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, 2001; 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 600, 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 __ No  X

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 September 21, 2001, there were 1,775,880 shares of stock held by
non-affiliates.

As of September 21, 2001, 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 Hadron, Inc. ("Hadron").
As of June 30, 2001, AMASYS had a 46% interest in COMTEX (21%
on a fully diluted basis, net of shares subject to option by
the Company's Chief Executive Officer) and a 3% equity
interest in Hadron.  The Company's principal business is the
maintenance of its equity interests in COMTEX and Hadron and
the Company's revenues are derived from equity in earnings
and interest income related to these investments.

     In October 1996, the Company filed a Form 8-A with the
Securities and Exchange Commission ("SEC") for registration
of its common and preferred shares of stock, pursuant to
Section 12(b) or 12(g) of the Securities Exchange Act of
1934.  In December 1996, the Company filed a Form 12B-25,
Notification of Late Filing, 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, pursuant to an order of the United
State Bankruptcy Court.  Infotech had not prepared audited
financial statements for over six years.

     In June 1997, the Company filed a Form 8-K with the SEC,
in which it disclosed, among other matters, that it had been
unsuccessful in multiple attempts to engage an accounting
firm to assist in the preparation and audit of its financial
statements.  In an ongoing effort to produce auditable
financial statements, the Company worked closely with the
independent accountants for COMTEX.
<PAGE>
     Other than the filings described heretofore, the Company
did not file reports with the SEC until July 2, 2001, at
which time the following reports were filed with 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.

Overview

     AMASYS is the successor to Infotech, pursuant to
Infotech's bankruptcy proceeding.  AMASYS' primary assets are
its equity interests in COMTEX and Hadron, which are also its
primary sources of revenue.  AMASYS owns 46% (21% on a fully
diluted basis) 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 46% equity ownership of COMTEX, the
Company also holds a Note in the amount of $953,954 from
COMTEX, and owns 202,000 shares of common stock of publicly-
held 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, 2001, Hadron had 6,535,804 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.

<PAGE>
COMTEX News Network, Inc.

     The Company owns 4,693,940 shares of common stock of
COMTEX News Network, Inc. (SEC File No. 0-10541), of which
2,540,503 shares are subject to option by the Company's Chief
Executive Officer at an exercise price of $.10 per share.
COMTEX trades on the OTC Electronic Bulletin Board under the
symbol CMTX.  COMTEX delivers aggregated content from
approximately 10,000 global sources representing a network of
over 70 real-time information providers to Web sites and
other online, wireless and electronic information services in
its distribution network.  COMTEX generates its revenues from
licensing content and processing services.  Real-time denotes
the electronic transmission of breaking news stories while
events are actually happening and, in most cases, before the
story's appearance in print and television media.  Using
proprietary automated technology, COMTEX re-packages these
wires into topical wires called CustomWiresr (see Product and
Service Offerings below).  Distributor partners choose those
CustomWires which best match their applications and end-
users' needs.  CustomWiresr include topics such as business,
finance, environment, healthcare, public companies and energy
and can include stories from any or all of COMTEX'
publishers.

     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.
<PAGE>
Hadron, Inc.

     The Company owns 202,000 shares of the common stock of
Hadron, Inc. (SEC File No. 0-5404), which trades on the OTC
Electronic Bulletin Board under the symbol HDRN.  Hadron
specializes in developing intelligence and biodefense
solutions in support of national security.  Hadron focuses on
developing technical solutions for the intelligence
community, analyzing and supporting defense systems
(including intelligent weapons systems and biological warfare
defense), and supporting computer systems.

Employees

     At June 30, 2001, 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.


