----

----

| x | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------------|

|   | Delaware                                                      |   | 13-3055012                          |   |
|--------|---------------------------------------------------------------|--------|-------------------------------------|--------|
|   | (State or other jurisdictionof Incorporation or Organization) |   | (I.R.S. EmployerIdentification No.) |   |

|   | 625 North Washington Street, Suite 301, Alexandria, Virginia |   | 22314      |   |
|--------|--------------------------------------------------------------|--------|------------|--------|
|   | (Address of Principal Executive Offices)                     |   | (Zip Code) |   |

|   | (703) 820-2000                                      |   |
|--------|-----------------------------------------------------|--------|
|   | (Registrant's telephone number including area code) |   |

----

| Part I     | Financial Information: | Page No.                                                         |
|------------|------------------------|------------------------------------------------------------------|
|       |                   |                                                             |   |
|       | Item 1.                | Condensed Consolidated Financial Statements                      |   |
|       |                   |                                                             |   |
|       |                   | Condensed Consolidated Balance Sheets                            | 3 |
|       |                   | as of September 30, 2009 (unaudited)                             |   |
|       |                   | and June 30, 2009                                                |   |
|       |                   |                                                             |   |
|       |                   | Condensed Consolidated Statements of Operations                  | 4 |
|       |                   | for the Three Months Ended                                       |   |
|       |                   | September 30, 2009 and 2008 (unaudited)                          |   |
|       |                   |                                                             |   |
|       |                   | Condensed Consolidated Statements of Cash Flows                  | 5 |
|       |                   | for the Three Months Ended                                       |   |
|       |                   | September 30, 2009 and 2008 (unaudited)                          |   |
|       |                   |                                                             |   |
|       |                   | Notes to Condensed Consolidated Financial Statements (unaudited) | 6 |
|       |                   |                                                             |   |
|       | Item 2.                | Management's Discussion and Analysis                             | 9 |
|       |                   | of Financial Condition and Results of Operations                 |   |
|       |                   |                                                             |   |
|       | Item 3.                | Quantitative and Qualitative Disclosures About                   | 13 |
|       |                   | Market Risk                                                      |   |
|       |                   |                                                             |   |
|       | Item 4T.               | Controls and Procedures                                          | 13 |
|       |                   |                                                             |   |
| Part II    | Other Information:     |                                                             |
|       |                   |                                                             |   |
|       | Item 1.                | Legal Proceedings                                                | 13 |
|       | Item 1A.               | Risk Factors                                                     | 13 |
|       | Item 2.                | Unregistered Sales of Equity Securities and Use of Proceeds      | 13 |
|       | Item 3.                | Defaults Upon Senior Securities                                  | 13 |
|       | Item 4.                | Submission of Matters to a Vote of Security Holders              | 13 |
|       | Item 5.                | Other Information                                                | 13 |
|       | Item 6.                | Exhibits                                                         | 14 |
|       |                   |                                                             |   |
|       |                   |                                                             |   |
| SIGNATURES |                   | 15                                                               |
|       |                   |                                                             |   |

