UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                             ----------------------

                                   FORM 10-QSB


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

         For the quarterly period ended      June 30, 2002
                                        ------------------------

[ ]      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: 0-18450

              ----------------------------------------------------

                               COLOR IMAGING, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

            DELAWARE                                 13-3453420
  ------------------------------        ----------------------------------
 (State or other jurisdiction of       (I.R.S. Employer Identification No.)
  incorporation or organization)

4350 PEACHTREE INDUSTRIAL BOULEVARD, SUITE 100
NORCROSS, GEORGIA                                         30071
-----------------------------------------------         --------
(Address of principal executive offices)               (Zip code)


                        (770) 840-1090 FAX (770) 242-3494
                        ---------------------------------
              (Registrant's telephone number, including area code)


As of July 30, 2002, there were 10,099,880 shares of Common Stock outstanding.




<PAGE>


                               COLOR IMAGING, INC.
                         QUARTERLY REPORT ON FORM 10-QSB
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002

                                      INDEX



PART I:   FINANCIAL INFORMATION

Item 1.   Financial Statements

          Consolidated Condensed Balance Sheets at June 30, 2002
          (Unaudited) and December 31, 2001(Audited)...........................3

          Consolidated Condensed Statements of Operations (Unaudited)
          for the Three and Six Months ended June 30, 2002 and 2001............4

          Consolidated Condensed Statements of Cash Flows (Unaudited)
          for the Six Months ended June 30, 2002 and 2001......................5

          Notes to Interim Unaudited Consolidated Condensed Financial
          Statements ..........................................................6

Item 2.   Management's Discussion and Analysis or Plan of Operation ...........8

PART II:  OTHER INFORMATION

Item 1.   Legal Proceedings ..................................................22

Item 2.   Changes in Securities...............................................22

Item 3.   Defaults Upon Senior Securities.....................................22

Item 4.   Submission of Matters to a Vote of Security Holders.................22

Item 5.   Other information ..................................................22

Item 6.   Exhibits and Reports on Form 8-K....................................22

Signatures....................................................................25


                                       2
<PAGE>


PART I: FINANCIAL INFORMATION
ITEM 1 -FINANCIAL STATEMENTS


                       COLOR IMAGING, INC. AND SUBSIDIARY
                      CONSOLIDATED CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
<S>                                                            <C>               <C>
                         ASSETS
                                                                  30-June-02       31-Dec-01
                                                                 (Unaudited)       (Audited)
                                                                ------------     ------------
CURRENT ASSETS
    Cash                                                        $    211,016     $    395,327
    Accounts receivable, net                                       4,153,469        3,030,995
    Inventory                                                      4,876,828        6,056,042
    Deferred income taxes                                            198,238          277,239
    Related party portion of IDR bond                                 79,596           79,596
    Other current assets                                             273,931          339,141
                                                                ------------     ------------
          TOTAL CURRENT ASSETS                                     9,793,078       10,178,340
                                                                ------------     ------------

PROPERTY, PLANT AND EQUIPMENT - NET                                8,519,378        8,438,826
                                                                ------------     ------------
OTHER ASSETS
    Patent/intellectual property                                      10,023            5,000
    Deferred income taxes                                            319,000          312,000
    Related party portion of IDR bond                                818,500          818,500
    Other assets                                                     286,774          225,204
                                                                ------------     ------------
          TOTAL OTHER ASSETS                                       1,434,297        1,360,704
                                                                ------------     ------------
                                                                $ 19,746,753     $ 19,977,870
                                                                ============     ============
          LIABILITIES & STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Revolving credit lines                                      $  1,272,082     $  1,462,416
    Accounts payable                                               4,291,165        4,898,665
    Current portion of notes payable                                 387,196          369,198
    Current portion of bonds payable                                 335,000          335,000
    Note payable - related party                                     500,000               --
    Other current liabilities                                        505,954          501,086
                                                                ------------     ------------
           TOTAL CURRENT LIABILITIES                               7,291,397        7,566,365
                                                                ------------     ------------
LONG TERM LIABILITIES
    Notes payable                                                  1,173,258        1,359,000
    Bonds payable                                                  3,445,000        3,445,000
                                                                ------------     ------------
          LONG TERM LIABILITIES                                    4,618,258        4,804,000
                                                                ------------     ------------
           TOTAL LIABILITIES                                      11,909,655       12,370,365
                                                                ------------     ------------
COMMITMENTS & CONTINGENCIES

STOCKHOLDERS' EQUITY
   Common stock, $.01 par value, authorized 20,000,000
     shares; 10,099,880 and 10,099,175 shares issued and
     outstanding on June 30, 2002 and
     December 31, 2001, respectively                                 100,999          100,992
   Additional paid-in capital                                      9,868,283        9,873,939
   Stock subscription receivable                                          --         (149,000)
   Accumulated deficit                                            (2,132,184)      (2,218,426)
                                                                ------------     ------------
          TOTAL STOCKHOLDERS' EQUITY                               7,837,098        7,607,505
                                                                ------------     ------------
                                                                $ 19,746,753     $ 19,977,870
                                                                ============     ============
</TABLE>

                             See accompanying notes



                                       3
<PAGE>
<TABLE>
<CAPTION>
<S>                                    <C>             <C>               <C>            <C>

                                COLOR IMAGING, INC. AND SUBSIDIARY
                          CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                            (UNAUDITED)

                                       THREE MONTH PERIODS ENDED         SIX MONTH PERIODS ENDED

                                         30-June-02     30-June-01        30-June-02      30-June-01
                                        ------------   ------------      ------------   -------------

SALES                                   $ 8,129,042    $ 8,098,154       $15,988,120     $13,626,470

C0ST OF SALES                             7,022,722      7,068,627        13,612,015      11,582,952
                                        ------------   ------------      ------------   -------------
GROSS PROFIT                              1,106,320      1,029,527         2,376,105       2,043,518
                                        ------------   ------------      ------------   -------------

OPERATING EXPENSES

    Administrative                          446,724        387,776           907,690         843,957

    Research & development                  290,884        184,931           553,248         401,840

    Sales & marketing                       336,029        281,712           612,444         507,393
                                        ------------   ------------      ------------   -------------
                                          1,073,637        854,419         2,073,382       1,753,190
                                        ------------   ------------      ------------   -------------

INCOME FROM OPERATIONS                       32,683        175,108           302,723         290,328
                                        ------------   ------------      ------------   -------------

OTHER INCOME  (EXPENSE)

    Other income                             22,328          3,304            29,196          10,986

    Financing expenses                      (91,008)      (113,360)         (171,671)       (233,934)

    Non-recurring moving expense                 --             --                 -          (9,570)
                                        ------------   ------------      ------------   -------------
                                            (68,680)      (110,056)         (142,475)       (232,518)
                                        ------------   ------------      ------------   -------------


INCOME (LOSS) BEFORE TAXES                  (35,997)        65,052           160,248          57,810


PROVISION (CREDIT) FOR INCOME TAXES         (16,000)        20,210            64,006          18,310
                                        ------------   ------------      ------------   -------------

NET INCOME (LOSS)                       $   (19,997)   $    44,842       $    96,242    $     39,500
                                        ============   ============      ============   =============



     INCOME (LOSS)
        PER COMMON SHARE

        Basic                           $       .00    $       .01       $       .01    $        .01
        Diluted                         $       .00    $       .01       $       .01    $        .01

     WEIGHTED AVERAGE
     SHARES OUTSTANDING

        Basic                             10,099,880     7,705,607        10,099,724       7,624,695
        Assumed conversion                        --*      177,946                --         169,623
                                        ------------   ------------      ------------   -------------
                                          10,099,880     7,883,553        10,099,724       7,794,318
                                        ------------   ------------      ------------   -------------

          * Antidilutive

</TABLE>



                             See accompanying notes


                                       4
<PAGE>



                       COLOR IMAGING, INC. AND SUBSIDIARY
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                     FOR THE SIX MONTH PERIODS ENDED JUNE 30
                                   (UNAUDITED)


<TABLE>
<CAPTION>
<S>                                                    <C>            <C>
                                                             2002           2001
                                                        -----------    -----------

Cash flows from operating activities:
  Net income                                           $     96,242   $     39,500
  Adjustments to reconcile net income to net cash
    provided (utilized) by operating activities:
      Depreciation and amortization                         312,263        300,846
      Deferred income taxes                                  62,001         17,300

  Decrease (increase) in:
        Accounts receivable and other receivables        (1,122,474)      (228,235)
        Inventories                                       1,179,214          9,036
        Prepaid expenses and other assets                     3,640       (170,768)
  Increase (decrease) in:
        Accounts payable and accrued liabilities           (608,739)       174,192
                                                       -------------  -------------
        Net cash (utilized) provided by
               operating activities                         (77,853)       141,871
                                                       -------------  -------------
Cash flows from investing activities:
     Capital expenditures                                  (392,815)      (462,904)
     Other assets                                                --       (188,158)
     Patents and intellectual properties                     (5,023)             -
                                                       -------------  -------------
        Net cash (used in)
             investing activities                          (397,838)      (651,062)
                                                       -------------  -------------
Cash flows from financing activities:
  Net (payments) under line of credit                      (190,334)      (393,035)
  Net proceeds from sale of common stock                    143,351        935,906
  Loan from related party                                   500,000             --
  Principal payments of long-term debt                     (161,637)      (135,431)
                                                       -------------  -------------
         Net cash provided by
             financing activities                           291,380        407,440
                                                       -------------  -------------
         Net (decrease) in cash                            (184,311)      (101,751)
Cash at beginning of year                                   395,327        339,348
                                                       -------------  -------------
Cash at end of period                                   $   211,016    $   237,597
                                                       =============  =============

</TABLE>


                             See accompanying notes


                                       5
<PAGE>

                       COLOR IMAGING, INC. AND SUBSIDIARY
          NOTES TO INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                  June 30, 2002
                                   (Unaudited)

NOTE 1. BASIS OF PRESENTATION

The accompanying  unaudited interim consolidated  condensed financial statements
have been prepared in accordance with accounting  principles  generally accepted
in the United States of America for interim  financial  information and with the
instructions  to  Form  10-QSB.  Accordingly,  they  do not  include  all of the
information and footnotes required by accounting  principles  generally accepted
in the United  States of  America  for  complete  financial  statements.  In the
opinion of management,  all adjustments (consisting of normal recurring accruals
and  adjustments)  considered  necessary  for  a  fair  presentation  have  been
included.  Operating  results for the three months and six months ended June 30,
2002 are not necessarily  indicative of the results that may be expected for the
year ended December 31, 2002.

