  agreement.  As of  November  7,  2003,
$689,310 has been paid towards the licensing component and the remaining balance
of  $310,690  has  been  accrued.  Related  professional  fees of  approximately
$115,000 have been capitalized.

Since  1983,  the Company  has  provided  Personal  Emergency  Response  Systems
("PERS") services to the City of New York's Human Resources  Administration Home
Care Service  Program  ("HCSP").  Since January  1999,  the Company has provided
services  to  the  City  of New  York  under  extensions  and  contracts  issued
periodically.  The most recent one-year contract extension, which reflects terms
and conditions present in the original contract will remain in effect until June
30, 2004 unless an earlier  determination  is made in the RFP process  described
below.  During the nine months ended  September 30, 2003 and 2002, the Company's
revenues from this contract represented 18% and 24%, respectively,  of its total
revenue.

In November 2002, in response to a Request For Proposal  ("RFP") issued by HCSP,
AMAC and several other companies submitted proposals to provide PERS services on
behalf  of the City of New York for the  period  July 1, 2003  through  June 30,
2006.  As of November 7, 2003,  HCSP has not awarded the  contract to any vendor
under the submitted  proposal and AMAC continues to service the City of New York
under the same terms and conditions present in the original contract.

During any contract RFP process,  there can be no assurance  that the same level
of revenues  will be sustained due to a variety of factors,  including  pricing,
number of subscribers to be serviced,  and the amount of time that passes before
the renewal  agreement is acted upon by HCSP.  While the Company has reduced its
dependence on revenue from HCSP, a significant  amount of the Company's  revenue
could be lost, albeit over a protracted period, if the contract with HCSP is not
maintained  or is  maintained at a  significantly  lower level of revenue.  This
could have a material  adverse  effect on operating  results and cash flows.  In
addition, it is possible that significant  adjustments to leased medical devices
associated  with the contract would occur.  The extent and  significance  of the
adjustments  will be dependent upon the length of the transition  period subject
to management's ability to place these devices with other providers.



                                      -18-
<PAGE>

The  Company's  management  has  developed  and  implemented  a business plan to
minimize its  reliance on HCSP.  The  Company's  business  plan,  which has been
implemented  over the last two years, is focused on building the subscriber base
outside of the New York City contract,  through consumers,  healthcare agencies,
health maintenance  organizations,  retirement communities,  hospitals and other
governmental  agencies.  In  addition,  the  Company  has  expanded  its product
offering to physician based telephone  answering  services,  disease  management
monitoring and other  products,  which now constitute  approximately  23% of the
Company's gross revenue.  The Company has acquired an additional physician based
telephone  answering  service business which will further reduce its reliance on
HCSP.  The Company is also  continuing  to expand its product  offerings  in the
disease  management and monitoring  area and is continuing to invest in research
and development for further product and service diversification.

RESULTS OF OPERATIONS
---------------------

THREE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO THREE MONTHS ENDED
--------------------------------------------------------------------
SEPTEMBER 30, 2002:
-------------------

The Company's gross revenue, which consists primarily of monthly rental revenues
("MRR"),  increased  $559,701 for the three months ended  September  30, 2003 as
compared to the same period in 2002, an increase of 15%.  Revenue  increased due
to two primary factors. On June 30, 2003 the Company acquired  substantially all
of  the  assets  of  LMA,  a  telephone   answering  service,   which  generated
approximately  $350,000.  The Company realized  approximately  $100,000 from the
rental of the  Health  Buddy  unit,  whereas  for the same  period in 2002,  the
Company only generated minimal revenue from the Health Buddy unit as the product
was launched in the second  quarter of 2002.  The balance of the increase is due
to a variety of other  items  including  revenues  generated  from the  existing
OnCall telephone answering service and security monitoring business.