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, with interest compounding semi-
     annually at 9% per year, due December 31, 2006.  The
     note is to be paid prior to maturity (i) from any
     proceeds received by the Company as a consequence of
     certain litigation and (ii) from the PBGC's "pro-rata"
     share (the PBGC's fully diluted percentage ownership of
     the Company's common stock) of the Company's sale of any
     and all of its stock positions or from value received
     from the 10% Senior Subordinated Note issued by COMTEX
     to Infotech on May 16,1995, the payment of such proceeds
     to be deemed payment of the note in whole.  If neither
     of the two events occurs prior to maturity of the note,
     the note shall be cancelled.
<PAGE>
2)   granted the PBGC the right to name two members to the
     Boards of Directors of both the Company and COMTEX, each of
     which Boards shall be comprised of no more than seven
     directors while the PBGC holds an interest in the companies;
     and

3)   granted the PBGC the unilateral right, through December
     31, 2001, to require the Company to use its best efforts to
     liquidate the Company's interest in Hadron and COMTEX through
     secondary offerings and private sales.  The PBGC's pro-rata
     share of such proceeds is to be allocated first to payment of
     the note above, then to the PBGC's $1.96 million distribution
     preference, then to payment to the PBGC of 10% of any amount
     realized over and above the $1.96 million distribution
     preference, but not to exceed $5 million.

     To date, the PBGC has not exercised its rights
relating to the AMASYS Board of Directors or the liquidation
of the Company's equity interests in COMTEX and Hadron.
There can be no assurance that the PBGC will not exercise its
authority, nor can the Company anticipate the effects of such
exercise.


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.

     COMTEX was named as a defendant in a lawsuit filed in
the United States District Court for the Northern District of
Alabama, Northeastern Division on August 25, 2000.  The suit
is captioned Clyde Collins Pearson (the "Plaintiff")
Individually and In His Capacity As Representative of the
Class of Emulex Corporation Shareholders Similarly Situated
v. Internet Wire, Inc.; COMTEX News Network, Inc.; and Emulex
Corporation.  The suit related to Plaintiff's sale of Emulex
Corporation stock in response to a false news release
disseminated by or on behalf of various defendants, including
COMTEX.  The complaint alleged that the defendants failed to
take reasonably necessary precautions to prevent the
distribution of the false press release attributed to Emulex.
Plaintiff is seeking $120,000.00 in actual damages, and
additional punitive damages.  COMTEX filed a motion to
dismiss the complaint, which was granted by the Court and the
case was dismissed July 5, 2001.  The time for filing a
notice of appeal has since expired.

     COMTEX filed a collection action against 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 defendant corporation filed
an Answer and Counterclaim alleging COMTEX breached its
agreement and seeks damages of $1,000,000 for lost business,
loss of reputation and goodwill.  The Company intends to
vigorously defend itself against the allegations in the
counterclaim.

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 September 21, 2001 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.  The Company
had no operations prior to the effective date of the Assignment
and Assumption Agreement on October 11, 1996.
<TABLE>
                                                             Fiscal Year Ended June 30,

(amounts in thousands except per share data)        2001      2000      1999      1998      1997
                                                   ------    ------    ------   -------    ------
<S>                                                <C>       <C>       <C>      <C>       <C>
Total Revenues                                     $ 213      $ 327     $ 205    $ 183     $ 209

Net Income (Loss)                                   (327)        57       (19)     (69)     (106)

Basic Net Income (Loss) Per Share                   (.15)       .03      (.01)    (.03)     (.05)
Diluted Net Income (Loss) Per Share                 (.15)       .01      (.01)    (.03)     (.05)
</TABLE>
<TABLE>
                                                    2001      2000      1999      1998      1997
                                                   ------    ------    ------   -------    ------
<S>                                                <C>       <C>       <C>      <C>        <C>
Balance Sheet Data at Year End:
   Total Assets                                    $2,063    $2,024    $1,812    $1,663    $1,587
   Long-term Obligations                            2,329     2,133     1,953     1,789     1,638
   Stockholders' Deficit                             (353)     (121)     (170)     (151)      (82)

</TABLE>
<PAGE>

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

REVENUE SOURCES AND REVENUE RECOGNITION

The Company's revenues are derived from equity in earnings
and interest income related to investments in COMTEX and
Hadron.  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 Hadron was accounted for using the equity
method through March 2000.  Due to a change in control at
Hadron in March 2000, in which a group of investors assumed
control of Hadron, the investment has since been accounted
for pursuant to SFAS 115 Accounting for Certain Investments
in Debt and Equity Securities.  The Hadron 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' deficit.  No investments have been made since
the initial acquisition of interests of COMTEX and Hadron in
1996, nor has there been any sale of interests nor any
dividends received.

