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 June 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 August 7, 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 June 30, 2000
            (unaudited)

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

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

            Consolidated Condensed Statements of Cash Flows            6
            Six months ended June 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 4. Submission of Matters to a vote of Security Holders         14
   Item 6. Exhibits and Reports on Form 8-K                            15

   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>
                                               June 30, 2000  December 31, 1999
                                                  -------         --------
                                                (unaudited)
  <S>                                            <C>             <C>
                       ASSETS
  Current assets:
    Cash .............................           $     19        $      6
    Trade accounts receivable, less allowance
      for losses of $86 at June 30, 2000 and
      $70 at December 31, 1999 .......                674             936
    Costs and estimated earnings in excess
      of billings on long-term contracts              109             109
    Inventories  (Note 3). ...........              5,243           6,303
    Other current assets .............                318              93
    Assets held for sale  (Note 6) ...                 --             363
                                                  -------         -------
           Total current assets ......              6,363           7,810
  Property, plant and equipment, net .              1,684           1,795
  Other assets, net ..................                564             657
                                                  -------         -------
                                                 $  8,611        $ 10,262
                                                  =======         =======
<PAGE>

  LIABILITIES AND STOCKHOLDERS' DEFICIT
  Current liabilities:
    Trade accounts payable ...........           $  1,374        $  2,120
    Other current liabilities ........              1,264           1,691
    Income taxes payable                              110             110
    Customer deposits ................                583             641
    Current portion of long-term debt (Note 4)      2,149           2,070
                                                  -------         -------
           Total current liabilities                5,480           6,632
  10% convertible subordinated notes payable        1,000             ---
  Note payable - stockholder .........              7,313           6,158
  Accrued pension costs ..............              3,110           3,110
  Commitments and contingencies                       ---             ---
  Stockholders' deficit:
    Preferred stock, $0.10 par value,
      2,000,000 shares authorized ....                ---             ---
    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 June 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 June 30, 2000 and December 31, 1999          204             205
    Additional paid-in-capital .......             40,961          39,961
    Accumulated other comprehensive loss           (2,549)         (2,549)
    Accumulated deficit ..............            (47,654)        (44,000)
                                                  -------         -------
           Total stockholders' deficit             (8,292)         (5,638)
                                                  -------         -------
                                                 $  8,611        $ 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    Six months ended
                                               June 30,             June 30,

                                            2000      1999      2000      1999
                                           ------    ------    ------   ------
 <S>                                      <C>       <C>       <C>      <C>
 Net sales .....................          $ 1,220   $ 2,575   $ 2,041  $ 5,889
 Cost of sales .................            1,357     1,015     2,211    2,926
                                           ------    ------    ------   ------
 Gross profit (loss) ...........             (137)    1,560      (170)   2,963
 Selling, general and administrative
   expenses ....................              850     1,263     1,703    2,396
                                           ------    ------    ------   ------
 Operating income (loss) .......             (987)      297    (1,873)     567
 Other income (expense):
   Interest income  ............                6       ---         6      ---
   Interest expense ............             (185)     (180)   (1,386)    (356)
   Other, net ..................              (74)      (67)     (128)    (115)
   Gain(loss) on sale of assets
    (Note 6) ...................             (273)      (45)     (273)     (45)
                                           ------    ------    ------   ------
                                             (526)     (292)   (1,781)    (516)
                                           ------    ------    ------   ------
 Income (loss) before income taxes         (1,513)        5    (3,654)      51
 Income tax (expense) benefit ..              ---       ---       ---       (3)
                                           ------    ------    ------   ------
 Net Income (loss)   ...........          $(1,513)  $     5   $(3,654) $    48
                                           ======    ======    ======   ======

 Earnings (loss) per share - basic and
   diluted (Note 8):
     Net income (loss) - basic and
       diluted                            $( 0.16)  $  0.00   $( 0.38) $  0.01
                                           ======    ======    ======   ======
 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   Accumulated 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) ......          ---     ---      ---     ---         ---      (3,654)          ---     (3,654)
 Beneficial conversion
 feature on  convertible    ---     ---      ---     ---       1,000         ---           ---      1,000
 subordinated notes
 (Note 4)
 Conversion of Series B
   stock to Series A
   stock ...........          8       1      (8)      (1)        ---         ---           ---        ---
                          -----    ----    -----    ----     -------    --------      --------   --------
Balance, June 30, 2000    7,467    $746    2,036    $204     $40,961    $(47,654)     $ (2,549)  $ (8,292)
                          =====    ====    =====    ====     =======    ========      ========   ========


               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)


                                                         Six Months Ended
                                                            June 30,
                                                    --------------------------
                                                     2000                1999
                                                    -------            -------
  <S>                                              <C>                <C>
  Cash provided by operations:
   Net income (loss) ......................        $(3,654)           $     48