Costs  related to  services  increased  by $88,203  for the three  months  ended
September  30, 2003 as  compared to the same period in 2002,  an increase of 5%.
Costs related to services,  as a percentage of service  revenues,  for the three
months  ended  September  30,  2003  and 2002  were  43% and 48%,  respectively.
Although  costs related to services has increased,  the Company has  effectively
managed  these costs  thereby  achieving a reduction in costs as a percentage of
revenue which has resulted in a higher gross profit  percentage.  An increase of
approximately $145,000 was primarily due to additional personnel costs resulting
from the  acquisition  of LMA on June 30,  2003.  This  increase was offset by a
reduction of personnel in the customer service and telephone  answering  service
departments,  which is directly attributable to the relocation of the monitoring
center and telephone answering service into one facility, generating a reduction
of approximately $70,000.

Selling, general and administrative expenses increased by $275,360 for the three
months  ended  September  30, 2003 as  compared  to the same period in 2002,  an
increase of 14%. Selling,  general,  and administrative  expenses expressed as a
percentage of total  revenues for the three months ended  September 30, 2003 and
2002 was 52%. The increase in selling,  general and administrative  expenses for
the three months ended September 30, 2003 is primarily due the following items:

o    Rent Expense
     Rent expense increased by approximately $100,000 for the three months ended
     September 30, 2003,  as compared to the same period in 2002,  primarily due
     to the  Company  occupying  a new  facility  effective  April 1, 2003.  The
     Company  anticipates  receiving   significant   Relocation  and  Employment
     Assistance Program (REAP) and other tax incentive and cost savings benefits
     from the City of New York which will mitigate the increase in rent expense.
     See Provision for Income Taxes below.

o    Amortization Expense
     Amortization primarily increased due to the Company commencing amortization
     of its costs associated with its cooperative  licensing agreement with HHN.
     This resulted in a $75,000 expense for the three months ended September 30,
     2003.  Additionally,  with the  acquisition  of LMA,  the Company  recorded
     certain  intangible  assets which are being  amortized  that  resulted in a
     $30,000 expense.

o    Put Warrant Obligation
     In connection with the HCI  acquisition,  the Company issued to the selling
     stockholder  two  warrants  to  purchase  133,333.33  and  105,000  shares,
     respectively,  of the Company's common stock at an exercise price of $2 per
     share.  The warrants are  exercisable  until November 20, 2005 and December
     20,  2005,  respectively.  In  addition,  the selling  stockholder  has the
     option, only during a period of ten trading days, beginning on November 21,
     2003  and  2005,  respectively,  to  require  the  Company,  under  certain
     circumstances,  to  redeem  the  warrants  (the  Put  Option)  at $5 or $6,
     respectively, less the exercise price per share of $2. Based on a valuation
     of the  warrants  and the right of  redemption  of the  warrantholder,  the
     Company  recorded  $40,000  more  expense  during  the three  months  ended
     September 30, 2003, as compared to the same period in 2002.

o    Expenses - LMA
     In connection with the acquisition of LMA, the Company has incurred certain
     selling  and   administrative   costs.  This  resulted  in  an  expense  of
     approximately $153,000 for the three months ended September 30, 2003.

These  increases were partially  offset by a reduction in research & development
and  consulting  costs for the three  months  ended  September  30,  2003  which
aggregated approximately $100,000.

Interest  expense for the three  months  ended  September  30, 2003 and 2002 was
$25,923 and  $25,929,  respectively.  The Company  continued  to reduce its bank
borrowing levels for the three months ended 2003, as compared to the same period
in 2002, however, the corresponding savings in interest on these borrowings were
offset by increased  interest  relating to a new capital  lease and financing of
certain insurance costs for 2003.



                                      -19-
<PAGE>

Other income  (expense)  for the three months ended  September 30, 2003 and 2002
was  $(2,029)  and  $161,562,  respectively.  The  decrease of $163,591 in other
income was primarily due to the Company being reimbursed by a vendor during 2002
for  costs  incurred  in  connection  with  the  replacement  of  activators  of
approximately  $127,000.  As of March 31,  2003,  the  replacement  program  was
substantially completed and the vendor paid all costs incurred by the Company in
connection with this program. Additionally, the Company realized interest income
in 2002 of  approximately  $23,000  on funds  placed  in  short-term  marketable
securities.  These funds were used  towards the  acquisition  in LMA on June 30,
2003.