RESULTS OF OPERATIONS

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 revenues
of $114,000 (35.0%) and an increase in operating costs and
expenses of $252,000 (280.2%).

Revenue.  Revenues decreased from $327,000 in 2000 to
$213,000 in 2001 primarily due to a decrease in equity in
earnings partially offset by an increase in other income.
Equity in earnings decreased $176,000 (75.4%) due primarily
to the decrease in the Company's share of earnings of COMTEX,
which reported net income of $265,000 in 2001
compared to $1,241,000 in 2000.  The Company also recorded
$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.
<PAGE>
Interest expense.  Interest expense increased due to an
increase in the note payable balance resulting from
compounded interest during the year.

Comparison of the Fiscal Year ended June 30, 2000 to the
Fiscal Year ended June 30, 1999

The Company earned net income of $57,000 in 2000 compared to
a loss of $(19,000) in 1999 due to an increase in revenues of
$122,000 (59.7%) offset by an increase in operating costs and
expenses of $31,000 (51.4%) and interest expense of $15,000
(9.2%).

Revenue.  Revenues increased to $327,000 in 2000 from
$205,000 in 1999 due to an increase in equity in earnings and
interest income.  Equity in earnings increased $102,000
(77.3%) due primarily to the increase in the Company's share
of earnings of COMTEX, which reported net income of
$1,241,000 in 2000 compared to $456,000 in 1999.  Interest
income increased from $73,000 in 1999 to $94,000 in 2000 as
the average balance of the note receivable from COMTEX
outstanding during 2000 was higher than 1999.

Operating costs and expenses.  Operating costs and expenses
increased $31,000 (51.4%) to $90,000 in 2000 due to an
increase in professional services and general and
administrative expenses.  Professional services increased
$23,000 primarily due to increased accounting fees associated
with a review of the Company's financial statements.  General
and administrative expenses increased $8,000 due to an
increase in office expenses associated with an overall
increase in activity.

Interest expense.  Interest expense increased due to an
increase in the note payable balance resulting from
compounded interest during the year.

LIQUIDITY AND CAPITAL RESOURCES

The Company had a deficiency in working capital of $84,000 at
June 30, 2001.  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
obligation through payments of prinicpal and interest from
the note receivable from COMTEX.
<PAGE>
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, note payable 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 and the note payable each bear interest at fixed
rates, thereby mitigating any exposure to market risk.  The
investment in 202,739 shares of Hadron, classified as
available-for-sale, had a fair market value of $272,431 at
June 30, 2001 and a cost basis of $185,705.  The investment
is carried at its fair market value.  The gross
unrealized gains of $86,727 at  June 30, 2001 has been
recorded as a separate component of stockholders' deficit in
other comprehensive income.

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 September 21, 2001
as to each director of the Company:
<TABLE>
                                  Director         Office Held
Name                              Since     Age    with the Company
----                              -------   ---    ---------------------
<S>                               <C>       <C>    <C>
C.W. Gilluly, Ed.D.	           1992     55	   Chairman of the Board,
								   President and
								   Chief Executive Officer

Robert F. Delaney <F1><F2>	     1992     76	   Director

Robert J. Lynch, Jr. <F1><F2>      1992     68     Director

Thomas E. McMahan <F1><F2>         1992     58	   Director

Robert A. Nigro <F1><F2>           1992     52     Director

</TABLE>
<F1> Member of the Audit Committee
<F2> 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 Hadron, Inc., 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-five 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.  Since April 1995, Mr.
Nigro has served as Chief Executive Officer of SEI Capital AG.  He
joined SEI Investments Company, as Senior Vice President in
November 1993.  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  22, 2001, 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 (47) 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 Hadron, Inc., an
information technology company serving the intelligence community,
from June 1991 through August 2000.

