<PAGE>



                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q


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

                For the quarterly period ended November 29, 1998

                                       or

[   ]      Transition report pursuant to section 13 or 15(d) of the Securities
           Exchange Act of 1934 for the transition period
           from ___________________ to ___________________

                         Commission file number 1-11344

                       INTERMAGNETICS GENERAL CORPORATION
         --------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

               New York                                      14-1537454  
-------------------------------                           -------------------- 
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                           Identification No.)

            450 Old Niskayuna Road, PO Box 461, Latham, NY 12110-0461
         --------------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (518) 782-1122
         --------------------------------------------------------------
              (Registrant's telephone number, including area code)



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


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                   Yes    x      No       .
                                       -------     -------

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.

Common Stock, $.10 par value - 12,346,322 as of December 31, 1998.



<PAGE>


                       INTERMAGNETICS GENERAL CORPORATION

                                    CONTENTS


PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>

Item 1:  Financial Statements:

<S>                                                                                                  <C>
         Consolidated Balance Sheets - November 29, 1998 and May 31, 1998................................3

         Consolidated Statements of Income - Three Months and Six Months Ended
           November 29, 1998 and November 23, 1997.......................................................5

         Consolidated Statements of Cash Flows - Six Months Ended November 29, 1998
         and November 23, 1997...........................................................................6

         Notes to Consolidated Financial Statements......................................................7

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

PART II - OTHER INFORMATION.............................................................................17

SIGNATURES..............................................................................................18

</TABLE>

                                       2

<PAGE>


INTERMAGNETICS GENERAL CORPORATION

ITEM 1: FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>

                                                                        November 29,       May 31,
                                                                          1998               1998
                                                                     ---------------    ---------------
                                                                      (Unaudited)
<S>                                                                   <C>                <C>  
ASSETS
CURRENT ASSETS
  Cash and short-term investments                                           $ 3,550            $ 2,993
  Trade accounts receivable, less allowance                                              
    (November 29 - $539; May 31 - $350)                                      20,112             14,802
  Costs and estimated earnings in excess of
    billings on uncompleted contracts                                         1,820              4,660
  Inventories:                                                                           
    Finished products                                                           966              1,045
    Work in process                                                          15,559             18,313
    Materials and supplies                                                   11,082             13,491
                                                                     ---------------    ---------------
                                                                             27,607             32,849

  Prepaid expenses and other                                                  6,807              5,006
                                                                     ---------------    ---------------
    TOTAL CURRENT ASSETS                                                     59,896             60,310

PROPERTY, PLANT AND EQUIPMENT
  Land and improvements                                                       1,479              1,479
  Buildings and improvements                                                 16,619             16,604
  Machinery and equipment                                                    39,234             39,421
  Leasehold improvements                                                        650                649
                                                                     ---------------    ---------------
                                                                             57,982             58,153
  Less allowances for depreciation and amortization                          34,533             32,445
                                                                     ---------------    ---------------
                                                                             23,449             25,708
  Equipment in process of construction                                        2,873              2,231
                                                                     ---------------    ---------------
                                                                             26,322             27,939

INTANGIBLE AND OTHER ASSETS
  Available for sale securities                                               1,857              3,450
  Other investments                                                           6,290              5,178
  Investment in affiliates                                                    7,092              7,564
  Notes receivable from affiliate                                             3,090              2,476
  Excess of cost over net assets acquired, less
    accumulated amortization (November 29 - $1,840; May 31 - $1,166)         18,292             18,966
  Other assets                                                                1,568              1,893
                                                                     ---------------    ---------------

    TOTAL ASSETS                                                           $124,407           $127,776
                                                                     ===============    ===============
</TABLE>


                                       3

<PAGE>



INTERMAGNETICS GENERAL CORPORATION

<TABLE>
<CAPTION>

CONSOLIDATED BALANCE SHEETS, Continued
(Dollars in Thousands)