NOTE 2. COMMON STOCK

From  January 1, 2002 to June 30,  2002,  one holder of the  Company's  warrants
exercised  1,750  warrants on a cashless  basis and was issued 705 shares of the
Company's common stock. During March 2002, the Company rescinded one transaction
entered  into  during  2001 for the sale of 25,000  shares  of common  stock and
warrants to purchase  25,000  shares of the common  stock of the  Company.  This
transaction  was  retroactively  reflected  in the  financial  statements  as of
December 31, 2001. As of March 2002, all notes  receivable from sales of Company
securities have been fully paid by the investors.

On October 30, 2001, the Company issued and sold 1,000,000  shares of its common
stock to one investor in exchange for $2 million.  The purchase  price was $2.00
per share,  of which $10,000 was payable in cash and  $1,990,000  was payable in
the form of a recourse  promissory  note. The Company also agreed to issue up to
500,000 warrants exercisable at $2.00 per share to purchase the Company's common
stock.  In March 2002,  the Company and the  investor  mutually  rescinded  this
transaction  and the Company has  retroactively  reflected this rescission as of
December 31, 2001.

NOTE 3. INVENTORIES

Inventories  consisted  of the  following  components  as of June  30,  2002 and
December 31, 2001:


                                     June 30, 2002             December 31, 2001
                                  ------------------           -----------------
        Raw materials              $       598,867             $       723,480
        Work-in-process                  1,873,410                     967,982
        Finished goods                   2,536,056                   4,534,410
        Obsolescence allowance            (131,505)                   (169,830)
                                   -----------------           -----------------
            Total                   $     4,876,828             $     6,056,042
                                   =================           =================


NOTE 4. CHANGES TO BORROWING ARRANGEMENTS

The  Company has a $2.5  million  revolving  line of credit with an  outstanding
balance  as of June 30,  2002 of  $1,272,082.  At the end of each  month for the
following  month,  the  Company has the  interest  rate option of either the one
month Libor  interest  rate in effect two business  days before the first day of
the month plus 2.50% or the Bank's prime  interest rate minus 0.25%.  As of June
30, 2002,  the interest  rate was the  one-month  Libor rate of 1.84% plus 2.50%
(4.34%). This revolving line of credit has a June 30, 2003 expiration date.



                                       6
<PAGE>


NOTE 4. CHANGES TO BORROWING ARRANGEMENTS (CONTINUED)

Under the lines of  credit,  the  Company  is  permitted  to borrow up to 85% of
eligible  accounts  receivable and 50 percent of eligible  inventories  (up to a
maximum of $1.1 million and not to exceed 60 percent of the total  outstanding).
The Company has  granted  the Bank a security  interest in all of the  Company's
assets as security for the repayment of the lines of credit.

The Bank agreement  contains  various  covenants that the Company is required to
maintain,  and as of June 30,  2002 the  Company  was in  compliance  with  such
covenants.


NOTE 5. SIGNIFICANT CUSTOMERS

In the six month period ended June 30, 2002, two customers accounted for 56% and
14%,  respectively,  of net sales.  The Company  does not have a written or oral
contract  with these  customers.  All sales are made  through  purchase  orders.
Accounts  receivable  from these customers at June 30, 2002, were $2,708,630 and
$326,305, respectively.


NOTE 6. SIGNIFICANT SUPPLIERS

In the six months  ended June 30,  2002,  the Company  purchased  55% of its raw
materials, components and supplies from one supplier in connection with sales to
its largest  customers.  At June 30, 2002, the accounts payable to this supplier
was $2,237,171.

NOTE 7. FINANCIAL REPORTING FOR BUSINESS SEGMENTS:

The  Company  believes  that its  operations  are in a single  industry  segment
involving  the  development  and  manufacture  of  products  used in  electronic
printing.  All of the Company's  assets are domestic.  The sales to unaffiliated
customers by geographic  region for the  six-month  periods ended June 30 are as
follows:

                                       2002         2001
                                   -----------  -----------
Sales to Unaffiliated Customers:
United States                      $10,299,247  $11,163,436
Europe                               3,222,764    1,858,143
Asia                                   539,438      254,007
All Other                            1,926,671      350,884
                                   -----------  -----------
Total                              $15,988,120  $13,626,470
                                   ===========  ===========




                                       7
<PAGE>

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following  discussions  should be read in conjunction  with our consolidated
condensed financial statements and the related notes thereto.

OVERVIEW

     We develop,  manufacture and market  products used in electronic  printing,
analog and digital copiers and supply high-speed digital printing systems. These
high speed  digital  printing  systems  print in  real-time  directly  on offset
presses.  Offset  presses are presses  that  utilize  plates and ink to print on
paper  and other  materials.  We  conduct  our  business  through  two  separate
operating units, Color Imaging, Inc., and Logical Imaging Solutions,  Inc. Color
Imaging,  Inc. develops,  purchases from others and markets electronic  printing
products,  including  black text,  color,  magnetic  character  recognition  and
specialty  toners,  and provides other parts and  accessories for laser printers
and digital copiers. Logical Imaging Solutions,  Inc. designs,  manufactures and
integrates  proprietary  software and  hardware  with  components  made by third
parties into a complete printing system and offers related technical support and
supplies.  Logical Imaging  Solutions,  Inc.'s printing system allows commercial
printers  to  digitally  process  and print data and images that may change from
page to page, also known as variable data, at high speeds directly on commercial
offset web  presses.  This  capability  saves time and money for the printer and
customer.

     Our  operating  strategy  is to (1)  expand,  including  through  strategic
acquisition(s), our printer and copier products business, while (2) diversifying
our  business by pursuing  innovative  electron  beam imaging  technologies  and
products  for sale to the  commercial  press  market.  We intend  to expand  our
printer  and  copier  business  by (1)  increasing  the  capacity  of our  toner
manufacturing   facility  and  utilize  it,  increasingly,   for  higher  margin
specialty,  magnetic character  recognition,  copier and color toners and (2) by
expanding  our sources for products  from  strategic  suppliers  that we can add
value to or resell that  complement  our product  lines.  The  objective  of our
pursuit of innovative  technologies  and products  applicable to the  commercial
offset  press  market  is to  become  a  manufacturer  of  our  own  proprietary
high-speed  digital press,  printing in color,  and a related line of consumable
products to add to sales and operating profitability while reducing our reliance
on the printer and copier consumable product markets.

COLOR IMAGING, INC.

     Since 1989,  Color Imaging,  Inc. has developed and  manufactured  products
used in electronic printing.  Color Imaging,  Inc. formulates and produces black
text and specialty toners,  including color and magnetic  character  recognition
toners for numerous  laser  printers.  Color  Imaging,  Inc.'s toners permit the
printing of a wide range of user-selected colors and also the full process color
printing of cyan,  yellow,  magenta and black.  Magnetic  character  recognition
toners  enable the  printing of magnetic  characters  which are required for the
high-speed  processing  of checks  and other  financial  documents.  Color  also
supplies   other   consumable   products  used  in  electronic   printing,   and
photocopying,  including toner cartridges, cartridge components,  photoreceptors
and imaging drums.

     Color  Imaging,   Inc.  has  continually  expanded  its  product  line  and
manufacturing capabilities.  This expansion has led to the creation of more than
130 different black text, color,  magnetic  character  recognition and specialty
toner  formulations,  including  aftermarket  toners and  imaging  products  for
printers  and  facsimile  machines   manufactured  by  Brother(TM),   Canon(TM),
Delphax(TM),  Hewlett Packard(TM),  IBM(TM), Lexmark(TM),  Sharp(TM), Xerox(TM),
Minolta(TM),  Mita(TM),  Panafax(TM),  Pentax(TM), Pitney Bowes(TM),  Epson(TM),
Fuji-Xerox(TM),   Toshiba(TM),  Kyocera(TM),  Okidata(TM),   Panasonic(TM),  and
printing  systems  developed by Logical Imaging  Solutions,  Inc. Color Imaging,
Inc.  also  manufacturers  and or markets  toners  for use in Ricoh,  Sharp(TM),
Xerox(TM),  Canon(TM),  Lanier(TM) and Toshiba(TM) copiers.  Color Imaging, Inc.
also  offers  product  enhancements,  including  imaging  supplies  that  enable
standard laser  printers to print magnetic  character  recognition  data.  Color
Imaging,  Inc.  markets  branded  products  directly to OEMs and its aftermarket
products  worldwide to distributors and  remanufacturers  of laser printer toner
cartridges and to dealers and distributors of copier products.



                                       8
<PAGE>

LOGICAL  IMAGING SOLUTIONS, INC.

     Logical Imaging Solutions,  Inc. designs,  assembles and markets a complete
printing system,  SOLUTION2000,  to commercial printers. When installed directly
on an offset printing press, the SOLUTION2000  expands printing  capabilities to
include the printing of variable data and images,  including bar codes, magnetic
character  recognition  data  and  unlimited  alphanumeric   sequencing.   These
functions allow commercial printers to digitally process and print variable data
at high speeds where  previously  they were able to only print fixed images from
printing plates or cylinders  installed on their offset printing presses.  Since
its founding in 1993, Logical Imaging Solutions, Inc.'s development efforts have
focused on creating a  high-speed  digital  variable  data  printing  system for
commercial printing applications that combines software, hardware and consumable
products not only for black text for image  printing but also in color.  Logical
Imaging  Solutions,  Inc.  also  offers  a full  line  of  consumable  products,
including toners, print cartridges and toner fusing assemblies.  Our strategy is
to continually  build an installed base of printer  systems that will generate a
recurring demand for these consumable products.

     Logical  Imaging  Solutions,  Inc. is developing the  DigitalColorPress,  a
Solution series of printing systems  incorporating color printing  capabilities.
Our first  DigitalColorPress  has been  installed for beta testing at a customer
site;  however,  test  printing  has  been  delayed,  since,  the  customer  has
experienced delays in reconfiguring its press to test our DigitalColorPress with
other equipment configurations. The DigitalColorPress can print variable data in
color at rates  exceeding  250  pages-per-minute.  This is in  contrast to other
products  which do not  print  directly  on the  press  and  print at  speeds of
approximately 85 pages per minute. We believe that this represents an attractive
alternative for high-speed offset printing applications because it reduces steps
and labor in the print process.  We intend to market Logical Imaging  Solutions,
Inc.'s  DigitalColorPress  color  printing  system as an enhancement to existing
Solution Series installations and as an upgrade for other printing systems.

