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

(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, 2001

                                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 small business issuer 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
                                 ------------
                         (Issuer's telephone number)

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

 Check whether  the issuer  (1) filed  all reports  required to  be filed  by
 Section 13 or 15(d) of the  Exchange Act during the  past 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:
 State the number of shares outstanding of each of the issuer's classes of
 common equity, as of the latest practicable date:

       Title of Each Class               Outstanding at August 8, 2001
 -------------------------------         -----------------------------
 Series A Stock, $0.10 Par Value                  7,466,474
 Series B Stock, $0.10 Par Value                  2,035,659


 Transitional Small Business Disclosure Format (check one):

                          Yes _____      No     XX


<PAGE>

                              TABLE OF CONTENTS
                              -----------------

 Part I.   FINANCIAL INFORMATION                                  PAGE NUMBER

   Item 1. Financial Statements

            Consolidated Condensed Balance Sheet                       3
            June 30, 2001 (unaudited)

            Consolidated Condensed Statements of Operations            4
            Three and Six months ended June 30, 2001 and 2000
            (unaudited)

            Consolidated Condensed Statement of                        5
            Stockholders' Equity December 31, 2000 and
            Six months ended June 30, 2001  (unaudited)

            Consolidated Condensed Statements of Cash Flows            6
            Six months ended June 30, 2001 and 2000
            (unaudited)

            Notes to Consolidated Condensed Financial                  7
            Statements (unaudited)

   Item 2. Management's Discussion and Analysis or                     9
           Plan of Operation


 Part II.  OTHER INFORMATION

   Item 1. Legal Proceedings                                           12
   Item 2  Submission of Matters to a Vote of Security Holders         13
   Item 3. Defaults Upon Senior Securities                             13
   Item 6. Exhibits and Reports on Form 8-K                            14


   CAUTIONARY  STATEMENT -  This Form  10-QSB  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, 2000.

<PAGE>
<TABLE>

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

                                                             June 30, 2001
                                                             -------------
                                                              (Unaudited)
  <S>                                                         <C>
                       ASSETS
  Current assets:
   Cash                                                       $     99
   Trade accounts receivable, less allowance for
     losses of $104                                                359
   Inventories  (Note 3).                                        3,632
   Other current assets                                            391
                Total current assets                             4,481
  Property, plant and equipment, net                             1,404
  Other assets, net                                                439
                                                               -------
                                                              $  6,324
                                                               =======
        LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
   Trade accounts payable                                     $  1,383
   Other current liabilities                                     2,590
   Income taxes payable                                            110
   Customer deposits                                               178
   Bank credit facility                                          3,258
   Current portion of long-term debt  (Note 4)                      20
                                                               -------
                Total current liabilities                        7,539

  10% convertible subordinated notes payable                     1,102
  Note payable - stockholder                                     6,709
  Other long-term debt                                              27
  Accrued pension costs                                            641
  Commitments and contingencies (Note 5)
  Stockholders' equity:
   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 shares issued and
    outstanding at June 30, 2001                                   746
   Series B common stock, $0.10 par value, 6,000,000
    shares authorized, 2,036,000 shares issued and
    outstanding at June 30, 2001                                   204
   Additional paid-in-capital                                   40,961
   Retained deficit                                            (51,605)
                                                               -------
                Total stockholders' deficit                     (9,694)
                                                               -------
                                                              $  6,324
                                                               =======

