[CONFORMED COPY]

                            FORM 10-QSB

                   SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

              Quarterly Report under Section 13 or 15(d)
               of the Securities Exchange Act of 1934

For Quarter Ended:       September 30, 2003
Commission File Number:	 0-4728

                 ARROW-MAGNOLIA INTERNATIONAL, INC.

 (Exact name of small business issuer as specified in its charter)

                               Texas

  (State or other jurisdiction of incorporation or organization)

                             75-0408335

               (I.R.S. Employer Identification No.)

               2646 Rodney Lane, Dallas, Texas 75229

              (Address of principal executive offices)

                         (972) 247-7111

          (Issuer's telephone number, including area code)

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

                              X
                             ---           ---
                             Yes           No

Number of common shares outstanding as of September 30, 2003:

          Common Stock, $0.10 par value, 3,376,975 shares

<PAGE>


                    ARROW-MAGNOLIA INTERNATIONAL, INC.
                              September 30, 2003

                           TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION.


Item 1.  	Financial Statements                          Page

     Arrow-Magnolia International, Inc.
     Condensed Balance Sheets as of September 30, 2003
     (unaudited) and December 31, 2002.			         3

     Arrow-Magnolia International, Inc.
     Condensed Statements of Income for the Nine and Three
     Month Periods Ended September 30, 2003 and 2002
     (unaudited).			                         4

     Arrow-Magnolia International, Inc.
     Condensed Statements of Cash Flows for the Nine
     Month Periods Ended September 30, 2003 and 2002
     (unaudited).				                 5

     Notes to Condensed Financial Statements (unaudited).        6

Item 2.	Management's Discussion and Analysis or
        Plan of Operation.                                       7

Item 3. Controls and Procedures                                  8



                PART II.  OTHER INFORMATION.


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

Signatures                                                       8

Certifications Pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002                                                8

<PAGE>
                    ARROW-MAGNOLIA INTERNATIONAL, INC.
                        CONDENSED BALANCE SHEETS
                 SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
<TABLE>
                                      September 30,   December 31,
                                          2003            2002
                                       -----------    -----------
                                       (unaudited)
<S>                                      <C>             <C>
Assets
Current assets:

   Cash and cash equivalents            $2,250,078     $1,867,281
   Short-term investments                  200,000        200,000
   Trade accounts receivable, less
     allowance for doubtful
     accounts of $442,720 in 2003 and
     $447,108 in 2002                    2,510,778      2,871,484
   Inventories                             922,136        796,014
   Prepaid income taxes                    300,343        322,932
   Deferred income taxes                   247,900        246,900
   Other assets                            245,741        168,587
                                       -----------    -----------
        Total current assets            $6,676,976     $6,473,198

Property and equipment - cost            5,327,402      5,052,873
Accumulated depreciation                (2,283,571)    (2,047,349)
Intangible assets, net                     113,035        113,035
Other assets, at cost                          850            850
                                       -----------    -----------
        Total assets                    $9,834,692     $9,592,607
                                       ===========    ===========
        Liabilities and stockholders' equity

Current liabilities:

   Accounts payable                       $825,241       $532,528
   Accrued liabilities                     158,937        156,695
   Accrued sales tax                       185,112        172,568
                                       -----------    -----------
        Total current liabilities       $1,169,290       $861,791

Environmental remediation liability        111,179        132,100
Deferred income taxes                      174,500        161,300
Deferred compensation                      104,500        104,500
                                       -----------    -----------
        Total liabilities               $1,559,469     $1,259,691
                                       -----------    -----------
Stockholders' equity:
   Preferred stock - par value $.10;
     authorized 500,000 shares; none
     issued                             $        -     $        -
   Common stock - par value $.10;
     authorized 10,000,000 shares;
     issued 3,376,975 and 3,262,066
     shares in 2003 and 2002,
     respectively                          337,696        326,207
   Additional paid-in capital            5,684,457      5,618,589
   Retained earnings                     2,314,538      2,449,588
   Less cost of 13,500 shares of common
     stock in treasury                     (61,468)       (61,468)
                                       -----------     ----------
       Total stockholders' equity       $8,275,223     $8,332,916
                                       -----------     ----------
       Total liabilities and
         stockholders' equity           $9,834,692     $9,592,607
                                       ===========     ==========
</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>
                 ARROW-MAGNOLIA INTERNATIONAL, INC.
                  CONDENSED STATEMENTS OF INCOME
   FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
<TABLE>
                      Nine months ended       Three months ended
                        September 30,            September 30,
                   ----------------------  -----------------------
                      2003        2002        2003        2002
                   (unaudited) (unaudited) (unaudited) (unaudited)
                   ----------  ----------  ----------  ----------
<S>                 <C>         <C>           <C>        <C>
Net sales          $9,684,060 $10,927,465  $3,237,813  $3,586,367
Cost of sales       5,711,200   6,163,410   2,068,549   2,026,574
                   ----------  ----------  ----------  ----------
  Gross profit     $3,972,860  $4,764,055  $1,169,264  $1,559,793

