SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

                                   FORM 10-QSB

(Mark One)

[x]  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934

         For  the quarterly period ended  November 30, 1999
                                                        OR

[   ]  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

         For  the transition period from _______ to _______

                       Commission file number: 0-24318

                              DIEHL GRAPHSOFT, INC

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             (Exact name of registrant as specified in its charter)

        Maryland                                       52-1407016

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(State or other jurisdiction of            (I.R.S. employer identification no.)
incorporation or organization)

10270 Old Columbia Road, Columbia, Maryland                      21046
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(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code: 410-290-5114

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

     Check whether the  registrant(1) has filed all reports required to be filed
by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the

preceding 12 months (or for such shorter period that the registrant was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days. Yes x No _____

                      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.

3,056,703 shares of common stock.

Transitional Small Business Disclosure Format (check one)   Yes ____ No __x__


                                        1
<PAGE>



                              DIEHL GRAPHSOFT, INC.

                                   FORM 10-QSB

                                      INDEX

Number                                                                 Page

PART I      FINANCIAL INFORMATION

Item 1      Financial Statements:
            Balance Sheet (unaudited) as of

            November 30, 1999                                           3

            Statements  of  Operations  (unaudited)  for the three  months ended
            November 30, 1999 and 1998 and  (unaudited) for the six months ended
            November 30, 1999 and 1998 4

            Statements of Cash Flows (unaudited) for the six months
            ended November 30, 1999 and 1998                            5

            Statements of Stockholders' Equity (unaudited) as
            of November 30, 1999 and 1998                               6

            Notes to Financial Statements                               7

            Management's Discussion and Analysis of Financial
            Condition and Results of Operations                         8

PART II     OTHER INFORMATION

Item 4      Submission of Matters to a Vote of Security Holders        13

Item 6      Exhibits and Reports                                       13

            SIGNATURES                                                 14

                                        2

<PAGE>



                            BALANCE SHEET (Unaudited)

                                November 30, 1999

                                     ASSETS

Current assets:

    Cash                                                       $ 1,307,190
    Marketable securities                                        8,390,456
    Accounts receivable                                            352,832
    Inventory                                                       96,654
    Other current assets                                           282,186
        Total current assets                                    10,429,318

Fixed assets:

    Equipment                                                      938,881
    Furnishings and fixtures                                       131,358
    Leasehold improvements                                          47,688
                                                                 1,117,927

    Accumulated depreciation                                       775,441
        Net fixed assets                                           342,486

Other assets:

    Software development and licensing costs, net

       of accumulated amortization of $1,504,773                 1,228,413
    Other                                                           20,406
        Total other assets                                       1,248,819

                  Total assets                                 $12,020,623

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

    Accounts payable and accrued expenses                      $   790,206
    Income taxes payable                                            42,861
        Total current liabilities                                  833,067

Long term liabilities:

    Deferred income taxes                                          442,239
        Total liabilities                                        1,275,306

Stockholders' equity:

    Common stock - $.01 par value; 10,000,000 shares

      authorized, 3,056,703 shares issued and outstanding           30,567
    Additional paid in capital                                   3,899,599
    Retained earnings                                            6,815,151

        Total stockholders' equity                              10,745,317

                Total liabilities and stockholders' equity     $12,020,623

                 See accompanying notes to financial statements
                                        3

<PAGE>

                              DIEHL GRAPHSOFT, INC.

                             STATEMENT OF OPERATIONS

                                   (Unaudited)

                           For the three month period   For the six month period
                                  ended November 30,       ended November 30,

                                 1999           1998          1999          1998

Revenues                   $1,767,705     $1,187,495    $4,447,253    $3,061,075

Cost of revenues              533,056        451,117     1,197,489       942,048

Gross profit                1,234,649        736,378     3,249,764     2,119,027

Operating expenses:

  General & administrative    499,766        434,986     1,024,722       868,250
  Selling & marketing         624,940        495,636     1,245,144       974,435
  Research & development      117,575         96,630       264,702       221,382
   Total operating expenses 1,242,281      1,027,252     2,534,568     2,064,067

Income (loss) from

  operations                   (7,632)      (290,874)      715,196        54,960

Other income and expenses:

