<PAGE>
                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                    FORM 10-Q
                                    ---------

                                   (Mark One)

(X)      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2002



( )      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT FOR THE
         TRANSITION PERIOD From _________________to ___________________.

                         Commission file number: 0-25634
                                                 -------

                   AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
             (Exact name of registrant as specified in its charter)

         DELAWARE                                              87-0365268
(State or other jurisdiction of                                (IRS Employer
 incorporation or organization)                             Identification No.)


             860 Boardman - Canfield Road, Boca Building, Suite 107
                               Boardman Ohio 44512
                    (Address of principal executive offices)

                                 (330) 965-9910
              (Registrant's telephone number, including area code)

 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 Exchange Act during
         the past 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 stock, $.001 par value, 13,821,616 shares outstanding at July
         31, 2002









<PAGE>



                   AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
                                    FORM 10-Q
                                      INDEX



Part I -- FINANCIAL INFORMATION

Item 1.    Financial Statements (Unaudited)
               Consolidated Balance Sheets - June 30, 2002 and December 31, 2001
               Consolidated Statements of Operations - Three and six months
                  ended June 30, 2002 and 2001
               Consolidated Statements of Cash Flows - Six months ended June 30,
                  2002 and 2001
               Notes to Consolidated Financial Statements

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

Item 3.    Quantitative and Qualitative Disclosures About Market Risk


Part II -- OTHER INFORMATION

Item 1.    Legal Proceedings
Item 2.    Changes in Securities and Use of Proceeds
Item 3.    Defaults upon Senior Securities
Item 4.    Submission of Matters to a Vote of Security Holders
Item 5.    Other Information
Item 6.    Exhibits and Reports on Form 8-K


SIGNATURES



<PAGE>


                   AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
                             (DEBTOR-IN-POSSESSION)

                           CONSOLIDATED BALANCE SHEETS
                 (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA)



                                                  (Unaudited)
                                                    June 30        December 31,
                                                      2002            2001
                                                    --------        --------
ASSETS
CURRENT ASSETS
   Cash and cash equivalents                        $ 44,761        $  2,762
   Accounts receivable, less allowance
     for doubtful accounts of $35 and $619               251           5,972
   Prepaid expenses and other current assets           1,132             964
   Assets held for sale                               41,244          76,622
                                                    --------        --------
TOTAL CURRENT ASSETS                                  87,388          86,320
                                                    --------        --------
PROPERTY AND EQUIPMENT
   Land and improvements                                 115             115
   Buildings and improvements                            910           1,144
   Machinery, tools and equipment                         --              36
   Computers and office equipment                        251             248
                                                    --------        --------
                                                       1,276           1,543
   Less accumulated depreciation                        (394)           (496)
                                                    --------        --------
NET PROPERTY AND EQUIPMENT                               882           1,047

OTHER                                                  2,309             671
                                                    --------        --------

                                                    $ 90,579        $ 88,038
                                                    ========        ========







<PAGE>


                   AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
                             (DEBTOR-IN-POSSESSION)

                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                 (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA)


<TABLE>
<CAPTION>
                                                                      (Unaudited)
                                                                        June 30,      December 31,
                                                                          2002            2001
                                                                       ---------       ---------
<S>                                                                    <C>             <C>
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
   Accounts payable - trade                                            $   1,663       $     763
   Accrued Expenses
     Compensation and related benefits                                        69             289
     Other                                                                 1,306           1,284
   Liabilities held for sale                                              11,393          22,337
   Debtor-in-possession revolving credit and term loan                        --          18,583
                                                                       ---------       ---------
TOTAL CURRENT LIABILITIES                                                 14,431          43,256
Other                                                                        236             147
Liabilities subject to compromise                                        159,306         159,360
                                                                       ---------       ---------
TOTAL LIABILITIES                                                        173,973         202,763
                                                                       ---------       ---------
STOCKHOLDERS' DEFICIT
   Preferred stock, Series A convertible, $.001 par,
     20,000,000 shares authorized; no shares
      outstanding                                                             --              --
   Preferred stock, Series B convertible, $.01
     par, 30,000 shares authorized; no shares
      outstanding                                                             --              --
   Common stock, $.001 par, 100,000,000 shares
     authorized; 14,321,616 issued; 13,821,616 shares outstanding             14              14
   Additional paid-in capital                                              9,142           9,142
   Treasury stock, at cost                                                  (100)           (100)
   Retained deficit                                                      (92,450)       (123,781)
                                                                       ---------       ---------
TOTAL STOCKHOLDERS' DEFICIT                                              (83,394)       (114,725)
                                                                       ---------       ---------
                                                                       $  90,579       $  88,038
                                                                       =========       =========
</TABLE>



          See accompanying notes to consolidated financial statements.



<PAGE>


                   AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
                             (DEBTOR-IN-POSSESSION)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)


<TABLE>
<CAPTION>
                                                     (Unaudited)                   (Unaudited)
                                                  Three months ended            Six months ended
                                                       June 30,                      June 30,
                                                -----------------------       -----------------------
                                                  2002           2001           2002           2001
                                                --------       --------       --------       --------
<S>                                             <C>            <C>            <C>            <C>
RESULTS OF DISCONTINUED OPERATIONS
Net Sales                                       $ 29,350       $ 25,883       $ 51,011       $ 45,826
Cost of Sales                                     23,792         21,434         42,157         39,232
                                                --------       --------       --------       --------
GROSS PROFIT                                       5,558          4,449          8,854          6,594
Selling Expense                                    2,676          2,533          4,970          4,642
Impairment Charge                                  8,670             --          8,670             --
General and Administrative Expenses                1,114          1,365          2,407          2,914
Other (Income) Expense                               (14)            83             23              4
                                                --------       --------       --------       --------
INCOME (LOSS) BEFORE RESULTS OF
  DISPOSED OPERATIONS                             (6,888)           468         (7,216)          (966)
INCOME FROM DISPOSED
   OPERATIONS                                     45,774          1,698         42,229          1,944
                                                --------       --------       --------       --------
INCOME FROM
   DISCONTINUED OPERATIONS                        38,886          2,166         35,013            978

RESULTS OF CONTINUING OPERATIONS
Corporate General and Administrative
   and Other Expenses                                985          1,010          1,731          1,917
Interest expense, net                                109            542            371          1,037
Reorganization Costs                                 726          2,445          1,580          3,090
                                                --------       --------       --------       --------
LOSS FROM CONTINUING OPERATIONS                   (1,820)        (3,997)        (3,682)        (6,044)
                                                --------       --------       --------       --------
NET INCOME (LOSS)                               $ 37,066       $ (1,831)      $ 31,331       $ (5,066)
                                                ========       ========       ========       ========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
   BASIC AND DILUTED                              13,822         13,822         13,822         13,822
                                                ========       ========       ========       ========

BASIC AND DILUTED INCOME (LOSS) PER
   COMMON SHARE
   Discontinued operations                      $   2.81       $   0.16       $   2.53       $   0.07
   Continuing operations                           (0.13)         (0.29)         (0.26)         (0.44)
                                                --------       --------       --------       --------
BASIC AND DILUTED NET INCOME (LOSS)
   PER COMMON SHARE                             $   2.68       $  (0.13)      $   2.27       $  (0.37)
                                                ========       ========       ========       ========
</TABLE>




          See accompanying notes to consolidated financial statements.





