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                       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 March 29, 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 May 3, 2002.


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                                        1
<PAGE>
<TABLE>
<CAPTION>
                                        TABLE OF CONTENTS


                                                                                       PAGE
                                                                                       ----
PART I - FINANCIAL INFORMATION
<S>                                                                                     <C>
  ITEM 1.   Financial Statements
                  Balance Sheets                                                          3
                  Statements of Operations                                                4
                  Statements of Cash Flows                                                5
                  Notes to Financial Statements                                           6
  Item 2.   Management's Discussion and Analysis of Financial Condition and Results of
            Operations                                                                   15
  Item 3.   Quantitative and Qualitative Disclosure About Market Risk. . . . . . . . .   17

PART II - OTHER INFORMATION
  Item 1.   Legal Proceedings  . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18
  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 . . . . . . . . . . . . . . . . . . . . .   18
</TABLE>


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


                                        2
<PAGE>
<TABLE>
<CAPTION>
                                    PART I - FINANCIAL INFORMATION

                                     ITEM 1 - FINANCIAL STATEMENTS

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


                                                                            MARCH 29,    DECEMBER 31,
                                ASSETS                                        2002           2001
-------------------------------------------------------------------------  -----------  --------------
<S>                                                                        <C>          <C>
CURRENT ASSETS:
  Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . .  $    2,895   $       2,828
  Accounts receivable, net. . . . . . . . . . . . . . . . . . . . . . . .      32,626          28,887
  Inventories, net. . . . . . . . . . . . . . . . . . . . . . . . . . . .      65,397          55,294
  Prepaids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       2,520           2,245
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       4,782           4,816
                                                                           -----------  --------------
      Total current assets. . . . . . . . . . . . . . . . . . . . . . . .     108,220          94,070
                                                                           -----------  --------------
NOTES RECEIVABLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . .          --              59
                                                                           -----------  --------------
PROPERTY, PLANT AND EQUIPMENT, net. . . . . . . . . . . . . . . . . . . .      40,260          42,116
                                                                           -----------  --------------
OTHER ASSETS:
  Goodwill and other intangible assets, net . . . . . . . . . . . . . . .      14,736          15,061
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       3,222           3,435
                                                                           -----------  --------------
      Total other assets. . . . . . . . . . . . . . . . . . . . . . . . .      17,958          18,496
                                                                           -----------  --------------
      Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  166,438   $     154,741
                                                                           ===========  ==============

                LIABILITIES AND  STOCKHOLDERS' DEFICIT
-------------------------------------------------------------------------
CURRENT LIABILITIES:
  Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $   18,576   $      12,247
  Accrued interest. . . . . . . . . . . . . . . . . . . . . . . . . . . .       4,523           1,962
  Other accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . .      10,194           9,429
  Customer deposits . . . . . . . . . . . . . . . . . . . . . . . . . . .       9,231           6,204
  Current maturities of long-term debt. . . . . . . . . . . . . . . . . .       3,073           2,707
                                                                           -----------  --------------
      Total current liabilities . . . . . . . . . . . . . . . . . . . . .      45,597          32,549
                                                                           -----------  --------------
LONG-TERM DEBT, less current maturities . . . . . . . . . . . . . . . . .     136,892         136,211
                                                                           -----------  --------------
DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . .         479             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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     (10,261)        (10,216)
  Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . .      17,666          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 . . . . . . . . . . . . . . . . . . . .     (16,530)        (14,601)
                                                                           -----------  --------------
      Total liabilities and stockholders' deficit . . . . . . . . . . . .  $  166,438   $     154,741
                                                                           ===========  ==============
</TABLE>

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


                                        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
                                              -------------------------
                                                MARCH 29,    MARCH 30,
                                                  2002         2001
                                               -----------  -----------
<S>                                            <C>          <C>
Sales . . . . . . . . . . . . . . . . . . . .  $   52,928   $   44,969

Cost of sales . . . . . . . . . . . . . . . .      41,250       33,715

    Gross profit. . . . . . . . . . . . . . .      11,678       11,254

Selling, general and administrative expenses.       8,812        9,815
Amortization expense. . . . . . . . . . . . .         312          438
                                               -----------  -----------
  Total operating expenses. . . . . . . . . .       9,124       10,253
                                               -----------  -----------

Operating income. . . . . . . . . . . . . . .       2,554        1,001

Other income (expense):
  Interest expense. . . . . . . . . . . . . .      (3,154)      (3,679)
  Other, net. . . . . . . . . . . . . . . . .        (326)         119
                                               -----------  -----------

