|SECURITIES
AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2002
Commission file number 0-27042
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | AlphaNet
Solutions, Inc. | 
| | ------------------------ | 

| | (Exact Name of Registrant as Specified in Charter) | 
| | -------------------------------------------------- | 

|New Jersey |  | 22-2554535
|---------- |  | ----------

|(State or Other Jurisdiction of Incorporation) |  | (I.R.S. Employer Identification Number)
|---------------------------------------------- |  | ---------------------------------------

|7 Ridgedale Avenue, Cedar Knolls, New Jersey |  | 07927
|-------------------------------------------- |  | -----

|(Address of Principal Executive Offices) |  | (Zip Code)
|---------------------------------------- |  | ----------

|Registrants Telephone Number, Including Area Code | (973) 267-0088 | 
|-------------------------------------------------- | -------------- | 

|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 Registrants classes of common stock, as of October 31, 2002:
|----------------------------------------------------------------------------------------------------------------------

|Class |  | Number of Shares Outstanding
|----- |  | ----------------------------

|Common Stock, $.01 par value |  | 6,421,113
|---------------------------- |  | ---------

---

|ALPHANET
SOLUTIONS, INC.

TABLE OF CONTENTS
|-------------------------------------------

|PART I. | FINANCIAL INFORMATION
|------- | ---------------------

| | Item 1. | Financial Statements | 1
| | ------- | -------------------- | -

| |  | Consolidated Balance Sheets
          
as of September 30, 2002 (unaudited)
          
and December 31, 2001 | 1
| |  | ------------------------------------------------------------------------------------------------------------ | -

| |  | Consolidated Statements of Operations
          
for the Three and Nine Months Ended
          
September 30, 2002 (unaudited) and September 30, 2001 (unaudited) | 2
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | -

| |  | Consolidated Statements of Cash Flows 
          
for the Six Months Ended
          
September 30, 2002 (unaudited) and September 30, 2001 (unaudited) | 3
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------- | -

| |  | Notes to Consolidated Financial Statements (unaudited) | 4
| |  | ------------------------------------------------------ | -

| | Item 2. | Managements Discussion and Analysis of
        Financial Condition and Results of Operations | 9
| | ------- | --------------------------------------------------------------------------------------------- | -

| | Item 3. | Quantitative and
 Qualitative Disclosures About Market Risk | 20
| | ------- | ----------------------------------------------------------- | --

|PART II. | OTHER INFORMATION |  | 20
|-------- | ----------------- |  | --

| | Item 1. | Legal Proceedings | 21
| | ------- | ----------------- | --

| | Item 4. | Submission of Matters to a Vote by Securities Holders | 21
| | ------- | ----------------------------------------------------- | --

| | Item 6. | Exhibits and Reports on Form 8-K | 22
| | ------- | -------------------------------- | --

|SIGNATURES |  |  | 24
|---------- |  |  | --

|CERTIFICATIONS |  |  | 25
|-------------- |  |  | --

---

|PART I.
FINANCIAL INFORMATION


Item 1.  
Financial Statements


ALPHANET SOLUTIONS,
INC.CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                          | September 30,        2002 | December 31,2001
|------------------------------------------------------------------------- | ------------------------- | ----------------
|                                                                          |                           |                 
|ASSETS                                                                    |                           |                 
|Current assets:                                                           |                           |                 
|Cash and cash  equivalents  . . . . . . . . . . . . . . . . . .           |                           |                 
|Accounts receivable, less allowance for doubtful accounts of              |                           |                 
|$679 at September 30, 2002 and $622 at December 31, 2001 . . .            |                           |                 
|Inventories . . . . . . . . . . . . . . . . . . . . . . . . .             |                           |                 
|Income tax receivable  . . . . . . . . . . . . . . . . . . . .            |                           |                 
|Prepaid expenses and other current assets . . . . . . . . . .             |                           |                 
|                                                                          |                           |                 
|Total current assets . . . . . . . . . . . . . . .                        |                           |                 
|Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . |                           |                 
|Goodwill  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   |                           |                 
|Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  |                           |                 
|                                                                          |                           |                 
|Total assets  . . . . . . . . . . . . . . . . . . .                       |                           |                 
|                                                                          |                           |                 
|LIABILITIES AND SHAREHOLDERS EQUITY                                      |                           |                 
|Current liabilities:                                                      |                           |                 
|Current portion of capital lease obligations . . . . . . . . .            |                           |                 
|Accounts payable . . . . . . . . . . . . . . . . . . . . . . .            |                           |                 
|Accrued expenses . . . . . . . . . . . . . . . . . . . . . . .            |                           |                 
|Accrued MTA contract liability  . .  . . . . . . . . . . . . .            |                           |                 
|                                                                          |                           |                 
|Total current liabilities . . . . . . . . . . . . .                       |                           |                 
|Total liabilities . . . . . . . . . . . . . . . . . . . . . .             |                           |                 
|                                                                          |                           |                 
|Shareholders' equity:                                                     |                           |                 
|Preferred stock -- $0.01 par value; authorized 3,000,000                  |                           |                 
|shares, none issued . . . . . . . . . . . . . . . . . . . .               |                           |                 
|Common stock -- $0.01 par value; authorized 15,000,000 shares,            |                           |                 
|6,588,413 shares issued at September 30, 2002 and December 31,            |                           |                 
|2001 . . . . . . . .                                                      |                           |                 
|Additional paid-in capital  . . . . . . . . . . . . . . . . .             |                           |                 
|Accumulated Deficit  . . . . . . . . . . . . . . . . . . . . .            |                           |                 
|Treasury stock - at cost; 166,500 shares at September 30, 2002            |                           |                 
|and 150,600 shares at December 31, 2001 . . .                             |                           |                 
|                                                                          |                           |                 
|Total shareholders' equity . . . . . . . . . . . .                        |                           |                 
|                                                                          |                           |                 
|Total liabilities and shareholders' equity . . . .                        |                           |                 
|                                                                          |                           |                 

|See accompanying notes to consolidated financial statements


- 1 -
|-------------------------------------------------------------------

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|ALPHANET SOLUTIONS,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share amounts)
(unaudited)
|--------------------------------------------------------------------------------------------------------------

|                                                        | For the Three Months endedSeptember 30, | For the Nine Months endedSeptember 30,
|------------------------------------------------------- | --------------------------------------- | --------------------------------------
|                                                        |                                         |                                       
|
|                                                        |                                         |                                       
|Net sales:                                              |                                         |                                       
|Product sales  . . . . . . . . . . . . . . . . .        |                                         |                                       
|Services and support . . . . . . . . . . . . .          |                                         |                                       
|                                                        |                                         |                                       
|                                                        |                                         |                                       
|Cost of sales:                                          |                                         |                                       
|Product sales . . . . . . . . . . . . . . . . .         |                                         |                                       
|Services and support                                    |                                         |                                       
|                                                        |                                         |                                       
|                                                        |                                         |                                       
|Gross Profit:                                           |                                         |                                       
|Product sales                                           |                                         |                                       
|Service and support                                     |                                         |                                       
|                                                        |                                         |                                       
|                                                        |                                         |                                       
|Operating expenses:                                     |                                         |                                       
|Selling, general & administrative . . . . . . .         |                                         |                                       
|                                                        |                                         |                                       
|Operating  loss . . . . . . . . . . . . . . . . . . . . |                                         |                                       
|Other income :                                          |                                         |                                       
|Interest  income . . . . . . . . . .  . . . . .         |                                         |                                       
|Other Income . . . . . . . . . . . . . . . . .          |                                         |                                       
|                                                        |                                         |                                       
|                                                        |                                         |                                       
|                                                        |                                         |                                       
|Loss before income taxes  . . . . . . . . . . . . . . . |                                         |                                       
|Benefit for income taxes . . . . . . . . . . . . . . .  |                                         |                                       
|                                                        |                                         |                                       
|Net income (loss) . . . . . . . . . . . . . . . . . . . |                                         |                                       
|                                                        |                                         |                                       
|Basic and Diluted net income (loss) per share  .        |                                         |                                       
|                                                        |                                         |                                       
|Weighted average number of common shares outstanding .  |                                         |                                       
|                                                        |                                         |                                       
|Weighted average number of common and common equivalent |                                         |                                       
|shares outstanding  . . . . . .                         |                                         |                                       
|                                                        |                                         |                                       

|See accompanying notes to consolidated financial statements.


