UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C.

                              FORM 10-K

(Mark One)

 X   Annual Report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934
     For the fiscal year ended June 30, 2002; or

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

Commission file number  0-21555

                         AMASYS CORPORATION
       (Exact name of registrant as specified in its charter)

       Delaware                                      54-1812385__
    (State or other jurisdiction                 (I.R.S. Employer
 of incorporation or organization)              Identification No.)

     4900 Seminary Road, Suite 800, Alexandria, Virginia  22311
               (Address of principal executive office)

Registrant's telephone number, including area code: (703) 797-8111

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

               Common Stock, par value $0.01 per share
                          (Title of class)

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 by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of Registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K.


The Company knows of no trading in its Common Stock since its
inception.  As of June 30, 2002, there were 1,775,880 shares of
stock held by non-affiliates.

As of September 20, 2002, 2,207,350 shares of the Common Stock of
the Registrant were outstanding.
<PAGE>

                           PART I

Item 1.        Business

Company History

     AMASYS Corporation ("AMASYS" or the "Company") was
incorporated in Delaware in 1992, and in 1996 received all
remaining assets of Infotechnology, Inc. ("Infotech"), a
Delaware company, following the completion of Infotech's
Chapter 11 Bankruptcy reorganization, in accordance with an
Assignment and Assumption Agreement, dated October 11, 1996.
As a result of a series of transactions during the 1980's,
Infotech, then principally engaged in the information and
communications business, acquired equity interests in COMTEX
News Network, Inc. ("COMTEX") and Analex Corporation
("Analex"), formerly known as Hadron, Inc.  As of June 30,
2002, AMASYS had a 16% interest in COMTEX and a 1% equity
interest in Analex.  The Company's principal business is the
maintenance of its equity interests in COMTEX and Analex and
the Company's income is derived from equity and interest
income related to these investments.

     On July 2, 2001, the Company filed the following
reports with the Securities and Exchange Commission (the
"SEC"):  Annual Report on Form 10-K for the year ended June
30, 2000; the Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000; the Quarterly Report on Form 10-Q
for the quarter ended December 31, 2000; and the Quarterly
Report on Form 10-Q for the quarter ended March 31, 2001.
Prior to these filings, the Company had not filed reports
with the SEC except for a Form 8-A, filed in October 1996,
for registration of its common and preferred shares of
stock, and a Form 12B-25, filed in December 1996, in which
it disclosed that it was unable to file its Form 10-Q for
the Quarter ended December 31, 1996 because of the
difficulty associated with the preparation of the Company's
initial financial statements as successor to Infotech.  The
Annual Report on Form 10-K for the year ended June 30, 2001
was timely filed.  In addition, all Quarterly Reports on
Form 10Q were filed for fiscal year 2002.
<PAGE>
Overview

     AMASYS is the successor to Infotech, pursuant to
Infotech's bankruptcy proceeding.  AMASYS' primary assets
are its equity interests in COMTEX and Analex, which are
also its primary sources of revenue.  AMASYS owns 16% of the
outstanding equity of COMTEX, while the remainder is
publicly owned.  COMTEX aggregates and redistributes diverse
real-time global news and information for the Internet, Wall
Street and corporate reseller markets.  In addition to its
16% equity ownership of COMTEX, the Company also holds a
Note in the amount of $914,954 from COMTEX.  It also owns
138,739 shares of common stock of publicly-held Analex
Corporation ("Analex") formerly known as Hadron, Inc., a
defense contractor specializing in developing innovative
technical intelligence and biodefense solutions in support
of U.S. national security.  As of June 30, 2002, Analex had
14,385,855 shares of common stock outstanding.  The Company
believes that, by virtue of an exemption to the Investment
Company Act of 1940 ("1940 Act"), the Company should not be
deemed to be an "investment company" and, accordingly,
should not be required to register as such.  The rules and
interpretations of the SEC and the courts relating to the
1940 Act and to its exemptions are highly complex and
uncertain in numerous aspects.  As a result, no assurance
can be given that the Company will not be deemed an
"investment company" for purposes of the 1940 Act and be
required to register as an investment company, in which case
the Company could be subject to legal actions by regulatory
authorities and others and could be forced to suspend or
terminate operations.  The costs of defending any such
action could constitute a material part of the Company's
assets.


COMTEX News Network, Inc.

          The Company owns 2,153,437 shares of common stock
of COMTEX News Network, Inc. (SEC File No. 0-10541).  COMTEX
trades on the OTC Electronic Bulletin Board under the symbol
CMTX. COMTEX is a leading business-to-business "infomediary"
providing real-time news content from its worldwide network
of news publishers to its network of business information
distributors, serving the financial services, individual and
institutional investor, wireless and corporate information
markets.  COMTEX uses internally developed technology to
process, generally in less than 5 seconds, more than 20,000
real-time news stories each day from approximately 70
newswire services and other publishers.  COMTEX's unique and
uniform processing and formatting allows its customers to
more effectively select and utilize the content in their
products and services. Processing includes, for each news
story, conversion to NewsML, an industry standard format,
and indexing by category, keyword and ticker symbol.
<PAGE>
     COMTEX's core products currently include a series of
topic-defined real-time news products marketed under the
brand name CustomWires(R), editorially selected top news
products under the brand name COMTEX Newsroom(R) and complete
publisher offerings known as full feeds. These products may
be delivered as a real-time XML (or other format) streaming
feed or imbedded in the customers' browser-based application
via COMTEX's hosted delivery application system, News
Solutions(R).

          COMTEX relies heavily on third-party information
sources for the content of its product offerings.
Interruption in, or the termination of, service from a
significant number of its information sources would affect
COMTEX' ability to offer products or maintain product
quality.  Accordingly, the failure or inability to restore
or replace such interrupted or terminated services could
have an adverse effect on revenues.

          COMTEX also relies heavily on third party
providers for telecommunications, electrical power, internet
connectivity, and related or similar services as well as
system redundancy for the development and delivery of its
products.  Failure of, interruption in, or the termination
of, these services would also affect the COMTEX' ability to
create and deliver products.  Accordingly, the failure or
inability to restore or replace such interrupted or
terminated services could have an adverse effect on
revenues.

          COMTEX is a publicly-traded company and more
information concerning the operations of COMTEX can be found
in its own filings with the SEC.

Analex Corporation

     The Company owns 138,739 shares of the common stock of
Analex Corporation (SEC File No. 0-5404), which trades on
the OTC Electronic Bulletin Board under the symbol ANLX.
Analex specializes in developing intelligence, systems
engineering and biodefense solutions in support of national
security.  Analex focuses on designing, developing and
testing aerospace products and systems; developing
innovative technical solutions for the intelligence
community; developing medical defenses and treatments for
infectious agents used in biological warfare and terrorism;
and analyzing and supporting defense systems.

Employees

          At June 30, 2002, the Company had 3 part-time
employees.  The employees of the Company are not members of
a union and the Company believes employee relations are
generally good.

<PAGE>
Relationship With The Pension Benefit Guaranty Corporation
("PBGC")

     As previously discussed (see "Company History"),
pursuant to the confirmed orders of the United States
Bankruptcy Court for the Southern District of New York (the
"Court"), entered on June 23, 1994 and finalized on January
2, 1997, Infotech's Third Joint Plan of Reorganization,
dated March 30, 1994, as amended (the "Plan"), was
confirmed, and the Company and Infotech entered into an
Assignment and Assumption Agreement, effective as of June
21, 1996, whereby the Company acquired certain assets and
assumed certain liabilities of Infotech.  As called for by
the Plan, the Company issued to the PBGC, 196,000 shares of
the Company's 5% convertible preferred stock (Series "A"
Preferred Stock), convertible into 1,960,000 shares of the
Company's common stock.