CRITICAL ACCOUNTING POLICIES

     Our  financial  statements  are  prepared  in  accordance  with  accounting
principles  generally accepted in the United States, which require management to
make estimates and  assumptions  that affect the reported  amounts of assets and
liabilities  at  the  date  of  the  financial  statements,  the  disclosure  of
contingent  assets and  liabilities,  and the  reported  amounts of revenues and
expenses  during the reporting  period.  Actual  results could differ from those
estimates. We believe the following critical accounting policies affect our more
significant  estimates and assumptions  used in the preparation of our financial
statements.  Our  significant  estimates  and  assumptions  are reviewed and any
required adjustments are recorded on a quarterly basis.

     Carrying Value of Electron Beam Imaging Test Equipment. As of June 30, 2002
the net book value of our investment in electron beam imaging test equipment was
approximately $1.34 million. We have estimated the useful life of this equipment
to be ten years.  The equipment is new  technology  and is used by us to support
our selling, manufacturing and research and development activities in connection
with  Logical's   DigitalColorPress.   To  date,  however,  we  have  not  fully
commercialized  such products,  and the future benefit that we would derive from
this  equipment  is  dependent  upon  our  successfully   commercializing   this
technology  and our products  remaining  competitive  for at least the length of
time we have  estimated  its useful life.  Should we not be  successful in fully
commercializing  the  related   DigitalColorPress   products  or  realizing  the
sufficient  levels of sales  from  such  products,  these  assets  could  become
partially or fully impaired.

     Lower of Cost or Market for Inventory.  Our inventories are recorded at the
lower of  standard  cost or  market.  As with any  manufacturer  or  wholesaler,
economic conditions,  cyclical customer demand, product introductions or pricing
changes of our competitors and changes in purchasing or distribution  can affect
the carrying value of inventory.  As circumstances  warrant,  we record lower of
cost or market inventory  adjustments.  In some instances these  adjustments can
have a material effect on the financial  results of an annual or interim period.
In order to determine such  adjustments,  we evaluate the age,  inventory turns,
estimated fair value and, in the case of toner  products,  whether or not it can
be reformulated and manufactured into other products,  and record any adjustment
if estimated fair value is below cost.  Through  periodic  review of each of our
inventory  categories and by offering markdown or closeout pricing, we regularly
take steps to sell off slower moving inventory to eliminate or lessen the effect
of any lower of cost or market adjustment.




                                       9
<PAGE>

     Carrying  Value  of  Toner  Manufacturing  Equipment.  We are  nearing  the
completion of the latest expansion of our toner manufacturing  facility. We have
some $7.5 million  invested in certain of the equipment and  leaseholds,  with a
carrying value of $6.7 million, in connection with toner manufacturing that have
estimated lives of up to twenty years. Should competing technologies or offshore
competitors  cause  our  manufacturing  technology  to be  non-competitive,  the
estimated life of these assets may need to be shortened and their carrying value
could be materially affected.

OVERVIEW

     Net sales,  for the three and six months that ended on June 30, 2002,  were
primarily  generated  from the sale of Color  Imaging's  black  text,  color and
magnetic  ink  character  recognition  printer  and copier  toners  and  related
consumable  products,  including toner  cartridges and the re-filling of certain
toner cartridges. Revenue is recognized from the sale of products when the goods
are  shipped  to the  customer.  In the six  months  ended  June 30,  2002,  two
distributors  of  imaging  supplies  accounted  for  approximately  56% and 14%,
respectively,  of net sales,  with the latter  being an OEM for which we private
label. Sales to these customers consist primarily of analog copier products, and
as a result are expected to decline over time unless  these  declining  sales to
these customers are offset by the sale of digital copier products.  Further,  by
the end of the third quarter 2002 we will no longer be selling  certain very low
margin copier product purchased for resale to our largest customer. As a result,
our sales will be less  concentrated  with our  largest  customer  and our gross
profit  margins will  improve.  Our sales of this  discontinued  very low margin
product  are  expected  to be  approximately  $4 million of our total sales this
year. We do not have a written or oral contract with these customers.  All sales
are made  through  purchase  orders.  Consistent  with the  purchase  orders and
forecasts  provided to us by our two major customers that account for 70% of our
business,  we provide our major  suppliers with purchase  orders three months in
advance  and an  additional  rolling  forecast  for two months.  We  communicate
regularly and meet at least twice annually with these customers and suppliers to
assess  developments  in the industry  and  expected  changes in the business to
maintain an efficient  supply chain. Net sales made outside of the United States
increased to 36% of total sales for the six months ended June 30, 2002, compared
to 18% for the six months ended June 30, 2001.  This  increase in  international
sales  resulted  primarily  from  the  increase  in  sales  to our  two  largest
customers.

     Logical Imaging  Solution's sales for printing systems and related software
and consumable products for the three and six months that ended on June 30, 2002
represented 2.0 and 2.2 percent of our net revenues.

RECENT DEVELOPMENTS

     On June 10,  2002,  the  board of  directors,  to  better  focus  executive
management energies on each of our operating units,  reaffirmed Director Michael
W. Brennan as Chairman and Chief  Executive  Officer of our  subsidiary  Logical
Imaging  Solutions,  Inc., and elected  Jui-Hung Wang Chairman of Color Imaging,
Inc. Dr. Sueling Wang continues to serve as Vice-Chairman and President of Color
Imaging,  Inc. Mr.  Brennan also  resigned  from the board of directors of Color
Imaging  effective  September 10, 2002, to dedicate himself to the furthering of
the business  interests of Logical  Imaging  Solutions,  including  its possible
reorganization  as a standalone  company  separate and apart from Color Imaging.
The board of directors and management realize that the difficulties  surrounding
the raising of significant equity capital from  non-affiliates for Color Imaging
in this  market  environment  is such  that a  restructure  of  Logical  Imaging
Solutions  is an option  that must be  considered.  We have not,  at this  time,
specifically  allocated any of the proceeds of our pending  offering  filed with
the Securities and Exchange Commission on Form SB-2 to the furthering of Logical
Imaging  Solutions'  technology,  since we are considering the  restructuring of
Logical  Imaging  Solutions.  We are considering  the  restructuring  of Logical
Imaging  Solutions  in order to provide  it with what we believe  will be better
opportunities  to  raise  the  substantial  funding  necessary  to  realize  the
significant potential of its technology, should it prove successful and absent a
satisfactory manufacturing or OEM arrangement with another party for its further
commercial development.

     Four of our directors,  Messrs.  Brennan,  St. Amour, Langsam and Hollander
expressed concern over the potential reorganization of Logical Imaging Solutions
and the lack of the planned use of any proceeds  from our  offering  pending the
Securities and Exchange  Commission on Form SB-2 for the further  development of
its  technology,  as they are of the opinion  that  Logical  Imaging  Solutions'
business  prospects  demanded a greater  investment.  Recently,  after  informal
discussion with Dr. Sueling Wang and Mr. Van Asperen, they submitted an informal

                                       10
<PAGE>


proposal to acquire the capital stock of Logical  Imaging  Solutions in exchange
for 1.6 million shares of Color Imaging.  At present,  the  approximate net book
value of Logical  Imaging  Solutions is $2.4 million,  after the  forgiveness of
approximately  $2.1  million of  inter-company  advances  from Color  Imaging to
Logical Imaging Solutions. In addition to the 1.6 million shares to be exchanged
for Logical Imaging  Solutions  shares,  Color Imaging would receive warrants to
purchase shares of common stock of Logical Imaging Solutions approximating up to
15% of total then outstanding shares of Logical Imaging Solutions.  The proposal
is under review, but has not yet been agreed to nor has it been submitted to the
Board  of  Directors.  If the  proposal  seems  to be  acceptable,  it  will  be
considered by a committee of disinterested  directors,  directors other than the
aforementioned four, who may elect to hire an independent consultant to evaluate
the fairness,  from a financial point of view, of the proposal.  There will also
be  several  important  conditions,  such as a  personal  loan from Dr.  Wang to
Logical  Imaging  Solutions of $500,000 with the an initial advance of $100,000,
secured by shares of Color  Imaging  stock  owned by the  purchasers  of Logical
Imaging Solutions,  lender approval and possibly the receipt by Color Imaging of
proceeds from this offering  sufficient for Color Imaging to obtain its lender's
approval of the proposed transaction. The loss that Color Imaging would incur as
the result of discontinuing the Logical Imaging  Solutions  operations may be in
excess of $500,000.

     The  following  table  sets  forth,  for the  periods  indicated,  selected
information  relating to Logical Imaging  Solutions  which  information has been
derived from Color Imaging's  audited and unaudited  consolidated  statements of
operations.

<TABLE>
<CAPTION>
         <S>                         <C>                   <C>                   <C>
                                            Twelve Months Ended               Six Months Ended
                                                December 31,                      June 30,
                                   ---------------------------------------   -------------------
                                         2000                 2001                  2002
                                   -----------------    ------------------   -------------------

         Net Revenue                 $  723,063            $  551,399            $  356,497
         Operating  (Loss)             (306,341)             (267,220)             (254,466)
         Net (Loss)                  $ (245,829)           $ (204,154)           $ (163,082)
</TABLE>

     On May 14,  2002,  the U.S.  Patent and  Trademark  Office  issued  Logical
Imaging  Solutions' patent for our print cartridge designed for digital printing
using electron beam imaging technologies. Further, in addition to the previously
announced    beta-test    installation    of    Logical    Imaging    Solutions'
DigitalColorPress, we have additional systems undergoing significant engineering
performance evaluations.  Depending on the outcome of these evaluations,  we may
then more aggressively pursue the restructuring of Logical Imaging Solutions and
its further  capitalization,  if necessary.  As the result of the foregoing,  we
have  temporarily  suspended  further  relocation and  consolidation  of Logical
Imaging Solutions' operations and research and development activities from Santa
Ana, California to our headquarters in Norcross, Georgia.

     Color Imaging is currently testing recently  installed toner  manufacturing
equipment to complete our factory expansion. This installation represents a $1.5
million  investment on our part to not only  increase our business,  but to also
improve  quality,  product  consistency and to lower costs. We believe that upon
the  conclusion  of this testing our capacity  will have  doubled,  to allow for
increased  volumes of  manufactured  products,  manufacturing  efficiencies  and
competitiveness.  Recently we placed orders for $100,000 of additional equipment
to be  installed  before the end of this year to  complete  our first  dedicated
color toner  manufacturing  system,  a system for which we have already invested
some $300,000. In our offering filed with the Securities and Exchange Commission
on Form SB-2, we made provision for $1.5 million of new capital equipment,  most
of which is planned for additional  dedicated color toner manufacturing  systems
for "business  color" printing and copying systems being introduced by OEMs. The
remainder  of the planned  capital  investment  is to further  improve our toner
research, development and quality control programs.

