===============================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                             ----------------------


                                    FORM 10-Q




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

                  For the Quarterly Period Ended June 28, 2002

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



                        Commission File Number 333-43089




                               THE GSI GROUP, INC.
             (Exact name of registrant as specified in its charter)

                             DELAWARE     37-0856587
                (State or other jurisdiction     (I.R.S. Employer
            Of incorporation or organization)     Identification No.)

             1004 E. ILLINOIS STREET, ASSUMPTION, ILLINOIS     62510
             (Address of principal executive offices)     (Zip 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 registrant's
classes  of  common stock, as of the latest practicable date.  Common stock, par
value  $0.01  per  share,  1,775,000  shares  outstanding  as of August 9, 2002.


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                                        1
<PAGE>




                                TABLE OF CONTENTS
                                                                         PAGE
                                                                         ----
PART  I  -  FINANCIAL  INFORMATION
 Item  1.     Financial  Statements
                      Balance Sheets                                       3
                      Statements of Operations                             4
                      Statements of Cash Flows                             5
                      Notes to Financial Statement                         6

 Item  2.    Management's Discussion and Analysis of Financial Condition
             And Results  of  Operations                                  17
 Item  3.    Quantitative  and Qualitative Disclosure About Market Risk   19

PART  II  -  OTHER  INFORMATION
 Item 1.     Legal Proceedings                                            20
 Item 2.     Changes in Securities and Use of Proceeds                     *
 Item 3.     Defaults Upon Senior Securities                               *
 Item 4.     Submission of Matters to a Vote of Security Holders           *
 Item 5.     Other Information                                             *
 Item 6.     Exhibits and Reports on Form 8-K                             20




*  No  response  to  this  item  is  included  herein  for the reason that it is
inapplicable.

                                        2
<PAGE>
                                     PART I - FINANCIAL INFORMATION

                                     ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                                 THE GSI GROUP, INC. AND SUBSIDIARIES
                                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                              (UNAUDITED)


                                                                             JUNE 28,    DECEMBER 31,
                                                                   ASSETS      2002          2001
--------------------------------------------------------------------------  ----------  --------------
<S>                                                                         <C>         <C>

Current Assets:
  Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . .  $   2,550   $       2,828
  Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . .     40,628          28,887
  Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .     73,290          55,294
  Prepaids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,003           2,245
  Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      5,347           4,816
                                                                            ----------  --------------
      Total current assets . . . . . . . . . . . . . . . . . . . . . . . .    123,818          94,070
                                                                            ----------  --------------
Notes Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         --              59
                                                                            ----------  --------------
Property, Plant and Equipment, net . . . . . . . . . . . . . . . . . . . .     40,642          42,116
                                                                            ----------  --------------
Other Assets:
  Goodwill and other intangible assets, net. . . . . . . . . . . . . . . .     13,995          15,061
  Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,887           3,435
                                                                            ----------  --------------
      Total other assets . . . . . . . . . . . . . . . . . . . . . . . . .     16,882          18,496
                                                                            ----------  --------------
      Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 181,342   $     154,741
                                                                            ==========  ==============

                               LIABILITIES AND  STOCKHOLDERS' DEFICIT
--------------------------------------------------------------------------
Current Liabilities:
  Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  26,550   $      12,247
  Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,108           1,962
  Other accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . .     10,195           9,429
  Customer deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . .      6,703           6,204
  Current maturities of long-term debt . . . . . . . . . . . . . . . . . .      2,785           2,707
                                                                            ----------  --------------
      Total current liabilities. . . . . . . . . . . . . . . . . . . . . .     48,341          32,549
                                                                            ----------  --------------
Long-Term Debt, less current maturities. . . . . . . . . . . . . . . . . .    150,116         136,211
                                                                            ----------  --------------
Deferred Income Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . .        861             582
                                                                            ----------  --------------
Commitments and Contingencies
Stockholders' Deficit:
  Common stock, $.01 par value, voting (authorized 6,900,000 shares;
    issued 6,633,652 shares; outstanding 1,575,000 shares) . . . . . . . .         16              16
  Common stock, $.01 par value, nonvoting (authorized 1,100,000 shares;
    issued 1,059,316 shares; outstanding 200,000 shares) . . . . . . . . .          2               2
  Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . .      3,006           3,006
  Accumulated other comprehensive loss (cumulative currency  translation
   adjustment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (12,352)        (10,216)
  Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . .     18,311          19,550
  Treasury stock, at cost, voting (5,058,652 shares) . . . . . . . . . . .    (26,950)        (26,950)
  Treasury stock, at cost, nonvoting (859,316 shares). . . . . . . . . . .         (9)             (9)
                                                                            ----------  --------------
      Total stockholders' deficit. . . . . . . . . . . . . . . . . . . . .    (17,976)        (14,601)
                                                                            ----------  --------------
      Total liabilities and stockholders' deficit. . . . . . . . . . . . .  $ 181,342   $     154,741
                                                                            ==========  ==============
</TABLE>


The accompanying notes to consolidated financial statements are an integral part
                              of these statements.

                                        3
<PAGE>
<TABLE>
<CAPTION>

                                    THE GSI GROUP, INC. AND SUBSIDIARIES
                              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                                (UNAUDITED)


     THREE  FISCAL  MONTHS  ENDED     SIX  FISCAL  MONTHS  ENDED

                                                          JUNE 28,     JUNE 29,     JUNE 28,     JUNE 29,
                                                            2002         2001         2002         2001
                                                         -----------  -----------  -----------  -----------
<S>                                                      <C>          <C>          <C>          <C>
Sales                                                    $   65,901   $   65,498   $  118,829   $  110,467

Cost of sales                                                51,043       50,344       92,293       84,059
                                                         -----------  -----------  -----------  -----------

    Gross profit. . . . . . . . . . . . . . . . . . . .      14,858       15,154       26,536       26,408

Selling, general and administrative expenses. . . . . .       9,110        9,690       17,922       19,505
Amortization expense. . . . . . . . . . . . . . . . . .         311          473          623          911
                                                         -----------  -----------  -----------  -----------
  Total operating expenses. . . . . . . . . . . . . . .       9,421       10,163       18,545       20,416