  Interest income             123,979        111,020       247,747       218,704
  Other                          -              -           (5,123)         -
    Total other income        123,979        111,020       242,624       218,704

Income (loss) before

  income taxes                116,347       (179,854)      957,820       273,664

Provision (credit) for

  income taxes                 30,000        (73,000)      303,000        61,000

Net income (loss)          $   86,347     $ (106,854)   $  654,820    $  212,664

Net income (loss) per

  Share - basic and

  fully dituled            $      .03     $     (.03)   $      .21    $      .07

Weighted average number
of shares outstanding -

basic                       3,054,976      3,113,270     3,057,411     3,130,454

Weighted average number
of shares outstanding -

fully diluted               3,076,623      3,113,270     3,069,655     3,130,454

                 See accompanying notes to financial statements

                                        4
<PAGE>

                              DIEHL GRAPHSOFT, INC.

                             STATEMENT OF CASH FLOWS

                                   (Unaudited)
                                                       For the six months
                                                        ended November 30,
                                                         1999          1998

Cash flows from operating activities:

    Net income                                         $ 654,820     $ 212,664
    Adjustments to reconcile net income to net
    Cash provided by operating activities:

       Deferred income taxes                              39,483        30,692
       Amortization of bond premiums and discounts       (73,906)      (35,887)
       Other amortization                                538,976       435,909
          Depreciation and amortization                   79,988        75,495
       Other                                               5,123           -
          Changes in operating assets and liabilities:

         Accounts receivable                              17,914       141,941
         Inventory                                        26,947       (89,210)
         Other assets                                     28,654      (180,750)
         Accounts payable and accrued expenses            93,558       115,114
         Income taxes receivable/payable                  95,835      (276,092)
            Net cash provided by operating activities: 1,507,392       429,876

Cash flows from investing activities:

    Purchases of marketable securities                      -       (2,995,538)
    Maturities of marketable securities                  352,245     2,964,000
    Capitalized software costs                          (663,597)     (515,003)
    Purchase of fixed assets                             (69,462)      (94,262)
            Net cash used in investing activities       (380,814)     (640,803)

Cash flows from financing activities:

    Redemption of common stock                           (64,838)     (158,163)
            Net used in financing activities             (64,838)     (158,163)

Net change in cash                                     1,061,740      (369,090)

Cash balance beginning of period                         245,450       376,754

Cash balance end of period                            $1,307,190   $     7,664

Supplemental disclosure of cash flow information:

    Cash paid for income taxes                        $  167,682   $   306,400

    Issuance of common stock                          $    9,097   $      -
    Reduction in accrued expenses                          9,097          -
                                                      $    -       $      -

                 See accompanying notes to financial statements
                                        5
<PAGE>


                              DIEHL GRAPHSOFT, INC.

                        STATEMENT OF STOCKHOLDER' EQUITY

                                   (Unaudited)

                                            Additional
                         Common     Common     Paid in      Retained
                         shares      stock     Capital      Earnings       Total

Balance

    May 31, 1998      3,147,637  $ 31,476  $ 4,182,812  $ 5,082,509  $ 9,296,797

Redemption of

    Common stock       (55,900)     (559)    (157,604)       -         (158,163)

Net Income                 -          -            -        212,664      212,664

Balance

    November 30, 1998 3,091,737  $ 30,917  $ 4,025,208  $ 5,295,173  $ 9,351,298

Balance

    May 31, 1999      3,071,312  $ 30,713  $ 3,955,194  $ 6,160,331  $10,146,238

Issuance of

    Common stock          2,591        26        9,071        -            9,097

Redemption of

    Common stock       (17,200)     (172)     (64,666)       -          (64,838)

Net Income                 -          -           -         654,820      654,820

Balance

    November 30, 1999 3,056,703  $ 30,567  $ 3,899,599  $ 6,815,151  $10,745,317














                 See accompanying notes to financial statements

                                        6
<PAGE>

                              DIEHL GRAPHSOFT, INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE A - BASIS OF PRESENTATION

      The  accompanying  unaudited  financial  statements  have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with  the  instructions  to  Form  10-QSB  and  Article  10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  In the opinion of management,  all necessary adjustments
(consisting of normal recurring accruals) considered necessary for a fair

presentation  have been included.  Operating results for the three and six month
period ended  November 30, 1999 are not  necessarily  indicative  of the results
that may be expected for the year ended May 31, 2000.