<PAGE>



                   AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
                             (DEBTOR-IN-POSSESSION)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                    (Unaudited)
                                                                                 Six months ended
                                                                                      June 30,
                                                                                 2002           2001
                                                                               --------       --------

<S>                                                                            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Loss from continuing operations                                                $ (3,682)      $ (6,044)
Adjustments to reconcile loss from continuing operations to net cash used
   in operating activities:
     Depreciation                                                                    37            112
     Amortization                                                                    --            476
     Provision for reorganization costs                                              --          1,140
Changes in assets and liabilities, net of effects of business
   acquisitions and divestitures and discontinued operations:
     Accounts receivable                                                             (9)          (398)
     Prepaid and other current assets                                              (475)           133
     Other assets                                                                  (442)            --
     Accounts payable                                                               393            (87)
     Accrued expenses and other liabilities                                          39            338
     Liabilities subject to compromise                                              (54)        (2,394)
                                                                               --------       --------
NET CASH USED FOR OPERATIONS BEFORE DISCONTINUED OPERATIONS                      (4,193)        (6,724)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS                                      1,334          3,388
                                                                               --------       --------
NET CASH USED IN OPERATING ACTIVITIES                                            (2,859)        (3,336)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF DISCONTINUED
     OPERATIONS                                                                  63,411         (2,343)
CASH FLOWS FROM FINANCING ACTIVITIES
     Net (repayments) borrowings on revolving line of credit                    (18,583)         7,541
                                                                               --------       --------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES FROM
     CONTINUING OPERATIONS                                                      (18,583)         7,541
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF
     DISCONTINUED OPERATIONS                                                         30           (171)
                                                                               --------       --------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES                             (18,553)         7,370
                                                                               --------       --------
NET INCREASE IN CASH AND CASH EQUIVALENTS                                        41,999          1,691
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                    2,762            158
                                                                               --------       --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                       $ 44,761       $  1,849
                                                                               ========       ========
</TABLE>


          See accompanying notes to consolidated financial statements.


<PAGE>



                   AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
                             (DEBTOR-IN-POSSESSION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.       BASIS OF PRESENTATION

American Architectural Products Corporation (AAPC or the Company) is principally
engaged in the business of manufacturing residential and architectural windows
and doors through its wholly-owned subsidiaries, Thermetic Glass, Inc.
(Thermetic), Binnings Building Products, Inc. (Binnings), Danvid Window Company
(Danvid), Modern Window Corporation (Modern), and American Weather-Seal Company
(Weather-Seal). In May 2002, the Company sold Eagle Window and Door, Inc., the
only remaining operating division of Eagle & Taylor Company (ETC - formerly
known as American Architectural Products, Inc., AAP) and Eagle Service Company
(collectively "Eagle"). American Glassmith Corporation (American Glassmith) was
also a subsidiary at December 31, 2001 and was sold in March 2002. TM Window and
Door (TMWD) was a subsidiary at December 31, 2001 and, together with the
Binnings Pan American division of Binnings (Pan Am) was sold in February 2002.
Denver Window Corporation (Denver) was a subsidiary at June 30, 2001 and was
sold in September 2001.

On December 18, 2000, the Company filed for voluntary protection under Chapter
11 of the United States Bankruptcy Code in the United States Bankruptcy Court in
the Northern District of Ohio (the Bankruptcy Court). The Company is presently
operating its business as a debtor-in-possession under Chapter 11 and is subject
to the jurisdiction and supervision of the Bankruptcy Court. The accompanying
consolidated financial statements have been prepared in accordance with AICPA
Statement of Position 90-7 (SOP 90-7), "Financial Reporting by Entities in
Reorganization under the Bankruptcy Code" as more fully described in Note 2.

The Company elected to adopt the provision of the Financial Accounting Standards
Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 144,
Accounting for the Impairment of or Disposal of Long-Lived Assets issued in
August 2001. As of June 30, 2002, all of the Company's remaining operations are
being marketed for sale. The assets and post-petition liabilities of these
businesses are classified as being held for sale in the accompanying balance
sheet. The Statements of Operations reflect the sales, cost of sales, selling,
general and administrative costs and other expenses of these remaining
operations and, together with the results of operations of businesses either
sold or under agreement to sell prior to June 30, 2002 (classified as disposed
operations), are classified as discontinued operations. The results of
continuing operations include the Company's corporate activities including
overhead expenses and costs associated with the administration of the bankruptcy
filing.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments, consisting
only of normal recurring adjustments, necessary for the fair presentation of
financial position and results of operations have been made. Operating results
for interim periods are not necessarily indicative of results that may be
expected for the year ended December 31, 2002. The information included in this
Form 10-Q should be read in conjunction with Management's Discussion and
Analysis of Financial Condition and Results of Operations and the financial
statements and notes thereto of the Company for the year ended December 31, 2001
included in the annual report on Form 10-K.

The balance sheet at December 31, 2001 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. Certain prior period amounts have been reclassified to
conform with current period presentation.



2.       BANKRUPTCY PROCEEDINGS AND GOING CONCERN CONSIDERATIONS:

On December 18, 2000, the Company and its subsidiaries filed for voluntary
bankruptcy protection under Chapter 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court in the Northern District of Ohio (the
Bankruptcy Court). The Company is presently operating its businesses as a
debtor-in-possession under Chapter 11 and is subject to the jurisdiction and
supervision of the Bankruptcy Court. In Chapter 11 cases, substantially all
liabilities as of the date of the filing of the petition for reorganization are
subject to the treatment set forth under a plan of reorganization to be voted
upon by the Company's impaired creditors and stockholders and confirmed by the
Bankruptcy Court. The ultimate amount and treatment terms for such liabilities
are subject to a plan of reorganization and, accordingly, are not presently
determinable. In addition, on December 18, 2000, the Bankruptcy Court

<PAGE>

issued an order authorizing the Company to pay certain pre-petition claims of
essential vendors and suppliers. Accordingly, these amounts have been paid or
are included in "liabilities subject to compromise" on the consolidated balance
sheets.

An unsecured creditors' committee has been appointed by the Bankruptcy Court.
The official committee and legal representatives are the primary entities with
which the Company is negotiating the terms of a plan of reorganization. The
Bankruptcy Court has approved an extension to October 18, 2002, during which
time the Company has the exclusive right to file a reorganization plan.