LIABILITIES AND SHAREHOLDERS' EQUITY                                      November 29,           May 31,
                                                                              1998                 1998
                                                                       -------------------   -----------------
                                                                          (Unaudited)

<S>                                                                   <C>                     <C>     
CURRENT LIABILITIES
  Current portion of long-term debt                                            $  280               $  272 
  Note payable                                                                  1,250                    -
  Accounts payable                                                              5,485                6,076
  Salaries, wages and related items                                             3,891                3,647
  Customer advances and deposits                                                1,563                  298
  Product warranty reserve                                                      1,092                  996
  Accrued income taxes                                                          1,212                2,411
  Other liabilities and accrued expenses                                        1,476                1,117
                                                                       --------------          -----------
    TOTAL CURRENT  LIABILITIES                                                 16,249               14,817
                                                                                             
LONG-TERM DEBT, less current portion                                           28,745               28,833
DEFERRED INCOME TAXES                                                               -                  325
                                                                                             
SHAREHOLDERS' EQUITY                                                                         
  Preferred Stock, par value $.10 per share:                                                 
    Authorized - 2,000,000 shares                                                            
    Issued and outstanding -                                                    6,999                6,999
    (November 29, 1998 - 69,992 shares;                                                      
    May 31, 1998 - 69,992 shares)
  Common Stock, par value $.10 per share:                    
    Authorized - 40,000,000 shares                                                           
    Issued and outstanding (including shares in treasury):                                   
      November 29, 1998 - 13,466,880 shares                                                  
      May 31, 1998 - 13,334,280 shares                                          1,347                1,334
  Additional paid-in capital                                                   81,692               81,008
  Accumulated deficit                                                          (1,525)              (1,081)
  Accumulated other comprehensive income (loss)                                  (138)                 496
                                                                       --------------          -----------
                                                                               88,375               88,756
  Less cost of Common Stock in treasury                                                      
    (November 29, 1998 - 1,037,673 shares;                                                   
    May 31, 1998 - 562,175 shares)                                             (8,962)              (4,955)
                                                                       --------------          -----------
                                                                               79,413               83,801
                                                                       --------------          -----------
                                                                                             
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                               $124,407             $127,776 
                                                                       ==============          ===========
</TABLE>

                   
See notes to consolidated financial statements.


                                       4
<PAGE>


INTERMAGNETICS GENERAL CORPORATION
<TABLE>
<CAPTION>

CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)

                                                                  Three Months Ended                     Six Months Ended
                                                         ------------------------------------- ------------------------------------
                                                         November 29, 1998  November 23, 1997  November 29, 1998  November 23, 1997
                                                         -----------------  -----------------  -----------------  -----------------
<S>                                                       <C>                 <C>               <C>                <C>    
Net sales                                                         $25,963             $22,215           $52,457            $43,235

Cost of products sold                                              16,630              14,445            33,343             27,417
Inventory written off in restructuring - Note D                     1,554                   -             1,554                  -
                                                         ----------------- ------------------- -----------------  -----------------
                                                                   18,184              14,445            34,897             27,417
                                                         ----------------- ------------------- -----------------  -----------------

Gross Margin                                                        7,779               7,770            17,560             15,818


Product research and development                                    1,392               1,953             3,248              4,066
Marketing, general and administrative                               5,683               4,625            11,154              9,537
Amortization of intangible assets                                     337                 163               674                326
Restructuring charges - Note D                                      2,398                   -             2,398                  -
                                                         ----------------- ------------------- -----------------  -----------------
                                                                    9,810               6,741            17,474             13,929
                                                         ----------------- ------------------- -----------------  -----------------

Operating income (loss) - Note D                                   (2,031)              1,029                86              1,889
Interest and other income                                             405                 479               777                965
Interest and other expense                                           (630)               (542)           (1,157)            (1,045)
Equity in net income (loss) of unconsolidated affiliate              (242)                  4              (472)               (83)
                                                         ----------------- ------------------- -----------------  -----------------
  Income (loss) before income taxes                                (2,498)                970              (766)             1,726
Provision (benefit) for income taxes                               (1,049)                378              (322)               673
                                                         ----------------- ------------------- -----------------  -----------------

