<PAGE>

                                     FORM 10-Q SB
                                           

                          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     SEPTEMBER 30, 1996           
                                   -------------------------------

                                          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           0-20947         
                                        ------------------------- 

                                  ON-SITE SOURCING, INC     
               (Exact name of registrant as specified in its charter)
                                           
            DELAWARE                                   54-1648470
   ------------------------------             ---------------------------
  (State or other jurisdiction of                      (IRS Employer
   incorporation or organization)                 Identification Number)

               1111 N. 19TH  STREET, SUITE 404, ARLINGTON, VA 22209
              ------------------------------------------------------
                (Address of principal executive offices) (Zip Code)
                                           
     Registrant's telephone number, including area code  (703) 276-1123
                                                        -----------------
                                           
   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 September 30, 1996.

     COMMON STOCK 0.01 PAR VALUE                     NUMBER OF SHARES
     ---------------------------                     ----------------
            NO CLASS                                     4,787,355

   PREFERRED STOCK 0.01 PAR VALUE
   ------------------------------
           NO CLASS                                         NONE


<PAGE>

                            ON-SITE SOURCING,INC.

                                    INDEX





PART I.        FINANCIAL INFORMATION.                               Page No.

               Item 1.  Financial Statements
               
               Balance sheets - 
                 September 30, 1996 and December 31, 1995               3

               Statements of Earnings -
                 three and nine months ended September 30, 1996 
                   and 1995                                             4

               Statements of Stockholders Equity
                  nine months ended September 30, 1996 and 1995         5

               Statements of Cash Flows -
                 nine months ended September 30, 1996 and 1995          6

               Notes to financial statements                         7-11

               Item 2.  Management's Discussion and Analysis of 
                           Financial Condition and 
                           Results of Operations.                   12-14


PART II.       OTHER INFORMATION   

               SIGNATURES                                              15

               Item 6.  Exhibit 10(a).  Agreement dated September 23, 1996
                        between the Company and Joseph Sciacca

                                   Page 2 of 15

<PAGE>
                       ON-SITE SOURCING, INC.
                          BALANCE SHEETS

<TABLE>
<CAPTION>
        ASSETS
                                    SEPTEMBER 30,      DECEMBER 31,
                                       1996                1995
                                     (UNAUDITED)         (AUDITED)
                                    -------------      ------------
<S>                                 <C>                <C>
Current Assets
Cash and cash equivalents            $  3,784,883     $     38,116
Accounts Receivable, Net                2,136,793          809,927
Prepaid supplies                          213,245           54,407
                                     ------------        ---------
Total Current Assets                    6,134,921          902,450

Fixed Assets, net                       1,713,667          500,056
Other Assets                               50,980           75,529
                                     ------------        ---------
                                     $  7,899,568     $  1,478,035
                                     ------------        ---------
                                     ------------        ---------


        LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts payable - trade             $    563,829     $    506,695
Accrued and other liabilities             268,514          148,693
Line of credit and other borrowings             -          260,000
Current portion of long-term debt          72,243           81,954
Deferred Taxes                             93,400                -
                                     ------------        ---------
Total Current Liabilities                 997,986          997,342

Long-term Debt, net of 
  current portion                         353,118          125,384

Deferred Rent                              98,772           83,626

Commitments and Contingencies                   -                -

Stockholders' Equity
Common stock, $.01 par value, 
  20,000,000 shares authorized,
  4,787,355 and  2,187,000 shares 
  issued and outstanding                   47,874           21,870
Preferred stock, $.01 par value, 
  1,000,000 shares authorized,
  no shares issued
  and outstanding                               -                -
Additional paid-in capital              6,354,501          488,140
Accounts and notes receivable-
  shareholders                            (50,400)               -
Retained Earnings (Deficit)                97,717         (238,327)
                                     ------------        ---------
                                        6,449,692          271,683
                                     ------------        ---------
                                     $  7,899,568     $  1,478,035
                                     ------------        ---------
                                     ------------        ---------
</TABLE>


