<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   MARCH 31, 1999

                                       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 Identification Number)
   incorporation or organization)

               1111 N. 19TH STREET, SUITE 600, 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 March 31, 1998.

           COMMON STOCK 0.01 PAR VALUE                   NUMBER OF SHARES
           ---------------------------                   ----------------
               NO CLASS                                   4,824,669
           PREFERRED STOCK 0.01 PAR VALUE
           ------------------------------
               NO CLASS                                      NONE


<PAGE>


                              ON-SITE SOURCING,INC.

                                      INDEX


<TABLE>
<CAPTION>

PART I.  FINANCIAL INFORMATION.                                                   Page No.
<S>      <C>                                                                            <C>
         Item 1.  Financial Statements

         Balance sheets -
         March 31, 1999 and December 31, 1999                                           3

         Statements of Operations -
         Three months ended March 31, 1999 and 1998                                     4

         Statements of Stockholders Equity
         Three months ended March 31, 1999 and 1998                                     5

         Statements of Cash Flows -
         Three months ended March 31, 1999 and 1998                                     6

         Condensed notes to financial statements                                        7-9

         Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations.                                           10-13


PART II. OTHER INFORMATION





         SIGNATURES                                                                     13
</TABLE>



                                  Page 2 of 12


<PAGE>



                             ON-SITE SOURCING, INC.
                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                      Unaudited
                                                                       March 31,        December 31,
                                                                        1999                1998
ASSETS
                                                                  ------------------  -----------------
<S>                                                             <C>                  <C>           
CURRENT ASSETS
     Cash and cash equivalents                                  $              -     $            -
     Accounts receivable, net                                            5,618,236          5,922,027
     Prepaid supplies                                                      522,438            449,366
     Prepaid expenses                                                      196,811            136,758
                                                                        ----------         ----------
          Total current assets                                           6,337,485          6,508,151

     Property and equipment, net                                         4,272,147          4,367,996

     Other assets, net                                                      47,389             75,062
                                                                        ----------         ----------
                                                                $       10,657,021   $     10,951,209

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable - trade                                    $       1,517,292   $      2,018,248
     Line of Credit                                                        535,362            141,345
     Accrued and other liabilities                                         562,748            694,334
     Current portion of long-term debt                                     607,345            472,824
     Provision for income taxes, current                                       -                  -
                                                                        ----------         ----------
          Total current liabilities                                      3,222,748          3,326,751

Long-term debt net of current portion                                      901,050          1,169,454

Deferred rent                                                              121,911            121,911
Provision for Income taxes, net of current portion                             -                  -
Deferred taxes                                                             197,182            197,182

Commitments and contingencies                                                  -                  -

STOCKHOLDERS' EQUITY
     Common stock, $.01 par value, 20,000,000 shares authorized 
      4,824,669 and 4,824,669 shares issued and outstanding                 48,247             48,247
     Preferred stock,$.01 par value, 1,000,000 shares
       authorized, no shares issued and outstanding                             -                  -
     Subscription receivable                                               (50,400)           (50,400)
     Additional paid in capital                                          6,432,691          6,432,691
     Treasury stock  (5,000 shares of common stock at cost)                (25,000)           (25,000)
     Accumulated Earnings (Deficit)                                       (191,408)          (269,627)

                                                                        ----------         ----------
                                                                         6,214,130          6,135,911
                                                                        ----------         ----------
                                                                 $      10,657,021   $     10,951,209
                                                                        ----------         ----------
</TABLE>


                        See notes to financial statements


                                  Page 3 of 12


<PAGE>


                             ON-SITE SOURCING, INC.
                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>