Operating income. . . . . . . . . . . . . . . . . . . .       5,437        4,991        7,991        5,992

Other income (expense):
  Interest expense. . . . . . . . . . . . . . . . . . .      (3,330)      (3,672)      (6,484)      (7,351)
  Other, net. . . . . . . . . . . . . . . . . . . . . .        (376)         (88)        (702)          31
                                                         -----------  -----------  -----------  -----------

    Income (loss) before income tax provision (benefit)       1,731        1,231          805       (1,328)
                                                         -----------  -----------  -----------  -----------

Income tax expense (benefit). . . . . . . . . . . . . .         126           98          135          (91)
                                                         -----------  -----------  -----------  -----------

    Net income (loss) . . . . . . . . . . . . . . . . .  $    1,605   $    1,133   $      670   $   (1,237)
                                                         -----------  -----------  -----------  -----------


Basic and diluted income (loss) per share . . . . . . .  $     0.90   $     0.64   $     0.38   $    (0.70)
                                                         -----------  -----------  -----------  -----------

Weighted average common shares outstanding. . . . . . .   1,775,000    1,775,000    1,775,000    1,775,000
                                                         ===========  ===========  ===========  ===========
</TABLE>








The accompanying notes to consolidated financial statements are an integral part
                              of these statements.

                                        4
<PAGE>
<TABLE>
<CAPTION>

                       THE GSI GROUP, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (IN THOUSANDS)
                                   (UNAUDITED)

                                SIX FISCAL MONTHS ENDED
                                -----------------------

                                                            JUNE 28,    JUNE 29,
                                                              2002        2001
                                                           ----------  ----------
<S>                                                        <C>         <C>
Cash Flows From Operating Activities:
  Depreciation and amortization expense . . . . . . . . .      3,694       4,356
  Other . . . . . . . . . . . . . . . . . . . . . . . . .    (12,525)    (12,165)
                                                           ----------  ----------
          Net cash flows used in operating activities . .     (8,831)     (7,809)
                                                           ----------  ----------


Cash Flows From Investing Activities:
  Capital expenditures. . . . . . . . . . . . . . . . . .     (3,707)     (3,363)
  Proceeds from sale of fixed assets. . . . . . . . . . .      1,253         429
  Other . . . . . . . . . . . . . . . . . . . . . . . . .        152        (561)
                                                           ----------  ----------
          Net cash flows used in investing activities . .     (2,302)     (3,495)
                                                           ----------  ----------

Cash Flows From Financing Activities:
    Proceeds from shareholder loan. . . . . . . . . . . .        418         559
    Payments on shareholder loan. . . . . . . . . . . . .       (291)     (1,173)
  Payments on long-term debt. . . . . . . . . . . . . . .     (3,127)     (2,298)
  Net borrowings under line-of-credit agreement . . . . .     16,900      16,700
    Dividends . . . . . . . . . . . . . . . . . . . . . .     (1,909)     (1,159)
  Other . . . . . . . . . . . . . . . . . . . . . . . . .       (915)       (519)
                                                           ----------  ----------
          Net cash flows provided by financing activities     11,076      12,110
                                                           ----------  ----------

Effect of Exchange Rate Changes on Cash . . . . . . . . .       (221)       (262)

Increase (Decrease) In Cash and Cash Equivalents. . . . .  $    (278)  $     544
Cash and Cash Equivalents, beginning of period. . . . . .      2,828       2,679
                                                           ----------  ----------
Cash and Cash Equivalents, end of period. . . . . . . . .  $   2,550   $   3,223
                                                           ==========  ==========
</TABLE>



The accompanying notes to consolidated financial statements are an integral part
                              of these statements.









                                        5
<PAGE>
                      THE GSI GROUP, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

          The  financial  statements  have  been prepared by The GSI Group, Inc.
(the  "Company"),  without  audit,  pursuant to the rules and regulations of the
Securities  and  Exchange  Commission.  Certain  information  and  footnote
disclosures  normally  included  in  financial statements prepared in accordance
with  generally  accepted  accounting  principles have been condensed or omitted
pursuant  to  such rules and regulations, although the Company believes that the
disclosures  are  adequate  to  make  the  information  not  misleading.  These
financial statements should be read in conjunction with the financial statements
and  related  notes  contained  in  the Company's December 31, 2001 Form 10-K as
filed  with  the  Securities  and  Exchange Commission.  Other than as indicated
herein,  there  have been no significant changes from the data presented in said
10-K.

     In  the  opinion  of  management,  the  financial  statements  contain  all
adjustments necessary to present fairly the financial position of the Company as
of June 28, 2002 and the results of operations for the six months ended June 28,
2002  and  cash flows for the six months ended June 28, 2002.  Those adjustments
consist  only  of normal recurring adjustments.  Certain prior year amounts have
been  reclassified  to  be  consistent  with  the  current  year  presentation.

     The  condensed consolidated balance sheet of the Company as of December 31,
2001 has been derived from the audited consolidated balance sheet of the Company
as  of  that  date.

     The  results of operations for the six-month period ended June 28, 2002 are
not  necessarily  indicative  of  the  operating  results  for  the  full  year.


2.     COMPREHENSIVE  LOSS

          The  components of comprehensive loss for the periods presented are as
follows  (in  thousands):
<TABLE>
<CAPTION>


                                              June 28,    June 29,
                                                2002        2001
<S>                                          <C>         <C>
Net income (loss) . . . . . . . . . . . . .  $     670   $  (1,237)

Cumulative currency translation adjustment.     (2,136)     (1,761)
  Comprehensive loss. . . . . . . . . . . .  $  (1,466)  $  (2,998)
                                             ==========  ==========
</TABLE>




3.     DETAIL  OF  CERTAIN  ASSETS
<TABLE>
<CAPTION>


                               JUNE 28,   DECEMBER 31,
                                 2002         2001
                               ---------  -------------
<S>          <C>               <C>        <C>
               (IN THOUSANDS)
Inventories
             Raw materials     $  20,555  $      13,341
             Work-in-process      14,795         18,322
             Finished goods       37,940         23,631
                               ---------  -------------
             Total             $  73,290  $      55,294
                               =========  =============
</TABLE>



                                        6
<PAGE>



4.     SUPPLEMENTAL  CASH  FLOW  INFORMATION

     The  Company  paid  approximately $5.9 million and $6.8 million in interest
during  the six months ended June 28, 2002 and June 29, 2001, respectively.  The
Company  paid  $0.0  million  and $0.1 million income taxes during the first six
months  of  2002  and  2001.