     On July 8, 2002, Charles Allison was appointed Vice President,  Technology,
to increase executive management involvement in laser printer and copier product
development, quality assurance and technical support. Mr. James Telsey was hired
as Vice President, Sales & Marketing, to replace Mr. Allison in that position.

     During March 2002, we rescinded two transactions for the sale of our common
stock and warrants to purchase  additional  shares of our common stock  totaling
1,025,000 and 525,000,  respectively.  The purchasers paid the par value in cash
for the shares issued to them, and the balance of the purchase  price  consisted
of recourse  promissory  notes. The sale of 1,000,000 shares of our common stock
and warrants to purchase an additional  500,000  shares of common stock was, per


                                       11
<PAGE>

agreement,  subject to our registering the securities for resale.  However,  the
SEC staff took the position that these  securities  could not be registered  for
resale in this  registration  statement and the transaction  was rescinded,  the
shares,  warrant and promissory  note were cancelled and we retained the $10,000
and accrued interest earned thereon in consideration of our expenses incurred in
connection with the transaction. The second transaction for 25,000 shares of our
common stock and warrants to purchase an additional  25,000 shares of our common
stock was rescinded when the parties  believed the promissory  note would not be
paid by the time this  registration  statement  became  effective.  The  shares,
warrant  and  promissory  note were  cancelled  and the cash  consideration  was
refunded to the purchaser.

With  the  rescission  of the two  above-mentioned  sales  of our  common  stock
totaling  $2,050,000,  we anticipate that we will need to raise additional funds
from other  sources to meet  operating  requirements  and to fund other  planned
activities. We intend to meet our operating requirements from funds generated by
operations and by borrowing from  affiliates.  Certain other planned  activities
are dependent upon either increased  borrowings from our affiliates,  borrowings
from others or our raising  funds  through the sale of our  securities.  We will
allow our directors, officers and affiliates to purchase up to $7 million of our
shares of common stock in this offering.

RESULTS OF OPERATIONS

The following  table sets forth certain  information  derived from the Company's
unaudited interim consolidated statements of operations:

<TABLE>
<CAPTION>
     <S>                                            <C>          <C>              <C>           <C>

                                                    THREE MONTHS ENDED             SIX MONTHS ENDED
                                                         JUNE 30,                      JUNE 30,
                                                     2002        2001             2002          2001
                                                               (PERCENTAGE OF NET SALES )

     Net sales                                       100          100              100          100
     Costs of sales                                  86           87               85            85
     Gross profit                                    14           13               15            15
     Administrative expenses                          5            5                6            6
     Research and development                         4            3                3            3
     Sales and marketing                              4            3                4            4
     Operating income (loss)                          1            2                2            2
     Interest expense                                 1            1                1            2
     Depreciation and amortization                    4            2                2            2
     Income before taxes                              0            1                1            0
     Provision for taxes                              0            0                0            0

     Net Income (loss)                                0            1                1            0

</TABLE>

THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THREE MONTHS ENDED JUNE 30, 2001

NET SALES.  Our net sales were $8.1 million for both the three months ended June
30,  2002 and for the  comparable  period in 2001.  Of the $8.1  million  in net
sales, $5.8 million were  attributable to copier products of Color Imaging.  The
revenue increase from copier products to $5.8 million from 2001 to 2002 was $0.1
million,  or 2%. Sales of our laser products for the three months ended June 30,
2002 were also  comparable  to the same period of 2001. We believe that sales of
laser  printing  products will  increase in future  periods when we complete the
testing of major manufacturing  equipment recently installed. We further believe
that when we place this new  equipment in service we will not only  increase our
toner  manufacturing  capacity,  but we will also,  with  increased  production,
increase  manufacturing  efficiencies  and  competitiveness  and reduce  cost of
sales.  Net sales made  outside of the United  States  increased to 37% of total
sales  for  the  three  months  ended  June  30,  2002,  compared  to 9% for the
comparable  period last year.  This  increase in  international  sales  resulted
primarily from the increase in sales to our two largest customers.



                                       12
<PAGE>

COST OF GOODS SOLD.  Cost of goods sold was $7 million for both the three months
ended June 30, 2002 and for the comparable period in 2001, for approximately the
same net sales for the periods.  Cost of goods sold as a percentage of net sales
decreased  by 1  percentage  point from 87% for the three  months ended June 30,
2001 to 86% for the three months ended June 30, 2002, primarily as the result of
the effects of previous price increases on a few analog copier products.

GROSS PROFIT.  As a result of the above factors,  gross profit increased to $1.1
million in the three  months  ended June 30, 2002 from $1.0 million in the three
months ended June 30, 2001.  Gross profit as a percentage of net sales increased
by 1 percentage  point from 13% to 14% for the three months ended June 30, 2002,
as compared to the corresponding period of the prior year. During 2002, with the
elimination of certain very low margin copier products  purchased for resale and
the completion of the factory expansion, management believes that both the gross
profit dollars and percentage will further improve over 2001.

OPERATING  EXPENSES.  Operating  expenses  increased $0.2 million or 22% to $1.1
million in the three  months  ended June 30, 2002 from $0.9 million in the three
months ended June 30, 2001. General and administrative, selling and R&D expenses
increased,  as a percentage of net sales,  to 13% in the three months ended June
30,  2002  from 11% in the  three  months  ended  June  30,  2001.  General  and
administrative increased approximately 15%, or $59,000 to $447,000 for the three
months ended June 30, 2002 from the comparable period in 2001, largely resulting
from increased expenses for professional services. Selling expenses increased by
$54,000,  or 19%, in the three months ended June 30, 2002  compared to the three
months ended June 30, 2001. Selling expenses increased  primarily as a result of
the  increased  salaries,  commissions  and  promotion  expenses.  Research  and
development  expenses  increased by  $106,000,  or 57%, to $291,000 in the three
months ended June 30, 2002. Research and development expenses as a percentage of
net sales  increased  to 4% in the three  months June 30,  2002,  from 3% in the
three months  ended June 30,  2001,  as well,  with  two-thirds  of the increase
having been  directed to toner  product  development  and the  remainder  toward
furthering the development of our commercial printing technologies.

OPERATING INCOME.  As a result of the above factors,  operating income decreased
by $142,000, to a profit of $33,000 in the three months ended June 30, 2002 from
$175,000 in the three months ended June 30, 2001.

INTEREST AND FINANCE EXPENSE. Interest expense decreased by $22,000 in the three
months  ended  June 30,  2002 from the three  months  ended June 30,  2001.  The
decrease was primarily the result of lower  interest rates and  secondarily  the
result of reduced interest bearing debt levels.

OTHER INCOME.  Other income increased by $19,000 from income of $3,000 to income
of $22,000 in the three  months  ended June 30, 2002 from the three months ended
June 30, 2001.

INCOME TAXES. As the result of our loss in the three months ended June 30, 2002,
we recorded an income tax credit of $16,000 for the period, while the income tax
provisions were $20,000 for the three months ended June 30, 2001.


SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO SIX MONTHS ENDED JUNE 30, 2001

NET SALES.  Our net sales were $16.0  million for the six months  ended June 30,
2002, an increase of $2.4 million or 18%, for the comparable  period in 2001. Of
the $16.0  million in net  sales,  $10.9  million  were  attributable  to copier
products of Color Imaging.  The revenue  increase from copier  products to $10.9
million  from 2001 to 2002 was $1  million,  or 10%,  primarily  resulting  from
increased  sales of copier products to our two largest  customers.  Sales of our
laser  products  for the six  months  ended  June 30,  2002  decreased  some 35%
compared  to the same  period of 2001,  primarily  as a result of fewer sales of
bottle toner and kits, continuing the trend away from bottled toner to that sold
in bulk.  We  believe  that  sales of laser  printing  products,  in bulk,  will
increase in future  periods when we complete the testing of major  manufacturing
equipment  recently  installed.  We further  believe that when we place this new
equipment in service we will not only increase our toner manufacturing capacity,
but we will also, with increased production, increase manufacturing efficiencies
and  competitiveness  and reduce cost of sales.  By the end of the third quarter
2002 we will no longer be selling certain very low margin product  purchased for


                                       13
<PAGE>

resale to our largest customer. As a result, our sales will be less concentrated
with our largest  customer  and we expect  that our gross  profit  margins  will
improve.  Our sales of this discontinued very low margin product are expected to
be approximately $4 million of our total sales this year. Net sales made outside
of the United  States  increased  to 36% of total sales for the six months ended
June 30,  2002,  compared  to 18% for the  comparable  period  last  year.  This
increase in international sales resulted primarily from the increase in sales to
our two largest customers.

COST OF GOODS  SOLD.  Cost of goods  sold was $13.6  million  for the six months
ended June 30, 2002 and $11.6  million  for the  comparable  period in 2001,  an
increase of $2 million or 17% for  approximately  the same increase in net sales
for the period.  Cost of goods sold as a percentage of net sales was 85% for the
six month periods ended June 30, 2002 and 2001.

GROSS PROFIT.  As a result of the above factors,  gross profit increased to $2.4
million  in the six  months  ended  June 30,  2002 from $2.0  million in the six
months ended June 30, 2001.  Gross profit as a percentage of net sales  remained
at 15% for both six month  periods.  With the  elimination  of certain  very low
margin copier  products  purchased for resale and the  completion of the factory
expansion, management believes that both the gross profit dollars and percentage
margin will further improve over 2001 by year end 2002.

OPERATING  EXPENSES.  Operating  expenses  increased $0.3 million or 18% to $2.1
million  in the six  months  ended  June 30,  2002 from $1.8  million in the six
months  ended  June  30,  2001.  As  a  percentage  of  net  sales  general  and
administrative,  selling and R&D expenses,  was 13% in the six months ended June
30, 2002 and 2001.  General and  administrative  increased  approximately 8%, or
$64,000 to $908,000 for the six months  ended June 30, 2002 from the  comparable
period in 2001,  largely  resulting  from  increased  expenses for  professional
services.  Selling  expenses  increased by  $105,000,  or 21%, in the six months
ended June 30, 2002  compared  to the six months  ended June 30,  2001.  Selling
expenses increased  primarily as the result of increased  salaries,  commissions
and promotion expenses. Research and development expenses increased by $151,000,
or 38%, to $553,000 in the six months  ended June 30, 2002.  As a percentage  of
net sales,  research and  development  expenses  were 3% in the six months ended
June 30, 2002 and for the comparable period in 2001.