General and
  administrative
  expenses          3,433,108   3,835,818   1,048,578   1,204,544
Bad debt expense      763,120     220,484      95,000      92,365
                   ----------  ----------  ----------  ----------
Income (loss)
before other
income (expense)    $(223,368)   $707,753     $25,686    $262,884
                   ----------  ----------  ----------  ----------
Other income (expense)
 Interest expense    $ (8,902)   $      -    $      -    $      -
 Interest income        9,720      21,790       3,490       7,077
 Other income             500      24,000           (3)     3,000
                   ----------  ----------  ----------  ----------
 Total other
 income (expense)    $  1,318     $45,790      $3,487    $ 10,077
                   ----------  ----------  ----------  ----------
Income (loss) before
  income taxes      $(222,050)   $753,543     $29,173    $272,961
                   ----------  ----------   ---------  ----------
Provision for income
  taxes:
   Current           $(99,200)   $177,500     $(1,700)   $ 82,400
   Deferred (benefit)  12,200    $112,500       2,900      42,000
                   ----------  ----------  ----------  ----------
                     $(87,000)   $290,000      $1,200    $124,400
                   ----------  ----------  ----------  ----------
Net income (loss)   $(135,050)   $463,543     $27,973    $148,561
                   ==========  ==========  ==========  ==========
Earnings (loss) per
common share:
   Basic               $(0.04)      $0.14       $0.01       $0.05
                   ==========  ==========  ==========  ==========
   Diluted              n/a         $0.13       $0.01       $0.04
                   ==========  ==========  ==========  ==========
Weighted average common
   shares outstanding:
   Basic            3,295,287   3,248,566    3,363,475   3,248,566
                   ==========  ==========   ==========  ==========
   Diluted              n/a     3,600,193    3,618,420   3,597,111
                   ==========  ==========   ==========  ==========
</TABLE>
See accompanying notes to condensed financial statements.

                      ARROW-MAGNOLIA INTERNATIONAL, INC.
                      CONDENSED STATEMENTS OF CASH FLOWS
     FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2003 AND 2002
<TABLE>
                                       2003             2002
                                     -----------      -----------
                                     (unaudited)      (unaudited)
<S>                                     <C>               <C>
Cash flows from operating activities:

   Net income                          $(135,050)        $463,543

   Adjustments to reconcile net
      income (loss) to net cash
      provided (used) by operating
      activities:
    Depreciation and amortization        368,723          285,195
    Deferred income taxes                 12,200          112,500
    Provision for doubtful accounts       (4,388)         (59,275)
    Gain on sale of assets                  (500)               -
    Tax benefit of exercised options       77,357               -

   Changes in operating assets and
      liabilities:
      Receivables                        365,094         (610,184)
      Inventories                       (126,122)           4,108
      Prepaid income taxes                22,589          219,350
      Other assets                       (77,154)         (70,362)
      Accounts payable                   292,713          103,918
      Accrued expenses                    14,786         (119,084)
      Environmental remediation liability(20,921)               -
      Income taxes payable                     -           19,158
                                      ----------      -----------
         Net cash (used) provided by
           operating activities        $ 789,327        $ 348,867
                                      ----------      -----------
Cash flows from investing activities:

   Change in notes and other assets            -           21,625
   Proceeds from sale of assets              500                -
   Acquisition of property and
     equipment                          (407,030)        (427,043)
                                      ----------      -----------
         Net cash (used) by
            investing activities       $(406,530)        (405,418)
                                      ----------      -----------
Net increase (decrease) in cash and
  cash equivalents                     $ 382,797          (56,551)

Cash and cash equivalents:

   Beginning of period                 1,867,281        2,323,499
                                      ----------       ----------
   End of period                      $2,250,078       $2,266,948
                                      ==========       ==========
</TABLE>
See accompanying notes to condensed financial statements.

<PAGE>



                ARROW-MAGNOLIA INTERNATIONAL, INC.
             NOTES TO CONDENSED FINANCIAL STATEMENTS
                           (Unaudited)

(1)  Basis of presentation

The quarterly financial information included herein is unaudited;
however, such information reflects all adjustments (consisting
solely of normal recurring adjustments) which are, in the opinion
of management, necessary for a fair statement of results for the
interim period.