5.     LONG-TERM  DEBT

     The  indenture  governing  the Company's senior subordinated notes provides
for  certain  restrictive  covenants.  The  more  significant  of  the covenants
restrict  the  ability  of  the  Company  to dispose of assets, incur additional
indebtedness,  pay  dividends or make distributions and other payments affecting
subsidiaries.  The  Company  was  in  compliance  with  the  covenants under the
indenture  as  of  June  28,  2002.

     The  Credit  Facility  with  LaSalle Bank National Association requires the
Company  to maintain certain financial covenants.  The Company was in compliance
with  the  covenants  under the Credit Facility as of June 28, 2002.  The Credit
Facility  provides  for a $5.0 million borrowing base over-advance which expires
on  September  30,  2002  and  bears  an  interest  rate  of  LIBOR  plus  3.5%.


6.     COMMITMENTS  AND  CONTINGENCIES

     Sales  of  agricultural  equipment are seasonal, with farmers traditionally
purchasing  grain  storage  bins  and grain drying and handling equipment in the
summer and fall in conjunction with the harvesting season, and swine and poultry
producers  purchasing equipment during prime construction periods in the spring,
summer  and  fall.  The  Company's  sales  and net income have historically been
lower  during the first and fourth fiscal quarters as compared to the second and
third  quarters.

     The  Company  has  a  contract  with the Syrian government and one with the
Yemen  Company  for  Industrial  Development  to  manufacture  and supervise the
assembly  of  grain  handling  systems.  Other  current  assets and other assets
include  $2.5 million of retainage withheld until completion of the projects and
the  meeting  of certain performance criteria.  These receivables are secured by
letters of credit totaling $1.9 million and are expected to be collected through
the  year  2002.

     The  Company  has an operating lease agreement that requires the Company to
maintain  a  certain senior debt to EBITDA ratio, tangible net worth and certain
levels  of  capital expenditures and EBITDA.  The Company was in compliance with
these  covenants  under  the  operating  lease  agreement  as  of June 28, 2002.
Certain  lease  agreements  are  collateralized  by  a  letter of credit of $2.0
million  that  expires  on  October  15,  2002.


7.     BUSINESS  SEGMENT

     The  Company  has  no  separately  reportable  segments  in accordance with
Statement  of  Financial Accounting Standard ("SFAS") No. 131, "Disclosure About
Segments  of  an Enterprise and Related Information."  Under the enterprise wide
disclosure  requirements  of SFAS 131, the Company reports sales by each product
line.  Amounts for the first quarters of 2002 and 2001 are as shown in the table
below  (in  thousands).
<TABLE>
<CAPTION>


                      JUNE 28,   JUNE 29,
                        2002       2001
                      ---------  ---------
<S>                   <C>        <C>
Grain product line .  $  65,288  $  62,587
Swine product line .     26,076     23,192
Poultry product line     27,465     24,688
                      ---------  ---------
     Sales . . . . .  $ 118,829  $ 110,467
                      =========  =========
</TABLE>


     For  the  first  six  months  of  2002 and 2001, sales in Brazil were $10.5
million  and  $7.5 million, respectively.  Long-lived assets in Brazil were $2.6
million  at  June  28,  2002.

                                        7
<PAGE>

8.     CURRENT  ACCOUNTING  ISSUES

     SFAS  No. 142 "Goodwill and Other Intangible Assets", was effective for the
Company  for  the fiscal quarter beginning January 1, 2002.  The Company adopted
SFAS  No.  142  and performed the initial impairment assessment as of January 1,
2002.  There  was  no  impairment  of  goodwill  as  of  June  28,  2002.

9.     GUARANTOR  SUBSIDIARIES

     The  Company's  payment  obligation under the senior subordinated notes are
fully  and  unconditionally  guaranteed  on  a  joint and several basis by David
Manufacturing  Company,  GSI/Cumberland  de  Mexico  S.  de  R.L.  de  C.V.,
GSI/Cumberland  BV,  GSI/Cumberland  SA  (Pty) Ltd., GSI Group (Asia) Sdn. Bhd.,
Agromarau  Industria  e  Comercio Ltda., GSI Agricultural Equipment Shanghai Co.
Ltd.,  and  The  GSI  Group  (Canada)  Inc. (the "Guarantor Subsidiaries").  The
Guarantor Subsidiaries are direct wholly owned subsidiaries of the Company.  The
obligations  of  the  Guarantor  Subsidiaries  under  their  guarantees  are
subordinated  to  such  subsidiaries'  obligations  under their guarantee of the
Credit  Facility.

     Presented  below is unaudited condensed consolidating financial information
for  The  GSI Group, Inc. ("Parent Company") and the Guarantor Subsidiaries.  In
the  Company's  opinion,  separate  financial  statements  and other disclosures
concerning  the  Guarantor Subsidiaries would not provide additional information
that  is  material  to  investors.

     Investments  in  subsidiaries are accounted for by the Parent Company using
the  equity  method  of  accounting.  Earnings  of  subsidiaries are, therefore,
reflected  in  the  Parent  Company's  investments  in  and  advances  to/from
subsidiaries'  accounts  and  earnings.  The  elimination  entries  eliminate
investments  in  subsidiaries  and  intercompany  balances  and  transactions.


