UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D. C.  20549
                                 FORM 10-Q

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

              For the quarterly period ended September 30, 2000
                                or
          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934
          For the transition period from  __________ to ____________

                      Commission file number     1-9603

                          STEVENS INTERNATIONAL, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

              Delaware                                  75-2159407
             ------------------------------------------------------
    (State or other jurisdiction of                  (IRS Employer
    incorporation or organization)                 Identification No.)

                  5700 E. Belknap, Fort Worth, Texas 76117
             ------------------------------------------------------
              (Address of principal executive offices) (zip code)

                                817/831-3911
             ------------------------------------------------------
              (Registrant's telephone number, including area code)

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

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

                          Yes    XX     No  _____

                    APPLICABLE ONLY TO CORPORATE ISSUERS:
 Indicate the number of shares outstanding of each of the issuer's classes of
 common stock, as of the latest practicable date.

        Title of Each Class           Outstanding at November 8, 2000
 -------------------------------      -------------------------------
 Series A Stock, $0.10 Par Value                7,466,447
 Series B Stock, $0.10 Par Value                2,035,686

<PAGE>

                         TABLE OF CONTENTS


 Part I.   FINANCIAL INFORMATION                                  PAGE NUMBER
                                                                  -----------
   Item 1. Financial Statements

            Consolidated Condensed Balance Sheets                      3
            December 31, 1999 and September 30, 2000
            (unaudited)

            Consolidated Condensed Statements of Operations            4
            Three and Nine months ended September 30, 2000 and 1999
            (unaudited)

            Consolidated Condensed Statements of                       5
            Stockholders' Equity December 31, 1999 and
            Nine months ended September 30, 2000  (unaudited)

            Consolidated Condensed Statements of Cash Flows            6
            Nine months ended September 30, 2000 and 1999
            (unaudited)

            Notes to Consolidated Condensed Financial                  7
            Statements (unaudited)

   Item 2. Management's Discussion and Analysis of                    10
           Financial Condition and Results of Operations


 Part II.  OTHER INFORMATION

   Item 1. Legal Proceedings                                          14
   Item 6. Exhibits and Reports on Form 8-K                           14

   CAUTIONARY  STATEMENT  -  This Form  10-Q  may  contain  statements  which
   constitute "forward-looking"  information as that term  is defined in  the
   Private Securities Litigation Reform Act of 1995 or by the Securities  and
   Exchange  Commission  ("SEC") in  its  rules,  regulations  and  releases.
   Stevens International,  Inc. (the "Company")  cautions investors that  any
   such forward-looking statements made by the Company are not guarantees  of
   future  performance and  that actual  results may  differ materially  from
   those in  the forward-looking statements. Some  of the factors that  could
   cause actual results to differ materially from estimates contained in  the
   Company's forward-looking  statements are set forth  in the Form 10-K  for
   the year ended December 31, 1999.
<PAGE>
<TABLE>

                 STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
                    CONSOLIDATED CONDENSED BALANCE SHEETS
                  (Amounts in thousands, except share data)

<CAPTION>
                                           September 30, 2000 December 31, 1999
                                                  -------         --------
                                                (unaudited)
  <S>                                            <C>             <C>
                       ASSETS
  Current assets:
    Cash                                         $     11        $       6
    Trade accounts receivable, less allowance
      for losses of $92 at September 30, 2000
      and $70 at December 31, 1999                    441              936
    Costs and estimated earnings in excess of
      billings on long-term contracts                   -              109
    Inventories  (Note 3).                          4,865            6,303
    Other current assets                              306               93
    Assets held for sale  (Note 6)                      -              363
                                                  -------         --------
           Total current assets                     5,623            7,810
  Property, plant and equipment, net                1,615            1,795
  Other assets, net                                   495              657
                                                  -------         --------
                                                 $  7,733        $  10,262
                                                  =======         ========
<PAGE>
  LIABILITIES AND STOCKHOLDERS' DEFICIT
  Current liabilities:
    Trade accounts payable                       $  1,355        $   2,120
    Other current liabilities                         944            1,691
    Income taxes payable                              110              110
    Customer deposits                                 158              641
    Current portion of long-term debt  (Note 4)     1,996            2,070
                                                  -------         --------
           Total current liabilities                4,563            6,632
  10% convertible subordinated notes payable        1,050                -
  Note payable - stockholder                        7,595            6,158
  Accrued pension costs (Note 10)                     632            3,110
  Commitments and contingencies                         -                -
  Stockholders' deficit:
    Preferred stock, $0.10 par value, 2,000,000
     shares authorized, none issued and outstanding     -                -
    Series A common stock, $0.10 par value,
     20,000,000 shares authorized, 7,467,000 and
     7,459,000 shares  issued and outstanding at
     September 30, 2000 and December 31, 1999         746              745
    Series B common stock, $0.10 par value,
     6,000,000 shares authorized, 2,036,000 and
     2,044,000 shares  issued and outstanding at
     September 30, 2000 and December 31, 1999         204              205
    Additional paid-in-capital                     40,961           39,961
    Accumulated other comprehensive
     loss (Note 10)                                     -           (2,549)
    Accumulated deficit                           (48,018)         (44,000)
                                                  -------         --------
           Total stockholders' deficit             (6,107)          (5,638)
                                                  -------         --------
                                                 $  7,733        $  10,262
                                                  =======         ========