The  Company's  income  before  provision  for income taxes for the three months
ended  September  30, 2003 was  $202,529  as  compared to $143,123  for the same
period in 2002. The increase of $59,406 for the three months ended September 30,
2003  primarily  resulted  from an increase in revenues  from services and gross
profit offset by an increase in selling,  general and administrative costs and a
decrease in other income.

The Company's  provision  for income taxes for the three months ended  September
30, 2003 was  $45,000 as  compared  to $59,000 for the same period in 2002.  The
decrease of $14,000 for the three months ended  September  30, 2003 is primarily
due to the fact that the  Company  anticipates  receiving  significant  REAP and
other tax  incentive and cost savings  benefits  from the City of New York.  The
REAP  benefit is  calculated  based on the number of hours  worked by  employees
relocated to this  facility  from other Company  locations.  These  benefits are
estimated to be approximately $180,000 for 2003.

NINE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO NINE MONTHS ENDED
------------------------------------------------------------------
SEPTEMBER 30, 2002:
-------------------

The Company's gross revenue, which consists primarily of monthly rental revenues
("MRR"), increased by $1,151,331 for the nine months ended September 30, 2003 as
compared to the same period in 2002, an increase of 10%.  Revenue  increased due
to several factors.  On June 30, 2003 the Company acquired  substantially all of
the assets of LMA, a telephone answering service, which generated  approximately
$350,000. Revenue from the Company's existing OnCall telephone answering service
business increased approximately $300,000 primarily due to revenue realized from
an entity  involved in cost  management  and purchasing of services on behalf of
hundreds  of  healthcare  and  hospital  organizations.  The  Company  generated
approximately $240,000 in 2003 from the rental of the Health Buddy unit, whereas
for the same period in 2002, the Company only generated minimal revenue from the
Health Buddy unit as the product was launched in the second quarter of 2002. The
Company has also  experienced  continued growth in its customer base outside the
contract with the City of New York (which  experienced a reduction in the number
of  subscribers  and revenue as  compared to the same period in 2002)  through a
variety of marketing  efforts that have  continued to  contribute  to increasing
MRR. These efforts include expansion into new regions,  competitive conversions,
strategic  partnerships with healthcare  provider systems,  and additional entry
into Medicaid reimbursed marketplaces. This growth resulted in a net increase of
approximately  $150,000.  The  remaining  increase  is due to a variety of other
smaller  items  including  revenues  generated  from  the  security   monitoring
business.



                                      -20-
<PAGE>

Costs  related to  services  increased  by $315,056  for the nine  months  ended
September  30, 2003 as  compared to the same period in 2002,  an increase of 6%.
Costs related to services, as a percentage of service revenues,  for each of the
nine months ended September 30, 2003 and 2002 was 45% and 47%, respectively. The
increase was due to a variety of factors. An increase of approximately  $145,000
was primarily due to additional  personnel  costs resulting from the acquisition
of LMA on June 30, 2003. Additionally, the increase is due to the Company adding
personnel in its existing OnCall telephone  answering service division to handle
the  current  and  future  growth  of  that  business   which  has  resulted  in
approximately  $150,000 of additional  expense as compared to the same period in
2002. The Company  incurred  expenses  related to the rental of the Health Buddy
unit in accordance with its  Cooperative  Licensing,  Development,  Services and
Marketing  Agreement with HHN, which represented  approximately  $130,000 of the
increase. In addition, depreciation for the nine months ended September 30, 2003
increased  by  approximately  $100,000  as  compared to the same period in 2002.
These increases were partially offset by a reduction of personnel in the ERC and
customer service departments,  which is directly attributed to the relocation of
the PERS monitoring  center and telephone  answering  service into one facility,
generating a reduction of approximately  $70,000.  This increase was also offset
by a reduction in compensation to installers,  which is directly  related to the
replacement  of  activators in 2002,  resulting in a reduction of  approximately
$70,000. Telephone expense decreased by approximately $40,000 as compared to the
same period in 2002.

