<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                 FORM 10-QSB/A1


(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000

[] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

             For the transition period from __________ to _________

                        Commission file Number 000-24706

                       SELECT MEDIA COMMUNICATIONS, INC.
        (Exact name of small business issuer as specified in its charter)

<TABLE>
<S>                                                 <C>
                 New York                                     13-3415331
(State or other jurisdiction of incorporation       (IRS Employer Identification No.)
             or organization)
</TABLE>


                         666 Third Avenue, New York, NY
                    (Address of principal executive offices)

                                 (212) 584-1900
                           (Issuer's telephone number)

  _____________________________________________________________________________
              (Former name, former address and former fiscal year,
                         if changed since last report)

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a


                                       -1-
<PAGE>   2

court.  Yes [__] No[X]



                      APPLICABLE ONLY TO CORPORATE ISSUERS


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 13,016,592 Shares of Common Stock


Transitional Small Business Disclosure Format (Check One): Yes [ ] No [X]


                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.



                                       -2-
<PAGE>   3
                        SELECT MEDIA COMMUNICATIONS INC.
                                 AND SUBSIDIARY

                   UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                 For the Six Months Ended June 30, 2000 and 1999
<PAGE>   4
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                                                                        CONTENTS
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                  Page
                                                                  ----
<S>                                                                <C>
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

  Balance Sheet                                                    1-2
  Statements of Operations                                         3-4
  Statements of Cash Flows                                         5-6


NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS               7-8
</TABLE>
<PAGE>   5
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                                            UNAUDITED CONSOLIDATED BALANCE SHEET


                                                                   June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S>                                                                   <C>                   <C>
                                     ASSETS


CURRENT ASSETS
  Cash                                                                $    7,509
  Accounts receivable, less allowance for doubtful
    accounts of $505,659                                                 148,495
  Prepaid expenses and other current assets                              158,844
                                                                      ----------


    Total Current Assets                                                                    $  314,848


PROPERTY AND EQUIPMENT, Net                                                                    701,024


OTHER ASSETS
  Goodwill, net of accumulated amortization of $160,750                  803,754
  Intangibles, net of accumulated amortization of $13,363                111,637
  Reorganization value, net of accumulated amortization of
  $692,512                                                             1,751,646
                                                                      ----------


       Total Other Assets                                                                    2,667,037
                                                                                            ----------


    TOTAL ASSETS                                                                            $3,682,909
                                                                                            ==========
</TABLE>


                                                                               1
<PAGE>   6
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                                            UNAUDITED CONSOLIDATED BALANCE SHEET

                                                                   June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S>                                                                       <C>                      <C>
                     LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
 Accounts payable                                                         $  1,565,831
 Accrued expenses                                                            2,837,957
 Notes payable                                                                 941,945
 Current portion of capital lease obligation                                    60,596
 Reorganization liabilities, current portion                                   100,000
 Due to stockholders                                                           892,000
                                                                          ------------

    Total Current Liabilities                                                                      $  6,398,329

OTHER LIABILITIES
 Capital lease obligation, net of current portion                               41,888
 Reorganization liabilities, net of current portion                          1,384,890
                                                                          ------------

    Total Other Liabilities                                                                           1,426,778
                                                                                                   ------------

    TOTAL LIABILITIES                                                                                 7,825,107

COMMITMENTS

STOCKHOLDERS' DEFICIT
 Common stock - $.001 par value; 35,000,000 shares authorized,
  13,016,592 shares issued and outstanding, respectively                        13,021
Additional paid-in capital                                                   8,974,849
Accumulated deficit                                                        (13,130,068)
                                                                          ------------


    TOTAL STOCKHOLDERS' DEFICIT                                                                      (4,142,198)
                                                                                                   ------------

    TOTAL LIABILITIES AND
      STOCKHOLDERS' DEFICIT                                                                        $  3,682,909
                                                                                                   ============
</TABLE>


                                                                               2
<PAGE>   7
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                                              UNAUDITED STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                             Six Months Ended                      Three Months Ended
                                                     June 30, 2000       June 30, 1999      June 30, 2000       June 30, 1999
                                                     -------------       -------------      -------------       -------------
<S>                                                  <C>                 <C>                 <C>                 <C>
SALES                                                 $   364,057         $ 2,042,931         $   199,840         $ 1,262,208