  See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>

                    STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                     (UNAUDITED)
                    (Amounts in thousands, except per share data)


                                          Three months ended  Nine months ended
                                            September 30,       September, 30,

                                            2000      1999      2000     1999
                                           ------    ------    ------   ------
 <S>                                      <C>       <C>       <C>      <C>
 Net sales                                $ 1,008   $ 2,415   $ 3,049   $8,304
 Cost of sales                                789     1,930     3,000    4,856
                                           ------    ------    ------   ------
 Gross profit                                 219       485        49    3,448
 Loss on impairment of asset values             -       200         -      200
 Selling, general and administrative
   expenses                                   674     1,115     2,377    3,511
                                           ------    ------    ------   ------
 Operating loss                              (455)     (830)   (2,328)    (263)
 Other income (expense):
   Interest income                              -        30         6       31
   Interest expense                          (245)     (220)   (1,631)    (577)
   Other, net                                 336        26       208      (89)
   Loss on sale of assets (Note 6)              -        (3)     (273)     (48)
                                           ------    ------    ------   ------
                                               91      (167)   (1,690)    (683)
                                           ------    ------    ------   ------
 Loss before income taxes                    (364)     (997)   (4,018)    (946)
 Income tax benefit                             -         3         -        -
                                           ------    ------    ------   ------
 Net loss                                 $  (364)  $  (994)  $(4,018)   $(946)
                                           ======    ======    ======   ======

 Loss per share - basic and
   diluted (Note 8):
      Net loss - basic and diluted        $ (0.04)  $ (0.10)  $ (0.42) $ (0.10)
                                           ======    ======    ======   ======
 Weighted average number of shares of
   common stock outstanding during the
   periods - basic and diluted (Note 8)     9,502     9,492     9,502    9,492
                                           ======    ======    ======   ======

 See notes to consolidated condensed financial statements.

</TABLE>
<PAGE>
<TABLE>

                     STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                    (Unaudited)
                              (Amounts in thousands)

                                                                                   Accumulated
                                                           Additional                 Other
                         Series A Stock   Series B Stock    Paid-In               Comprehensive
                         Shares  Amount   Shares  Amount    Capital    (Deficit)      Loss         Total
                         ------  ------   ------  ------    --------    --------    ----------   --------
<S>                       <C>      <C>     <C>      <C>      <C>        <C>           <C>        <C>
Balance, January 1, 2000  7,459    $745    2,044    $205     $39,961    $(44,000)     $ (2,549)  $ (5,638)
 Net (loss)                   -       -        -       -           -      (4,018)            -     (4,018)
 Beneficial conversion
  feature on convertible
  subordinated notes
  (Note 4)                    -       -        -       -       1,000           -             -      1,000
 Termination of Pension
  Plans                       -       -        -       -           -           -         2,549      2,549
 Conversion of Series B
  stock to Series A stock     8       1       (8)     (1)          -           -             -          -
                          -----    ----    -----    ----     -------    --------      --------   --------
Balance,
 September 30, 2000       7,467    $746    2,036    $204     $40,961    $(48,018)     $      0   $ (6,107)
                          =====    ====    =====    ====     =======    ========      ========   ========


 See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>

                 STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
               CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
                            (Amounts in thousands)

                                                         Nine Months Ended
                                                           September 30,
                                                    --------------------------
                                                     2000                1999
                                                    -------            -------
  <S>                                              <C>                <C>
  Cash provided by operations:
   Net (loss)                                      $ (4,018)          $   (946)