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

                               Page 3 of 15

<PAGE>

                               ON-SITE SOURCING, INC.
                               STATEMENTS OF EARNINGS
                                     (UNAUDITED)

<TABLE>
<CAPTION>
                                        NINE MONTHS ENDED             THREE MONTHS ENDED                                          
                                           SEPTEMBER 30,                  SEPTEMBER 30,     
                                      1996            1995            1996          1995
                                -------------    ------------     -----------   ------------
<S>                              <C>             <C>             <C>            <C>

Revenue                          $  6,368,487    $  3,534,424    $  2,641,926   $  1,282,023

    Cost of sales                   4,616,899       2,749,899       1,822,890      1,029,878
                                -------------    ------------     -----------   ------------
    Operating Margin                1,751,588         784,525         819,036        252,145

    Selling and shipping              663,143         263,742         354,273        112,416
    Administration                    653,757         388,580         267,172        142,167
                                -------------    ------------     -----------   ------------
                                    1,316,900         652,322         621,445        254,583
                                -------------    ------------     -----------   ------------

Earnings from Operations              434,688         132,203         197,591         (2,438)

Other Income (Expense)
    Other Income                       62,394               -          40,921              -
    Other expense, 
     primarily interest               (64,138)        (80,804)        (14,596)       (25,678)
                                -------------    ------------     -----------   ------------

Earnings Before Income  Taxes         432,944          51,399         223,916        (28,116) 
Income Taxes                           96,900               -          68,400              -
                                -------------    ------------     -----------   ------------

Net Earnings                     $    336,044    $     51,399    $    155,516   $    (28,116)
                                -------------    ------------     -----------   ------------
                                -------------    ------------     -----------   ------------

Net earnings per share           $       0.10    $       0.02    $       0.03   $      (0.01)
                                -------------    ------------     -----------   ------------

Average number of Common Shares 
  and Common Share Equivalents 
  outstanding during the period     3,402,181       2,648,377       5,150,694      2,648,377
                                -------------    ------------     -----------   ------------
                                -------------    ------------     -----------   ------------
</TABLE>


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

                                    Page 4 of 15

<PAGE>

                                   ON-SITE SOURCING, INC.
                             STATEMENTS OF STOCKHOLDERS' EQUITY
                                        (UNAUDITED)

<TABLE>
<CAPTION>
                                     For the nine months ended September 30, 1996
                     ---------------------------------------------------------------------------------
                                                Additional      Accounts       Retained
                         Common      Common      Paid-In        and Notes      Earnings
                         Shares      Stock       Capital        Receivable     (Deficit)      Total
                     -----------  ---------    ----------    -------------    -----------   ----------
<S>                    <C>        <C>          <C>              <C>           <C>           <C>

Balance at 
  January 1, 1996      2,187,000  $  21,870    $  488,140    $       -         $(238,327)   $  271,683
Sale of Common Stock   2,600,355     26,004     5,866,361                                    5,892,365
Accounts and Notes                                                                                   -
  Receivable-
   shareholders                                                   (115,000)                   (115,000)
  Payments received                                                 64,600                      64,600
Net Earnings for the 
  Period                                                                         336,044       336,044
                     -----------  ---------    ----------    -------------    -----------   ----------
Balance at 
  September 30, 1996   4,787,355  $  47,874    $6,354,501    $    (50,400)     $  97,717    $6,449,692
                     -----------  ---------    ----------    -------------    -----------   ----------
                     -----------  ---------    ----------    -------------    -----------   ----------
</TABLE>


<TABLE>
<CAPTION>
                                           For the nine months ended September 30, 1995
                     --------------------------------------------------------------------------------
                                                Additional      Accounts       Retained
                         Common      Common      Paid-In        and Notes      Earnings
                         Shares      Stock       Capital        Receivable     (Deficit)      Total
                     -----------  ---------    ----------    -------------    -----------   ----------
<S>                  <C>          <C>          <C>           <C>              <C>           <C>

