<PAGE>


                         SECURITIES AND EXCHANGE COMMISSION

                              Washington, D.C. 20549

                                    Form 10-Q

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


For Quarter Ended JULY 31, 2000              Commission file number 0-011306


                                VALUE LINE, INC.
           ---------------------------------------------------------
            (Exact name of registrant as specified in its charter)


                New York                                 13-3139843
    -------------------------------                 -------------------
    (State or other jurisdiction of                  I.R.S Employer
     incorporation or organization                   Identification No.



220 East 42nd Street, New York, New York                 10017-5891
----------------------------------------                 ----------
(address of principal executive offices)                 (zip code)


Registrants' telephone number including area code (212) 907-1500

    Indicate by check mark whether the registrant (1) has filed all reports
    required to be filed by Section 13 or 15 (d) of the Securities Exchange
    Act of 1934 during the preceding 12 months (or for such shorter period
    that the registrant was required to file such reports), and (2) has been
    subject to such filing requirements for the past 90 days.

                                              Yes  X    No
                                                  ---      ---

    Indicate the number of shares outstanding of each of the issuer's classes
    of common stock, as of the latest practicable date.


            Class                            Outstanding at July 31, 2000
            -----                            ----------------------------


  Common Stock, $.10 par value                     9,978,625 Shares
                                                   ----------------

<PAGE>

PART I - FINANCIAL INFORMATION
  ITEM 1. FINANCIAL STATEMENTS

                                VALUE LINE, INC.
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                          July 31,     April 30,
                                                            2000         2000
                                                         ---------    ---------
<S>                                                      <C>          <C>
Assets
Current Assets:
  Cash and cash equivalents (including short term
   investments of $74,172 and $47,456, respectively)     $  74,192    $  47,933
  Trading securities                                        19,171       19,044
  Accounts receivable, net of allowance for doubtful
   accounts of $136 and $133, respectively                   2,183        2,495
  Receivable from affiliates                                 3,773        3,061
  Prepaid expenses and other current assets                  1,025        1,115
  Deferred income taxes                                        139          139
                                                         ---------    ---------
    Total current assets                                   100,483       73,787

  Long term securities available for sale                  184,930      210,468
  Property and equipment, net                               10,080       10,402
  Capitalized software and other intangible assets, net      3,563        3,541
                                                         ---------    ---------
    Total assets                                         $ 299,056    $ 298,198
                                                         =========    =========
Liabilities and Shareholders' Equity
Current Liabilities:
  Accounts payable and accrued liabilities               $   6,245    $   7,162
  Accrued salaries                                           1,255        2,063
  Dividends payable                                          2,495        2,495
  Accrued taxes payable                                      4,100        1,041
                                                         ---------    ---------
    Total current liabilities                               14,095       12,761

  Unearned revenue                                          39,152       41,116
  Deferred income taxes                                     32,276       33,036
  Deferred charges                                             350          419

Shareholders' Equity:
  Common stock, $.10 par value; authorized 30,000,000
   shares; issued 10,000,000 shares                          1,000        1,000
  Additional paid-in capital                                   959          959
  Retained earnings                                        153,034      149,304
  Treasury stock, at cost (21,375 shares on 7/31/00,
   and 4/30/00)                                               (411)        (411)
  Accumulated other comprehensive income, net of taxes      58,601       60,014
                                                         ---------    ---------
    Total shareholders' equity                             213,183      210,866
                                                         ---------    ---------
    Total liabilities and shareholders' equity           $ 299,056    $ 298,198
                                                         =========    =========
</TABLE>

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


                                       2
<PAGE>

PART I - FINANCIAL INFORMATION
  ITEM 1. FINANCIAL STATEMENTS

                                VALUE LINE, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                     (IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                           For the three months
                                                                  ended
                                                          July 31,      July 31,
                                                            2000          1999
                                                           -------       -------
<S>                                                        <C>           <C>
Revenues:
  Investment periodicals and
   related publications                                    $14,059       $14,970
  Investment management fees & svcs                         10,496         8,861
                                                           -------       -------
    Total revenues                                          24,555        23,831
                                                           -------       -------
Expenses:
  Advertising and promotion                                  5,152         3,540
  Salaries and employee benefits                             6,019         6,066
  Production and distribution                                1,808         1,746
  Office and administration                                  2,210         2,187
                                                           -------       -------
    Total expenses                                          15,189        13,539
                                                           -------       -------