   Adjustments to reconcile net (loss)
     to net cash provided by (used in)
     operating activities:
       Depreciation and amortization                    230                599
       Interest imputed on 10% convertible notes      1,000                  -
       Other                                             71                (88)
      Changes in operating assets and liabilities:
        Trade accounts receivable                       495                769
        Contract costs in excess of billings            109               (577)
        Inventories                                   1,438             (1,254)
        Other assets                                    (23)               109
        Trade accounts payable                         (765)              (464)
        Other liabilities                            (1,229)               616
                                                    -------            -------
  Total cash used in operating activities            (2,692)            (1,236)
                                                    -------            -------
  Cash provided by (used in) investing activities:
    Additions to property, plant and equipment          (86)               (32)
    Disposal of equipment and property                  370                987
                                                    -------            -------
  Total cash provided by investing activities           284                955
                                                    -------            -------
  Cash provided by (used in) financing activities:
    Proceeds from 10% convertible debt                  900                  -
    Net proceeds from (repayments of) long-term debt  1,587                133
    Decrease in current portion of long-term debt       (74)               (11)
                                                    -------            -------
  Total cash provided by financing activities         2,413                122
                                                    -------            -------
  Increase (decrease) in cash and temporary
    investments                                           5               (159)
  Cash and temporary investments at beginning
    of period                                             6                164
                                                    -------            -------
  Cash and temporary investments at end of period  $     11           $      5
                                                    =======            =======
  Supplemental disclosure of cash flow information:
      Cash paid during the period for:
        Interest                                   $    226           $    190
        Income taxes                                    -0-                -0-

  See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>

                 STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
             Notes to Consolidated Condensed Financial Statements
                            (Unaudited)


 1.   The consolidated condensed balance sheet as of September 30, 2000,  the
      consolidated condensed statement of stockholders' equity for the period
      ended September  30, 2000,  the  consolidated condensed  statements  of
      operations for the three and nine  months ended September 30, 2000  and
      1999, and the consolidated condensed statements  of cash flows for  the
      nine month periods ended September 30, 2000 and 1999 have been prepared
      by the  Company without  audit.   In  the  opinion of  management,  all
      adjustments necessary to  present fairly the  financial position as  of
      September 30, 2000 and the results of operations for the three and nine
      months ended September  30, 2000 and  1999 and the  cash flows for  the
      nine months ended  September 30,  2000 and 1999  have been  made.   The
      December 31, 1999 consolidated condensed balance sheet is derived  from
      the audited  consolidated balance  sheet as  of  that date.    Complete
      financial statements for  December 31, 1999  and related notes  thereto
      are included in the Company's Annual  Report on Form 10-K for the  year
      ended December 31, 1999 (the "1999 Form 10-K").

      The above financial  statements have been  prepared in accordance  with
      the instructions  to  Form  10-Q  and  therefore  do  not  include  all
      information included in the 1999 Form 10-K.  The results of  operations
      for the three and nine months ended September 30, 2000 and 1999 are not
      necessarily indicative of the results to be expected for the full year.

 2.   The  Company  designs,  manufactures,  markets  and  services   web-fed
      packaging and printing systems and related equipment for its  customers
      in the packaging industry and in the specialty/commercial and  banknote
      and securities segments  of the printing  industry.   The Company  also
      markets and manufactures high-speed image processing systems  primarily
      for use in the banknote and securities printing industry.  The  Company
      combines various types of equipment capable of converting and printing,
      among other  items,  food  and beverage  containers,  liquid  container
      cartons,  banknotes,  postage  stamps,  lottery  tickets,  direct  mail
      inserts,  personal   checks   and   business   forms.   The   Company's
      technological and engineering capabilities allow  it to combine any  of
      the four major printing technologies (offset, flexography,  rotogravure
      and intaglio) in its  systems.  Complete press  systems are capable  of
      multiple color  and multiple  size printing  and perform  such  related
      functions  as  numbering,  punching,  perforating,  slitting,  cutting,
      creasing, folding and stacking.  The  presses can be custom  engineered
      for non-standard form size and special auxiliary functions.

 3.   Inventories consist of the following:

                                         September 30,  December 31,
                                            2000         1999
                                           ------       ------
                                            (Amounts in thousands)
        Finished product .............    $   304      $ 1,396
        Work in progress .............        199          349
        Raw materials ................      4,362        4,558
                                           ------       ------
                                          $ 4,865      $ 6,303
                                           ======       ======
<PAGE>
 4.   For  a  description  of  the  status  of  the  bank   credit   facility
      at September  30,   2000,  see   "Liquidity  and   Capital  Resources".
      Substantially all  assets of  the Company  continue  to be  pledged  as
      collateral on the Company's credit facilities.