Certain amounts in the 2002 financial statements have been
reclassified to conform with the 2003 financial statement
presentation.  The reclassifications had no effect on net income.

(2)  Earnings per share

The Company adopted the provisions of Statement of Financial
Accounting Standards (SFAS) No. 128, Earnings Per Share, during
1997 and retroactively restated all per share amounts. SFAS No.
128 reporting requirements replace primary and fully-diluted
earnings per share (EPS) with basic and diluted EPS.  Basic EPS
is calculated by dividing net income (available to common
stockholders) by the weighted average number of common shares
outstanding for the period.  Diluted EPS reflects the potential
dilution that could occur if securities or other contracts to
issue common stock were exercised or converted into common stock.

Since the Company incurred a loss from operations for the nine
months ended September 30, 2003, no computation of diluted EPS
has been performed for that period.

(3)  Environmental remediation

The Company has engaged URS Group, Inc. ("URS") as the
environmental consultant to review the nature and extent of any
contamination by regulated chemicals released from the Company's
property. In September 2002, URS issued a draft Affected Property
Assessment Report that partially defined the extent of migration
of contaminants on Arrow's property and adjoining properties. The
draft assessment report was submitted to and later approved by
the Texas Commission on Environmental Quality ("TCEQ") under the
Voluntary Cleanup Program ("VCP"). The stipulations of the draft
required the Company to conduct more extensive environmental
studies and to report the findings to the TCEQ.  In addition, the
Company has agreed to produce recommendations for the cleanup,
should any cleanup be necessary based on the ongoing
investigations.  The Company plans to continue investigating
the contamination, after which time, the Company believes it
should be able to more reasonably estimate the potential costs
of the environmental remediation.

The Company has expended $20,921 during the nine months ended
September 30, 2003, and has expended $138,821 since December 31,
2000, on this matter; these amounts have been charged against the
$250,000 reserve established previously.

<Page>

(4)   Pro forma information related to stock options

The Company accounts for its stock-based employee compensation
plans under the recognition and measurement principles of APB
Opinion No. 25, Accounting for Stock Issued to Employees, and
related Interpretations.  No stock based employee compensation
cost is reflected in net income, as all options granted under
those plans had an exercise price equal to the market of the
underlying common stock on the date of grant.  The following
table illustrates the effect on net income and earnings per
share if the company had applied the fair value recognition
provisions of FASB Statement No. 123, Accounting for Stock-
Based Compensation, to stock-based employee compensation.

		           Nine Months Ended   Three Months Ended
		             September 30,        September 30,
                           -----------------   ------------------
		           2003       2002      2003       2002
                       ----------  ---------  --------  ---------
Net earnings (loss),
  as reported          $(135,050)   $463,543  $ 27,973   $148,561

Deduct: Total stock-based
  employee compensation
  expense determined under
  fair value based method
  for all awards, net
  of tax effect          (19,551)   (18,996)    (6,517)    (6,332)
                       ----------  ---------  ---------  ---------
Pro forma net
  income (loss)         $(154,601)  $444,547   $ 21,456   $142,229
                       ==========  =========  =========  =========

Earnings (loss) per
  common share:
 Basic-as reported      $   (0.04)  $  0.14    $   0.01   $   0.05
                       ==========  =========  =========  =========
 Basic-pro forma        $   (0.05)  $  0.14    $   0.01   $   0.04
                       ==========  =========  =========  =========
 Diluted-as reported        n/a     $  0.13    $   0.01   $   0.04
                       ==========  =========  =========  =========
 Diluted-pro forma          n/a     $  0.12    $   0.01   $   0.04
                       ==========  =========  =========  =========

<Page>

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

Material Changes in Financial Condition.

The Company's working capital (total current assets less total
current liabilities), which was $5,611,407 as of December 31,
2002, decreased to $5,507,686 as of September 30, 2003. The
decrease in working capital was primarily the result of the
write-off of accounts receivable during the second quarter,
partially offset by increased inventory levels.

The Company's cash flow from operating activities for the nine
months generated $382,797 as amounts used to fund inventory were
partially offset by increased accounts payable and accruals and
a $356,777 reduction in accounts receivable. A total of $370,853
was also utilized as investments to acquire property and equipment
(primarily spray systems at customer sites and computer and
operating systems as part of the Company's new computer system).
The resulting increase in cash for the nine months of 2003 was
$382,797, as compared to a decrease of $56,551 during the first
nine months of 2002.

The Company believes that its present financing is adequate for
its capital needs for the foreseeable future.