Income from operations                                       9,366        10,292
Income from securities trans., net                           1,191         1,185
                                                           -------       -------
Income before income taxes                                  10,557        11,477
Provision for income taxes                                   4,332         4,563
                                                           -------       -------
    Net income                                             $ 6,225       $ 6,914
                                                           =======       =======
Earnings per share, basic & fully diluted                  $  0.62       $  0.69
                                                           =======       =======
</TABLE>

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


                                       3
<PAGE>

PART I - FINANCIAL INFORMATION
  ITEM 1. FINANCIAL STATEMENTS

                                VALUE LINE, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                       For the three months
                                                                              ended
                                                                        July 31,   July 31,
                                                                         2000       1999
                                                                        -------    -------
<S>                                                                      <C>        <C>
Cash flows from operating activities:
  Net income                                                              6,225      6,914

Adjustments to reconcile net income to net cash provided by operating
 activities:
  Depreciation and amortization                                             802        564
  (Gains) on sales of trading securities and securities held for sale      (716)      (395)
  Unrealized (gains)/losses on trading securities                           647        (43)

  Changes in assets and liabilities:
   (Decrease) in unearned revenue                                        (1,964)    (1,872)
   (Decrease) in deferred charges                                           (69)       (69)
   Increase/(decrease) in accounts payable and accrued expenses            (917)       555
   (Decrease) in accrued salaries                                          (808)      (780)
   Increase in accrued taxes payable                                      3,059      3,835
   (Increase)/decrease in prepaid expenses and other current assets          90        (50)
   (Increase)/decrease in accounts receivable                               312       (130)
   (Increase) in receivable from affiliates                                (712)      (404)
                                                                        -------    -------
    Total adjustments                                                      (276)     1,211
                                                                        -------    -------
Net cash provided by operations                                           5,949      8,125

Cash flows from investing activities:
  Proceeds from sales of long term securities                            24,572       --
  Purchases of long term securities                                      (1,267)    (2,172)
  Proceeds from sales of trading securities                              11,113      6,283
  Purchases of trading securities                                       (11,111)    (6,264)
  Acquisitions of property, and equipment, net                              (91)      (185)
  Expenditures for capitalized software                                    (411)      (306)
                                                                        -------    -------
Net cash provided by/(used in) investing activities                      22,805     (2,644)

Cash flows from financing activities:
  Dividends paid                                                         (2,495)    (2,495)
                                                                        -------    -------
Net cash (used in) financing activities                                  (2,495)    (2,495)
                                                                        -------    -------
Net increase in cash and cash equivalents                                26,259      2,986
Cash and cash equivalents at beginning of year                           47,933     41,826
                                                                        -------    -------
Cash and cash equivalents at end of quarter                              74,192     44,812
                                                                        =======    =======
</TABLE>

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


                                       4
<PAGE>

PART I - FINANCIAL INFORMATION
  ITEM 1. FINANCIAL STATEMENTS

                                VALUE LINE, INC.
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE THREE MONTHS ENDED JULY 31, 2000
                      (in thousands, except share amounts)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                 Common stock
                                                                                                    Accumulated
                                 Number            Additional                                          Other
                                   of                paid-in    Treasury  Comprehensive  Retained  Comprehensive
                                 shares    Amount    capital     Stock       income      earnings     income      Total
                                ---------  -------   ------      -----    -------------  --------    --------    --------
<S>                             <C>         <C>        <C>       <C>      <C>            <C>          <C>        <C>
Balance at May 1, 2000          9,978,625   $1,000     $959      ($411)                  $149,304     $60,014    $210,866

Comprehensive income
 Net income                                                                   $6,225        6,225                   6,225
 Other comprehensive income,
  net of tax:
   Change in unrealized
     gains on securities                                                      (1,413)                  (1,413)     (1,413)
                                                                             -------
Comprehensive income                                                          $4,812
                                                                             =======
Dividends declared                                                                         (2,495)                 (2,495)
                                ---------  -------   ------      -----                   --------    --------    --------
Balance at July 31, 2000        9,978,625   $1,000     $959      ($411)                  $153,034     $58,601    $213,183
                                =========  =======   ======      =====                   ========    ========    ========
</TABLE>

