<PAGE>


                       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 August 31, 2000 or

/ / Transition report pursuant to section 13 of 15(d) of the Securities Exchange
Act of 1934 for the transition period from ________ to ________

Commission file number:   0-25104


                   CONTINENTAL INFORMATION SYSTEMS CORPORATION
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

            New York                                     16-0956508
            --------                                     ----------
(State or other jurisdiction                (I.R.S. Employer Identification No.)
  of incorporation)

45 Broadway Atrium, Suite 1105, New York, New York         10006
--------------------------------------------------         -----
    (Address of principal executive offices)             (Zip Code)

                                 (212) 771-1000
                                 --------------
              (Registrant's telephone number, including area code)

            Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes /X/  No / /

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

            Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: As of September 30,
2000, the registrant has 6,576,244 shares of common stock, par value $.01 per
share, outstanding.


<PAGE>

                   CONTINENTAL INFORMATION SYSTEMS CORPORATION
                              AND ITS SUBSIDIARIES


                                TABLE OF CONTENTS



                                                                    Page
                                                                   Number
                                                                   ------

PART I.       FINANCIAL INFORMATION:                                    3

Item 1.       FINANCIAL STATEMENTS                                      3

              Consolidated Balance Sheets -
                  August 31, 2000 and May 31, 2000                      3

              Consolidated Statements of Operations -
                  for the three months ended August 31, 2000 and 1999   4

              Consolidated Statements of Cash Flows -
                  for the three months ended August 31, 2000 and 1999   5

              Notes to Consolidated Financial Statements              6-8

Item 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF
              FINANCIAL CONDITION AND RESULTS OF OPERATIONS          9-10


PART II.      OTHER INFORMATION:                                       11

Item 1.       LEGAL PROCEEDINGS                                        11

Item 6.       EXHIBITS AND REPORTS ON FORM 8-K                         12


SIGNATURES                                                             13





<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES
In Thousands (Except Number of Shares)
--------------------------------------------------------------------------------

                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                August 31,     May 31,
                                                                  2000          2000
                                                               (Unaudited)
                                                               -----------    --------
<S>                                                             <C>           <C>
ASSETS:
Cash and cash equivalents                                       $  3,919      $  3,382
Accounts receivable, net                                             361         1,095
Notes receivable                                                   2,425         2,567
Investment in mortgage participation notes                           592         1,108
Restricted cash                                                      900           900
Net investment in direct financing leases                            536         1,092
Rental equipment, net                                                487            96
Property, plant and equipment, net                                   235           260
Other assets                                                         436           229
Net assets of discontinued operations                              3,524         3,524
                                                                --------      --------

        Total assets                                            $ 13,415      $ 14,253
                                                                ========      ========

LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:

Accounts payable and other liabilities                          $    553      $    509
Discounted lease rental borrowings                                   147           163
                                                                --------      --------
        Total liabilities                                            700           672
                                                                --------      --------

SHAREHOLDERS' EQUITY:
Common stock, $.01 par value; authorized 20,000,000 shares,
       issued 7,101,668 shares                                        71            71
Additional paid-in capital                                        35,129        35,129
Accumulated deficit                                              (21,619)      (20,753)
                                                                --------      --------
                                                                  13,581        14,447
Treasury stock, at cost; 525,424 shares in 2000                     (866)         (866)
                                                                --------      --------
          Total shareholders' equity                              12,715        13,581
                                                                --------      --------
          Total liabilities and shareholders' equity            $ 13,415      $ 14,253
                                                                ========      ========
</TABLE>

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

                                       -3-


<PAGE>

CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES
In Thousands (Except per Share Data)
--------------------------------------------------------------------------------