   Adjustments to reconcile net income
     (loss) to net cash provided by
     (used in) operating activities:
       Depreciation and amortization .......           195                 412
       Interest imputed on 10% convertible notes     1,000                 ---
       Other ...............................           273                (134)
       Changes in operating assets and liabilities:
          Trade accounts receivable .........          262                 620
          Contract costs in excess of billings         ---                  79
          Inventories .......................        1,060                (521)
          Other assets ......................         (160)               (104)
          Trade accounts payable ............         (746)               (823)
          Other liabilities .................         (485)               (447)
                                                    -------             -------
  Total cash used in operating activities....       (2.255)               (870)
                                                    =======             =======
  Cash provided by (used in) investing activities:
      Additions to property, plant and equipment       (63)                (32)
      Disposal of equipment and property ..             97                 756
                                                    -------             -------
  Total cash provided by investing activities           34                 724
                                                    -------             -------
  Cash provided by (used in) financing activities:
      Proceeds from 10% convertible debt               850                 ---
      Net proceeds from (repayments of) long-term
        debt ....................................    1,384                 118
      Decrease in current portion of long-term
        debt  ...................................      ---                  (7)
                                                    -------             -------
    Total cash provided by financing activities      2,234                 111
                                                    -------             -------
  Increase (decrease) in cash and temporary
    investments .............................           13                 (35)
  Cash and temporary investments at beginning of
    period ..................................            6                 164
                                                    -------             -------
  Cash and temporary investments at end of period $     19            $    129
                                                    =======             =======
  Supplemental disclosure of cash
    flow information:
      Cash paid during the period for:
        Interest .............................    $    116            $    125
        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  June 30,  2000,  the
      consolidated condensed statement of stockholders' equity for the period
      ended  June  30,  2000,   the  consolidated  condensed  statements   of
      operations for the three and six  months ended June 30, 2000 and  1999,
      and the consolidated  condensed statements of  cash flows  for the  six
      month periods  ended June 30, 2000  and 1999 have been prepared by  the
      Company without audit.  In the  opinion of management, all  adjustments
      (which include only normal recurring adjustments) necessary to  present
      fairly the financial position  as of June 30,  2000 and the results  of
      operations for the three  and six months ended  June 30, 2000 and  1999
      and the cash flows for the six months ended June 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 six  months ended  June 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.
<PAGE>

 3.   Inventories consist of the following:

                                          June 30,   December 31,
                                            2000         1999
                                            -----        -----
                                          (Amounts in thousands)
        Finished product .............     $  386       $1,396
        Work in progress .............        271          349
        Raw materials ................      4,586        4,558
                                            -----        -----
                                           $5,243       $6,303
                                            =====        =====

 4.   For a description of the status of the bank credit facility at June 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").  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.

      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 2,000,000 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.
<PAGE>

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

      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.

      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 six months ended June 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.
<PAGE>

 9.   Disclosure of segment data follows:
<TABLE>

            Segments               Three months ended      Six months ended
                                       June 30,               June 30,
                                     2000       1999        2000       1999
                                    -----      -----       -----      -----
 <S>                               <C>        <C>         <C>        <C>
 Revenues:
  Banknote inspection, printing
    and packaging equipment        $1,220     $2,019      $2,041     $4,731

  French repair and service           ---        556         ---      1,158
                                    -----      -----       -----      -----
      Consolidated                 $1,220     $2,575      $2,041     $5,889


 Income(Loss) before tax:
  Banknote inspection, printing
    and Packaging equipment       $(1,513)      $ 96     $(3,654)      $123
   French repair and service          ---        (91)        ---        (72)
                                    -----      -----       -----      -----
     Consolidated                 $(1,513)       $ 5     $(3,654)      $ 51

</TABLE>

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



 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.

 RESULTS OF OPERATIONS

 Comparison of Six Months Ended June 30, 2000 and 1999

 Sales  The Company's sales for the six months ended June  30, 2000 decreased
 by $3.8 million (or  65.3%) compared to sales in the same period in 1999 due
 primarily to  decreases  in packaging  products  ($2.7 million)  and  French
 service and repair sales ($1.1 million).
<PAGE>

 Gross Profit   The Company's gross profit for the six months ended June  30,
 2000 decreased by $3.1 million compared  to gross profit in the same  period
 in 1999.  The gross profit margin decreased to  (8.3%) of sales as  compared
 to 50.3% 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
 (approximately 28.3%);  and  (2) the  Company's  evaluation of  its  last-in
 first-out ("LIFO)  inventory  reserve  and corresponding  decrement  in  the
 calculated LIFO reserve (approximately 22%).  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 six months ended June 30, 1999.