      On March  31, 2000,  the Company  completed the  funding of  a  private
      placement of  $1 million  of 10%  convertible subordinated  notes  (the
      "Notes") due March 31, 2003.  Net  proceeds of the Notes were used  for
      working capital.  The  Notes were issued in  increments of $50,000  and
      are  convertible  into  2,000,000  shares  of  Series  A  Common  Stock
      ("SVEIA")  of  the Company  at $0.50 per share,  subject to adjustment.
      The conversion of  the Notes is  at the holder's  option anytime on  or
      after the fifteenth day following the original issue date of the  Notes
      and prior to the close of business on their maturity date.  Issue costs
      for the Notes aggregated approximately $151,000.  Accrued interest  for
      the six months ended September 30, 2000 was paid by issuing $50,000  of
      new 10%  convertible subordinated  notes with  identical terms  as  the
      Notes.

      The Company has committed to register the shares that would be issuable
      upon conversion of the Notes.  Dilution to existing shareholders  would
      occur as a result of the conversion of the Notes to 2,100,000 shares of
      Series A  common stock.    Should all  the  Notes be  converted,  these
      shareholders would own  approximately 17% of  the outstanding stock  of
      the Company.  The first quarter  of 2000 included a charge for  imputed
      interest expense of $1 million with a corresponding $1 million increase
      in "Paid in  Capital in  Excess of  Par Value"  for the  excess of  the
      market value of the common stock over the conversion price.

 5.   The Company is subject to  various claims, including product  liability
      claims, which arise in the ordinary course of business, and is a  party
      to  various  legal   proceedings  that   constitute  ordinary   routine
      litigation incidental to the Company's business.  A successful  product
      liability claim brought against  the Company in  excess of its  product
      liability coverage  could  have  a material  adverse  effect  upon  the
      Company's business, operating results and financial condition.

      In management's opinion, the Company has adequate legal defense  and/or
      insurance coverage in respect to each  of these legal actions and  does
      not believe that such actions, if they occur either individually or  in
      the aggregate,  will  materially  affect the  Company's  operations  or
      financial position.   See "Legal Proceedings"  herein and  in the  1999
      Form 10-K.

 6.   A description of the Company's divestitures in 2000 and 1999 follows:

      Sale of SSMI

      In January  2000,  the  Company sold  its  French  repair  and  service
      company, SSMI,  for a  net aggregate  consideration of  $198,200.   The
      transaction resulted  in  an  aggregate 1999  loss  of  $1.65  million,
      including a 1999 loss on sale  of $0.05 million and a related  non-cash
      foreign currency adjustment of $1.6  million which had been  previously
      reported as a charge against  stockholders equity in accumulated  other
      comprehensive loss.   SSMI  had  1999 revenues  of  $3 million  and  an
      operating loss of $0.13 million.  Net proceeds of this transaction were
      used to repay a portion of the  loans from Paul I. Stevens, which  were
      partially collateralized by a lien on this subsidiary.
<PAGE>

      Sale of Hamilton Production and Storage Facilities in 1999

      In the second quarter  of 1999, the Company  concluded the sale of  the
      real  property  at  its  Hamilton,  Ohio  production  facility  for  an
      aggregate consideration of  $725,000.   The transaction  resulted in  a
      small loss due to certain unanticipated costs of vacating the facility.
       Proceeds of these transactions were used to repay certain expenses  of
      the sale,  certain property  taxes  and repay  a  portion of  the  $2.5
      million loan from  Paul I. Stevens,  the Company's  chairman and  chief
      executive officer,  which was  partially collateralized  by a  lien  on
      these production and storage facilities.

 7.   The Company's effective tax rate was 0% in 2000 and 6.5% in 1999.   Due
      to accumulated losses, there were no  recoverable income taxes for  the
      three and nine months ended September 30, 2000.

 8.   Basic  EPS  excludes  dilution  and  is  computed  by  dividing  income
      available to  common shareholders  by  the weighted-average  number  of
      common shares outstanding  for the period.   Diluted  EPS reflects  the
      potential dilution that could occur if securities or other contracts to
      issue common stock were exercised or converted into common stock.