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                         For the Three Months Ended
                                                                 August 31,
                                                            --------------------
                                                             2000        1999
                                                            -------      -------
<S>                                                         <C>          <C>
REVENUES:
Equipment sales                                             $    58      $ 1,835
Equipment rentals                                                41          928
Income from direct financing leases                              21          113
Interest income                                                 162          134
                                                            -------      -------
                                                                282        3,010
                                                            -------      -------
COSTS AND EXPENSES:
Cost of sales                                                    50        1,685
Depreciation of rental equipment                                  9          832
Interest expense                                                  4            4
Other operating expenses                                         53           62
Selling, general and administrative expense                   1,032          795
                                                            -------      -------
                                                              1,148        3,378
                                                            -------      -------
Loss from continuing operations                                (866)        (368)

Loss from discontinued operations, net of tax benefit            --         (245)
                                                            -------      -------

Net loss                                                    $  (866)     $  (613)
                                                            =======      =======

Basic and diluted net loss per share (Note 2):
    Loss from continuing operations                         $ (0.13)     $ (0.05)
    Loss from discontinued operations                            --        (0.04)
                                                            -------      -------
        Net loss per share                                  $ (0.13)     $ (0.09)
                                                            =======      =======

Weighted average number of shares of common
    stock outstanding                                         6,576        6,885
                                                            =======      =======
</TABLE>

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

                                       -4-


<PAGE>

CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES
(In Thousands)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

------------------------------------------------------------------------------------------
                                                             THREE MONTHS ENDED AUGUST 31,
------------------------------------------------------------------------------------------

                                                                    2000        1999
                                                                 -------      -------
<S>                                                              <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                         $  (866)     $  (613)
Less: Loss from discontinued operations                               --         (245)
                                                                 -------      -------
     Loss from continuing operations                                (866)        (368)
                                                                 -------      -------

Adjustments to reconcile net loss from continuing operations
to net cash provided by (used in) operating activities:
     Gain from sale of equipment subject to lease                     (8)        (150)
     Depreciation and amortization expense                            30          954
     Effect on cash flows of changes in:
          Accounts receivable, net                                   734          (37)
          Notes receivable                                           142          220
          Other assets                                              (207)         (42)
          Accounts payable and other liabilities                      44           44
          Deferred lease revenue                                      --         (732)
          Other                                                       25           17
                                                                 -------      -------
                                                                     760          274
                                                                 -------      -------
          Net cash used in continuing operations                    (106)         (94)
          Net cash used in discontinued operations                    --       (1,174)
                                                                 -------      -------
          Net cash used in operating activities                     (106)      (1,268)
                                                                 -------      -------

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equipment                                       58        1,834
Purchase of rental equipment                                          --         (176)
Purchase of property and equipment                                    --           (5)
Collections of rentals on direct financing leases net of
amortization of unearned income                                       85          198
Proceeds of (investment in) mortgage participation notes             516         (210)
Restricted cash                                                       --           --
                                                                 -------      -------
          Net cash provided by investing activities                  659        1,641
                                                                 -------      -------

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on lease, bank and institution financings
  and cash used in financing activities                              (16)        (164)
                                                                 -------      -------
          Net increase in cash and cash equivalents                  537          209
Cash and cash equivalents at beginning of period                   3,382        5,616
                                                                 -------      -------
Cash and cash equivalents at end of period                       $ 3,919      $ 5,825
                                                                 =======      =======

Cash paid for interest                                           $     4      $     4
Non-cash transfers of equipment which came off lease                 449           54

------------------------------------------------------------------------------------------
</TABLE>
              The accompanying notes are an integral part of these
                             financial statements.

                                       -5-

<PAGE>

CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

                   Notes to Consolidated Financial Statements

1.  BASIS OF PRESENTATION

    The accompanying unaudited consolidated financial statements of Continental
    Information Systems Corporation have been prepared in accordance with
    generally accepted accounting principles for interim financial information
    and in accordance with the instructions to Form 10-Q and Article 10 of
    Regulation S-X. Accordingly, they do not include all of the information and
    footnotes required by generally accepted accounting principles for complete
    financial statements. In the opinion of management, all adjustments
    (consisting only of normal recurring accruals) considered necessary for a
    fair presentation have been included. Operating results for the three months
    ended August 31, 2000 are not necessarily indicative of the results that may
    be expected for the year ended May 31, 2001. These statements should be read
    in conjunction with the consolidated financial statements and footnotes
    thereto included in the Company's annual report on Form 10-K for the year
    ended May 31, 2000.