                                        8
<PAGE>
9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>

                               SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
                                                 JUNE 28, 2002
                                                 (IN THOUSANDS)


                                                       Parent      Guarantor
                                                       Company    Subsidiaries    Eliminations    Consolidated
                                                      ---------  --------------  --------------  --------------
<S>                                                   <C>        <C>             <C>             <C>
ASSETS
Current assets:
     Cash and cash equivalents . . . . . . . . . . .  $    100   $       2,450   $          --   $       2,550
     Accounts receivable, net. . . . . . . . . . . .    38,178           9,859          (7,409)         40,628
     Inventories, net. . . . . . . . . . . . . . . .    55,070          18,421            (201)         73,290
     Other current assets. . . . . . . . . . . . . .     5,415           1,935              --           7,350
                                                      ---------  --------------  --------------  --------------

     Total current assets. . . . . . . . . . . . . .    98,763          32,665          (7,610)        123,818

Property, plant and equipment, net . . . . . . . . .    33,657           6,985              --          40,642
Goodwill and other intangible assets, net. . . . . .     2,980          11,015              --          13,995
Investment in and advances to/from subsidiaries. . .    45,437          (6,005)        (39,432)             --
Other long-term assets . . . . . . . . . . . . . . .     2,820              67              --           2,887
                                                      ---------  --------------  --------------  --------------

     Total assets. . . . . . . . . . . . . . . . . .  $183,657   $      44,727   $     (47,042)  $     181,342
                                                      =========  ==============  ==============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
     Current portion of long-term debt . . . . . . .  $  2,761   $          24   $          --   $       2,785
     Accounts payable. . . . . . . . . . . . . . . .    23,698          10,261          (7,409)         26,550
     Accrued liabilities . . . . . . . . . . . . . .    16,667           2,350             (11)         19,006
                                                      ---------  --------------  --------------  --------------

     Total current liabilities . . . . . . . . . . .    43,126          12,635          (7,420)         48,341

Long-term debt . . . . . . . . . . . . . . . . . . .   146,329          12,386          (8,599)        150,116
Other long-term liabilities. . . . . . . . . . . . .      (174)          1,035              --             861
                                                      ---------  --------------  --------------  --------------

     Total liabilities . . . . . . . . . . . . . . .   189,281          26,056         (16,019)        199,318

Stockholders' equity (deficit):
     Common stock. . . . . . . . . . . . . . . . . .        18          23,539         (23,539)             18
     Additional paid-in capital. . . . . . . . . . .     3,006             305            (305)          3,006
     Accumulated other comprehensive loss. . . . . .        --         (12,352)             --         (12,352)
     Retained earnings (deficit) . . . . . . . . . .    18,311           7,179          (7,179)         18,311
     Treasury stock, at cost . . . . . . . . . . . .   (26,959)             --              --         (26,959)
                                                      ---------  --------------  --------------  --------------

     Total stockholders' equity (deficit). . . . . .    (5,624)         18,671         (31,023)        (17,976)
                                                      ---------  --------------  --------------  --------------

Total liabilities and stockholders' equity (deficit)  $183,657   $      44,727   $     (47,042)  $     181,342
                                                      =========  ==============  ==============  ==============


                                        9
<PAGE>
</TABLE>



9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>

                               SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
                                                 JUNE 29, 2001
                                                 (IN THOUSANDS)


                                                       Parent      Guarantor
                                                       Company    Subsidiaries    Eliminations    Consolidated
                                                      ---------  --------------  --------------  --------------
<S>                                                   <C>        <C>             <C>             <C>
ASSETS
Current assets:
     Cash and cash equivalents . . . . . . . . . . .  $     27   $       3,196   $          --   $       3,223
     Accounts receivable, net. . . . . . . . . . . .    29,434          11,442          (5,893)         34,983
     Inventories, net. . . . . . . . . . . . . . . .    45,410          17,249             137          62,796
     Other current assets. . . . . . . . . . . . . .     2,383           1,302              --           3,685
                                                      ---------  --------------  --------------  --------------

     Total current assets. . . . . . . . . . . . . .    77,254          33,189          (5,756)        104,687

Property, plant and equipment, net . . . . . . . . .    35,429           9,994              --          45,423
Goodwill and other intangible assets, net. . . . . .     2,987          12,921              --          15,908
Investment in and advances to/from subsidiaries. . .    47,368          (7,744)        (39,624)             --
Other long-term assets . . . . . . . . . . . . . . .     5,967              72              --           6,039
                                                      ---------  --------------  --------------  --------------

     Total assets. . . . . . . . . . . . . . . . . .  $169,005   $      48,432   $     (45,380)  $     172,057
                                                      =========  ==============  ==============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
     Current portion of long-term debt . . . . . . .  $  3,173   $       1,068   $          --   $       4,241
     Accounts payable. . . . . . . . . . . . . . . .    14,291           8,080          (5,893)         16,478
     Accrued liabilities . . . . . . . . . . . . . .    15,859           3,945              --          19,804
                                                      ---------  --------------  --------------  --------------

     Total current liabilities . . . . . . . . . . .    33,323          13,093          (5,893)         40,523

Long-term debt . . . . . . . . . . . . . . . . . . .   142,299          13,097          (9,031)        146,365
Other long-term liabilities. . . . . . . . . . . . .       142           1,652              --           1,794
                                                      ---------  --------------  --------------  --------------

     Total liabilities . . . . . . . . . . . . . . .   175,764          27,842         (14,924)        188,682

Stockholders' equity (deficit):
     Common stock. . . . . . . . . . . . . . . . . .        18          23,526         (23,526)             18
     Additional paid-in capital. . . . . . . . . . .     3,006             305            (305)          3,006
     Accumulated other comprehensive loss. . . . . .        --          (9,866)             --          (9,866)
     Retained earnings (deficit) . . . . . . . . . .    17,176           6,625          (6,625)         17,176
     Treasury stock, at cost . . . . . . . . . . . .   (26,959)             --              --         (26,959)
                                                      ---------  --------------  --------------  --------------