     Furthermore, the Company entered into an agreement with
the PBGC granting PBGC certain rights.  In addition to the
issuance to the PBGC of the Company's Series "A" Preferred
Stock, the Company:

1)   issued to the PBGC a $1,500,000 zero coupon note
     effective June 21, 1996, for which a settlement was
     reached ("Settlement") in which $189,998 was paid in
     full satisfaction of such note on February 1, 2002
     (see "Management's Discussion and Analysis of Financial
     Condition and Results of Operations" and Note #5 to the
     Financial Statements for the year ended June 30, 2002,
     "Note Payable - Related Party").

2)   granted the PBGC the right to name two members to the
     Boards of Directors of both the Company and COMTEX, which
     right was waived by the PBGC in the Settlement; and

3)   granted the PBGC the unilateral right, through December
     31, 2001, which has since  expired, to require the Company
     to use its best efforts to liquidate the Company's interest
     in Analex and COMTEX through secondary offerings and private
     sales.


Item 2.        Properties

     The Company owns no real estate.  The Company pays the
pro rata portion of its office and administrative expenses
to COMTEX for its use of the facilities at 4900 Seminary
Road, Alexandria, Virginia.

<PAGE>
Item 3.        Legal Proceedings

          AMASYS has no outstanding, material legal
proceedings.

          On July 17, 2001, COMTEX filed a breach of
contract action against Infospace, Inc., a former customer,
in the United States District Court for the Eastern District
of Virginia for payments owed under contracts with the
defendant corporation.  The suit is captioned COMTEX News
Network, Inc. v. Infospace, Inc.  Case Number CV01-1108-A.
On August 13, 2001, Infospace filed an Answer and
Counterclaim alleging that COMTEX breached its agreement and
sought damages for lost business, loss of reputation and
good will.

          On March 11, 2002, the court rendered a directed
verdict in favor of Infospace on the breach of contract
claim and Infospace withdrew the counterclaim without
prejudice.  Infospace also filed a petition with the court
for reimbursement of attorneys' fees and costs.

          On April 9, 2002, COMTEX filed a Notice of Appeal
to reverse the lower court decision. The case is now fully
briefed before the United States Court of Appeals for the
Fourth Circuit and a ruling is expected sometime in early
2003.

     While the appeal was pending, the court, on August 13,
2002, issued an order awarding attorneys' fees of
approximately $393,000 to Infospace with costs still to be
determined.  COMTEX intends to seek a stay of this award
pending a ruling on the appeal.  If COMTEX prevails on the
appeal, the award of attorneys' fees would likely  be
reversed.  Infospace also has petitioned the court to
require COMTEX to reimburse Infospace for approximately
$201,000 in costs. This petition is still pending before the
court.  COMTEX has recorded an accrual to provide for the
estimated exposure upon resolution of this matter in the
year ended June 30, 2002.

     COMTEX is also involved in routine legal proceedings
occurring in the ordinary course of business, which in the
aggregate are believed by management to be immaterial to
COMTEX's financial condition.

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

None.
<PAGE>
                           PART II

Item 5.        Market for Registrant's Common Equity and
Related
               Stockholder Matters

     The Company's Common Stock, par value $.01 per share
("Common Stock"), has not traded since its initial
registration on Form 8-A with the SEC.  There is no
established public trading market for the Common Stock.

     The approximate number of holders of record of the
Company's Common Stock as of June 30, 2002 was 669.

     The Company has never declared or paid a cash dividend
on its Common Stock and does not anticipate the declaration
or payment of cash dividends to shareholders in the
foreseeable future.


Item 6.        Selected Financial Data

     The following table sets forth selected financial data
for each of the last five fiscal years of the Company.
<TABLE>
                                                 Fiscal Year Ended June 30,
                                       --------------------------------------------
(amounts in thousands except per        2002      2001     2000     1999    1998
share data)
                                       --------  -------  -------  -------  -------
<S>                                    <C>       <C>      <C>      <C>      <C>
Total Other income                      $   181  $  155   $    94   $  73   $   75

Net Income (Loss)                         1,825    (327)       57     (19)     (69)

Earnings Per Share - Basic:
Basic Net Income (Loss) Per Share
before Extraordinary Item               $  (.20)  $ (.15)  $   .03  $ (.01)  $ (.03)
Extraordinary Gain on Debt
Extinguishment                             1.03      -        -        -        -
                                        --------  -------  -------  -------  -------
Net Income Per Share                    $   .83  $ (.15)  $   .03  $ (.01)  $ (.03)
                                        ========  =======  =======  =======  =======
Earnings Per Share - Diluted:
Diluted Net Income (Loss) Per Share
before Extraordinary Item               $  (.20)  $ (.15)  $   .01  $ (.01)  $ (.03)
Extraordinary Gain on Debt
Extinguishment                             1.03     -        -        -        -
                                        --------  -------  -------  -------   ------
Net Income Per Share                    $    .83  $ (.15)  $   .01  $ (.01)  $ (.03)

Balance Sheet Data at Year End:
   Total Assets                         $  1,661  $2,063   $ 2,024  $1,812   $1,663
   Long-term Obligations                   -       2,329     2,133   1,953    1,789
   Stockholders' Equity (Deficit)          1,638    (353)     (121)   (170)    (151)
</TABLE>
<PAGE>

Item 7.   Management's Discussion and Analysis of Financial
               Condition and Results of Operation

INCOME SOURCES AND CRITICAL ACCOUNTING POLICIES

The Company's income is derived from earnings and
interest income related to investments in COMTEX and Analex.
The Company accounts for its investment in COMTEX using the
equity method, whereby the Company records its share of
income or loss reported by COMTEX based on its ownership
interest.  The Company also has a note receivable from
COMTEX, which bears interest at 10%.  The Company's
investment in Analex was accounted for using the equity
method through March 2000.  Due to a change in control at
Analex in March 2000, in which a group of investors assumed
control of Analex, the investment has since been accounted
for pursuant to SFAS 115 Accounting for Certain Investments
in Debt and Equity Securities.  The Analex investment
balance at each reporting period is reported based on the
stock's trading value with any increases or decreases being
presented as unrealized gains or losses in the statement of
stockholders' equity.  No investments have been made since
the initial acquisition of interests of COMTEX and Analex in
1996, nor has there been any interests nor dividends
received.  During February 2002, the Company's CEO exercised
his options to acquire 2,540,503 shares of COMTEX stock
owned by the Company, which resulted in proceeds of
$254,000.  A portion of the Analex investment was sold in
February and May 2002.

RESULTS OF OPERATIONS

Comparison of the Fiscal Year ended June 30, 2002 to the
Fiscal Year ended June 30, 2001

The Company had net income of $1,825,000 in 2002 compared to
a net loss of $(327,000) in 2001. The increase is comprised
primarily of an extraordinary gain of $2,272,000 on early
extinguishment of debt.

Other income.  Other income increased from $155,000 in 2001
to $181,000 in 2002 due to the gain on sales of investment
of $87,000 resulting from the sale of 33,000 shares of
Analex stock during February 2002 and the sale of 31,000
shares of Analex stock during May 2002.  This was offset by
the $58,000 in other income related to the United Press
International (UPI) bankruptcy settlement in 2001.  The
Company had previously written off all amounts associated
with UPI.

Operating costs and expenses.  Operating costs and expenses
decreased $71,000 (21.6%) to $272,000 in 2002 due to a
decrease in professional services and general and
administrative expenses.  In addition, amortization
decreased $25,000 because the reorganization costs were
fully amortized after the 1st quarter.
<PAGE>
Equity in earnings.  Equity in earnings decreased $278,000
due primarily to the decrease in the Company's share of
earnings of COMTEX, which reported a net loss of $1,361,000
in 2002 compared to net income of $265,000 in 2001.

Interest expense.  Interest expense decreased $62,000 due to
the retirement of the note payable during the 3rd quarter.

Extraordinary gain.  In February 2002, the Company made a
payment of $189,998 to PBGC for full satisfaction of a note
in the original amount of $1,500,000 plus accrued interest.
The difference between the carrying amount of the debt at
the date of payment and the amount paid was recognized as an
extraordinary gain on the income statement.