- 2 -
|--------------------------------------------------------------------

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|ALPHANET SOLUTIONS,
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|----------------------------------------------------------------------------------------

|                                                                           | Nine Months endedSeptember 30,
|-------------------------------------------------------------------------- | ------------------------------
|                                                                           |                               
|
|                                                                           |                               
|Cash flows from operating activities:                                      |                               
|Net income (loss) . . . . . . .. . . . . . . . . . . . . . . . . . .       |                               
|Adjustments to reconcile net loss to net cash                              |                               
|(used in) provided by operating activities:                                |                               
|Depreciation and amortization . . . . . . . . . . . . . . . . .            |                               
|Write-off of assets . . . . . . . . . . . . . . . . . . . . . .            |                               
|Provision for accounts receivable  . . . . . . . . . . . . . .             |                               
|Non-cash non-employee stock option charge  . . . . . . . . . .             |                               
|Benefit for income taxes . . . . . . . . . . . . . . . . . . .             |                               
|Increase (decrease) from changes in:                                       |                               
|Accounts receivable  . . . . . . . . . . . . . . . . . .                   |                               
|Inventories . . . . . . . . . . . . . . . . . . . . . . .                  |                               
|Income taxes . . . . . . . . . . . . . . . . . . . . . .                   |                               
|Prepaid expenses and other current assets . . . . . . . .                  |                               
|Other assets . . . . . . . . . . . . . . . . . . . . . .                   |                               
|Accounts payable . . . . . . . . . . . . . . . . . . . .                   |                               
|Accrued expenses . . . . . . . . . . . . . . . . . . . .                   |                               
|Accrued MTA contract liability  . . . . . . . . . . . . .                  |                               
|                                                                           |                               
|Net cash  (used in) provided by operating activities . . . . .             |                               
|Cash flows from investing activities:                                      |                               
|Loan to Eureka Broadband (See Note 3) . . . . . . . . . . . . . . . .      |                               
|Property and equipment expenditures  . . . . . . . . . . . . . . . .       |                               
|Purchase of ICM . . . . . . . . . . . . . . . . . . . . . . . . . . .      |                               
|                                                                           |                               
|Net cash used in investing activities . . . . . . . . . . . . . . . .      |                               
|Cash flows from financing activities                                       |                               
|Employee stock purchases and exercises of stock                            |                               
|options  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       |                               
|Purchase of AlphaNet stock . . . . . . . . . . . . . . . . . . . . .       |                               
|Repayment of capital lease obligations  . . . . . . . . . . . . . . .      |                               
|                                                                           |                               
|Net cash (used in) provided by financing activities  . . . . . .           |                               
|                                                                           |                               
|Net decrease in cash and cash equivalents  . . . . . . . . . . . . . . . . |                               
|Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . |                               
|                                                                           |                               
|Cash and cash equivalents, end of period  . . . . . . . . . . . . . . . .  |                               
|                                                                           |                               

|See accompanying notes to consolidated financial statements.


- 3 -
|--------------------------------------------------------------------

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|ALPHANET SOLUTIONS,
INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)




Note 1  Description of the
Business and Basis of  Presentation :


AlphaNet Solutions, Inc.
(the Company)  is an information technology (IT)
professional services firm  providing a full range of outsourced solutions in two major
IT practice areas:  IT Operations and Learning Solutions. IT Operations includes:
AlphaNet  Technology SolutionsSM, which delivers IT projects and services
around networks, servers, desktops, storage and information security; and  AlphaNet
Service Desk SolutionsSM, which delivers services via its  operations center
such as monitoring, management, hosting, and helpdesk support  for a wide variety of
applications. AlphaNet Learning SolutionsSMoffers custom training programs,
classroom instruction, and certification  programs.


The accompanying unaudited consolidated financial  statements have been prepared in
accordance with generally accepted accounting  principles for interim periods. The
foregoing financial information reflects all  adjustments which are, in the opinion of
management, necessary for a fair  presentation of the Companys financial position,
results of operations and  cash flows as of the dates and for the periods presented.
Certain information  and footnote disclosure normally included in financial statements
prepared in  accordance with generally accepted accounting principles have been condensed
or  omitted. These consolidated financial statements should be read in conjunction  with
the Companys audited financial statements for the year ended December  31, 2001,
which were included as part of the Companys Annual Report on  Form 10-K, as filed
with the Securities and Exchange Commission.


Certain
prior year amounts  have been reclassified to conform with current year presentation. In
November  2001, the Financial Accounting Standards Board issued Topic No. D-103,  Income
Statement Characterization of Reimbursements Received For  Out-of-Pocket Expenses
Incurred. In connection with this statement, the  Company has reclassified
out-of-pocket expense reimbursements billed to its  clients as revenues versus a
reduction in cost of sales. Such reimbursements  were $21,000 and $85,000 in the three
months ended September 30, 2002 and 2001,  and $51,000 and $158,000 in the nine months
ended September 30, 2002 and 2001.


In
connection with a  reorganization of its professional service operations during the
second quarter  of 2002, the Company reclassified certain professional services support
managers  and staff associated with its professional service consulting operations as
cost  of sales versus selling, general and administrative expenses. These direct  support
costs aggregated $246,000 and $258,000 in the three months ended  September 30, 2002 and
2001, respectively, and $751,000 and $754,000 in the nine  months ended September 30,
2002 and 2001, respectively. These reclassifications  are reflected in the accompanying
consolidated statements of operations, and  have no impact on the Companys reported
results of net losses or income.


Results
for interim periods are not necessarily  indicative of results that may be expected for
the entire year.



- 4 -
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|Note 2  Net Income Per Share:
|------------------------------

|                                                        | Three Months endedSeptember 30 | Nine Months endedSeptember 30
|------------------------------------------------------- | ------------------------------ | -----------------------------
|                                                        |                                |                              
|
|                                                        |                                |                              
|Net income (loss) . . . . . . . . . . . . . . . . . . . |                                |                              
|                                                        |                                |                              
|Basic:                                                  |                                |                              
|Weighted average number of shares outstanding  . . . .  |                                |                              
|                                                        |                                |                              
|Net income (loss) per share   . . . . . . . . . . . .   |                                |                              
|                                                        |                                |                              
|Diluted:                                                |                                |                              
|Weighted average number of shares outstanding . . . .   |                                |                              
|Dilutive effects of stock options . . . . . . . . . .   |                                |                              
|Weighted average number of common and common            |                                |                              
|Equivalent shares outstanding                           |                                |                              
|                                                        |                                |                              
|Net income (loss) per share . . . . . . . . . . . . .   |                                |                              
|                                                        |                                |                              

|In
February 1997, the  Financial Accounting Standards Board issued Statement No. 128 Earnings
per  Share which specifies the computation, presentation and disclosure
requirements for earnings per share (EPS) of entities with  publicly-held
common stock or potential common stock. The statement defines two  EPS calculations,
basic and diluted. The objective of basic EPS is to measure  the performance of an entity
over the reporting period by dividing income  available to common stockholders by the
weighted average number of shares  outstanding. The objective of diluted EPS, consistent
with that of basic EPS, is  to measure the performance of an entity over the reporting
period, while giving  effect to all dilutive potential common shares that were
outstanding during the  period. The calculation of diluted EPS is similar to basic EPS
except both the  numerator and denominator are increased for the conversion of potential
dilutive  common shares.


- 5 -
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|Note 3  Eureka Broadband:


In
February  2001, a  wholly-owned  subsidiary of Eureka  Broadband  Corporation (Eureka),
merged with and into  nex-i.com, an unconsolidated affiliate of the Company. The Company
had  previously invested $1.8 million in nex-i.com series A convertible participating
preferred stock (Series A Nex-i.com Stock). In connection with this  merger,
the Company loaned Eureka $382,000, in exchange for a promissory note  and received
several classes of preferred stock in exchange for the Series A  Nex-i.com Stock, all of
which was converted to common stock in July 2001. In the  fourth quarter of 2001, the
Company wrote off its remaining investment of  $382,000.