OPERATING INCOME.  As a result of the above factors,  operating income increased
by $13,000,  to a profit of $303,000 in the six months  ended June 30, 2002 from
$290,000 in the six months ended June 30, 2001.

INTEREST AND FINANCE EXPENSE.  Interest expense  decreased by $62,000 in the six
months ended June 30, 2002 from the six months ended June 30, 2001. The decrease
was primarily the result of lower interest rates and  secondarily  the result of
reduced interest bearing debt levels.

OTHER INCOME. Other income increased by $18,000 from income of $11,000 to income
of $29,000 in the six months  ended June 30, 2002 from the six months ended June
30, 2001.

INCOME TAXES. As the result of our increased profit in the six months ended June
30, 2002, our provision for taxes increased from $18,000 in the six months ended
June 30, 2001 to $64,000 for the period ended June 30, 2002.

LIQUIDITY AND CAPITAL RESOURCES

At June 30,  2002,  as well as  December  31,  2001,  our  working  capital  was
approximately $2.5 million and our current ratio was 1.34 to 1.

Cash flows used in  operating  activities  were  $78,000 in the six months ended
June 30,  2002  compared to $142,000  provided by  operations  in the six months
ended June 30,  2001.  The cash flows used by  operating  activities  in the six
months  ended June 30,  2002  increased  primarily  due to our  carrying  higher
accounts  receivable and our reducing  payables and accrued  liabilities  during
2002. While accounts and other receivables  increased by $1,122,000,  reflecting
our growth in net sales in the six months ended June 30, 2002,  this use of cash
flow was offset by a reduction of inventory  for the same period of  $1,179,000.
We continue to improve our inventory  turnover,  and we expect to further reduce
inventory and SKUs by the end of the year 2002.



                                       14
<PAGE>

Cash flows used in investing  activities  were  $397,000 in the six months ended
June 30, 2002,  compared to $651,000 in the six months ended June 30, 2001. Most
of the cash used in investing  activities in the six months ended June 30, 2002,
$328,000,  was capital  expenditures  in connection  with the  completion of our
factory expansion.

We have a $2.5  million  revolving  line of  credit  with our  bank  that had an
outstanding balance as of June 30, 2002 of $1,272,000. At the end of each month,
for the following month, we have an interest rate option of either the one-month
Libor  interest  rate in effect two  business  days  before the first day of the
month plus 2.50% or our bank's prime  interest rate minus 0.25%.  As of June 30,
2002,  the  interest  rate was the  one-month  Libor  rate of 1.84%  plus  2.50%
(4.34%). This revolving line of credit has a June 30, 2003 expiration date.

Under the line of  credit,  we are  permitted  to  borrow up to 85% of  eligible
accounts  receivable and 50 percent of eligible  inventories (up to a maximum of
$1.1  million  and not to exceed 60 percent of the total  outstanding).  We have
granted our bank a security  interest  in all of our assets as security  for the
repayment of the lines of credit.

The Bank agreement  contains various  covenants which the Company is required to
maintain.  As of  June  30,  2002,  the  Company  was in  compliance  with  such
covenants.

Cash flows  provided by financing  activities  for the six months ended June 30,
2002 was $291,000,  resulting  primarily from the $500,000 loan we received from
an officer,  compared  to $407,000  provided  by  financing  activities  for the
comparable  period of 2001. The cash flows provided by financing  activities for
the six months ended June 30, 2001 were derived from  proceeds  from the sale of
our common stock.

Funds  generated  from  operating   activities  and  availability  under  credit
facilities  is  expected  to be  insufficient  to  finance  our  plans to expand
operating   activities  for  the  remainder  of  2002.   Having   rescinded  two
transactions  during  March  2002  for  the  sale  of  our  securities  totaling
$2,050,000, we anticipate that we will need to raise an additional $500,000 from
other sources to fund these activities.  To meet these requirements we intend to
seek financing from our affiliates and/or engage in sales of our securities.  We
have received our bank's consent to borrow the needed funds from affiliates.  We
borrowed  $500,000  during the first quarter 2002 from an officer to meet vendor
commitments  for  products,  and we expect to borrow from an  affiliate  between
$300,000 to $500,000 in the third  quarter 2002 for our  operating and investing
needs.  Should we not obtain these  additional  funds,  certain  operational  or
investing  activities would have to be reduced or curtailed entirely to meet our
existing  commitments,  including  a  $250,000  principal  payment  due  on  our
industrial  development  bond.  We intend to fund these  planned  activities  by
either borrowing the additional funds from affiliates or selling our securities.
There  can be no  assurance  that  additional  financing  will be  available  on
favorable  terms or that the proceeds  from the sale of our  securities  will be
available to meet these planned operating and financing  activities.  We believe
that these operating and investing activities,  if successfully completed,  will
increase revenues and operating margins.

FACTORS   THAT  MAY   AFFECT   FUTURE   RESULTS   AND   INFORMATION   CONCERNING
FORWARD-LOOKING STATEMENTS

Statements  contained in this report which are not statements of historical fact
are  forward-looking  statements  within  the  meaning  of  Section  27A  of the
Securities Act of 1933 and Section 21E of the  Securities  Exchange Act of 1934.
These forward-looking statements may be identified by the use of forward-looking
terms such as "believes," "expects," "may", "will," "should" or "anticipates" or
by  discussions of strategy that involve risks and  uncertainties.  From time to
time, we have made or may make forward-looking statements, orally or in writing.
These  forward-looking  statements include  statements  regarding our ability to
borrow funds from financial  institutions  or affiliates,  to engage in sales of
our securities,  our intention to repay certain  borrowings from future sales of
our securities,  the ability to expand capacity by placing in service additional
manufacturing  equipment during 2002, the ability to commercialize  our electron
beam imaging technologies and products,  our expected acquisition of business or
technologies,  our expectation  that shipments to  international  customers will
continue  to account  for a material  portion of net sales,  anticipated  future
revenues, sales, operations,  demand, technology,  products,  business ventures,
major  customers,  major  suppliers,  retention of key  officers,  management or
employees,   competition,   capital  expenditures,   credit  arrangements,   the
reorganization and/or recapitalization of Logical Imaging Solutions, our ability
to increase our toner  manufacturing  capacity following  completion of testing,
and other statements  regarding matters that are not historical  facts,  involve
predictions  which are based upon a number of future  conditions that ultimately


                                       15
<PAGE>

may prove to be inaccurate.  Our actual  results,  performance  or  achievements
could  differ  materially  from the results  expressed  in, or implied by, these
forward-looking  statements.  Forward-looking  statements  are made  based  upon
management's current expectations and beliefs concerning future developments and
their  potential  effects upon our business.  We cannot  predict  whether future
developments affecting us will be those anticipated by management, and there are
a number of factors that could adversely affect our future operating  results or
cause our actual results to differ materially from the estimates or expectations
reflected in such  forward-looking  statements,  including  without  limitation,
those  discussed  in the  sections  titled  "Color  Imaging"  and  "Management's
Discussion and Analysis" and the factors set forth below:

RISKS RELATED TO OUR BUSINESS:

We anticipate that we will need to raise additional capital or obtain funding to
finance certain of our planned operating activities over the next twelve months.

Our failure to raise  additional  capital in the approximate  amount of $500,000
may  significantly  limit our  ability  to  finance  certain  planned  operating
activities over the next twelve months that we believe will generate  additional
revenues and reduce manufacturing costs. Specifically, we will need to borrow or
raise  additional funds to meet the additional  planned  operating and investing
activities.  We may not be able to obtain  additional  financing at commercially
reasonable  rates,  or at all.  Our  failure to obtain  additional  funds  would
significantly limit or eliminate our ability to conduct the foregoing activities
or we may have to curtail or eliminate other  activities.  We anticipate that we
will  seek  additional  funding  through  the  public  or  private  sales of our
securities  and/or  through   commercial  or  private  financing   arrangements,
including  borrowing from  affiliates.  Adequate funds may not be available when
needed or on terms  acceptable  to us, or at all.  In the event  that we are not
able to obtain additional funding on a timely basis, we may be required to limit
any proposed operations, research and development or expansion.

Approximately  52% of our business depends on a supplier  approved by one of our
customers.

Some  of  our  products  incorporate  technologies  that  are  available  from a
particular   supplier  that  has  been   approved  by  one  of  our   customers.
Approximately  52% of our  sales for the six  months  ended  June 30,  2002 were
derived from products limited to a specific  supplier.  For the six months ended
June 30, 2002, we purchased 55% of our raw  materials,  components  and supplies
from that same  supplier.  We do not have a written  agreement  with this or any
other supplier.  We rely on purchase  orders.  Should we be unable to obtain the
necessary materials from this supplier,  product shipments could be prevented or
delayed,  which  could  result in a loss of sales.  If we are  unable to fulfill
existing orders or accept new orders because of a shortage of materials,  we may
lose revenues and risk losing customers.

Our business depends on a limited number of customers.

In the six months ended June 30, 2002, two customers accounted for approximately
70% of our net sales.  We do not have contracts with these  customers and all of
the sales to them are made through purchase orders. While our products typically
go through the customer's required qualification process, which we believe gives
us an advantage over other suppliers,  this does not guarantee that the customer
will continue to purchase from us. The loss of any of these customers, including
through an acquisition or other  business  combination  could have a substantial
and adverse effect on our business.  We have in the past, and may in the future,
lose one or more major  customers.  If we do not sell  products  or  services to
customers in the quantities  anticipated,  or if a major customer terminates its
relationship with us, market  perception of our products and technology,  growth
prospects, and financial condition and results of operation could be harmed.

Our success is dependent on our ability to successfully develop, or acquire from
third  parties,  products  that we can  commercialize  and that  achieve  market
acceptance.

The challenges we face in implementing  our business model include  establishing
market acceptance of existing products and services and successfully  developing
or  acquiring  new  product  lines  that  achieve  market  acceptance.  We  must
successfully commercialize the products that are currently being developed, such
as our DigitalColorPress, color and magnetic character recognition toner for new
digital  copiers and printers and continue to acquire from third parties  parts,


                                       16
<PAGE>

materials and finished product that can be integrated into finished  products or
sold as our products.  While we have  successfully  developed toners in the past
and are in the late  stages of  developing  and  testing  several new toners and
installing  our  first   DigitalColorPress   employing   electron  beam  imaging
technologies,  we have not  commercialized  many of the  toners  that are  under
development or fully commercialized the manufacturing of the  DigitalColorPress.
While we have in the past  acquired  from third  parties  materials and products
that we have been  successful in selling,  there can be no assurance that parts,
materials or products for new products will be available or will achieve  market
acceptance.  If we fail to  successfully  commercialize  products  we develop or
acquire  from  third  parties,  or if  these  products  fail to  achieve  market
acceptance,  our financial condition and results of operation would be seriously
harmed.