Comparison of the Fiscal Year ended June 30, 2001 to the
Fiscal Year ended June 30, 2000

The Company had a net loss of $(327,000) in 2001 compared to
net income of $57,000 in 2000 due to a decrease in equity in
earnings of $176,000 (75.0%) and an increase in operating
costs and expenses of $252,000 (280.2%).

Other income.  Other income increased from $94,000 in 2000
to $155,000 in 2001 primarily due to the Company recording
$58,000 in other income related to the United Press
International (UPI) bankruptcy settlement.  The Company had
previously written off all amounts associated with UPI

Operating costs and expenses.  Operating costs and expenses
increased $252,000 (280.2%) to $342,000 in 2001 due to an
increase in professional services and general and
administrative expenses.  Professional services increased
$220,000 primarily due to a $77,000 increase in accounting
and audit fees associated with audits and reviews of
Company's financial statements; a $44,000 increase in legal
fees and a $99,000 increase in consulting fees.  General and
administrative expenses increased $33,000 due to an increase
in insurance and state and local taxes.

Equity in earnings.  Equity in earnings decreased $176,000
(75.4%) due primarily to the decrease in the Company's share
of earnings of COMTEX, which reported decreased net income
of $265,000 in 2001 compared to $1,241,000 in 2000.

Interest expense.  Interest expense increased due to an
increase in the note payable balance resulting from
compounded interest during the year.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

The Company had net working capital of $(11,000) at June 30,
2002.  The Company has had minimal operating activity since
commencing operations in 1996 and has not had any other uses
of funds.  Accordingly, the Company has not required any
funding sources.  The Company expects to meet its short-term
obligations through payments of principal and interest from
the note receivable from COMTEX and from the sales of
interests in Analex.

CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS

     Except for the historical information contained herein,
the matters discussed in this Form 10-K include forward-
looking statements within the meaning of Section 21E of the
Securities and Exchange Act of 1934.  These forward-looking
statements may be identified by reference to a future period
or by use of forward-looking terminology such as
"anticipate", "expect", "could", "may" or other words of a
similar nature.  Forward-looking statements, which the
Company believes to be reasonable and are made in good
faith, are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
expressed in any forward-looking statement made by, or on
behalf of, the Company.


Item 7A.  Quantitative and Qualitative Disclosure about
Market Risk.

Financial instruments that potentially subject the Company
to market risk include the note receivable and the
investment that is classified as available-for-sale.  The
Company does not enter into derivatives or other financial
instruments for trading or speculative purposes and is not
exposed to any foreign currency exchange risk.  The note
receivable  bears interest at a fixed rate, thereby
mitigating any exposure to market risk.  The investment in
138,739 shares of Analex, classified as available-for-sale,
had a fair market value of $381,532 at June 30, 2002 and a
cost basis of $129,738.  The gross unrealized gains of
$251,794 at June 30, 2002 has been recorded as a separate
component of other comprehensive income.  Losses resulting
from a decrease in the market price of the stock that are
considered temporary are recorded as a separate component of
other comprehensive income, while losses that are considered
permanent are included in the computation of net income.  No
such permanent losses have been recorded to date.

Item 8.   Financial Statements and Supplementary Data

     The information required by this item is set forth
under Item 14, which is incorporated herein by reference.

Item 9.   Changes in and Disagreements with Accountants
          on Accounting and Financial Disclosure

     None.
<PAGE>

                          PART III

Item 10.  Directors and Executive Officers of the Registrant

Directors

          The following table contains information as of
June 30, 2002 as to each director of the Company:

                             Director       Office Held
Name                          Since    Age  with the Company
-----                        --------  ---  ---------------------
C.W. Gilluly, Ed.D.           1992     56   Chairman of the
                                            Board, President
                                            and Chief Executive
                                            Officer

Robert F. Delaney (1,2)       1992     77   Director

Robert J. Lynch, Jr. (1,2)    1992     69   Director

Thomas E. McMahan (1,2)       1992     59   Director

Robert A. Nigro (1,2)         1992     53   Director

(1)  Member of the Audit Committee
(2)  Member of the Compensation Committee

     C.W. GILLULY, Ed.D. has served as Chairman of the
Board, President and Chief Executive Officer of the Company
since June 1992, and has served as Chairman of the Board of
COMTEX since June 1992.  Dr. Gilluly served as President of
COMTEX from June 1992 until May 1993, and as Chief Executive
Officer from June 1992 until September 1997.  Dr. Gilluly
serves on the Board of Directors of Analex, where he was
Chairman of the Board from October 1994 until January 2001,
and also served as Chief Executive Officer from May 1993
through March 2000.

     ROBERT F. DELANEY has been Facilitator of Long Range
Study at the U.S. Naval War College and a management
consultant specializing in the area of organizational
development.  From 1981 through 1991, Mr. Delaney served as
president of the RFD Group and Michael W. Moynihan
Associates, Management and Public Affairs Consultants.  In
1990, Mr. Delaney was an Intelligence Briefing Officer for
Operation Desert Storm at the Naval Medical Corps, Fort Dix,
New Jersey.  Since 1972, Mr. Delaney has been a lecturer at
the NATO Defense College, Armed Forces Staff College,
Defense Information School, Marine Corp Schools and the U.S.
Naval War College.

     ROBERT J. LYNCH, JR. is the President of American &
Foreign Enterprises, Inc., a private corporation managing
U.S. and international investments in industrial and real
estate opportunities, for whom he has worked for thirty-six
years.
<PAGE>

     THOMAS E. MCMAHAN is the founder of McMahan Associates,
a private corporation that provides strategic investment
advice and counsel to the financial information industry.
From 1995 to 2000, Mr. McMahan served as senior vice
president for corporate development for MERGENT, INC., a $60
million diversified financial information business.  Mr.
McMahan served as General Manager of Shark Information
Systems, a subsidiary of Infotechnology, Inc., in 1993 and
served as Vice President for Business Development of
Infotechnology, Inc. in 1990.  From 1972 though 1990, Mr.
McMahan served in various capacities at McGraw-Hill/Standard
& Poor's, including Senior Vice President and Chief of Staff
of Standard & Poor's Trader Services from 1988 through 1990.

     ROBERT A. NIGRO is an investment banker who specializes
in corporate development and turnarounds.  He joined SEI
Investments Company as Senior Vice President in November 1993
and served as Chief Executive Officer of SEI Capital AG from
April 1995 through 2002.  From 1991 to 1993, Mr. Nigro was
Chairman and Chief Executive Officer of the National Abandoned
Property Processing Company.  Mr. Nigro was associated with
the First Boston Corporation in various capacities from 1976
to 1990 including serving as Managing Director in the New York
and Atlanta offices.  Mr. Nigro also serves as a director of COMTEX.


Executive Officer

     As of June 30, 2002, the only executive officer of the
Company who is not also a director of the Company is S.
Amber Gordon, the Corporate Secretary of the Company.

          S. AMBER GORDON (48) was appointed Corporate
Secretary and Treasurer of the Company in October 1996.  Ms.
Gordon also serves as the Corporate Secretary of COMTEX, a
position she has held since May 1996.  Ms. Gordon has been
the President of S.A. Gordon Enterprises, Inc., a financial
relations and marketing communications firm, since 1985.
Ms. Gordon also served in senior management positions, the
most recent of which was Executive Vice President, of
Analex, an information technology company serving the
intelligence community, from June 1991 through August 2000.

Section 16(A) Beneficial Ownership Reporting Compliance

          Section 16(a) of the Exchange Act requires the
Company's executive officers and directors, and persons who
own more than 10% of a registered class of the Company's
equity securities, to file reports of ownership and changes
in ownership with the Securities and Exchange Commission.
Executive officers, directors and greater than 10%
stockholders are required by the Securities and Exchange
Commission regulation to furnish the Company with copies of
all Section 16(a) forms they file.
<PAGE>
          Based solely on a review of copies of such reports
of ownership furnished to the Company, or written
representations that no forms were necessary, the Company
believes that during the past fiscal year, its executive
officers, directors and greater than 10% beneficial owners
complied with all applicable filing requirements.