NET INCOME (LOSS)                                                 $(1,449)           $    592            $ (444)           $ 1,053
                                                         ================= =================== =================  =================

Earnings (loss) per Common Share:
  Basic                                                           $ (0.12)            $  0.05           $ (0.04)           $  0.08
                                                         ================= =================== =================  =================
  Diluted                                                         $ (0.12)            $  0.05           $ (0.04)           $  0.08
                                                         ================= =================== =================  =================
</TABLE>

See Note D of Notes to Financial Statements for a description of the
restructuring charges included herein.
---------------------


                                       5


<PAGE>


INTERMAGNETICS GENERAL CORPORATION
<TABLE>
<CAPTION>

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)                                                                                    Six Months Ended
                                                                                    ---------------------------------------
                                                                                      November 29,         November 23,
                                                                                          1998                 1997
                                                                                    ------------------   ------------------
OPERATING ACTIVITIES
<S>                                                                                             <C>                <C>    
Net income (loss)                                                                               ($444)             $ 1,053
Adjustments to reconcile net income (loss) to net cash provided by
  operating activities:
    Non-cash restructuring charges                                                              3,952                    -
    Depreciation and amortization                                                               2,850                2,479
    Non-cash expense from warrants issued                                                           -                  300
    Equity in net loss of unconsolidated affiliates                                               472                   83
    Gain on sale of assets                                                                          -                  (91)
    Change in operating assets and liabilities:
      Increase in accounts receivable and costs and estimated
         earnings in excess of billings on uncompleted contracts                               (2,608)              (1,528)
      (Increase) decrease in inventories and prepaid expenses and other                         2,162               (2,486)
      Increase (decrease) in accounts payable and accrued expenses                               (748)                 158
      Change in foreign currency translation adjustments and other                                359                   44
                                                                                    ------------------   ------------------
   NET CASH PROVIDED BY OPERATING ACTIVITIES                                                    5,995                   12

INVESTING ACTIVITIES
Purchases of property, plant and equipment                                                     (1,572)              (1,631)
Proceeds from the sale of assets                                                                    -                   93
Purchases of other investments                                                                 (1,112)                   -
Investment in and advances to unconsolidated affiliates                                          (614)              (1,219)
                                                                                    ------------------   ------------------
    NET CASH USED IN INVESTING ACTIVITIES                                                      (3,298)              (2,757)

FINANCING ACTIVITIES
Net proceeds from short-term borrowings                                                         1,250                    -
Proceeds from the sale of warrants                                                                                     120
Purchase of Treasury Stock                                                                     (3,426)              (1,108)
Proceeds from sales of Common Stock                                                               116                  504
Principal payments on note payable and long-term debt                                             (80)                 (91)
                                                                                    ------------------   ------------------
    NET CASH USED IN FINANCING ACTIVITIES                                                      (2,140)                (575)
                                                                                    ------------------   ------------------


INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS                                            557               (3,320)

CASH AND SHORT-TERM INVESTMENTS AT BEGINNING OF PERIOD                                          2,993               12,667
                                                                                    ------------------   ------------------

CASH AND SHORT-TERM INVESTMENTS AT END OF PERIOD                                               $3,550               $9,347
                                                                                    ==================   ==================
</TABLE>


See notes to consolidated financial statements.

                                       6

<PAGE>


INTERMAGNETICS GENERAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note A - General

         In the opinion of Management, the accompanying unaudited consolidated
financial statements contain all adjustments, which are of a normal recurring
nature, necessary to present fairly the financial position at November 29, 1998
and the results of operations and cash flows for the six-month periods ended
November 29, 1998 and November 23, 1997. See Note D for a description of the
restructuring charges included in these financial statements. The results for
the three months and six months ended November 29, 1998 are not necessarily
indicative of the results to be expected for the entire year. The Consolidated
Financial Statements and Management's Discussion and Analysis of Financial
Condition and Results of Operations should be read in conjunction with the
Company's consolidated financial statements for the year ended May 31, 1998,
filed on Form 10-K on August 28, 1998.