The consolidated financial statements of the Company and its subsidiaries were
prepared on the going concern basis, which contemplates continuity of
operations, realization of assets and liquidation of liabilities in the ordinary
course of business. However, during the years ended December 31, 2001, 2000 and
1999, the Company incurred losses of $24.7 million, $42.4 million, and $47.1
million, respectively. Further, the Company's ongoing debt service obligations
included semi-annual interest payments of approximately $7.3 million, due each
June 1 and December 1 through December 1, 2007. The indenture governing the
Notes provides that an "Event of Default" includes the default in any payment of
interest on the Notes when due, continued for 30 days. The Company did not have
sufficient liquidity to make the June 1, 2000 through December 1, 2000 interest
payments. Accordingly, the Company was in default of the indenture. Furthermore,
the Company was in violation of certain of its covenants under the line of
credit facility at December 31, 1999 but obtained waivers for those violations.
These events, among other things, led to the Chapter 11 filings; therefore, the
realization of assets and liquidation of liabilities is subject to significant
uncertainty.

In the Chapter 11 proceedings (subject, in certain circumstances, to Bankruptcy
Court approval), the debtors may sell or otherwise dispose of assets, and
liquidate or settle liabilities, for amounts other than those reflected in the
consolidated financial statements. The amounts reported in the consolidated
financial statements do not give effect to any adjustments to the carrying value
of assets (except for the write-down of goodwill) or amounts of liabilities that
might result as a consequence of actions taken pursuant to a plan of
reorganization, which adjustments could be material. The continuation of the
Company as a going concern is contingent upon, among other factors, the ability
of the debtors to (1) formulate and file a plan which will gain the approval of
the creditors and other parties in interest and confirmation by the Bankruptcy
Court; (2) maintain debtor-in-possession financing; (3) achieve profitable
operations; (4) obtain adequate shipments of merchandise from suppliers at
acceptable credit terms; and (5) obtain post reorganization financing. There can
be no assurances that the above conditions can be met.

Liabilities Subject to Compromise

As reflected in the consolidated financial statements, "liabilities subject to
compromise" refer to liabilities incurred prior to the commencement of the
Chapter 11 case. The amounts of the various liabilities that are subject to
compromise are set forth below. These amounts represent the Company's estimate
of known or potential pre-petition claims to be resolved in connection with the
Chapter 11 case. Such claims remain subject to future adjustments. Adjustments
may result from (1) negotiations; (2) actions of the Bankruptcy Court; (3)
rejection of executory contracts and unexpired leases; (4) the determination as
to the value of any collateral securing claims; (5) proofs of claim; or (6)
other events. Payment terms for these amounts will be established in connection
with the Chapter 11 case.

Liabilities subject to compromise in the consolidated balance sheet consist of
the following items (in thousands):

                                                         June 30,   December 30,
                                                           2002        2001
                                                         --------    --------
     Accounts payable                                    $  8,294    $  8,316
     Accrued interest payable                              17,299      17,299
     Accrued liabilities                                    1,188       1,188
     Debt                                                 132,525     132,557
                                                         --------    --------

            Total liabilities subject to compromise      $159,306    $159,360
                                                         ========    ========


Interest on certain pre-petition debt is not accrued after the bankruptcy
filing. Such contractual interest expense not recorded totaled $3.8 million for
each of the three month periods ending June 30, 2002 and 2001 and $7.6 million
for each of the six month periods ending June 30, 2002 and 2001.


<PAGE>



Debtor-In-Possession Financing

In connection with the bankruptcy filing, the Company obtained an aggregate $35
million debtor-in-possession credit facility, subject to an available collateral
base, from a group of lenders (the DIP Facility) which was repaid in May 2002
with a portion of the proceeds from the Eagle sale as discussed in Note 3. At
December 31, 2001, $12.2 million and $6.4 million were outstanding under the DIP
Facility's line of credit and term note, respectively.

Reorganization Costs
The amounts reflected as reorganization costs in the consolidated statements of
operations consisted of the following (in thousands):

<TABLE>
<CAPTION>
                                     Three months ended           Six months ended
                                          June 30,                    June 30,
                                    --------------------        --------------------
                                     2002          2001          2002          2001
                                    ------        ------        ------        ------
<S>                                 <C>           <C>           <C>           <C>
Professional fees                   $  697        $  634        $1,537        $1,279
Other                                   29            52            43            52
Plant closing                           --         1,759            --         1,759
                                    ------        ------        ------        ------
  Total Reorganization Costs        $  726        $2,445        $1,580        $3,090
                                    ======        ======        ======        ======
</TABLE>

In February 2001, the Company announced the shutdown of its wood window
manufacturing operation in Ottawa, Ohio effective April 2001. In April 2001 the
Bankruptcy Court approved the shutdown plan which was substantially completed by
the end of April 2001. The plant closing charges reflected above are associated
with this restructuring effort and include severance costs of $619 thousand and
a loss on the liquidation of assets of $1.14 million. $555 thousand of the
accrued severance costs were paid during the second quarter of 2001 and the
remainder were paid during the third quarter of 2001.

Professional fees incurred consisted primarily of consulting and legal fees for
bankruptcy activity and restructuring efforts.

3. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

During the second quarter of 2002, the Company committed to a plan to sell its
remaining operations: Weather-Seal's window manufacturing operations (AWS),
Binnings Building Products Lexington, North Carolina operations (BBP), and
Danvid Window Company (Danvid). The following summarizes the results of
operations for the three month and six month periods ending June 30, 2002 and
2001 for each of these entities (in thousands):

<TABLE>
<CAPTION>
                                         Three months ended                Six months ended
                                              June 30,                         June 30,
                                     -------------------------         -------------------------
                                       2002             2001             2002             2001
                                     --------         --------         --------         --------
<S>                                  <C>              <C>              <C>              <C>
Net Sales
     AWS                             $  7,618         $  8,127         $ 13,258         $ 15,345
     BBP                                5,205            4,748            9,273            9,098
     Danvid                            16,776           14,665           29,538           24,552
     Eliminations                        (249)          (1,657)          (1,058)          (3,169)
                                     --------         --------         --------         --------
     Total                           $ 29,350         $ 25,883         $ 51,011         $ 45,826
                                     ========         ========         ========         ========

Income (Loss) before Disposed
Operations
     AWS                             $    295         $   (601)        $    (20)        $ (1,700)
     BBP                               (1,436)             209           (1,880)             301
     Danvid                            (5,747)             860           (5,316)             433
                                     --------         --------         --------         --------
     Total                           $ (6,888)        $    468         $ (7,216)        $   (966)
                                     ========         ========         ========         ========
</TABLE>

On December 16, 1999, the Board of Directors of the Company approved a plan to
abandon its commercial business segment, conducted through its wholly-owned
subsidiary, Forte. The Company discontinued manufacturing operations at Forte in
May 2000. In April 2002, the Company agreed to sell the remaining property for
approximately $375,000 less certain selling costs provided certain conditions
are met and subject to Bankruptcy Court approval. The Company recorded a loss on
disposal of $437,000 in the

<PAGE>

first quarter of 2002 to write down the recorded value of this property to the
estimated fair value based on the selling price.