Section 16(A) Beneficial Ownership Reporting Compliance

     The Company notes that none of its Directors nor Officers
filed a timely Form 3 ("Initial Statement of Beneficial Ownership
of Securities") within ten days of the Company's being deemed to
have a class of equity securities registered pursuant to Section
13 of the Securities Exchange Act of 1934, as amended, following
the effectiveness of its Form 8-A on October 30, 1996.  In
addition, each Director and Officer failed to file a Form 5
("Annual Statement of Changes in Beneficial Ownership") for the
fiscal year ended June 30, 1997 to reflect the option grant
received by each Director and Officer on November 15, 1996.  The
Company also notes that each Director and Officer subsequently
filed on July 2,  2001 a Form 5 ("Statement of Changes in
Beneficial Ownership") for the fiscal year ended June 30, 2001.
<PAGE>

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,
2001.  Neither Dr. Gilluly nor any other officer of the Company
receives compensation in excess of $100,000 per year.
<TABLE>
                                                             Long-Term
                              Annual  Compensation      Compensation Awards
                              --------------------  ----------------------------
Name and             Fiscal                         Stock Options     All Other
Principal Position    Year      Salary     Bonus       Granted      Compensation
------------------   ------     ------     -----    -------------   ------------
<S>                  <C>        <C>        <C>       <C>            <C>
C.W. Gilluly <F1>     2001        -          -            -            $6,805
Chairman              2000        -          -            -            $6,805
                      1999        -          -            -               -
<FN>
<F1>  Dr. Gilluly has not received any salary since 1992.  In 1996,
      he received a grant of stock options, described below.  In
      fiscal year 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>
<PAGE>
Stock Option Grants

     No stock options were granted during the fiscal year ended
June 30, 2001.  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.

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, 2001.
<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, 2001         at June 30, 2001<F1>
Name            Options        of Option    Exercisable     Unexercisable   Exercisable   Unexercisable
----         -------------  --------------  -----------     -------------   -----------   -------------
<S>          <C>            <C>             <C>             <C>             <C>           <C>
C.W. Gilluly       -              -          350,000              -          $346,500           -
__________________________
<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 was $1.00, based on an assumed liquidation
     value of the Company's investments in COMTEX and Hadron;
     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 2001, each of
the Company's non-employee directors received compensation of
$2,500 for services rendered to the Company.
<PAGE>
Employment Agreements

   The Company has no employment agreements.

      Compensation Committee Report on Executive Compensation

2001 Compensation for the President and Chief Executive Officer

     The Committee reports that during the fiscal year ended June
     30, 2001, 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.

<PAGE>
Item 12.  Security Ownership of Certain Beneficial Owners and
Management

     The following table sets forth information as of September
21, 2001, 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 600, 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.
<TABLE>

Name and Address of                         Amount and Nature of   Percentage
 Beneficial Owner                           Beneficial Ownership    of Class<F1>
-------------------                         --------------------   -------------
<S>                                         <C>                    <C>
Pension Benefit Guaranty Corporation            1,960,000<F2>          47.0%
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 as a         960,991 <F7>         31.4
group (6 persons)
<PAGE>
<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.
  <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 Hadron.

     Of the 4,693,940 shares of common stock of COMTEX owned by
the Company, 2,540,503 shares are subject to option by Dr. Gilluly
at an exercise price of $.10 per share.  The option expires on
February 20, 2002.

      Dr. Gilluly and his spouse also directly own options to
acquire an additional 1,807,503 shares of COMTEX Common Stock.
<PAGE>
                              PART IV

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

      (a) 1. (a)  Financial Statements of AMASYS Corporation

               Report of Independent Auditors               F-1

               Balance Sheets at June 30, 2001 and 2000     F-2

               Statements of Operations for the fiscal
                 years ended June 30, 2001, 2000, and 1999  F-3

               Statement of Stockholders' Deficit
                 for the fiscal years ended June 30, 2001,
                 2000 and 1999                              F-4

               Statements of Cash Flows for the fiscal
               years ended June 30, 2001, 2000 and 1999     F-5

               Notes to Financial Statements                F-6

             (b)  Financial Statements of COMTEX News Network, Inc.
               Financial statements of COMTEX News Network, Inc. for
               the fiscal year ended June 30, 2001 (incorporated by
               reference from the COMTEX News Network, Inc. Form 10-K
               for the fiscal year ended June 30, 2001).

          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.