                                                                    Unaudited
                                                                Three Months Ended
                                                        March 31,                  March 31,
                                                          1999                       1998
                                                        ---------                  ---------
<S>                                             <C>                            <C>          
Revenue                                         $        6,330,596             $   5,746,815
Costs and expenses                                       4,935,789                 4,985,664
                                                         ---------                 ---------
     Cost of sales                                       1,394,807                   761,151
                                                         ---------                 ---------
     Selling expense                                       495,272                   646,044
     Administrative expense                                799,713                   744,812
                                                         ---------                 ---------
                                                         1,294,985                 1,390,856
                                                         ---------                 ---------
     Earnings from operations                               99,822                  (629,705)
     Other income (expense)                                
     Other income                                           23,682                    81,811
     Other expense                                         (45,284)                  (29,452)
                                                         ---------                 ---------
                                                           (21,602)                   52,359
                                                         ---------                 ---------
Earnings (Loss) before income taxes                         78,220                  (577,346)
Income tax (benefit)expense                                    -                    (219,000)
                                                         ---------                 ---------
Net (Loss) Earnings                             $           78,220             $    (358,346)
                                                         ---------                 ---------
Basic earnings (loss) per common share          $             0.02             $       (0.07)
Diluted earnings per share                      $             0.02             $      N/A
</TABLE>


                        See notes to financial statements



                                  Page 4 of 12

<PAGE>


                             ON-SITE SOURCING, INC.
                       STATEMENTS OF STOCKHOLDERS' EQUITY
                                    Unaudited

<TABLE>
<CAPTION>

                                                      Additional                   Treasurey
                             Common         Common     Paid in     Subscriptions     Stock       Retained
                             Shares         Stock      Capital      Receivable      (COMMON)     Earnings         Total
                            ---------   ----------   ------------   ----------    ----------    ----------    ------------
<S>                         <C>         <C>          <C>            <C>           <C>           <C>           <C>         
Balance at
December 31, 1998           4,824,669   $   48,247   $  6,432,691   $  (50,400)   $  (25,000)   $ (269,627)   $  6,135,912
                            ---------   ----------   ------------   ----------    ----------    ----------    ------------

    Sale of common stock
    Net Income                    -             -              -            -                       78,220          78,220
                            ---------   ----------   ------------   ----------    ----------    ----------    ------------
Balance at
March 31, 1999              4,824,669   $   48,247   $  6,432,691   $  (50,400)   $  (25,000)   $ (191,407)   $  6,214,131
</TABLE>



<TABLE>
<CAPTION>

                                                      Additional                  Treasurey
                             Common         Common     Paid in      Subscriptions   Stock       Retained
                             Shares         Stock      Capital       Receivable    (COMMON)     Earnings         Total
                            ---------   ----------   ------------   ----------    ----------    ----------    ------------

<S>                         <C>         <C>          <C>            <C>           <C>           <C>           <C>         
Balance at                  4,802,221   $   48,022   $  6,367,379   $  (50,400)   $      -      $  727,986    $  7,092,987
December 31, 1998

    Sale of common stock      17,448           174         59,812                                                   59,986
    Net loss                                                                             -        (358,346)       (358,346)
                            ---------   ----------   ------------   ----------    ----------    ----------    ------------
Balance at
March 31, 1998              4,819,669   $   48,196   $  6,427,191   $  (50,400)   $      -      $  369,640       6,794,627
                            ---------   ----------   ------------   ----------    ----------    ----------    ------------
</TABLE>