2.  NET INCOME PER SHARE

    EARNINGS PER SHARE, are calculated in accordance with Financial Accounting
    Standard No. 128 (SFAS 128), EARNINGS PER SHARE, which specifies standards
    for computing and disclosing net income (loss) per share. Basic and diluted
    net income (loss) per share for the three months ended August 31, 2000 and
    1999, was computed based on the weighted average number of shares of common
    stock outstanding during the periods. As of August 31, 2000, the Company had
    issued and outstanding options to purchase 213,616 shares of common stock
    (See Note 5). The effect of these options is anti-dilutive in the
    computation of diluted net income (loss) per share.

3.  ESTIMATES

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make estimates and
    assumptions that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of the financial
    statements and the reported amounts of revenue and expenses during the
    reporting periods. Actual results could differ from those estimates.

4.  RECLASSIFICATIONS

    Certain prior period balances in the financial statements have been
    reclassified to conform to the current period financial statement
    presentation.

5.  STOCK OPTION PLAN

    In 1995, the Board of Directors adopted and the stockholders approved the
    Continental Information Systems Corporation 1995 Stock Compensation Plan
    (the "1995 Plan"). The 1995 Plan provides for the issuance of options
    covering up to 1,000,000 shares of common stock and stock grants of up to
    500,000 shares of common stock to non-employee directors of the Company and,
    in the discretion of the Board of Directors, employees of and independent
    contractors and consultants to the Company.


                                       -6-

<PAGE>

CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

    A summary of the status of the 1995 Plan as of August 31, 2000 and changes
    during the years ended on those dates is presented below:

                                                            Weighted Average
                                               Number of     Exercise Price
                                                Options       Per Option
                                               ---------      ----------

Outstanding at
      May 31, 1997 (188,337 exercisable)         284,000      $   2.02
Granted                                          190,674      $   2.38
Exercised                                        (70,001)     $   1.97
Forfeited/expired                                (38,331)     $   1.97
                                                --------
Outstanding at
      May 31, 1998 (234,002 exercisable)         366,342      $   2.22
Granted                                           72,000      $   1.92
Exercised                                             --            --
Forfeited/expired                                (16,668)     $   1.97
                                                --------
Outstanding at
      May 31, 1999 (298,008 exercisable)         421,674      $   2.18
Granted                                           13,280      $   1.40
Exercised                                             --            --
Forfeited/expired                               (119,671)     $   2.10
                                                --------
Outstanding at
      May 31, 2000 (302,003 exercisable)         315,283      $   2.18
                                                ========
Granted                                               --            --
Exercised                                             --            --
Forfeited/expired                               (101,667)     $   2.17
                                                --------
Outstanding at
      August 31, 2000 (200,336 exercisable)      213,616      $   2.18
                                                --------

6.    DISCONTINUED OPERATIONS

    On July 14, 2000, the Company announced that it was offering for sale its
    commercial aircraft engine portfolio by competitive bid, that upon
    completion of the sale it will be exiting the aviation business, and that it
    would account for and report the Air Group Business as a discontinued
    operation.

    CIS Air has a revolving loan agreement (the "CIS Air Loan facility") with an
    institution to provide lease and inventory financing for aircraft engines,
    in the amount of $10,000,000. The facility has a three-year term and permits
    borrowings equal to a percentage of the appraised value of the aircraft
    engines financed. Substantially all of the assets of CIS Air are pledged as
    collateral for the Loan. At August 31, 2000, $1,449,000 of this facility was
    being utilized. The CIS Air Loan facility bears interest at prime plus 1/4%
    (9.75% at August 31, 2000) and expires in December 2000. Interest related to
    this facility was $95,000 and $152,000 for the quarter ended August 31, 2000
    and 1999, respectively. Proceeds of sale are used to permanently pay down
    the loan. The Company's lender had been notified, and the CIS Air Loan
    facility will not be renewed. Upon pay down of the CIS Air Loan facility,
    and in connection with CIS Air's exiting from the aviation business,
    proceeds from the disposition of Air assets will be available for general
    corporate purposes. As of September 30, 2000, $1,405,000 of the facility was
    unpaid.

