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| T      | QUARTERLY      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934.                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                    |
|   | For      the Quarterly Period Ended June 30, 2008                                                                                                                                                       |
|   |
| Or     |
|   |
| £ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934. For the      transition period from ____________________ to      _____________________________ |

| TELTRONICS,      INC.                                                             |
|-----------------------------------------------------------------------------------|
| (Exact name      of registrant as specified in its charter)                       |
|                                                                              |
| Delaware                                                                          | 59-2937938 |
| (State or      other jurisdiction of Incorporation or organization)               | (IRS Employer      Identification Number) |
|                                                                              |
| 2150      Whitfield Industrial Way, Sarasota,      Florida   34243 |
| (Address of      principal executive offices including zip code)                  |
|                                                                              |
| (941)      753-5000                                                               |
| Issuer's      telephone number, including areacode                                |

| Large      accelerated filer                             | £ | Accelerated      filer         | £ |
|----------------------------------------------------------|--------|--------------------------------|--------|
| Non-accelerated      filer                               | £ | Smaller      reporting company | T      |
|  (Do not check      if a smaller reporting company) |

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|                                       |                                                                                                                                        | PAGE   |
|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART      I                                | FINANCIAL      INFORMATION                                                                                                                  |   |
|      ITEM      1. |  FINANCIAL      STATEMENTS                                                                                                             |   |
|                                       |  Condensed      Consolidated Balance Sheets at June 30, 2008(Unaudited)      and December 31, 2007                                     | 1      |
|                                       |  Condensed      Consolidated Statements of Operations (Unaudited)for the Three      months and Six months ended June 30, 2008 and 2007 | 2      |
|                                       |  Condensed      Consolidated Statements of Cash Flows (Unaudited)for the Three      months and Six months ended June 30, 2008 and 2007 | 3      |
|                                       |  Notes to      Condensed Consolidated Financial Statements (Unaudited)                                                                 | 4      |
|  ITEM 2.                              |  MANAGEMENT’S      DISCUSSION AND ANALYSIS OFFINANCIAL      CONDITION AND RESULTS OF OPERATIONS                                  | 6      |
|  ITEM 3.                              |  QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUTMARKET      RISK                                                                   | 9      |
|  ITEM 4.                              |  CONTROLS AND      PROCEDURES                                                                                                          | 9      |
|  PART      II                         |  OTHER      INFORMATION                                                                                                                |
|  ITEM 3.                              |  DEFAULTS UPON      SENIOR SECURITIES                                                                                                  | 10     |
|  ITEM 6.                              |  EXHIBITS AND      REPORTS ON FORM 8-K                                                                                                 | 10     |
|  SIGNATURE                            | 11                                                                                                                                          |
|  EXHIBIT      INDEX                   | 12                                                                                                                                          |
|                                       |                                                                                                                                        |   |