COST OF SALES                                             255,642             858,681             136,270             499,387
                                                      -----------         -----------         -----------         -----------

    GROSS PROFIT                                          108,415           1,184,250              63,570             762,821

SELLING, GENERAL AND ADMINISTRATIVE
 EXPENSES
  Selling, general and administrative expenses          3,304,617           1,791,436           1,519,210           1,008,553
  Write-off of capital improvement receivable              98,820                  --              98,820                  --
  Stock based compensation                                 33,010                  --                  --                  --
                                                      -----------         -----------         -----------         -----------

       Total operating expenses                         3,436,447           1,791,436           1,618,030           1,008,553

       OPERATING LOSS                                  (3,328,032)           (607,186)         (1,554,460)           (245,732)

OTHER INCOME (EXPENSE)
  Other income                                             25,312                  --              13,305                  --
  Interest expense                                        (79,804)           (127,221)            (36,502)           (111,618)
                                                      -----------         -----------         -----------         -----------

       TOTAL OTHER INCOME (EXPENSE)                   $   (54,492)        $  (127,221)        $   (23,197)        $  (111,618)
                                                      -----------         -----------         -----------         -----------
</TABLE>


                                                                               3
<PAGE>   8
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                                   UNAUDITED STATEMENTS OF OPERATIONS, Continued
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                           Six Months Ended                         Three Months Ended
                                                   June 30, 2000        June 30, 1999        June 30, 2000        June 30, 1999
                                                   -------------        -------------        -------------        -------------
<S>                                                <C>                  <C>                  <C>                  <C>
       LOSS BEFORE INCOME TAXES                     $ (3,382,524)        $   (734,407)        $ (1,577,657)        $   (357,350)

INCOME TAXES                                                  --                   --                   --                   --
                                                    ------------         ------------         ------------         ------------

       NET LOSS                                     $ (3,382,524)        $   (734,407)        $ (1,577,657)        $   (357,350)
                                                    ============         ============         ============         ============

PER SHARE DATA
Basic and diluted net loss per common share:
   Net loss                                         $      (0.31)        $      (7.58)        $      (0.13)        $      (3.53)
                                                    ============         ============         ============         ============
 Weighted Average Common Shares Outstanding           10,957,768               96,835           12,566,592              101,273
                                                    ============         ============         ============         ============
</TABLE>


                                                                               4
<PAGE>   9
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                                              UNAUDITED STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                        For the Six Months Ended
                                                                   June 30, 2000        June 30, 1999
                                                                   -------------        -------------
<S>                                                                <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                           $(3,382,524)        $  (734,407)
                                                                     -----------         -----------
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
    Stock-based compensation                                              33,000                  --
    Stock issued for services                                            225,000                  --
    Depreciation and amortization                                        377,253             180,368
    Increase in allowance for doubtful accounts                          262,545              20,156
  Changes in assets and liabilities:
    Increase in accounts receivable                                      (11,323)           (665,055)
    Increase in capital improvement receivable                                --              (7,272)
    Decrease in note receivable                                               --              64,800
    Increase in prepaid expenses and other current assets                (94,337)             (1,152)
    Increase in accounts payable                                         191,169             364,096
    Increase in accrued expenses                                         596,967             838,151
    Payments of reorganization liabilities                               (95,079)           (510,158)
                                                                     -----------         -----------

    TOTAL ADJUSTMENTS                                                  1,485,195             283,934
                                                                     -----------         -----------

    NET CASH (USED IN) OPERATING ACTIVITIES                           (1,897,329)           (450,473)
                                                                     -----------         -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of property and equipment                                   (138,121)           (265,119)
  Purchase of Sigma Sound Services Inc., net of cash acquired           (198,600)                 --
  Purchase of intangible assets                                         (125,000)                 --
                                                                     -----------         -----------

    NET CASH USED IN INVESTING ACTIVITIES                            $  (461,721)        $  (265,119)
                                                                     -----------         -----------
</TABLE>