Note 4  MTA Contract:


In
December 1997, the Company  entered into a $20.4 million contract (the MTA Contract)
with New  York City Transit, an agency of the Metropolitan Transportation Authority of
the  State of New York (the MTA) to furnish and install local and  wide-area
computer network components, including network and telecommunications  hardware, software
and cabling throughout the MTAs over 200 locations. The  aggregate amount of this
contract was subsequently increased to $20.6 million.  The Company is the prime
contractor on this project and is responsible for  project management, systems
procurement, and installation. The work is provided  in contiguous locations and payment,
including a contractually-mandated holdback  equal to 5% of total contract value for one
year following completion of the  contract, is predicated upon achieving specific
milestone events. In the event  of default, in addition to all other remedies at law, the
MTA reserves the right  to terminate the services of the Company and complete the MTA
Contract itself at  the Companys cost. In the event of unexcused delay by the
Company, the  Company may be obligated to pay, as liquidated damages, the sum of $100 to
$200  per day, per site. While the Company believes it is currently performing in
accordance with the contract terms, there can be no assurance that any such  events of
default or unexcused delays will not be asserted. The MTA Contract is  a fixed unit price
contract, and the quantities are approximate, for which the  MTA has expressly reserved
the right, for each item, to direct the amount of  equipment and related installation be
increased, decreased, or omitted entirely  on 30 days notice. The MTA has the right to
suspend the work on 10 days notice  for up to 90 days and/or terminate the contract, at
any time, on notice, paying  only for the work performed to the date of termination. The
project is subject  to the prevailing wage rate and classification for telecommunications
workers,  as determined by the New York City Comptrollers office, over which the
Company has no control, and which is generally adjusted in June of each year and  may be
so adjusted in the future.


The
Company has performed  services and supplied products to the MTA since the inception of
the MTA  Contract. The work performed to date at MTA sites has required greater than the
originally estimated labor and other costs to complete. In May 1999, the Company
submitted a formal request to the MTA for equitable adjustment in the amount of
approximately $1.5 million and for a time extension. This request was  supplemented with
a further submission in October 1999. In January 2000, the  Project Manager for the MTA
Contract denied the Companys request, thereby  triggering the Companys right
under the contract to appeal the Project  Managers denial to the MTAs Dispute
Resolution Office (the  DRO). The Company filed a Notice of Appeal with the
DRO in February  2000, and pursuant to the DROs request, filed further written
submissions  and participated in an arbitral session with the DRO subsequent thereto. In
November 2000, the DRO rendered a written decision denying in full the  Companys
Request for Equitable Adjustment and Time Extension. Pursuant to  the terms of the MTA
Contract, in March 2001, the Company appealed the  DROs denial of the Companys
Request to the New York Supreme Court  (the Court). On April 22, 2002, the
Court rendered its decision on  the Companys appeal, denying all of the Companys
claims for review  of the determination made by the DRO. On May 31, 2002, the Company
filed an  appeal of this decision with the New York Supreme Court, Appellate Division.
The  Company is currently engaged in discussions with the MTA with a view to reaching  an
amicable resolution of this matter and, on November 1, 2002, filed a motion  with the
Court with the consent of counsel for the MTA to extend the  Companys time to
perfect its appeal. There can be no assurance these  discussions or appeals will be
successful.



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|On
July 19, 2000, the MTA  advised the Company of a determination by the Bureau of Labor Law
(the  Bureau) of the New York City Comptrollers Office, communicated
to the MTA by letter from the Bureau dated June 22, 2000, that, as of July 1,  2000, the
labor classification for all low voltage cabling carrying voice, data,  video, or any
combination thereof, is electrician. The Bureaus  determination is based on a New
York State Supreme Court Appellate Division  decision dated May 18, 2000. The workers
currently and historically used by the  Company to perform cabling work have been
classified as telecommunications  workers. The Company believes it is probable that the
Bureaus  determination will apply to the Companys cabling activities under
the  contract, thereby likely requiring the reclassification of its  telecommunications
workers as electricians retroactive to July 1, 2000. Since  the prevailing wage for
electricians is substantially higher than that for  telecommunications workers, the
Company expects to incur materially increased  labor costs as a result of the Bureaus
determination. On October 16, 2000,  the MTA Project Manager denied the Companys
request for a change order to  compensate the Company for the increased costs it expects
to incur in connection  with the reclassification of certain of its telecommunications
workers as  electricians. On January 19, 2001, the Company initiated a dispute within
the meaning of the applicable federal regulations governing the MTA  Contract by filing a
complaint with the United States Department of Labor (the  Department of Labor).
In its complaint, the Company requested that  the Department of Labor adjudicate this
dispute and either issue a determination  affirming that the prevailing wage rate for
telecommunications workers, as  originally specified by the MTA, is the applicable rate
for this project, or  directing the MTA to compensate the Company for the change in wage
classification made during the performance of the contract in violation of  federal
regulations. By letter dated March 12, 2001, the Department of Labor  advised the Company
that, without knowing which, if any, federal wage decision  was included in the MTA
Contract, it is unable to make a determination that any  violation of federal labor law
has occurred. On February 12, 2002, the Company  was informally advised by the Department
of Labor that the Department has  concluded that no federal wage determinations were
included or required to be  included in the MTA Contract because the project has
insufficient federal  funding to trigger the federal wage regulations. The Department of
Labor asserts  that the Companys claim is not one which is governed by federal
regulations or one over which the Department is willing to exercise  jurisdiction. On
April 23, 2002, the Company received a letter from the  Department of Labor dated April
9, 2002 stating that the Department does not  have jurisdiction over the dispute because
it was advised by the New York City  Comptrollers office that no federal funds were
provided for the MTA  Contract. The Company has been advised that there are legitimate
grounds on  which the Department of Labors position, as well as the
above-referenced  wage reclassification may be challenged. The Company is currently
evaluating an  appropriate course of action. There can be no assurance the Company will
be  successful, either in whole or in part, in its efforts.



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|Note 5  Income Taxes:


Set forth below is a summary of the
Companys tax  provision (benefit) for the three and nine months ended September 30,
2002.
|-------------------------------------------------------------------------------------------------------------------------------------------------------

|                                               | Three months endedSeptember 30 | Nine months endedSeptember 30
|---------------------------------------------- | ------------------------------ | -----------------------------
|                                               |                                |                              
|
|                                               |                                |                              
|Federal income tax benefit at statutory rate   |                                |                              
|(34%)                                          |                                |                              
|State income tax benefit net of federal effect |                                |                              
|                                               |                                |                              
|Income tax benefit                             |                                |                              
|Valuation allowance                            |                                |                              
|                                               |                                |                              
|Net income tax benefit                         |                                |                              
|                                               |                                |                              

|In the
three months ended  September 30, 2002 and 2001, the Company recorded net income tax
benefits of  $576,000 and $0, respectively. The net benefit (including valuation
allowance  adjustments) for the three months ended September 30, 2002 consisted of
federal  income tax refunds the Company expects it can recover from the carryback of 2002
losses to prior tax periods as a result of changes to the Internal Revenue Code  enacted
during the first quarter of 2002. No benefit was recorded in the three  months ended
September 30, 2001, as the Company did not have carryback  availability under the then
existing Internal Revenue Code regulations;  therefore, the Company recorded a valuation
allowance in the full amount of the  benefit of $133,000.


For
the nine months ended  September 30, 2002 and 2001, the Company recorded net income tax
benefits of  $3,243,000 and $0. The net benefit for the nine months ended September 30,
2002  consisted of a reduction in its federal valuation allowance in the amount of
$1,833,000, reflecting expected federal income tax refunds related to the  carryback of
2001 tax losses to prior years as a result of changes to the  Internal Revenue Code
enacted during the first quarter of 2002, and $1,410,000  of federal benefits relating to
current year tax losses that the Company expects  it can recover from the carryback of
2002 losses to prior tax periods. No  benefit was recorded in the nine months ended
September 30, 2001, as the Company  did not have carryback availability under the then
existing Internal Revenue  Code regulations; therefore, the Company recorded a valuation
allowance in the  full amount of the benefit of $364,000.


These
tax assets have been  classified in the accompanying balance sheet based upon the Companys
estimate of the refund date.


Note 6  Recently Issued Accounting
Standards:


On May
1, 2002, the Financial  Accounting Standards Board (FASB) issued Statement of
Financial  Accounting Standard (FAS) No. 145, Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections. This Statement rescinds SFAS No. 4, Reporting Gains and  Losses
for Extinguishment of Debt, and an amendment of that Statement,  SFAS No. 64, Extinguishments
of Debt Made to Satisfy Sinking-Fund  Requirements. This Statement also rescinds
SFAS No. 44, Accounting  for Intangible Assets of Motor Carriers. This
Statement amends SFAS No.  13, Accounting for Leases, to eliminate an
inconsistency between the  required accounting for sale-leaseback transactions and the
required accounting  for certain lease modifications that have economic effects that are
similar to  sale-leaseback transactions. This Statement also amends other existing
authoritative pronouncements to make various technical corrections, clarify  meanings, or
describe their applicability under changed conditions. The issuance  of this Statement is
not currently expected to have a material impact on the  Companys results of
operations.