Item 11.  Executive Compensation

Summary Compensation Table

     The following table sets forth information concerning
all compensation paid or accrued by the Company to its
President and Chief Executive Officer, during the fiscal
year ended June 30, 2002.  Neither Dr. Gilluly nor any other
officer of the Company receives compensation in excess of
$100,000 per year.

<TABLE>
                                    Annual                  Long-Term
                                 Compensation          Compensation Awards
Name and               Fiscal                      Stock Options    All Other
Principal Position      Year    Salary    Bonus       Granted     Compensation
------------------    -------   -------  ------     ----------    -------------
<S>                   <C>      <C>       <C>       <C>            <C>
                        2002       -        -            -           $6,805
C.W. Gilluly <F-1>      2001       -        -            -           $6,805
Chairman                2000       -        -            -           $6,805
                        1999       -        -            -              -
                        1998       -        -            -              -
<FN>
<F1>  Dr. Gilluly has not received any salary since 1992.
       In 1996, he received a grant of stock options,
       described below.  In fiscal years 2002, 2001 and
       2000, the only compensation Dr. Gilluly received was
       $ 6,805, paid by the Company for premiums on life
       insurance and disability policies.
</TABLE>

Stock Option Grants

     No stock options were granted during the fiscal year
ended June 30, 2002.  In accordance with the Company's Stock
Option Plan, Dr. Gilluly received a grant of 350,000 options
in November 1996, at an exercise price of $0.01 per share.
He has not received any further grants.
<PAGE>
Options Exercised and Year-End Option Values

   The following table sets forth certain information
regarding the value of unexercised options held by the named
executive officer as of June 30, 2002.

<TABLE>
                          Fiscal Year-End Option Values

                Shares                            Number of Shares        Value of Unexercised
             Acquired upon   Value Realized     Underlying Unexercised      In-the-Money Options
              Exercise of    From Exercise    Options at June 30, 2002       at June 30, 2002
Name            Options       of Options     Exercisable  Unexercisable  Exercisable  Unexercisable
-----         ----------    --------------   -----------  ------------   ------------  -------------
<S>            <C>          <C>              <C>           <C>             <C>          <C>

C.W. Gilluly     -                 -           350,000 <F1>     -           $-             -
<FN>
<F1>   As there has been no trading in the Company's stock since its formation,
       the Company determined that the market value of its common stock
       approximates it's exercise price of $.01, based on an assumed
       liquidation value of the Company's investments in COMTEX and Analex;
       however, there can be no assurance that this is an accurate reflection
       of the market value.
</TABLE>

Stock Option Plan

   The Company's Stock Option Plan was approved pursuant to
the Confirmation of the Third Amended Plan of Reorganization
of Infotech on June 21, 1994 and was effective as of the
Effective Date of the Plan, on June 21, 1996.  The Plan
provides for the issuance of incentive stock options within
the meaning of Section 422 of the Internal Revenue Code of
1986, as amended, and non-qualified stock options in order
to recruit and retain key employees, consultants and
directors.


Compensation of Directors

   The Company pays non-employee members of the Board $625
per board meeting, plus travel expenses incurred in
connection with attendance at Board meetings.  During fiscal
year 2002, each of the Company's non-employee directors
received compensation of $2,500 for services rendered to the
Company.

Employment Agreements

   The Company has no employment agreements.
<PAGE>
   Compensation Committee Report on Executive Compensation

2002 Compensation for the President and Chief Executive Officer

     The Committee reports that during the fiscal year ended
     June 30, 2002, Dr. Gilluly declined to receive any
     compensation for his services as President and Chief
     Executive Officer of the Company.

                   Submitted by the Compensation Committee

                    Robert F. Delaney
                    Robert J. Lynch, Jr.
                    Thomas E. McMahan
                    Robert A. Nigro

Compensation Committee Interlocks and Insider Participation

   Mr. Nigro also serves as a member of the Board of
COMTEX.

Item 12.  Security Ownership of Certain Beneficial Owners
and Management

     The following table sets forth information as of June
30, 2002, regarding the beneficial ownership of the
Company's Common Stock of (i) each person known to the
Company to be the beneficial owner, within the meaning of
Section 13(d) of the Securities Exchange Act of 1934, as
amended, (the "Exchange Act"), of more than 5% of the
outstanding shares of Common Stock, (ii) each director of
the Company, (iii) each executive officer of the Company
named in the Summary Compensation Table (see "Executive
Compensation") and (iv) all executive officers and directors
of the Company as a group.  Unless otherwise indicated, the
address of each named beneficial owner is c/o AMASYS Corp.,
4900 Seminary Road, Suite 800, Alexandria, Virginia 22311.
Except to the extent indicated in the footnotes, each of the
beneficial owners named below has sole voting and investment
power with respect to the shares listed.
<PAGE>
<TABLE>

Name and Address of                       Amount and Nature of      Percentage
 Beneficial Owner                         Beneficial Ownership     of Class <F1>
---------------------                      -------------------     --------------
<S>                                     <C>                       <C>

Pension Benefit                               1,960,000<F2>            47.0%
Guaranty Corporation
1200 K Street, N.W.
Washington, D.C. 20005-4026

C.W. Gilluly, Chairman and CEO                  427,048 <F3>           16.7

Robert F. Delaney, Director                      50,000 <F4>            2.2

Robert J. Lynch, Jr. , Director                  56,245 <F4><F5>        2.5

Robert A. Nigro, Director                        50,000 <F4>            2.2

Thomas E. McMahan, Director                      77,043 <F4>            3.4

Joshua Angel                                    191,578                 8.7
c/o Angel & Frankel, P.C.
460 Park Avenue, 8th Floor
New York, NY 10022


Robert Frankel                                  128,901                 5.8
c/o Angel & Frankel, P.C.
460 Park Avenue, 8th Floor
New York, NY 10022

S. Amber Gordon                                 300,655 <F6>            12.0

All Directors and Executive Officers            960,991 <F7>            31.4
as a group (6 persons)
<FN>
  <F1>   Each percentage of beneficial ownership is
          calculated using a different denominator,
          consisting of the total number of shares
          outstanding (2,207,350), increased by the number
          of options owned by the beneficial owner that are
          exercisable within 60 days.  The percentage of
          beneficial ownership of all directors and
          executive officers as a group is based on the sum
          of the total number of shares outstanding and all
          outstanding options held by directors and
          executive officers that are exercisable within 60
          days.
  <F2>   Includes 1,960,000 shares which may be acquired
          upon the conversion of AMASYS Preferred Shares
          held by the PBGC.
<PAGE>
  <F3>   Includes 350,000 shares which may be acquired upon
          the exercise of vested options granted under the
          AMASYS Corporation Stock Option Plan.
  <F4>   Includes 50,000 shares which may be acquired upon
          the exercise of vested options granted under the
          AMASYS Corporation Stock Option Plan.
  <F5>   Includes 245 shares held by Mr. Lynch's wife.
  <F6>   Includes 300,000 shares which may be acquired upon
          the exercise of vested options granted under the
          AMASYS Corporation Stock Option Plan.
  <F7>   Includes 850,000 shares which may be acquired upon
          the exercise of vested options granted under the
          AMASYS Corporation Stock Option Plan.

  </TABLE>


Item 13.  Certain Relationships and Related Transactions

          Dr. Gilluly serves as Chairman of the Board and
Chief Executive Officer of the Company.  Dr. Gilluly also
serves as Chairman of COMTEX, and serves as a member of the
Board of Analex.