                                                                               5
<PAGE>   10
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                                   UNAUDITED STATEMENTS OF CASH FLOWS, Continued
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                             For the Six Months Ended
                                                       June 30, 2000        June 30, 1999
                                                       -------------        -------------
<S>                                                    <C>                 <C>
CASH FLOWS FROM FINANCING ACTIVITIES
  Payments of capital lease obligations                  $   (73,230)        $   (25,253)
  Proceeds from notes payable                                     --             135,000
  Repayments of notes payable                                (25,555)                 --
  Advances from shareholders                               2,299,000             528,330
  Repayments from shareholders                               166,000                  --
                                                         -----------         -----------

   NET CASH PROVIDED BY FINANCING ACTIVITIES               2,366,215             638,077
                                                         -----------         -----------

       NET INCREASE IN CASH                                    7,165              77,515

CASH AT BEGINNING OF PERIOD                                      344             118,165
                                                         -----------         -----------

CASH AT END OF PERIOD                                    $     7,509         $    40,650
                                                         ===========         ===========


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid during the years for:
  Interest                                               $    27,140         $    21,306

Noncash investing and financing activities:

  Sigma Sound Services, Inc. acquisition:
     Issuance of note payable                            $   400,000         $        --
     Deposit applied to the purchase price               $   400,000         $        --

  Equipment acquired by Capital lease                    $        --         $   118,423
</TABLE>


                                                                               6
<PAGE>   11
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                            NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
-------------------------------------------------------------------------------


NOTE 1 - The Company and Basis of Presentation

       The Company

       Select Media Communications Inc. (the "Company") is an integrated media
       company engaged in producing and distributing programming.

       Basis of Presentation

       The accompanying Unaudited Consolidated financial statements reflect all
       adjustments, which in the opinion of management are necessary for a fair
       statement of the results of the interim periods presented. All such
       adjustments are of a normal recurring nature. The financial statements
       should be read in conjunction with the notes to the financial statements
       and in conjunction with the audited financial statements contained in
       Form 10KSB (filed on July 26, 2000)

       Basis of Consolidation

       The consolidated financial statements include the accounts of Select
       Media Communications ("Select"), and it wholly-owned subsidiary Sigma
       Sound Services, Inc. ("Sigma"), collectively referred to as the
       ("Company"). All significant inter-company transactions and balances have
       been eliminated in consolidation.


NOTE 2 - Acquisitions

       On January 18, 2000 the Company purchased all of the issued and
       outstanding common stock of Sigma Sound Services, Inc. ("Sigma") pursuant
       to the terms of a stock purchase agreement (the "Agreement"). The
       purchase price for Sigma's common stock was $1,000,000 with $400,000 paid
       at the signing of the Agreement, $200,000 paid at closing and a $400,000
       10% secured note. The note is payable in two installments of $200,000
       plus accrued interest on June 30, 2000 and January 3, 2001. The note is
       secured by all of the Company's existing and future customer accounts,
       general intangibles, equipment, goods, instruments and inventory. The
       transaction was accounted for under the purchase method of accounting.
       The excess of the purchase price over the fair value of assets was
       $964,504 and has attributed to goodwill. Goodwill is being amortized over
       a 3 year life. Amortization expense for the six months ended June 30,
       2000 was $160,750.

       On March 8, 2000 the Company purchased certain contracts, which included
       substantially all of the assets of After Hours Productions, Inc ("AHP")
       pursuant to the terms of an asset purchase agreement (the "AHP
       Agreement"). The purchase price was $125,000 with $25,000 paid as a
       deposit on the purchase at the signing of the AHP Agreement and $100,000
       paid at closing. The Company recorded an intangible asset of $125,000 as
       a result of the purchase. The intangible asset is being amortized over 3
       years and amortization expense for the six months ended June 30, 2000 was
       $13,363.

NOTE 3 - Funding Agreement

       On January 15, 2000 the Company entered into an agreement with an
       Investment Bank to sell shares of the Company's common stock. In exchange
       for funding up to $2,000,000 in the


                                                                               7
<PAGE>   12
                                                SELECT MEDIA COMMUNICATIONS INC.
                                                                  AND SUBSIDIARY

                            NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------


       aggregate, the Investment Bank's investors can receive up to 4,000,000
       shares of the Company's common stock at a price of $ .50 per share. At
       June 30, 2000 the amount due to the Investment Bank/Stockholder was
       $892,000 (total advance through June 30, 2000 was $2,299,000).