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|In
July 2002, the FASB issued  SFAS No. 146, Accounting for Costs Associated with Exit
or Disposal  Activities. This Statement addresses financial accounting and
reporting  for costs associated with exit or disposal activities and nullifies Emerging
Issues Task Force (EITF) Issue 94-3, Liability Recognition for Certain  Employee
Termination Benefits and Other Costs to Exit an Activity (Including  Certain Costs
Incurred in a Restructuring). The issuance of this Statement  is not currently
expected to have a material impact on the Companys  results of operations.

Note 7   Share Repurchase
Program


On
September 20, 2002, the  Company announced that, effective September 23, 2002, its board
of directors  authorized the purchase of up to 750,000 of the Companys outstanding
common shares. Purchases may be made from time to time through March 23, 2003,  except
during certain restricted periods, in open market or privately negotiated  transactions.
As of October 31, 2002, the Company: (i) had 6,421,913 common  shares outstanding; and
(ii) purchased 800 common shares pursuant to this  program at an average per share price
of $1.58. The acquired shares are being  held in treasury to be used for general
corporate purposes.


Note 8   ICM Post Closing
Adjustment


In
September 2001, the  Company acquired certain of the assets of the ICM Education Division
of Computer  Horizons Corp. for $510,950. The acquisition was accounted for as a purchase
and  was included in the Results of Operations in the period ended September 30,  2001.
In accordance with this purchase agreement, the Company made a  post-closing adjustment
and recorded additional goodwill of $135,000 in  connection with the acquisition in the
third quarter of 2002.


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



General



AlphaNet
Solutions, Inc. is  an information technology (IT) professional services firm
providing  a full range of outsourced solutions in two major IT practice areas: IT
Operations and Learning Solutions. IT Operations includes: AlphaNet Technology  SolutionsSM,
which deliversIT projects and services  around networks, servers, desktops,
storage and information security; and  AlphaNet Service Desk SolutionsSM,
which delivers services via its  operations center such as monitoring, management,
hosting, and helpdesk support  for a wide variety of applications. AlphaNet Learning
SolutionsSM offers custom training programs, classroom instruction, and
certification  programs.


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|Our
discussion and analysis  of our interim Financial Condition and Results of Operations
should be read in  conjunction with Part II, Item 7 of our Annual Report on Form 10-K
(Managements Discussion and Analysis of Financial Condition and Results of
Operations) for the year ended December 31, 2001 as filed with the Securities  and
Exchange Commission.


Results
of Operations


Three Months Ended September 30,
2002 Compared To Three Months Ended September 30, 2001


Net
Sales. Net sales decreased by $4.7 million to $6.1 million for the three months
ended  September 30, 2002 from $10.8 million for the three months ended September 30,
2001. The decrease of $4.7 million was primarily due to a reduction in product  sales of
$2.3 million and a reduction in service revenues of $2.4 million. The  decline in product
sales is attributable to our decision to exit the product  business due to the low
margins associated with that business. The downturn in  technology spending has adversely
impacted our professional service revenues.  Increased competition, including from such
firms as Siemens, EDS and IBM Global  Services in such areas as desktop support and
integration services, has resulted  in significant reductions in the services we provide
to certain of our key  customers. We have been unable to secure sufficient new projects
to offset this  decline and, accordingly, our professional service revenues have
declined. See  Risks and Uncertainties-Business Operations at pp. 12-13.


Gross
Profit . For the three months ended September 30, 2002, gross  profit decreased by
$0.8 million to $1.9 million from $2.7 million during the  three months ended September
30, 2001. This decrease was attributable to the  decline in both product sales and
service and support revenue during the three  months ended September 30, 2002. Gross
profit increased by 6.4% to 31.5% in the  three months ended September 30, 2002, up from
25.1% in the three months ended  September 30, 2001. The gross profit percentage on
product sales decreased by  10.2% to 2.3% in the three months ended September 30, 2002,
down from 12.5% in  the three months ended September 30, 2001. Service and support gross
profits  increased by 3.9% to 32.8% in the three months ended September 30, 2002, up from
28.9 % in the three months ended September 30, 2001. For our billable staff, we  recorded
$32,000 of severance compensation costs during the three months ended  September 30,
2002, as compared to $33,000 during the three months ended  September 30, 2001, which has
reduced service and support gross profit in these  periods.


Selling,
General and  Administrative Expenses. Selling, general and administrative  expenses
decreased by $0.4 million to $3.2 million in the three months ended September 30, 2002, down from
$3.6 million in the three months ended September 30, 2001. Selling,  general and
administrative expenses in the the three months ended September 30,  2002 included
$121,000 of severance costs and $315,000 relating to business  consulting and sales
recruiting costs. Selling, general and administrative  expenses in the third quarter of
2001 included $36,000 of severance costs and $0  relating to business consulting and
sales recruiting costs.



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|Interest
income, net.  Due to declining interest rates, interest income, net, totaled $82,000
for the  three months ended September 30, 2002, down from $187,000 in the three months
ended September 30, 2001.


Other
income . In the three months ended September 30, 2001, we  transferred certain of
our employees to EDS, L.L.C. in connection with the  selection of EDS, L.L.C. as a
provider of Help Desk services that we previously  provided to one of our customers. We
received a one-time payment net of expenses  of $417,000 from EDS, L.L.C. which was
recorded as other income in the three  months ended September 30, 2001.


Income
taxes. In the three months ended September 30, 2002 and 2001, we  recorded net
income tax benefits of $576,000 and $0, respectively. The net  benefit (including
valuation allowance adjustments) for the three months in 2002  consisted of federal
income tax refunds, which it is currently expected can be  recovered from the carryback
of 2002 losses to prior tax periods. No benefit was  recorded in the three months ended
September 30, 2001, as we recorded a  valuation allowance in the full amount of the
benefit of $133,000.


Nine Months Ended September 30, 2002
Compared To Nine Months Ended September 30, 2001


Net
Sales. Net sales decreased by $23.8 million to $19.3 million for the nine months
ended  September 30, 2002 from $43.1 million for the nine months ended September 30,
2001. The decrease of $23.8 million was primarily due to a reduction in product  sales of
$11.2 million and a reduction in service revenues of $12.6 million. The  decline in
product sales is attributable to our decision to exit the product  business due to the
low margins associated with that business. The downturn in  technology spending has
adversely impacted our professional service revenues.  Increased competition, including
from such firms as Siemens, EDS and IBM Global  Services in such areas as desktop support
and integration services, has resulted  in significant reductions in the services we
provide to certain of our key  customers. We have been unable to secure sufficient new
projects to offset this  decline and, accordingly, our professional service revenues have
declined. See  Risks and Uncertainties-Business Operations at pp. 12-13.


Gross
Profit. In the nine months ended September 30, 2002, gross profit
decreased by $5.1 million to $5.1 million from $10.2 million during the nine
months ended September 30, 2001. This decrease was primarily attributable to the
decline in both product sales and service and support revenue during the nine
months ended September 30, 2002. Gross profit increased by 2.5% to 26.2% in the
nine months ended September 30, 2002, up from 23.7% for the nine months ended
September 30, 2001. The gross profit percentage on product sales decreased by
4.6% to 8.0% in the nine months ended September 30, 2002, down from 12.6% for
the nine months ended September 30, 2001. Service and support gross profit
increased by 0.1% to 29.0% in the nine months ended September 30, 2002, up from
28.9% for the nine months ended September 30, 2001. For our billable staff, we
recorded $156,000 of severance compensation costs during the nine months ended
September 30, 2002, as compared to $147,000 for the nine months ended September
30, 2001, which has reduced service and support gross profits during these
periods.


Selling,
General and  Administrative Expenses. Selling, general and administrative  expenses
decreased by $3.0 million to $9.1 million in the nine months ended  September 30, 2002,
down from $12.1 million for the nine months ended September 30,  2001. Selling, general and
administrative expenses in the nine months ended  September 30, 2002 included $343,000 of
severance costs, $46,000 of non-employee  stock option charges, $65,000 relating to the
consolidation of our distribution  and configuration facility, and $522,000 relating to
business consulting and  sales recruiting costs. For the nine months ended September 30,
2001, we  recorded $330,000 in severance costs and $0 for non-employee stock option
charges, facility consolidation costs, business consulting and sales recruiting  costs.