                           PART IV

Item 14.       Exhibits, Financial Statement Schedules and
          Reports on Form 8-K

          (a) 1.  Financial Statements

               Report of Independent Auditors                    F-1

               Balance Sheets at June 30, 2002 and 2001          F-2

                        Statements of Operations for the
                fiscal
                 years ended June 30, 2002, 2001, and 2000       F-3

               Statements of Stockholders' Equity (Deficit)
                 for the fiscal years ended June 30, 2002,
                 2001 and 2000                                   F-4

               Statements of Cash Flows for the fiscal
               years ended June 30, 2002, 2001 and 2000          F-5

               Notes to Financial Statements                     F-6


              2.  Financial Statement Schedules

                    The schedules for which provision is
               made in the applicable accounting regulation
               of the Securities and Exchange Commission are
               not required under the related instructions
               or are inapplicable and therefore have been
               omitted.
<PAGE>

                3.  Exhibits

Number    Description
1.1       Specimen certificate for the Common Stock,
          $.01 par value, of the Registrant
          (incorporated by reference to the Company's
          Form 8-A filed on October 15, 1996).

2.1       Third Joint Chapter 11 Plan of Reorganization
          for Infotechnology, Inc. dated March 30, 1994,
          as confirmed by the Bankruptcy Court
          (incorporated by reference to the Company's
          Form 8-A filed on October 15, 1996).

2.2       Order Confirming Third Joint Plan of
          Reorganization dated as of June 23, 1994 of
          Infotechnology, Inc. and Questech Capital
          Corporation (incorporated by reference to the
          Company's Form 8-A filed on October 15, 1996).

2.3       Assignment and Assumption Agreement between
          the Company and Infotechnology, Inc.
          (incorporated by reference to the Company's
          Form 8-A filed on October 15, 1996).

3.1       Restated Certificate of Incorporation of
          AMASYS Corporation (incorporated by reference
          to the Company's Form 8-A filed on October 15,
          1996).

3.2       Bylaws of AMASYS Corporation (incorporated by
          reference to the Company's Form 8-A filed on
          October 15, 1996).

10.1      AMASYS Corporation Stock Option Plan
          (incorporated by reference to the Company's
          Form 10-K, for the year ended June 30, 2000,
          filed on July 2, 2001).

10.2      Second Amendment to Amended, Consolidated and
          Restated 10% Senior Subordinated Secured Note
          between the Company and COMTEX News Network,
          Inc. (incorporated by reference to the
          Company's Form 10-K, for the year ended June
          30, 2001, filed on September 28, 2001).

10.3      Payment and Release Agreement between the
          Company and the Pension benefit Guaranty
          Corporation dated February 1, 2002.
          (incorporated by reference to the Company's
          Form 10-Q, for the quarter ended December 31,
          2001, filed on February 13, 2002).
<PAGE>
10.4      Note between the Company and C.W. Gilluly
          dated December 21, 2001. (incorporated by
          reference to the Company's Form 10-Q, for the
          quarter ended December 31, 2001, filed on
          February 13, 2002).

10.5      Note between the Company and C.W. Gilluly
          dated February 12, 2002. (incorporated by
          reference to the Company's Form 8-K filed on
          February 20, 2002).

99.1      Certification pursuant to Section 906 of the
          Sarbanes-Oxley Act of 2002.

          (b).      Reports on Form 8-K

          No reports on Form 8-K were filed by the Company
during the last quarter of the period covered by this
Report.
<PAGE>

                         SIGNATURES


     Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the
undersigned, there unto duly authorized.

Date:  September 30, 2002


AMASYS CORPORATION


By:  /S/ C.W. GILLULY
     C.W. Gilluly, Ed.D.
     President and Chief Executive Officer
     (Principal Executive Officer and
      Principal Financial and Accounting Officer)



     Pursuant to the requirements of the Securities Exchange
Act of 1934, this report has been signed below by the
following persons on behalf of the Registrant and in the
capacities and on the dates indicated.

DIRECTORS:

Signature                  Title           Date


/S/ C.W. GILLULY           Chairman       September 30, 2002
C.W. Gilluly, Ed.D.        and Director

/S/ ROBERT F. DELANEY      Director       September 30, 2002
Robert F. Delaney

/S/ ROBERT  J. LYNCH, JR.  Director       September 30, 2002
Robert J. Lynch, Jr.

/S/ THOMAS E. MCMAHAN      Director       September 30, 2002
Thomas E. McMahan

/S/ ROBERT A.NIGRO         Director       September 30, 2002
Robert A. Nigro
<PAGE>

          Certification of Chief Executive Officer
  Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


I, C.W. Gilluly, President and Chief Executive Officer,
certify that:

1.   I  have  reviewed this annual report on  Form  10-K  of
     AMASYS Corporation;

2.   Based  on  my  knowledge, this annual 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 annual report;

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

4.   The  registrant's other certifying officers 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 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 annual 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
          annual report (the "Evaluation Date"); and
     c)   presented in this annual 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 officers 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 (or persons performing the
     equivalent functions):

     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
<PAGE>
     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 officers and I  have
     indicated  in  this  annual report whether  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.


September 30, 2002                 /S/ C.W. Gilluly
Date                               C.W. Gilluly, Ed.D.
                                   President and Chief
                                   Executive Officer
<PAGE>
          Certification of Chief Financial Officer
  Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


I, C.W. Gilluly, Principal Finance Officer, certify that:

1.   I  have  reviewed this annual report on  Form  10-K  of
     AMASYS Corporation;

2.   Based  on  my  knowledge, this annual 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 annual report;

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

4.    The  registrant's other certifying officers 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 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 annual 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
          annual report (the "Evaluation Date"); and
     c)   presented in this annual 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 officers 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 (or persons performing the
     equivalent functions):

     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
<PAGE>
     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 officers and I  have
     indicated  in  this  annual report whether  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.


September 30, 2002            /S/ C.W. GILLULY
Date                          C.W. Gilluly. Ed.D.
                              Principal Finance Officer
                               (Chief Financial Officer)
<PAGE>

               Report of Independent Auditors

Board of Directors
AMASYS Corporation

We have audited the accompanying balance sheets of AMASYS
Corporation (the "Company") as of June 30, 2002 and 2001 and
the related statements of operations, stockholders' equity
(deficit), and cash flows for each of the three years in the
period ended June 30, 2002.  These financial statements are
the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing
standards generally accepted in the United States.  Those
standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial
position of AMASYS Corporation at June 30, 2002 and 2001,
and the results of its operations and its cash flows for
each of the three years in the period ended June 30, 2002,
in conformity with accounting principles generally accepted
in the United States.

                                       /S/ ERNST & YOUNG LLP

McLean, Virginia
September 25, 2002
<PAGE>
                               AMASYS Corporation
                                 Balance Sheets
<TABLE>
                                                                 June 30,
                                                          2002            2001
                                                       -------------  ------------
<S>                                                    <C>           <C>
Assets
Current assets:
 Cash and cash equivalents                             $     13,071    $    2,252
                                                       ------------   ------------
Total current assets                                         13,071         2,252

Note receivable - related party                             914,954       953,954
Investments in common stock                                 733,449     1,098,640
Reorganization value, net                                    -              8,338
                                                       ------------   ------------
Total assets                                           $  1,661,474   $ 2,063,184
                                                       ============   ===========

Liabilities and stockholders' equity(deficit)
Current liabilities:
 Accounts payable and accrued expenses                 $     23,962   $    86,541
                                                       ------------  ------------
Total current liabilities                                    23,962        86,541

Note payable - related party                                  -         2,329,455

Stockholders' equity (deficit):
Preferred stock, $.01 par value; 1,000,000 shares
authorized; 196,000 Series A shares issued and
outstanding; liquidation value $1,960,000
                                                             1,960         1,960
Common stock, $0.01 par value; 20,000,000 shares
authorized; 2,207,350 shares issued and outstanding         22,073        22,073
Accumulated other comprehensive income                     251,794        86,727
Retained earnings (deficit)                              1,361,685      (463,572)
                                                       -----------   ------------
Total stockholders' equity (deficit)                     1,637,512      (352,812)
Total liabilities and stockholders' equity (deficit)   $ 1,661,474   $ 2,063,184
                                                       ===========   ============
</TABLE>
See accompanying notes.
<PAGE>
                               AMASYS Corporation
                            Statements of Operations
<TABLE>
                                                      Years ended June 30,
                                                  2002        2001          2000
                                               ------------  ---------   ---------
<S>                                            <C>           <C>         <C>
Other income:
 Gain on sales of investment                   $   87,069    $   -       $   -
 Interest income                                   93,461      97,045      93,751
 Other income                                        -         58,203        -
                                               ------------  ---------   ---------
Total other income                                180,530     155,248      93,751
                                               ------------  ---------   ---------
Operating costs and expenses:
 Professional services                            227,696     258,924      39,348
 General and administrative                        35,756      50,128      17,346
 Amortization                                       8,338      33,358      33,358
                                               ------------  ---------   ---------
Total costs and expenses                          271,790     342,410      90,052
                                               ------------  ---------   ---------
Operating (loss) income                           (91,260)   (187,162)      3,699
Equity in earnings (losses)                      (220,242)     57,445     233,361
Interest expense                                 (134,911)   (197,239)   (179,761)
                                               -----------  ----------   ---------
Loss before income taxes                         (446,413)   (326,956)     57,299