Balance at 
  January 1, 1995     2,187,000   $  21,870    $  488,140    $      -        $(313,955)     $  196,055

Net Earnings for 
  the Period                                                                     51,399         51,399
                     -----------  ---------    ----------    -------------    -----------   ----------
Balance at 
  September 30, 1995  2,187,000   $  21,870    $  488,140    $      -         $(262,556)    $  247,454
                     -----------  ---------    ----------    -------------    -----------   ----------
                     -----------  ---------    ----------    -------------    -----------   ----------
</TABLE>

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

                                         Page 5 of 15   


<PAGE>

                                    ON-SITE SOURCING, INC.
                                   STATEMENTS OF CASH FLOWS
                                        (UNAUDITED)

<TABLE>
<CAPTION>
                                              SEPTEMBER 30,    SEPTEMBER 30,
                                                  1996              1995
                                              ------------    --------------
<S>                                           <C>              <C>
Increase (Decrease) in Cash and 
  Cash Equivalents
Cash Flows from Operating Activities
         Net Earnings                          $  336,044        $  51,399
                                              -----------      -----------
    Adjustments to reconcile net earnings 
     to net cash from Operations
       Depreciation                               158,358           74,754
       Disposal of fixed assets                    (1,413)               -
       Changes in assets and liabilities
          Increase in accounts receivable      (1,326,866)        (229,036)
          Increase in prepaid supplies           (158,838)         (34,342)
          (Increase) decrease in other assets      24,549          (37,220)
          Increase in accounts payable             57,134          293,683
          Increase in accrued liabilities         119,821           79,854
          Increase in deferred taxes               93,400                -
          Increase in deferred rent                15,146            7,822
                                              -----------      -----------
Total Adjustments                              (1,018,709)         155,515
                                              -----------      -----------
Net Cash (Used in) Provided by 
 Operating Activities                            (682,665)         206,914
                                              -----------      -----------
Cash Flows Used in Investing Activities
    Capital expenditures                       (1,370,556)        (129,239)
    Purchase of CRC, net                                -           (9,161)
                                              -----------      -----------
Net Cash used in investing activities          (1,370,556)        (138,400)
                                              -----------      -----------
Cash Flows from Financing Activities
    Proceeds from sale of common stock          5,841,965                -
    Borrowings under long-term debt 
     agreements                                   751,870                -
    Payments under long-term debt 
     agreements                                  (283,847)         (57,619)
    Payments under short-term debt
     agreements                                  (250,000)               -
    Net (payments) borrowings under 
     line of credit                              (260,000)          70,034
                                              -----------      -----------
Net Cash Provided by Financing Activities       5,799,988           12,415
                                              -----------      -----------
Net Increase in Cash                            3,746,767           80,929
Cash and cash equivalents, 
  Beginning of Period                              38,116            7,965
                                              -----------      -----------
Cash and cash equivalents, End of Period       $3,784,883        $  88,894
                                              -----------      -----------
                                              -----------      -----------
</TABLE>

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

                                        Page 6 of 15



<PAGE>

ON-SITE SOURCING, INC.

Notes to Interim Financial Statements
(unaudited)
------------------------------------------------------------------------------

NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
------------------------------------------------------------------------------

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


    The accompanying unaudited condensed financial statements have been
    prepared pursuant to the rules and regulations of the Securities and
    Exchange Commission.  Certain information and note disclosures normally
    included in the annual financial statements prepared in accordance with
    generally accepted accounting principles have been condensed or omitted
    pursuant to those rules and regulations, although the Company believes that
    the disclosures made are adequate to make the information presented not
    misleading.