       On April 13, 2000 the Company issued 2,814,000 shares of common stock to
       the Investment Bank in settlement of advances made to the Company in the
       amount of $1,407,000.


NOTE 4 - Stockholders Equity

       On June 30, 2000 the Company issued 450,000 shares of common stock to
       Consultants for services provided to the Company. The fair market values
       of these services are $225,000.


NOTE 5 - Commitments

       Employment Agreements

       On January 1, 2000 the Company entered into two employment agreements.
       One of the employees was terminated and the Company entered into a
       separation and release agreement on April 28, 2000. Pursuant to the
       employment and separation and release agreements, the employees were
       issued 100,000 and 50,000, respectively, of restricted shares for past
       services performed. As a result of these issuances, the Company
       recognized $33,000 ($0.22 per share) of stock based compensation expense.
       Future minimum compensation to the remaining employee under this
       agreement is $125,000 for the year ended December 31, 2000 and $100,000
       for the years ended December 31, 2001 and 2002.


NOTE 6 - Related Party Transaction

       In January 2000, the Company reimbursed one of its officers/shareholders
       $100,000 for mounts previously contributed by him pursuant to the
       Company's Plan of Reorganization.


                                                                               8
<PAGE>   13
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS


This Management's Discussion and Analysis of financial condition and results of
Operations may be deemed to include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, that involve risk and
uncertainty, including financial, regulatory environment and trend projections,
estimated costs to complete or possible future revenues from the Company's
expansion plans, the likelihood of successful completion of such plans, as well
as any statements preceded by, followed by, or that include the words "intends,"
"estimates," "believes," "expects," "anticipates," "should," "could," or similar
expressions; and other statements contained herein regarding matters that are
not historical facts. Although the Company believes that its expectations are
based on reasonable assumptions, it can give no assurance that its expectations
will be achieved. The important factors that could cause actual results to
differ materially from those in the forward-looking statements below (the
"Cautionary Statements") include, without limitation: (1) the ability of the
Company to continue its national rollout of its service bureaus; (2) the ability
of the Company to market its suite of telecommunications connectivity services
to small and medium size businesses in its service areas; (3) the effects of
vigorous competition in the markets in which the Company operates; (4) the
impact of technological change on the Company's businesses, new entrants and
alternative technologies in the Company's business; (5) regulatory risks,
including the impact of the Telecommunications Act of 1996; (6) the impact of
competitive services and pricing; (7) risks associated with debt service
requirements and interest rate fluctuations; and (8) other risks referenced from
time to time in the Company's filings with the SEC, including the Form 10-KSB
for the year ended December 31, 1999. All subsequent written and oral
forward-looking statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by the Cautionary Statements.
The Company does not undertake any obligation to release publicly any revisions
to such forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.



The following discussion and analysis relates to the financial condition and
results of operations of the Company for the three and six months ended June 30,
2000, and 1999. The information should be read in conjunction with the
"Management's Discussion and Analysis" and consolidated financial statements and
notes thereto contained herein and in the Form 10-KSB for the year ended
December 31, 1999.


OVERVIEW


Select Media is a New York corporation whose common stock is currently traded in
the "pink sheets" under the symbol "SMTV.OB." Select


                                      -3-
<PAGE>   14

Media began in the business of producing and distributing "vignettes," which are
short-form (thirty-second) informational programs distributed by particular
sponsors for viewing during regular programming. In 1998, Select Media hired
personnel to provide services to worldwide news broadcasters and act as a
television news agency under the name "Select International Television Network"
("SITN") to produce and distribute news segments for sale to local and foreign
news broadcasters. Because of an inability to use studio space in a new
facility, SITN's business is now limited to distributing news segments produced
by others. In general, in the period covered by this report, the Company's
sources of revenues consisted of revenues from the distribution of video news
releases, from its international news division and from the operations of the
Company's Sigma subsidiary. Resale of advertising airtime has never constituted
a major source of the Company's revenues.