    Loss before income tax benefit. . . . . .        (926)      (2,559)
                                               -----------  -----------

Income tax expense (benefit). . . . . . . . .           9         (189)
                                               -----------  -----------

    Net loss. . . . . . . . . . . . . . . . .  $     (935)  $   (2,370)
                                               -----------  -----------


Basic and diluted loss per share. . . . . . .  $    (0.53)  $    (1.34)
                                               -----------  -----------

Weighted average common shares outstanding. .   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)


                                                                THREE FISCAL MONTHS ENDED
                                                                -------------------------
                                                                  MARCH 29,    MARCH 30,
                                                                    2002         2001
                                                                 -----------  -----------
<S>                                                              <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Depreciation and amortization expense . . . . . . . . . . . .       1,898        2,262
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (1,816)      (6,245)
                                                                 -----------  -----------
      Net cash flows provided by (used in) operating activities          82       (3,983)
                                                                 -----------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures. . . . . . . . . . . . . . . . . . . . .      (1,155)      (1,496)
  Proceeds from sale of fixed assets. . . . . . . . . . . . . .       1,231           88
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .        (106)      (1,231)
                                                                 -----------  -----------
      Net cash flows used in investing activities . . . . . . .         (30)      (2,639)
                                                                 -----------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from shareholder loan. . . . . . . . . . . . . . . .         417          150
  Payments on shareholder loan. . . . . . . . . . . . . . . . .         (30)        (400)
  Payments on long-term debt. . . . . . . . . . . . . . . . . .      (1,781)      (1,782)
  Net borrowings under line-of-credit agreement . . . . . . . .       2,400        9,000
  Dividends . . . . . . . . . . . . . . . . . . . . . . . . . .        (948)        (369)
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .         (49)          44
                                                                 -----------  -----------
      Net cash flows provided by financing activities . . . . .           9        6,643
                                                                 -----------  -----------

EFFECT OF EXCHANGE RATE CHANGES ON CASH . . . . . . . . . . . .           6          (97)

Increase (Decrease) In Cash and Cash Equivalents. . . . . . . .  $       67   $      (76)
CASH AND CASH EQUIVALENTS, beginning of period. . . . . . . . .       2,828        2,679
                                                                 -----------  -----------
CASH AND CASH EQUIVALENTS, end of period. . . . . . . . . . . .  $    2,895   $    2,603
                                                                 ===========  ===========
</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 March 29, 2002 and the results of operations for the three months ended March
29,  2002  and  cash  flows  for the three months ended March 29, 2002.  Certain
prior year amounts have been reclassified to be consistent with the current year
presentation.

     The  results  of operations for the three-month period ended March 29, 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):

                                                       March 29,    March 30,
                                                         2002         2001
                                                      -----------  -----------
          Net loss . . . . . . . . . . . . . . . . .  $     (935)  $   (2,370)
          Cumulative currency translation
          adjustment . . . . . . . . . . . . . . . .         (45)      (1,089)
                                                      -----------  -----------
            Comprehensive loss . . . . . . . . . . .  $     (980)  $   (3,459)
                                                      ===========  ===========


3.   NEW ACCOUNTING PRONOUNCEMENTS

     One  June  30,  2001,  the  Financial  Accounting  Standards  Board  issued
Statement No. 142, "Goodwill and Other Intangible Assets" ("Statement No. 142").
As  a result, the net loss for the three-month period ended March 30, 2001 would
have  been $2,263 excluding goodwill amortization of $107 compared to a net loss
of  $935  for  the  three-month  period  ended  March  29,  2002.

4.   DETAIL  OF  CERTAIN  ASSETS


                                  MARCH 29,      DECEMBER 31,
                                    2002            2001
                               ---------------  -------------
                                        (IN THOUSANDS)
Inventories
              Raw materials .  $        15,657  $      13,341
              Work-in-process           20,387         18,322
              Finished goods.           29,353         23,631
                               ---------------  -------------
                   Total. . .  $        65,397  $      55,294
                               ===============  =============


5.   SUPPLEMENTAL  CASH  FLOW  INFORMATION

     The  Company  paid  approximately $0.4 million and $0.6 million in interest
during  the quarters ended March 29, 2002 and March 30, 2001, respectively.  The
Company  paid  no  income  taxes  during  the  first  quarters of 2002 and 2001.