           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
                                       2001         2000       2001        2000
                                      ------       ------     ------      ------
 <S>                                 <C>          <C>        <C>         <C>
 Net sales                           $ 1,709      $ 1,220    $ 2,460     $ 2,041
 Cost of sales                         1,419        1,357      2,087       2,211
                                      ------       ------     ------      ------
 Gross profit (loss)                     290         (137)       373        (170)
 Selling, general and
   administrative expenses               337          850        801       1,703
                                      ------       ------     ------      ------
 Operating income (loss)                 (47)        (987)      (428)     (1,873)
 Other income (expense):
   Interest income                         -            6          -           6
   Interest expense                     (214)        (185)      (442)     (1,386)
   Other, net                            (49)         (74)      (100)       (128)
   Gain (loss) on sale of
     assets (Note 6)                       -         (273)         -        (273)
                                      ------       ------     ------      ------
                                        (263)        (526)      (542)     (1,781)
                                      ------       ------     ------      ------
 Income (loss) before income taxes      (310)      (1,513)      (970)     (3,654)
 Income tax (expense)  (Note 7)            -            -          -         ---
                                      ------       ------     ------      ------
 Net income (loss)                   $  (310)     $(1,513)   $  (970)    $(3,654)
                                      ======       ======     ======      ======

 Earnings (loss) per share - basic
  and diluted (Note 8):
   Net income (loss) - basic
     and diluted                    $  (0.03)     $ (0.16)   $ (0.10)    $ (0.38)
                                      ======       ======     ======      ======
 Weighted average number of shares
   of common stock outstanding
   during the periods - basic
   and diluted    Note 8               9,502        9,502      9,502       9,502
                                      ======       ======     ======      ======

           See notes to consolidated condensed financial statements.

</TABLE>
<PAGE>
<TABLE>

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


                                                               Additional
                             Series A Stock    Series B Stock   Paid-In
                             Shares  Amount    Shares  Amount   Capital   (Deficit)    Total
                             ------  ------    ------  ------   -------   --------    -------
 <S>                         <C>     <C>       <C>     <C>      <C>       <C>         <C>
 Balance, January 1, 2001     7,466  $  746     2,037  $  204   $40,961   $(50,635)   $(8,724)
 Net (loss)                       -       -         -       -         -       (970)      (970)
 Conversion of Series B
   stock to Series A stock        1       -        (1)      -         -          -          -
                             ------  ------    ------  ------   -------   --------    -------
 Balance, June 30, 2001       7,467  $  746     2,036  $  204   $40,961   $(51,605)   $(9,694)
                             ======  ======    ======  ======   =======   ========    =======

           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,
                                                           -------------------
                                                             2001        2000
                                                           -------     -------
 <S>                                                      <C>         <S>
 Cash flows from operations:
   Net (loss)                                             $   (970)   $ (3,654)

   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities:
       Depreciation and amortization                           120         195
       Interest imputed on 10% convertible notes               ---       1,000
       Other                                                     9         273
       Changes in operating assets and liabilities:
         Trade accounts receivable                              33         262
         Inventory                                             515       1,060
         Other assets                                          (31)       (160)
         Trade accounts payable                                 (8)       (746)
         Other liabilities                                   1,017        (485)
                                                           -------     -------
 Total cash (used in) operating activities                     685      (2,255)
                                                           -------     -------
 Cash flows from investing activities:
   Additions to property, plant and equipment                   (7)        (63)
     Decreases to property, plant and equipment                ---          97
                                                           -------     -------
 Total cash provided by (used in) investing  activities         (7)         34
                                                           -------     -------
 Cash flows from financing activities:
   Net proceeds from 10% convertible debt                       52         850
   Net proceeds from (repayments of) long-term debt           (895)      1,384
                                                           -------     -------
                                                              (843)      2,234
                                                           -------     -------
 Decrease in cash and temporary investments                   (165)         13
 Cash and temporary investments at beginning of period         264           6
 Cash and temporary investments at end of period          $     99    $     19
                                                           =======     =======
 Supplemental disclosure of cash flow information:
     Cash paid during the period for:
     Interest                                             $    135    $    116
     Income taxes                                         $      -           -


           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,  2001,  the
      consolidated condensed statement of stockholders' equity for the period
      ended June  30,  2001, and  the  consolidated condensed  statements  of
      operations for the three and six  months ended June 30, 2001 and  2000,
      and statements of cash flows for the six months ended June 30, 2001 and
      2000 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,  2001 and  the results  of operations  for the  three and  six
      months ended June  30, 2001 and  2000 and the  cash flows  for the  six
      months ended June 30, 2001 and 2000 have been made.

