<PAGE>

                                      FORM 10-Q

                         SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, D.C.  20549

(Mark one)

     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
          OF THE SECURITIES EXCHANGE ACT OF 1934
          
                 For the quarterly period ended   February 28,1998  
                                                 -------------------
                                         OR

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

               For the transition period from ______ to ______

                        Commission file number:    1-7736   
                                                 ----------
                                   TAB PRODUCTS CO.
       ------------------------------------------------------------------------
                (Exact name of Registrant as specified in its charter)

          DELAWARE                                       94-1190862
------------------------------                 ---------------------------------
  (State of Incorporation)                     (IRS Employer Identification No.)

1400 PAGE MILL ROAD, PALO ALTO, CALIFORNIA                            94304
-------------------------------------------                       --------------
(Address of principal executive offices)                            (Zip Code)

Registrant's telephone number - including area code             (650) 852-2400
                                                              ------------------

                                    NOT APPLICABLE
--------------------------------------------------------------------------------
               Former name, former address and former fiscal year, if 
                              changed since last report.

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.  Common shares outstanding as
of February 28, 1998 - 5,161,764.

This report, including all exhibits and attachments, contains  12  pages. 
                                                              ----


<PAGE>

                                  TAB PRODUCTS CO.
                                          
                                       INDEX
                                          
                         PART I.     FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                  Page No.
<S>      <C>                                                      <C>

ITEM 1.  Financial Statements:

         Consolidated Condensed Balance Sheets
              February 28, 1998 and May 31, 1997                    3

         Consolidated Condensed Statements of Earnings
              Three and nine months ended February 28,
              1998 and 1997                                         4

         Consolidated Condensed Statements of Cash Flows
              Nine months ended February 28,
              1998 and 1997                                         5

         Supplemental Financial Data - Notes                        6

ITEM 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations                   7

ITEM 3.  Quantitative and Qualitative Disclosure
              About Market Risks                                    9


                      PART II.     OTHER INFORMATION


       
ITEM 6.  Exhibits                                                   10

         Signatures                                                 11
</TABLE>


                                          2
<PAGE>

                            PART 1: FINANCIAL INFORMATION

ITEM 1:  Financial Statements

                                   TAB PRODUCTS CO.
                  CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
                          (000'S omitted except share data)
<TABLE>
<CAPTION>
 


ASSETS                                               February 28, 1998            May 31, 1997
                                                     -----------------            ------------
<S>                                                  <C>                          <C>
Current assets:
     Cash and cash equivalents                               $  10,174                $  8,568
     Short-term investments                                      4,755                   3,586
     Accounts receivable, less allowances of 
         $905 and $769 for doubtful accounts                    25,693                  25,550
     Inventories                                                12,622                  11,381
     Prepaid income taxes and other expenses                     2,619                   2,320

                                                             ---------               ---------
        Total current assets                                    55,863                  51,405

Property, plant and equipment, net of accumulated
   depreciation of $37,684 and $34,931                          21,485                  20,567
Goodwill, net                                                    3,822                   4,281
Other assets                                                     4,040                   4,446

                                                             ---------               ---------
                                                             $  85,210               $  80,699
                                                             ---------               ---------
                                                             ---------               ---------
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Current portion of long-term debt                        $  3,438                $  3,313
     Accounts payable                                            7,585                   6,677
     Compensation payable                                        4,474                   4,347
     Other accrued liabilities                                   9,014                   8,605

                                                             ---------               ---------
        Total current liabilities                               24,511                  22,942
                                                             ---------               ---------

Long-term debt                                                   9,969                  10,828
                                                             ---------               ---------
Deferred taxes and other non-current liabilities                 2,372                   2,402
                                                             ---------               ---------

Stockholders' equity:
     Preferred stock: $.01 par value, authorized -
          500,000 shares, issued - none                              -                      - 
     Common stock: $.01 par value, authorized -
          25,000,000 shares, issued - February 1998
          - 7,593,991 shares and May 1997
          - 7,365,803 shares                                        76                      74
     Additional paid-in capital                                 14,692                  13,309
     Retained earnings                                          65,400                  62,473
     Treasury stock: February 1998 and May 1997 -
          2,432,227 shares                                     (31,365)                (31,365)
     Cumulative translation adjustment                            (445)                     36

                                                             ---------               ---------
          Total stockholders' equity                            48,358                  44,527
                                                             ---------               ---------
                                                             $  85,210               $  80,699
                                                             ---------               ---------
                                                             ---------               ---------