     Total stockholders' equity (deficit). . . . . .    (6,759)         20,590         (30,456)        (16,625)
                                                      ---------  --------------  --------------  --------------

Total liabilities and stockholders' equity (deficit)  $169,005   $      48,432   $     (45,380)  $     172,057
                                                      =========  ==============  ==============  ==============



                                       10
<PAGE>

</TABLE>


9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>


                             SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                                        THREE FISCAL MONTHS ENDED JUNE 28, 2002
                                                    (IN THOUSANDS)




                                                              Parent      Guarantor
                                                              Company    Subsidiaries    Eliminations    Consolidated
                                                             ---------  --------------  --------------  --------------
<S>                                                          <C>        <C>             <C>             <C>
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 61,329   $      13,193   $      (8,621)  $      65,901
Cost of sales . . . . . . . . . . . . . . . . . . . . . . .    50,702           9,395          (9,054)         51,043
                                                             ---------  --------------  --------------  --------------

     Gross profit . . . . . . . . . . . . . . . . . . . . .    10,627           3,798             433          14,858

Selling, general and administrative expenses. . . . . . . .     6,419           3,002              --           9,421
                                                             ---------  --------------  --------------  --------------

     Operating income . . . . . . . . . . . . . . . . . . .     4,208             796             433           5,437

Interest expense. . . . . . . . . . . . . . . . . . . . . .    (3,312)            (18)             --          (3,330)
Other expense . . . . . . . . . . . . . . . . . . . . . . .      (104)           (272)             --            (376)
                                                             ---------  --------------  --------------  --------------

Income before income taxes. . . . . . . . . . . . . . . . .       792             506             433           1,731
Provision (benefit) for income taxes. . . . . . . . . . . .       (23)            149              --             126
                                                             ---------  --------------  --------------  --------------
Income before equity in income of consolidated subsidiaries       815             357             433           1,605
Equity in income of consolidated subsidiaries . . . . . . .       357              --            (357)             --
                                                             ---------  --------------  --------------  --------------

Net income. . . . . . . . . . . . . . . . . . . . . . . . .  $  1,172   $         357   $          76   $       1,605
                                                             =========  ==============  ==============  ==============

</TABLE>



                                       11
<PAGE>
9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>

                             SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                                        THREE FISCAL MONTHS ENDED JUNE 29, 2001
                                                    (IN THOUSANDS)




                                                              Parent      Guarantor
                                                              Company    Subsidiaries    Eliminations    Consolidated
                                                             ---------  --------------  --------------  --------------
<S>                                                          <C>        <C>             <C>             <C>
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 54,858   $      16,157   $      (5,517)  $      65,498
Cost of sales . . . . . . . . . . . . . . . . . . . . . . .    43,326          12,756          (5,738)         50,344
                                                             ---------  --------------  --------------  --------------

     Gross profit . . . . . . . . . . . . . . . . . . . . .    11,532           3,401             221          15,154

Selling, general and administrative expenses. . . . . . . .     6,898           3,265              --          10,163
                                                             ---------  --------------  --------------  --------------

     Operating income . . . . . . . . . . . . . . . . . . .     4,634             136             221           4,991

Interest expense. . . . . . . . . . . . . . . . . . . . . .    (3,562)           (110)             --          (3,672)
Other expense . . . . . . . . . . . . . . . . . . . . . . .      (164)             76              --             (88)
                                                             ---------  --------------  --------------  --------------

Income before income taxes. . . . . . . . . . . . . . . . .       908             102             221           1,231
Provision (benefit) for income taxes. . . . . . . . . . . .        (1)             99              --              98
                                                             ---------  --------------  --------------  --------------
Income before equity in income of consolidated subsidiaries       909               3             221           1,133
Equity in income of consolidated subsidiaries . . . . . . .         3              --              (3)             --
                                                             ---------  --------------  --------------  --------------

Net income. . . . . . . . . . . . . . . . . . . . . . . . .  $    912   $           3   $         218   $       1,133
                                                             =========  ==============  ==============  ==============

</TABLE>




                                       12
<PAGE>
9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>


                              SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                                         SIX FISCAL MONTHS ENDED JUNE 28, 2002
                                                     (IN THOUSANDS)




                                                               Parent      Guarantor
                                                               Company    Subsidiaries    Eliminations    Consolidated
                                                              ---------  --------------  --------------  --------------
<S>                                                           <C>        <C>             <C>             <C>
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $108,443   $      25,367   $     (14,981)  $     118,829
Cost of sales. . . . . . . . . . . . . . . . . . . . . . . .    89,021          18,383         (15,111)         92,293
                                                              ---------  --------------  --------------  --------------

     Gross profit. . . . . . . . . . . . . . . . . . . . . .    19,422           6,984             130          26,536

Selling, general and administrative expenses . . . . . . . .    12,812           5,733              --          18,545
                                                              ---------  --------------  --------------  --------------

     Operating income. . . . . . . . . . . . . . . . . . . .     6,610           1,251             130           7,991

Interest expense . . . . . . . . . . . . . . . . . . . . . .    (6,450)            (34)             --          (6,484)
Other expense. . . . . . . . . . . . . . . . . . . . . . . .      (244)           (458)             --            (702)
                                                              ---------  --------------  --------------  --------------

Income (loss) before income taxes. . . . . . . . . . . . . .       (84)            759             130             805
Provision (benefit) for income taxes . . . . . . . . . . . .       (17)            152              --             135
                                                              ---------  --------------  --------------  --------------
Income before equity in income of consolidated subsidiaries.       (67)            607             130             670
Equity in income of consolidated subsidiaries. . . . . . . .       607              --            (607)             --
                                                              ---------  --------------  --------------  --------------

Net income (loss). . . . . . . . . . . . . . . . . . . . . .  $    540   $         607   $        (477)  $         670
                                                              =========  ==============  ==============  ==============

</TABLE>



                                       13
<PAGE>
9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>

                                 SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                                             SIX FISCAL MONTHS ENDED JUNE 29, 2001
                                                        (IN THOUSANDS)