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


                                       5
<PAGE>

PART I - FINANCIAL INFORMATION
  ITEM 1. FINANCIAL STATEMENTS

                                VALUE LINE, INC.
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE THREE MONTHS ENDED JULY 31, 1999
                      (in thousands, except share amounts)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                 Common stock
                                                                                                    Accumulated
                                 Number            Additional                                          Other
                                   of                paid-in    Treasury  Comprehensive  Retained  Comprehensive
                                 shares    Amount    capital     Stock       income      earnings     income      Total
                                ---------  -------   ------      -----    -------------  --------    --------    --------
<S>                             <C>         <C>        <C>       <C>      <C>            <C>          <C>        <C>
Balance at May 1, 1999          9,978,125   $1,000     $959      ($411)                  $125,585     $39,770    $166,903

Comprehensive income
 Net income                                                                   $6,914        6,914                   6,914
 Other comprehensive income,
  net of tax:
   Change in unrealized
     gains on securities                                                       4,033                    4,033       4,033
                                                                             -------
Comprehensive income                                                         $10,947
                                                                             =======

Dividends declared                                                                         (2,495)                 (2,495)
                                ---------  -------   ------      -----                   --------    --------    --------
Balance at July 31, 1999        9,978,125   $1,000     $959      ($411)                  $130,004     $43,803    $175,355
                                =========  =======   ======      =====                   ========    ========    ========
</TABLE>

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


                                        6

<PAGE>

                             HOROWITZ & ULLMANN, P.C.
                          Certified Public Accountants



A member of the                                               275 Madison Avenue
AICPA SEC Practice Section                                    New York, NY 10016
New York State Society of CPAs                         Telephone (212) 532-3736
                                                        Facsimile (212) 545-8997
                                                       E-mail cpas@h-ullmann.com



                       REPORT OF INDEPENDENT ACCOUNTANTS



To the Board of Directors and Shareholders of
Value Line, Inc.
New York, NY

We have reviewed the accompanying consolidated balance sheet of Value Line, Inc.
and its subsidiaries as of July 31, 2000 and the related consolidated statements
of income, changes in stockholders' equity, and cash flows for the three month
periods ended July 31, 2000 and 1999.  All information included in these
financial statements is the representation of the Company's management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modification that
should be made to the accompanying financial statements for them to be in
conformity with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of April 30, 2000 and the related
consolidated statements of income, changes in stockholders equity, and cash
flows for the year then ended (not presented herein), and in our report dated
July 13, 2000, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated balance sheet as of April 30, 2000 is fairly stated in
all material respects.



/s/ Horowitz & Ullmann, P.C.

September 14, 2000

                                        7
<PAGE>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIGNIFICANT ACCOUNTING POLICIES - NOTE 1:

In the opinion of management, the accompanying unaudited consolidated condensed
financial statements contain all adjustments (consisting of normal recurring
accruals except as noted below) considered necessary for a fair presentation.
This report should be read in conjunction with the financial statements and
footnotes contained in the Company's annual report on Form 10-K, dated July 13,
2000 for the fiscal year ended April 30, 2000. Results of operations covered by
this report may not be indicative of the results of operations for the entire
year.

Cash and Cash Equivalents:

The Company considers all cash held at banks and invested in the Value Line
money market funds with an original maturity of less than three months to be
cash and cash equivalents. As of July 31, 2000 and April 30, 2000, cash
equivalents included $72,730,000 and $46,726,000, respectively, invested in the
Value Line money market funds.

Valuation of Securities:

The Company's long-term securities portfolio, which consists of shares of the
Value Line Mutual Funds are valued at market value in accordance with Statement
of Financial Accounting Standards No. 115, "Accounting for Certain Investments
in Debt and Equity Securities". Unrealized gains and losses on these securities
are reported, net of applicable taxes, as a separate component of Shareholders'
Equity. Realized gains and losses on sales of the securities are recorded in
earnings on trade date and are determined on the identified cost method.

Trading securities, which consist of securities held by Value Line Securities,
Inc., the Company's broker-dealer subsidiary, are valued at market with realized
and unrealized gains and losses included in earnings.