In January 2001, the Company announced the discontinuance of its Eagle Window
and Door Center, Inc. (EWDC) operations. The Company substantially completed its
plan to exit this business in December 2001.

On January 31, 2002 the Company completed the sale of Weather-Seal's aluminum
extrusion operations (the Aluminum Extrusion Group or AEG) for $1.5 million cash
and the assumption of certain post-petition liabilities. During the second
quarter of 2002, the Company began to actively market certain real property of
AEG which was not included in the January 2002 sale. The net book value of this
property has been reclassified as held for sale at December 31, 2001 and June
30, 2002.

On February 15, 2002, the Company completed the sale of certain assets of the
Binnings Pan American (Pan Am) and TM Window and Door (TM) divisions of Binnings
for $500,000 cash, a $1.7 million note receivable and the assumption of certain
liabilities. During the second quarter of 2002, the company recorded additional
losses of $1,002,000 and $538,000 on the disposal of BPA and TM, respectively
resulting from the write-down of the value of accounts receivable retained by
the Company after the sale.

AEG and a portion of Pan Am comprised the Company's extrusion segment. Extrusion
products consist of aluminum extrusions used primarily in the fenestration
products industry. These businesses supplied a portion of the raw materials used
in the manufacture of windows by the Company. The consummation of these
transactions completes the Company's exit from the extrusion segment. As a
result, the Company now operates in one business segment, residential
fenestration products.

On March 22, 2002, the Company completed the sale of certain assets of American
Glassmith (AGI) for $350,000 cash and the assumption of certain post-petition
liabilities.

On May 6, 2002, the Company completed the sale of Eagle for $63.5 million and
the assumption of certain liabilities. The Company recognized a gain of $47.8
million on the sale, net of $0.6 million in income tax expense, for the three
months and six months ended June 30, 2002.

In July 2002, the Company signed an agreement to sell substantially all of the
assets of Thermetic (TGI) for $1.3 million, and the assumption of certain
post-petition liabilities, subject to a working capital adjustment. The
agreement requires Bankruptcy Court approval. The Company expects to close this
transaction during the third quarter of 2002. The Company recorded an impairment
charge of $840 thousand during the first quarter of 2002 based on the expected
proceeds from the sale. This charge is recognized as a loss on disposal.

The results of operations for AEG, Pan Am, TM, AGI, Eagle, TGI, EWDC and Forte
have been presented as results of disposed operations in the accompanying
financial statements for all periods. The Company did not recognize income tax
benefits on the losses from these operations. Net sales and net losses from
disposed operations before inter-company eliminations by segment for each period
consist of the following (in thousands):

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED JUNE 30, 2002
                          ---------------------------------------------------------------------------------------------------------
                                              EXTRUSION
                                     BPA       SEGMENT      BPA                                                  FORTE &
                              AEG  EXTRUSION  SUB-TOTAL RESIDENTIAL       TM       AGI       EAGLE      TGI        EWDC       TOTAL
                          ----------------------------- ---------------------------------------------------------------------------
<S>                          <C>      <C>       <C>       <C>           <C>      <C>       <C>         <C>         <C>    <C>
Net Sales                    $  --    $ --      $  --     $    --       $  --    $   22    $  6,911    $ 1,722     $ --   $  8,655
                          ============================= ===========================================================================

Income (loss) from
  operations                 $  --    $ --      $  --     $    --       $  --    $   18    $   (328)   $    26     $ --   $    284
Gain (loss) on disposal       (162)     --       (162)     (1,002)       (538)      (59)     47,800         --       19     46,258
                          ----------------------------- ---------------------------------------------------------------------------
Income (loss) from           $(162)   $ --      $(162)    $(1,002)      $(538)   $  (41)   $ 47,472    $    26     $ 19   $ 45,774
  disposed operations
                          ============================= ===========================================================================
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED JUNE 30, 2001
                          ---------------------------------------------------------------------------------------------------------
                                               EXTRUSION
                                       BPA      SEGMENT       BPA                                                 FORTE &
                             AEG    EXTRUSION  SUB-TOTAL  RESIDENTIAL    TM        AGI       EAGLE      TGI       EWDC       TOTAL
                          ------------------------------ ---------------------------------------------------------------------------
<S>                       <C>        <C>        <C>        <C>        <C>        <C>        <C>       <C>        <C>        <C>
Net Sales                 $ 3,249    $   475    $ 3,724    $ 9,007    $ 3,044    $ 1,731    $20,702   $ 1,807    $    94    $40,109
                          ============================== ===========================================================================
Income (loss) from
  operations              $  (349)   $  (172)   $  (521)   $  (302)   $  (185)   $   (54)   $ 2,698   $    80    $   (18)   $ 1,698
Gain (loss) on disposal        --         --         --         --         --         --         --        --         --         --
                          ------------------------------ ---------------------------------------------------------------------------
Income (loss) from
  disposed operations     $  (349)   $  (172)   $  (521)   $  (302)   $  (185)   $   (54)   $ 2,698   $    80    $   (18)   $ 1,698
                          ============================== ===========================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                 SIX MONTHS ENDED JUNE 30, 2002
                          ---------------------------------------------------------------------------------------------------------
                                             EXTRUSION
                                     BPA      SEGMENT        BPA                                                  FORTE &
                            AEG   EXTRUSION  SUB-TOTAL   RESIDENTIAL   TM         AGI       EAGLE       TGI        EWDC    TOTAL
                          ----------------------------- ---------------------------------------------------------------------------

<S>                       <C>       <C>       <C>        <C>        <C>         <C>        <C>        <C>        <C>       <C>
Net Sales                 $  874    $  419    $ 1,293    $  2,829   $  1,158    $ 1,159    $ 23,203   $ 2,920    $    5    $ 32,567
                          ============================= ===========================================================================
Income (loss) from
  operations              $ (409)   $ (267)   $  (676)   $ (1,582)  $   (393)   $  (393)   $    967   $  (137)   $  (57)   $ (2,271)
Gain (loss) on disposal     (306)       --       (306)     (1,224)      (784)       299      47,800      (840)     (445)     44,500
                          ---------------------------------------------------------------------------------------------------------
Income (loss) from
  disposed operations     $ (715)   $ (267)   $  (982)   $ (2,806)  $ (1,177)   $   (94)   $ 48,767   $  (977)   $ (502)   $ 42,229
                          ============================= ===========================================================================
</TABLE>


<TABLE>
<CAPTION>
                                                                 SIX MONTHS ENDED JUNE 30, 2001
                          ---------------------------------------------------------------------------------------------------------
                                             EXTRUSION
                                     BPA      SEGMENT        BPA                                                  FORTE &
                            AEG   EXTRUSION  SUB-TOTAL   RESIDENTIAL   TM         AGI       EAGLE       TGI        EWDC    TOTAL
                          ----------------------------- ---------------------------------------------------------------------------