                        See notes to financial statements


                                  Page 5 of 12

<PAGE>





                             ON-SITE SOURCING, INC.
                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                   Three Months Ended
                                                                         March 31,
                                                                 1999              1998
                                                                --------       -------- 
<S>                                                          <C>            <C>         
Cash flows from operating activities
  Net earnings (loss)                                        $    78,220    $  (358,346)
                                                                --------       -------- 
Adjustments to reconcile net earnings to net cash
  (used in) provided by operations
Depreciation and amortization                                    296,067        226,175
Changes in assets and liabilities
  (Increase) decrease in accounts receivable, net                303,791       (216,742)
  (Increase) decrease in prepaid supplies                        (73,072)       (44,132)
  (Increase) decrease in prepaid expenses                        (60,053)        63,364
  (Increase) decrease in other assets                             27,673          4,766
  Increase (decrease) in accounts payable - trade               (500,956)      (113,048)
  Increase in accrued and other liabilities                     (131,586)      (154,050)
  Increase (decrease) in provison for income taxes                  --         (185,057)
  Increase (decrease) in deferred taxes                             --          (33,943)
                                                                --------       -------- 
Total Adjustments                                               (138,135)      (452,667)
                                                                --------       -------- 
Net cash provided by (used in) operations                        (59,916)      (811,013)
                                                                --------       -------- 
Cash flows from investing activities
  Capital expenditures                                          (200,218)      (537,698)
                                                                --------       -------- 
Net cash used in investing activities                           (200,218)      (537,698)
                                                                --------       -------- 
Cash flows from financing activities
  Proceeds from sale of common stock and
     exercise of warrants                                           --           59,986
  Payments under long-term debt agreements
                                                                (133,883)      (105,505)
  Net borrowings (payments) under line of credit agreement       394,017        500,000
                                                                --------       -------- 
Net cash provided by financing activities                        260,134        454,481
                                                                --------       -------- 
NET INCREASE (DECREASE) IN
  CASH AND CASH EQUIVALENTS                                            0       (894,230)
Cash and cash equivalents, beginning                                   -      1,490,702
                                                                --------       -------- 
Cash and cash equivalents, ending                            $         0    $   596,472
                                                                --------       -------- 
</TABLE>


                        See notes to financial statements
                                      F-6



                                  Page 6 of 12


<PAGE>


ON-SITE SOURCING, INC.

Condensed Notes to Financial Statements
(unaudited)

--------------------------------------------------------------------------------

MARCH 31, 1999

--------------------------------------------------------------------------------

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 Company's Annual Report on
    Form 10-KSB. The results of operations for the three months ended March 31,
    1999 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 and imaging services is
    recognized on a per copy or image basis upon completion of the services.
    Revenue from information technology services is billed on an hourly basis.

    PROPERTY AND EQUIPMENT

    Property and equipment 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 two to ten years. The
    straight line method is followed for financial reporting purposes.
    Accelerated methods are used for tax purposes.


    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.


                                  Page 7 of 12

<PAGE>

ON-SITE SOURCING, INC.

Condensed Notes to Financial Statements--Continued
(unaudited)

--------------------------------------------------------------------------------

MARCH 31, 1999
--------------------------------------------------------------------------------



    EARNINGS PER COMMON SHARE

    Basic earnings per share is calculated using the average number of shares
    outstanding and excludes dilution. Diluted earnings per share is computed on
    the basis of the average number of shares outstanding plus the effect of
    outstanding options using the "treasury stock method". Prior year earnings
    per share have been restated to conform to this method.


NOTE B--CREDIT FACILITIES

    The Company entered into an agreement for a working capital line of credit
    with a financial institution for $2,500,000. The line of credit bears
    interest at the financial institution's prime rate or the 30 day LIBOR rate
    plus 2.25%, payable monthly. Any remaining principal balance and accrued
    interest is due at the maturity date of April 30, 1999. The line of credit
    is secured by certain assets of the Company, including accounts receivable
    and certain fixed assets. As of March 31, 1999 there were advances made
    under the line of credit of $535,362

    During 1997, the Company entered into a term note with a financial
    institution to provide $1,100,000 to refinance certain capitalized lease
    obligations. The note is payable in 48 monthly installments, bears interest
    at the rate of 9.02%, and matures on April 30, 2001. The note is
    collateralized by specific equipment and is subject to certain financial
    covenants. The balance of the term note at March 31, 1999 was $550,000


    During 1997, the Company has financed certain equipment purchases of
    approximately $361,000 with notes with terms of 36 to 48 months and interest
    rates of 5.0% to 9.7%. During 1998 the Company financed additional equipment
    purchases under similar terms. The balance of these notes at September 30,
    1998 was approximately $505,287


    The Company has financed certain equipment purchases under capitalized
    leases, with terms of sixty months.