Advertising expenses:

The Company expenses advertising costs as incurred.

Earnings per Share, basic & fully diluted:

Earnings per share are based on the weighted average number of shares of common
stock outstanding during the period.

Use of Estimates:

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.


                                       8
<PAGE>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARKETABLE SECURITIES - NOTE 2:

Trading Securities:

Securities held by the Company and by Value Line Securities, Inc. had an
aggregate cost of $16,597,000 and $15,821,000 and a market value of
$19,171,000 and $19,044,000 at July 31, 2000 and April 30, 2000, respectively.

Long-Term Securities Available for Sale:

The aggregate cost of the long-term securities was $94,771,000 and $118,135,000
and the market value was $184,930,000 and $210,468,000 at July 31, 2000 and
April 30, 2000, respectively. At July 31, 2000, the decrease in gross unrealized
appreciation on these securities of $2,173,000, net of deferred taxes of
$760,000, was included in shareholders' equity.

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - NOTE 3:

Cash payments for income taxes were $1,273,000 and $1,187,000 during the three
months ended July 31, 2000 and 1999, respectively.

EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN - NOTE 4:

Substantially all employees of the Company and its subsidiaries are members of
the Value Line, Inc. Profit Sharing and Savings Plan (the "Plan"). In general,
this is a qualified, contributory plan which provides for a discretionary annual
Company contribution which is determined by a formula based upon the salaries of
eligible employees and the amount of consolidated net operating income as
defined in the Plan. Plan expense, included in salaries and employee benefits in
the Consolidated Statements of Income and Retained Earnings, for the three
months ended July 31, 2000 and 1999, was $345,000.


                                       9
<PAGE>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

COMPREHENSIVE INCOME - NOTE 5:

Statement no. 130 requires the reporting of comprehensive income in addition to
net income from operations. Comprehensive income is a more inclusive financial
reporting methodology that includes disclosure of certain financial information
that historically has not been recognized in the calculation of net income.

At July 31, 2000 and 1999, the Company held long term securities classified as
available-for-sale. The decrease during the first three months ended July 31,
2000 in gross unrealized gains on these securities and the related deferred
taxes was $2,173,000 and $760,000, respectively. The increase during the first
quarter of fiscal 2000 in gross unrealized gains on these securities and the
related deferred taxes was $6,205,000 and $2,172,000, respectively.

RELATED PARTY TRANSACTIONS - NOTE 6:

The Company acts as investment adviser and manager for fifteen open-ended
investment companies, the Value Line Family of Funds. The Company earns
investment management fees based upon the average daily net asset values of the
respective funds. Effective July 1, 2000, the Company received service and
distribution fees under rule 12b-1 of the Investment Company Act of 1940 from
substantially all of the Value Line mutual funds. The Company also earns
brokerage commission income, net of clearing fees, on securities transactions
executed by Value Line Securities, Inc. on behalf of the funds that are cleared
on a fully disclosed basis through non-affiliated brokers. For the three months
ended July 31, 2000 and 1999 investment management fees, 12b-1 service and
distribution fees and brokerage commission income, net of clearing fees,
amounted to $9,554,000 and $7,975,000, respectively. These amounts include
service and distribution fees of $860,000 and $156,000, respectively. The
related receivables from the funds for management advisory fees and 12b-1
service fees included in Receivable from affiliates were $3,688,000 and
$2,972,000 at July 31, 2000 and April 30, 2000, respectively.

At July 31, 2000 and April 30, 2000, Receivable from affiliates included a
receivable from the Parent of $43,000 and $44,000, respectively. For the three
months ended July 31, 2000 and July 31, 1999, the Company made federal income
tax payments to the Parent amounting to $300,000 and $200,000, respectively.


                                       10
<PAGE>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FEDERAL, STATE AND LOCAL INCOME TAXES - NOTE 7:

The Company computes its tax in accordance with the provisions of Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes".