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| ASSETS                                                           |   |
|------------------------------------------------------------------|--------|
|                                                             |   |   |   |   |   |   |
|                                                             |   | June      30, |   |   | December      31, |   |
|                                                             |   | 2008 |   |   | 2007 |   |
|                                                             |   | (Unaudited) |   |   |   |   |
| Current      assets:                                             |   |   |   |   |   |   |
| Cash and cash    equivalents                                     |   | $ | 644 |   |   | $ | 1,123 |   |
| Accounts receivable, net of allowance      for doubtful accounts |   |   | 3,862 |   |   |   | 9,122 |   |
| Inventories, net                                                 |   |   | 4,782 |   |   |   | 5,423 |   |
| Prepaid expenses and other current      assets                   |   |   | 364 |   |   |   | 643 |   |
| Total current assets                                             |   |   | 9,652 |   |   |   | 16,311 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                 |   |   | 958 |   |   |   | 949 |   |
| Other      assets                                                |   |   | 800 |   |   |   | 773 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Total assets                                                     |   | $ | 11,410 |   |   | $ | 18,033 |   |
|                                                             |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ DEFICIENCY              |   |
|                                                             |   |   |   |   |   |   |   |   |
| Current      liabilities:                                        |   |   |   |   |   |   |   |   |
| Line of credit                                                   |   | $ | 581 |   |   | $ | 4,029 |   |
| Current portion of long-term      debt                           |   |   | 1,502 |   |   |   | 1,759 |   |
| Accounts payable                                                 |   |   | 5,661 |   |   |   | 6,279 |   |
| Other current    liabilities                                     |   |   | 4,715 |   |   |   | 4,128 |   |
| Total current    liabilities                                     |   |   | 12,459 |   |   |   | 16,195 |   |
| Long-term      liabilities:                                      |   |   |   |   |   |   |   |   |
| Deferred dividends                                               |   |   | 2,600 |   |   |   | 2,200 |   |
| Long-term debt, net of current      portion                      |   |   | 2,922 |   |   |   | 4,125 |   |
| Total long-term    liabilities                                   |   |   | 5,522 |   |   |   | 6,325 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Minority interest                                                |   |   | --- |   |   |   | --- |   |
|                                                             |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                               |   |   |   |   |   |   |   |   |
| Shareholders'      deficiency:                                   |   |   |   |   |   |   |   |   |
| Capital stock                                                    |   |   | 9 |   |   |   | 9 |   |
| Additional paid-in    capital                                    |   |   | 24,724 |   |   |   | 24,722 |   |
| Accumulated deficit and other      comprehensive loss            |   |   | (31,304 | ) |   |   | (29,218 | ) |
| Total shareholders'      deficiency                              |   |   | (6,571 | ) |   |   | (4,487 | ) |
|                                                             |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders'      deficiency              |   | $ | 11,410 |   |   | $ | 18,033 |   |