NOTE C--RELATED PARTY TRANSACTIONS


    TRANSACTIONS WITH AN OFFICER/SHAREHOLDER

         During the three months ended March 31, 1999 and 1998, the Company
         recorded the following transaction with an officer/shareholder:


                                  Page 8 of 12

<PAGE>

         During the three months ended March 31, 1998, the Company incurred
         approximately $21,000, for legal services and recognized $6,400 in
         revenue due to the officer/shareholder. There was no related
         transactions for the three months ended March 31, 1999.


         During the first quarter of 1999 the Company revalued options to its 
         original Underwriter, M.H. Meyerson & Co., Inc. The original 
         agreement included an option to purchase 96,000 Units (Units 
         consists of two shares of common stock and one common stock warrant) 
         at an exercise price of $10.00. The units are exercisable starting 
         July 9, 1997 for a period of four years. Under the new agreement the 
         options are exercisable at a price of $3.50. All other terms remain
         unchanged.
         
    SUBSCRIPTION RECEIVABLE -- SHAREHOLDER

     The Company has a note receivable from an officer/director for $89,900 in
     connection with the exercise of stock options. The note bears interest at
     6% per year with the remaining principal and interest due April 1, 1999.
     The balance of the note at March 31, 1999 was $50,400.

NOTE D--COMMITMENTS

    The Company has annual rental and lease commitments with a term of one year
    or more for its offices and production facilities that expire at various
    times through 2006. The minimum annual rent is approximately $1,400,000

NOTE E--INCENTIVE STOCK OPTION PLANS

    In 1995 through 1998, the Company adopted incentive stock option plans,
    under which pools of 510,000, 200,000, 500,000, and 700,000 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 balance of the note on September 30, was $50,400.

    At September 30, 1998 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, 1998 the options are fully vested.
    The options expire in December 2000.

    The Company has outstanding employee stock options for 1,449,465 shares of
    common stock at exercise prices ranging from $1.11 to $3.50 per share. As of
    March 31, 1999 772,271 of the shares are vested with the remainder scheduled
    to vest through December 2003.


                                  Page 9 of 12


<PAGE>

--------------------------------------------------------------------------------
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
                           AND RESULTS OF OPERATIONS


On-Site Sourcing, Inc. (On-Site or the "Company") provides reprographic,
document management, imaging, facilities management services and information
technology services to law firms, corporations, 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 and
imaging 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. The information technology group provides a
full range of technology services to professional service organizations,
including systems design and integration, training and network management
services.

The nature of the IT Group's value-added services is expected to produce
significant revenue and increased margins in future periods. The IT Group was
formed in response to the need of law firms for new client/server applications
and connectivity, requiring IT expertise that is difficult to acquire due the
competitive nature of the industry. The competitive law firm has the need for
E-mail, integrated billing and document management services and recurring
technology upgrades that are being demanded by their clients. These are problems
that the IT Group is beginning to address for these firms.

This Form 10-QSB contains forward-looking statements which involve risks and
uncertainties. The Company's actual results may differ significantly from
results discussed in the forward-looking statements. Factors that might cause
such differences include, but are not limited to, demand for services, market
acceptance of the new IT group, impact of competitive services and pricing,
commercialization and technical difficulties, capacity constraints or
difficulties, general business and economic conditions and other risks detailed
in the Company's Annual Report, Form 10-KSB and other filings with the
Securities and Exchange Commission.

THREE MONTHS ENDING MARCH 31, 1999 AND 1998

Revenue for the Three months ended March 31, 1999 increased 10% or $583,781 to
$6,330,596 over the comparable period in 1998. Principal reasons for the
increase are higher demand for the Company's reprographics, facilities
management, and imaging groups and revenue from the newly established
information technology group.