Selling,  general and administrative expenses increased by $708,390 for the nine
months  ended  September  30, 2003 as  compared  to the same period in 2002,  an
increase of 13%. Selling,  general, and administrative expenses, as a percentage
of total revenue, for the nine months ended September 30, 2003 and 2002 were 51%
and 50%,  respectively.  The  increase  in selling,  general and  administrative
expenses  for the nine months  ended  September  30, 2003 is  primarily  due the
following items:

o    Personnel and Related Benefits:
     As part of its plan to continue to grow its business, the Company increased
     the number of personnel throughout 2002. This, along with general increases
     in  compensation   levels,   increased  payroll  and  related  benefits  by
     approximately  $95,000, as compared to the same period in 2002. The Company
     believes the additional personnel is a necessary prerequisite to facilitate
     the  Company's  growth,  and the  resulting  revenues  are  expected  to be
     realized in later months.  Additionally,  with the  acquisition of LMA, the
     Company incurred  approximately  $70,000 of expense towards  administrative
     personnel costs.

o    Rent Expense
     Rent expense  increased by  approximately  $180,000 in 2003, as compared to
     the same  period in 2002,  primarily  due to the  Company  occupying  a new
     facility  effective  April  1,  2003.  The  Company  anticipates  receiving
     significant  Relocation and Employment  Assistance Program (REAP) and other
     tax  incentive  and cost savings  benefits  from the City of New York which
     will mitigate the increase in rent expense.  See Provision for Income Taxes
     below.



                                      -21-
<PAGE>

o    Put Warrant Obligation
     In connection with the HCI  acquisition,  the Company issued to the selling
     stockholder  two  warrants  to  purchase  133,333.33  and  105,000  shares,
     respectively,  of the Company's common stock at an exercise price of $2 per
     share.  The warrants are  exercisable  until November 20, 2005 and December
     20,  2005,  respectively.  In  addition,  the selling  stockholder  has the
     option, only during a period of ten trading days, beginning on November 21,
     2003  and  2005,  respectively,  to  require  the  Company,  under  certain
     circumstances,  to  redeem  the  warrants  (the  Put  Option)  at $5 or $6,
     respectively, less the exercise price per share of $2. Based on a valuation
     of the  warrants  and the right of  redemption  of the  warrantholder,  the
     Company  recorded  $190,000 of expense in 2003,  as compared to $90,000 for
     the same period in 2002.

o    Insurance Expense
     Insurance  expense  increased by  approximately  $75,000 as compared to the
     same period in 2002, primarily due to the current insurance environment.

o    Legal Expense
     Legal fees increased due to a several factors, including fees incurred with
     regard to the City of New York Request for Proposal,  fees  associated with
     an acquisition  which was not consummated and fees associated in completing
     the  application for tax benefits  associated with the new premises.  These
     factors resulted in legal expense  increasing  during the first nine months
     of 2003 by approximately $75,000 as compared to the same period in 2002.

o    Amortization Expense
     Amortization primarily increased due to the Company commencing amortization
     of its costs associated with its cooperative  licensing  agreement with HHN
     in 2003,  whereby  resulting in a $75,000  expense for 2003.  Additionally,
     with the acquisition of LMA on June 30, 2003, the Company  recorded certain
     intangible  assets  which are being  amortized  that  resulted in a $30,000
     expense.

Other  increases  in selling,  general and  administrative  expenses,  including
lobbying  expense,  trade  shows,  travel  and  entertainment  and  depreciation
aggregating  approximately  $150,000  were offset by  reductions in research and
development, consulting and bad debt expense totaling approximately $175,000.

Interest  expense  decreased by $31,640 for the nine months ended  September 30,
2003 as compared to the same period in 2002,  a decrease of 33%.  Such  decrease
was due to reduced  borrowing  levels  during the first nine months of 2003,  as
compared to the same period in 2002, as well as a decrease in interest rates.