The provision for income taxes includes the following:

<TABLE>
<CAPTION>
                                                  Three months ended July 31,

                                                        2000         1999
                                                   -------------------------
                                                        (in thousands)
<S>                                                     <C>          <C>
Current:
  Federal                                               $3,662       $3,636
  State and local                                          883          708
                                                   -------------------------
                                                         4,545        4,344
Deferred:
  Federal                                                 (215)         194
  State and local                                            2           25
                                                   -------------------------
                                                          (213)         219
                                                   -------------------------
                                                        $4,332       $4,563
                                                   =========================
</TABLE>

Deferred taxes are provided for temporary differences between the financial
reporting basis and the tax basis of the Company's assets and liabilities.
The tax effect of temporary differences giving rise to the Company's deferred
tax asset/(liability) are primarily a result of unrealized gains on the
Company's trading and long term securities portfolios.

BUSINESS SEGMENTS - NOTE 8:

The Company operates two reportable business segments: Publishing and Investment
Management Services. The publishing segment produces investment related
periodicals in both print and electronic form. The investment management segment
provides advisory services to mutual funds, institutional and individual clients
as well as brokerage services for the Value Line family of mutual funds. The
segments are differentiated by the products and services they offer.

The accounting policies of the segments are the same as those described in the
summary of significant accounting policies. The Company allocates all revenues
and expenses, except for depreciation related to corporate assets, between the
two reportable segments.


                                       11
<PAGE>

                                VALUE LINE, INC.
                NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                     Disclosure of Reportable Segment Profit and Segment Assets

<TABLE>
<CAPTION>
                                                   July 31, 2000
                                        Publishing   Investment      Total
                                                     Management
                                                      Services
<S>                                        <C>         <C>          <C>
Revenues from external customers           $14,059     $10,496      $24,555
Intersegment revenues                           15          --           15
Income from securities transactions             65       1,126        1,191
Depreciation and amortization                  770          17          787
Segment profit                               4,112       5,269        9,381
Segment assets                              20,891     277,507      298,398
Expenditures for
 segment assets                                311          90          401

<CAPTION>
                                                   July 31, 1999
                                        Publishing   Investment      Total
                                                     Management
                                                      Services
<S>                                        <C>         <C>          <C>
Revenues from external customers           $14,970      $8,861      $23,831
Intersegment revenues                           16          --           16
Income from securities transactions             68       1,117        1,185
Depreciation and amortization                  522          12          534
Segment profit                               5,823       4,499       10,322
Segment assets                              19,676     235,036      254,712
Expenditures for
 segment assets                                306          --          306
</TABLE>


                                       12
<PAGE>

                                VALUE LINE, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                 Reconciliation of Reportable Segment Revenues,
                           Operating Profit and Assets

                                                         2000         1999
<S>                                                   <C>          <C>
Revenues
Total revenues for reportable segments                 $24,570      $23,847
Elimination of intersegment revenues                       (15)         (16)
                                                   -------------------------
  Total consolidated revenues                          $24,555      $23,831
                                                   =========================

Segment profit
Total profit for reportable segments                   $10,572      $11,507
Less: Depreciation related to corporate assets             (15)         (30)
                                                   -------------------------
  Income before income taxes                           $10,557      $11,477
                                                   =========================

Assets
Total assets for reportable segments                  $298,398     $254,712
Corporate assets                                           658        1,388
                                                   -------------------------
  Consolidated total assets                           $299,056     $256,100
                                                   =========================
</TABLE>


                                       13
<PAGE>

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

LIQUIDITY AND CAPITAL RESOURCES:

Value Line, Inc. (the "Company") had liquid resources, which are used in its
business, of $271,318,000 at July 31, 2000. In addition to $86,388,000 of
working capital, the Company had long-term securities available for sale with a
market value of $184,930,000, that, although classified as non-current assets,
are also readily marketable should the need arise.

The Company's cash flow from operations of $5,949,000 for the three months
ended July 31, 2000 was lower than the cash flow of $8,125,000 for the same
period last fiscal year. The decline was primarily due to the timing of the
company's funding of the employee's benefit plan during fiscal 2001. Net cash
inflows from investing activities during fiscal 2001 were $25,449,000 higher
than fiscal 2000's due largely to the company's decision to realign its
long-term securities holdings.

Management believes that the Company's cash and other liquid asset resources
used in its business together with the future cash flows from operations will be
sufficient to finance current and forecasted operations. Management anticipates
no borrowing for fiscal year 2001.