<S>                       <C>        <C>     <C>        <C>         <C>        <C>        <C>        <C>        <C>       <C>
Net Sales                 $ 6,442    $ 778   $ 7,220    $ 18,247    $ 5,580    $ 3,400    $ 39,451   $ 5,580    $  329    $ 79,807
                          ============================= ===========================================================================

Income (loss) from
  operations              $  (952)   $ 120   $  (832)   $   (621)   $  (120)   $  (200)   $  3,896   $   (73)   $ (106)   $  1,944
Gain (loss) on disposal        --       --        --          --         --         --          --        --        --          --
                          ----------------------------- ---------------------------------------------------------------------------
Income (loss) from
  disposed operations     $  (952)   $ 120   $  (832)   $   (621)   $  (120)   $  (200)   $  3,896   $   (73)   $ (106)   $  1,944
                          ============================= ===========================================================================
</TABLE>

The assets and liabilities of AEG, BPA, TM, AGI, Eagle, TGI, EWDC, Forte, AWS,
BBP, and Danvid which were sold or are being sold are classified as assets held
for sale and liabilities held for sale, respectively, in the accompanying
consolidated balance sheets. As part of the agreement on the sale of Taylor
Building Products, Inc. in December 1999, the Company retained the real property
which has a book value of $1.3 million at June 30, 2002 and December 31, 2001.
This property is also classified as held for sale at June 30, 2002 and December
31, 2001. The buyer was required to purchase the property within a period not to
exceed nineteen months from the closing date, provided certain conditions were
met. The obligation of the buyer to purchase the real property is currently
being contested.

A summary of the assets and liabilities held for sale is as follows (in
thousands):

<TABLE>
<CAPTION>
                                                                   JUNE 30, 2002
                           ----------------------------------------------------------------------------------------
                                                           FORTE &
                             TAYLOR     AEG       EAGLE     EWDC      TGI       AWS       BBP      DANVID    TOTAL
                           ----------------------------------------------------------------------------------------

<S>                         <C>       <C>        <C>      <C>       <C>       <C>       <C>       <C>       <C>
Accounts receivable - net   $    --   $    --    $   --   $    --   $   732   $ 2,663   $ 1,956   $ 6,273   $11,624
Inventories                      --        --        --        --       784     2,694     2,287     1,768     7,533
Property and equipment        1,325     1,278       725       360       448     9,846     5,019     1,689    20,690
Other                            --        --        --        --        18       139        16     1,224     1,397
                           ----------------------------------------------------------------------------------------

ASSETS HELD FOR SALE        $ 1,325   $ 1,278    $  725   $   360   $ 1,982   $15,342   $ 9,278   $10,954   $41,244
                           ========================================================================================

Accounts payable - trade    $    --   $    --    $   --   $    --   $   296   $ 1,343   $   985   $ 1,407   $ 4,031
Accrued expenses                 --        --        --        --       204     1,961     1,172     4,025     7,362
                           ----------------------------------------------------------------------------------------

LIABILITIES HELD FOR SALE   $    --   $    --    $   --    $   --   $   500   $ 3,304   $ 2,157   $ 5,432   $11,393
                           ========================================================================================
</TABLE>



<PAGE>


<TABLE>
<CAPTION>
                                                                         DECEMBER 31, 2001
                           ---------------------------------------------------------------------------------------------------------
                                                                                FORTE &
                            TAYLOR     AEG      BPA      TM      AGI     EAGLE    EWDC   TGI      AWS       BBP      DANVID   TOTAL
                           ---------------------------------------------------------------------------------------------------------
<S>                         <C>      <C>      <C>      <C>      <C>    <C>       <C>   <C>      <C>       <C>       <C>      <C>
Accounts receivable - net   $   --   $  718   $  200   $  300   $ --   $ 8,057   $ --  $  502   $ 1,633   $ 1,602   $ 3,195  $16,207
Inventories                     --    1,141    3,391       39    128     6,730     --     765     1,998     2,617     1,533   18,342
Property and equipment       1,357    1,215      211      813    456     5,614    823   1,251    10,318     5,178     1,838   29,074
Cost in excess of net
   assets acquired              --       --       --       --     --     2,036     --      --        --     1,747     6,923   10,706
Other                           --       --       55       --     29       648     --      --       160        29     1,372    2,293
                           ---------------------------------------------------------------------------------------------------------

ASSETS HELD FOR SALE        $1,357   $3,074   $3,857   $1,152   $613   $23,085   $823  $2,518   $14,106   $11,173   $14,861  $76,622
                           =========================================================================================================

Accounts payable - trade    $   --   $  203   $1,625   $  430   $191   $ 2,017   $ --  $  142   $   902       636   $ 1,003  $ 7,149
Accrued expenses                --      182      969      687    119     6,562     --     224     1,783       725     3,654   14,905
Capital lease obligations       --       --       --       --     --       283     --      --        --        --        --      283
                           ---------------------------------------------------------------------------------------------------------

LIABILITIES HELD FOR SALE   $   --   $  385   $2,594   $1,117   $310   $ 8,862   $ --  $  366   $ 2,685   $ 1,361   $ 4,657  $22,337
                           =========================================================================================================
</TABLE>


4. COST IN EXCESS OF NET ASSETS ACQUIRED (GOODWILL)

On January 1, 2002 the Company adopted the provisions of SFAS 142, "Goodwill and
Other Intangible Assets", which requires that goodwill no longer be amortized to
earnings, but instead be reviewed for impairment. The Company ceased
amortization of goodwill on January 1, 2002 and reviews goodwill for impairment
at least annually.

In conjunction with the adoption of SFAS 142, the Company reviewed goodwill
(classified within "Assets Held for Sale" at December 31, 2001) for impairment
at June 30, 2002. This review indicated that the implied fair value of the
Company's goodwill, based on projected undiscounted cash flows, is $0;
therefore, the Company recorded an impairment charge of $8.7 million at June 30,
2002.
The Company recorded amortization expense related to goodwill of $30,000 and
$203,000 during the three month and six month periods ended June 30, 2001,
respectively. No amortization expense was recorded during 2002.

5. COMPREHENSIVE INCOME

Comprehensive income is defined to include all changes in equity except those
resulting from investments by owners and distributions to owners. For the three
months and six months ended June 30, 2002 and 2001, comprehensive income for the
Company did not differ from net income.

6. INCOME TAXES

The Company established a full valuation allowance on its income tax benefit for
the three and six months ended June 30, 2002 and 2001.



<PAGE>



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

VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11

On December 18, 2000, American Architectural Products Corporation (the Company)
and its subsidiaries filed for voluntary bankruptcy protection under Chapter 11
of the United States Bankruptcy Code in the United States Bankruptcy Court in
the Northern District of Ohio (the Bankruptcy Court). The Company is presently
operating its businesses as a debtor-in-possession under Chapter 11 and is
subject to the jurisdiction and supervision of the Bankruptcy Court. In Chapter
11 cases, substantially all liabilities as of the date of the filing of the
petition for reorganization are subject to settlement under a plan of
reorganization to be voted upon by the Company's impaired creditors and
stockholders and confirmed by the Bankruptcy Court. The ultimate amount and
settlement terms for such liabilities are subject to a plan of reorganization
and, accordingly, are not presently determinable. In addition, on December 18,
2000, the Bankruptcy Court issued an order authorizing the Company to pay
certain pre-petition claims of essential vendors and suppliers. Accordingly,
these amounts have been paid or are included in the appropriate liability
captions on the consolidated balance sheets.