 9.   Disclosure of segment data follows:

<TABLE>
           Segments                Three months ended      Nine months ended
                                      September 30,          September 30,
                                     2000       1999        2000       1999
                                    -----      -----      ------      -----
 <S>                               <C>        <C>        <C>        <C>

 Revenues:
  Banknote inspection, printing
    and packaging equipment        $1,008     $1,416     $ 3,049     $6,147

  French repair and service             -        999           -      2,157
                                    -----      -----      ------      -----
      Consolidated                 $1,008     $2,415     $ 3,049     $8,304


 Loss before tax:
  Banknote inspection, printing
    and Packaging equipment        $ (364)    $ (986)    $(4,018)    $ (844)

  French repair and service             -        (11)          -       (102)
                                    -----      -----      ------      -----
     Consolidated                  $ (364)    $ (997)    $(4,018)    $ (946)
</TABLE>

 There were no significant intersegment revenues.  The basis of  segmentation
 has not changed since December 31, 1999.
<PAGE>

 10.  In October, 2000, the Pension Benefit Guaranty Corporation approved  an
      involuntary termination, effective November  15, 1999, of both  pension
      plans of the Company and agreed to take over all assets and liabilities
      of  the  plans,  as  well  as  all  future  administrative  and  fiscal
      responsibilities for payment of pension  benefits to employees.   Based
      upon the termination of both pension plans of the Company, a net amount
      of $0.376 million is reflected as other income during the third quarter
      2000, as follows (amounts in 000's)

      Impact on statement of operations - income (expense):
         Termination of pension plan liabilities             $ 3,557
         Termination of related "Other comprehensive
          loss" for pension plans                             (2,549)
         Revised pension plan liability, at present
          value of seven years payments                         (632)
                                                              ------
         Other income - net                                  $   376
                                                              ======

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

 RECENT DEVELOPMENTS

 Stevens International,  Inc.  is continuing  to  experience month  to  month
 losses and  cash  flow  difficulties.   The  Company  is  exploring  various
 alternatives to  solve  these  problems,  including  raising  of  additional
 capital,  spin  off  or  sale  of  assets,  recapitalization,  mergers,  and
 aggressive  pursuit  of  all  available  currency  and  printing   equipment
 prospects.  There can be no assurance that any of these initiatives will  be
 successful.

 In September,  2000, the  Company entered  into discussions  for a  possible
 combination with Graphic Systems Services,  Inc., a privately held  printing
 equipment manufacturer located in Springboro,  Ohio.  The combination  would
 involve the issuance  by Stevens  International of  shares of  its Series  A
 Common Stock  for the  Graphics Systems  Services business.   The  Series  A
 Common Stock has not  been and will not  be registered under the  Securities
 Act of 1933  and may  not be offered  or sold  in the  United States  absent
 registration  or  an applicable  exception  from  registration requirements.
 Terms of  the potential  transaction remain  to  be determined  between  the
 parties.

 RESULTS OF OPERATIONS

 Comparison of Nine Months Ended September 30, 2000 and 1999

 Sales  The  Company's sales  for the nine  months ended  September 30,  2000
 decreased by $5.3  million (or 63.3%)  compared to sales in the same  period
 in 1999 due primarily to decreases in packaging products ($3.1 million)  and
 French service and repair sales ($2.2 million).
<PAGE>

 Gross Profit      The Company's  gross  profit  for the  nine  months  ended
 September 30, 2000 decreased by $3.4 million compared to gross profit in the
 same period in 1999.  The gross profit margin decreased to 1.6% of sales  as
 compared to 41.5% in  the comparable period in  1999 due to continuing  high
 costs of idle plant and underutilized personnel due to low production volume
 in 2000.   The  margin in  1999 was  due, (1)  to product  mix, shipment  of
 products at  near  normal  margins, and  reduced  depreciation  and  product
 development costs; and (2) the Company's evaluation of its last-in first-out
 ("LIFO") inventory  reserve and  corresponding decrement  in the  calculated
 LIFO reserve.  The Company evaluated its LIFO inventory reserve  principally
 because of the sale  of its machining and  production facilities in Ohio  in
 mid-1998 and the complete 1998 changeover of manufacturing philosophy from a
 "machine and make the component parts"  to  a  "purchase the machined part."
 This LIFO evaluation process reduced the 1999 LIFO reserve calculation  and,
 accordingly, increased the gross profit by $1.3 million (or $0.14 per share)
 for the nine months ended September 30, 1999.

 Selling,  General  and  Administrative  Expenses    The  Company's  selling,
 general, and administrative  expenses decreased by  $1.1 million (or  32.3%)
 for the nine months ended September 30, 2000 compared to the same period  in
 1999 due  to  cost  reduction efforts  at  corporate  headquarters  and  the
 manufacturing location  in  connection with  the  reduced volume  of  sales.
 Selling, general  and  administrative expenses  for  the nine  months  ended
 September 30, 2000 were 78% of sales compared to 42.3% of sales for the same
 period in 1999  due to  the substantial  reduction in  sales in  2000.   The
 reduction in  expenses  was not  proportionate  to the  reduction  in  sales
 discussed above.