          (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 28, 2001


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 28, 2001
C.W. Gilluly, Ed.D.          and Director

/S/ ROBERT F. DELANEY        Director        September 28, 2001
Robert F. Delaney

/S/ ROBERT  J. LYNCH, JR.    Director        September 28, 2001
Robert J. Lynch, Jr.

/S/ THOMAS E. MCMAHAN        Director        September 28, 2001
Thomas E. McMahan

/S/ ROBERT A.NIGRO           Director        September 28, 2001
Robert A. Nigro

<PAGE>
<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, 2001 and 2000 and
the related statements of operations, stockholders' deficit,
and cash flows for each of the three years in the period
ended June 30, 2001.  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, 2001 and 2000,
and the results of its operations and its cash flows for
each of the three years in the period ended June 30, 2001,
in conformity with accounting principles generally accepted
in the United States.



McLean, Virginia
September 10, 2001
<PAGE>
<TABLE>
                               AMASYS Corporation
                                 Balance Sheets
                                                          June 30,
                                                    2001             2000
                                              ------------------------------
<S>                                         <C>               <C>
Assets
Current assets:
 Cash and cash equivalents                  $        2,252     $      41,732
 Interest receivable                                    -              8,225
                                              ------------------------------
Total current assets                                 2,252            49,957

Note receivable - related party                    953,954           986,954
Investments in common stock                      1,098,640           946,160
Reorganization value, net                            8,338            41,696
                                              ------------------------------
Total assets                                   $ 2,063,184     $   2,024,767
                                              ==============================
Liabilities and stockholders' deficit
Current liabilities:
 Accounts payable and accrued expenses       $      86,541     $      12,506
                                              ------------------------------
Total current liabilities                           86,541            12,506

Note payable - related party                     2,329,455         2,133,152

Stockholders' 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
Other comprehensive income (loss)                   86,727            (8,308)
Retained deficit                                  (463,572)         (136,616)
                                              ------------------------------
Total stockholders' deficit                       (352,812)         (120,891)
                                              ------------------------------
Total liabilities and stockholders'
deficit                                       $  2,063,184      $  2,024,767
                                              ==============================
</TABLE>
See accompanying notes.

<PAGE>
                     AMASYS Corporation
                  Statements of Operations
<TABLE>

                                          Years ended June 30,
                                      2001         2000        1999
                                  -------------------------------------
<S>                               <C>            <C>          <C>
Revenue:
 Equity in earnings               $    57,445    $ 233,361    $ 131,605
                                       57,445
 Interest income                       97,045       93,751       73,288
 Other income                          58,203       -              -
                                  -------------------------------------
Total revenue                         212,693      327,112      204,893
                                  -------------------------------------
Costs and expenses:
 Professional services                258,924       39,348       16,650
 General and administrative            50,128       17,346        9,462
 Amortization                          33,358       33,358       33,358
                                  -------------------------------------
Total costs and expenses              342,410       90,052       59,470
                                  -------------------------------------
Operating (loss) income              (129,717)     237,060      145,423

Interest expense                      197,239      179,761      164,613
                                  -------------------------------------
Income (loss) before income taxes    (326,956)      57,299      (19,190)

Provision for income taxes               -            -            -
                                  -------------------------------------
Net income (loss)                  $ (326,956)    $ 57,299    $ (19,190)
                                  =====================================
Per share data:

Net income (loss) per share:
 Basic                             $     (.15)    $    .03    $    (.01)
                                  =====================================
 Diluted                           $     (.15)    $    .01    $    (.01)
                                  =====================================

Weighted average number of shares:
shares:
 Basic                              2,207,350    2,207,350    2,207,350
                                  =====================================
 Diluted                            2,207,350    5,117,350    2,207,350
                                  =====================================
</TABLE>
See accompanying notes.
<PAGE>


ADD STOCKHOLDER DEFICIT CHART HERE



<PAGE>
<TABLE>
                               AMASYS Corporation
                            Statements of Cash Flows