----

| COMTEX NEWS NETWORK, INC.   |
|-----------------------------|
| CONSOLIDATED BALANCE SHEETS |

|                                                                                                                   |   | September 30, |        |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------|--------|
|                                                                                                                   |   | 2009          |        |   | 2009     |   |
|                                                                                                                   |   | (Unaudited)   |        |   |     |   |
| ASSETS                                                                                                                 |   |          |        |   |     |   |
|     CURRENT ASSETS:                                                                                |   |          |        |   |     |   |
|         Cash and Cash Equivalents                                              |   | $             | 1,150,370   |   |     | $      | 1,376,634 |   |
|         Investment in Marketable Securities                                    |   |          | 587,769     |   |     |   | 53,318 |   |
|         Accounts Receivable, Net of Allowance for Doubtful Accounts of $66,274 |   |          | 854,217     |   |     |   | 835,362 |   |
|         Prepaid Expenses                                                       |   |          | 17,059      |   |     |   | 5,647 |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
|               TOTAL CURRENT ASSETS               |   |          | 2,609,415   |   |     |   | 2,270,961 |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
|     PROPERTY AND EQUIPMENT, NET                                                                    |   |          | 372,462     |   |     |   | 385,293 |   |
|     INVESTMENTS                                                                                    |   |          | 106,426     |   |     |   | 106,426 |   |
|     DEPOSITS AND OTHER ASSETS                                                                      |   |          | 71,928      |   |     |   | 71,928 |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
|     DEFERRED INCOME TAX ASSET, NET OF VALUATION                                                    |   |          |        |   |     |   |   |   |
|     ALLOWANCE OF $1,703,746 and $1,723,021, respectively                                           |   |          | -           |   |     |   | - |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
|               TOTAL ASSETS                       |   | $             | 3,160,231   |   |     | $      | 2,834,608 |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                   |   |          |        |   |     |   |   |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
|     CURRENT LIABILITIES:                                                                           |   |          |        |   |     |   |   |   |
|         Accounts Payable                                                       |   | $             | 437,900     |   |     | $      | 376,354 |   |
|         Other Accrued Expenses                                                 |   |          | 393,360     |   |     |   | 212,542 |   |
|         Accrued Payroll Expenses                                               |   |          | 100,871     |   |     |   | 197,340 |   |
|         Deferred Revenue                                                       |   |          | 108,596     |   |     |   | 95,028 |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
|               TOTAL LIABILITIES                  |   |          | 1,040,727   |   |     |   | 881,264 |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 2)                                                                                 |   |          |        |   |     |   |   |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
| STOCKHOLDERS' EQUITY:                                                                                                  |   |          |        |   |     |   |   |   |
|       Preferred Stock, $0.01 Par Value - Shares Authorized:                              |   |          |        |   |     |   |   |   |
|       5,000,000: No Shares issued and outstanding                                        |   |          | -           |   |     |   | - |   |
|       Common Stock, $0.01 Par Value - Shares Authorized:                                 |   |          |        |   |     |   |   |   |
|       25,000,000: Shares issued and outstanding 15,794,200                               |   |          | 157,942     |   |     |   | 157,942 |   |
|       Additional Paid-In Capital                                                         |   |          | 13,596,637  |   |     |   | 13,596,637 |   |
|       Accumulated Deficit                                                                |   |          | (11,635,075 | )      |     |   | (11,801,235 | ) |
|                                                                                                                   |   |          |        |   |     |   |   |   |
|       Total Stockholders' Equity                                                         |   |          | 2,119,504   |   |     |   | 1,953,344 |   |
|                                                                                                                   |   |          |        |   |     |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                             |   | $             | 3,160,231   |   |     | $      | 2,834,608 |   |

----

| COMTEX NEWS NETWORK, INC.                        |
|--------------------------------------------------|
| CONSOLIDATED  STATEMENTS OF OPERATIONS |

|                                                                                      |   | Three Months Ended |       |
|-------------------------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                                      |   | September 30,      |       |
|                                                                                      |   | (unaudited)        |       |
|                                                                                      |   | 2009               |       |   | 2008 |   |
| Revenues                                                                                  |   | $                  | 1,813,381  |   |   | $ | 1,662,248 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Cost of Revenues                                                                          |   |               | 660,808    |   |   |   | 641,733 |   |
|            Gross Profit            |   |               | 1,152,573  |   |   |   | 1,020,515 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Operating Expenses                                                                        |   |               |       |   |   |   |   |   |
|     Technical Operations and Support                                  |   |               | 356,479    |   |   |   | 405,009 |   |
|     Sales and Marketing                                               |   |               | 220,885    |   |   |   | 192,766 |   |
|     General and Administrative                                        |   |               | 403,443    |   |   |   | 362,156 |   |
|     Depreciation and Amortization                                     |   |               | 34,473     |   |   |   | 29,119 |   |
|           Total Operating Expenses      |   |               | 1,015,280  |   |   |   | 989,050 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
|           Operating Income              |   |               | 137,293    |   |   |   | 31,465 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Other Income (Expense), Net                                                               |   |               |       |   |   |   |   |   |
|       Interest Expense                                      |   |               | -          |   |   |   | - |   |
|       Interest Income                                       |   |               | 711        |   |   |   | 5,543 |   |
|       Realized and Unrealized Gain on Marketable Securities |   |               | 16,729     |   |   |   | - |   |
|       Other Income                                          |   |               | 11,807     |   |   |   | 105 |   |
| Total Other Income, net                                                                   |   |               | 29,247     |   |   |   | 5,648 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Income Before Provision for Income Taxes                                                  |   |               | 166,540    |   |   |   | 37,113 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| (Provision) for Federal and State Income Taxes                                            |   |               | (56,624    | ) |   |   | (24,650 | ) |
| Tax Benefit of Net Operating Loss Carry forward                                           |   |               | 56,244     |   |   |   | 12,600 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Net Income                                                                                |   | $                  | 166,160    |   |   | $ | 25,063 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Basic Earnings Per Common Share                                                           |   | $                  | 0.01       |   |   | $ | 0.00 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Weighted Average Number of Common Shares                                                  |   |               | 15,794,200 |   |   |   | 15,294,200 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Diluted Earnings Per Common Share                                                         |   | $                  | 0.01       |   |   | $ | 0.00 |   |
|                                                                                      |   |               |       |   |   |   |   |   |
| Weighted Average Number of Shares Assuming Dilution                                       |   |               | 15,827,608 |   |   |   | 15,562,438 |   |