 Selling,  General  and  Administrative  Expenses    The  Company's  selling,
 general, and administrative  expenses  decreased by  $0.7 million (or 28.9%)
 for the six  months ended June 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 six months ended  June
 30, 2000 were  83.4% of sales  compared to    40.7%  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  $1.0
 million for the six months ended June  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).
 Interest income was negligible for the  six months  ended June 30, 2000  and
 1999.  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 June 30, 2000 and 1999

 Sales   The  Company's  sales for  the  three  months ended  June  30,  2000
 decreased by $1.3 million (or 52.6%) compared to sales in the same period in
 1999 due primarily to decreases in packaging systems products ($0.8 million)
 and to decreased  sales resulting  from the sale  of SSMI  in early  January
 2000, which contributed $0.5 million in sales in the second quarter of 1999.
<PAGE>

 Gross Profit  The Company's gross profit for the three months ended June 30,
 2000 decreased by   $1.7 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.  Further, in 1999 the Company evaluated its last-in first out ("LIFO")
 inventory reserve in conjunction with the sale of its production facility in
 Ohio including certain inventory, and other inventory usage.  The  financial
 impact of the  decrement in the  LIFO inventory for  the three months  ended
 June 30, 1999 was $1.03 million.  Accordingly, the gross profit for the 1999
 three months was  increased $1.03  million ($0.11  per share)  and the  LIFO
 reserve was reduced $1.03 million.   Gross profit margin for 2000  decreased
 to a gross margin loss of (11.4%) of sales  as compared to  60.6% for  1999.
 This decrease in gross profit margin in  2000 was due primarily to the  very
 low volume  of  shipments in  2000  and 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 32.7%)
 for the three months ended June 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 June
 30, 2000 were 69.7% of sales compared to 49.0% 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 June 30, 2000 compared to the same period in 1999
 offset by a small amount of interest income.  The loss on sale of assets  of
 $0.27 million in 2000 was a result of  the final sale of certain assets  and
 settlement of certain obligations retained in the sale of Zerand Division in
 1998.


 TAX MATTERS

 The Company's effective state  and federal income  tax rate ("effective  tax
 rate") was 0%  for 2000 and  6.5% for 1999.    Due  to continuing losses  in
 2000, there were no  recoverable tax benefits for  the three and six  months
 ended June 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 its strategic objectives  including
 new product  development  and 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 most orders.

 Net cash provided by (used in) operating activities (before working  capital
 requirements) was $(2.19) million in the first six months of 2000 and $  0.3
 in the first six months  of 1999.  Working  capital provided (used) cash  of
 $(0.07) million in 2000 and $(1.2) 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").   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.

 The Company's  capital  expenditures were  $63,000  in 2000  and  were  used
 primarily for certain equipment modernization.

 The company's bank  credit facility  bears interest  at 13%  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 June 30, 2000  there were $2.149 million  in direct borrowings and  no
 standby letters  of credit  outstanding,  with approximately  $0.02  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 June  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 $7.3 million at  June
 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 September  30,
 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.  The filings  have
 begun a  series of  negotiations  with the  PBGC  regarding funding  of  the
 pension benefits of employees.  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 June 30, 2000,  the Company's Chairman  and Chief Executive  Officer
 has loaned the Company $7.3 million for  its cash requirements.  As of  June
 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.   While  the
 Company believes  it is  making progress  in these  areas, 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 June  30,
 2000 was approximately $0.9 million compared to $2.5 million at December 31,
 1999 .  The  backlog of packaging  systems at June  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 June 30 in each of the preceding  five
 years has ranged  from a low  of $4.5  million in 1999  to a  high of  $27.4
 million in 1996.

 Orders for the six months ended June 30, 2000 were $2.0 million compared  to
 $7.9 million for the comparable period  in 1999, a decrease of $5.9  million
 while shipments decreased  $3.8 million.   The decreased order  flow is  the
 result of no  major printing and  packaging system orders  in the first  six
 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 2.  Submission of Matters to a Vote of Security Holders

 The Company held its 2000 Annual Meeting of Stockholders (the "Meeting")  on
 May 25, 2000.   At the Meeting, the  stockholders of the Company  considered
 and voted upon the following matters, with the results indicated:

 (1)      The following directors, constituting  all of the directors of  the
   Company, were elected to serve as directors for the ensuring year:


          Series A Nominees           Votes For        Votes Against
          -----------------           ---------        -------------
          Michel A. Destresse         6,971,173            22,312

          Edgar H. Schollmaier        6,971,873            21,612



          Series B Nominees
          -----------------
          Paul I. Stevens             2,029,749             4,237

          Richard I. Stevens          2,029,674             4,312

          Constance I. Stevens        2,029,749             4,237

          James D. Cavanaugh          2,029,749             4,237

<PAGE>


 Item 6.  Exhibits and Reports on Form 8-K

          (a)  Exhibits:

  Exhibit Number Description of Exhibit
  ------- -----------------------------
     3.1  Second Amended and Restated Certificate of
          Incorporation 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)  Previousl 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.
           None

<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: August 11, 2000              By: /s/  Paul I. Stevens
                                    ----------------------------------
                                    Paul I. Stevens
                                    Chief Executive Officer
                                    and Acting Chief Financial Officer