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|Interest
income,  net . Due to declining interest rates, interest income, net,  totaled
$274,000 for first nine months ended September 30, 2002, down from  $614,000 for the nine
months ended September 30, 2001.


Other
income . In the nine months ended September 30, 2001, we  transferred certain of our
employees to EDS, L.L.C. in connection with the  selection of EDS, L.L.C. as a provider
of Help Desk services that we previously  provided to one of our customers. We received a
one-time payment net of expenses  of $417,000 from EDS, L.L.C. which was recorded as
other income in the third  quarter of 2001.


Income
taxes. For the nine months ended September 30, 2002 and 2001, we  recorded net
income tax benefits of $3,243,000 and $0, respectively. The net  benefit (including
valuation adjustments) for the nine months ended September  30, 2002 consisted of a
reduction in valuation allowance in the amount of  $1,833,000, reflecting expected
federal income tax refunds related to the  carryback of 2001 tax losses to prior years as
a result of changes to the  Internal Revenue Code enacted during the first quarter of
2002, and $1,410,000  of current year losses that we expect can be recovered from the
carryback of  2002 losses to prior tax periods. No benefit was recorded in the nine
months  ended September 30, 2001 as we recorded a valuation allowance during this period
in the full amount of the benefit of $364,000.


Risks and
Uncertainties


Business
Operations


In
1999, we embarked on an  effort to reposition ourselves from a value-added reseller to a
professional  services company. The competition for low-margin technology products
increased  significantly and, more recently, the demand for technology products has
declined. As a result, we have transitioned to selling services, which have  higher
margins than products, some of which services are related to technology  product orders.
During 2002, we have been selective in accepting product orders.  Since 1999, our product
sales declined from $83.3 million in 1999 to $44.0  million in 2000 and $15.8 million in
2001. In the third quarter of 2002, our  product sales were $0.3 million in the quarter
as compared to $2.5 million in  the third quarter of 2001. For the nine months ended
September 30, 2002, our  product sales were $2.6 million as compared to $13.8 million in
the nine months  ended September 30, 2001. Except for remaining sales of products under
our  contract with the MTA, we expect that our product sales will not be significant.  In
the third quarter of 2002 MTA product sales were $196,000 as compared to  $575,000 in the
third quarter of 2001. For the nine months ended September 30,  2002, MTA product sales
were $882,000, compared to $1,529,000 for the nine  months ended September 30, 2001.


In
January 2002, we entered  into an agency agreement with MoreDirect, Inc., an
internet-based,  business-to-business electronic marketplace which enables information
technology  buyers to efficiently source, evaluate, purchase and track a wide variety of
computer hardware, software and related technology products. This agreement  permits us
to further exit the product business and concentrate on our core  professional service
offerings.


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|Since
1999, our professional  service revenues declined from $53.3 million in 1999, to $46.4
million in 2000  and $35.9 million in 2001. In the three months ended September 30, 2002,
our  professional service revenues decreased by $2.4 million to $5.9 million from  $8.3
million in the three months ended September 30, 2001. In the nine months  ended September
30, 2002, our professional services revenue decreased by $12.6  million to $16.7 million,
down from $29.3 million in the nine months ended  September 30, 2001.


Certain
of our professional  service offerings are dependent on technology product purchases by
our existing  and prospective clients, irrespective of how such clients procure their
products. Accordingly, the downturn in technology spending has adversely  impacted our
professional service revenues. Increased competition, including  from such firms as
Siemens, EDS and IBM Global Services in such areas as  desktop, support and integration
services, has resulted in significant  reductions in the services we provide to certain
of our key customers. We have  been unable to secure sufficient new projects to offset
this decline and,  accordingly, our professional service revenues have declined. Much of
our  business is derived from a concentrated number of key clients. The loss of one  or
more of these key accounts could have a material adverse impact on our  revenue and/or
results of operations. There can be no assurance these negative  trends will not continue
or accelerate.


To
address the reduction in  revenues and resulting operating losses, we are implementing a
plan to increase  our professional service revenues and improve our operating results.
This plan  includes, among other things, strengthening our sales team, productizing our
services offerings and creating a practices-based services business focused on  revenue
generation. In connection with this plan, during the second and third  quarters of 2002
we recruited 14 new senior sales executives in IT operations  and learning solutions to
reconstruct and upgrade our sales, revenue-generating,  and technical capabilities in an
effort to stem the year-over-year decline in  our professional service revenues, increase
penetration of our current customer  base and develop new client relationships. We have
engaged a number of  consultants and external marketing and recruiting firms to assist in
the  evaluation of our business operations and to recruit qualified selling and
technical personnel. The aggregate cost of these items was $522,000 in the second and third quarters
of 2002. These investments and the decline in our revenue will likely  cause us to
continue to incur operating losses for the foreseeable future, which  will be funded
through the use of our cash resources. Notwithstanding these  anticipated investments,
there can be no assurance that our professional  services revenues and results of
operations will not continue to decline.


Our
year-over-year  professional service revenues may continue to decline in the remaining
portion  of 2002 and during 2003 because there is no guarantee that our current clients
will continue to use our services; many of our customers have the right to  terminate
their contracts with us for convenience; the nature of the  arrangements with certain of
our customers is informal; the sales cycle for our  core professional services offerings
is six-to-nine months; we rely upon a  limited number of key sales personnel; and our
clients budgets for IT  services, including IT training and professional
development services, continue  to be constrained. A sustained decline in the demand for
our professional  development services may cause us to evaluate for possible impairment
the  goodwill associated with our acquisition in September 2001 of the assets of the  ICM
Education Division of Computer Horizons Corp. In accordance with the  purchase agreement,
we made a post-closing adjustment and recorded additional  goodwill of $135,000 in
connection with this acquisition in the third quarter of  2002 and, accordingly, at September 30, 2002
the aggregate goodwill associated with this acquisition was $646,000.


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|Stock
Price


Our
common shares are traded  on the Nasdaq National Market under the symbol ALPH. The
trading  price of our common shares is likely to be subject to significant fluctuations
in response to variations in quarterly operating results, the gain or loss of
significant contracts, changes in management, general trends in the industry,
recommendations by industry analysts, the limited trading activity in our stock,  and
other events or factors. The equity markets in general have experienced  extreme price
and volume fluctuations which have affected the market price of  our common shares, as
well as the stock of other technology companies. Often,  price fluctuations are unrelated
to operating performance of the specific  companies whose stock is affected.


On
September 17, 2002, we  were notified by Nasdaq that our common stock had not maintained
a minimum  market value of publicly held shares of $5 million, as required by Marketplace
Rule 4450(a)(2) for continued inclusion on the Nasdaq National Market. We may  regain
compliance by maintaining a minimum market value of publicly held shares  of $5 million
or greater for a minimum of 10 consecutive trading days by  December 16, 2002. In the
event that we do not regain compliance by such date,  we will be granted limited
additional time to resolve the matter with Nasdaq or  may apply to transfer to the Nasdaq
SmallCap Market.


On
September 20, 2002, we  announced that, effective September 23, 2002, our board of
directors authorized  the purchase of up to 750,000 of our outstanding common shares.
Purchases may be  made from time to time through March 23, 2003, except during certain
restricted  periods, in open market or privately negotiated transactions. As of October
31,  2002, we purchased 800 common shares pursuant to this program at an average per
share price of $1.58. The acquired shares are being held in treasury to be used  for
general corporate purposes.


MTA


In
December 1997, we entered  into a $20.4 million contract (the MTA Contract)
with New York City  Transit, an agency of the Metropolitan Transportation Authority of
the State of  New York (the MTA) to furnish and install local and wide-area
computer network components including network and telecommunications hardware,  software
and cabling throughout the MTAs over 200 locations. The aggregate  amount of this
contract was subsequently increased to $20.6 million. We are the  prime contractor on
this project and are responsible for project management,  systems procurement, and
installation. The work is grouped in contiguous  locations and payment, including a
contractually-mandated holdback equal to 5%  of total contract value for one year
following completion of the contract, is  predicated upon achieving specific milestone
events. In the event of default, in  addition to all other remedies at law, the MTA
reserves the right to terminate  our services and complete the MTA Contract itself at our
cost. In the event of  unexcused delay by our company, we may be obligated to pay, as
liquidated  damages, the sum of $100 to $200 per day, per site. While we believe we are
currently performing in accordance with the contract terms, there can be no  assurance
that any such events of default or unexcused delays will not be  asserted. The MTA
Contract is a fixed unit price contract, and the quantities  are approximate, for which
the MTA has expressly reserved the right, for each  item, to direct the amount of
equipment and related installation be increased,  decreased, or omitted entirely on 30
days notice. The MTA has the right to  suspend the work on 10 days notice for up to 90
days and/or terminate the  contract, at any time, on notice, paying only for the work
performed to the date  of termination. The project is subject to the prevailing wage rate
and  classification for telecommunications workers, as determined by the New York  City
Comptrollers Office, over which we have no control, and which is  generally
adjusted in June of each year and may be so adjusted in the future.