                                      -7-
<PAGE>

CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

    The Consolidated Balance Sheet and Statements of Operations for all periods
    presented have been reclassified to report the results of discontinued
    operations separately from those of continuing operations.

                                               For the Three Months Ended
                                                        August 31,
                                                ------------------------
                                                   2000            1999
                                                --------         -------

    Revenues                                    $     --         $ 1,828
    Costs and expenses                                --           2,073
                                                --------         -------
    Loss from discontinued operations                 --            (245)
    Income tax benefit                                --              --
                                                --------         -------
Net loss from discontinued operations           $     --         $  (245)
                                                ========         =======

    A summary of the assets and liabilities of discontinued operations follows
    (in thousands):

<TABLE>
<CAPTION>

                                                      August 31, 2000   May 31, 2000
                                                      ---------------   ------------
<S>                                                         <C>          <C>
ASSETS:
Cash and cash equivalents                                   $   474      $   336
Accounts receivable, net                                        104          991
Inventory                                                     4,495        5,254
Net investment in direct financing leases                       815          907
Rental equipment                                                728        5,663
Other assets                                                      4            4
                                                            -------      -------
            Total assets                                      6,620       13,155
                                                            -------      -------

LIABILITIES:
Accounts payable and costs of discontinuance                  1,395        2,229
Other Liabilities                                               252          483
Note payable to institution                                   1,449        6,919
                                                            -------      -------
            Total liabilities                                 3,096        9,631
                                                            -------      -------
            Net assets of discontinued operations           $ 3,524      $ 3,524
                                                            =======      =======
</TABLE>



                                      -8-
<PAGE>


CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

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

                                  INTRODUCTION

The following discussion and analysis of the financial condition and results of
operations of the Company should be read in conjunction with the consolidated
financial statements and the notes thereto for the fiscal year ended May 31,
2000, appearing in the Company's annual report on Form 10-K.

All statements contained herein that are not historical facts, including but not
limited to statements regarding anticipated future capital requirements and the
Company's future business plans, are based on current expectations. These
statements are forward looking in nature and involve a number of risks and
uncertainties. Actual results may differ materially. Among the factors that
could cause actual results to differ materially are those set forth below and
the other risk factors described from time to time in the Company's reports
filed with the SEC. The Company wishes to caution readers not to place undue
reliance on any such forward looking statements, which statements are made
pursuant to the Private Securities Litigation Reform Act of 1995 and, as such,
speak only as of the date made.

                              RESULTS OF OPERATIONS

COMPARISON OF THE THREE MONTHS ENDED AUGUST 31, 2000 AND 1999

CONTINUING OPERATIONS

REVENUES
Total revenues decreased 96.8% to $58,000 for the three months ended August 31,
2000 from $1,835,000 for the comparable fiscal quarter in 1999. Within this
revenue category, equipment sales decreased 95.6% to $41,000 for the three
months ended August 31, 2000 from $928,000 for the comparable fiscal quarter in
1999. Equipment rentals and income from direct financing leases decreased 94.0%
to $62,000 for the quarter ended August 31, 2000 from $1,041,000 for the quarter
ended August 31, 1999. The decrease in total revenues and sales are attributable
to the Company ceasing the origination of new equipment leases and the sale of a
substantial portion of the Company's lease portfolio as of August 31, 1999.

Interest, fees and other income increased 20.9% to $162,000 for the three months
ended August 31, 2000 from $134,000 for the comparable fiscal quarter in 1999.
This increase is principally due to increase in the interest on notes receivable
in the amount of $12,000 and increase in the interest on bank and short-term
investments in the amount of $16,000 compared to prior year period.