NOTE B - Lease Commitment

     The  Company  entered  into an  agreement  for lease of space in  Columbia,
Maryland which provides for minimum  monthly  payments of $30,501 plus allocable
common area maintenance expenses from August 2000 through July 2010.

NOTE C - WEIGHTED AVERAGE SHARES OUTSTANDING

     Weighted  average  number of  shares  outstanding  during  the  periods  is
computed as follows:

                                    For the three months     For the six months
                                     ended November 30,      ended November 30,
                                     1999         1998         1999        1998

Average outstanding shares       3,054,976    3,113,270    3,057,411   3,130,454

Dilutive effect of stock

  options and warrants              21,647         -          12,244       -
Weighted average number of
  shares outstanding             3,076,623    3,113,270    3,069,655   3,130,454











                                        7
<PAGE>

                              DIEHL GRAPHSOFT, INC.

                       MANAGEMENT'S DISCUSSION & ANALYSIS

                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     In connection  with the Private  Securities  Litigation  Reform Act of 1995
(the  "Litigation  Reform  Act"),  the  Company  is  hereby  disclosing  certain
cautionary   information  to  be  used  in  connection  with  written  materials
(including this Report on Form 10-QSB) and oral statements made by or on behalf
of  its  employees  and  representatives   that  may  contain  "forward  looking
statements"  within the meaning of the  Litigation  Reform Act. Such  statements
consist of any statement  other than a recitation of historical  fact and can be
identified by the use of forward looking  terminology  such as "may,"  "expect,"
"anticipate,"  "estimate"  or  "continue"  or  the  negative  thereof  or  other
variations  thereon  or  comparable  terminology.  The  listener  or  reader  is
cautioned that all forward looking  statements are  necessarily  speculative and
there are numerous  risks and  uncertainties  that could cause actual  events or
results to differ materially from those referred to in such forward looking
statements.  Included  in  such  risks  are (1) the  acceptance  of new  product
introductions,  (2) quality of  engineering  in new software,  (3) lost goodwill
associated  with  change in  product  name of the  Company's  principal  product
MiniCAD to  VectorWorks,  (4) delays  pertaining to planned  introduction of new
products,  (5) lack of diversified  product portfolio,  (6) effect of competitor
inroads into the Company's markets,  (7) limited barriers to entry, (8) reliance
on international  markets and foreign currency  fluctuations,  (9) dependence on
distributor channels,  (10) fluctuations in quarterly operations associated with
the age of Company  products  in their life cycles and the timing of orders from
distributors, (11) intellectual property infringements,  and (12) attraction and
retention  of  quality  employees,  and others as reported in the Company's
Annual Report Form 10KSB for the fiscal year ended May 31, 1999, elsewhere in
the report and in other reports, documents and statements filed by the Company.
The  reader or  listener  is cautioned  that the  Company  does not have a
policy  of  updating  or  revising forward looking  statements and thus he or
she should not assume that silence by management  over time means that actual
events are bearing out as  estimated in such forward looking statements.

     Results of Operations  for the three and six months ended November 30, 1999
as compared to the three and six months ended November 30, 1998.

REVENUES

     Revenues for the three months ended November  30,1999 rose to $1,767,705 as
compared to $1,187,495 for the three months ended November 30, 1998 representing
a increase of 48.9%.  Revenues for the six month period ended  November 30, 1999
rose to $4,447,253  from  $3,061,075 for the six month period ended November 30,
1998  representing  an increase  of 45.3%.  Revenues  include  sales to existing
customers, or upgrade revenues, and sales to new customers.