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|We
have performed services  and supplied products to the MTA since the inception of the MTA
Contract. The  work performed to date at MTA sites has required greater than the
originally  estimated labor and other costs to complete. In May 1999, we submitted a
formal  request to the MTA for equitable adjustment in the amount of approximately $1.5
million and for a time extension. This request was supplemented with a further
submission in October 1999. In January 2000, the Project Manager for the MTA  Contract
denied our request, thereby triggering our right under the contract to  appeal the
Project Managers denial to the MTAs Dispute Resolution  Office (the DRO).
We filed a Notice of Appeal with the DRO in  February 2000, and pursuant to the DROs
request, filed further written  submissions and participated in an arbitral session with
the DRO subsequent  thereto. In November 2000, the DRO rendered a written decision
denying in full  our Request for Equitable Adjustment and Time Extension. Pursuant to the
terms  of the MTA Contract, in March 2001, we appealed the DROs denial of our
Request to the New York Supreme Court (the Court). On April 22,  2002, the
Court rendered its decision on our appeal, denying all of our claims  for review of the
determination made by the DRO. On May 31, 2002, we filed an  appeal of this decision with
the New York Supreme Court, Appellate Division. We  are currently engaged in discussions
with the MTA with a view to reaching an  amicable resolution of this matter and on
November 1, 2002, filed a motion with  the Court with the consent of counsel for the MTA
to extend our time to perfect  the appeal. There can be no assurance these discussions or
appeals will be  successful.


On
July 19, 2000, the MTA  advised us of a determination by the Bureau of Labor Law (the
Bureau) of the New York City Comptrollers Office, communicated  to the
MTA by letter from the Bureau dated June 22, 2000, that, as of July 1,  2000, the labor
classification for all low voltage cabling carrying voice, data,  video or any
combination thereof is electrician. The Bureaus determination  is based on a New
York State Supreme Court Appellate Division decision dated May  18, 2000. The workers
currently and historically used by us to perform cabling  work have been classified as
telecommunications workers. We believe it is  probable the Bureaus determination
will apply to our cabling activities  under the contract, thereby likely requiring the
reclassification of our  telecommunications workers as electricians retroactive to July
1, 2000. Since  the prevailing wage for electricians is substantially higher than that
for  telecommunications workers, we expect to incur materially increased labor costs  as
a result of the Bureaus determination. On October 16, 2000, the MTA  Project
Manager denied our request for a change order to compensate our company  for the
increased costs it expects to be incurred in connection with the  reclassification of
certain of our telecommunications workers as electricians.  On January 19, 2001, we
initiated a dispute within the meaning of  the applicable federal regulations
governing the MTA Contract by filing a  complaint with the United States Department of
Labor (the Department of  Labor). In our complaint, we requested that the
Department of Labor  adjudicate this dispute, and either issue a determination affirming
that the  prevailing wage rate for telecommunications workers, as originally specified by
the MTA, is the applicable rate for this project, or directing the MTA to  compensate us
for the change in wage classification made during the performance  of the contract in
violation of federal regulations. By letter dated March 12,  2001, the Department of
Labor advised us that, without knowing which, if any,  federal wage decision was included


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|in the
MTA Contract, it is unable to make a  determination that any violation of federal  labor
law has occurred. On February  12, 2002, we were informally advised by the  Department of
Labor that the  Department has concluded that no federal wage  determinations were
included or  required to be included in the MTA Contract because the  project has
insufficient  federal funding to trigger the federal wage regulations. The  Department of
Labor  asserts that our claim is not one that is governed by federal  regulations or one
over which the Department is willing to exercise jurisdiction. On  April 23,  2002, we
received a letter from the Department of Labor dated April 9, 2002  stating that the
Department does not have jurisdiction over the dispute because  it was  advised by the
New York City Comptrollers office that no federal  funds were  provided for the MTA
Contract. We are currently evaluating this  letter and will decide  upon appropriate
action after completing our evaluation.  We have been advised that there  are legitimate
grounds on which the Department  of Labors position as well as the
above-referenced wage reclassification  may be challenged. We are currently evaluating an
appropriate course of action.  There can be no assurance we will be successful, either in
whole or in part, in  our efforts.


Eureka
Broadband


In
February 2001, a  wholly-owned subsidiary of Eureka Broadband Corporation (Eureka),
merged with and into nex-i.com. We previously invested $1.8 million in nex-i.com  Series
A Convertible Participating Preferred Stock (Series A Nex-i.com  Stock). In
connection with this merger, we loaned Eureka $382,000 in  exchange for a promissory note
and received several classes of preferred stock  in exchange for the Series A Nex-i.com
Stock, all of which was converted to  common stock in July 2001. In the fourth quarter of
2001, we wrote off our  remaining investment of $382,000.


Forward-Looking
Statements


Certain
statements are  included in this Quarterly Report on Form 10-Q which are not historical
and are  forward-looking, within the meaning of The Private Securities
Litigation Reform Act of 1995 and may be identified by such terms as  continuing, plan, goal, expect, believe, may, will, and
intend or similar terms. These forward-looking statements may include,
without  limitation, statements regarding possible future growth in the IT markets, the
status of the trends favoring outsourcing of management information systems  (MIS)
functions by large and mid-sized companies, the anticipated  growth and higher margins in
the services and support component of our business,  the timing of the development and
implementation of our new service offerings  and the utilization of such services by our
customers, and trends in future  operating performance. Such forward-looking statements
include risks and  uncertainties, including, but not limited to:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | The
significant decline in demand for our services;
| | - |  | ---------------------------------------------------

| |  |  | Frequent
changes in the executive management of our company;
| | - |  | ------------------------------------------------------------

| |  |  | Our
ability to maintain compliance with the listing requirements for the Nasdaq national
market system;
| | - |  | -------------------------------------------------------------------------------------------------------

| |  |  | The
repositioning of our company as an IT professional services firm and all  expected  and
unexpected costs and events related to such  repositioning, including, among other
things:
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- 16 -
|------

---

| |  |  | Our
investments in sales and marketing may not stem the year-over-year decline in our
revenues or reduce our operating losses,
| | - |  | ------------------------------------------------------------------------------------------------------------------------------

| |  |  | The
substantial  variability  of our  quarterly  operating  results  caused by a variety  of
factors,  some of which are not within our  control,
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Intense
competition from other IT service providers,
| | - |  | ----------------------------------------------------

| |  |  | The
short-term nature of our customers' commitments,
| | - |  | ----------------------------------------------------

| |  |  | Patterns
of capital spending by our customers,
| | - |  | ----------------------------------------------

| |  |  | The
timing, size and mix of product and service orders and deliveries,
| | - |  | ----------------------------------------------------------------------

| |  |  | The
ability of our company to maintain its vendor certifications,
| | - |  | -----------------------------------------------------------------

| |  |  | The
timing and size of new projects,
| | - |  | ------------------------------------

| |  |  | Competitive
pricing factors,
| | - |  | ----------------------------

| |  |  | Market
factors affecting the availability of qualified technical personnel,
| | - |  | ---------------------------------------------------------------------------

| |  |  | The
timing and customer response of new product and service  offerings,
| | - |  | -----------------------------------------------------------------------

| |  |  | Changes
in trends affecting outsourcing of IT services,
| | - |  | -------------------------------------------------------

| |  |  | Disruption
in sources of supply,
| | - |  | --------------------------------

| |  |  | Changes
in product, personnel and other operating costs, and
| | - |  | ------------------------------------------------------------

| |  |  | Industry
and  general economic conditions;
| | - |  | ------------------------------------------

| |  |  | Changes
in technical personnel realized billing and utilization rates;
| | - |  | ----------------------------------------------------------------------

| |  |  | The
intense  competition in the markets for our companys products and services,  which
could result in a decline in margins associated  with the sale of  those products  and
services;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | The
ability to develop, market, provide, and achieve market acceptance of service  offerings
to new and existing customers;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------

| |  |  | Our
ability to attract, hire, train, and retain qualified technical personnel;
| | - |  | ------------------------------------------------------------------------------

| |  |  | Our
substantial reliance on a concentrated number of key customers;
| | - |  | -------------------------------------------------------------------

|- 17 -
|------

---

| |  |  | The right of  many of our customers to terminate their contracts with us for convenience
and  the informal nature of the arrangements  with certain of our key  customers.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Uncertainties  relating to potential acquisitions,
if any, made by our company, such as
our  ability to integrate acquired operations  and retain key customers  and personnel of
the acquired business;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Our reliance on the continued services of key
executive officers and salespersons; and
| | - |  | --------------------------------------------------------------------------------------

| |  |  | Material  risks and uncertainties associated  with the MTA Contract.
| | - |  | --------------------------------------------------------------------

|These
risks and uncertainties  could cause actual results to differ materially from results
expressed or  implied by forward-looking statements contained in the document. These
forward-looking statements speak only as of the date of this document.