                                                                   Year ended June 30,
                                                             2001        2000          1999
                                                         -------------------------------------
<S>                                                      <C>           <C>          <C>
Operating activities
Net income (loss)                                        $ (326,956)   $ 57,299     $ (19,190)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities:
 Equity in earnings                                         (57,445)   (233,361)     (131,605)
 Accrued interest on note payable                           196,303     179,761       164,613
 Amortization                                                33,358      33,358        33,358
 Changes in operating assets and
liabilities:
 Interest receivable and other                               8,225       20,275       (53,777)
current assets
Accounts payable and accrued expenses                       74,035      (16,336)        3,650
                                                         -------------------------------------
Net cash provided by (used in) operating activities        (72,480)      40,996        (2,951)

Financing activities
Proceeds from note receivable                               33,000        -             -
                                                         -------------------------------------
Net cash provided by financing activities                   33,000        -             -
                                                         -------------------------------------
Net increase (decrease) in cash and cash equivalents       (39,480)      40,996        (2,951)
Cash and cash equivalents at beginning of year              41,732          736         3,687
                                                         -------------------------------------
Cash and cash equivalents at end of  year                 $  2,252   $   41,732      $    736
                                                         =====================================
</TABLE>

See accompanying notes.
<PAGE>
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 Hadron,
Inc. ("Hadron"), which are also its principal sources of
revenue.  The Company owns 4,693,940 shares of Comtex, of
which 2,540,503 shares are subject to option by the
Company's Chief Executive Officer at an exercise price of
$.10 per share.  This results in an effective interest, for
purposes of applying the equity method, in Comtex at June
30, 2001 of approximately 21%.  The Company owns
approximately 3% of the outstanding common stock of Hadron.

The Company's principal business is the maintenance of its
equity interests in Comtex and Hadron 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
Hadron.  This equity investment is classified as available
for sale and reported at fair value.  Unrealized gain or
loss on this security is reported in other comprehensive
income, a component of stockholders' deficit.  The
investment in Hadron was accounted for using the equity
method until March 2000 when a change in control of Hadron
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 each of the fiscal years ended June 30,
2001, 2000 and 1999, the Company recorded amortization of
$33,358.  As of June 30, 2001 and 2000, respectively, the
accumulated amortization was $158,450 and $125,092.

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, which 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 or note payable due to
their unique nature.

Recent Accounting Pronouncements

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.

The Company will apply the new rules on accounting for
goodwill and other intangible assets beginning in the first
quarter of 2002. 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:
                                         June 30,
                                 2001            2000
                             -------------  --------------
Hadron, Inc.                 $    272,434    $   177,399
Comtex News Network               826,206        768,761
                             -------------  --------------
                             $  1,098,640    $   946,160
                             =============  ==============
<PAGE>
3.  Investments in Common Stock (continued)

The aggregate market value of the investments in common
stock as of June 30, 2001, based on the trading price on or
nearest to that date totaled $272,434 and  $1,615,078 for
Hadron and Comtex, respectively.  The market value of the
investment in Comtex is based on the Company's effective
interest of approximately 21% of Comtex' outstanding common
stock.

The following information presents condensed balance sheet
information as of June 30, 2001 and 2000 and condensed
income statement information for each of the years ended
June 30, 2001, 2000 and 1999 for Comtex:

                                       June 30,
                                    2001       2000
                                 ---------------------
                                    (in thousands)
Current assets                   $  2,633     $  3,928
Other assets                        3,932        2,049
Current liabilities                 2,502        2,612
Long-term liabilities                 954          987


                               2001        2000         1999
                            ----------------------------------
                                       (in thousands)

Revenues                    $  16,598    $   12,645  $   7,557
Gross profit                   11,920         8,823      4,744
Net income                        265         1,241        456

<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.

On August 31, 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
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").  PBGC also is the holder of the Company's Series A
preferred stock - see note 8.  The note accrues interest at
the rate of 9% per annum compounded semi-annually.
The note is 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 Hadron 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
occurs prior to December 31, 2006, the note will be considered
cancelled.
<PAGE>
5.  Note Payable - Related Party (continued)

In addition, PBGC has the unilateral right, through December
31, 2001, to require the Company to use its best efforts to
liquidate PBGC's pro-rata positions in Comtex and Hadron
through secondary offerings and private sales.

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 and finalized on January 2, 1997.