----

| COMTEX NEWS NETWORK, INC.             |
|---------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS |

|                                                                                                                |   | Three Months Ended |      |
|---------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|
|                                                                                                                |   | September 30,      |      |
|                                                                                                                |   | (Unaudited)        |      |
|                                                                                                                |   | 2009               |      |   | 2008 |   |
| Cash Flows from Operating Activities:                                                                               |   |               |      |   |   |   |
|     Net Income                                                                                  |   | $                  | 166,160   |   |   | $ | 25,063 |   |
|     Adjustments to reconcile net income to net                                                  |   |               |      |   |   |   |   |   |
|     cash provided by (used in) operating activities:                                            |   |               |      |   |   |   |   |   |
|         Depreciation and Amortization                                       |   |               | 34,473    |   |   |   | 29,119 |   |
|         Realized and Unrealized (Gain) Loss on Marketable Securities        |   |               | (16,729   | ) |   |   | - |   |
|         Changes in Assets and Liabilities:                                  |   |               |      |   |   |   |   |   |
|             Accounts Receivable                         |   |               | (18,855   | ) |   |   | 78,009 |   |
|             Prepaid Expenses                            |   |               | (11,412   | ) |   |   | 5,257 |   |
|             (Purchase) Sale of Marketable Securities    |   |               | (517,722  | ) |   |   | - |   |
|                                                                                                                |   |               |      |   |   |   |   |   |
|             Deposits and Other Assets                   |   |               |      |   |   |   |   |   |
|             Accounts Payable and Other Accrued Expenses |   |               | 242,364   |   |   |   | (112,281 | ) |
|             Accrued Payroll Expenses                    |   |               | (96,469   | ) |   |   | 70,838 |   |
|             Deferred Revenue                            |   |               | 13,568    |   |   |   | (3,346 | ) |
|         Net Cash  (Used in) Provided By Operating Activities      |   |               | (204,622  | ) |   |   | 92,659 |   |
|                                                                                                                |   |               |      |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                                               |   |               |      |   |   |   |   |   |
|     Purchase of Property and Equipment                                                          |   |               | (21,642   | ) |   |   | (2,691 | ) |
|     Net Cash (Used in) Investing Activities                                                     |   |               | (21,642   | ) |   |   | (2,691 | ) |
|                                                                                                                |   |               |      |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                                               |   |               |      |   |   |   |   |   |
|         Net Cash (Used in) Financing Activities                             |   |               | -         |   |   |   | - |   |
|                                                                                                                |   |               |      |   |   |   |   |   |
| Net (Decrease) Increase in Cash and Cash Equivalents                                                                |   |               | (226,264  | ) |   |   | 89,968 |   |
|                                                                                                                |   |               |      |   |   |   |   |   |
| Cash and Cash Equivalents at Beginning of Period                                                                    |   |               | 1,376,634 |   |   |   | 1,520,831 |   |
| Cash and Cash Equivalents at End of Period                                                                          |   | $                  | 1,150,370 |   |   | $ | 1,610,799 |   |