         Certain prior year financial information has been reclassified to
conform to current year presentation.

Note B - Earnings (Loss) Per Share

A summary of the shares used in the calculation of earnings (loss) per share is
shown below:
<TABLE>
<CAPTION>

(Dollars in Thousands, Except Per Share Amounts)

                                                                    Three Months Ended
                                                    ---------------------------------------------------
                                                       November 29, 1998          November 23, 1997
                                                    ------------------------   ------------------------
                                                    
<S>                                                               <C>                           <C>   
  Income (loss) available to common shareholders                  ($ 1,449)                     $ 592 
                                                    
  Weighted average shares                                        12,414,537                 12,753,644 
                                                    
  Plus incremental shares from assumed 
          exercise of Stock options                                      -                     314,339
                                                                 ----------                -----------
                                                    
  Dilutive potential common shares                                       -                           - 
                                                                 ----------                -----------
                                                    
  Adjusted weighted average shares                               12,414,537                 13,067,983
                                                                 ==========                ===========
                                                    
  Earnings (loss) per common share:                 
          Basic                                                    ($ 0.12)                    $ 0.05 
                                                                 ==========
                                                                                            ==========
          Diluted                                                  ($ 0.12)                    $ 0.05 
                                                                 ==========                 ==========
                                                    
</TABLE>

                                       7
<PAGE>
<TABLE>
<CAPTION>

(Dollars in Thousands, Except Per Share Amounts)

                                                                    Three Months Ended
                                                    ---------------------------------------------------
                                                       November 29, 1998          November 23, 1997
                                                    ------------------------   ------------------------
                                                    
<S>                                                               <C>                           <C>   

  Income (loss) available to common shareholders                  ($    444)                   $ 1,053 

  Weighted average shares                                        12,515,462                 12,748,415 

  Plus incremental shares from assumed 
          exercise of Stock options                                       -                    339,821 
                                                                 ----------                 ----------

  Dilutive potential common shares                                        -                          -
                                                                 ----------                 ----------

  Adjusted weighted average shares                               12,515,462                 13,088,236 
                                                                 ==========                 ==========

  Earnings (loss) per common share:
          Basic                                                     ($ 0.04)                    $ 0.08 
                                                                 ==========
                                                                                            ==========
          Diluted                                                   ($ 0.04)                    $ 0.08 
                                                                 ==========                 ==========
</TABLE>

         Diluted shares in 1997 include the potential dilutive effect of stock
options. Shares issuable upon exercise of warrants and conversion of convertible
subordinated debentures, and in 1998 convertible preferred stock and stock
options, have been excluded from the calculation, as their effect would be
antidilutive. Shares for the periods presented have been adjusted to reflect a
2% stock dividend distributed September 17, 1998 as described in Note E.

         Income (loss) available to common shareholders includes charges of
$2,292,000, representing the after-tax effect of a restructuring charge for the
three months and six months ended November 29, 1998. See Note D for details.

Note C - Comprehensive Income

         Effective June 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income." This Statement
requires that all items recognized under accounting standards as components of
comprehensive income or loss be reported in an annual financial statement that
is displayed with the same prominence as other annual financial statements. This
Statement also requires that an entity classify items of other comprehensive
income or loss by their nature in annual financial statements.