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|                                                             |   | Three      MonthsEnded      June 30, |      |   | Six      MonthsEnded      June 30, |   |
|------------------------------------------------------------------|--------|--------------------------------------|-----------|--------|------------------------------------|--------|
|                                                             |   | 2008                                 |      |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |
| Net      sales                                                   |   |                                 |      |   |                               |   |   |   |   |   |   |   |
| Product sales and      installation                              |   | $                                    | 6,914     |   |                               | $      | 5,119 |   |   | $ | 12,559 |   |   | $ | 11,776 |   |
| Maintenance and service                                          |   |                                 | 2,847     |   |                               |   | 2,982 |   |   |   | 5,529 |   |   |   | 5,900 |   |
|                                                             |   |                                 | 9,761     |   |                               |   | 8,101 |   |   |   | 18,088 |   |   |   | 17,676 |   |
| Cost of goods      sold                                          |   |                                 | 6,456     |   |                               |   | 5,118 |   |   |   | 11,980 |   |   |   | 11,189 |   |
| Gross      profit                                                |   |                                 | 3,305     |   |                               |   | 2,983 |   |   |   | 6,108 |   |   |   | 6,487 |   |
| Operating      expenses:                                         |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| General andadministrative                                        |   |                                 | 1,627     |   |                               |   | 1,009 |   |   |   | 3,141 |   |   |   | 2,399 |   |
| Sales and marketing                                              |   |                                 | 1,782     |   |                               |   | 1,529 |   |   |   | 3,121 |   |   |   | 3,069 |   |
| Research and development                                         |   |                                 | 915       |   |                               |   | 1,107 |   |   |   | 1,819 |   |   |   | 2,247 |   |
| Depreciation and    amortization                                 |   |                                 | 260       |   |                               |   | 62 |   |   |   | 348 |   |   |   | 126 |   |
|                                                             |   |                                 | 4,584     |   |                               |   | 3,707 |   |   |   | 8,429 |   |   |   | 7,841 |   |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Loss from      operations                                        |   |                                 | (1,279    | )      |                               |   | (724 | ) |   |   | (2,321 | ) |   |   | (1,354 | ) |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expense):                                     |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                         |   |                                 | (299      | )      |                               |   | (821 | ) |   |   | (625 | ) |   |   | (1,172 | ) |
| Other                                                            |   |                                 | (12       | )      |                               |   | 14 |   |   |   | 1,409 |   |   |   | (33 | ) |
| Minority interest income                                         |   |                                 | ---       |   |                               |   | --- |   |   |   | 38 |   |   |   | --- |   |
|                                                             |   |                                 | (311      | )      |                               |   | (807 | ) |   |   | 822 |   |   |   | (1,205 | ) |
| Loss      before income taxes                                    |   |                                 | (1,590    | )      |                               |   | (1,531 | ) |   |   | (1,499 | ) |   |   | (2,559 | ) |
| Income      taxes                                                |   |                                 | 6         |   |                               |   | 6 |   |   |   | 10 |   |   |   | 12 |   |
| Net      loss                                                    |   |                                 | (1,596    | )      |                               |   | (1,537 | ) |   |   | (1,509 | ) |   |   | (2,571 | ) |
| Dividends      on Preferred Series Band C Convertible      stock |   |                                 | 264       |   |                               |   | 263 |   |   |   | 569 |   |   |   | 426 |   |
| Net      loss available toCommon    shareholders                 |   | $                                    | (1,860    | )      |                               | $      | (1,800 | ) |   | $ | (2,078 | ) |   | $ | (2,997 | ) |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss per share:                                         |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                |   | $                                    | (0.22     | )      |                               | $      | (0.21 | ) |   | $ | (0.24 | ) |   | $ | (0.35 | ) |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average sharesoutstanding:                         |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                |   |                                 | 8,647,539 |   |                               |   | 8,647,539 |   |   |   | 8,647,539 |   |   |   | 8,645,859 |   |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                          |   | Six      Months Ended June 30, |   |
|-------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                          |   | 2008                           |   |   | 2007 |   |
|                                                                          |   |                           |   |   |   |   |
| NET      CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES                |   | $                              | 3,008  |   |   | $ | (462 | ) |
|                                                                          |   |                           |   |   |   |   |   |   |
| INVESTING      ACTIVITIES – NET                                         |   |                           | 1,557  |   |   |   | (191 | ) |
|                                                                          |   |                           |   |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                                    |   |                           |   |   |   |   |   |   |
| Net repayments on line of      credit                                         |   |                           | (3,449 | ) |   |   | (2,859 | ) |
| Net principal borrowings (repayments) on      loans, notes and capital leases |   |                           | (1,283 | ) |   |   | 3,303 |   |
| Repayment of loan from related      party                                     |   |                           | (177   | ) |   |   | --- |   |
| Proceeds from issuance of Common      stock                                   |   |                           | ---    |   |   |   | (1 | ) |
| Dividends paid on Preferred Series B      Convertible stock                   |   |                           | (126   | ) |   |   | (126 | ) |
| Net cash      flows provided by (used in) financing activities                |   |                           | (5,035 | ) |   |   | 317 |   |
|                                                                          |   |                           |   |   |   |   |   |   |
| Effect of      exchange rate changes on cash                                  |   |                           | (9     | ) |   |   | 4 |   |
|                                                                          |   |                           |   |   |   |   |   |   |
| Net decrease      in cash and cash equivalents for the period                 |   |                           | (479   | ) |   |   | (332 | ) |
|                                                                          |   |                           |   |   |   |   |   |   |
| Cash and cash      equivalents - Beginning of Period                          |   |                           | 1,123  |   |   |   | 794 |   |
|                                                                          |   |                           |   |   |   |   |   |   |
| Cash and cash      equivalents - End of Period                                |   | $                              | 644    |   |   | $ | 462 |   |
|                                                                          |   |                           |   |   |   |   |   |   |