Our  success is  dependent  on our  ability to utilize  available  manufacturing
capacity.

From 1999 through 2000, we expanded our manufacturing  capacity by acquiring new
manufacturing  equipment and moving to a larger location.  We intend to continue
to expand  capacity  by placing in service  additional  manufacturing  equipment
during  2002.  To  fully  utilize  these  new  additions  to  the  factory,  new
formulations for toner have to be developed specifically for manufacture on this
new  equipment  or orders for  larger  quantities  of  existing  toners  must be
obtained. While we have been successful in developing formulas for new equipment
in the past and  increasing  sales of many of our existing toner  products,  our
continued  success  will be  dependent  on our  ability  to  develop  additional
formulations  or increase our sales from existing  formulations  and manufacture
the toners with the new equipment to achieve a reduction in production costs. We
cannot  assure  you  that  we  will  be  successful  in  developing  all  of the
formulations  needed in the future or that we will be able to manufacture  toner
at a lower production cost on a regular basis or that such products will achieve
market  acceptance.  If we are not  successful  in  increasing  the sales of our
manufactured  products,  or if our  existing  sales from  manufactured  products
declines, our business will be materially and adversely affected.

Our acquisition strategy may prove unsuccessful.

We intend to pursue  acquisitions of businesses or technologies  that management
believes  complement or expand the existing business.  Acquisitions of this type
involve a number of risks,  including the possibility that the operations of any
businesses that are acquired will be  unprofitable or that management  attention
will be diverted  from the  day-to-day  operation of the existing  business.  An
unsuccessful  acquisition  could reduce  profit  margins or  otherwise  harm our
financial   condition,   by,  for  example,   impairing  liquidity  and  causing
non-compliance with lending institution's  financial covenants. In addition, any
acquisition  could  result in a  dilutive  issuance  of equity  securities,  the
incurrence  of  debt or the  loss  of key  employees.  Certain  benefits  of any
acquisition may depend on the taking of one-time or recurring accounting charges
that may be material. We cannot predict whether any acquisition undertaken by us
will be successfully  completed or, if one or more  acquisitions  are completed,
whether the  acquired  assets  will  generate  sufficient  revenue to offset the
associated costs or other adverse effects.

Our success depends on our ability to develop or acquire  intellectual  property
rights.

Our success depends in part on our ability to develop proprietary toner formulas
and manufacturing processes, obtain patents, copyrights and trademarks, maintain
trade secret protection and operate without infringing the proprietary rights of
others.  Current or future claims of intellectual  property  infringement  could
prevent us from  obtaining  technology of others and could  otherwise  adversely
affect our operating results,  cash flows,  financial  position or business,  as
could expenses incurred enforcing intellectual property rights against others or
defending  against claims that our products  infringe the intellectual  property
rights of others.

Our intellectual property protection is limited.

While we have two patents and we are preparing an  application  for a third,  on
the whole we do not rely on patents to protect  our  proprietary  rights.  We do
rely on a combination of laws such as trade secrets and contractual restrictions
such as confidentiality  agreements to protect proprietary  rights.  Despite any
precautions we have taken:

     o    laws and contractual  restrictions  might not be sufficient to prevent
          misappropriation  of our  technology  or deter others from  developing
          similar technologies; and



                                       17
<PAGE>

     o    policing unauthorized use of our products is difficult,  expensive and
          time-consuming  and we might not be able to  determine  the  extent of
          this unauthorized use.

Therefore, there can be no assurance that we can meaningfully protect our rights
in such unpatented  proprietary technology or that others will not independently
develop substantially  equivalent proprietary products or processes or otherwise
gain access to the proprietary  technology.  Reverse  engineering,  unauthorized
copying or other  misappropriation  of our proprietary  technology  could enable
third  parties to benefit  from our  technology  without  paying us which  could
significantly harm our business.

Acts of domestic terrorism and war have impacted general economic conditions and
may impact the industry and our ability to operate profitably.

On  September  11,  2001,  acts of  terrorism  occurred  in New  York  City  and
Washington, D.C. On October 7, 2001, the United States launched military attacks
on  Afghanistan.  As a result of those terrorist acts and acts of war, there has
been a disruption in general economic activity. The demand for printing products
and services may decline as layoffs in the  transportation  and other industries
affect the economy as a whole.  There may be other  consequences  resulting from
those acts of terrorism, and any others which may occur in the future, including
civil  disturbance,  war,  riot,  epidemics,  public  demonstration,  explosion,
freight  embargoes,   governmental  action,  governmental  delay,  restraint  or
inaction,   quarantine  restrictions,   unavailability  of  capital,  equipment,
personnel, which we may not be able to anticipate. These terrorist acts and acts
of war may continue to cause a slowing of the economy,  and in turn,  reduce the
demand of printing products and services, which would harm our ability to make a
profit.  We are  unable  to  predict  the  long-term  impact,  if any,  of these
incidents or of any acts of war or  terrorism in the United  States or worldwide
on the U.S. economy, on us or on the price of our common stock.

We depend on the efforts and  abilities  of certain  officers  and  directors to
continue our operations and generate revenues.

Our success depends to a significant  extent on the continued services of senior
management and other key personnel. While we do have employment, non-compete and
confidentiality  agreements  with  executive  officers  and  certain  other  key
individuals, employment agreements may be terminated by either party upon giving
the required notice.  The loss of the services of any of our executive  officers
or other key employees could harm our business.  Our success also depends on our
ability to attract,  retain and motivate highly skilled  employees.  Competition
for qualified  employees in the industries in which we operate is intense. If we
fail to hire and retain a sufficient number of qualified employees, our business
will be adversely affected.

Compliance  with  government  regulations  may  cause  us  to  incur  unforeseen
expenses.

Our black text,  color and magnetic  character toner supplies and  manufacturing
operations  are  subject to domestic  and  international  laws and  regulations,
particularly  relating to environmental  matters that impose  limitations on the
discharge of pollutants into the air, water and soil and establish standards for
treatment,  storage and disposal of solid and hazardous wastes. In addition,  we
are subject to regulations  for storm water  discharge,  and as a requirement of
the State of Georgia have  developed  and  implemented  a Storm Water  Pollution
Prevention  Plan.  We are also  required to have a permit issued by the State of
Georgia in order to conduct  various  aspects of our business.  Compliance  with
these laws and regulations has not in the past had a material  adverse affect on
our capital  expenditures,  earnings or  competitive  position.  There can be no
assurance, however, that future changes in environmental laws or regulations, or
in the criteria required to obtain or maintain necessary permits,  will not have
a material adverse affect on our operations.

We sell a significant portion of our products internationally,  which exposes us
to currency fluctuations and collection and product recall risks.

We sell a  significant  amount of  product  to  customers  outside of the United
States.  International  sales  accounted  for 36% of net sales in the six months
ended June 30,  2002 and 18% in the six months  ended June 30,  2001.  We expect
that  shipments  to  international  customers  will  continue  to account  for a
material  portion of net sales.  Most products are priced in U.S.  dollars,  but
because we do sell products in Europe denominated in Euros,  fluctuations in the
Euro could also  cause our  products  there to become  less  affordable  or less
competitive  or we may  sell  some  products  at a loss  to  otherwise  maintain


                                       18
<PAGE>

profitable business from a customer.  Most of our products sold  internationally
are on open  account,  giving rise to the added costs of collection in the event
of non-payment.  Further, should a product shipped overseas be defective,  Color
Imaging would  experience  higher costs in connection  with a product  recall or
return and replacement.  We cannot assure you that these factors will not have a
material  adverse effect on our  international  sales and would,  as the result,
adversely impact our results of operation and financial condition.

Our quarterly operating results fluctuate as a result of many factors.

Our quarterly operating results fluctuate due to various factors.  Some of these
factors  include the mix of products sold during the quarter,  the  availability
and costs of raw materials or components,  the costs and benefits of new product
introductions, and customer order and shipment timing. Because of these factors,
our quarterly  operating results are difficult to predict and are likely to vary
in the future.

RISKS RELATING TO OUR INDUSTRY:

We operate in a competitive and rapidly changing marketplace.

There is significant  competition in the toner,  consumable imaging products and
color printing systems industries in which we operate.  In addition,  the market
for digital  color  printers  and copiers  and  related  consumable  products is
subject  to rapid  change and the OEM  technologies  are  becoming  increasingly
difficult barriers to market entry. Many competitors,  both OEMs and other after
market firms, have longer operating  histories,  larger customer bases,  greater
brand  recognition  and  significantly  greater  financial,  marketing and other
resources than we do. These competitors may be able to devote substantially more
resources  to  developing  their  business  than we can.  Our ability to compete
depends  upon a number of factors,  including  the success and timing of product
introductions,  marketing and  distribution  capabilities and the quality of our
customer  support.  Some of these  factors are beyond our control.  In addition,
competitive  pressure to develop new products and  technologies  could cause our
operating expenses to increase substantially.

Our  products  have  short  life  cycles  and  are  subject  to  frequent  price
reductions.

The  markets in which we operate  are  characterized  by  rapidly  evolving  and
increasingly  difficult  technologies,  frequent new product  introductions  and
significant  price  competition.  Consequently,  our  products  have  short life
cycles, and we must frequently reduce prices in response to product competition.
Our financial condition and results of operations could be adversely affected if
we are unable to manufacture  new and  competitive  products in a timely manner.
Our success  depends on our ability to develop and  manufacture  technologically
advanced  products,  price them  competitively,  and achieve cost reductions for
existing  products.   Technological  advances  require  sustained  research  and
development efforts,  which may be costly and could cause our operating expenses
to increase substantially.

Our  financial  performance  depends  on  our  ability  to  successfully  manage
inventory levels, which is affected by factors beyond our control.

Our  financial  performance  depends in part on our ability to manage  inventory
levels to  support  the needs of new and  existing  customers.  Our  ability  to
maintain  appropriate  inventory  levels  depends on factors beyond our control,
including  unforeseen  increases  or  decreases  in demand for our  products and
production and supply  difficulties.  Demand for our products can be affected by
product  introductions  or price changes by competitors or by us, the life cycle
of our products,  or delays in the development or manufacturing of our products.
Our  operating  results and ability to increase the market share of our products
may be  adversely  affected  if we are unable to address  inventory  issues on a
timely basis.