</TABLE>
 


                                          3
<PAGE>

                                   TAB PRODUCTS CO.
              CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED)
                          (000's omitted except share data)

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                            February 28
                                                     ------------------------
                                                        1998           1997
                                                     ---------      ---------
<S>                                                   <C>           <C>
Revenues                                             $  41,096      $  38,761
                                                     ---------      ---------
Costs and expenses:
     Cost of revenues                                   23,807         22,822
     Selling, general and administrative                14,463         13,570
     Research and development                              215            204
                                                      ---------      ---------
          Total costs and expenses                      38,485         36,596
                                                      ---------      ---------

          Operating income                               2,611          2,165

Interest, net                                             (130)          (233)
                                                      ---------      ---------
          Earnings before income taxes                   2,481          1,932

Provision for income taxes                               1,079            840

                                                      ---------      ---------
          Net earnings                                $  1,402       $  1,092
                                                      ---------      ---------
                                                      ---------      ---------

Earnings per share:
          Basic                                       $   0.27       $   0.22
          Diluted                                     $   0.26       $   0.22

Average common shares outstanding                    5,135,156      4,880,448
Average common and equivalent shares outstanding     5,315,576      5,053,226
</TABLE>

<TABLE>
<CAPTION>
                                                           Nine Months Ended
                                                              February 28
                                                      ------------------------
                                                         1998         1997
                                                      ---------      ---------
<S>                                                   <C>           <C>
Revenues                                              $122,112       $114,028
                                                      ---------      ---------

Costs and expenses:
     Cost of revenues                                   71,385         67,799
     Selling, general and administrative                43,069         39,649
     Research and development                              663            584
                                                      ---------      ---------
          Total costs and expenses                     115,117        108,032
                                                      ---------      ---------

          Operating income                               6,995          5,996

Interest, net                                             (461)          (768)
                                                      ---------      ---------
          Earnings before income taxes                   6,534          5,228

Provision for income taxes                               2,842          2,274

                                                      ---------      ---------
          Net earnings                                $  3,692       $  2,954
                                                       --------       --------
                                                       --------       --------
Earnings per share:
          Basic                                       $   0.73       $   0.61
          Diluted                                     $   0.70       $   0.59

Average common shares outstanding                    5,079,793      4,866,969
Average common and equivalent shares outstanding     5,269,782      4,984,885

</TABLE>


                                          4
<PAGE>

                                   TAB PRODUCTS CO.
             CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                   (000's omitted)

<TABLE>
<CAPTION>

                                                           Nine Months Ended
                                                              February 28
                                                      ------------------------
                                                         1998           1997
                                                      ---------      ---------
<S>                                                   <C>            <C>
Operating Activities:

   Net earnings                                       $  3,692       $  2,954

   Adjustments to reconcile net earnings to net cash
       provided by operating activities:

   Depreciation and amortization                         3,211          2,950

   Other                                                    21             90

   Changes in operating assets and liabilities:
      Accounts receivable                                 (143)        (2,055)
      Inventories                                       (1,241)          (336)
      Prepaid income taxes and other expenses             (299)          (867)
      Other assets                                         406            503
      Accounts payable                                     908          1,989
      Compensation payable                                 127            145
      Other accrued liabilities                            379            637

                                                      ---------      ---------
        Net cash provided by operating activities        7,061          6,010
                                                      ---------      ---------

Investing Activities:

   Purchase of property, plant and equipment, net       (3,691)        (1,944)
   Purchases of short-term investments                  (6,848)        (4,361)
   Sales of short-term investments                       5,679          3,347

                                                      ---------      ---------
        Net cash required by investing activities       (4,860)        (2,958)
                                                      ---------      ---------

Financing Activities:

   Repayment of long-term debt                            (734)          (735)
   Proceeds from issuance of common stock                1,385            181
   Dividends paid                                         (765)          (730)

                                                      ---------      ---------
        Net cash required by financing activities         (114)        (1,284)
                                                      ---------      ---------

Effect of exchange rate changes on cash                   (481)          (112)
                                                      ---------      ---------

Increase in cash and cash equivalents                    1,606          1,656

Cash and cash equivalents at beginning of period         8,568          9,331
                                                      ---------      ---------
Cash and cash equivalents at end of period            $ 10,174       $ 10,987
                                                      ---------      ---------
                                                      ---------      ---------
</TABLE>