In the period from the Company's bankruptcy filing in October 1996 until
September 1998, the Company was essentially dormant. In 1999, the Company was
dependent upon one major customer (General Motors Corporation) for over 35% of
its revenues, most of which were received in the first six months of the year.
Beginning in the fall of 1999, the Company began its restructuring and moved its
offices. In the quarter ended June 30, 2000, the Company has not been dependent
on any major customers, and does not reasonably foresee any such dependence for
the balance of the current year.



In January 2000, Select Media repositioned itself as the owner of entertainment
content providers whose product can be marketed through traditional media and
over the Internet. In January 2000, Select Media purchased all the outstanding
stock of Sigma Sound Services, Inc. ("Sigma"). Sigma is a full service recording
studio that provides services to record companies, independent artists and
record producers. In March 2000, Select Media purchased contracts and other
assets of After Hours Productions, Inc. ("AHP"), along with the AHP name (the
"AHP Acquisition"). AHP creates custom music and video products. The Sigma
acquisition was accounted for as a purchase and the AHP Acquisition was
accounted for as a purchase of contracts. See Financial Statements and notes to
Financial Statements.


COMPETITION


Select Media faces competition from some of the largest entertainment companies
in the United States. It is difficult to estimate the size of the vignette
market. The Company is not aware of any other reporting companies involved in
the vignette business. The Company believes that competition in its business
comes not from other producers of vignettes, but from other users of scarce
airtime. One of the most significant developments in the broadcast television
industry in the 1990's has been the growth of alternative broadcast networks,
such as Fox, WB and UPN. Before this development, television stations that were
not affiliates of the three major television networks (CBS, NBC and ABC) were
independent local stations, each of which had substantial amounts of airtime to
sell to the Company and its customers. Today, most formerly independent stations
are affiliated with one of the new networks. As a result, the network, in
exchange for providing programming, gets to sell a significant portion of the
affiliate's broadcast airtime. Therefore, the


                                      -4-
<PAGE>   15

affiliate has less airtime to sell itself. Scarcity of a commodity tends to
increase the price. As a result, the cost of airtime has dramatically increased.



The entertainment market is rapidly evolving and intensely competitive.
Increased competition is likely to result in price reductions, reduced gross
margins and loss of market share, any of which could seriously harm Select
Media's net sales and results of operations. Select Media expects competition to
intensify in the future as additional distribution channels for entertainment
product are opened. In particular, Select Media believes that the use of the
Internet for distribution of entertainment product is both an opportunity and a
challenge. With so many entertainment choices, Select Media faces the challenge
of adapting its core business to Internet entertainment. Select Media expects
that its acquisition of content providers will enable it to adapt to the
Internet entertainment challenge, because Select Media believes that Internet
technology is developing faster than content can be produced. Although the
technology exists to provide a rich entertainment experience via the Internet,
Select Media believes that there is not sufficient high quality content
available for users. Select media intends to provide that content.



In line with this strategy, in 2000 Select Media acquired Sigma and AHP. Select
Media has also signed a letter of intent to purchase all the assets and
liabilities of Betelgeuse Productions, LLC. Betelgeuse has the ability to create
entertainment content for broadcast, cable and Internet and to adapt existing
product for use as Internet content.


MARKET STRATEGY


Select Media markets its remaining vignette products to large advertisers
directly to the marketing departments of these companies. Select Media uses its
own internal staff for such marketing. Select Media is developing vignettes for
radio, and is developing a form of vignette for on-line advertising. The cost of
advertising airtime has the greatest impact on whether the Company can sell its
vignette product. For each airing of a vignette, the customer has to purchase
sufficient airtime to broadcast both the vignette and the customer's own
advertisement. The greater the cost of airtime, the higher the cost to the
customer. The Company only resells airtime to its vignette customers to air
vignettes. The Company is not in the business of reselling airtime to third
parties.



Sigma markets its services directly through its principals. Sigma and AHP have
also produced compilation albums sold through home shopping channels, direct
response television and direct mail.



Select Media intends to create its own web site on the



                                      -5-
<PAGE>   16

Internet for sale of Select Media, Sigma and AHP custom product.



The website development is in the planning stage and completion of this project
is contingent upon available funding.



The Company has its Internet distribution system under development. The Company
is in discussion with another entity for sales of compact disks ("CDs") directly
over the Internet to consumers, but has not entered into any firm agreement or
understandings as of yet. However, the Company does not intend implement any
downloadable music distribution strategy until issues of copyright protection
and payment are standardized in the industry.