COSTS AND EXPENSES
Depreciation of rental equipment decreased 99% to $9,000 for the quarter ended
August 31, 2000 from $832,000 for the comparable fiscal quarter in 1999. This
decrease is due to a decrease in the cost of rental equipment from $3,476,000 to
$727,000 as a result of the sale of substantial portion of the portfolio in
August 1999.

Selling, general and administrative expenses increased 29.8% to $1,032,000 for
the three months ended August 31, 2000 from $795,000 for the comparable fiscal
period in 1999. This increase is attributable to the Company's start up
subsidiary T1Xpert.com, which expenses amounted to $604,000 for the quarter.
This increase was offset by decrease in general and administrative expenses in
the amount of $367,000. These decreases were principally due to cost containment
efforts and staff reduction between the periods.


                                      -9-
<PAGE>


CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

INCOME TAXES
For the quarter ended August 31, 2000, provision for deferred income tax benefit
on income from continuing operations was not recorded, because, in management's
opinion, the realizability of the deferred tax asset was uncertain in light of
the Company's actual operating results since reorganization.

                         LIQUIDITY AND CAPITAL RESOURCES

Proceeds from lease, bank and institution financings for the three months ended
August 31, 2000 and 1999 were $16,000 and $164,000, respectively. In August 1999
a substantial portion of the general equipment lease portfolio was sold
resulting in paying down majority of the debt balance.

As of August 31, 2000, the Company had $3.9 million in cash and cash
equivalents, as compared to $5.8 million at August 31, 1999 and $3.4 million at
May 31, 2000.

T1Xpert.com had expended $2,215,000 from inception in August 1999 through August
31, 2000. The Company believes it has sufficient cash on hand to meet current
operating needs until the projected development of an alpha product.

The Company anticipates that, in developing past the alpha stage, it will need
substantial additional funds. In connection therewith, the Company will be
seeking investments from strategic client/investors and/or venture capital
investors. The form of investment will depend upon terms and conditions to be
negotiated. The Company may co-invest with such investors or, failing to find
such investors, the Company may decide to fund such expenditures from its own
resources, as then available. There can be no assurance that the Company will be
able to meet its financial needs after it passes the alpha stage of development.

The Company does not anticipate entering into financing arrangements with
financial institutions, involving collateralizing and/or leveraging the
Company's assets.



                                      -10-
<PAGE>

CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

As previously reported, the Company's Airgroup subsidiary, CIS Air Corporation,
has three actions pending against Eastwind Airlines ("Eastwind"), a lessee of
aircraft and engines, and its parent UM Holding, Inc. The main action is an
involuntary bankruptcy petition brought in the Bankruptcy Court in Delaware
against Eastwind Airlines by CIS Air and two other petitioning creditors.
Subsequently, three other creditors joined the petition. The petitioning
creditors' claims amounted to in excess of $7 million. The Company also has an
action pending against AeroTurbine, Inc. in North Carolina state court.

On September 19, 2000, the Company and the other petitioning creditors reached a
settlement agreement with Eastwind Airlines and UM Holding, Inc. The material
provisions of the final agreement will result (i) in the Company and the other
petitioning creditors combined receiving consideration worth $4 million in a
package that includes $3 million in cash and a $1 million, 1-year unsecured
note; (ii) the dismissal of CIS Air's lawsuit against AeroTurbine and
AeroTurbine's dismissal of its counterclaims; and (iii) cross-releases by
Eastwind and JetStream L.P., an entity managed by CIS Air, in exchange for
engine parts to be received by CIS Air. The agreement and receipt of the above
consideration is subject to, among other things, the entry of a final
non-appealable order of the Bankruptcy Court dismissing the pending actions that
arise out of or relate to the operation of Eastwind Airlines.