                                        6
<PAGE>
6.   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  March  29,  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  March  29,  2002.


7.   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 March 29, 2002.
Certain  lease  agreements  are  collateralized  by  a  letter of credit of $2.0
million  that  expires  on  October  15,  2002.


8.   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).

                                        MARCH 29,   MARCH 30,
                                          2002        2001
                                       ----------  ----------
           Grain product line . . . .  $   28,624  $   24,015
           Swine product line . . . .      11,848      10,340
           Poultry product line . . .      12,456      10,614
                                       ----------  ----------
               Sales  . . . . . . . .  $   52,928  $   44,969
                                       ==========  ==========

     For  the first quarters of 2002 and 2001, sales in Brazil were $5.7 million
and  $3.6  million, respectively.  Long-lived assets in Brazil were $3.1 million
at  March  29,  2002.


                                        7
<PAGE>
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>
<TABLE>
<CAPTION>
9.   GUARANTOR  SUBSIDIARIES (CONTINUED)

                               SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
                                                 MARCH 29, 2002
                                                 (IN THOUSANDS)


                                                       Parent      Guarantor
                                                       Company    Subsidiaries    Eliminations    Consolidated
                                                      ---------  --------------  --------------  --------------
<S>                                                   <C>        <C>             <C>             <C>
                                                       ASSETS
Current assets:
   Cash and cash equivalents . . . . . . . . . . . .  $    126   $       2,769   $          --   $       2,895
   Accounts receivable, net. . . . . . . . . . . . .    27,817          10,469          (5,660)         32,626
   Inventories, net. . . . . . . . . . . . . . . . .    51,004          14,973            (580)         65,397
   Other current assets. . . . . . . . . . . . . . .     5,331           1,971              --           7,302
                                                      ---------  --------------  --------------  --------------

   Total current assets. . . . . . . . . . . . . . .    84,278          30,182          (6,240)        108,220

Property, plant and equipment, net . . . . . . . . .    32,600           7,660              --          40,260
Goodwill and other intangible assets, net. . . . . .     2,988          11,748              --          14,736
Investment in and advances to/from
   subsidiaries. . . . . . . . . . . . . . . . . . .    44,586          (4,922)        (39,664)             --
Other long-term assets . . . . . . . . . . . . . . .     3,146              76              --           3,222
                                                      ---------  --------------  --------------  --------------

   Total assets. . . . . . . . . . . . . . . . . . .  $167,598   $      44,744   $     (45,904)  $     166,438
                                                      =========  ==============  ==============  ==============

                                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
   Current portion of long-term debt . . . . . . . .  $  3,022   $          51   $          --   $       3,073
   Accounts payable. . . . . . . . . . . . . . . . .    15,757           8,479          (5,660)         18,576
   Accrued liabilities . . . . . . . . . . . . . . .    21,026           2,933             (11)         23,948
                                                      ---------  --------------  --------------  --------------

   Total current liabilities . . . . . . . . . . . .    39,805          11,463          (5,671)         45,597

Long-term debt . . . . . . . . . . . . . . . . . . .   135,015          10,784          (8,907)        136,892
Other long-term liabilities. . . . . . . . . . . . .      (712)          1,191              --             479
                                                      ---------  --------------  --------------  --------------

   Total liabilities . . . . . . . . . . . . . . . .   174,108          23,438         (14,578)        182,968

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. . . . . . .        --         (10,261)             --         (10,261)
   Retained earnings (deficit) . . . . . . . . . . .    17,425           7,723          (7,482)         17,666
   Treasury stock, at cost . . . . . . . . . . . . .   (26,959)             --              --         (26,959)
                                                      ---------  --------------  --------------  --------------

   Total stockholders' equity (deficit). . . . . . .    (6,510)         21,306         (31,326)        (16,530)
                                                      ---------  --------------  --------------  --------------

Total liabilities and stockholders' equity (deficit)  $167,598   $      44,744   $     (45,904)  $     166,438
                                                      =========  ==============  ==============  ==============
</TABLE>


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

                               SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET
                                                 MARCH 30, 2001
                                                 (IN THOUSANDS)