 Other Income (Expense)    The Company's interest  expense increased by  $1.1
 million for the nine  months ended September 30,  2000 compared to the  same
 period in 1999 due to the $1.0  million in imputed interest recorded on  the
 issuance of the 10% convertible subordinated  notes due March 31, 2000  (see
 Note 4) and the interest on  the 10% convertible subordinated notes  through
 September 30, 2000.    Interest  income was negligible  for the nine  months
 ended September 30, 2000 and 1999.   Other income in 2000 resulted from  the
 termination of the Company's two pension plans and a corresponding reduction
 in plan liabilities.  The loss  on sale of assets  of $0.27 million in  2000
 was a  result  of the  sale  of certain  assets  and settlement  of  certain
 obligations retained in the sale of Zerand Division in 1998.


 Comparison of Three Months Ended September 30, 2000 and 1999

 Sales  The  Company's sales for  the three months  ended September 30,  2000
 decreased by $1.4  million (or 58.3%)  compared to sales in the same  period
 in 1999  due primarily  to decreases  in  packaging systems  products  ($0.4
 million) and to  decreased sales resulting  from the sale  of SSMI in  early
 January 2000, which contributed $1.0 million  in sales in the third  quarter
 of 1999.
<PAGE>

 Gross Profit    The  Company's  gross profit  for  the  three  months  ended
 September 30, 2000 decreased by $0.3 million compared to gross profit in the
 same period in 1999  due primarily to decreased  sales volume for  packaging
 systems, increased costs  from the absorption  of fixed costs  over a  lower
 volume  of  shipments,  all  net  of    reduced  depreciation  and   product
 development costs in 2000.  Gross profit margin for 2000 increased 21.7%  of
 sales as compared to 20.1% for 1999.   This increase in gross profit  margin
 in 2000 was  due primarily  to shipments  of parts  in 2000  at near  normal
 profit margin, and certain third  quarter positive adjustments in  completed
 jobs, offset by the high cost of idle plant and underutilized personnel.

 Selling,  General  and  Administrative  Expenses    The  Company's  selling,
 general, and administrative  expenses decreased by  $0.4 million (or  39.6%)
 for the three months ended September 30, 2000 compared to the same period in
 1999  due  to continuing cost reduction efforts,  and the 2000 sale of SSMI.
 Selling, general  and administrative  expenses for  the three  months  ended
 September 30, 2000 were 66.9%  of sales compared to  46.2% of sales for  the
 same period in  1999 due  to the  large decrease  in sales  in 2000.     The
 reduction in  expenses  was not  proportionate  to the  reduction  in  sales
 discussed above.

 Other Income (Expense)   The  Company's interest expense slightly  increased
 for the three months ended September 30, 2000 compared to the same period in
 1999 resulting from increased borrowing and  increased interest rates.   The
 other income in  2000 resulted  from the  termination of  the Company's  two
 pension plans and a corresponding reduction in plan liabilities.


 TAX MATTERS

 The Company's effective state  and federal income  tax rate ("effective  tax
 rate") was 0% for 2000 and 1999.    Due to continuing losses in 2000,  there
 were no  recoverable  tax benefits  for  the  three and  nine  months  ended
 September 30, 2000.

 LIQUIDITY AND CAPITAL RESOURCES

 Liquidity and Capital Resources

 The Company requires capital  primarily to fund  its ongoing operations,  to
 service its  existing  debt  and  to  pursue  penetration  of  international
 markets.  The Company's working capital needs typically increase because  of
 a number of factors, including the duration of the manufacturing process and
 the relatively large size of printing equipment orders.

 Net cash provided by (used in) operating activities (before working  capital
 requirements) was  $(2.72)  million  in the first  nine months  of 2000  and
 $(0.4) million in the first nine  months of 1999.  Working capital  provided
 (used) cash of $0.03 million in 2000 and $(0.8) million in 1999.
<PAGE>

 On March 31, 2000, the Company completed the funding of a private  placement
 of $1 million of 10% convertible subordinated notes ("the Notes") due  March
 31, 2003.  Net  proceeds of the Notes  were used for  working capital.   The
 Notes were issued in increments of  $50,000 and are convertible into  shares
 of Series  A Common  Stock ("SVEIA")  of  the Company  at $0.50  per  share,
 subject to adjustment.  On September 30, 2000 the Company elected to pay the
 first six months  interest on  the Notes  by issuing  $50,000 of  additional
 notes with terms  identical to  the Notes.   If all  convertible notes  were
 converted to  Common SVEIA  shares, noteholders  would be  issued  2,100,000
 shares of SVEIA.   The conversion  of the Notes  is at  the holder's  option
 anytime on or after the fifteenth  day following the original issue date  of
 the Notes and prior to the close of business on their maturity date.   Issue
 costs for the Notes aggregated approximately $151,000.