RISKS RELATING TO OWNING OUR COMMON STOCK:

Our officers,  directors and principal stockholders own approximately 58% of the
outstanding  shares of common stock and they and our affiliates  will be allowed
to purchase up to $7 million of our common  stock in our  offering  pending with
the SEC on Form SB-2,  allowing these  stockholders to control matters requiring
approval of the stockholders.



                                       19
<PAGE>

As a result of such ownership our officers,  directors,  principal  stockholders
and affiliates, other investors will have limited control over matters requiring
approval  by  the  stockholders,  including  the  election  of  directors.  Such
concentrated  control may also make it difficult for the stockholders to receive
a  premium  for  their  shares of our  common  stock in the event we enter  into
transactions that require stockholder approval. In addition,  certain provisions
of  Delaware  law could  have the  effect of  making it more  difficult  or more
expensive for a third party to acquire,  or of  discouraging  a third party from
attempting to acquire control of us.

Exercise of warrants and options  will dilute  existing  stockholders  and could
decrease the market price of our common stock.

As of July 30, 2002, we had issued and outstanding  10,099,880  shares of common
stock and  outstanding  warrants  and options to purchase  2,416,312  additional
shares of common stock. The existence of the remaining  warrants and options may
adversely  affect the market price of our common stock and the terms under which
we obtain additional equity capital.

Our ability to raise  additional  capital through the sale of our securities may
be harmed by competing resales of our common stock by our stockholders.

The price of our  common  stock  could  fall if  stockholders  sell  substantial
amounts of our common stock.  Such sales could make it more  difficult for us to
sell  securities  at the  time  and  price we deem  appropriate.  To the  extent
stockholders,  including  the selling  stockholders  set forth in our Form SB-2,
offer and sell their shares of common stock to investors for less than the price
offered by us, our attempt to sell our securities may be adversely affected as a
result  of the  concurrent  offering  by  selling  stockholders.  Investors  may
negotiate prices lower than the price we are offering our shares of common stock
with  selling  stockholders.   Furthermore,   potential  investors  may  not  be
interested in purchasing shares of our common stock on any terms if stockholders
sell substantial amounts of our common stock.

Effectiveness  of our  registration  statement  on Form  SB-2 may  result in the
dilution of existing  stockholders  and could  decrease  the market price of our
common stock.

Once our registration statement is declared effective, selling stockholders will
be able to sell up to  approximately 4 million shares of our common stock and we
will be able to sell the  equivalent  of up to 7 million  shares  of our  common
stock. The sale of common stock covered by the  registration  statement by us or
selling stockholders will dilute existing  stockholders and may adversely affect
the market price of our common stock.

Our common stock is listed on the  Over-The-Counter  Bulletin  Board,  which may
make it more difficult for  stockholders  to sell their shares and may cause the
market price of our common stock to decrease.

Because our common stock is listed on the Over-The-Counter (OTC) Bulletin Board,
the liquidity of our common stock is impaired,  not only in the number of shares
that are bought and sold, but also through delays in the timing of transactions,
and limited coverage by security  analysts and the news media, if any, of us. As
a  result,  prices  for  shares of our  common  stock  may be lower  than  might
otherwise  prevail  if our  common  stock was  traded  on  NASDAQ or a  national
securities exchange, like the American Stock Exchange.

Our stock  price may be volatile  and an  investment  in our common  stock could
suffer a decline in value.

The market price of our common stock may fluctuate  significantly in response to
a number of  factors,  some of which  are  beyond  our  control.  These  factors
include:

     o    progress of our products through development and marketing;

     o    announcements  of  technological  innovations or new products by us or
          our competitors;

     o    government  regulatory  action  affecting our products or competitors'
          products in both the United States and foreign countries;



                                       20
<PAGE>

     o    developments or disputes concerning patent or proprietary rights;

     o    actual or anticipated fluctuations in our operating results;

     o    the loss of key management or technical personnel;

     o    the loss of major customers or suppliers;

     o    the outcome of any future litigation;

     o    changes in our financial estimates by securities analysts;

     o    fluctuations in currency exchange rates;

     o    general  market   conditions   for  emerging   growth  and  technology
          companies;

     o    broad market fluctuations;

     o    recovery from natural disasters; and

     o    economic conditions in the United States or abroad.

Our charter  documents  and  Delaware  Law may have the effect of making it more
expensive or more difficult for a third party to acquire, or to acquire control,
of us.

Our certificate of incorporation makes it possible for our Board of Directors to
issue  preferred stock with voting or other rights that could impede the success
of any attempt to change  control of us. Our  certificate of  incorporation  and
bylaws  eliminate  cumulative  voting  which  may make it more  difficult  for a
minority  stockholder  to gain a seat on our Board of Directors and to influence
Board of  Directors'  decision  regarding a takeover.  Delaware Law  prohibits a
publicly  held   Delaware   corporation   from  engaging  in  certain   business
combinations with certain persons, who acquire our securities with the intent of
engaging in a business combination,  unless the proposed transaction is approved
in  a  prescribed  manner.   This  provision  has  the  effect  of  discouraging
transactions  not  approved by our Board of Directors as required by the statute
which may discourage  third parties from  attempting to acquire us or to acquire
control of us even if the attempt  would  result in a premium  over market price
for the shares of common stock held by our stockholders.

The  information  referred  to above  should be  considered  by  investors  when
reviewing any forward-looking statements contained in this report, in any of our
public filings or press releases or in any oral  statements made by us or any of
our officers or other persons acting on our behalf.  The important  factors that
could affect  forward-looking  statements are subject to change, and we disclaim
any obligation or duty to update or modify these forward-looking statements.




                                       21
<PAGE>


PART II: OTHER INFORMATION

ITEM 1. Legal Proceedings

None.

ITEM 2 -CHANGES IN SECURITIES

None.

ITEM 3. Defaults upon Senior Securities

None

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

(a) The Registrant held its Annual Meeting of Stockholders on June 10, 2002. The
following proposals were adopted by the votes indicated.

(b) Ten directors  were elected at the Annual  Meeting to serve until the Annual
Meeting of  Stockholders in 2003. The names of these Directors and votes cast in
favor of their election and shares withheld are as follows:


          NAME                  VOTES FOR          % FOR          VOTES WITHHELD
          ----                  ---------          -----          --------------
    Michael W. Brennan         5,912,921            73.3            2,149,399
    Sueling Wang, Phd          8,052,838            99.9                9,482
    Morris E. Van Asperen      8,062,080            99.9                  240
    Charles R. Allison         8,062,080            99.9                  240
    Edwin C. St. Amour         8,062,080            99.9                  240
    Robert L. Langsam          8,062,080            99.9                  240
    Jui-Chi Wang               8,062,080            99.9                  240
    Jui-Hung Wang              8,062,080            99.9                  240
    Jui-Kung Wang              8,062,080            99.9                  240
    Victor A. Hollander        8,062,080            99.9                  240

(c) The selection of Lazar Levine & Felix,  LLP as our  independent  accountants
for the year ending  December 31, 2002 was ratified by 8,062,080  votes for with
240 votes withheld.

(d) The  stockholders,  by a vote of 5,990,981 for and 1,147,124 votes withheld,
approved  the  increase  in the  authorized  shares  of our  common  stock  from
20,000,000 to 30,000,000.

ITEM 5. Other Information

None.

ITEM 6 -EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS


Exhibit No.                Description

2.1         Merger Agreement and Plan of  Reorganization  dated May 16, 2000, by
            and between Advatex  Associates,  Inc.,  Logical  Imaging  Solutions
            Acquisition Corp., Color Imaging Acquisition Corp.,  Logical Imaging
            Solutions, Inc., and Color Image,Inc. (incorporated  by reference to
            the Registrant's Form 8-K filed on July 17, 2000).
2.2         Amendment No. 1 to the Merger  Agreement and Plan of  Reorganization
            dated June 15, 2000 (incorporated  by reference to the  Registrant's
            Form 8-K filed on July 17, 2000).
2.3         Amendment No. 2 to the Merger  Agreement and Plan of  Reorganization
            dated June 26, 2000 (incorporated  by reference to the  Registrant's
            Form 8-K filed on July 17, 2000).
3.1         Certificate of  Incorporation  (incorporated by reference to Exhibit
            3.1 to the Registrant's Form SB-2 filed July 15, 2002).
3.2         Bylaws  (incorporated by reference to the  Registrant's  Form 10-QSB
            for the quarter ended March 31, 2002).
4.1         Stock  Purchase  Agreement  between  the  Company  and  Wall  Street
            Consulting Corp.  dated October 30, 2001  (incorporated by reference
            to Exhibit 4.1 to the Registrant's Form SB-2 filed July 15, 2002).
4.2         Promissory Note of Wall Street  Consulting  Corp.  dated October 30,
            2001  (incorporated  by reference to Exhibit 4.2 to the Registrant's
            Form SB-2 filed July 15, 2002).
4.3         Form of Warrant  issued to  Selling  Stockholders  (incorporated  by
            reference  to Exhibit 4.3 to the  Registrant's  Form SB-2 filed July
            15, 2002).