Cost of Sales for the three months ended March 31, 1999 decreased by 1% to
$4,935,789 or $49,875 from $4,985,664 for the same period in 1998. As a
percentage of sales, Cost of sales for the three months ended March 31, 1999
decreased by 9% to 78% compared to 87% for the same period in 1998. Operating
margins were 22% and 13%, respectively for the Nine months ended September 30,
1998 and 1997. The increase in margins was due to cost controls adopted by the
company.

Selling expense for the three months ended March 31, 1999 decreased by 23% to
$495,272 or $150,772 from $646,004 for the same period in 1998. As a percentage
of sales, Selling expense for the three months ended March 31, 1999 decreased by
3% to 8% compared to 11% for the same period in 1998. Selling expenses are
primarily commissions based on sales. The decrease was due to a change in
commission structures.


                                 Page 10 of 12

<PAGE>

Administrative expense for the three months ended March 31, 1999 increased by
$54,901 to $799,713 over the same period last year due primarily to increases in
administrative staffing and costs associated with the expansion into new
markets. As a percent of sales, administrative expense was 13% for the three
month periods in 1999 and 1998

NET EARNINGS (LOSS)

For the three months ended March 31, 1999 the Company incurred net earnings of
$78,220 as compared to a net loss of $358,346 for the same period last year. The
earnings amounted to $ 0.02 for basic and diluted earnings per share compared to
loss of ($ 0.07) for the same period last year. Weighted average shares
outstanding for the Three months ended March 31, 1999 were 4,824,669 and
4,794,021 for March 31, 1998. As of December 31, 1998 the company had a tax Net
Operating Loss Carryforward (NOL) in the amount of $300,000. As of March 31,
1999 the company used $78,220 of the NOL . The balance will be used against
subsequent earnings.

LIQUIDITY AND CAPITAL RESOURCES AT SEPTEMBER 30, 1998 AND SUBSEQUENT ACTIVITY

The Company has funded its expansion and growth by utilizing internally
generated cash flow and long term financing, where appropriate, for significant
capital outlays. The Company anticipates that cash flow from operations and
credit facilities 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 require more working capital than the Company has at its
disposal.

The Company has a secured a $2,500,000 line of credit with a financial
institution. The line of credit bears interest at the financial institution's
prime rate or the 30 day LIBOR rate plus 2.25%, payable monthly. The line of
credit will be utilized to finance accounts receivable and other working capital
needs. As of September 30, 1998 there were advances under the line that totaled
$1,061,000. The Company also has a $1,100,000 term note to refinance certain
capital leases at more favorable interest rates. The note is payable in 48
monthly installments, bears interest at the rate of 9.02%, and matures on April
30, 2001. The balance on the note at March 31, 1999 was $535,362

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company believes its market risk exposure with regard to its financial 
instruments is limited to changes in interest rates. Based upon the 
composition of the Company's variable rate debt outstanding at December 31, 
1997 which is primarily borrowings under the working capital line of credit, 
the Company does not believe that a hypothetical increase in the bank's prime 
rate of interest or the 30 day LIBOR rate would be material to net income.

YEAR 2000

The Company is aware of the issues associated with the programming code in
existing computer systems as the Year 2000 approaches. Management is in the
process of converting its computer systems. Maintenance or modification costs
will be expensed as incurred, while the costs associated with new computer
systems will be capitalized and amortized over the systems useful lives.
Management believes that with converting to new computer systems, the Year 2000
issue will not pose a significant operational problem.


                                 Page 11 of 12

<PAGE>


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:    April 15, 1999
                                  By:
                                          --------------------------------------
                                          /s/ Christopher J. Weiler
                                              President and
                                              Chief Executive Officer


                                  By:
                                          --------------------------------------
                                          /s/ Alfred Duncan
                                              Vice President of Finance and
                                              Chief Financial Officer







                                 Page 12 of 12