SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB


               Quarterly Report Pursuant to Section 13 or 15(d) of
                       The Securities Exchange Act of 1934


For the Quarterly Period Ended:                           Commission File Number
      November 30, 1999                                           1-11038

                 NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
             (Exact name of registrant as specified in its charter)

         Delaware                                       41-0857886
(State of Incorporation)                 (I.R.S. Employer Identification Number)

                    6680 N. Highway 49, Lino Lakes, MN 55014
                    (Address of principal executive offices)

                                 (651) 784-1250
                         (Registrant's telephone number)


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.

           Class                             Outstanding as of December 31, 1999
           -----                             -----------------------------------

Common Stock, $.02 par value                               3,870,325

                                            "This document consists of 11
                                            pages. No exhibits are being filed."

<PAGE>


PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                          NOVEMBER 30,       AUGUST 31,
                                                                                             1999               1999
<S>                                                                                       <C>              <C>
ASSETS

CURRENT ASSETS:
   Cash and cash equivalents                                                              $  2,680,400     $  2,750,209
   Receivables:
      Trade, less allowance for doubtful accounts of $33,000 and $27,000, respectively       1,944,272        1,704,536
      Corporate joint ventures                                                                 603,759          473,553
   Income tax receivable                                                                       175,412               --
   Inventories                                                                               1,073,371        1,013,525
   Prepaid expenses and other                                                                   46,753           37,008
   Deferred income taxes                                                                       170,000          170,000
                                                                                          ------------     ------------
               Total current assets                                                          6,693,967        6,148,831

PROPERTY AND EQUIPMENT, net                                                                  1,142,182        1,115,229

OTHER ASSETS:
   Investments in corporate joint ventures                                                   3,246,234        3,424,623
   Investment in European holding company                                                      247,253          247,253
   Deferred income taxes                                                                       210,000          210,000
   Other                                                                                       369,680          315,662
                                                                                          ------------     ------------
                                                                                             4,073,167        4,197,538
                                                                                          ------------     ------------
                                                                                          $ 11,909,316     $ 11,461,598
                                                                                          ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
   Accounts payable                                                                       $    146,776     $    149,328
   Income taxes payable                                                                             --          307,188
   Dividends payable                                                                           618,985               --
   Accrued liabilities:
      Payroll and related benefits                                                              80,690           54,182
      Other                                                                                    240,594          166,610
                                                                                          ------------     ------------
               Total current liabilities                                                     1,087,045          677,308

DEFERRED GROSS PROFIT                                                                           60,000           60,000

STOCKHOLDERS' EQUITY:
   Preferred stock, no par value, authorized 10,000 shares, none issued Common
   stock, $.02 par value per share; authorized 10,000,000 shares;
      issued and outstanding  3,868,325 and 3,865,103, respectively                             77,367           77,302
   Additional paid-in capital                                                                4,622,073        4,613,806
   Retained earnings                                                                         6,536,356        6,481,550
   Accumulated other comprehensive loss                                                       (343,718)        (318,561)
                                                                                          ------------     ------------
                                                                                            10,892,078       10,854,097
   Notes and related interest receivable from purchase of common stock                        (129,807)        (129,807)
                                                                                          ------------     ------------
               Total stockholders' equity                                                   10,762,271       10,724,290
                                                                                          ------------     ------------
                                                                                          $ 11,909,316     $ 11,461,598
                                                                                          ============     ============
</TABLE>

See notes to financial statements.


                                       2
<PAGE>


NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED NOVEMBER 30, 1999 AND 1998
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                     1999             1998
<S>                                                             <C>              <C>
SALES                                                           $  2,831,864     $  2,155,395

COST OF GOODS SOLD                                                 1,348,520        1,069,703
                                                                ------------     ------------

GROSS PROFIT                                                       1,483,344        1,085,692

OPERATING EXPENSES:
   Selling                                                           451,409          341,631
   General and administrative                                        679,798          512,628
   Research, engineering, and technical support                      115,173          102,479
                                                                ------------     ------------
                                                                   1,246,380          956,738
                                                                ------------     ------------

OPERATING INCOME                                                     236,964          128,954

CORPORATE JOINT VENTURES AND EUROPEAN
      HOLDING COMPANY:
   Equity in income of corporate joint ventures and European
      holding company                                                159,317          177,803
   Fees for technical assistance to corporate joint ventures         696,572          594,713
   Corporate joint ventures expense                                 (163,979)        (139,849)
                                                                ------------     ------------
                                                                     691,910          632,667

INTEREST INCOME                                                       34,917           16,022
                                                                ------------     ------------

INCOME BEFORE INCOME TAXES                                           963,791          777,643

INCOME TAXES                                                         290,000          220,000
                                                                ------------     ------------

NET INCOME                                                      $    673,791     $    557,643
                                                                ============     ============

NET INCOME PER SHARE:
   Basic                                                        $        .17     $        .14
                                                                ============     ============
   Diluted                                                      $        .17     $        .14
                                                                ============     ============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
   Basic                                                           3,867,379        3,856,408
                                                                ============     ============
   Diluted                                                         3,870,919        3,900,463
                                                                ============     ============
</TABLE>

See notes to financial statements.