                                                                      Parent      Guarantor
                                                                      Company    Subsidiaries    Eliminations    Consolidated
                                                                     ---------  --------------  --------------  --------------
<S>                                                                  <C>        <C>             <C>             <C>
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 92,079   $      27,986   $      (9,598)  $     110,467
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . .    72,241          21,687          (9,869)         84,059
                                                                     ---------  --------------  --------------  --------------

     Gross profit . . . . . . . . . . . . . . . . . . . . . . . . .    19,838           6,299             271          26,408

Selling, general and administrative expenses. . . . . . . . . . . .    13,762           6,654              --          20,416
                                                                     ---------  --------------  --------------  --------------

     Operating income (loss). . . . . . . . . . . . . . . . . . . .     6,076            (355)            271           5,992

Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . .    (7,131)           (220)             --          (7,351)
Other expense . . . . . . . . . . . . . . . . . . . . . . . . . . .      (131)            162              --              31
                                                                     ---------  --------------  --------------  --------------

(Loss) income before income taxes . . . . . . . . . . . . . . . . .    (1,186)           (413)            271          (1,328)
Provision (benefit) for income taxes. . . . . . . . . . . . . . . .        27            (118)             --             (91)
                                                                     ---------  --------------  --------------  --------------
(Loss) income before equity in income of consolidated subsidiaries.    (1,213)           (295)            271          (1,237)
Equity in income of consolidated subsidiaries . . . . . . . . . . .      (295)             --             295              --
                                                                     ---------  --------------  --------------  --------------

Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (1,508)  $        (295)  $         566   $      (1,237)
                                                                     =========  ==============  ==============  ==============

</TABLE>




                                       14
<PAGE>
9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>

                                SUPPLEMENTAL CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                           SIX FISCAL MONTHS ENDED JUNE 28, 2002
                                                       (IN THOUSANDS)




                                                                    Parent      Guarantor
                                                                    Company    Subsidiaries   Eliminations    Consolidated
                                                                   ---------  --------------  -------------  --------------
<S>                                                                <C>        <C>             <C>            <C>
Cash flows used in operating activities . . . . . . . . . . . . .  $ (8,355)  $        (476)  $          --  $      (8,831)
                                                                   ---------  --------------  -------------  --------------

Cash flows from investing activities:
     Capital expenditures and proceeds from sales of fixed assets    (3,428)           (279)             --         (3,707)
     Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,385              20              --          1,405
                                                                   ---------  --------------  -------------  --------------

     Net cash used in investing activities. . . . . . . . . . . .    (2,043)           (259)             --         (2,302)
                                                                   ---------  --------------  -------------  --------------

Cash flows from financing activities:
     Net borrowings  on debt. . . . . . . . . . . . . . . . . . .    10,763           3,137              --         13,900
     Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .    (1,747)         (1,077)             --         (2,824)
                                                                   ---------  --------------  -------------  --------------

     Net cash provided by financing activities. . . . . . . . . .     9,016           2,060              --         11,076
                                                                   ---------  --------------  -------------  --------------

Effect of exchange rate changes in cash . . . . . . . . . . . . .        --            (221)             --           (221)

Change in cash and cash equivalents . . . . . . . . . . . . . . .    (1,382)          1,104              --           (278)

Cash and cash equivalents, beginning of period. . . . . . . . . .     1,482           1,346              --          2,828
                                                                   ---------  --------------  -------------  --------------

Cash and cash equivalents, end of period. . . . . . . . . . . . .  $    100   $       2,450              --  $       2,550
                                                                   =========  ==============  =============  ==============


</TABLE>



                                       15
<PAGE>
9.     GUARANTOR  SUBSIDIARIES  (CONTINUED)
<TABLE>
<CAPTION>

                                SUPPLEMENTAL CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                           SIX FISCAL MONTHS ENDED JUNE 29, 2001
                                                       (IN THOUSANDS)




                                                                    Parent      Guarantor
                                                                    Company    Subsidiaries   Eliminations    Consolidated
                                                                   ---------  --------------  -------------  --------------
<S>                                                                <C>        <C>             <C>            <C>
Cash flows used in operating activities . . . . . . . . . . . . .  $ (7,771)  $         (38)  $          --  $      (7,809)
                                                                   ---------  --------------  -------------  --------------

Cash flows from investing activities:
     Capital expenditures and proceeds from sales of fixed assets    (3,627)            264              --         (3,363)
     Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .      (368)            236              --           (132)
                                                                   ---------  --------------  -------------  --------------

     Net cash provided by (used in) investing activities. . . . .    (3,995)            500              --         (3,495)
                                                                   ---------  --------------  -------------  --------------

Cash flows from financing activities:
     Net borrowings on debt . . . . . . . . . . . . . . . . . . .    13,471             317              --         13,788
     Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .    (1,525)           (153)             --         (1,678)
                                                                   ---------  --------------  -------------  --------------

     Net cash provided by financing activities. . . . . . . . . .    11,946             164              --         12,110
                                                                   ---------  --------------  -------------  --------------

Effect of exchange rate changes in cash . . . . . . . . . . . . .        --            (262)             --           (262)

Change in cash and cash equivalents . . . . . . . . . . . . . . .       180             364              --            544

Cash and cash equivalents, beginning of period. . . . . . . . . .        20           2,659              --          2,679
                                                                   ---------  --------------  -------------  --------------

Cash and cash equivalents, end of period. . . . . . . . . . . . .  $    200   $       3,023              --  $       3,223
                                                                   =========  ==============  =============  ==============


</TABLE>




                                       16
<PAGE>

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

     The  following  discussion  of  the  financial  condition  and  results  of
operations  of  the  Company should be read in conjunction with the Consolidated
Financial  Statements  and  the  notes  included  in  Item  1  hereof.