                                                       Parent      Guarantor
                                                       Company    Subsidiaries    Eliminations    Consolidated
                                                      ---------  --------------  --------------  --------------
<S>                                                   <C>        <C>             <C>             <C>
                                                       ASSETS
Current assets:
  Cash and cash equivalents. . . . . . . . . . . . .  $    177   $       2,426   $          --   $       2,603
  Accounts receivable, net . . . . . . . . . . . . .    22,073          10,675          (5,230)         27,518
  Inventories, net . . . . . . . . . . . . . . . . .    49,864          17,047            (516)         66,395
  Other current assets . . . . . . . . . . . . . . .     2,716           2,530              --           5,246
                                                      ---------  --------------  --------------  --------------

  Total current assets . . . . . . . . . . . . . . .    74,830          32,678          (5,746)        101,762

Property, plant and equipment, net . . . . . . . . .    35,736          10,532              --          46,268
Goodwill and other intangible assets, net. . . . . .     3,010          13,551              --          16,561
Investment in and advances to/from
  subsidiaries . . . . . . . . . . . . . . . . . . .    47,448          (7,716)        (39,732)             --
Other long-term assets . . . . . . . . . . . . . . .     6,279              75              --           6,354
                                                      ---------  --------------  --------------  --------------

  Total assets . . . . . . . . . . . . . . . . . . .  $167,303   $      49,120   $     (45,478)  $     170,945
                                                      =========  ==============  ==============  ==============

                                   LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
  Current portion of long-term debt. . . . . . . . .  $ 42,294   $       1,172   $          --   $      43,466
  Accounts payable . . . . . . . . . . . . . . . . .    12,100           7,104          (5,230)         13,974
  Accrued liabilities. . . . . . . . . . . . . . . .    22,053           5,452              --          27,505
                                                      ---------  --------------  --------------  --------------

  Total current liabilities. . . . . . . . . . . . .    76,447          13,728          (5,230)         84,945

Long-term debt . . . . . . . . . . . . . . . . . . .    97,816          12,522          (9,792)        100,546
Other long-term liabilities. . . . . . . . . . . . .       142           1,608              --           1,750
                                                      ---------  --------------  --------------  --------------

  Total liabilities. . . . . . . . . . . . . . . . .   174,405          27,858         (15,022)        187,241

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 . . . . . . .        --          (9,194)             --          (9,194)
  Retained earnings (deficit). . . . . . . . . . . .    16,833           6,625          (6,625)         16,833
  Treasury stock, at cost. . . . . . . . . . . . . .   (26,959)             --              --         (26,959)
                                                      ---------  --------------  --------------  --------------

  Total stockholders' equity (deficit) . . . . . . .    (7,102)         21,262         (30,456)        (16,296)
                                                      ---------  --------------  --------------  --------------

Total liabilities and stockholders' equity (deficit)  $167,303   $      49,120   $     (45,478)  $     170,945
                                                      =========  ==============  ==============  ==============
</TABLE>


                                        10
<PAGE>
<TABLE>
<CAPTION>
9.   GUARANTOR  SUBSIDIARIES  (CONTINUED)

                       SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                                 THREE FISCAL MONTHS ENDED MARCH 29, 2002
                                              (IN THOUSANDS)


                                                 Parent      Guarantor
                                                 Company    Subsidiaries    Eliminations    Consolidated
                                                ---------  --------------  --------------  --------------
<S>                                             <C>        <C>             <C>             <C>
Sales. . . . . . . . . . . . . . . . . . . . .  $ 47,114   $      12,174   $      (6,360)  $      52,928
Cost of sales. . . . . . . . . . . . . . . . .    38,319           8,988          (6,057)         41,250
                                                ---------  --------------  --------------  --------------

   Gross profit. . . . . . . . . . . . . . . .     8,795           3,186            (303)         11,678

Selling, general and administrative expenses .     6,393           2,731              --           9,124
                                                ---------  --------------  --------------  --------------

   Operating income (loss) . . . . . . . . . .     2,402             455            (303)          2,554

Interest expense . . . . . . . . . . . . . . .    (3,138)            (16)             --          (3,154)
Other expense. . . . . . . . . . . . . . . . .      (140)           (186)             --            (326)
                                                ---------  --------------  --------------  --------------

(Loss) income before income taxes. . . . . . .      (876)            253            (303)           (926)
Provision for income taxes . . . . . . . . . .         6               3              --               9
                                                ---------  --------------  --------------  --------------
(Loss) income before equity in income of
   Consolidated subsidiaries . . . . . . . . .      (882)            250            (303)           (935)
Equity in income of consolidated subsidiaries.      (250)             --             250              --
                                                ---------  --------------  --------------  --------------