Recently
Issued Accounting Standards


On May
1, 2002, the Financial  Accounting Standards Board (FASB) issued Statement of
Financial  Accounting Standard (FAS) No. 145, Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections. This Statement rescinds SFAS No. 4, Reporting Gains and  Losses
for Extinguishment of Debt, and an amendment of that Statement,  SFAS No. 64, Extinguishments
of Debt Made to Satisfy Sinking-Fund  Requirements. This Statement also rescinds
SFAS No. 44, Accounting  for Intangible Assets of Motor Carriers. This
Statement amends SFAS No.  13, Accounting for Leases, to eliminate an
inconsistency between the  required accounting for sale-leaseback transactions and the
required accounting  for certain lease modifications that have economic effects that are
similar to  sale-leaseback transactions. This Statement also amends other existing
authoritative pronouncements to make various technical corrections, clarify  meanings, or
describe their applicability under changed conditions. The issuance  of this Statement is
not currently expected to have a material impact on the  Companys results of
operations.


In
July 2002, the FASB issued  SFAS No. 146, Accounting for Costs Associated with Exit
or Disposal  Activities. This Statement addresses financial accounting and
reporting  for costs associated with exit or disposal activities and nullifies Emerging
Issues Task Force (EITF) Issue 94-3, Liability Recognition for Certain  Employee
Termination Benefits and Other Costs to Exit an Activity (Including  Certain Costs
Incurred in a Restructuring). The issuance of this Statement  is not currently
expected to have a material impact on our results of  operations.


Liquidity and
Capital Resources


Cash
and cash equivalents  decreased by $1.2 million to $22.6 million at September 30, 2002
from $23.8  million at December 31, 2001. Working capital increased by $0.3 million to
$24.1  million at September 30, 2002 from $23.8 million at December 31, 2001.



- 18 -
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Cash
used in operating  activities of $1.0 million reflects a decrease in accounts receivable
due to  monies collected from the MTA as well as an income tax refund collected in the
third quarter of 2002 offset by cash operating losses and reductions of accounts  payable
and accrued expenses. Our days sales outstanding in accounts receivable  increased to 101
days at September 30, 2002 from 73 days at December 31, 2001,  resulting primarily from
delays in collecting amounts due from the MTA Contract.  Excluding MTA receivables, days
sales outstanding in accounts receivable at  September 30, 2002 was 58 days. We expect to
experience continued delays in  collecting amounts due under the MTA Contract, including
a  contractually-mandated holdback equal to 5% of total contract value for one year
following completion of the contract. Cash used in investing activities of  $214,000
included our capital expenditures for the first nine months of 2002 of  $79,000 and a
post-closing payment due to Computer Horizons Corp. of $135,000 in  connection with the
September 2001 acquisition of the assets of the ICM  Education Division.


Cash
provided and utilized by  financing activities included a reduction of $8,000 for
repayment of capital  lease obligations and a reduction of $22,000 for the purchase of
our common  stock in connection with our share repurchase program.


Effective
September 23, 2002,  we implemented a share repurchase program authorizing the purchase
of up to  750,000 of our outstanding common shares. Purchases may be made from time to
time through March 23, 2003, except during certain restricted periods, in open  market or
privately negotiated transactions. As of October 31, 2002, we  purchased 800 common
shares pursuant to this program at an average per share  price of $1.58. The acquired
shares are being held in treasury to be used for  general corporate purposes.


During
the first nine months  of 2001, employees purchased shares of stock for approximately
$79,000 under the  Employee Stock Purchase Plan, which was suspended in September 2001.


We
purchased certain  inventory and equipment through a financing arrangement with IBM
Credit  Corporation. At September 30, 2002, there was an outstanding balance of
approximately $21,000 to IBM Credit Corporation under this arrangement.  Obligations
under this financing arrangement are collateralized by the current  inventory balance
purchased from IBM through September 30, 2002. The current  credit limit with IBM Credit
Corporation is $300,000.


To
address the reduction in  revenues and resulting operating losses, we are implementing a
plan to increase  our professional service revenues and improve our operating results.
This plan  includes, among other things, strengthening our sales team, productizing our
services offerings and creating a practices-based services business focused on  revenue
generation. In connection with this plan, during the second and third  quarters of 2002
we recruited 14 new senior sales executives in IT operations  and learning solutions to
reconstruct and upgrade our sales, revenue-generating  and technical capabilities in an
effort to stem the year-over-year decline in  our professional service revenues, increase
penetration of our current customer  base and develop new client relationships. We have
engaged a number of  consultants and external marketing and recruiting firms to assist in
the  evaluation of our business operations and to recruit qualified selling and
technical personnel. The aggregate cost of these items in the second and third quarters of  2002 was
$522,000. These investments and the decline in our revenue will likely  cause us to
continue to incur operating losses for the foreseeable future, which  will be funded
through the use of our cash resources. Notwithstanding these  anticipated investments,
there can be no assurance that our professional  services revenues will not continue to
decline.


- 19 -
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|We
believe that our available  funds, together with existing and anticipated credit
facilities, will be  adequate to satisfy our current and planned operations for at least
the next 12  months.


Item 3.      Quantitative
and  Qualitative Disclosures About Market Risk.


Not
applicable.




Item 4.     
Controls and Procedures.


Within
the 90 days prior to  the date of this report, we carried out an evaluation, under the
supervision and  with the participation of our management, including our president and
chief  executive officer and our chief financial officer, of the effectiveness of the
design and operation of our disclosure controls and procedures pursuant to  Exchange Act
Rule 13a-14. Based upon the evaluation, they concluded that our  disclosure controls and
procedures are effective in timely alerting them to  material information relating to our
company (including its consolidated  subsidiaries) required to be included in this
report. There have been no  significant changes in our internal controls or in other
factors that could  significantly affect internal controls subsequent to the date of the
evaluation.




- 20 -
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|PART II.  OTHER
INFORMATION


Item 1.  Legal Proceedings


In
connection with our ongoing disputes with the MTA  concerning a contract entered into
with the MTA in December 1997, we have filed  certain legal proceedings as discussed in
Part I, Item 2 of this Report  (Managements Discussion and Analysis of Financial
Condition and Results of  Operations) at pp. 14-16.


On March 18, 2002, we received a copy of a Complaint  filed by a current and a former
employee in the Superior Court of New Jersey,  Law Division (Bergen County) against us
and certain of our current and former  employees alleging employment-related claims. The
plaintiffs are seeking  compensatory and punitive damages in an unspecified amount,
attorneys fees  and costs of suit. On July 15, 2002, we filed an Answer to the
Complaint. On  October 22, 2002, we received a copy of an Amended Complaint filed by a
new  counsel representing the aforementioned current employee, as well as another  former
employee, in the Superior Court of New Jersey, Law Division (Bergen  County) alleging
substantially the same claims. We are in the process of  preparing an Answer to the
Amended Complaint. These suits are in the early  stages of discovery. We and the named
individual defendants believe they have  meritorious defenses to the plaintiffs claims
and are prepared to defend  against them aggressively.


We
have no knowledge of any other material  litigation to which we are a party or to which
any of our property is subject.


Item 4.       Submission of
Matters to a Vote by Securities Holders.


Our Annual Meeting of Shareholders
(the  Meeting) was held on July 31, 2002.