Other income for the nine months ended  September 30, 2003 and 2002 was $147,820
and  333,116,  respectively.  Other  income  decreased  by $185,296 for the nine
months  ended  September  30, 2003 as  compared  to the same  period in 2002,  a
decrease  of  56%.  The  decrease  in  other  income  is  due  to  an  insurance
reimbursement  of  $100,000  received  in 2002.  Additionally,  the  Company was
reimbursed  from a vendor for costs incurred in connection  with the replacement
of activators. Early in 2002, it was found that certain activators supplied by a
vendor may be subject to battery failure,  necessitating  the replacement of all
potentially affected  activators.  As of March 31, 2003, the replacement program
was  substantially  completed  and the  vendor  paid all costs  incurred  by the
Company in connection with this program.  The Company recorded additional income
relating to this item in 2002,  as  compared to the same period in 2003,  in the
amount of approximately $57,000. The Company also recorded approximately $47,000
of  income   associated   with  an  officer's  loan  in  2002,  as  compared  to
approximately $6,000 in 2003.



                                      -22-
<PAGE>

The Company's income before provision for income taxes for the nine months ended
September  30, 2003 was  $542,430 as compared to $577,138 for the same period in
2002.  The  decrease  of $34,708 for the nine months  ended  September  30, 2003
primarily  resulted  from an  increase  in the  Company's  selling,  general and
administrative  costs and  decrease  in other  income  offset by an  increase in
revenues from services and gross profit.

The Company's provision for income taxes for the nine months ended September 30,
2003 was  $170,000  as compared  to  $274,000  for the same period in 2002.  The
decrease of $104,000 for the nine months ended  September 30, 2003 is due to the
fact  that the  Company  anticipates  receiving  significant  REAP and other tax
incentive and cost savings  benefits from the City of New York. The REAP benefit
is calculated based on the number of hours worked by employees relocated to this
facility  from other  Company  locations.  These  benefits  are  estimated to be
approximately $180,000 for 2003.

RECENT ACCOUNTING PRONOUNCEMENTS:

In April 2002,  SFAS No. 145,  "Rescission of FASB  Statements No. 4, 44 and 64,
Amendment of FASB Statement No. 13, and Technical  Corrections" was issued. This
statement (i) eliminates  extraordinary  accounting treatment for a gain or loss
reported on the  extinguishment of debt, (ii) eliminates  inconsistencies in the
accounting   required  for   sale-leaseback   transactions   and  certain  lease
modifications  with similar  economic  effects,  and (iii) amends other existing
authoritative pronouncements to make technical corrections, clarify meanings, or
describe their applicability under changed conditions.  The Company adopted SFAS
No. 145 effective January 1, 2003. The Company does not expect that the adoption
of this statement  will have a material  impact on its  consolidated  results of
operations or financial position.


In June  2002,  SFAS No.  146,  "Accounting  for Costs  Associated  with Exit or
Disposal  Activities" was issued.  This statement  nullifies  existing  guidance
related  to the  accounting  and  reporting  for costs  associated  with exit or
disposal  activities and requires that the fair value of a liability  associated
with an exit or disposal  activity be recognized when the liability is incurred.
Under  previous  guidance,  certain exit costs were permitted to be accrued upon
management's  commitment  to an exit plan,  which is generally  before an actual
liability has been incurred. The provisions of this statement are required to be
adopted for all exit or disposal  activities  initiated after December 31, 2002.
This statement will not impact any liabilities  recorded prior to adoption.  The
Company  adopted SFAS No. 146  effective  January 1, 2003.  The Company does not
expect that the adoption of this  statement  will have a material  impact on its
consolidated results of operations or financial position.

In December  2002,  the FASB issued  SFAS No. 148,  "Accounting  for Stock Based
Compensation  - Transition and  Disclosure,  an Amendment of FASB Statement 123"
(SFAS 148). SFAS 148 provides new transition alternatives for companies adopting


                                      -23-
<PAGE>

the fair value method of accounting for stock-based  compensation  prescribed by
SFAS 123. SFAS No. 148 also requires that disclosures of the pro forma effect of
using the fair value method of accounting for stock-based employee  compensation
be displayed more prominently and in tabular format. Additionally,  SFAS No. 148
requires  disclosures of the pro forma effect in interim  financial  statements.
The Company has chosen to continue to account for stock-based compensation using
the  intrinsic  value  method  prescribed  in APB  Opinion  No.  25 and  related
interpretations.  The Company adopted the annual  disclosure  provisions of SFAS
No. 148 in its financial report for the year ended December 31, 2002 and adopted
the interim  disclosure  provisions  for its  financial  reports for the quarter
ended March 31, 2003.