Net (loss) income. . . . . . . . . . . . . . .  $ (1,132)  $         250   $         (53)  $        (935)
                                                =========  ==============  ==============  ==============
</TABLE>


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

                      SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                                THREE FISCAL MONTHS ENDED MARCH 30, 2001
                                             (IN THOUSANDS)


                                                Parent      Guarantor
                                                Company    Subsidiaries    Eliminations    Consolidated
                                               ---------  --------------  --------------  --------------
<S>                                            <C>        <C>             <C>             <C>
Sales . . . . . . . . . . . . . . . . . . . .  $ 37,221   $      11,829   $      (4,081)  $      44,969
Cost of sales . . . . . . . . . . . . . . . .    28,915           8,931          (4,131)         33,715
                                               ---------  --------------  --------------  --------------

  Gross profit. . . . . . . . . . . . . . . .     8,306           2,898              50          11,254

Selling, general and administrative expenses.     6,864           3,389              --          10,253
                                               ---------  --------------  --------------  --------------

  Operating income (loss) . . . . . . . . . .     1,442            (491)             50           1,001

Interest expense. . . . . . . . . . . . . . .    (3,569)           (110)             --          (3,679)
Other income. . . . . . . . . . . . . . . . .        33              86              --             119
                                               ---------  --------------  --------------  --------------

Loss before income taxes. . . . . . . . . . .    (2,094)           (515)             50          (2,559)
Provision (benefit) for income taxes. . . . .        28            (217)             --            (189)
                                               ---------  --------------  --------------  --------------
Loss before equity in income of
  consolidated subsidiaries . . . . . . . . .    (2,122)           (298)             50          (2,370)
Equity in loss of consolidated subsidiaries .      (298)             --             298              --
                                               ---------  --------------  --------------  --------------

Net loss. . . . . . . . . . . . . . . . . . .  $ (2,420)  $        (298)  $         348   $      (2,370)
                                               =========  ==============  ==============  ==============
</TABLE>


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

                          SUPPLEMENTAL CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                    THREE FISCAL MONTHS ENDED MARCH 29, 2002
                                                 (IN THOUSANDS)


                                                        Parent      Guarantor
                                                        Company    Subsidiaries   Eliminations    Consolidated
                                                       ---------  --------------  -------------  --------------
<S>                                                    <C>        <C>             <C>            <C>

Cash flows (used in) provided by operating
activities. . . . . . . . . . . . . . . . . . . . . .  $   (515)  $         597   $          --  $          82
                                                       ---------  --------------  -------------  --------------

Cash flows from investing activities:
  Capital expenditures and proceeds from sales
  of fixed assets . . . . . . . . . . . . . . . . . .      (838)           (317)             --         (1,155)
  Other . . . . . . . . . . . . . . . . . . . . . . .     1,883            (758)             --          1,125
                                                       ---------  --------------  -------------  --------------

  Net cash provided by (used in) investing
  activities. . . . . . . . . . . . . . . . . . . . .     1,045          (1,075)             --            (30)
                                                       ---------  --------------  -------------  --------------

Cash flows from financing activities:
  Net borrowings (payments) on debt . . . . . . . . .      (556)          1,562              --          1,006
  Other . . . . . . . . . . . . . . . . . . . . . . .    (1,330)            333              --           (997)
                                                       ---------  --------------  -------------  --------------

  Net cash (used in) provided by  financing
  activities. . . . . . . . . . . . . . . . . . . . .    (1,886)          1,895              --              9
                                                       ---------  --------------  -------------  --------------

Effect of exchange rate changes on cash . . . . . . .        --               6              --              6

Change in cash and cash equivalents . . . . . . . . .    (1,356)          1,423              --             67

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

Cash and cash equivalents, end of period. . . . . . .  $    126   $       2,769              --  $       2,895
                                                       =========  ==============  =============  ==============
</TABLE>


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

                        SUPPLEMENTAL CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                  THREE FISCAL MONTHS ENDED MARCH 30, 2001
                                               (IN THOUSANDS)



                                                    Parent      Guarantor
                                                    Company    Subsidiaries   Eliminations    Consolidated
                                                   ---------  --------------  -------------  --------------
<S>                                                <C>        <C>             <C>            <C>
Cash flows used in operating activities . . . . .  $ (2,796)  $      (1,187)  $          --  $      (3,983)
                                                   ---------  --------------  -------------  --------------