                                       8
<PAGE>
         The Company's total comprehensive income (loss) was as follows:
<TABLE>
<CAPTION>

         (Dollars in Thousands)
                                                       Three Months Ended              Six Months Ended
                                                   ---------------------------    ---------------------------
                                                   Nov 29, 1998  Nov 23, 1997     Nov 29, 1998  Nov 23, 1997

<S>                                                    <C>             <C>           <C>             <C>    
         Net income (loss)                             ($1,449)        $ 592         ($   444)       $1,053 

         Other comprehensive income (loss):

            Unrealized gain (loss) on available-
               for-sale securities, net of                 (60)         (141)            (993)          720 
         related taxes

            Foreign currency translation                   152          (105)             359            44 
                                                       -------      --------          -------        ------
                  Total comprehensive income (loss)    ($1,357)     $    346          ($1,078)       $1,817 
                                                       =======      ========          =======        ======
</TABLE>

Note D - Restructuring

         During the second quarter, the Company received notice from Trex
Medical Corporation ("Trex") that it was not prepared to continue operating
under a distributor agreement under which Trex was to distribute the Company's
permanent magnet-based clinical MRI systems. The Company has filed suit against
Trex for breaching and repudiating the agreement. In November 1998, the Company
decided to exit this business and restructured its operations through the
closure of its Field Effects division, which was engaged in the manufacture and
sale of clinical MRI systems. As a result, the Company recorded a total
restructuring charge of $3,952,000 including liabilities recorded of $922,000,
comprised of the following:

     Inventory write-down included in cost of
       products sold                                               $1,554,000

     Restructuring charges:
          Write-down of equipment to fair value                     1,104,000
          Provision for severance and lease obligations               722,000
          Write-off of other assets                                   237,000
          Other                                                       335,000
                                                                  -----------
                                                                    2,398,000
                                                                  -----------
     Total                                                         $3,952,000
                                                                  ===========

         The Company has terminated its lease, and moved existing equipment and
inventory to storage near its corporate headquarters. All usable equipment has
been transferred to other operations at its book value. Other equipment and
inventory have been written down to estimated realizable value. The Company is
actively engaged in attempting to sell such inventory and equipment. It is
estimated that this would take approximately one year.
 

                                       9
<PAGE>



         The foregoing charges were included in operating income (loss) for the
three-month and six-month periods ended November 29, 1998. Also included were
the following amounts from operations of the Field Effects division:
<TABLE>
<CAPTION>

         (Dollars in Thousands)
                                                       Three Months Ended              Six Months Ended
                                                   ---------------------------    ---------------------------
                                                   Nov 29, 1998  Nov 23, 1997     Nov 29, 1998  Nov 23, 1997
                                                   ------------  ------------     ------------  ------------

<S>                                                      <C>           <C>               <C>          <C>   
         Sales                                           $  -          $ 466             $ 35         $ 559 
         Cost of products sold                              74           465              103           612
                                                       -------       -------          -------       -------
            Gross margin                                   (74)            1              (68)          (53)
         Operating expenses                                529           659            1,261         1,312
                                                       -------       -------          -------       -------
         Operating loss                                ($  603)      ($  658)         ($1,329)      ($1,365)
                                                       =======       =======          =======       =======
</TABLE>

         Exclusive of the foregoing restructuring charges and results of
operations, the operating results of the Company are as follows:

<TABLE>
<CAPTION>

          (Dollars in Thousands)
                                                       Three Months Ended              Six Months Ended
                                                   ---------------------------    ---------------------------
                                                   Nov 29, 1998  Nov 23, 1997     Nov 29, 1998  Nov 23, 1997
                                                   ------------  ------------     ------------  ------------

<S>                                                    <C>           <C>              <C>           <C>     
         Sales                                         $25,963       $21,749          $52,422       $42,676 

         Gross margin                                    9,407         7,769           19,182        15,871 

         Operating income                                2,524         1,687            5,367         3,254 
</TABLE>

         No provision has been made for any possible recovery from Trex.

Note E - Stock Dividend

         On July 21, 1998, the Company declared a 2% stock dividend which was
distributed on all outstanding shares, except Treasury Stock, on September 17,
1998 to all shareholders of record on August 27, 1998. The consolidated
financial statements have been adjusted retroactively to reflect this stock
dividend in all numbers of shares, prices per share and earnings (loss) per
share.