     Revenues from the Windows  version of VectorWorks  rose to $715,857 for the
three  months ended  November 30, 1999 from  $497,088 for the three months ended
November 30, 1998.  Revenues  from the Windows  version of  VectorWorks  rose to
$1,522,869 for the six months ended November 30, 1999 $1,151,656 for

                                        8

<PAGE>


earlier  versions of  VectorWorks  for  Windows,  included in revenues  from the
Windows  version  above rose to $87,840 for the three months ended  November 30,
1999 from  $77,629 for the three months  ended  November  30,  1998.  These
upgrade  revenues from the Windows  version of VectorWorks  rose to $221,059 for
the six months ended November 30, 1999 from $183,692 for the six months
ended  November 30,  1998.  New customer  revenues  from the Windows  version of
VectorWorks  rose to $628,017 for the three months ended Novembeer 30, 1999 from
$419,459 for the three months ended  November 30, 1998.  These same new customer
revenues from the Windows version of VectorWorks  rose to $1,301,810 for the six
months ended November 30, 1999 from $967,964 for the three months ended November
30, 1998.  Increases in sales of the Windows  version of  VectorWorks  were most
notable in foreign  markets  and  reflect  the  acceptance  of the  product  and
increased recognition in the industry.

     Revenues from the Macintosh version of VectorWorks rose to $801,358 for the
three  months ended  November 30, 1999 from  $637,253 for the three months ended
November 30, 1998.  Revenues from the Macintosh  version of VectorWorks  rose to
2,299,697  for the six months ended  November 30, 1999 as compared to $1,806,437
for the six months ended November 30, 1998.  Upgrade revenues from conversion of
earlier versions of VectorWorks for the Macintosh rose to $123,540 for the three
months ended November 30, 1999 as compared to $68,318 for the three months ended
November  30, 1998.  These upgrade revenues from conversion of earlier version
of VectorWorks for the Macintosh declined to $301,722 for the six months ended
November 30, 1999 from  $308,822  for the six months  ended  November 30,
1998. New customer  revenues from the Macintosh  version of VectorWorks  rose to
$677,818 for the three  months  ended  November 30, 1999 from$568,935 for the
three months ended November 30, 1998.  These new customer  revenues from the
Macintosh  version of VectorWorks rose to $1,997,975 for the six months ended
November 30, 1999 from $1,497,615 for the six months  ended November 30, 1998.
Sales for the  Macintosh  version have shown growth principally in foreign
markets where VectorWorks was introduced at the beginning of this fiscal year.

     Revenues from RenderWorks, a VectorWorks plug-in introduced in January 1999
were $196,297 for the three months ended  November 30, 1999 and $498,523 for the
six months ended November 30, 1999.

     Foreign  sales rose to $1,070,229  for the three months ended  November 30,
1999 from $636,907 for the three months ended  November 30, 1998.  Foreign sales
represented  60.5% and  53.6% of total  sales  during  the  three  months  ended
November 30, 1999 and 1998  respectively.  Foreign sales rose to $2,951,282  for
the six months ended November 30, 1999 from  $1,886,508 for the six months ended
November  30, 1998.  Foreign  sales  represented  66.4% and 61.6% of total sales
during the six months  ended  November 30, 1999 and 1998  respectively.  Foreign
sales to Japan,  included with total foreign sales above were 22.5% and 13.9% of
total sales for the three months ended November 30, 1999 and 1998  respectively.
Foreign  sales to Japan  included  with total foreign sales above were 28.9% and
30.6% of  total  sales  for the six  months  ended  November  30,  1999 and 1998
respectively.   Foreign  sales  to  the  European   countries   represented  the
substantial remainder of foreign sales during the periods.