CRITICAL ACCOUNTING POLICIES:

In preparing the financial statements, the Company makes estimates,  assumptions
and  judgments  that can have a  significant  impact on our  revenue,  operating
income and net income,  as well as on the reported amounts of certain assets and
liabilities  on the balance  sheet.  The Company  believes  that the  estimates,
assumptions and judgments  involved in the accounting  policies  described below
have the greatest potential impact on its financial statements,  so it considers
these to be its critical accounting  policies.  Estimates in each of these areas
are based on historical experience and a variety of assumptions that the Company
believes are appropriate. Actual results may differ from these estimates.

         RESERVES FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE
         The Company makes ongoing assumptions relating to the collectibility of
         its accounts receivable.  The accounts receivable amount on the balance
         sheet  includes  a reserve  for  accounts  that  might not be paid.  In
         determining  the  amount of the  reserve,  the  Company  considers  its
         historical  level of credit  losses.  The Company also makes  judgments
         about the  creditworthiness  of significant  customers based on ongoing
         credit evaluations,  and it assesses current economic trends that might
         impact the level of credit losses in the future.  The Company  recorded
         reserves for uncollectible accounts receivable of $601,500 and $540,000
         as of September 30, 2003 and December 31, 2002, respectively. While the
         Company  believes  that the  current  reserves  are  adequate  to cover
         potential  credit  losses,  it cannot  predict  future  changes  in the
         financial  stability of its customers and the Company cannot  guarantee
         that its reserves will continue to be adequate. If actual credit losses
         are  significantly  greater than the reserves  established,  that would
         increase  the  general  and  administrative  expenses  and  reduce  the
         reported  net  income.   Conversely,   if  actual   credit  losses  are
         significantly less than the reserve, this would eventually decrease the
         Company's general and administrative expenses and increase the reported
         net income.

         VALUATION OF LONG-LIVED ASSETS
         The Company reviews long-lived assets for impairment, principally fixed
         assets,  whenever events or changes in circumstances  indicate that the
         carrying  amount  of the  assets  may  not  be  fully  recoverable.  To
         determine   recoverability  of  the  long-lived   assets,  the  Company
         evaluates the probability that future  undiscounted net cash flows will
         be  greater  than the  carrying  amount of its  assets.  Impairment  is
         measured  based on the  difference  between the carrying  amount of the
         assets and their estimated fair value.



                                      -24-
<PAGE>

         VALUATION OF GOODWILL
         Effective  January 1, 2002, the Company adopted  Statement of Financial
         Accounting  Standards No. 142, "Goodwill and Other Intangible  Assets."
         Under this new standard, goodwill and indefinite life intangible assets
         are no longer  amortized,  but are subject to annual  impairment tests.
         The Company  completed the  transitional  and annual  impairment  tests
         required by SFAS 142 and was not required to recognize an impairment of
         goodwill.  The Company tests goodwill for  impairment  annually or more
         frequently when events or circumstances occur indicating goodwill might
         be  impaired.   This  process  involves  estimating  fair  value  using
         discounted  cash flow  analyses.  Considerable  management  judgment is
         necessary to estimate  discounted  future cash flows.  Assumptions used
         for  these  estimated  cash  flows  were  based  on  a  combination  of
         historical results and current internal  forecasts.  The Company cannot
         predict certain events that could  adversely  affect the reported value
         of  goodwill,  which  totaled  $1,970,320  at  September  30,  2003 and
         $961,731 at December 31, 2002.

         DEFERRED INCOME TAXES
         Deferred  income  taxes  reflect  the  net  tax  effects  of  temporary
         differences  between the carrying amounts of assets and liabilities for
         financial  reporting  purposes  and the  amounts  used for  income  tax
         purposes.  In assessing the  realizability of deferred tax assets,  the
         Company  considers whether it is more likely than not that some portion
         or all of the  deferred  tax assets will not be  realized.  The Company
         considers the scheduled reversal of deferred tax liabilities, projected
         future  taxable  income,  and tax  planning  strategies  in making this
         assessment and records a valuation allowance to reduce the deferred tax
         assets to the amount that is expected to be realized in future periods.