    In the opinion of management, the accompanying condensed financial
    statements reflect all necessary adjustments and reclassifications that are
    necessary for fair presentation for the periods presented. It is suggested
    that these condensed financial statements be read in conjunction with the
    financial statements and the notes filed in the SB-2.  The results of
    operations for the nine month period ended September 30, 1996, are not
    necessarily indicative of the results to be expected for the full year.

    REVENUE RECOGNITION

    Revenue from facilities management is recognized based on monthly fixed
    fees and, in certain cases, variable per copy fees, as contained in
    facilities management agreements. Revenue from reprographic services is
    recognized on a per copy basis upon completion of the services. Revenue
    from the sale of refurbished copiers is recognized when the copiers are
    shipped and transfer of title occurs.

    FIXED ASSETS

    Fixed assets consists of copy center equipment, office furniture and
    fixtures, and delivery equipment.  Depreciation is provided for in
    sufficient amounts to relate the cost of depreciable assets to operations
    over their estimated service lives, ranging from three to seven years. The
    straight line method is followed for financial reporting purposes.  
    Accelerated methods are used for tax purposes.  

    CAPITALIZED SOFTWARE

    The Company capitalizes certain initial development costs after
    technological feasibility has been demonstrated. Such capitalized amounts
    are amortized commencing with product introduction over  the lesser of the
    expected sales cycle or over the estimated economic life. Capitalized
    software costs are included in Other Assets and are reduced to net
    realizable value at September 30, 1996. 
                               
                                Page 7 of 15

<PAGE>

ON-SITE SOURCING, INC.

Notes to Interim Financial Statements--Continued
(unaudited)
------------------------------------------------------------------------------

NINE MONTHS ENDED  SEPTEMBER 30, 1996 AND 1995
------------------------------------------------------------------------------

    INCOME TAXES
               
    The provision for income taxes presented in the statements of earnings is
    based upon the estimated effective tax rate for the year, and is largely
    determined by management's estimate as of the interim date of projected
    taxable income for the entire fiscal year.
               
    EARNINGS PER COMMON SHARE
               
    The Company's common stock was split 100-for-one and 18-for-one in March
    1995 and February 1996, respectively.  All earnings per share amounts in
    the financial statements have been restated to give effect to the stock
    splits.
               
    Earnings per common share is based on the weighted average number of common
    shares and, if dilutive, common equivalent shares outstanding during each
    year.  Such average shares include the weighted average number of common
    shares outstanding (3,402,181 in 1996 and 2,187,000 1995) plus the shares
    issuable upon exercise of stock options and warrants after the assumed
    repurchase of common shares with the related proceeds (454,584 in 1996 and
    1995).  Options and warrants granted, as well as certain shares issued
    during the one-year period prior to the initial public offering (see Note
    H), are treated as outstanding in calculating earnings per share for both
    periods presented.


NOTE B--CREDIT FACILITIES


    At September 30, 1996, the Company had available a $450,000 working capital
    line of credit at the bank's prime rate (8.25%) plus 1%, which is due on
    demand. The credit facility is collateralized by the assets of the Company
    and guaranteed by the Company's chairman, and the Company's president and
    his spouse.  At September 30, 1996 there were no borrowings under the
    working capital line of credit.
               
    The above note is subject to certain covenants; at various times throughout
    the period the Company was in violation of certain covenants. The banks
    have waived their rights under the default provisions through December 31,
    1996.

                                Page 8 of 15
<PAGE>

ON-SITE SOURCING, INC.

Notes to Interim Financial Statements--Continued
(unaudited)
-----------------------------------------------------------------------------

NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
-----------------------------------------------------------------------------

               
    The Company has retired all bank debt and short term borrowings with the
    proceeds of the initial public offering. 

    The Company has financed certain major equipment purchases under
    capitalized leases, with terms of sixty months. 
          