Provision for income taxes                           -           -           -
                                               -----------  ----------   ---------
Income (loss) before extraordinary item          (446,413)   (326,956)     57,299
Extraordinary gain                               2,271,670       -           -
                                               -----------  ----------  ----------
Net income (loss)                              $ 1,825,257  $(326,956)  $  57,299
                                               ===========  ==========  ==========
Per share data:

Earnings per share - basic:
Basic net income (loss) per share before
extraordinary item                             $     (.20)  $    (.15)  $     .03
Extraordinary gain on debt extinguishment            1.03        -           -
                                               -----------  ----------  ----------
Net income(loss) per share                     $      .83   $    (.15)  $     .03
                                               ===========  ==========  ==========
Earnings per share - diluted:
Diluted net income (loss) per share before
extraordinary item                             $     (.20)  $    (.15)  $     .01
Extraordinary gain on debt extinguishment            1.03        -           -
                                               -----------  ----------  ---------
Net income(loss) per share                     $      .83   $    (.15)  $     .01
                                               ===========  ==========  =========
Weighted average number of shares:
 Basic                                          2,207,350   2,207,350   2,207,350
                                               ==========  ===========  =========
 Diluted                                        2,207,350   2,207,350   5,117,350
                                               ==========  ===========  =========
</TABLE>
See accompanying notes.
<PAGE>
                               AMASYS Corporation
                   Statement of Stockholders'Equity (Deficit)
                    Years ended June 30, 2002, 2001 and 2000
<TABLE>
                                         Common Stock         Preferred Stock
                                    ------------------------------------------
                                      Shares       Amount    Shares    Amount
                                    ------------------------------------------
<S>                                 <C>          <C>        <C>       <C>
Balance, June 30, 1999              2,207,350    $ 22,073   196,000   $  1,960

 Unrealized loss on investment          -            -          -         -
 Net income                             -            -          -         -
 Comprehensive income
                                    ----------   ---------  -------   ---------

Balance, June 30, 2000              2,207,350     22,073    196,000      1,960

    Unrealized gain on investment       -            -          -         -
    Net loss                            -            -          -         -
    Comprehensive loss
                                    ----------   ---------  -------   ---------

Balance, June 30, 2001              2,207,350     22,073    196,000      1,960

    Unrealized gain on investment       -           -          -          -
    Net income                          -           -          -          -
    Comprehensive income
                                    ----------   ---------  -------   ---------

Balance, June 30, 2002              2,207,350    $ 22,073   196,000   $  1,960
                                    ==========   =========  =======   =========
</TABLE>
See accompanying notes.
<PAGE>
<TABLE>
                                     Other        Retained        Total
                                  Comprehensive   Earnings    Stockholders'
                                     (Loss)       (Deficit)      Equity
                                     income                     (Deficit)
                                  ----------------------------------------
<S>                               <C>           <C>           <C>
Balance, June 30, 1999            $      -      $  (193,915)   $ (169,882)

 Unrealized loss on investment       (8,308)         -             (8,308)
 Net income                              -           57,299        57,299
                                                              ------------
 Comprehensive income                                              48,991
                                  ------------  ------------  ------------

Balance, June 30, 2000               (8,308)       (136,616)     (120,891)

    Unrealized gain on investment    95,035          -             95,035
    Net loss                           -           (326,956)     (326,956)
                                                              ------------
    Comprehensive loss                                           (231,921)
                                  ------------  ------------  ------------

Balance, June 30, 2001               86,727        (463,572)     (352,812)

    Unrealized gain on investment   165,067           -           165,067
    Net income                          -         1,825,257     1,825,257
                                                              ------------
     Comprehensive income                                       1,990,324
                                  ------------  ------------  ------------

Balance, June 30, 2002            $  251,794    $ 1,361,685    $1,637,512
                                  ============  ============  ============
</TABLE
See accompanying notes
<PAGE>
                               AMASYS Corporation
                            Statements of Cash Flows
<TABLE>
                                                             Years ended June 30,
                                                        2002         2001         2000
                                                     ----------   -----------  ----------

                                                  <C>          <C>          <C>
Operating activities
Net income (loss)                                    $1,825,257   $ (326,956)  $    57,299
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
 Equity in earnings                                     220,242      (57,445)     (233,361)
 Extraordinary gain                                  (2,271,670)        -           -
 Gain on sale of investment                             (87,069)
 Accrued interest on note payable                       132,212      196,303       179,761
 Amortization                                             8,338       33,358        33,358
 Changes in operating assets and liabilities:
 Interest receivable and other current assets              -           8,225        20,275
Accounts payable and accrued expenses                  (62,579)       74,035       (16,336)
                                                     ----------   ----------    ----------
Net cash (used in) provided by operating activities   (235,269)      (72,480)       40,996

Investing activities
Proceeds from sale of stock                            143,036          -           -
Proceeds from exercise of options to acquire COMTEX                     -           -
shares                                                 254,050
Proceeds from note receivable                           39,000        33,000        -
                                                     ---------    ----------   -----------
Net cash provided by investing activities              436,086        33,000        -

Financing activities
Proceeds from issuance of stockholder notes payable    240,000           -          -
Payment of stockholder notes payable                  (240,000)
Payment of PBGC note payable                          (189,998)          -          -
                                                     ---------     ----------   --------
Net cash used in financing activities                 (189,998)          -          -

Net increase (decrease) in cash and cash                10,819       (39,480)     40,996
equivalents
Cash and cash equivalents at beginning of year           2,252        41,732         736
                                                     ---------    ----------    ---------
Cash and cash equivalents at end of year             $  13,071    $    2,252    $ 41,732
                                                     =========    ==========    =========
</TABLE>
See accompanying notes.
<PAGE>
                     AMASYS CORPORATION

                NOTES TO FINANCIAL STATEMENTS

                June 30, 2002, 2001, and 2000

1.  Organization and Basis of Presentation

AMASYS Corporation (the "Company") was incorporated in
Delaware in 1992, and in 1996 received all remaining assets
of Infotechnology, Inc. ("Infotech"), a Delaware company,
following the completion of Infotech's Chapter 11 Bankruptcy
reorganization, in accordance with an Assignment and
Assumption Agreement, dated October 11, 1996.  The Company's
primary assets are its equity interests in and note
receivable from COMTEX News Network ("COMTEX") and Analex
Corporation ("Analex"), formerly known as Hadron, Inc. which
are also its principal sources of revenue.  The Company owns
2,153,437 shares of COMTEX, which represents an
approximately 16% interest at June 30, 2002.  The Company
owns approximately 1% of the outstanding common stock of
Analex.

The Company's principal business is the maintenance of its
equity interests in COMTEX and Analex and the Company's
revenues are derived from equity in earnings and interest
income related to these investments.

2.  Summary of Significant Accounting Policies

Risks and Uncertainties

Financial instruments that potentially subject the Company
to concentrations of credit risk consist primarily of cash
and cash equivalents.  The Company deposits its cash, which
at times may be in excess of the FDIC insurance limits, with
high credit quality financial institutions.