ITEM 3.   DISCLOSURE CONTROLS AND PROCEDURES.
          -----------------------------------

Based  on their  evaluation  as of  September  30,  2003,  the  Company  and the
Company's  President and Chief Executive  Officer along with the Company's Chief
Financial  Officer have  concluded  that the Company's  disclosure  controls and
procedures  (as defined in Exchange  Act Rules  13a-15(e)  and  15d-15(e))  were
effective.

There were no changes in the Company's internal control over financial reporting
that occurred  during the quarter ended  September 30, 2003 that has  materially
affected, or is reasonably likely to affect, the Company's internal control over
financial reporting.



                                      -25-
<PAGE>

PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS.
          -----------------

The Company is aware of various  threatened or pending litigation claims against
the Company  relating to its products  and services and other claims  arising in
the ordinary course of its business. The Company has given its insurance carrier
notice of such claims and it believes there is sufficient  insurance coverage to
cover any such claims.  In any event,  the Company  believes the  disposition of
these matters will not have a material adverse effect on the financial condition
of the Company.

On March 2, 2001  American  Medical  Alert  Corp.  was served with a Summons and
Complaint by a former employee seeking to recover damages for discrimination and
harassment in connection  with her  employment  and the  associated  termination
thereof. In June 2003 the Company entered into a settlement  agreement with this
former employee for a nominal amount which was previously accrued.

ITEM 5.   OTHER INFORMATION.

On November 5, 2003, the Board of Directors of the Company  adopted an amendment
to the  Company's  bylaws,  pursuant  to which  certain  provisions  relating to
director  nominations  and  shareholder  proposals were added to the bylaws.  In
general,  the new bylaw provisions will require  shareholders to submit director
nominations and  shareholder  proposals to the Company no more than 150 days and
no less than 120 days prior to the date on which the  previous  year's proxy was
mailed to the shareholders. A copy of the amendment to the bylaws of the Company
as filed herewith as Exhibit 3.1 to this Quarterly Report.


                                      -26-
<PAGE>

ITEM 6.   EXHIBIT AND REPORTS ON FORM 8-K.

(a) Exhibits:

No.       Description
---       -----------

3.1       Bylaw Amendment adopted November 5, 2003.

31.1      Certification of CEO Pursuant to Section 302 of the Sarbanes Oxley Act
          of 2002.

31.2      Certification of CFO Pursuant to Section 302 of the Sarbanes Oxley Act
          of 2002.

32.1      Certification of CEO Pursuant to Section 906 of the Sarbanes Oxley Act
          of 2002.

32.2      Certification of CFO Pursuant to Section 906 of the Sarbanes Oxley Act
          of 2002.


(b) Reports on Form 8-K:

On August 14, 2003,  the Company filed a Current  Report on Form 8-K relating to
Item 12, Results of Operations and Financial Conditions,  reporting the issuance
of a press release  announcing the Company's  results for the quarter ended June
30, 2003.

On August 25, 2003,  the Company filed a Current  Report on Form 8-K relating to
Item 9,  Regulation  FD  Disclosure,  reporting  the issuance of a press release
announcing the Company's guidance for 2003

On November 13, 2003, the Company filed a Current Report on Form 8-K relating to
Item 9,  Regulation  FD  Disclosure  and  Item 12,  Results  of  Operations  and
Financial  Condition,  reporting the issuance of a press release  announcing the
results for the quarter ended September 30, 2003.

<PAGE>



                                   SIGNATURES

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

                                        AMERICAN MEDICAL ALERT CORP.


Dated:  November 14, 2003               By: /s/ Howard M. Siegel
                                           -------------------------------------
                                           Howard M. Siegel
                                           President and Chief Executive Officer


                                        By: /s/ Richard Rallo
                                           -------------------------------------
                                           Richard Rallo
                                           Controller (chief financial officer)



                                      -27-