      The above financial  statements have been  prepared in accordance  with
      the instructions  to  Form 10-QSB  and  therefore do  not  include  all
      information included in the 2000 Form 10-K.  The results of  operations
      for the three  and six  months ended  June 30,  2001 and  2000 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
      produces 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:

                                           June 30, 2001
                                           -------------
                                            (Amounts in
                                             thousands)

        Finished product                      $   335
        Work in progress                            2
        Raw materials                           3,295
                                               ------
                                              $ 3,632
                                               ======


 4.   The bank credit facility due date was extended to August 31, 2001  with
      mandatory reductions  in borrowing  availability  of $35,000  per  week
      beginning July  2, 2001.   The  Company is  in the  process of  finding
      suitable replacement financing.  For a description of the status of the
      bank credit  facility at  June 30,  2001,  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.  In  September 2000  and
      March 2001, the  Notes were increased  a total of  $102,500 in lieu  of
      paying the interest for the first twelve months in cash.  The Notes are
      convertible into 2,200,000 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 2.2 million  shares
      of Series A  common stock.   Should all the  notes  be converted, these
      shareholders would own  approximately 19% 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 "Additional Paid in Capital" 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  2000
      Form 10-K.

 6.   A description of the Company's divestitures in 2001 and 2000 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 stockholder  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.

 7.   The Company's effective  tax rate  was 0%  in 2001  and 2000.   Due  to
      accumulated losses,  there were  no recoverable  income taxes  for  the
      three and six months ended June 30, 2001.

 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. Stock
      options for 560,000  shares of common  stock were not  included in  the
      computation of diluted EPS because their  effect would have been  anti-
      dilutive.

 9.   All revenues in the three and six  months ended June 30, 2001 and  2000
      were in  the  Company's  banknote inspection,  printing  and  packaging
      equipment business segment.
<PAGE>


 ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR
          PLAN OF OPERATIONS

 RECENT DEVELOPMENTS

    Stevens International, Inc.  is continuing to experience losses and  cash
 flow  difficulties.  We are 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,   we  entered  into  discussions  for  a   possible
 combination with Graphic Systems Services,  Inc., a privately held  printing
 equipment manufacturer  located in  Springboro, Ohio.    On April  16,  2001
 Graphics Systems Services  notified us  that merger  negotiations have  been
 terminated due to their inability to finance the transaction.

 Liquidity and Capital Resources

    Our operations require  capital primarily to fund ongoing operations,  to
 service existing debt and to pursue  our strategic objectives including  new
 product development and penetration of  international markets.  Our  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 new  equipment orders.  Net cash provided  by operating activities  was
 $0.7 million in 2001.  Net  cash provided by (used in) operating  activities
 (before working capital requirements) was $(0.8)  million in 2001.   Working
 capital provided cash of $1.5 million in 2001.

    On March 31, 2000, we completed 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.  In September 2000 and March, 2001, we elected  to
 increase the Note in lieu of paying the interest for the first twelve months
 in  cash.  The $1,102,500  Notes are  convertible into  2,200,000 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 prior to the close of business on their maturity date.  Issue  costs
 for the Notes aggregated approximately $151,000.

     Our capital  expenditures were $7,500 in  2001, and were used  primarily
 for computer modernization.

    Our bank credit  facility bears interest at 1.25% over prime and  matures
 August 31, 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, 2001 there  were $3.3 million in  direct borrowings and no  standby
 letters of  credit outstanding,  with no  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 has 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 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'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  $6.7
 million at June 30, 2001 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, 2002 and bear  interest at rates that  vary up to 2%  over
 bank prime.

    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.