RESULTS OF OPERATIONS:


Net income for the three months ended July 31, 2000 of $6,225,000, or $.62
per share compares to prior year's net income of $6,914,000, or $.69 per
share. Revenues of $24,555,000 for the first three months of fiscal year 2001
were 3% higher than last year's revenues. Operating income of $9,366,000 for
the three months ended July 31, 2000 was lower than operating income of
$10,292,000 for the same period of last fiscal year. The decline from last
year's operating income is primarily a result of additional advertising
expenses for the Value Line mutual funds and publications.

Total assets at July 31, 2000 of $299,056,000 increased 17% from the balance at
July 31, 1999.


Subscription revenues of $14,059,000 were 6% below revenues from the prior
fiscal year. The decrease in subscription revenues is largely a result of the
reduced level of advertising during last fiscal year that occurred while the
Company had been in the process of revising its advertising strategy.
Additionally, the availability of free or low cost data on the Internet has also
had a negative impact on revenue growth. Investment management fees and services
revenues of $10,496,000 for the three months ended July 31, 2000, were 18% above
the prior fiscal year's revenues. The higher revenues from investment management
fees and services, compared to the prior year, resulted primarily from the
increase in the year-over-year average net assets under management in the
Company's mutual funds. Assets under management in the Company's mutual funds at
July 31, 2000 increased 10% from the level at July 31, 1999. Additionally,
effective July 1, 2000, the Company received service and distribution fees under
rule 12b-1 of the Investment Company Act of 1940 from substantially all of the
Value Line mutual funds. This contributed to approximately 8% of the increase in
investment management fees and services revenues.


Operating expenses for the three months ended July 31, 2000 of $15,189,000 were
12% above last year's expenses of $13,539,000. Total company-wide advertising
and promotional expenses of $5,152,000 were 46% above the prior year's expenses.
As previously indicated, the prior year's advertising expenses for the Company's
publication business had been reduced while the Company had been in the process
of revising its advertising strategy. The current year's advertising expenses
for the publication business is


                                       14
<PAGE>

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

approximately $728,000 higher than the prior year's. The additional increase in
advertising expenses relates to a selling arrangement for two of the Company's
equity mutual funds and an increase in media and general advertising for the
Value Line mutual funds. Additionally, the increase in promotion fees to
discount brokers, based on higher invested assets in the Value Line family of
mutual funds from these brokers also added to the increased advertising
expenses. Salaries and employee benefit expenses of $6,019,000 were slightly
below expenses of $6,066,000 recorded in the prior fiscal year. The decrease
from the prior year is primarily due to outsourcing the Customer Service
division at the Compupower Corporation and staff reductions in the Asset
Management and Y2K divisions. Production and distribution costs of $1,808,000
were 3% above expenses of $1,746,000 for the three months ended July 31, 1999.
This increase resulted from higher outside data collection service expenses
related to both mutual fund and Internet data for the Company's Web site. In
addition, expenses for the development of THE VALUE LINE INVESTMENT SURVEY FOR
WINDOWS Version 3 and Version 2 of the Company's Website were amortized as
required by SOP 98-1 "Accounting for the Costs of Computer Software Developed
for Internal Use" which the Company adopted in the latter half of 1999. These
increases were offset in part by lower paper, printing and distribution expenses
directly related to lower production runs for print publications. Office and
administration expenses of $2,210,000 were 1% above last year's expenses of
$2,187,000. The increase from the prior year is primarily attributable to
amortization of software for Internet enhancements and maintenance and for the
Compupower Corporation's electronic fulfillment operation.


The Company's securities portfolios produced income of $1,191,000 for the three
months ended July 31, 2000 compared to income of $1,185,000 during last fiscal
year.


                                       14
<PAGE>

                            VALUE LINE, INC.

                              SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Form 10-Q report for the period ended July
31, 2000 to be signed on its behalf by the undersigned thereunto duly
authorized.

                                       Value Line, Inc.
                                         (Registrant)


Date: September 14, 2000               By: /s/ Jean Bernhard Buttner
                                           ----------------------------------
                                           Jean Bernhard Buttner
                                           Chairman & Chief Executive Officer



Date: September 14, 2000               By: /s/ Stephen R. Anastasio
                                           ----------------------------------
                                           Stephen R. Anastasio
                                           Chief Accounting Officer