                                       3
<PAGE>


NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED NOVEMBER 30, 1999 AND 1998
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                        1999            1998
<S>                                                                <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                      $    673,791     $    557,643
   Adjustments to reconcile net income to net cash provided by
         operating activities:
      Depreciation                                                       37,379           31,275
      Equity in income of corporate joint ventures and European
         holding company                                               (159,317)        (177,803)
      Dividends received from corporate joint ventures                  362,549               --
      Change in current assets and liabilities:
         Receivables:
            Trade                                                      (239,736)        (147,811)
            Corporate joint ventures                                   (130,206)        (194,409)
         Income tax receivable                                         (175,412)         (20,363)
         Inventories                                                    (59,846)         137,782
         Prepaid expenses and other                                      (7,102)          10,741
         Accounts payable                                                (2,552)         (62,706)
         Income taxes payable                                          (307,188)         (66,416)
         Accrued liabilities                                            100,492           17,725
                                                                   ------------     ------------
               Total adjustments                                       (580,939)        (471,985)
                                                                   ------------     ------------
               Net cash provided by operating activities                 92,852           85,658

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investment in corporate joint ventures                               (50,000)         (20,509)
   Additions to property                                                (64,332)         (31,231)
   (Increase) decrease in other assets                                  (56,661)          13,409
                                                                   ------------     ------------
               Net cash used in investing activities                   (170,993)         (38,331)

CASH FLOWS FROM FINANCING ACTIVITIES -
   Issuance of common stock                                               8,332           90,531
                                                                   ------------     ------------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                    (69,809)         137,858

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                      2,750,209        2,200,490
                                                                   ------------     ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                         $  2,680,400     $  2,338,348
                                                                   ============     ============
</TABLE>

See notes to financial statements.


                                       4
<PAGE>


NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
THREE MONTHS ENDED NOVEMBER 30, 1999 AND 1998
--------------------------------------------------------------------------------

1.   INTERIM FINANCIAL INFORMATION

     In the opinion of management, the accompanying unaudited consolidated
     financial statements contain all necessary adjustments, which are of a
     normal recurring nature, to present fairly the consolidated financial
     position of Northern Technologies International Corporation and Subsidiary
     as of November 30, 1999 and the results of its operations and its cash
     flows for the three months ended November 30, 1999 and 1998, in conformity
     with generally accepted accounting principles.

     These financial statements should be read in conjunction with the financial
     statements and related notes as of and for the year ended August 31, 1999
     contained in the Company's filing on Form 10-KSB dated November 19, 1999
     and with Management's Discussion and Analysis of Financial Condition and
     Results of Operations appearing on pages 7 through 9 of this quarterly
     report.

2.   COMPREHENSIVE INCOME

     The Company's total comprehensive incomes were as follows:

                                                         Three Months Ended
                                                            November 30
                                                        1999             1998

     Net income                                     $   673,791      $   557,643
     Other comprehensive income (loss)                  (25,157)         117,265
                                                    -----------      -----------
     Total comprehensive income                     $   648,634      $   674,908
                                                    ===========      ===========

3.   INVENTORIES

     Inventories consist of the following:

                                                    November 30,      August 31,
                                                       1999              1999

     Production materials                           $   264,550      $   218,701
     Work in process                                     34,581           24,753
     Finished goods                                     774,240          770,071
                                                    -----------      -----------
                                                    $ 1,073,371      $ 1,013,525
                                                    ===========      ===========


                                       5
<PAGE>


4.   PROPERTY AND EQUIPMENT

     Property and equipment consist of the following:

                                                    November 30,      August 31,
                                                       1999              1999

     Land                                           $   246,097      $   246,097
     Buildings and improvements                       1,112,757        1,100,757
     Machinery and equipment                          1,016,484          964,152
                                                    -----------      -----------
                                                      2,375,338        2,311,006
     Less accumulated depreciation                    1,233,156        1,195,777
                                                    -----------      -----------
                                                    $ 1,142,182      $ 1,115,229
                                                    ===========      ===========

5.   INVESTMENT IN CORPORATE JOINT VENTURES

     During the three months ended November 30, 1999, the Company invested an
     additional $50,000 in an existing foreign joint venture.