                                        9
<PAGE>



     The cost of revenues for the three  months ended  November 30, 1999 rose to
$533,056 from $451,117 for the three months ended November 30, 1998 representing
an increase of 18.2%. The cost of revenues for the six months ended November 30,
1999 rose to $1,197,489 from $942,048 for the six months ended November 30, 1998
representing  an increase of 27.1%.  The gross profit  percentages for the three
months ended November 30, 1999 and 1998 were 69.8% and 62.0%  respectively.  The
gross profit  percentages  for the six months  ended  November 30, 1999 and 1998
were  73.1%  and  69.2%   respectively.   Software   licensing  and  development
amortization  expenses  included in cost of  revenues,  which is not  directly a
function of revenue,  rose to $271,830 for the three  months ended  November 30,
1999 from  $223,432  for the three months  ended  November  30,  1998.  Software
licensing  and  development  amortization  expense  and  related  payroll  costs
included in costs of revenues rose to $641,637 for the six months ended November
30, 1999 from $468,647 for the six months ended  November 30, 1998. The increase
in  amortization  expenses  is  attributable  to  the  Company's  commitment  to
development  of new  engineering  technology.  Profit  margins  rose even giving
effect to the increases in software  licensing and  development  and reflect the
increase in  international  sales which transfer  substantial  cost to the local
foreign   distributors  where  products  are  translated  to  native  languages.
Consequently,  other salary  expenses and materials  charged to cost of revenues
did not rise  proportionally  to the  increase  in  revenue in the three and six
month periods ended  November 30, 1999 as compared with the three and six months
periods ended November 30, 1998. These salaries  included  technical  support to
customers and documentation of product manuals and other publications.

OPERATING EXPENSES

     General and administrative expenses rose to $499,766 for the three

months ended November 30, 1999 from $434,986 for the three months ended November
30, 1998 representing an increase of 14.9%. General and administrative  expenses
rose to $1,024,722 in the six month period ended November 30, 1999 from $868,250
for the six months ended  November 30, 1998.  Salary  expense and overall fringe
benefit expenses rose to 238,981 during the three months ended November 30, 1999
from  $205,993  during the three  months ended  November  30,  1998.  Salary and
overall  fringe  benefit  expenses rose to $521,135  during the six months ended
November 30, from  $423,242 for the six months  ended  November 30, 1998.  These
increases reflect the Company's commitment to other areas of operations.

     Research and development expenses rose to $117,575 for the three months
ended  November 30, 1999 from $96,630 for the three months ended November
30, 1998 representing an increase of 21.7%.  Research and development  expenses
rose to $264,702  for the six months ended  November 30, 1999 from  $221,382 for
the six months

                                       10
<PAGE>


ended  November  30, 1998  representing  and  increase of 19.6%.  This  increase
reflects  the  increased  commitment  by the Company to develop new  engineering
technology.

     Selling and marketing  expenses rose to $624,940 for the three months ended
November 30, 1999 from  $495,636  for the three  months ended  November 30, 1998
representing an increase of 26.1%. Selling and marketing expenses rose to
$1,245,144  for the six months ended November 30, 1999 from $974,435 for the six
months  ended  November  30, 1998  representing  an  increase  of 27.8%.  Salary
expenses and related  contract fees  substantially  contributed  to the increase
rising to $245,673 for the three months  ended  November 30, 1999 from  $133,341
for the three  months  ended  November  30,  1998.  Salary  expenses and related
contract  fees also rose to $544,711 for the six months ended  November 30, 1999
from  $254,850  for the six  months  ended  November  30,  1998.  This  increase
principally reflects the Company's commitment to market research of new products
and new product  features.  These  increases  were partly  offset by declines in
trade show expenses in the three and six month  periods ended  November 30, 1999
as compared with the three and six month periods ended November 30, 1998.  These
declines reflect a streamlining of these costs and the shows that are attended.

OTHER INCOME AND EXPENSES

     Other  income and  expenses  rose to $123,979  for the three  months  ended
November 30, 1999 from $111,020 for the three  months ended  November 30, 1998
representing  and increase of 11.7%.  Other income and expenses rose to $242,624
for the six months ended November 30, 1999 from $218,704 for the six months
ended November 30, 1998  representing  an increase of 10.9%.  Interest  income
rose to $123,979  for the three months  ended  November  30, 1999 from  $111,020
for the three months ended November 30, 1998.  Interest  income rose to $247,747
for the six months  ended  November  30,  1999 from  $218,704  for the six
months  ended November 30, 1998. This increase reflects a larger investment base
and a partial shift in the investment portfolio from tax exempt municipal
obligations to other corporate and U.S. government  obligations during the three
and six months ended November 30, 1999 when compared with the three and six
months ended November 30, 1998. These corporate and U.S. government  obligations
generally carry slightly higher yields than tax exempt municipal obligations.