Use of Estimates

The preparation of financial statements in conformity with
accounting principles generally accepted in the United
States requires management to make estimates and assumptions
that affect the amounts reported in the financial statements
and accompanying notes.  Actual results could differ from
those estimates.

Cash Equivalents

Cash equivalents represent amounts invested in highly liquid
short-term investments that can be converted within three
months or less.
<PAGE>
2.  Summary of Significant Accounting Policies (continued)

Investments in Common Stock

The Company's equity interest in the common stock of COMTEX
provides the Company with significant influence over their
operations.  Accordingly, this investment is accounted for
using the equity method whereby the investment is recorded at
cost and subsequently adjusted for the Company's equity in the
income or loss of the investee and cash contributions and
distributions.

The Company has an equity interest in the common stock of
Analex.  This equity investment is classified as available for
sale and reported at fair value.  Unrealized gain or loss on
this security is reported in stockholders' equity as a
component of unrealized gain on investment.  The investment in
Analex was accounted for using the equity method until March
2000 when a change in control of Analex occurred.

Reorganization Value

Reorganization value represents the difference between the
fair value of assets and liabilities assigned and assumed in
connection with the Assignment and Assumption Agreement and is
amortized using the straight-line method for a period of five
years.  In the fiscal years ended June 30, 2002, 2001 and
2000, the Company recorded amortization of $8,338, $33,358,
and $33,358 respectively.  As of June 30, 2002 and 2001,
respectively, the accumulated amortization was $166,788 and
$158,450.

Income Taxes

The Company provides for income taxes in accordance with the
liability method.  Under this method, deferred tax assets and
liabilities are determined based on differences between
financial reporting and tax bases of assets and liabilities
and are measured using the enacted tax rates and laws expected
to be in effect when the differences are anticipated to
reverse.

Stock-Based Compensation

The Company accounts for its stock-based compensation in
accordance with APB No. 25, "Accounting for Stock Issued to
Employees" using the intrinsic value method.  The Company has
granted stock options for a fixed number of shares to
employees with an exercise price equal to the fair value of
the shares at the date of the grant, and, accordingly,
recognized no compensation expense for the stock option
grants.
<PAGE>
2.  Summary of Significant Accounting Policies (continued)

Earnings per Share

Basic earnings per share ("EPS") is computed by dividing net
earnings available to common shares by weighted average common
shares outstanding.  Diluted EPS is computed similarly, except
that it includes the dilutive effect of the assumed exercise
of stock options and conversion of preferred stock.

Fair Value of Financial Instruments

Interest receivable, accounts payable and accrued expenses and
other current assets and liabilities are carried at amounts
that reasonably approximate their fair values because of the
relatively short maturity of those instruments.  It is not
practical to estimate the fair value of the Company's note
receivable due to its unique nature.

Recent Accounting Pronouncements

In April 2002, the FASB issued SFAS No. 145, "Rescission of
FASB Statements No. 4, 44 and 64, Amendment of FASB Statement
No. 13, and Technical Corrections" ("SFAS No. 145") which
rescinds FASB Statement No. 4, "Reporting Gains and Losses
from Extinguishment of Debt," and an amendment of that
Statement, FASB Statement No. 64, "Extinguishment of Debt Made
to Satisfy Sinking-Fund Requirements".  It also rescinds FASB
Statement No. 44, "Accounting for Intangible Assets or Motor
Carriers," and amends FASB Statement No. 13, "Accounting for
Leases."  Finally SFAS No. 145 amends other existing
authoritative pronouncements to make various technical
corrections, clarify meanings, or describe their
applicablility under changed conditions.  The provisions
related to the rescission of FASB Statement No. 4 and its
amendment Statement No. 64 are effective for fiscal years
beginning after May 15, 2002 and all other provisions are
effective for financial statements issued on or after May 15,
2002.  The Company does not expect that any other provisions
of SFAS No. 145 will materially impact the Company subsequent
to adoption.  The Company believes that the gain from
extinguishment of debt is properly classified as extraordinary
under the provisions of APB 30, "Reporting the Results of
Operations."

In June 2001, the Financial Accounting Standards Board issued
Statements of Financial Accounting Standards No. 141,
"Business Combinations", and No. 142, "Goodwill and Other
Intangible Assets", effective for fiscal years beginning after
December 15, 2001. Under the new rules, goodwill will no
longer be amortized but will be subject to annual impairment
tests in accordance with the Statements. Other intangible
assets will continue to be amortized over their useful lives.
<PAGE>

2.  Summary of Significant Accounting Policies (continued)

The Company will apply the new rules on accounting for
goodwill and other intangible assets beginning in the first
quarter of fiscal year 2003. The Company anticipates that the
adoption of these new pronouncements will not have a
significant effect on its financial statements.

3.  Investments in Common Stock

The Company investments in common stock consist of the
following:

<TABLE>
                                       June 30,
                                2002             2001
                           ------------       -------------
 <S>                        <C>              <C>
Analex Corporation          $   381,532       $    272,434
COMTEX News Network             351,917            826,206
                           ------------       -------------
                           $    733,449       $  1,098,640
                           ============       =============
</TABLE>
The aggregate market value of the investments in common stock
as of June 30, 2002, based on the trading price on or nearest
to that date totaled $381,532 and $646,031 for Analex and
COMTEX, respectively.

The following information presents condensed balance sheet
information as of June 30, 2002 and 2001 and condensed income
statement information for each of the years ended June 30,
2002, 2001 and 2000 for COMTEX:
<TABLE>
                                     June 30,
                                2002         2001
                            --------------------------
                                  (in thousands)
<S>                         <C>          <C>
Current assets               $    2,144     $    2,633
Other assets                      3,456          3,932
Current liabilities               2,551          2,502
Long-term liabilities               948            954
</TABLE>

3.  Investments in Common Stock (continued)
<TABLE>
                                2002          2001          2000
                            ----------------------------------------
                                         (in thousands)
<S>                         <C>           <C>           <C>
Revenues                       $  12,248     $  16,598     $   12,645
Gross profit                       8,189        11,920          8,823
Net income                        (1,361)          265          1,241
</TABLE>
<PAGE>
4.  Note Receivable - Related Party

The Company was assigned a note receivable from COMTEX in
connection with the Assignment and Assumption Agreement, which
was initially recorded at its estimated fair value.  In June
1999, the note was amended to incorporate outstanding interest
of approximately $254,000 into the principal amount of the
note receivable, which is due July 1, 2002.  The note bears
interest at 10% and is collateralized by a continuing interest
in all receivables, purchase orders, and all patents and
technology now or hereafter held or received by COMTEX.

During August 2001, AMASYS and COMTEX signed an amendment to
the Note Payable to AMASYS, (Second Amendment to Amended,
Consolidated and Restated 10% Senior Subordinated Secured
Note) (the "Amended Note") extending the term of the note from
July 1, 2002 until July 1, 2008.  In addition to the extension
of the term, the Amended Note includes a provision for AMASYS
to convert all or a portion of the outstanding principal
amount, plus accrued interest, into common stock of COMTEX.
The Amended Note is convertible at a price of $1.00 per share,
which price increases by $0.10 upon each anniversary of the
amendment.

5.  Note Payable - Related Party

The Company entered into a Note Payable Agreement dated June
21, 1996 with the Pension Benefit Guaranty Corporation
("PBGC").  The note accrued interest at the rate of 9% per
annum compounded semi-annually.  The original terms of the
note stipulated that it was to be paid prior to its maturity
on December 31, 2006 from any proceeds received by the Company
from PBGC's pro-rata share of the proceeds of any and all
sales of the Company's stock positions in COMTEX and Analex
and value received from the 10% Senior Subordinated Note
issued by COMTEX to the Company on May 16, 1995.  If neither
of the above events occured prior to December 31, 2006, the
note would be considered cancelled.

5.  Note Payable - Related Party (continuted)

The Note was issued pursuant to the Third Joint Plan of
Reorganization of Infotechnology, Inc. and Questech Capital
Corporation dated January 26, 1994, which was confirmed by
order of the United States Bankruptcy Court dated June 24,
1994.