6.  Earnings per Share

The following table sets forth the computation of basic and diluted earnings per
share:
<TABLE>
                                                                  June 30,
                                                       2001         2000            1999
                                                 -------------------------------------------
<S>                                              <C>           <C>             <C>
Numerator:
  Net income (loss)                               $ (326,956)       $ 57,299      $ (19,190)
                                                 ===========================================
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      5,117,350       2,207,350
                                                 ============================================
Basic net income(loss) per share                   $     (.15)      $     .03    $       (.01)

Diluted net income (loss) per share                $     (.15)      $     .01    $       (.01)

</TABLE>
<PAGE>
7.  Income Taxes


The following table reconciles the assumed statutory income tax
to with the effective rate of income tax expense:
<TABLE>
                                                 Year ended June 30,
                                         ----------------------------------
                                           2001         2000         1999
                                         ----------------------------------
<S>                                      <C>          <C>         <C>
Tax (benefit)expense at statutory rate   (32.1)%       (32.1)%      (32.1)%
Reconciling items:
 Permanent items                           4.5             -            -
 State income taxes                       (5.5)         (5.5)        (5.5)
 Change in valuation allowance            33.1          37.6         37.6
                                         ----------------------------------
Effective tax rate                        (0.0)%        (0.0)%       (0.0)%
                                         ==================================
</TABLE>

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):

                                               June 30,
                                     ---------------------------
                                       2001            2000
                                     ---------------------------
Net operating loss carryforwards     $ 7,747,297     $ 7,617,330

Equity method reporting                 (236,292)       (214,675)
                                     ---------------------------
                                       7,511,005       7,402,655
Valuation allowance                   (7,511,005)     (7,402,655)
                                     ---------------------------
Net deferred tax asset               $     -         $    -
                                     ===========================
<PAGE>
7.  Income Taxes (continued)

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 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, 2001 and 2000.

As of June 30, 2001, the Company had net operating loss
carryforwards for federal income tax purposes of
approximately $20.6 million, most of which will have expired
by 2011.

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.
<PAGE>
8.  Stockholders' Equity (continued)

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.

At June 30, 2001, 2000, and 1999, 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, 2001, 2000, and 1999 is 5.3 years,
6.3 years, and 7.3 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, 2001 and 2000.   The
results for the quarter ended September 30, 2000 reflect  an
adjustment  due  to  stock-based  compensation  recorded  by
Comtex, which was not included in Amasys' Form 10-Q for that
period.
<TABLE>
                                                     Quarter Ended:
                              -------------------------------------------------------------------------
                               September 30, 2000   December 31, 2000    March 31,2001   June  30, 2001
                              -------------------------------------------------------------------------
<S>                           <C>                   <C>                  <C>            <C>
Revenues                      $  120,904             $   48,483          $   42,151     $    1,155
Gross Profit                     120,904                 48,483              42,151          1,155
Net Income/(Loss)                 46,985                (43,872)            (90,866)      (239,203)
Net Income/(Loss) per share
basic                         $     0.02             $    (0.02)         $    (0.04)    $    (0.11)
Shares used in per share
calculation, basic             2,207,350              2,207,350           2,207,350      2,207,350
Net Income per share, diluted
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>

9. Selected Quarterly Financial Information (Unaudited) (continued)
<TABLE>
                                                        Quarter Ended:
                               -------------------------------------------------------------------------
                               September 30, 1999   December 31, 1999    March 31, 2000    June 30, 2000
                               -------------------------------------------------------------------------
<S>                            <C>                  <C>                  <C>               <C>
Revenues                          $   63,012         $    70,948            $   80,111        $  113,041
Gross Profit                          62,012              70,948                80,111           113,041
Net Income                             8,486              (4,715)               23,349            30,179

Net Income per share basic
                                  $    0.004         $    (0.002)           $    0.011       $     0.014
Shares used in per share
calculation, basic                 2,207,350           2,207,350             2,207,350         2,207,350
Net Income per share, diluted     $    0.002         $    (0.002)           $    0.005       $     0.006
Shares used in per share
calculation, diluted               5,117,350           2,207,350             5,117,350         5,117,350
</TABLE>
 <PAGE>