Select Media has 11 full time and 2 part time employees and during the period
covered by this report, operated a facility at 666 Third Avenue, New York, New
York, which was used as the principal corporate office and the site of its
studio facilities. As a result of the Sigma acquisition, Select Media also
leases a sound recording studio facility at North 12th Street in Philadelphia,
Pennsylvania.


RESULTS OF OPERATIONS

REVENUES

The following table sets forth certain items from the Registrant's consolidated
statements of operations as a percentage of net revenues for the periods
indicated:


                                       -6-
<PAGE>   17

<TABLE>
<CAPTION>

                                           FOR THE YEAR ENDED    FOR THE SIX MONTHS ENDED
                                               DECEMBER 31,             JUNE 30,
                                           ------------------    ------------------------
                                                  1999             2000          1999
                                                 -------         -------       -------
<S>                                        <C>                   <C>            <C>
     Net revenues                                  100.0%          100.0%        100.0%
     Cost of revenues                               56.1%           70.2%         42.0%
     Gross profit (Loss)                            43.9%           29.8%         58.0%

     Operating expenses:
       Selling, General and administrative         201.2%          907.7%         87.7%
       Nonrecurring costs                           62.3%           36.2%            0%

         Total operating expenses                  263.5%          943.9%         87.7%

     Operating income (loss)                      (219.5)%        (914.1)%       (29.7)%
     Other income and expense, net                 (14.1)%         (15.0)%        (6.2)%

     Income (loss) before income taxes            (233.6)%        (929.1)%       (35.9)%
     Provision for (benefit from)
       income taxes                                    0%              0%            0%

     Net income (loss)                            (233.6)%        (929.1)%       (35.9)%
                                                 -------         -------       -------

     Net Revenues                                 (233.6)%        (929.1)%       (35.9)%
</TABLE>



Before the Sigma acquisition, the Registrant's net revenues were derived mainly
from the sales of vignettes, video press releases and SITN. Sigma's revenues
consist of sales of sound recording studio services, editing and post-production
work on recorded musical works. In the six months ended June 30, 2000, net
revenues decreased by $1,678,874, or 82.2%, to $364,057 from $2,042,931 in the
six months ended June 30, 1999. The decrease in net revenues during the first
six months of 2000 was primarily attributable to the end of the Company's video
press release contract with General Motors Corporation, the Company's focusing
on the Sigma and AHP acquisitions and a significant decline in revenues from its
international news operations because of an inability to use studio space in its
new facility. The Registrant expects SITN and video press release revenues in
the coming year to be significantly lower than 1999 levels.


GROSS PROFIT


                                      -7-
<PAGE>   18

Cost of revenues consists primarily of costs associated with studio time and
transmission of signal for SITN and with producing vignettes and video press
releases and marketing the finished product, including scriptwriting, filming,
salaries and post-production processing and editing. For Sigma, cost of revenues
include studio personnel salaries, rent on the facility and post-production
processing and editing. The resulting gross profit fluctuates based on factors
such as salary expense, editing and marketing. Gross margin decreased to 29.8 %
in the six months ended June 30, 2000, compared to 58.0% in the six months ended
June 30, 1999. The decrease during the six months ended June 30, 2000 was
primarily due to the Company's inability to use the studio space in its new
facility, plus costs of integrating the Sigma acquisition and the AHP
acquisition. The Registrant currently expects gross margins during 2000 to be
lower than the 1999 levels as a result of SITN revenues being significantly
lower than the 1999 levels. In the current year, the Registrant expects the
Sigma and AHP acquisitions to have a positive effect on both revenues and gross
margin.


EXPENSES


Selling, general and administrative expenses were $3,304,626 in the six months
ended June 30, 2000 compared with $1,791,436 in the six months ended June 30,
1999, for an increase of $1,513,190, or 84.5%. This increase was attributable to
expenses for the expansion of the Registrant's business and costs of relocation
of the Registrant's offices, as well as the costs associated with the Sigma and
AHP acquisitions and operations, including payroll and professional fees. The
Registrant's expenses in the six months ended June 30, 2000 also include a
non-recurring stock based compensation expense of $33,000 and a loss on capital
improvement receivable of $98,820, which had an impact on expenses for the six
months ended June 30, 2000.