                                       10
<PAGE>


Note F - New Accounting Pronouncements

         In June, 1997, the FASB issued SFAS 131, "Disclosures about Segments of
an Enterprise and Related Information." SFAS 131 establishes standards for the
way public business enterprises are to report information about operating
segments in annual financial statements and requires those enterprises to report
selected information about operating segments in interim financial reports
issued to shareholders, SFAS 131 focuses on a "management approach" concept as
the basis for identifying reportable segments. The management approach is based
on the way that management organizes the segments within the enterprise for
making operating decisions and assessing performance.

         SFAS 131 is effective for fiscal years beginning after December 15,
1997. The Company will comply with the reporting requirements of SFAS 131 for
the fiscal year ending May 30, 1999. Management anticipates that the effect of
the adoption of SFAS 131 will not significantly impact the current presentation
of the Company's segment disclosure as the current reportable segments are
consistent with the "management approach" methodology outlined in SFAS 131.

         In February, 1998, the FASB issued SFAS 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits." SFAS 132 revises employers'
disclosures about pension and other postretirement benefit plans, but does not
change the measurement or recognition of those plans. SFAS 132 is effective for
fiscal years beginning after December 15, 1997. The Company will comply with the
reporting requirements of SFAS 132 for the fiscal year ending May 30, 1999.

         In March, 1998, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position ("SOP") 98-1, "Accounting for the Costs
of Computer Software Developed or Obtained for Internal Use." SOP 98-1 requires
that certain costs related to the development or purchase of internal-use
software be capitalized and amortized over the estimated useful life of the
software. SOP 98-1 also requires that costs related to the preliminary project
stage and post-implementation/operations stage of an internal-use computer
software development project be expensed as incurred. SOP 98-1 is effective for
fiscal years beginning after December 15, 1998. The Company will comply with the
reporting requirements of SOP 98-1 for the fiscal year ending May 28, 2000.
Management anticipates that the adoption of SOP 98-1 will not have a material
effect on the Company's consolidated financial statements.

         In March, 1998, the AICPA issued SOP 98-5, "Reporting on the Costs of
Start-up Activities." SOP 98-5 requires the expensing of certain costs such as
pre-operating expenses and organizational costs associated with a company's
start-up activities. SOP 98-5 is effective for fiscal years beginning after
December 15, 1998. The effect of adoption is required to be accounted for as a
cumulative change in accounting principle. The Company will comply with the
reporting requirements of SOP 98-5 for the fiscal year ending May 28, 2000.
Management anticipates that the adoption of SOP 98-5 will not have a material
effect on the Company's consolidated financial statements.


                                       11
<PAGE>

         In June, 1998, the FASB issued SFAS 133, "Accounting for Derivative
Instruments and Hedging Activities," which establishes accounting and reporting
standards for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities. SFAS 133 is effective
for all fiscal quarters of fiscal years beginning after June 15, 1999.
Management is currently evaluating the impact of SFAS 133 on the Company's
consolidated financial statements.




                                       12


<PAGE>


INTERMAGNETICS GENERAL CORPORATION

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

         The statements contained in this report which are not historical fact
are "forward-looking statements" that involve various important assumptions,
risks, uncertainties and other factors which could cause the Company's actual
results for 1999 and beyond to differ materially from those expressed in such
forward-looking statements. These important factors include, without limitation,
any assumptions, risks, and uncertainties set forth herein, as well as other
assumptions, risks, uncertainties and factors disclosed elsewhere in this report
and in the Company's press releases, shareholders' reports and filings with the
Securities and Exchange Commission, including, but not limited to, the risks
inherent in any litigation, the Company's ability to win greater market
acceptance for FRIGC, as well as continued strength and expansion in its core
wire and MRI magnet markets.

         During the first half and second quarter of fiscal 1999, net sales were
21% and 17%, respectively, higher than in the same periods of fiscal 1998.
Results for the current periods include IGC Polycold Systems, Inc. ("Polycold"),
which was acquired in November, 1997. Gross margin rates declined due to the
write-off of inventory associated with the closing of the Company's Field
Effects ("FE") division following the unilateral cancellation of a marketing
agreement by the exclusive distributor of the FE permanent magnet-based clinical
MRI system. See Note D of Notes to Financial Statements.