GENERAL

     The  Company  is  a  leading  manufacturer  and  supplier  of  agricultural
equipment  and  services  worldwide.  The  Company's  grain,  swine  and poultry
products  are  used  by  producers  and purchasers of grain, and by producers of
swine  and  poultry. Fluctuations in grain and feed prices directly impact sales
of  the  Company's  grain equipment. Because the primary cost of producing swine
and  poultry  is the cost of the feed grain consumed by animals, fluctuations in
the  supply and cost of grain to users of the Company's products in the past has
impacted  sales  of  the  Company's  swine  and  poultry  equipment. The Company
believes,  however,  that its diversified product offerings mitigate some of the
effects  of  fluctuations  in  the  price  of  grain  since the demand for grain
storage,  drying  and  handling  equipment  tends  to increase during periods of
higher  grain prices, which somewhat offsets the reduction in demand during such
periods  for  the  Company's  products  by  producers  of  swine  and  poultry.

     Sales  of  agricultural  equipment are seasonal, with farmers traditionally
purchasing  grain  storage  bins  and grain drying and handling equipment in the
summer and fall in conjunction with the harvesting season, and swine and poultry
producers  purchasing equipment during prime construction periods in the spring,
summer  and fall.  The Company's net sales and net income have historically been
lower  during the first and fourth fiscal quarters as compared to the second and
third  quarters.

     Although  the Company's sales are primarily denominated in U.S. dollars and
are  not  generally  affected by currency fluctuations (except for the Company's
Brazilian  and  South  African operations), the production costs, profit margins
and competitive position of the Company are affected by the strength of the U.S.
dollar  relative  to  the  strength  of  the  currencies  in countries where its
products  are  sold.

     The Company's international sales have historically comprised a significant
portion  of  net  sales. In the first six months of 2002 and 2001, the Company's
international  sales  accounted  for  28%  and  30%  of net sales, respectively.
International  operations  generally  are  subject to various risks that are not
present  in  domestic  operations,  including  restrictions  on  dividends,
restrictions  on  repatriation of funds, unexpected changes in tariffs and other
trade  barriers,  difficulties  in  staffing  and  managing  foreign operations,
political  instability,  fluctuations  in  currency  exchange  rates,  reduced
protection  for  intellectual  property  rights  in  some  countries,  seasonal
reductions in business activity and potentially adverse tax consequences, any of
which  could  adversely  impact  the  Company's  international  operations.

     The  primary  raw materials used by the Company to manufacture its products
are  steel and polymers.  Fluctuations in the prices and availability of vendors
for  steel  and,  to a lesser extent, polymer materials can impact the Company's
cost  of  sales.  Recent  increases  in  steel  tariffs  initiated  by  the U.S.
Government  has  adversely  effected  the  price the Company pays for steel.  In
response  to steel price increases, the Company has nominally raised the selling
price  of  their  products.

     The  Company  currently  operates  as  a  subchapter  S  corporation  and,
accordingly, is not subject to federal income taxation for the periods for which
financial  information  has  been  presented  herein.  Because  the  Company's
stockholders  are  subject  to tax liabilities based on their pro rata shares of
the  Company's income, the Company's policy is to make periodic distributions to
its  stockholders  in  amounts  equal  to  such  tax  liabilities.

RESULTS  OF  OPERATIONS

Three  Months  Ended  June  28, 2002 Compared to Three Months Ended June 29,2001

     Sales increased 0.6% or $0.4 million to $65.9 million in the second quarter
of  2002 compared to $65.5 million in the second quarter of 2001.  This increase
was  driven  by  increased  demand for the Company's swine and poultry products.

                                       17
<PAGE>

     Gross  profit  decreased  to $14.9 million in the second quarter of 2002 or
22.6%  of sales from $15.2 million or 23.1% of sales in the same period of 2001.
This  decrease  was  a  result  of  lost  productivity  due  to  the  impact  of
consolidation  efforts.

     Operating  expenses  decreased  7.3% or $0.8 million to $9.4 million in the
second  quarter  of  2002  from  $10.2  million in the same period of 2001. This
decrease  was  primarily the result of cost cutting measures, which included the
consolidation  of  the Indianapolis sales office, that occurred during the first
quarter  of  2002.

     Operating  income  increased  8.9% to $5.4 million in the second quarter of
2002  from  $5.0  million  in  the  second  quarter  of 2001.  This increase was
attributable  to  the  decrease  in  operating  expenses.

     Interest  expense  decreased  $0.4 million in the second quarter of 2002 as
compared  to  the  second  quarter  of  2001  due  to  lower  borrowing  costs.

     Net income increased $0.5 million to $1.6 million for the second quarter of
2002  from  $1.1  million  in  the  same  period  of  2001.

Six  Months  Ended  June  28,  2002  Compared  to  Six Months Ended June 29,2001

     Sales  increased  7.6%  or  $8.3 million to $118.8 million in the first six
months of 2002 compared to $110.5 million in the first six months of 2001.  This
increase  was  driven  by  increased demand for essentially all of the Company's
products.

     Gross  profit increased to $26.5 million in the first six months of 2002 or
22.3%  of sales from $26.4 million or 23.9% of sales in the same period of 2001.
This  increase was a result of increased sales.  The decrease in gross profit as
a  percent of sales was primarily the result of the absence of a few high-margin
international  projects that took place in the first six months of 2001 and lost
productivity  due  to  consolidation  efforts.

     Operating  expenses  decreased 9.2% or $1.9 million to $18.5 million in the
first  six  months  of  2002 from $20.4 million in the same period of 2001. This
decrease  was  primarily the result of cost cutting measures, which included the
consolidation  of  the  Indianapolis  sales  office.

     Operating income increased 33.4% to $8.0 million in the first six months of
2002  from  $6.0  million  in  the  first six months of 2001.  This increase was
attributable  to  the  increase  in  gross  profit  and  a decrease in operating
expenses.

     Interest  expense decreased $0.9 million in the first six months of 2002 as
compared  to  the  first  six  months  of  2001  due  to  lower borrowing costs.

     Net  income  increased $1.9 million to income of $0.7 million for the first
six  months  of  2002  from  a  loss of $1.2 million in the same period of 2001.