    The 1999 filing  for distress termination of the plans began a series  of
 negotiations with  the PBGC  regarding funding  of the  pension benefits  of
 employees.  The  PBGC  determined that  the Company  will be  unable to  pay
 benefits when due and that the plans must be terminated in order to  protect
 the interests of the plan participants.   The PBGC became statutory  trustee
 at November 15, 1999, the effective  date  of the termination  of the plans.
 The PBGC,  on behalf  of  the Company's  pension  plan for  bargaining  unit
 employees, has filed liens  against all property and  rights to property  of
 the Company in  the aggregate amount  of $1.6  million.  The  assets of  the
 pension plans were also taken over  by the PBGC.  The  Company and the  PBGC
 are negotiating terms of a financial settlement for installment payments  to
 be made by the Company to the PBGC over  the next 7-8 years.  The  estimated
 present value of the anticipated payments  to the PBGC has been recorded  at
 June 30, 2001 in the amount of $0.63 million.

    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, 2001,  the  Company's Chairman and Chief Executive  Officer
 has loaned the Company $6.7 million  for its short-term  cash  requirements.
 As of August 8, 2001, 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.


 RESULTS OF OPERATIONS

 Comparison of Six Months Ended June 30, 2001 and 2000

 Sales  The Company's sales for the six months ended June  30, 2001 increased
 by $0.4 million (or  20.5%) compared to sales in the same period in 2000 due
 primarily to  a  $1  million 2001  contract  for  converting  one  automatic
 currency examination  ("ACE") machine  to inspect  the new  EURO  banknotes,
 offset by decreases in packaging systems products ($0.6 million).

 Gross Profit   The Company's gross profit for the six months ended June  30,
 2001 increased by $0.5  million compared to gross profit in the same  period
 in 2000.  The gross profit margin increased  to  15.2% of sales as  compared
 to a gross margin loss of (8.3%) in the comparable period in 2000 due to the
 impact of  the $1  million contract  discussed  in the  previous  paragraph,
 reduced depreciation expense  in 2001,  and partially  offset by  continuing
 high costs of idle plant and  underutilized personnel due to low  production
 volume in 2001 and 2000.

 Selling,  General  and  Administrative  Expenses    The  Company's  selling,
 general, and administrative expenses  decreased by $0.9 million  (or 53 %)
 for the six  months ended June 30, 2001 compared to the same period in  2000
 due to cost reduction efforts in connection with the reduced volume of sales
 and  certain  insurance  premium  refunds  in  2001.  Selling,  general  and
 administrative expenses for the six months ended June 30, 2001 were 32.6% of
 sales compared to  83.4% of sales  for the same  period in 2000  due to  the
 increase in  sales  in 2001  and  the reduced  level  of expense  from  cost
 reductions.

 Other Income (Expense)    The Company's interest  expense decreased by  $0.9
 million for the six months ended June  30, 2001 compared to the same  period
 in 2000 due to the $1.0 million in imputed interest recorded in 2000 on  the
 issuance of the 10% convertible subordinated  notes due March 31, 2003  (see
 Note  4).  Interest income was negligible for the six months ended June  30,
 2001 and 2000.  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, 2001 and 2000

 Sales   The  Company's  sales for  the  three  months ended  June  30,  2001
 increased by $0.5 million  (or  40%) compared to sales in the same period in
 2000 due  primarily to  a $1  million 2001  contract for  converting an  ACE
 machine to inspect the new EURO  banknote, offset by decreases in  packaging
 systems products.

 Gross Profit  The Company's gross profit for the three months ended June 30,
 2001 increased by $427  thousand compared to gross profit in the same period
 in 2000 due primarily to the impact of the $1 million contract discussed  in
 the  previous  paragraph,  and from reduced  depreciation expenses  in 2001.
 Gross profit margin  for 2001 increased  to 17% of  sales as  compared to  a
 gross margin loss of (11.2%) in 2000.  This increase in gross profit  margin
 in 2001 was due primarily to the ACE conversion job previously discussed and
 reduced depreciation expense in 2001.

 Selling,  General  and  Administrative  Expenses    The  Company's  selling,
 general, and administrative expenses decreased by $0.5 million (or 60%)  for
 the three months ended June 30, 2001 compared to the same period in 2000 due
 to continuing cost reduction efforts  and certain insurance premium  refunds
 in 2001.  Selling, general and administrative expenses for the three  months
 ended June 30, 2001 were 19.7 % of sales compared to  69.7% of sales for the
 same period in 2000 due to cost reduction efforts.