                                          5
<PAGE>

                                  TABS PRODUCTS CO.
                    SUPPLEMENTAL FINANCIAL DATA-NOTES (UNAUDITED)


1.  Inventories consisted of the following (000's omitted):

<TABLE>
<CAPTION>

                                             February 28, 1998   May 31, 1997
                                             -----------------  -------------
<S>                                           <C>                <C>
           Finished goods                            $   7,897      $   6,669
           Work in process                                 893          1,319
           Raw materials                                 3,832          3,393
                                                     ---------      ---------
                                                     $  12,622      $  11,381
                                                     ---------      ---------
                                                     ---------      ---------

</TABLE>

2.   In February 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 128, "Earnings per Share" 
(SFAS 128).  The company has adopted SFAS 128 in the current quarter of 
fiscal 1998 and restated earnings per share (EPS) data for prior periods to 
conform with SFAS 128.

     SFAS 128 replaces previous EPS reporting requirements and requires a 
dual presentation of basic and diluted EPS.  Basic EPS excludes dilution and 
is computed by dividing net income by the weighted average number of common 
shares outstanding for the period.  Diluted EPS reflects the potential 
dilution that could occur if securities or other contracts to issue common 
stock were exercised or converted into common stock.

3.  Dividends declared for the nine month periods ended February 28, 1998 and 
1997 were as follows:

<TABLE>
<CAPTION>

                     Record Date       Shares Outstanding    Dividend Per Share
                     -----------       ------------------    ------------------
             <S>                       <C>                   <C>
             February 25, 1998                5,161,764              $  0.05
             November 25, 1997                5,103,014              $  0.05 
               August 25, 1997                5,041,576              $  0.05 

             February 25, 1997                4,881,826              $  0.05 
             November 25, 1996                4,862,951              $  0.05 
               August 26, 1996                4,851,951              $  0.05 

</TABLE>

4.  The above financial information reflects all adjustments consisting of
normal recurring items which are, in the opinion of management, necessary for a
fair presentation of the results of the interim periods.  These financial
statements should be read in conjunction with the company's audited financial
statements for the year ended May 31, 1997.


                                          6
<PAGE>

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

This section contains forward-looking statements, which reflect the company's
current views with respect to future events which may impact the company's
results of operations and financial condition.  These statements are subject to
risks and uncertainties, including those set forth below under the caption
"Business Environment and Risk Factors" which could cause actual future results
to differ materially from historical results.

FINANCIAL CONDITION

At February 28, 1998 the company had cash and short-term investments of $14.9 
million, an increase of $2.7 million from the $12.2 million at May 31, 1997. 
The company's working capital position at February 28, 1998 was $31.4 million 
as compared with $28.5 million at May 31, 1997.  The current ratio of 2.3 at 
February 28, 1998 was up slightly from the 2.2 reported for May 31, 1997. 
Inventories at February 28, 1998 were $12.6 million, an increase of $1.2 
million compared to the $11.4 million reported at May 31, 1997.  The higher 
inventories were the result of planned increases in certain inventories to 
meet peak period demands.  Management believes that the company's cash and 
cash equivalents, available credit facilities and operational cash flow will 
adequately finance anticipated growth, capital expenditures and debt 
obligations for the foreseeable future.

Investments in property, plant and equipment, which were primarily focused on
manufacturing equipment and management information systems were $3.7 million
during the nine months ended February 28, 1998.  Capital expenditures to support
operations for fiscal 1998 are expected to approximate $5.0 million.

For the nine month period ended February 28, 1998 the company paid cash
dividends of $765,000 as compared to $730,000 in the prior fiscal year.  The
increase was due to the exercise of common stock options.

The company has an unsecured revolving line of credit of $10 million with a bank
which expires on October 31, 1998.  There were no borrowings outstanding under
the line of credit at February 28, 1998.  The company intends to renew the line
of credit at substantially the same terms as the existing agreement.


RESULTS OF OPERATIONS

REVENUES for the third quarter of fiscal 1998 amounted to $41.1 million, up $2.3
million or 6% from the $38.8 million reported in the third quarter of fiscal
1997.  The increased quarterly revenues were primarily from North America
document management related products and services, partially offset by a decline
in revenues from furniture related products consistent with our focus on
delivering document management solutions.  In addition, revenues outside of
North America declined primarily as a result of transitions in sales
distribution partners in several key markets.  Revenues for the nine months
ended February 28, 1998 were $122.1 million, up $8.1 million or 7% from revenues
of $114.0 million reported in the first nine months of the prior fiscal year. 
Document management related products and services were the primary source of the
improved revenues for the nine months ended February 28, 1998.