LOSSES


The Registrant incurred losses from operations of $(3,328,031) in the six months
ended June 30, 2000 compared to $(607,186) in the six months ended June 30,
1999, for an increase of $(2,720,845) or 448.1%. The substantial increase in
losses was due primarily to the decrease in SITN business caused by its
inability to use its studio space in its new facility, the expenses of the Sigma
and AHP acquisitions and operations and the non-recurring stock based
compensation expense of $33,000 and loss on capital improvement receivable of
98,820 in the six months ended June 30, 2000. Net other income and expenses
were $(54,492) in the six months ended June 30, 2000 and $(127,221) in the six
months ended June 30, 1999, for a decrease of $(72,729) or (57.2%).


 LIQUIDITY AND CAPITAL RESOURCES


The Registrant has significant capital needs, which to date the Registrant has
met through private sales of its equity and loans. The Registrant will continue
to need substantial infusions of capital,


                                      -8-
<PAGE>   19

which it expects to continue to fund primarily from private sales of its equity
and loans, or by a public offering of its equity or debt securities. In the six
months ended June 30, 2000, the Registrant has received from Lloyds Bahamas
Securities, LTD over $2 million in additional financing, of which $892,000
consists of convertible notes outstanding and $1,407,000 in convertible notes,
which was converted into 2,814,000 shares of restricted common stock at $0.50
per share. The Registrant is continuing in efforts to increase its capital
resources.



                                       -9-
<PAGE>   20

Sales of common stock by the Company at less than the current trading price
could tend to depress prices in the pink sheet market. Together with anticipated
revenue, the Company estimates that this funding will be sufficient to fund the
Company's business plan until March 2001. The Company has received a separate
commitment from Lloyds for an additional $2 million in financing once the
Company's common stock is relisted on the OTC Bulletin Board.



The Company has also received a non-binding letter of intent from Bryn Mawr
Investment Group, Inc. to provide up to $10 million in financing to the Company
through private or public offerings of securities, to be used for working
capital and acquisitions.



The Company anticipates that its sales plus the $2,000,000 in financing will
enable the Company to operate for the next twelve (12) months. None of the
Company's committed or proposed financing is contingent on removing the "going
concern" language from the Company's audit report.



                            PART II-OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS.


         In November, 1999, 405 Lexington, L.L.C. (the "Landlord") began an
action in New York City Landlord-Tenant Court alleging that Select Media had
breached its lease and seeking the payment of use and occupancy. The Landlord is
seeking up to $600,000 in additional payments based on an alleged breach of the
lease. The Company is defending this action and believes the allegations of the
Landlord are without merit. On a motion by the Company, this action has been
consolidated with the Supreme Court Action discussed in the following paragraph.



         In May, 2000, Select Media began an action in New York Supreme Court
against the Landlord seeking an injunction to permit completion of the build-out
of the studios to be used for SITN and surrounding space in its leased premises,
the release of $706,880 of Landlord's contributions toward build-out already
completed and for damages in excess of $10 million for loss of the SITN
business. On a motion by Select Media, the Court has consolidated this action
with the Landlord-Tenant Court action. The Court has ordered discovery in this
action beginning November 20, 2000.


ITEM 2. CHANGES IN SECURITIES.


         In the quarter ended June 30, 2000, Lloyds Bahamas Securities, LTD
converted $1,407,000 in convertible debt into 2,814,000 shares of the Company's
restricted common stock at a conversion rate of $0.50 per share.


                                      -10-
<PAGE>   21
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

         Not Applicable




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

         Not Applicable

ITEM 5. OTHER INFORMATION.

         Not Applicable


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

   Exhibits

        Exhibit 27.1  -  Financial Data Schedule

   Reports on Form 8-K

        Not Applicable



                                      -11-
<PAGE>   22
                                   SIGNATURES



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


                                      SELECT MEDIA COMMUNICATIONS, INC.
                                      ---------------------------------
                                               (Registrant)


Date:  November 20, 2000              /s/ Mitch Gutkowski
     -----------------------          ----------------------------------------
                                      MITCH GUTKOWSKI, Chief Executive Officer


                                      -12-