 The Company's  capital  expenditures were  $86,000  in 2000  and  were  used
 primarily for certain equipment modernization.

 The company's bank  credit facility  bears interest at 1 1/4% over prime and
 matures June  30, 2001.   Under  the bank  facility, the  Company's  maximum
 borrowings are limited to a borrowing base formula, which cannot exceed $4.0
 million and may be  in the form  of direct borrowings and letters of credit.
 As of September 30, 2000 there were $1.996 million in direct borrowings  and
 no standby letters of credit  outstanding, with approximately $0.01  million
 additional availability  for  such  borrowings.    The  Company  is  not  in
 compliance with some of the covenants of its senior bank line of credit loan
 agreement.   The principal default involved the failure to make the required
 pension plan payments in 1999 and  2000, which necessitated the filing of  a
 distress termination request (see below).   The Company's senior lender  had
 declined to grant waivers of the defaults.    Although the bank can  declare
 the full amount of the loan immediately payable at any time, it has not done
 so.  The senior bank debt is classified as a current obligation at September
 30, 2000.

 The Company's bank credit facilities have  first liens on certain assets  of
 the Company, principally inventory,  accounts receivable, and the  Company's
 Texas real  estate.   Paul I.  Stevens' loans  aggregating $7.6  million  at
 September 30,  2000 have  first  liens on  certain  assets of  the  Company,
 principally the  assets  of  a  foreign  subsidiary,  and  certain  accounts
 receivable for new customer equipment.    Mr. Stevens  has  second liens  on
 all other assets of the Company.  The secured loans from Paul I. Stevens are
 due December 31, 2001  and bear interest at  rates that vary  up to 2%  over
 bank prime.

 The borrowings  under  the  bank credit  facility  are  subject  to  various
 restrictive covenants related to financial ratios as well as limitations  on
 capital expenditures  and  additional  indebtedness.   The  Company  is  not
 allowed to pay dividends.

 The Company was unable to pay  certain pension plan minimum payments due  on
 September 15, 1999.  Accordingly, the Company filed the necessary forms with
 the Pension  Benefit  Guaranty  Corporation ("PBGC")  to  initiate  distress
 terminations of the Company's two defined  benefit pension plans.  The  PBGC
 is a federal agency  that insures and protects  pension benefits in  certain
 pension  plans  when  the  sponsoring  company  cannot  make  the   required
 contributions to fund projected benefit obligations of the plans.
<PAGE>

 The Company's low volume of printing  press sales has resulted in  extensive
 lay-offs, plant closings and sales of  certain operating divisions over  the
 past three  years.   The reduction  in employment  has, in  turn, created  a
 higher than normal demand for  pension benefits necessitating the  Company's
 decision to file for distress termination of the plans. In October 2000, the
 PBGC approved  an  involuntary termination  of  both pension  plans  of  the
 Company and agreed to take over all  assets and liabilities of the plans  as
 well as  all  future  administrative and  fiscal  responsibilities  for  the
 payment of pension benefits to employees (see Note 10).  The PBGC, on behalf
 of the  Company's pension  plan for  bargaining  unit employees,  has  filed
 federal liens in the aggregate amount  of $1.6 million against all  property
 and rights to property of the Company.

 The Company may incur,  from time to time,  additional short- and  long-term
 bank indebtedness (under its existing credit facility or otherwise) and  may
 issue, in public or private transactions, its equity and debt securities  to
 provide  additional  funds  necessary  for  the  continued  pursuit  of  the
 Company's operational strategies.   The availability and  terms of any  such
 sources of financing will depend on market and other conditions.  There  can
 be no assurance  that such  additional financing  will be  available or,  if
 available, will  be on  terms and  conditions  acceptable  to  the  Company.
 Through September  30,  2000, the  Company's  Chairman and  Chief  Executive
 Officer has loaned the Company $7.6  million for its cash requirements.   As
 of September 30, 2000, this amount has not been repaid.

 The success  of the  Company's plans  will continue  to be  impacted by  its
 ability to  achieve a  satisfactory level  of orders  for printing  systems,
 timely deliveries, the degree of international orders (which generally  have
 less favorable cash  flow terms and  require letters of  credit that  reduce
 credit availability), and improved terms of  domestic orders.  There can  be
 no assurance that the Company will be successful in these endeavors.