An unsecured creditors' committee has been appointed by the Bankruptcy Court.
The official committee and legal representatives are the primary entities with
which the Company is negotiating the terms of a plan of reorganization. The
Company has requested the Bankruptcy Court to approve an extension to October
19, 2002, during which the Company has the exclusive right to file a
reorganization plan.

The consolidated financial statements of the Company and its subsidiaries were
prepared on the going concern basis, which contemplates continuity of
operations, realization of assets and liquidation of liabilities in the ordinary
course of business. However, during the years ended December 31, 2000, 1999 and
1998, the Company incurred losses of $41.9 million, $47.1 million and $8.8
million, respectively. Further, the Company's ongoing debt service obligations
included semi-annual interest payments of approximately $7.3 million, due each
June 1 and December 1 through December 31, 2007. The indenture governing the
Notes provides that an "Event of Default" includes the default in any payment of
interest on the Notes when due, continued for 30 days. The Company did not have
sufficient liquidity to make the June 1 or December 1, 2000 interest payments.
Accordingly, the Company was in default of the indenture. Furthermore, the
Company was in violation of certain of its covenants under the line of credit
facility at December 31, 1999 but obtained waivers for those violations. These
events, among other things, led to the Chapter 11 filings; therefore, the
realization of assets and liquidation of liabilities is subject to significant
uncertainty.

In the Chapter 11 proceedings (subject, in certain circumstances, to Bankruptcy
Court approval), the debtors may sell or otherwise dispose of assets, and
liquidate or settle liabilities, for amounts other than those reflected in the
consolidated financial statements. The amounts reported in the consolidated
financial statements do not give effect to any adjustments to the carrying value
of assets (except for the write-down of goodwill) or amounts of liabilities that
might result as a consequence of actions taken pursuant to a plan of
reorganization, which adjustments could be material. The continuation of the
Company as a going concern is contingent upon, among other factors, the ability
of the debtors to (1) formulate and file a plan which will gain the approval of
the creditors, shareholders and other parties in interest and confirmation of
the Bankruptcy Court; (2) maintain debtor-in-possession financing; (3) achieve
profitable operations; (4) obtain adequate shipments of merchandise from
suppliers at acceptable credit terms; and (5) obtain post reorganization
financing. There can be no assurances that the above conditions can be met.

CRITICAL ACCOUNTING POLICIES

The consolidated financial statements have been prepared in accordance with
generally accepted accounting principles which require the Company to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the consolidated financial statements and revenues
and expenses during the periods reported. Actual results could differ from those
estimates. The Company's significant accounting policies are described in Note 1
of the Consolidated Financial Statements included in the 2001 Annual Report. The
Company believes the following are the critical accounting policies which could
have the most significant effect on the Company's reported results and require
the most difficult, subjective or complex judgements by management. Unless
otherwise noted, the Company has not made any changes in estimates or
assumptions since December 31, 2001 that had a significant effect on the
reported amounts.

Discontinued Operations
The Company elected to adopt the provisions of the Financial Accounting
Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No.
144, Accounting for the Impairment of or Disposal of Long-Lived Assets issued in
August 2001. As of June

<PAGE>

30, 2002, all of the Company's remaining operations are being marketed for sale.
The assets and post-petition liabilities of these businesses are classified as
being held for sale in the accompanying balance sheet. The Statements of
Operations reflect the sales, cost of sales, selling, general and administrative
costs and other expenses of these remaining operations and, together with the
results of operations of businesses either sold or under agreement to sell prior
to June 30, 2002 (classified as disposed operations), are classified as
discontinued operations.

Accounting for Contingencies
The Company accrues for contingencies in accordance with SFAS No. 5, "Accounting
for Contingencies," or when it is probable that a liability or loss has been
incurred and the amount can be reasonably estimated. Contingencies by their
nature relate to uncertainties that require our exercise of judgment both in
assessing whether or not a liability or loss has been incurred and estimating
any amount of potential loss. The most important contingencies affecting the
Company's financial statements include the establishment and assessment of the
allowance for doubtful accounts, excess and obsolete inventory reserves, product
warranty reserves and litigation accruals.

Impairment of Long-Lived Assets
The Company evaluates the recoverability of the carrying amount of long-lived
assets whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be fully recoverable. The Company evaluates the
recoverability of goodwill annually or more frequently if events or
circumstances indicate that an asset might be impaired. The Company uses
judgment when applying the impairment rules to determine when an impairment test
is necessary. Factors the Company considers which could trigger an impairment
review include significant underperformance relative to historical operating
results or forecasted operating results, a significant decrease in the market
value of an asset, a significant change in the extent or manner in which an
asset is used, and significant negative industry or economic trends.

Restructuring Activities
The Company accrues the cost of restructuring activities in accordance with
Emerging Issues Task Force Issue 94-3, "Liability Recognition for Certain
Employee Termination Benefits and Other Costs to Exit an Activity (including
Certain Costs Incurred in a Restructuring)," depending upon the facts and
circumstances surrounding the situation. Management exercises judgment in
estimating the total costs of each of these activities. As the Company
implements restructuring activities, the actual costs may differ from the
estimated costs due to changes in the facts and circumstances that were not
foreseen at the time of the initial assessment.

Accounting Change
On January 1, 2002 the Company adopted the provisions of SFAS 142, "Goodwill and
Other Intangible Assets", which requires that goodwill no longer be amortized to
earnings, but instead be reviewed for impairment. The Company ceased
amortization of goodwill on January 1, 2002 and reviewed goodwill for impairment
in June 2002 at which time it was all written off.

New Accounting Standards
In April 2002, SFAS No. 145, "Rescission of FASB Statements No. 4, 44 and 64,
Amendment of FASB Statement No. 13, and Technical Corrections," was issued. The
Statement updates, clarifies and simplifies existing accounting pronouncements.
While the technical corrections to existing pronouncements are not substantive
in nature, in some instances, they may change accounting practice. The
provisions of this standard must be applied for financial statements issued on
or after May 15, 2002, with early application encouraged. Application of the
standard has no material effect on the Company's financial position or results
of operations.

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities". This statement addresses the requirements for
recognition of a liability for a cost associated with an exit or disposal
activity. The provisions of this statement are effective for exit or disposal
activities that are initiated after December 31, 2002.


DISCONTINUED OPERATIONS

On December 16, 1999, the Board of Directors of the Company approved a plan to
abandon its commercial business segment, conducted through its wholly-owned
subsidiary, Forte. The Company discontinued manufacturing operations at Forte in
May 2000. In April 2002, the Company agreed to sell the remaining property for
approximately $375,000 less certain selling costs provided certain conditions
are met and subject to Bankruptcy Court approval.