----

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|                              |   | Three      Months EndedJune      30, |   |   | Six      Months EndedJune      30, |   |
|-----------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                              |   | 2008                                 |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|                              |   |                                 |   |   |                               |   |   |   |   |   |   |   |
| Net      loss                     |   | $                                    | (1,596 | )      |                               | $      | (1,537 | ) |   | $ | (1,509 | ) |   | $ | (2,571 | ) |
| Foreign      currency translation |   |                                 | (8     | )      |                               |   | 5 |   |   |   | (9 | ) |   |   | 4 |   |
| Total      comprehensive loss     |   | $                                    | (1,604 | )      |                               | $      | (1,532 | ) |   | $ | (1,518 | ) |   | $ | (2,567 | ) |
|                              |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |

----

|                                     |   | Three      Months EndedJune      30, |      |   | Six      Months EndedJune      30, |   |
|------------------------------------------|--------|--------------------------------------|-----------|--------|------------------------------------|--------|
| Net      loss per share                  |   | 2008                                 |      |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|                                     |   |                                 |      |   |                               |   |   |   |   |   |   |   |
| Basic                                    |   |                                 |      |   |                               |   |   |   |   |   |   |   |
| Net      loss                            |   | $                                    | (1,596    | )      |                               | $      | (1,537 | ) |   | $ | (1,509 | ) |   | $ | (2,571 | ) |
| Preferred      dividends                 |   |                                 | (264      | )      |                               |   | (263 | ) |   |   | (569 | ) |   |   | (426 | ) |
|                                     |   | $                                    | (1,860    | )      |                               | $      | (1,800 | ) |   | $ | (2,078 | ) |   | $ | (2,997 | ) |
|                                     |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares Outstanding |   |                                 | 8,647,539 |   |                               |   | 8,647,539 |   |   |   | 8,647,539 |   |   |   | 8,645,859 |   |
| Net loss per share                       |   | $                                    | (0.22     | )      |                               | $      | (0.21 | ) |   | $ | (0.24 | ) |   | $ | (0.35 | ) |

|                                                                |   | June      30, 2008 |   |   | December      31, 2007 |   |
|---------------------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|
|                                                                |   | (Unaudited)        |   |   |                   |   |
|                                                                |   |               |   |   |                   |   |
|         Raw      materials  |   | $                  | 2,623  |   |                   | $      | 2,670 |   |
|         Work-in-process     |   |               | 681    |   |                   |   | 1,237 |   |
|         Finished      goods |   |               | 1,478  |   |                   |   | 1,516 |   |
|                                                                |   | $                  | 4,782  |   |                   | $      | 5,423 |   |

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| 10   |   | Amendment      Number Two to Credit Agreement dated August 13, 2008 between Wells Fargo      Foothill, Inc. and Teltronics, Inc.                                                |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1 |   | Certification      by the Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
| 31.2 |   | Certification      by the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
| 32   |   | Certification      of Periodic Financial Report by the Chief Executive Officer and Chief      Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |

| Date      Filed    | Item Reported    On                                          |
|--------------------|--------------------------------------------------------------|
|               |                                                         |
| April 2,      2008 | Item      9.01:  Financial Statements and Exhibits |
|               |                                                         |

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|                                         | TELTRONICS,      INC. |
|----------------------------------------------|-----------------------|
|                                         |                  |   |
| Dated:   August      14, 2008 | By:                   | /s/ EWEN R.      CAMERON                              Ewen R.      CameronPresident      & Chief Executive Officer |
|                                         |                  |   |
| Dated:  August      14, 2008       | By:                   | /s/ CAROL A.      HARKINS                               |
|                                         |                  | Carol A.      HarkinsChief      Accounting Officer |

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| ExhibitNumber |  Description                                                                                                                                                               |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                            |
| 10*           | Amendment      Number Two to Credit Agreement dated August 13, 2008 between Wells Fargo      Foothill, Inc. and Teltronics, Inc.                                                |
| 31.1*         | Certification      by the Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
| 31.2*         | Certification      by the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
| 32*           | Certification      of Periodic Financial Report by the Chief Executive Officer and Chief      Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |
|          |                                                                                                                                                                            |
| _______       |                                                                                                                                                                            |
| (*)           | Filed as an      Exhibit to this Report on Form 10-Q for the period ended June 30,      2008.                                                                                   |

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