         In the first half of fiscal 1999, sales were higher in the Magnetic
Products segment due to increased demand for RF coils and much higher sales of
superconducting materials for MRI, but slightly lower in the second quarter due
to continuing price reductions for MRI magnets. Sales were higher in the
Refrigeration Products segment with the inclusion of Polycold. Exclusive of the
inventory write-off discussed above, gross margin rates increased slightly for
Magnetic Products. Gross margin rates for Refrigeration Products were slightly
lower, despite the inclusion of Polycold, due to a less favorable sales mix and
continued competitive pricing pressures. Excluding the discontinuance of FE,
operating results would have improved substantially, as shown in Note D of Notes
to Financial Statements contained in this report.

         Internal research and development expenses were lower in the first half
and second quarter compared to the same periods of fiscal 1998, as certain
developmental programs were completed and engineering efforts were devoted to
marketing and manufacturing support. Externally-funded programs continued to
decline. Marketing, general and administrative expenses increased in the second
quarter and first half of fiscal 1999 compared to the same period in fiscal 1998
due to the inclusion of Polycold, which more than offset declines in other
business units. In connection with the termination of the FE business
operations, the Company recorded a charge to operations of $2,398,000 relating
to costs associated with present and future expenses necessary to close out the
business unit.


                                       13

<PAGE>

Year 2000 Issues

         The "year 2000 problem" arises because many existing computer programs
("information technology" or "IT"), as well as non-IT systems that use embedded
technology such as microcontrollers or "chips," only use the last two digits to
refer to a year and therefore do not properly recognize that a year that ends
with "00" (i.e. "2000") should follow the year that ends with "99" (i.e.
"1999"). If not corrected, it is possible that many IT and non-IT systems will
fail or create errors. Generally, no one knows the extent of the potential
impact of the year 2000 problem.

State of Readiness:

         The Company has developed and is implementing an assessment and
remediation plan to identify and, if necessary, correct potential year 2000
problems in the following areas:

1.   Computer Systems. The Company is evaluating all desktop and server systems
     for the existence of year 2000 problems using commercial evaluation
     software. This process is approximately 60% complete and is expected to be
     finished by March, 1999. A small number of systems have been identified
     which will require upgrade or replacement. These will be corrected before
     December, 1999.

2.   Business Software. The Company's assessment and remediation plan has
     identified that several of the present business systems are not year 2000
     compliant. The Company has had an ongoing project to install an
     enterprise-wide software system designed to integrate all business
     entities. This project began in 1996. The software and hardware selected
     for this project is year 2000 compliant and is expected to be implemented
     before August, 1999. This represents about a three-month delay from the
     originally expected implementation date of May, 1999.

3.   Non-IT Systems. These include HVAC, communication and security systems, as
     well as tools using embedded chips used in the manufacturing process. The
     Company has completed its evaluation of all HVAC, communication and
     security systems, and has developed replacement or upgrade plans to correct
     the problems incurred. These plans will be completed before the end of
     1999. The Company is also in the process of evaluating tools using embedded
     chips. This evaluation is approximately 70% complete and is expected to be
     finished by June, 1999. Remediation plans will be developed to the extent
     that problems are identified.

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<PAGE>

4.   Business Partners. The Company has requested all of its business partners
     and vendors to describe their state of readiness. While it is difficult to
     predict the impact of year 2000 problems at our business partners and
     vendors, results to date have not indicated any significant problems. This
     process is approximately 50% complete and is expected to be finished by
     May, 1999. The Company intends to remediate any problems that occur in this
     area by qualifying new suppliers or increasing strategic inventory levels
     if new suppliers are not considered practical. Currently, the Company
     believes that it possesses adequate financial resources to provide for such
     additional inventory, however, no assurances can be made.