                                          7
<PAGE>

COST OF REVENUES, as a percentage of revenues, was 57.9% for the third quarter
of fiscal 1998, an improvement from the 58.9% reported in the third quarter of
fiscal 1997.  This improvement was primarily the result of product cost
reductions and sales mix.  For the nine months ended February 28, 1998 cost of
revenues was 58.5% as compared to 59.5% in the first nine months in the prior
fiscal year.  The nine month improvement was also due to product cost reductions
and sales mix. 

OPERATING EXPENSES were $14.7 million or 35.8% of total revenues for the third
quarter of fiscal 1998 as compared to $13.8 million or 35.6% of total revenues
for the third quarter of fiscal 1997.  The increase in operating expenses for
the third quarter of fiscal 1998 is primarily due to higher commission expense
($426,000) incurred to achieve increased revenues and sales support costs and
management information systems ($478,000) focused on improved access and sales
force automation.  For the nine months ended February 28, 1998 operating
expenses were $43.7 million or 35.8% as compared to $40.2 million or 35.3% for
the nine months ended February 28, 1997.  The increase in operating expenses for
the nine months ended February 28, 1998 is partially due to higher commission
expense ($1,558,000) due to increased revenues.  In addition, operating expenses
were higher ($1,941,000) as a result of increased sales activity, general
support costs and continuous product development.

INTEREST EXPENSE, net, was $130,000 in the third quarter of fiscal 1998 as
compared to $233,000 in the third quarter of fiscal 1997.  For the nine months
ended February 28, 1998 interest expense, net, was $461,000 as compared to
$768,000 in the prior fiscal year.  The decrease for the three and nine months
ended February 28, 1998 was primarily due to reductions in overall debt levels
and increases in cash and cash equivalents and short-term investments as 
compared to the prior year periods.

DILUTED EARNINGS PER SHARE for the three months ended February 28, 1998 were
$.26 per share, an increase of 18% over the $.22 per share earned in the third
quarter of the prior fiscal year.  For the nine months ended February 28, 1998
diluted earnings per share were $.70 per share, an increase of 19% over the $.59
per share in the prior fiscal year.

BUSINESS ENVIRONMENT AND RISK FACTORS
The company's future operating results may be affected by various trends and
factors which the company must successfully manage in order to achieve favorable
operating results.  In addition, there are trends and factors beyond the
company's control which affect its operations.  Such trends and factors include,
but are not limited to, adverse changes in economic conditions in the geographic
markets for the company's products, market acceptance of new products and
services, product mix, governmental regulation and risks in government
contracting, fluctuations in foreign exchange rates, effectiveness of the
company's various sales channels and the company's ability to attract,
assimilate and retain key senior management, sales and marketing personnel.

YEAR 2000 COMPLIANCE
Although the company believes that its products do not have Year 2000 problems,
the company is currently reviewing its payroll, billing, accounting and other
informational service functions to determine the nature and extent of any Year
2000 issues related to such functions.  In addition, Year 2000 issues may also
arise with respect to products furnished by third-party suppliers that may
result in unforeseen costs or delays to the company and therefore may have a
material adverse effect on the company.


                                          8
<PAGE>

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS

          Not applicable.     




                            PART II:   OTHER INFORMATION
                                          
                                          
ITEM 1.   LEGAL PROCEEDINGS

          Not applicable.

ITEM 2.   CHANGES IN SECURITIES

          Not applicable.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          Not applicable.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          Not applicable.

ITEM 5.   OTHER INFORMATION

          Not applicable.


                                          9
<PAGE>

ITEM 6.   Exhibits

          (a)  27   Financial Data Schedule

          (b)  Reports on Form 8-K
          
               None







                                          10
<PAGE>

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.





                                               TAB PRODUCTS CO.           
                                   ----------------------------------------
                                                (Registrant)



Date:     April 13, 1998            /s/ David J. Davis    
                                   --------------------------------------------
                                   David J. Davis, Senior Vice President,
                                   Operations and Acting Chief Financial Officer



Date:     April 13, 1998            /s/ Michael J. Baker                      
                                   --------------------------------------------
                                   Michael J. Baker, Controller


                                          11