NOTE C--RELATED PARTY TRANSACTIONS


    TRANSACTIONS WITH AN OFFICER/SHAREHOLDER
               
    During the nine months ended September 30, 1996 and 1995, the Company
    recorded the following transaction with an officer/shareholder:

    -  During the nine months ended September 30, 1996, the Company incurred
       approximately $193,900 for legal services rendered by the
       officer/shareholder.  Included in the accounts payable as of September
       30, 1996, is approximately $9,000 in legal fees due to the
       officer/shareholder. 


    TRANSACTIONS WITH A SHAREHOLDER
                   
    During the nine months ended September 30, 1996 and 1995 the Company
    recorded the following transactions with a shareholder:
               
    -  During the nine months ended September 30, 1996 and 1995, the Company
       recorded revenue of approximately $343,800 and $267,000, respectively,
       for services provided to a shareholder under a facilities management
       agreement.  Included in accounts receivable as of September 30, 1996,
       is approximately $110,000 due from the shareholder. 

    -  In March 1996, the Company entered into a two-year consulting agreement
       with its underwriters/shareholder for financial and marketing services
       totaling $60,000 which was paid from the proceeds of the initial
       public offering.

                               Page 9 of 15

<PAGE>

ON-SITE SOURCING, INC.

Notes to Interim Financial Statements--Continued
(unaudited)
------------------------------------------------------------------------------

NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
------------------------------------------------------------------------------

    ACCOUNTS AND NOTES RECEIVABLE -- SHAREHOLDERS

    -  The company had a note receivable from an officer/director for $89,900
       in connection with the exercise of stock options.  The balance of the
       note at September 30, 1996 was $50,400.
                    
NOTE D--COMMITMENTS

    The Company has annual rental and lease commitments with a term of one year
    or more.  Effective January 1, 1997, the Company will expand its Arlington,
    Virginia, production facility to approximately 31,000 square feet, and has
    executed a new lease which will supercede its existing  lease agreement. 
    The lease is for a five year period expiring on  December 31, 2002, and the
    annual minimum lease expense is $450,000 per year.  
               
    The Company has entered into a lease agreement to expand its operations to
    New York City.  The lease is for a period of ten years and expires on
    October 31, 2006.  The annual lease obligation giving effect for step
    increases as called for in the agreement is $139,667.

    The Company entered into a new lease obligation for its Frederick, Maryland
    location for approximately 2,500 square feet.  The lease has a term of five
    years and expires on May 31, 1999.  The annual minimum lease obligation
    under the lease is $15,000.


NOTE E--INCENTIVE STOCK OPTION PLAN

    In 1996 and in 1995, the Company adopted an incentive stock option plan,
    under which a pool of 200,000 and 510,000, shares respectively have been
    reserved.  The plans are administered and terms of option grants are
    established by the Board of Directors.  Under the terms of the plans,
    options may be granted to the Company's employees and directors to purchase
    shares of common stock.  Options become exercisable ratably over a vesting
    period as determined by the Board of Directors, and expire over terms not
    exceeding ten years from the date of grant, three months after termination
    of employment, or one year after the death or permanent disability of the
    employee.  The Board of Directors determines the option price (not less
    than fair market value) at the date of grant.  
               
    Pursuant to an employment agreement, the Company had outstanding options to
    sell 162,000 shares of common stock to an officer/director of the Company
    at an exercise price of $.56 per share.  The options, which were fully
    vested during 1994, were exercised on March 29, 1996 for $90,000.  In
    connection with the exercise of the options, the Company loaned $89,900 to
    the officer/director.  The loan bears interest at 6% per year with the
    remaining principal and interest due April 1, 1998.  The balance of the
    note on September 30,1996 was $50,400. 

                                Page 10 of 15
<PAGE>

ON-SITE SOURCING, INC.

Notes to Interim Financial Statements--Continued
(unaudited)
------------------------------------------------------------------------------

NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
------------------------------------------------------------------------------
               
    At September 30, 1996, the Company had outstanding options to sell 126,000
    shares of common stock to an officer/director at an exercise price of $1.11
    per share.  As of September 30, 1996, the options are fully vested.  The
    options expire in December 2000.
               