On February 15, 2002, the Company paid $189,998 to PBGC for
the note payable, pursuant to an agreement reached on February
1, 2002.  The difference between the carrying amount of the
debt at the date of payment and the amount paid was recorded
as an extraordinary gain on the income statement.
<PAGE>
The Company entered into two Note Payable agreements in the
amount of $120,000 each dated December 21, 2001 and February
12, 2002 with the President and Chief Executive Officer of the
Company.  These notes accrued interest at a rate of 10% per
annum and were payable on demand.  The Company paid off the
Notes Payable on February 26, 2002 from the proceeds of
exercise of options to acquire COMTEX shares by the Company's
Chief Executive Officer.

6.  Earnings per Share

The following table sets forth the computation of basic and
diluted earnings per share:
<TABLE>
                                                                 June 30,
                                                     2002          2001         2000
                                                  ------------------------------------------
<S>                                               <C>           <C>           <C>
Numerator:
     Net income (loss)                            $ 1,825,257   $   (326,956)   $    57,299
                                                  ==========================================
Denominator:
     Denominator for basic earnings per share -
     weighted average shares                        2,207,350      2,207,350      2,207,350

Effect of dilutive securities:
     Stock options                                       -              -           950,000
     Convertible preferred stock                         -              -         1,960,000
                                                  ------------------------------------------

     Denominator for diluted earnings per share     2,207,350      2,207,350      5,117,350
                                                  ==========================================
Basic earnings per share                          $       .83   $       (.15)   $       .03
Diluted earnings per share                        $       .83   $       (.15)   $       .01
</TABLE>

Shares issuable upon the exercise of stock options have been excluded
from the computation to the extent that their inclusion would be anti-
dilutive.

7.  Income Taxes

The following table reconciles the assumed statutory tax rate with the
effective rate to income tax expense:

<TABLE>
                                            Year ended June 30,
                                    ----------------------------------
                                       2002        2001        2000
                                    ----------------------------------
<S>                                 <C>         <C>         <C>
Tax benefit at statutory rate           (34.0)%   (32.1)%     (32.1)%
Reconciling items:
 Permanent items                          0.2%      4.5%         -
 State income taxes                      (5.5)%    (5.5%)      (5.5)%
 Change in valuation allowance           39.3%     33.1%       37.6%
                                    ----------------------------------
Effective tax rate                       (0.0)%    (0.0)%      (0.0)%
                                    ==================================
</TABLE>
<PAGE>
Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amount of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes.
Significant components of deferred tax assets are as follows (in thousands):

<TABLE>
                                     June 30,
                            --------------------------
                                2002          2001
                            --------------------------
<S>                         <C>           <C>
Net operating loss            $7,705,229    $ 7,747,297
carryforwards

Equity method reporting         (161,039)      (236,292)
                             --------------------------
                               7,344,191      7,511,005
Valuation allowance           (7,344,191)    (7,511,005)
                             --------------------------
Net deferred tax asset         $    -       $      -
                             ==========================
</TABLE>

In assessing the realizability of deferred tax assets, management
considers whether it is more likely than not that some or all of the
deferred tax asset will not be realized.  The ultimate realization of
the deferred tax asset is dependent upon the generation of future
taxable income during the periods in which the net operating loss
carryforwards are available.  Management considers projected future
taxable income, the scheduled reversal of deferred tax liabilities and
available tax planning strategies that can be implemented by the Company
in making this assessment.  Based upon the level of historical taxable
income and projections for future taxable income over the periods in
which the net


7.  Income Taxes (continued)

operating loss carryforwards are available to reduce income taxes
payable, management has established a valuation allowance such that the
net deferred tax asset is $0 as of June 30, 2002 and 2001.

As of June 30, 2002, the Company had net operating loss carryforwards
for federal income tax purposes of approximately $19 million that will
begin to expire in 2005.  Utilization of these net operating losses may
be subject to limitations under IRC Section 382, in the event of
significant changes in stock ownership of the Company.
<PAGE>
8.  Stockholders' Equity

Preferred Stock

The Company is authorized to issue 1,000,000 shares of preferred stock,
of which 196,000 shares have been designated as Series A Preferred Stock
(the "Preferred Stock").  The Preferred Stock was issued to PBGC in
connection with the Assignment and Assumption Agreement.  The Preferred
Stock is convertible into shares of common stock of the Company at the
rate of 10 shares of common stock for each share of Preferred Stock.
Holders of the Preferred Stock are entitled to receive dividends, when,
as, and if, declared by the board of directors at a cumulative annual
rate of $.50 per share.  The holders are entitled to a liquidation
preference of $10 per share, plus an amount equal to any accrued but
unpaid dividends to the payment date.  No such dividends have been
declared to date.  The holders of the Preferred Stock are entitled to
vote, along with the common stockholders, based on each share of
Preferred Stock, except in certain circumstances which require an
affirmative vote of a majority of the holders of Preferred Stock.  The
Company has the right to redeem the Preferred Stock, after payment of
the Note Payable to PBGC, at a price equal to the greater of $10.50 per
share or an amount computed based on market value, as defined, plus
accrued but unpaid dividends.

Stock Option Plan

The Company adopted a Stock Option Plan (the "Plan") under which 950,000
shares of common stock were reserved for issuance upon exercise of the
granted options.  The Plan provides for grants of incentive stock
options to eligible employees, officers, and directors of the Company.
Eligible employees are defined as any persons regularly employed by the
Company, including key employees and consultants.  Options were granted
with an exercise price equal to fair value at the date of grant.  The
term of the options granted under the Plan may not exceed 10 years.  The
stock options granted vest immediately.

8.  Stockholders' Equity (continued)

At June 30, 2002, 2001, and 2000, 950,000 options were outstanding and
exercisable.  All options outstanding were granted in November 1996.
There has been no stock option activity since the initial grants of
stock options. The exercise price of all options is $.01 per share.  The
weighted average remaining contractual life of options outstanding at
June 30, 2002, 2001, and 2000 is 4.3 years, 5.3 years, and 6.3 years,
respectively.
<PAGE>
9. Selected Quarterly Financial Information (Unaudited)

The following is a summary of the quarterly results of operations for
the years ended June 30, 2002 and 2001.

<TABLE>
                                                     Quarter Ended:
                              ---------------------------------------------------------------
                               September 30,    December 31,    March 31,         June 30,
                                   2001             2001          2002              2002
                              ---------------------------------------------------------------
<S>                             <C>              <C>            <C>            <C>
Other income                      $    38,072      $   24,051   $    (56,647)    $  (132,257)
Gross Profit                           38,072          24,051        (56,647)       (132,257)
Net Income/(Loss)                     (83,583)       (111,954)     2,138,458        (117,664)
Net Income/(Loss) per
share, basic                      $      (.04)     $     (.05)   $       .97     $      (.05)
Shares used in per share
calculation, basic                  2,207,350       2,207,350      2,207,350       2,207,350
Net Income per share, diluted     $      (.04)     $     (.05)   $       .42     $      (.05)
Shares used in per share
calculation, diluted                2,207,350       2,207,305      5,117,350       2,207,350
</TABLE>

<TABLE>
                                                     Quarter Ended:
                              ---------------------------------------------------------------
                               September 30,    December 31,       March 31,       June 30,
                                   2000             2000             2001            2001
                              ---------------------------------------------------------------
<S>                             <C>              <C>            <C>            <C>
Other income                      $   120,904      $    48,483   $    42,151     $      1,155
Gross Profit                          120,904           48,483        42,151            1,155
Net Income                             46,985          (43,872)      (90,866)        (239,203)
Net Income per share basic        $      0.02      $     (0.02)  $     (0.04)    $      (0.15)
Shares used in per share
calculation, basic                  2,207,350        2,207,350     2,207,350        2,207,350
Net Income per share, diluted     $      0.01      $     (0.02)  $     (0.04)    $      (0.15)
Shares used in per share
calculation, diluted                5,117,350        2,207,350     2,207,350        2,207,350

</TABLE>