----

| 1. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

----

| ●   | Quoted prices for similar assets or liabilities in active markets; |
|---------------------|--------------------------------------------------------------------|

| ●   | Quoted prices for identical or similar assets in non-active markets; |
|---------------------|----------------------------------------------------------------------|

| ●   | Inputs other than quoted prices that are observable for the asset or liability; and |
|---------------------|-------------------------------------------------------------------------------------|

| ●   | Inputs that are derived principally from or corroborated by other observable market data. |
|---------------------|-------------------------------------------------------------------------------------------|

|                      |   | for Identical |      |   | Observable |   |   | Unobservable |   |
|---------------------------|--------|---------------|-----------|--------|------------|--------|--------|--------------|--------|
|                      |   | Assets        |      |   | Inputs     |   |   | Inputs       |   |
|                      |   | Level 1       |      |   | Level 2    |   |   | Level 3      |   |
| Assets:                   |   |          |      |   |       |   |   |         |   |
| Cash and cash equivalents |   | $             | 1,150,370 |   |       | $      | -      |         |   | $ | - |   |
| Marketable securities     |   |          | 587,769   |   |       |   | -      |         |   |   |   |   |
|                      |   |          |      |   |       |   |   |         |   |   |   |   |
|                      |   | $             | 1,738,139 |   |       | $      | -      |         |   | $ | - |   |

----

| 2. | Commitments and Contingencies |
|----|-------------------------------|

|   | Fiscal year endingJune 30, |   | Minimum RentalCommitments |    |
|--------|----------------------------|--------|---------------------------|---------|
|   | 2010                       |   | $                         | 225,312 |   |
|   | 2011                       |   |                      | 239,219 |   |
|   | 2012                       |   |                      | 130,992 |   |
|   | 2013                       |   |                      | 127,216 |   |
|   | 2014                       |   |                      | 97,790  |   |
|   |                       |   | $                         | 820,529 |   |

----

----

----

|             |   |  Contractual Obligations |    |
|------------------|--------|-------------------------------|---------|
|             |   | FY 2010                       |    |   | FY 2011 |   |   | FY 2012 |   |   | FY 2013 |   |   | FY 2014 |   |   | Total |   |
| Operating Leases |   | $                             | 225,312 |   |   | $ | 239,219 |   |   | $ | 130,992 |   |   | $ | 127,216 |   |   | $ | 97,790 |   |   | $ | 820,529 |   |

----

|                                            |   | Three Months        |   |
|-------------------------------------------------|--------|---------------------|--------|
|                                            |   | Ended September 30, |   |
|                                            |   | 2009                |   |   | 2008 |   |
| Reconciliation to EBITDA:                       |   |                |   |   |   |   |
|    Net Income                    |   | $                   | 166    |   |   | $ | 25 |   |
|    Depreciation and Amortization |   |                | 34     |   |   |   | 29 |   |
|    Interest/Other Expenses, net  |   |                | (29    | ) |   |   | (5 | ) |
|    Income Taxes, net             |   |                | 1      |   |   |   | 12 |   |
|    EBITDA                        |   | $                   | 172    |   |   | $ | 61 |   |

----

----

|   | 10.1   | Employment Agreement with Dr. C.W. Gilluly effective July 1, 2009 |
|--------|------------------|-------------------------------------------------------------------|

|   | 31.1  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------------|-----------------------------------------------------------------------------------------------------|

|   | 31.2   | Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------------------|------------------------------------------------------------------------------------------------------------------------|

|   | 32.1   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------------------|-----------------------------------------------------------------------------------------------------|

|   | 32.2   | Certification of Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------------------|------------------------------------------------------------------------------------------------------------------------|

----

|              | COMTEX NEWS NETWORK, INC.(Registrant) |                                                                         |
|-------------------|---------------------------------------|------------------------------------------------------------------------------|
|              |                                  |                                                                         |   |
| November 13, 2009 | By:                                   | /s/                                                                     |   |
|              |                                  | Chip BrianPresident and Chief Executive Officer(Principal Executive Officer) |   |

|              |   |                                                                                       |   |
|-------------------|--------|--------------------------------------------------------------------------------------------|--------|
| November 13, 2009 | By:    | /s/                                                                                   |   |
|              |   | Paul SledzCorporate Controller & Treasurer(Principal Financial and Accounting Officer) |   |