6.   STOCKHOLDERS' EQUITY

     During the three months ended November 30, 1999, stock options for the
     purchase of 3,222 shares of the Company's common stock were exercised at
     prices between $3.00 and $6.25 per share.

7.   SUPPLEMENTAL CASH FLOW INFORMATION

     During the three months ended November 30, 1999, the Company declared a
     cash dividend of $.16 per share payable on December 17, 1999 to
     shareholders of record on December 3, 1999.

     During the three months ended November 30, 1998, the Company declared a
     cash dividend of $.15 per share payable on December 18, 1998 to
     shareholders of record on December 4, 1998.

8.   INCOME PER SHARE

     Basic income per share is computed by dividing net income by the weighted
     average number of common shares outstanding. Diluted income per share
     assumes the exercise of stock options using the treasury stock method, if
     dilutive.


                                       6
<PAGE>


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

RESULTS OF OPERATIONS

GENERAL - The Company conducts all foreign transactions based on the U.S.
dollar, except for its investments in foreign joint ventures. The exchange rate
differential relating to investments in foreign joint ventures is accounted for
under the requirements of SFAS No. 52.

SALES - Net sales increased by $676,469 during the first quarter of fiscal 2000
from those in the first quarter of fiscal 1999. This increase was due to
increases in demand and selling prices for materials science based industrial
packaging products.

COST OF SALES - Cost of goods sold as a percentage of net sales was 48% for the
first quarter of fiscal 2000 compared to 50% for the first quarter of fiscal
1999. The variation is primarily due to the mix of product sales and the
increase in selling prices.

OPERATING EXPENSES - As a percentage of sales, total operating expenses was 44%
in the first quarters of fiscal 2000 and 1999.

Operating expense classification percentages of sales were as follows:

                                                              Three Months Ended
                                                                  November 30
                                                              1999          1998

     Selling                                                   16%           16%
     General and administrative                                24%           24%
     Research, engineering, and technical support               4%            4%

Selling expenses increased for the first three months of fiscal 2000 as compared
to the same period in 1999 due primarily to increases in salaries and related
expenses and product promotion. Such expenses, as a percentage of sales, were
substantially unchanged for the first three months of fiscal 2000 as compared to
the same period in fiscal 1999.

General and administrative expenses increased for the first three months of
fiscal 2000 as compared to the same period in 1999 due primarily to increases in
rent expense, consulting, and travel expense. Such expenses, as a percentage of
sales, were substantially unchanged for the first three months of fiscal 2000 as
compared to the same period in fiscal 1999.

Research, engineering and technical support expenses for the first three months
of fiscal 2000 were higher than the comparable period in fiscal 1999 due
primarily to increases in supplies and travel expense. Such expenses, as a
percentage of sales, were substantially unchanged for the first three months of
fiscal 2000 as compared to the same period in fiscal 1999.

CORPORATE JOINT VENTURES AND EUROPEAN HOLDING COMPANY - Net earnings from
corporate joint ventures and European holding company increased in the first
three months of fiscal 2000 to $691,910 from $632,667 in the first three months
of fiscal 1999. This net increase is due to increased sales of the corporate
joint ventures resulting in an increase in fees for technical assistance
partially offset by higher travel and legal expenses incurred by the Company in
its corporate joint ventures and in establishing new corporate joint ventures.


                                       7
<PAGE>


INCOME TAXES - Income tax expense for the three months ended November 30, 1999
and 1998 was calculated based upon management's estimate of the annual effective
rates. The effective income tax rates for fiscal 2000 and 1999 is lower than the
statutory rate primarily due to equity in income of joint ventures being
recognized on an after tax basis for these entities. To the extent the joint
ventures' undistributed earnings are distributed to the Company, it does not
result in any material additional income tax liability after the application of
foreign tax credits.

LIQUIDITY AND CAPITAL RESOURCES

At November 30, 1999, the Company's working capital was $5,606,922, including
$2,680,400 in cash and cash equivalents, compared to working capital of
$5,471,523 including cash and cash equivalents of $2,750,209 as of August 31,
1999.