<PAGE>

In January 2001, the Company announced the discontinuance of its EWDC
operations. The Company substantially completed its plan to exit this business
in December 2001.

In December 2001, the Company agreed to sell certain assets of Weather-Seal's
aluminum extrusion operations (the Aluminum Extrusion Group or AEG) for $1.5
million cash. The Company completed this sale on January 31, 2002. Also, in
December 2001, the Company entered into an agreement to sell certain assets of
the Binnings Pan American (BPA) and TM Window and Door (TM) divisions of
Binnings for $500,000 cash, a $1.7 million note receivable and the assumption of
certain liabilities. This transaction closed February 15, 2002. AEG and a
portion of Pan Am comprised the Company's extrusion segment. Extrusion products
consist of aluminum extrusions used primarily in the fenestration products
industry. These businesses supplied a portion of the raw materials used in the
manufacture of windows by the Company. The consummation of these transactions
completes the Company's exit from the extrusion segment.

In February 2002, the Company signed an agreement to sell substantially all of
the assets of American Glassmith (AGI) for $350,000 cash and the assumption of
certain post-petition liabilities. This sale was completed on March 22, 2002.

On May 6, 2002, the Company sold ETC's Eagle Window and Door, Inc. division and
its subsidiary, Eagle Service Company (collectively, "Eagle"), for approximately
$63.5 million and recognized a $47.8 million gain on disposal at that time.

In July 2002, the Company signed an agreement to sell substantially all of the
assets of Thermetic (TGI) for $1.3 million and the assumption of certain
post-petition liabilities, subject to a working capital adjustment. The
agreement requires Bankruptcy Court approval. The Company expects to close this
transaction during the third quarter of 2002. The Company recorded an impairment
charge of $840,000 during the first quarter of 2002 based on the expected
proceeds from the sale. This charge is recognized as a loss on disposal.

As of June 30, 2002, all of the Company's remaining operations are being
marketed for sale. The assets and post-petition liabilities of these businesses
are classified as being held for sale in the accompanying balance sheet. The
Statement of Operations reflects the sales, cost of sales, selling, general and
administrative costs and other expenses of these remaining operations and,
together with the results of operations of businesses either sold or under
agreement to sell prior to June 30, 2002 (classified as disposed operations),
are classified as discontinued operations. The following discussion and analysis
refer only to the operations of the Company not classified as disposed
operations.


RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED JUNE 30, 2002 AND 2001

DISCONTINUED OPERATIONS
Net Sales. Net sales for the three months ended June 30, 2002 were $29.4 million
as compared with $25.9 million for the three months ended June 30, 2001. The
increase of $3.5 million results primarily from increases in sales volume at the
Company's Texas residential window manufacturer, Danvid Window Company (Danvid).

Gross Profit. Gross profit increased $1.2 million to $5.6 million for the three
months ended June 30, 2002 from $4.4 million for the three months ended June 30,
2001. $0.5 million of this increase is a result of increased sales volumes at
the Company's North Carolina and Texas facilities. The remaining $0.7 million
increase is due to improved margins at the Company's Weather-Seal operations as
a result of the shutdown of its Ottawa facility in April 2001. The gross margin
for the three months ended June 30, 2002 was 18.9% compared to 17.2% for the
three months ended June 30, 2001.

Selling, General and Administrative Expenses. Selling, general and
administrative expenses for the three months ended June 30, 2002 were $3.8
million compared to $3.9 million for the comparable period in 2001. The decrease
in selling, general and administrative expenses of $0.1 million is due to
general cost containment efforts at all operations.

Impairment Charge. In conjunction with the adoption of SFAS 142, the Company
reviewed goodwill (classified within "Assets Held for Sale" at December 31,
2001) for impairment at June 30, 2002. This review indicated that the implied
fair value of the Company's goodwill, based on projected undiscounted cash
flows, is $0; therefore, the Company recorded an impairment charge of $8.7
million at June 30, 2002.

<PAGE>

Loss before Disposed Operations. The Company had a loss before disposed
operations for the three months ended June 30, 2002 of $6.9 million, compared to
income of $0.5 million for the three months ended June 30, 2001. The loss was
due to the impairment charge recorded during the three months ended June 30,
2002 which more than offset the improved gross profit realized during the second
quarter of 2002.

CONTINUING OPERATIONS
Interest Expense. Interest expense decreased from $0.5 million for the three
months ended June 30, 2001 to $0.1 million for the three months ended June 30,
2002. During May 2002, the Company repaid the outstanding balance on its DIP
facility with a portion of the proceeds from the Eagle sale; therefore, the
Company had outstanding interest-bearing obligations for a shorter period during
the second quarter of 2002 than during the same period of the prior year.

Reorganization Costs. Reorganization costs decreased from $2.4 million for the
three months ended June 30, 2001 to $0.7 million during the same period in 2002.
During the second quarter of 2001, the Company recognized approximately $1.8
million of costs associated with the closure of its Ottawa, Ohio facility.

Income Taxes. The Company established a full valuation allowance on its income
tax benefit recorded for the three months ended June 30, 2002 and 2001.


COMPARISON OF SIX MONTHS ENDED JUNE 30, 2002 AND 2001

DISCONTINUED OPERATIONS
Net Sales. Net sales for the six months ended June 30, 2002 were $51.0 million
as compared with $45.8 million for the six months ended June 30, 2001. The
increase of $5.2 million results from sales volume increases primarily at the
Company's Texas operations.

Gross Profit. Gross profit increased $2.3 million to $8.9 million for the six
months ended June 30, 2002 from $6.6 million for the six months ended June 30,
2001. This increase is due to the increased volumes at the Company's Texas
operations and improvements realized by Weather-Seal as a result of the April
2001 Ottawa, Ohio plant shutdown. The gross margin for the six months ended June
30, 2002 was 17.5% compared to 14.4% for the six months ended June 30, 2001.

Selling, General and Administrative Expenses. Selling, general and
administrative expenses for the six months ended June 30, 2002 were $7.4 million
compared to $7.6 million for the comparable period in 2001. The Company's
selling costs for the six months ended June 30, 2002 were $0.3 million higher
than during the same period in 2001 related to increased sales. This was offset
by a $0.5 million reduction in General and Administrative costs due to general
cost containment efforts at all of the Company's operations.

Impairment Charge. In conjunction with the adoption of SFAS 142, the Company
reviewed goodwill (classified within "Assets Held for Sale" at December 31,
2001) for impairment at June 30, 2002. This review indicated that the implied
fair value of the Company's goodwill, based on projected undiscounted cash
flows, is $0; therefore, the Company recorded an impairment charge of $8.7
million at June 30, 2002.