    The Company has outstanding employee stock options for 332,000 shares of
    common stock at exercise prices ranging from $1.11 to $3.25 per share.  As
    of September 30, 1996, 79,500 of the shares are vested with the remainder
    scheduled to vest through December 2001. The options expire at various
    times through December 2001.  The Company granted a total of 60,000
    options to its outside directors which vest quarterly over two years.  The
    fair value of options granted to outside directors are charged to expense
    as they vest.



NOTE F--PUBLIC OFFERING


    On July 9,1996 the Company completed its initial public offering, whereby
    the Company offered 960,000 units, each consisting of two shares of common
    stock, $.01 par value and one common stock purchase warrant, to the public
    at a  price of $6.25 per unit.  The warrants are redeemable by the Company
    for $.01 per warrant, upon 30 days prior written notice, provided the
    average closing bid price of the common stock for ten consecutive days
    prior to the date of the redemption notice is $7.00 or more per share.  The
    Company had also granted the underwriters an option to purchase up to
    144,000 additional units solely to cover overallotments, of which, 140,200
    were exercised on August 15, 1996.  Upon the closing of the initial public
    offering, the underwriters were granted an option to purchase up to an
    aggregate of 96,000 units at $10.00 per unit.  The options will be
    exercisable during a four-year period commencing one year from the date of
    the initial public offering. 
               
    The gross proceeds from the offering and the exercise of the underwriters
    overallotment were $6,876,250.  The net proceeds to the Company after
    deducting offering costs were $5,431,913.  In connection with the offering,
    2,200,400 shares of common stock and 1,100,200 warrants were issued.

                                Page 11 of 15 

<PAGE>

       MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
                        AND RESULTS OF OPERATIONS
                                           
                                           
On-Site Sourcing, Inc.  (the "Company") provides reprographic and facilities 
management services to law firms, non-profit organizations, accounting firms, 
financial institutions and other organizations throughout the East Coast of 
the United States.  In order to meet the highly specialized requirements of 
each client, On-Site offers a variety of customized reprographic and 
facilities management services.  The Company provides reprographic services 
24 hours per day, seven days per week including copying, binding, labeling, 
collating and indexing in support of complex document-intensive litigation as 
well as higher volume production of manuals, brochures and other materials 
for corporations and non-profit organizations.  On-Site also provides 
on-premises management of customers' support services including mailroom 
operations, facsimile transmission, records and supply room management and 
copying services. 

NINE MONTHS 1996 VS. 1995 

Revenue for the nine months ended September 30, 1996 increased 80% or 
$2,834,063 to $6,368,487 as compared to $3,534,424, recorded for the nine 
months ended September 30, 1995.  The principal reason for the increase is 
due to increased volume of work orders fulfilled through increased capacity 
at the Rosslyn, VA reprographic facility, increased sales volume at the 
Philadelphia facility and the Atlanta facility becoming fully operational.  

For the nine months ended September 30, 1996 cost of sales increased 
$1,867,000 or 68% over the same period in 1995.   Operating margins increased 
123% to $1,751,588, a $967,063 increase over the same period last year.  As a 
percent of sales, operating margins  improved from  22%  for the nine months 
ended September 30, 1995 to 27.5 % in this period. In relation to sales, 
costs of sales and related operating margins improved due to the acquisition 
of equipment previously leased, volume purchasing discounts and increased 
production per labor hour.  Every dollar in increased sales volume over last 
year contributed $.34 to the 1996 operating margins.

Selling and shipping increased by $399,401 to $663,143 over the same period 
last year. As a percent of sales, this represents an increase from 7.4% for 
the nine months ended September  30,1995 to 10.4% in the same period in 1996, 
primarily due to the addition of personnel, higher commissions associated 
with increased revenue, and expansion into new markets.