INCOME TAXES

     The  provision  for income  taxes was  $30,000 for the three  months  ended
November  30, 1999 as compared to a credit of $73,000 for the three months ended
November  30,  1998.  The  provision  for income  taxes was $303,000 for the six
months  ended  November 30, 1999 as compared to $61,000 for the six months ended
November 30, 1998.  The effective tax rates were 25.8% and (40.6%) for the three
months ended November 30, 1999 and 1998,  respectively.  The effective tax rates
were  31.6% and 22.2%  for the six  months  ended  November  30,  1999 and 1998,
respectively.  The  effective  tax rate for the three months ended  November 30,
1998 reflects a loss before the credit for

                                       11
<PAGE>

income taxes during the period.  The effective tax rates were otherwise lower in
the three and six month  periods  ended  November 30, 1998 when  compared to the
three and six month periods ended  November 30, 1999 because of the tax benefits
of a charitable  donation of an earlier  version of VectorWorks  and the greater
portion of total income being derived from tax exempt  investment  income during
the periods.

NET INCOME

     The Company  reported a net income of $86,347 or $.03 per share  (basic and
fully diluted) for the three months ended November 30, 1999 as compared to a net
loss of  $106,854  or $.03 per share  (basic  and fully  diluted)  for the three
months ended November 30, 1998.  The Company  reported net income of $654,820 or
$.21 per share (basic and fully  diluted) for the six months ended  November 30,
1998 and $212,664 or $.07 per share (basic and fully diluted) for the six months
ended November 30, 1998 representing an increase of 208%.

LIQUIDITY AND CAPITAL RESOURCES

     The Company  increased  its  working  capital by  $1,239,182  or 14.8% from
$8,357,069  at November 30, 1998 to  $9,596,251  at November  30, 1999.  Working
capital also rose from  $9,071,332 at May 31, 1999  representing  an increase of
$524,919.  The increase from November 30, 1998 to November 30, 1999 is primarily
due to cash flows from operations during the period.  These cash flows have been
in part  invested in equipment and software development.  During the six months
ended November 30, 1999, the Company also used these cash flows to repurchase
and retire 17,200 shares of common stock at an average price of $3.77 per share.
The Company  continues to maintain its excess cash in marketable  securities
having maturities of generally  seven years or less.  At November 30, 1999,
marketable securities  consisted of 30% corporate bonds, 32% municipal
obligations and 38% U.S.  Government  obligations.  At November 30, 1999,  the
Company held cash and marketable securities of $3.17 per share.

     The Company's  future capital  requirements  will depend upon many factors,
including the extent,  timing and progress of the Company's  development  of new
software.  The Company  anticipates  that its  existing  capital  resources  and
earnings from operations will be adequate to satisfy its capital requirements
for the next twelve  months.  The Company will continue to have working  capital
needs that will be  affected  by the  progress  of the  Company's  research  and
development  activities and capital  expenditures.  However, the Company expects
that its  current  working  capital  along with the cash  generated  from future
operations will satisfy its operating cash needs for the foreseeable future.

                                       12
<PAGE>

PART II

                                OTHER INFORMATION

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

                  The Company held its annual meeting on November 9, 1999

                                            Against/     Absten-        Broker
                                     For    Withheld     tions         Non-votes

                  Election
                  Of Directors

                  Joseph Schmelzle    Continuing in Office
                  Richard Hug         Continuing in Office
                  Frederick Unger     2,122,824    -            -        932,788
                  Richard Diehl       2,122,324    500          -        932,788

                  Ratification of
                  Appointment of
                  Independent
                  Auditors            2,122,824    -            -        932,788

Item 6.           Exhibits and Reports
                  Exhibit 27 - Financial Data Schedule

                  The  Company has filed no reports on Form 8-K during the three
                  months ended November 30, 1999.

                                       13
<PAGE>

                                   SIGNATURES

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

                                        DIEHL GRAPHSOFT, INC.

DATE: January 14, 2000                  By:/s/Richard Diehl
                                        Richard Diehl, President
                                        Chief Executive Officer


DATE: January 14, 2000                  /s/ Joseph Schmelzle
                                        Joseph Schmelzle, Treasurer

                     Chief Financial and Accounting Officer

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