Loss before Disposed Operations. The Company had a loss before disposed
operations for the six months ended June 30, 2002 of $7.2 million, compared to a
$1.0 million loss from operations for the six months ended June 30, 2001. This
increased loss from operations is primarily due to the impairment charge taken
during the second quarter of 2002 which more than offset that Company's improved
gross profit.

CONTINUING OPERATIONS
Interest Expense. Interest expense decreased from $1.0 million for the six
months ended June 30, 2001 to $0.4 million for the six months ended June 30,
2002 due to the payoff of the DIP facility in May 2002.

Income Taxes. The Company established a full valuation allowance on its income
tax benefit recorded for the six months ended June 30, 2002 and 2001.

LIQUIDITY AND CAPITAL RESOURCES

The Company's principal liquidity requirements are for debt service requirements
under the 1997 $125 million, 11 3/4% Senior Notes (Notes), the note issued in
connection with the Weather-Seal acquisition, the revolving credit facility and
for working capital needs

<PAGE>

and capital expenditures. The Company's annual principal and interest debt
service requirements, including capital lease obligations, remain uncertain
until a plan of reorganization is filed and approved by the Bankruptcy Court.

Cash used in operating activities before discontinued operations was $4.2
million and $6.7 million for the six months ended June 30, 2002 and 2001,
respectively. The decrease in cash used in operations for 2002 since the prior
year is due to the Company no longer making payments on its pre-petition
accounts payable.

Capital expenditures for the six months ended June 30, 2002 and 2001 were $0.6
million and $0.3 million, respectively. The increase results primarily from
capital investments at all of the Company's operations. Management expects that
its capital expenditure program will continue at a sufficient level to support
the strategic and operating needs of the Company. Future capital expenditures
are expected to be funded from internally generated funds, leasing programs and
the Company's current and future credit facilities.

Net activity on the Company's line of credit resulted in a use of cash of $18.6
million during the six months ended June 30, 2002 and a source of cash of $7.5
million for the same period of 2001. The Company used a portion of the proceeds
from the sale of Eagle to repay the DIP facility in May 2002. The remaining
proceeds are invested in a money market mutual fund which is used to fund the
Company's operating requirements. The proceeds from the sale of Eagle are
included in net cash provided by investing activities of discontinued operations
in the accompanying financial statements.

SEASONALITY

The Company's business is seasonal since its primary revenues are driven by
residential construction. Inclement weather during the winter months,
particularly in the northeast and midwest regions of the United States, usually
reduces the level of building and remodeling activity in both the home
improvement and new construction markets and, accordingly, has an adverse impact
on the demand for fenestration products. Traditionally, the Company's lowest
sales levels usually occur during the first and fourth quarters. The Company
believes that its operations in the southwestern and southeastern United States
minimize the risk to the Company for potentially unusual inclement weather
conditions in the midwest and the northeast. Because a high percentage of the
Company's manufacturing overhead and operating expenses are relatively fixed
throughout the year, operating income has historically been lower in quarters
with lower sales. Working capital requirements are usually at their highest
level during the second and third quarters.

CYCLICALITY

Demand in the fenestration industry is influenced by new home construction
activity and the demand for replacement products. Trends in the housing sector
directly impact the financial performance of the Company. Accordingly, the
strength of the U.S. economy, the age of existing home stock, job growth,
consumer confidence, consumer credit, interest rates and migration of the
inter/intra U.S. population have a direct impact on the Company. Any declines in
new housing starts and/or demand for replacement products may adversely impact
the Company and there can be no assurance that any such adverse effects would
not be material.

INFLATION AND RAW MATERIAL COSTS

During the past several years, the rate of inflation has been relatively low and
has not had a significant impact on the Company's operations. However, the
Company purchases raw materials, such as aluminum, wood, vinyl and glass, that
are subject to fluctuations in price that may not reflect the general rate of
inflation, and are more closely tied to the supply of and demand for the
particular commodity. Specifically, there have been periods of significant and
rapid changes in aluminum prices, with a concurrent short-term impact on the
Company's operating margins. In some cases, generally where the increases have
been modest, the Company has been able to mitigate the effect of these price
increases over the long-term by passing them on to customers.

FORWARD-LOOKING STATEMENTS

Certain statements in this Section and elsewhere in this report are
forward-looking in nature and relate to trends and events that may affect the
Company's future financial position and operating results. Such statements are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The terms "expect," "anticipate," "intend," and "believe"
and similar words or expressions are intended to identify forward-looking
statements. These statements speak only as of the date of this report. The
statements are based on current expectations, are inherently uncertain, are
subject to risks, and should be viewed with caution. Actual results and
experience may differ materially from the forward-looking statements as a result
of many factors, including changes in economic conditions in the markets served
by the Company, increasing competition, fluctuations in raw materials and energy
prices, and other unanticipated conditions. It is not possible to foresee or
identify all such factors. The Company makes no commitment to update any
forward-looking statement or to disclose any facts, events or circumstances
after the date hereof that may affect the accuracy of any forward-looking
statement.

<PAGE>

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is subject to fluctuating interest rates that may impact, adversely
or otherwise, the results of operations and cash flows for its cash and cash
equivalents, primarily in money market mutual fund investments. The estimated
fair value of cash and cash equivalents approximates the principal amounts
reflected in the Company's balance sheets.


<PAGE>


PART II -- OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

On December 18, 2000, the Company and its subsidiaries filed for voluntary
protection under Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court in the Northern District of Ohio (the "Bankruptcy
Court"). The Company is presently operating its business as a
debtor-in-possession under Chapter 11 and is subject to the jurisdiction and
supervision of the Bankruptcy Court.

The Company and its subsidiaries are engaged in various litigation and have a
number of unresolved claims. While the amounts claimed are substantial and the
ultimate liability with respect to such litigation and claims cannot be
determined at this time, management believes that such liability, to the extent
not provided for through insurance or otherwise, is not likely to have a
material impact on the financial condition or the results of operations of the
Company. However, all such claims arising prior to December 18, 2000 must be
resolved through confirmation of the Company's plan of reorganization as such
plan may be approved by the Bankruptcy Court.

Item 2.  Changes in Securities and Use of Proceeds

Not Applicable

Item 3.  DEFAULTS UPON SENIOR SECURITIES

See Note 2 to the Consolidated Financial Statements.

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

Not Applicable

Item 5.  OTHER INFORMATION

Not Applicable

Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits

    Exhibit 99.1 - Certification pursuant to Section 906 of the Sarbanes-Oxley
    Act of 2002.

(b) Reports on Form 8-K

    During the second quarter of 2002, the company filed the following current
reports on Form 8-K:

    June 6, 2002 under Item 2. Acquisition or disposition of assets










<PAGE>


                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

AMERICAN ARCHITECTURAL PRODUCTS CORPORATION

Date: August 21, 2002                             /s/ Joseph Dominijanni
                                                  --------------------------
                                                  Joseph Dominijanni
                                                  Chief Executive Officer


                                                  /s/ Douglas J. Thomas
                                                  --------------------------
                                                  Douglas J. Thomas
                                                  Chief Financial Officer