There
were present at the Meeting in person or by  proxy shareholders holding an aggregate of
6,084,497 common shares of a total  number of 6,583,413 common shares issued, outstanding
and entitled to vote at  the Meeting. The results of the vote taken at the Meeting with
respect to each  nominee for director were as follows:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Nominees            | Votes Cast        For | Votes                    
Withheld
|------------------- | --------------------- | ----------------------------------
|Stan Gang           |                       |                                   
|Richard G. Erickson |                       |                                   
|Michael Gang        |                       |                                   
|Ira Cohen           |                       |                                   
|Thomas F. Dorazio   |                       |                                   
|Doreen A. Wright    |                       |                                   

|- 21 -
|------

---

|A vote
of the shareholders was taken at the Meeting  on the proposal to ratify the action of our
board of directors in adopting an  amendment to our 1995 Stock Plan (the Plan).
The Plan provides for  awards of incentive stock options (ISOs),
non-statutory stock  options, stock purchase rights and restricted stock to officers and
key  employees of our company. Under the Plan, an aggregate of 1,500,000 shares of
Common Stock is currently available for issuance, subject to certain adjustments  as set
forth in the Plan. Such shares may be either authorized but unissued  shares or
reacquired common shares. Unless earlier terminated by the board of  directors, the Plan
will terminate on August 25, 2005, 10 years after the  effective date of the Plan. If an
option expires or becomes unexercisable for  any reason without having been exercised in
full, the unpurchased shares that  were subject to such option shall, unless the Plan has
been terminated, become  available for future grant under the Plan.


In May 2002, the board of directors amended the Plan  to increase the number of
authorized shares of common shares available for  issuance under the Plan from 1,000,000
to 1,500,000 shares, subject to  shareholder approval at the Meeting. Any options granted
with respect to the  500,000 additional shares between May 2002 board action and the date
of  shareholder ratification were treated as ISOs if they were intended to be ISOs  at
the time of grant. Had the amendment increasing the number of available  shares not been
ratified by the shareholders, then the 500,000 additional shares  would still have been
available for issuance under the Plan, but any options  granted with respect thereto
would have been non-statutory stock options, as  opposed to ISOs.


The
result of the vote concerning the proposal to  ratify the amendment to the Plan was as
follows:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For     |  | 2,487,925 | 
| | ------- |  | --------- | 
| | Against |  | 747,179   | 
| | Abstain |  | 489,649   | 

|A vote
of the  shareholders  was taken at  the  Meeting  on the  proposal  to  approve  and
ratify  the  appointment  of  PricewaterhouseCoopers  LLP as  our  independent
accountants  for the year  ending  December  31,  2002.  The  result of the vote on this
proposal  was as follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For     |  |  | 6,063,463 | 
| | ------- |  |  | --------- | 
| | Against |  |  | 12,935    | 
| | Abstain |  |  | 8,099     | 

|Item
 6.     Exhibits and Reports on Form 8-K.
|----------------------------------------------

|(a) |  | Exhibits.
|--- |  | ---------

| |  | None.
| |  | -----

|- 22 -
|------

---

|(b) |  | Reports
on Form 8-K.
|--- |  | --------------------

| |  | On July
18, 2002, September  10, 2002 and September 23, 2002, we filed with the Commission
current reports on  Form 8-K reporting  events under Item 5  Other Events.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|- 23 -
|------

---

|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 thereunto duly authorized.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DATE:  November 12, 2002 |  | ALPHANET SOLUTIONS, INC.By:  RICHARD G. ERICKSON 
Richard G. EricksonPresident and Chief Executive Officer(Principal Executive Officer)
|------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------

|DATE:  November 12, 2002 |  | By:  WILLIAM S. MEDVE
William S. MedveExecutive Vice President, Chief Financial Officerand Treasurer(Principal Financial and Accounting Officer)
|------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------

*Mr.
Erickson currently serves as President and Chief Executive Officer of AlphaNet Solutions,
Inc. in a consulting capacity through New England Associates, LLC, a professional
services turnaround consultancy of which he is president.

|- 24 -
|------

---

|CERTIFICATION


I, Richard G. Erickson, certify that:
|-----------------------------------------------------

|1. |  | I
have reviewed this quarterly report on Form 10-Q of AlphaNet Solutions, Inc.;
|-- |  | -------------------------------------------------------------------------------

|2. |  | Based
on my knowledge, this  quarterly report does not contain any untrue statement of a
material fact or  omit to state a material fact necessary to make the statements made, in
light of  the circumstances under which such statements were made, not misleading with
respect to the period covered by this quarterly report;
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Based
on my knowledge, the  financial statements, and other financial information included in
this quarterly  report, fairly present in all material respects the financial condition,
results  of operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report;
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | The
registrants other  certifying officer and I are responsible for establishing and
maintaining  disclosure controls and procedures (as defined in Exchange Act Rules 13a-14
and  15d-14) for the registrant and we have:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) |  | designed
such disclosure  controls and procedures to ensure that material information relating to
the  registrant, including its consolidated subsidiaries, is made known to us by  others
within those entities, particularly during the period in which this  quarterly report is
being prepared;
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) |  | evaluated
the effectiveness of the registrant's  disclosure controls and procedures as of a date
within 90 days prior to the filing  date of this quarterly report (the "Evaluation
Date"); and
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) |  | presented
in this quarterly report our conclusions about the  effectiveness of the disclosure
controls and procedures based on our  evaluation as of the Evaluation Date;
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | The
registrants other  certifying officer and I have disclosed, based on our most
recent evaluation, to  the registrants auditors and the audit committee of
registrants  board of directors:
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) |  | all
significant  deficiencies in the design or operation of internal controls which could
adversely affect the registrant's ability  to record,  process,  summarize and report
financial  data and have  identified for the  registrants  auditors any  material
weaknesses in internal controls; and
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) |  | any
fraud,  whether or not material,  that involves  management or other employees who have a
significant  role in the registrants  internal controls; and
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | The
registrants other  certifying officer and I have indicated in this quarterly report
whether or not  there were significant changes in internal controls or in other factors
that  could significantly affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date:  November 12, 2002 |  | RICHARD G. ERICKSON
Richard G. EricksonPresident and Chief Executive Officer(Principal Executive Officer)
|------------------------ |  | -----------------------------------------------------------------------------------------------------------------------

|- 24 -
|------

---

|CERTIFICATION


I, William S. Medve, certify that:
|--------------------------------------------------

|1. |  | I
have reviewed this quarterly report on Form 10-Q of AlphaNet Solutions, Inc.;
|-- |  | -------------------------------------------------------------------------------

|2. |  | Based
on my knowledge, this  quarterly report does not contain any untrue statement of a
material fact or  omit to state a material fact necessary to make the statements made, in
light of  the circumstances under which such statements were made, not misleading with
respect to the period covered by this quarterly report;
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Based
on my knowledge, the  financial statements, and other financial information included in
this quarterly  report, fairly present in all material respects the financial condition,
results  of operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report;
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | The
registrants other  certifying officer and I are responsible for establishing and
maintaining  disclosure controls and procedures (as defined in Exchange Act Rules 13a-14
and  15d-14) for the registrant and we have:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) |  | designed
such disclosure  controls and procedures to ensure that material information relating to
the  registrant, including its consolidated subsidiaries, is made known to us by  others
within those entities, particularly during the period in which this  quarterly report is
being prepared;
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) |  | evaluated
the effectiveness of the registrant's  disclosure controls and procedures as of a date
within 90 days prior to the filing  date of this quarterly report (the "Evaluation
Date"); and
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) |  | presented
in this quarterly report our conclusions about the  effectiveness of the disclosure
controls and procedures based on our  evaluation as of the Evaluation Date;
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | The
registrants other  certifying officer and I have disclosed, based on our most
recent evaluation, to  the registrants auditors and the audit committee of
registrants  board of directors:
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) |  | all
significant  deficiencies in the design or operation of internal controls which could
adversely affect the registrant's ability  to record,  process,  summarize and report
financial  data and have  identified for the  registrants  auditors any  material
weaknesses in internal controls; and
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) |  | any
fraud,  whether or not material,  that involves  management or other employees who have a
significant  role in the registrants  internal controls; and
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | The
registrants other  certifying officer and I have indicated in this quarterly report
whether or not  there were significant changes in internal controls or in other factors
that  could significantly affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date:  November 12, 2002 |  | WILLIAM S. MEDVE
William S. MedveExecutive Vice President, Chief Financial Officer and Treasurer(Principal Financial and Accounting Officer)
|------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|- 25 -
|------