 Other Income (Expense)   The Company's net interest expense increased by $26
 thousand for  the three  months ended  June 30,  2001 compared  to the  same
 period in 2000 due to the increased borrowing costs in 2001.

 Tax Matters    The  Company's effective state  and federal  income tax  rate
 ("effective tax rate") was 0% for 2001 and  2000.   Due to continuing losses
 in 2001, there were no recoverable tax benefits for the three and six months
 ended June 30, 2001.

 Backlog and Orders   The Company's  backlog of unfilled  orders at June  30,
 2001 was approximately $0.9 million compared to $1.7 million at December 31,
 2000.  The backlog of repair and refurbished equipment jobs at June 30, 2001
 decreased $0.8 million as compared to year-end 2000.  The backlog at June 30
 in each of the preceding five years has ranged from a low of $1.4 million in
 2000 to a high of $13.8 million in 1997.

 Orders for the six months ended June 30, 2001 were $1.7 million compared  to
 $1.9 million for the comparable period  in 2000, a decrease of $0.2  million
 while shipments increased $419  thousand.  The decreased  order flow is  the
 result of only one  major printing and packaging  system order in the  first
 six months of 2001.

 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.


 PART II  OTHER INFORMATION

 Item 1.  Legal Proceedings

 On April 9,  2001, a  Waukesha, Wisconsin  County Circuit  Court, awarded  a
 $1.25 million  order  for  judgment  against  the  Company  and  its  former
 subsidiary, Zerand  Corporation,  related  to  a  dispute  over  an  alleged
 commission due to a European agent on  a 1989 project for the former  Soviet
 Union.  The $1.25 million is included in "other current liabilities" at June
 30, 2001.  There would  be no  assets available to collect on this  judgment
 due to prior lien holder claims,  including our senior bank lender, Paul  I.
 Stevens, the Pension Benefit Guaranty  Corporation and the Internal  Revenue
 Service.   Although  there  can  be  no  certainty  as  to  the  outcome  of
 negotiations, we are  attempting to  settle this  judgment on  a basis  more
 favorable to the Company.

 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 2001 Annual Meeting of Stockholders (the "Meeting")  on
 June 7, 2001  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 ensuing year:


         Series A Nominees       Votes For   Votes Against
         -----------------       ---------   -------------
         James D. Cavanaugh      6,914,159       9,804

         Edgar H. Schollmaier    6,914,159       9,804



         Series B Nominees
         -----------------
         Paul I. Stevens         1,968,808         362

         Richard I. Stevens      1,968,808         362

         Constance I. Stevens    1,968,808         362



 Item 3.  Defaults Upon Senior Securities

 The Company  continues  to experience  weakness  in sales  and  losses  from
 operations due  to  a  declining  market  for  the  Company's  products  and
 competitive pressures.  As  a result, violations  of certain bank  financial
 covenants are continuing,  including failure to  make required pension  plan
 payments in 1999 and 2000, maintaining  of required working capital and  net
 worth covenants, and  the allowing of  certain court-ordered judgments  (see
 Item 1 above).

 The  Company's  senior lender has 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, 2001.


 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.(5)
   11.1    Computation of Net Income per Common Share.(*)


   *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,  1999 and  incorporated herein  by
     reference.


 (b)  Reports on Form 8-K.
       None.

<PAGE>
                                    SIGNATURES

    In accordance with the requirements of the Exchange Act , the  registrant
    has  duly  caused  this  report  to  be  signed  on  its  behalf  by  the
    undersigned, thereunto duly authorized.

                                    STEVENS INTERNATIONAL, INC.




    Date: August 10, 2001           By:  /s/  Paul I. Stevens
                                    -------------------------
                                    Paul I. Stevens
                                    Chief Executive Officer
                                    and Acting Chief Financial Officer