Administration expenses for the nine months ended September 30, 1996  
increased $265,177 to $653,757  over the same period last year due primarily 
to professional fees,  increases in staffing and personnel costs, and travel 
associated with the expansion into new markets.  Administration decreased 
from 10.9% to 10.2% of sales over the same period last year. 
 
                                Page 12 of 15

<PAGE>

EARNINGS FROM OPERATIONS

Earnings from operations increased  228%  or $302,485 from $132,203 to 
$434,688 over the nine months ended September 30, 1995.  The increase is due 
to increased marketing efforts, higher margins and continued expansion into 
new markets.

OTHER INCOME AND EXPENSES

Other income (expenses)  decreased  $79,060 compared to the first nine months 
of 1995 due to the purchase by the Company of equipment previously under 
capital leases obligations resulting in lower interest expense. Other income, 
primarily interest on short term treasury obligations was $62,394.  

NET EARNINGS

For the nine months ended September 30, 1996 the Company generated net 
earnings of $336,044 as compared to $51,399 for the same period last year.  
This represents an increase of $284,645 or 554%.  Earnings per share for the 
nine months ended September 30, 1996 were $.10 compared to $.02 for the nine 
months ended September 30, 1995.   Increases in earnings in 1996 as compared 
to the 1995 periods primarily result from the continuing growth of  the 
litigation support operations due to focused marketing efforts and expansion 
of our client base.

LIQUIDITY AND CAPITAL RESOURCES AT SEPTEMBER 30, 1996 AND SUBSEQUENT ACTIVITY

On July 9, 1996 the Company's registration statement was declared effective. 
Approximately $1,500,000 of the net proceeds totaling $5,431,913 were used to 
curtail its line of credit and other borrowings, bridge financing and 
accounts payable.  The Company has funded its expansion and growth by 
utilizing the proceeds of its initial public offering and long term 
financing, where appropriate, for significant capital outlays.

The Company anticipates that the net proceeds from the initial public 
offering, proceeds from the overallotment options, and cash flow from 
operations will be sufficient to meet the Company's expected cash 
requirements for the next twelve months. There can be no assurances that 
unforeseen events may not require more working capital than the Comapny has 
at its disposal. 

THREE MONTHS 1996 VS. 1995

The principal reasons for the increases in operations for the three months 
ended September 30, 1996 vs. 1995 are outlined in the discussion of the nine 
month results.  There were no material items adversely impacting the 
financial position of the Company.

Revenue for the three months ended September 30, 1996 more than doubled 
increasing 106% to $2,641,926 as compared to $1,282,023 for the three months 
ended September 30, 1995.  Cost of sales and the related operating margin 
improved to 31% based in part on increased productivity per labor hour. 

                                Page 13 of 15

<PAGE>

Earnings from operations were $197,591 as compared to a loss of  $2,438 for 
the three months ended September 30, 1995 primarily due to increased volume 
as a result of increased capacity and marketing efforts.

The Company earned $40,921 from interest on overnight investments and reduced 
its interest expense from $25,678 to $14,596 over the same period last year.

Net earnings for the three month period ended September 30, 1996 were 
$155,516 as compared to a net loss of $28,116 for the three month period  
ended September 30, 1995.   Earnings per share for the three month period 
ended September 30, 1996 were $.03 compared to a loss of $.01 for the same 
period last year.



                                Page 14 of 15

<PAGE>

Part II. Other Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                            ON-SITE SOURCING, INC.      
                                            --------------------------


Date:    NOVEMBER  1996                      By: /S/CHRISTOPHER  J.  WEILER
        ----------------                         ---------------------------
                                                  Christopher  J.  Weiler
                                                  President and 
                                                  Chief Executive Officer  


                                              By: /S/JOSEPH SCIACCA
                                                  ---------------------------
                                                  Joseph Sciacca
                                                  Vice President of Finance and
                                                  Chief Financial Officer



                               Page 15 of 15