Costs:

         The Company estimates that the total cost of its assessment and
remediation plan will amount to approximately $2.7 million, which is being
funded through operating cash flows. Included in this amount is approximately $2
million for the replacement of the business systems described above, which is
being capitalized because its purchase and implementation was primarily related
to increases in system functionality. Approximately $1.4 million of the expected
total cost has been expended to date.

Risks and Contingency Plans:

         While the Company expects to achieve full year 2000 compliance before
the end of 1999, it recognizes that there are certain risks that are outside of
its control. Although there have been no problems identified to date, the
Company believes that the greatest risk comes from the possibility that
significant suppliers of materials or services (electricity, telephone, banking,
etc.) will not be year 2000 compliant and that such lack of compliance will
impact delivery of those materials or services. The Company has established, as
part of its year 2000 team, a group representing each business unit which is
tasked with identifying areas where problems could occur, assessing the
likelihood of problems and developing a list of actions which could be taken to
reduce or eliminate such risks. Examples of such actions are increasing
strategic inventories to enable the Company to work through a period where
supply or production is disrupted, maintaining cash on hand to meet payrolls and
the establishment of alternate arrangements for electric power. The Company
expects this group to complete its evaluation of possible actions and report its
findings to management by June, 1999. Management will then select appropriate
actions based on an assessment of the likelihood of a problem and the
practicality, cost and effectiveness of the proposed action.

                                       15
<PAGE>

         During the first half of fiscal 1999, the Company used cash of
$3,298,000 in investing activities, $1,572,000 for machinery and equipment, a
$1,112,000 investment in a refrigeration product company and a $614,000 advance
to an affiliate. Also, the Company used $2,140,000 in financing activities,
primarily for the repurchase of $3,426,000 of Treasury Stock offset by
$1,250,000 in net proceeds provided by short-term borrowings under the Company's
line of credit. These amounts were financed by cash provided from operations of
$6.0 million.

         The Company's capital resource commitments as of December 31, 1998
consist principally of capital equipment commitments of approximately
$1,250,000. The Company has an unsecured line of credit of $25,000,000 which
expires in November, 2000, of which none was in use on December 31, 1998. The
Company believes that it will have sufficient working capital to meet its needs
for the foreseeable future. However, pursuit of large-scale applications in
superconductivity and new refrigerants may require the Company to seek
additional financing in future years.



                                       16
<PAGE>





PART II:  OTHER INFORMATION

Item 4.   Submission of Matters to a Vote of Security Holders

(a)       The November 1998 Annual Meeting of Shareholders of the Company was
          held on November 10, 1998.

(b)       At the Annual Meeting, the Shareholders of the Company elected to the
          Board of Directors all five nominees for director with the following
          vote:
 
                                                                      BROKER  
DIRECTOR                  FOR          AGAINST          ABSTAIN      NON-VOTES
--------------------------------------------------------------------------------
John M. Albertine      11,702,721      280,732            --             --
Edward E. David, Jr.   11,702,405      281,048            --             --
Glenn H. Epstein       11,702,038      281,415            --             --
James S. Hyde          11,702,721      280,732            --             --
Carl H. Rosner         11,712,313      271,140            --             --

 
Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         None

(b)      Reports on Form 8-K

         On November 10, 1998 the Company filed a Form 8-K announcing that it
         had filed suit against Trex Medical Corporation for breach of contract
         and the Company's decision to discontinue the operations of its Field
         Effects division in Tyngsboro, MA.

                                       17
<PAGE>



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.


                       INTERMAGNETICS GENERAL CORPORATION



Dated:   January 12, 1999            By:   /s/ Carl H. Rosner    
                                           -------------------------------------
                                           Carl H. Rosner
                                           Chairman and Chief Executive Officer



Dated:   January 12, 1999            By:   /s/ Michael C. Zeigler    
                                           -------------------------------------
                                           Michael C. Zeigler
                                           Senior Vice President, Finance



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