LIQUIDITY  AND  CAPITAL  RESOURCES

     The  Company  has historically funded capital expenditures, working capital
requirements,  debt  service,  stockholder  dividends and stock repurchases from
cash flow from its operations, augmented by borrowings made under various credit
agreements  and  the  sale  of  the  Company's  10  % senior subordinated notes.

     As  of  June 28, 2002, the Company had $75.5 million of working capital, an
increase  of  $14.0  million  from working capital as of December 31, 2001.  The
increase  in  working  capital  was  primarily due to increases in inventory and
accounts  receivable of $29.7 million, partially offset by increases in accounts
payable,  accrued  expenses  and  customer  deposits  of  $15.7  million.

     Operating activities used $8.8 million and $7.8 million in cash flow in the
first  six months of 2002 and 2001, respectively.  This $1.0 million decrease in
cash  flow  was  primarily  the  result  of  an increase in accounts receivable,
inventory  and  other  current  assets  of  $19.3  million,  partially offset by
increases  in  accrued  expenses,  customer  deposits,  accounts payable and net
income  of  $18.3  million  compared  to  the  first  six  months  of  2001.

                                       18
<PAGE>

     Investing activities used $2.3 million and $3.5 million in cash flow in the
first  six  months  of 2002 and 2001, respectively.  The cash was used primarily
for  machinery  and equipment purchases.  The $1.2 million decrease in cash used
in  investing  activities  was  partially  a result of proceeds from the sale of
fixed  assets.

     Financing  activities provided $11.1 million and $12.1 million in cash flow
in  the  first six months of 2002 and 2001, respectively.  The cash was provided
primarily  from  borrowings  under  the  Credit  Facility,  partially  offset by
payments  on  long-term  debt.

     The  Company  believes  that  existing  cash, cash flow from operations and
available borrowings under the Credit Facility will be sufficient to support its
working  capital,  capital  expenditures  and  debt service requirements for the
foreseeable  future.

INFLATION

     The  Company  believes  that inflation has not had a material effect on its
results  of  operations  or  financial  condition  during  recent  periods.

FORWARD-LOOKING  STATEMENTS

     Certain  statements  contained  in  this  Report  are  "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended,  and  Section  21E  of the Securities Exchange Act of 1934, as amended.
Forward-looking  statements  are statements other than historical information or
statements  of  current  condition.  Some  forward-looking  statements  may  be
identified  by  use  of  terms  such as "believes," "anticipates," "intends," or
"expects."  Forward-looking  statements  are subject to risks, uncertainties and
other  factors  that could cause actual results to differ materially from future
results  expressed or implied by such statements, and such statements should not
be  regarded  as  a  representation  the  stated  objectives  will  be achieved.



ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

     The  Company  is  subject to market risk associated with adverse changes in
interest  rates  and foreign currency exchange rates.  The Company does not hold
any  market  risk sensitive instruments for trading purposes.  At June 28, 2002,
principal exposed to interest rate risk was limited to $52.4 million in variable
rate  debt.  The  Company  measures its interest rate risk by estimating the net
amount  by which potential future net earnings would be impacted by hypothetical
changes  in  market interest rates related to all interest rate sensitive assets
and liabilities.  A 1% change in interest rates would have a $0.5 million impact
on  the  Company's  results  of  operations.

     At  June  28,  2002,  approximately  17%  of  net  sales  were derived from
international  operations  with exposure to foreign currency exchange rate risk.
The  Company  mitigates  its  foreign currency exchange rate risk principally by
establishing  local  production  facilities  in  the  markets  it  serves and by
invoicing  customers  in  the  same currency as the source of the products.  The
Company  also  monitors  its  foreign  currency  exposure  in  each  country and
implements  strategies  to  respond  to  changing  economic  and  political
environments.  The  Company's  exposure  to  foreign currency exchange rate risk
relates primarily to the financial position and the results of operations of its
Brazilian and South African subsidiary.  The Company's exposure to such exchange
rate  risk  as  it  relates  to  the Company's financial position and results of
operations  would  be adversely impacted by further devaluation of the Brazilian
Real  per  U.S.  dollar  and/or  the  South African Rand per U.S. dollar.  These
amounts are difficult to accurately estimate due to factors such as the inherent
fluctuation  of  inter-company  account balances, balance sheet accounts and the
existing  economic  uncertainty  and  future  economic  conditions  in  the
international  marketplace.


                                       19
<PAGE>



                                     PART II
                                OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS.

     There  are  no legal proceedings pending against the Company, which, in the
opinion  of  management,  would  have a material adverse affect on the Company's
business,  financial  position  or  results  of  operations.


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

     (a)  EXHIBITS:

           A  list  of  the  exhibits  included as part of this Form 10-Q is set
forth in the Index to Exhibits that immediately precedes such exhibits, which is
incorporated  herein  by  reference.

(b)     REPORTS  ON  FORM  8-K:

          In a Current Report filed on Form 8-K dated August 5, 2002 the Company
reported  information  pursuant  to  "Item 4. Changes in Registrant's Certifying
Accountant".

                                       20
<PAGE>
                                   SIGNATURES

     PURSUANT  TO  THE  REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT  HAS  DULY  CAUSED  THIS  REPORT  TO  BE  SIGNED ON ITS BEHALF BY THE
UNDERSIGNED  THEREUNTO  DULY  AUTHORIZED.

                                   The  GSI  Group,  Inc.

                                   By:     /s/  Russell  C.  Mello
                                           -----------------------
                                         Chief  Financial  Officer,
                                         Secretary  and  Treasurer  (Authorized
                                         Signatory  and  Principal  Financial
Officer)

DATE:  AUGUST  9,  2002



                                       21
<PAGE>

<TABLE>
<CAPTION>

                                INDEX TO EXHIBITS



EXHIBIT
  NO.    DOCUMENT DESCRIPTION
-------  --------------------------------------------------------------------
<C>      <S>

   99.1  Certification of Chief Executive Officer and Chief Financial Officer


</TABLE>



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