                                       22
<PAGE>

Exhibit No.                Description

4.4         Loan and Security  Agreement  between Color  Imaging and  Southtrust
            Bank dated May 5, 2000  (incorporated by reference to Exhibit 4.4 to
            the Registrant's Form SB-2 filed July 15, 2002).
4.5         Amendment of Loan  Documents  between Color  Imaging and  SouthTrust
            Bank dated August 30, 2000 (incorporated by reference to Exhibit 4.5
            to the Registrant's Form SB-2 filed July 15, 2002).
4.6         Second  Amendment  of  Loan  Documents  between  Color  Imaging  and
            SouthTrust Bank dated November 30, 2000  (incorporated  by reference
            to Exhibit 4.6 to the Registrant's Form SB-2 filed July 15, 2002).
4.7         Third  Amendment  of  Loan  Documents   between  Color  Imaging  and
            SouthTrust  Bank dated June 30, 2001  (incorporated  by reference to
            Exhibit 4.7 to the Registrant's Form SB-2 filed July 15, 2002).
4.8         Fourth  Amendment  of  Loan  Documents  between  Color  Imaging  and
            SouthTrust Bank dated November 1, 2001 (incorporated by reference to
            Exhibit 4.8 to the Registrant's Form SB-2 filed July 15, 2002).
4.9         Fifth  Amendment  of  Loan  Documents   between  Color  Imaging  and
            SouthTrust Bank dated December 31, 2001  (incorporated  by reference
            to Exhibit 4.9 to the Registrant's Form SB-2 filed July 15, 2002).
4.10        Sixth  Amendment  of  Loan  Documents   between  Color  Imaging  and
            Southtrust Bank dated February 7, 2002 (incorporated by reference to
            Exhibit 4.10 to the Registrant's Form SB-2 filed July 15, 2002).
4.11        $500,000 Line of Credit  Promissory  Note issued to Southtrust  Bank
            dated May 5, 2000  (incorporated by reference to Exhibit 4.11 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.12        $500,000 Amended and Restated Line of Credit  Promissory Note issued
            to Southtrust Bank dated August 30, 2000  (incorporated by reference
            to Exhibit 4.12 to the Registrant's Form SB-2 filed July 15, 2002).
4.13        $500,000  Revolving Note  Modification  Agreement dated November 30,
            2000  (incorporated by reference to Exhibit 4.13 to the Registrant's
            Form SB-2 filed July 15, 2002).
4.14        $500,000 Second Revolving Note Modification  Agreement dated July 5,
            2001  (incorporated by reference to Exhibit 4.14 to the Registrant's
            Form SB-2 filed July 15, 2002).
4.15        $1,500,000  Revolving Note between Color Imaging and SouthTrust Bank
            dated June 24, 1999  (incorporated  by  reference to Exhibit 4.15 to
            the Registrant's Form SB-2 filed July 15, 2002).
4.16        $1,500,000  Revolving  Note  Modification  Agreement  between  Color
            Imaging  and  SouthTrust  Bank  dated May 5, 2000  (incorporated  by
            reference to Exhibit 4.16 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.17        $1,500,000  Second  Revolving Note  Modification  Agreement  between
            Color   Imaging   and   SouthTrust   Bank  dated   August  30,  2000
            (incorporated by reference to Exhibit 4.17 to the Registrant's  Form
            SB-2 filed July 15, 2002).
4.18        $1,500,000 Third Revolving Note Modification Agreement between Color
            Imaging and SouthTrust Bank dated November 30, 2000 (incorporated by
            reference to Exhibit 4.18 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.19        $1,500,000  Fourth  Revolving Note  Modification  Agreement  between
            Color Imaging and SouthTrust  Bank dated July 5, 2001  (incorporated
            by  reference to Exhibit  4.19 to the  Registrant's  Form SB-2 filed
            July 15, 2002).
4.20        $2,500,000 Fifth Revolving Note Modification Agreement between Color
            Imaging and SouthTrust Bank dated December 31, 2001 (incorporated by
            reference to Exhibit 4.20 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.21        $1,752,000  Installment  Note between Color  Imaging and  SouthTrust
            Bank dated June 24, 1999  (incorporated by reference to Exhibit 4.21
            to the Registrant's Form SB-2 filed July 15, 2002).
4.22        $1,752,000 Term Loan Documents  Modification Agreement between Color
            Imaging and SouthTrust Bank dated August 30, 2000  (incorporated  by
            reference to Exhibit 4.22 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.23        SouthTrust Bank waiver letter dated March 26, 2001  (incorporated by
            reference to Exhibit 4.23 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.24        SouthTrust  Bank waiver  letter dated May 8, 2001  (incorporated  by
            reference to Exhibit 4.24 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.25        SouthTrust Bank waiver letter dated August 13, 2001 (incorporated by
            reference to Exhibit 4.25 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.26        SouthTrust  Bank waiver letter dated October 31, 2001  (incorporated
            by  reference to Exhibit  4.26 to the  Registrant's  Form SB-2 filed
            July 15, 2002).
4.27        Development   Authority  of  Gwinnett  County,   Georgia  Industrial
            Development  Trust  Indenture  dated June 1, 1999  (incorporated  by
            reference to Exhibit 4.27 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.28        Loan  Agreement  between the  Company,  Kings  Brothers  LLC and the
            Development Authority of Gwinnett County, Georgia dated June 1, 1999
            (incorporated by reference to Exhibit 4.28 to the Registrant's  Form
            SB-2 filed July 15, 2002).
4.29        Joint Debtor Agreement dated June 28, 2000 by and among Color Image,
            Inc., Kings Brothers,  LLC, Dr. Sueling Wang, Jui-Chi Wang, Jui-Kung
            Wang, and Jui-Hung Wang  (incorporated  by reference to Exhibit 4.29
            to the Registrant's Form SB-2 filed July 15, 2002).
4.30        First  Amendment to Joint Debtor  Agreement dated January 1, 2001 by
            and among Color  Imaging,  Kings  Brothers,  LLC, Dr.  Sueling Wang,
            Jui-Chi Wang,  Jui-Kung  Wang,  and Jui-Hung Wang  (incorporated  by
            reference to Exhibit 4.30 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.31        Master Security Agreement between Color Imaging and General Electric
            Capital   Corporation  dated  November  30,  2000  (incorporated  by
            reference to Exhibit 4.31 to the  Registrant's  Form SB-2 filed July
            15, 2002).
4.32        Promissory Note issued to General Electric Capital Corporation dated
            November 30, 2000  (incorporated by reference to Exhibit 4.32 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.33        $200,000  Promissory  Note between Color Imaging and Kings  Brothers
            LLC dated  November 19, 2001  (incorporated  by reference to Exhibit
            4.33 to the Registrant's Form SB-2 filed July 15, 2002).
4.34        $500,000  Promissory  Note  between  Color  Imaging and Sueling Wang
            dated March 14, 2002  (incorporated  by reference to Exhibit 4.34 to
            the Registrant's Form SB-2 filed July 15, 2002).
4.35        $240,000  Promissory  Note between Color Imaging and Kings  Brothers
            LLC dated July 6, 2000 (incorporated by reference to Exhibit 4.35 to
            the Registrant's Form SB-2 filed July 15, 2002).
4.36        $50,000  Promissory  Note  between the Company and Daniel Wang dated
            October 23, 1998  (incorporated  by reference to Exhibit 4.36 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.37        $112,000 Promissory Note between Color Imaging and Daniel Wang dated
            October 16, 1998  (incorporated  by reference to Exhibit 4.37 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.38        $90,000 Promissory Note between Color Imaging and Michael Wang dated
            June 4, 1999  (incorporated  by  reference  to  Exhibit  4.38 to the
            Registrant's Form SB-2 filed July 15, 2002).


                                       23
<PAGE>


Exhibit No.                Description

4.39        $150,000 Promissory Note between Color Imaging and AccuRec LLC dated
            February 3, 2000  (incorporated  by reference to Exhibit 4.39 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.40        $200,000 Promissory Note between Color Imaging and AccuRec LLC dated
            March 7, 2000  (incorporated  by  reference  to Exhibit  4.40 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.41        $200,000 Promissory Note between Color Imaging and AccuRec LLC dated
            April 10, 2000  (incorporated  by  reference  to Exhibit 4.41 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.42        $200,000 Promissory Note between Color Imaging and AccuRec LLC dated
            May 2,  2000  (incorporated  by  reference  to  Exhibit  4.42 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.43        $500,000 Promissory Note between Color Imaging and AccuRec LLC dated
            July 5, 2000  (incorporated  by  reference  to  Exhibit  4.43 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.44        $200,000 Promissory Note between Color Imaging and AccuRec LLC dated
            September 14, 2000 (incorporated by reference to Exhibit 4.44 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.45        $200,000 Promissory Note between Color Imaging and AccuRec LLC dated
            October 4, 2000  (incorporated  by  reference to Exhibit 4.45 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.46        $200,000 Promissory Note between Color Imaging and AccuRec LLC dated
            November 3, 2000  (incorporated  by reference to Exhibit 4.46 to the
            Registrant's Form SB-2 filed July 15, 2002).
4.47        Seventh  Amendment  of Loan  Documents  between  Color  Imaging  and
            SouthTrust  Bank dated June 28, 2002  (incorporated  by reference to
            Exhibit 4.47 to the Registrant's Form SB-2 filed July 15, 2002).
4.48        $2,500,000 Sixth Revolving Note Modification Agreement between Color
            Imaging and SouthTrust  Bank  (incorporated  by reference to Exhibit
            4.48 to the Registrant's Form SB-2 filed July 15, 2002).
10.1        Employment  Agreement  between  Color Imaging and Michael W. Brennan
            dated June 28, 2000  (incorporated  by  reference to Exhibit 10.1 to
            the Registrant's Form SB-2 filed July 15, 2002).
10.2        Employment  Agreement  between  Color  Imaging and Dr.  Sueling Wang
            dated June 28, 2000  (incorporated  by  reference to Exhibit 10.2 to
            the Registrant's Form SB-2 filed July 15, 2002).
10.3        Employment  Agreement  between the Company and Morris E. Van Asperen
            dated June 28, 2000  (incorporated  by  reference to Exhibit 10.3 to
            the Registrant's Form SB-2 filed July 15, 2002).
10.4        Employment  Agreement  between  Color Imaging and Charles R. Allison
            dated June 30, 2000  (incorporated  by  reference to Exhibit 10.4 to
            the Registrant's Form SB-2 filed July 15, 2002).
10.5        Lease  Agreement  between Color Imaging and Kings Brothers LLC dated
            April 1, 1999  (incorporated  by  reference  to Exhibit  10.5 to the
            Registrant's Form SB-2 filed July 15, 2002).
10.6        Amendment  No. 1 to Lease  Agreement  between  the Company and Kings
            Brothers  LLC dated  April 1, 1999  (incorporated  by  reference  to
            Exhibit 10.6 to the Registrant's Form SB-2 filed July 15, 2002).
10.7*       Letter of Amendment to  Employment  Agreement  between Color Imaging
            and Michael W. Brennan dated June 10, 2002.
99.1        Report of Grant  Thornton  LLP for the  Company's  fiscal year ended
            December 31, 1999  (incorporated by reference to Exhibit 99.1 to the
            Registrant's Form SB-2 filed July 15, 2002).
99.2        Rescission  Agreement  between  Joe  Daley & Sons,  Inc.  and  Color
            Imaging dated March 20, 2002  (incorporated  by reference to Exhibit
            99.2 to the Registrant's Form SB-2 filed July 15, 2002).
99.3        Rescission  Agreement  between Wall Street  Consulting Corp. and the
            Company dated March 19, 2002  (incorporated  by reference to Exhibit
            99.3 to the Registrant's Form SB-2 filed July 15, 2002).

______________
*  Filed herewith.

(b) REPORTS ON FORM 8-K

None.


                                       24
<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.

                                       COLOR IMAGING, INC.


                                       /S/ SUELING WANG
                                       ------------------------------------
August 6, 2002                         Sueling Wang, PhD
                                       President (principal executive officer)



                                       /S/ MORRIS E. VAN ASPEREN
                                       ------------------------------------
                                       Morris E. Van Asperen
                                       Executive Vice President and
                                       Chief Financial Officer



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