On March 3, 2000, Dallas AeroSpace, Inc. ("Dallas") of Texas filed suit in the
United States District Court for the Southern District of New York against CIS
Air for breach of contract and other causes of action in connection with the
sale of an engine to Dallas in August 1997. Dallas is seeking damages for the
purchase price of the engine in the amount of $1,150,000. CIS Air has denied any
liability to Dallas on any of the causes of action, and has asserted its
defenses. The litigation is in its initial stages.

On April 24, 2000 CIS Air filed suit in the United States District Court for the
Northern District of New York against American Air Ventures, Inc. ("American
Air"), a Florida corporation. The suit seeks reimbursement in connection with
losses incurred in joint venture agreements between the parties for the purchase
and sale of engines. The suit further seeks indemnification from American Air
should CIS Air be found liable to Dallas AeroSpace, because CIS Air purchased
the engine sold to Dallas AeroSpace from American Air. The suit is in the
initial phase of litigation.

On March 7, 2000, CIS Air filed suit against Express One International, Inc., a
Delaware corporation, in the Supreme Court, State of New York, County of New
York. The suits seek damages in an amount no less than $47,500 for engine rent
and maintenance reserve payments and $70,639 for engine repairs. The suit is in
the discovery phase of litigation.



                                      -11-
<PAGE>


CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

    (a) EXHIBITS - The following documents are filed as part of this Quarterly
                   Report:

Exhibit No.
-----------

2.1*        Disclosure Statement with respect to Trustee's Joint Plan of
            Reorganization dated October 4, 1994.

2.2*        November 29, 1994 Order Confirming Trustee's Joint Plan of
            Reorganization dated October 4, 1994.

3.1**       Restated Certificate of Incorporation, as amended (Filed as Exhibit
            3.1 to the Company's Form 10-Q for the quarter ended November 30,
            1997 and incorporated herein by reference).

3.2**       Restated Bylaws as amended through October 20, 1998 (Filed as
            exhibit 3.2 to the Company's Form 10-K for the fiscal year ended May
            31, 1999 and incorporated herein by reference).

10.1**      1995 Stock Compensation Plan (Filed as Exhibit 10.1 to the Company's
            Form 10-Q for the quarter ended August 31, 1995 and incorporated
            herein by reference).

10.2**      Advisory Agreement for Real Estate Related Investments between
            Continental Information Systems Corporation and Emmes Investment
            Management Co. LLC dated June 30, 1997 (Filed as Exhibit 10.13 to
            the Company's Form 10-K for the fiscal year ended May 31, 1997 and
            incorporated herein by reference).

10.5**      Loan and Security Agreement between CIS Air Corporation and Heller
            Financial, Inc. dated December 19, 1997 (Filed as Exhibit 10.1 to
            the Company's 10-Q for the quarter ended February 28, 1998 and
            incorporated herein by reference).

27.1  Financial Data Schedule.

* Filed as an exhibit to the Company's amended Form 10 Registration Statement
(Commission File No. 0-25104), originally filed November 10, 1994 and
incorporated herein by reference.

** Incorporated by reference.

      (b)   REPORT ON FORM 8-K - The Company filed the following report on
            Form-8K on the date indicated during the quarter ended August 31,
            2000.

                  Date                           Description
                  ----                           -----------

               August 14, 2000          The Company announced that it was
                                        exiting the aviation business.




                                      -12-
<PAGE>


CONTINENTAL INFORMATION SYSTEMS CORPORATION
AND ITS SUBSIDIARIES

--------------------------------------------------------------------------------

                                   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.

                                     CONTINENTAL INFORMATION SYSTEMS CORPORATION

Date:    October 16, 2000            By:  /s/ Michael L. Rosen
                                          --------------------
                                     Name:  Michael L. Rosen
                                     Title: President, Chief Executive Officer
                                            and Director



Date:    October 16, 2000            By:  /s/ Jonah M. Meer
                                          -----------------
                                     Name:  Jonah M. Meer
                                     Title: Senior Vice President, Chief
                                            Operating Officer and Chief
                                            Financial Officer



                                      -13-