 Backlog and Orders   The Company's backlog of  unfilled orders at  September
 30, 2000 was approximately $0.9 million compared to $2.5 million at December
 31, 1999 .  The backlog of packaging systems at September 30, 2000 decreased
 $1.2  million as compared to year-end 1999.  The sale of SSMI decreased  the
 backlog $0.4 million.  The backlog at September 30 in each of the  preceding
 five years has ranged from a low of $4.2 million in 1998 to a high of  $27.4
 million in 1996.

 Orders for  the nine  months  ended September  30,  2000 were  $3.0  million
 compared to $10.7 million for the  comparable period in 1999, a decrease  of
 $7.7 million while shipments  decreased $5.3 million.   The decreased  order
 flow is the result of no major  printing and packaging system orders in  the
 first nine months of 2000.

 When sales are recorded under the  completed contract method of  accounting,
 the Company normally experiences  a six to nine  month lag between the  time
 new orders are booked and the time  they are reflected in sales and  results
 of operations.  Larger orders, which are accounted for using the  percentage
 of completion method of  accounting, are reflected in  sales and results  of
 operations as the project progresses through the manufacturing cycle.
<PAGE>

 PART II  OTHER INFORMATION

 Item 1.  Legal Proceedings

 The Company  is  subject  to various  claims,  including  product  liability
 claims, which arise in the  ordinary course of business,  and is a party  to
 various  legal  proceedings  that  constitute  ordinary  routine  litigation
 incidental to the Company's business.   No assurance can be given  regarding
 the outcome of any case; however  a negative outcome in excess of  insurance
 coverage could have  a material adverse  effect on  the Company's  business,
 operating results and financial condition.


 Item 6.  Exhibits and Reports on Form 8-K

          (a)  Exhibits:

    Exhibit  Number Description of Exhibit
      3.1    Second Amended and Restated Certificate ofIncorporation of
             the Company.(1)
      3.2    Bylaws of the Company, as amended.(2)
      4.1    Specimen of Series A Common Stock Certificate.(3)
      4.2    Specimen of Series B Common Stock Certificate.(4)
      4.3    Specimen of 10% Convertible Subordinated Note due March 31,
             2003. (6)
     10.1    Asset Contract to Purchase Real Estate dated February 8, 1999
             by and between
             the Company and Production Manufacturing, Inc. (5)
     11.1    Computation of Net Income per Common Share.(*)
     27.1    Financial Data Schedule.(*)


  *   Filed herewith.
 (1)  Previously filed as an exhibit  to the Company's  Annual Report on Form
      10-K for the year ended December 31,  1990 and  incorporated herein  by
      reference.
 (2)  Previously filed as an exhibit  to the Company's Registration Statement
      on Form S-1 (No. 33-15279) and incorporated herein by reference.
 (3)  Previously filed as an exhibit  to the Company's Registration Statement
      on Form S-1 (No. 33-24486) and incorporated herein by reference.
 (4)  Previously  filed  as  an  exhibit  to the Company's report on Form 8-A
      filed August 19, 1988 and incorporated herein by reference.
 (5)  Previously  filed as an exhibit  to the Company's Annual Report on Form
      10-K  for the year  ended December 31,  1998 and incorporated herein by
      reference.
 (6)  Previously  filed as an exhibit to the Company's  Annual Report on Form
      10-K  for the year ended December 31, 1999 and  incorporated herein  by
      reference.

    (b)  Reports on Form 8-K.

 The Registrant filed a Current Report on  Form 8-K dated August 31, 2000  to
 report:  1) A service parts alliance with Graphic Systems Services  ("GSS"),
 Springboro, OH designed to better serve  the parts and service needs of  the
 combined  companies  customers;  and,     2)  Discussions  for  a   possible
 combination with  GSS involving  the issuance  by Stevens  International  of
 shares of its Series A Common Stock for the GSS business; all under Item  5.
 Other Events.
<PAGE>

                            SIGNATURES


 Pursuant to the requirements of the Securities Exchange Act of 1934, Stevens
 International, Inc. has duly caused this  report to be signed on its  behalf
 by the undersigned thereunto duly authorized.


                                    STEVENS INTERNATIONAL, INC.





 Date: November 10, 2000            By: /s/  Paul I. Stevens
                                    ----------------------------------
                                    Paul I. Stevens
                                    Chief Executive Officer
                                    and Acting Chief Financial Officer