Net cash provided from past operations has been sufficient to meet liquidity
requirements, capital expenditures, research and development costs and expansion
of operations of the Company's joint ventures. Cash flows from operations for
the three months ended November 30, 1999 was $92,852. The net cash flow from
operations for the three months ended November 30, 1999 resulted principally
from net income and dividends received from corporate joint ventures offset by
equity income of corporate joint ventures and European holding company and
increases in receivables and income tax payments. Cash flows from operations for
the three months ended November 30, 1998 was $85,658. The net cash flow from
operations for the three months ended November 30, 1998 was principally from net
income and a decrease in inventories offset by equity in income of corporate
joint ventures and European holding company and increases in receivables.

Cash used in investing activities for the three months ended November 30, 1999
was $170,993, which resulted principally from investments in corporate joint
ventures, additions to property, and an investment in a corporation owning real
estate. Cash used in investing activities for the three months ended November
30, 1998 was $38,331, which resulted from investments in corporate joint
ventures and additions to property partially offset by decreases in other
assets.

Cash provided by financing activities for the three months ended November 30,
1999 was $8,332, which resulted from payments received from the exercise of
stock options. Cash provided by financing activities for the three months ended
November 30, 1998 was $90,531, which resulted from payments received from the
exercise of stock options.

The Company expects to meet future liquidity requirements with its existing cash
and cash equivalents and from cash flows of future operating earnings and
distributions of earnings and technical assistance fees from the corporate joint
venture investments.

The Company has no long-term debt and no material lease commitments at November
30, 1999.

The Company has no postretirement benefit plan and does not anticipate
establishing any post retirement benefit program.

IMPACT OF YEAR 2000

Computer programs have historically been written to abbreviate dates by using
two digits instead of four digits to identify a particular year. The so-called
"year-2000 problem" or "millennium bug" is the inability of computer software or
hardware (collectively, Systems) to recognize or properly process dates ending
in "00" and dates after the year 2000. Significant attention is being focused as
the year 2000


                                       8
<PAGE>


approaches on updating or replacing such Systems in order to avoid System
failures, miscalculations, or business interruptions that might otherwise
result.

As of January 13, 2000, the Company has not experienced and does not anticipate
any adverse effects on the Company's systems and operations as a result of
year-2000 issues. Further, as of January 13, 2000, the Company has not
experienced any operating problems or product failures as a result of year-2000
issues with its vendors, service providers, or customers.

EURO CURRENCY ISSUE

On January 1, 1999, eleven of the fifteen member countries of the European Union
established fixed conversion rates between their respective existing currencies
and the Euro and to adopt the Euro as their common legal currency on that date
(the Euro Conversion). Following the Euro Conversion, however, the previously
existing currencies of the participating countries are scheduled to remain legal
tender in the participating countries between January 1, 1999 and January 2002.
During this transition period, public and private parties may pay for goods and
services using either the Euro or the previously existing currencies. Beginning
January 1, 2002, the participating countries will issue new Euro-denominated
bills and coins for use in cash transactions. No later than July 1, 2002, the
participating countries will withdraw all bills and coins denominated in the
previously existing currencies making Euro Conversion complete.

The Company, the corporate joint ventures, and the foreign company have been
evaluating the potential impact the Euro Conversion and the Euro currency may
have on their results of operations, liquidity or financial condition. The
Company has determined that expected costs for compliance will not be material
to its results of operations, liquidity, financial condition or capital
expenditures. Significant noncompliance by the Company's corporate joint
ventures and their customers or suppliers could adversely impact the Company's
results of operations, liquidity or financial condition. Accordingly, until the
Company completes its assessment of the Euro Conversion impact, there can be no
assurance that the Euro Conversion will not have a material impact on the
overall business operations of the Company.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 1998, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 133, ACCOUNTING FOR DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES. SFAS No. 133 requires companies to record
derivatives on the balance sheet as assets and liabilities, measured at fair
value. Gains or losses resulting from changes in the values of those derivatives
would be accounted for depending on the use of the derivative and whether it
qualifies for hedge accounting. In July 1999, the FASB issued SFAS No. 137
delaying the effective date of SFAS No. 133 for one year to fiscal years
beginning after June 15, 2000, with earlier adoption encouraged. The Company has
not yet determined the effects SFAS No. 133 will have on its financial position
or the results of its operations.


                                       9
<PAGE>


PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

None

ITEM 2 - CHANGES IN SECURITIES

None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5 - OTHER INFORMATION

None

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

None


                                       10
<PAGE>


                                   SIGNATURES


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

                                       NORTHERN TECHNOLOGIES
                                       INTERNATIONAL CORPORATION




January 13, 2000                       /s/ Matjaz Korosec
                                       -----------------------------------------
                                       Matjaz Korosec
                                       Treasurer


                                       11