Cash flows from investing activities:
  Capital expenditures and proceeds from sales of
  fixed assets. . . . . . . . . . . . . . . . . .    (1,690)            194              --         (1,496)
  Other . . . . . . . . . . . . . . . . . . . . .    (1,410)            267              --         (1,143)
                                                   ---------  --------------  -------------  --------------

  Net cash provided by (used in) investing
  activities. . . . . . . . . . . . . . . . . . .    (3,100)            461              --         (2,639)
                                                   ---------  --------------  -------------  --------------

Cash flows from financing activities:
  Net borrowings (payments) on debt . . . . . . .     7,122            (154)             --          6,968
  Other . . . . . . . . . . . . . . . . . . . . .    (1,069)            744              --           (325)
                                                   ---------  --------------  -------------  --------------

  Net cash provided by  financing
  activities. . . . . . . . . . . . . . . . . . .     6,053             590              --          6,643
                                                   ---------  --------------  -------------  --------------

Effect of exchange rate changes on cash . . . . .        --             (97)             --            (97)

Change in cash and cash equivalents . . . . . . .       157            (233)             --            (76)

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

Cash and cash equivalents, end of period. . . . .  $    177   $       2,426              --  $       2,603
                                                   =========  ==============  =============  ==============
</TABLE>


                                       14
<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 quarters of 2002 and 2001, the Company's
international  sales  accounted  for  29%  and  31%  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 may adversely effect the price the Company pays for steel in the near
future.

     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 March 29, 2002 Compared to Three Months Ended March 30,2001

     Sales increased 17.7% or $7.9 million to $52.9 million in the first quarter
of  2002  compared to $45.0 million in the first quarter of 2001.  This increase
was  driven  by  increased demand for essentially all of the Company's products.

     Gross  profit  increased  to  $11.7 million in the first quarter of 2002 or
22.1%  of sales from $11.3 million or 25.0% of sales in the same period of 2001.
This  increase was a result of increased sales.  The decrease in gross profit as


                                       15
<PAGE>
a  percent of sales was primarily the result of the absence of a few high-margin
international  projects  that  took  place  in  the  first  quarter  of  2001.

     Operating  expenses  decreased 11.0% or $1.2 million to $9.1 million in the
first  quarter  of  2002  from  $10.3  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 155.1% to $2.6 million in the first quarter of
2002  from  $1.0  million  in  the  first  quarter  of  2001.  This increase was
attributable  to  the  increase  in  gross  profit  and  a decrease in operating
expenses.

     Interest  expense  decreased  $0.5  million in the first quarter of 2002 as
compared  to  the  first  quarter  of  2001  due  to  lower  borrowing  costs.

     Net  loss  decreased  $1.5  million to a loss of $0.9 million for the first
quarter  of  2002  from  a  loss  of  $2.4  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 March 29, 2002, the Company had $62.6 million of working capital, an
increase  of  $1.1  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 $13.8 million, partially offset by increases in accounts
payable,  accrued  expenses  and  customer  deposits  of  $12.6  million.

     Operating  activities  provided  $0.1 million and used $4.0 million in cash
flow  in  the  first  quarters of 2002 and 2001, respectively. This $4.1 million
increase  in  cash  flow  was  primarily  the  result of an increase in customer
deposits  and  accounts payable of $9.8 million, partially offset by an increase
in accounts receivable of $5.7 million compared to the first quarter of 2001.

     Investing activities used $0.0 million and $2.6 million in cash flow in the
first  quarters of 2002 and 2001, respectively.  The cash was used primarily for
machinery  and  equipment  purchases.  The $2.6 million decrease in cash used in
investing  activities  was partially a result of proceeds from the sale of fixed
assets.

     Financing activities provided $0.0 million and $6.6 million in cash flow in
the  first  quarters  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.


                                       16
<PAGE>
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 March 29, 2002,
principal exposed to interest rate risk was limited to $39.4 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 $0.4 million impact
on  the  Company's  results  of  operations.

     At  March  29,  2002,  approximately  20%  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.


                                       17
<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:

          The  GSI  Group,  Inc.  did  not  file any Current Reports on Form 8-K
during  its  fiscal  quarter  ended  March  29,  2002.


                                       18
<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:  MAY 3, 2002


                                       19
<PAGE>
                                INDEX TO EXHIBITS

EXHIBIT
  NO.                             DOCUMENT DESCRIPTION
-------                           --------------------

     None


                                       20
<PAGE>