Material Changes in Results of Operations

Net sales revenue for the nine months ended September 30, 2003
decreased to $9,684,060 from $10,927,465, or 11.4%, from the same
period of 2002. Net sales revenue for the third quarter of 2003
declined to $3,237,813 from $3,586,367, or 9.7%, from the third
quarter of 2002. These declines in net sales revenue can
attributed to a decline in commercial construction activity and
very severe weather that effected a large part of the Company's
marketing area during the first quarter of 2003 and a decline
in commercial construction activity in the third quarter.

Cost of sales as a percentage of net sales increased to 59.0% of
net sales for the nine months ended September 30, 2003 as compared
to 56.4% of net sales for the same period of 2002. Cost of goods
increased to 63.9% of net sales in the third quarter of 2003 as
compared to 56.5% for the third quarter of 2002. These increases
can be attributed to increased costs of oil related ingredients
and an increase in sales costs as a result of increases to the
sales force in a soft market in an attempt to increase future
sales.

As a result of the decline in sales, higher oil related ingredient
costs and higher sales costs, gross profit decreased by 16.6% to
$3,972,860 from $4,764,055 for the nine months ended September 30,
2003 versus the comparable period of fiscal 2002. Gross profit for
the third quarter of 2003 decreased by 25.0% to $1,169,264 from
$1,559,793 for the third quarter of 2002.

General and administrative expenses increased by $139,926, or
3.5%, from $4,056,302 for the nine months ended September 30,
2002 to $4,196,228 for the nine months ended September 30, 2003.
The primary cause for the increase in expenses is the $542,500
charge to the bad debt reserve in the second quarter, partially
offset by reduced travel expenses and group insurance costs.
General and administrative expenses decreased $153,331, or 11.8%,
to $1,143,578 for the third quarter of 2003 from $1,296,909 for
the third quarter of 2002.   The primary causes were reduced
group insurance costs and salary costs partially offset by
higher depreciation and property and casualty insurance costs.

Other income and expense for the first nine months of 2003 was
income of $1,318 versus an income of $45,790 for the first nine
months of 2002. The decrease of $44,472 was caused by the
termination of royalty income from a marketing agreement, lower
interest rates and interest expense in 2003 from a settlement of
a Texas franchise tax audit.  Other income and expense was income
of $3,487 for the third quarter of 2003 and income of $10,077 for
the third quarter of 2002. The decrease of $6,590 can be
attributed to the termination of royalty income from a marketing
agreement and lower interest rates.

As a result of these factors, the Company realized a net loss of
$135,050 for the first nine months of 2003, versus net earnings of
$463,543 for the comparable period of fiscal 2002. Net earnings
for the third quarter of 2003 were $27,973 versus $148,561 for
the third quarter of 2002.


<Page>

Item 3.   Controls and Procedures

	The Company's Chief Executive Officer and Chief Financial
Officer have conducted an evaluation of the effectiveness of
disclosure controls and procedures pursuant to Exchange Act Rule
13a-14. Based on that evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that the disclosure controls
and procedures are effective in ensuring that all material
information required to be filed in this quarterly report has been
made known to them in a timely fashion. There have been no
significant changes in internal controls, or in factors that
could significantly affect internal controls, subsequent to the
date the Chief Executive Officer and Chief Financial Officer
completed their evaluation.

                         Part II.  OTHER INFORMATION

Item 6.   Exhibits and Reports.

     (a) None.


SIGNATURE

	Pursuant to the requirement of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                ARROW-MAGNOLIA INTERNATIONAL, INC.



Date:  November 12, 2003        By: /s/Mark Kenner
                                   -------------------------------
                                   Mark Kenner, Chairman and Chief
                                   Executive Officer


Date:  November 12, 2003        By: /s/Fred Kenner
                                   -------------------------------
                                   Fred Kenner, President and
                                   Chief Financial Officer

                       CERTIFICATIONS PURSUANT TO
                             SECTION 302 OF
                     THE SARBANES-OXLEY ACT OF 2002

I, Mark Kenner, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Arrow-
Magnolia International, Inc.;

2. Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;

4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and
15d-14) for the registrant and we have:

<Page>

a) Designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;

b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and

c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors
and the audit committee of registrant's board of directors (or
persons performing the equivalent function):

a) All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and

b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's
internal controls; and

6. The registrant's other certifying officers and I have indicated
in this quarterly report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.

Date: November 12, 2003

                                   /s/Mark Kenner
                                   ---------------------------
                                   Mark Kenner, Chief Executive
                                   Officer

I, Fred Kenner, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Arrow-
Magnolia International, Inc.;

2. Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the
periods presented in this quarterly report;

4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and
15d-14) for the registrant and we have:

a) Designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;

b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and

c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;

<Page>

5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors
and the audit committee of registrant's board of directors (or
persons performing the equivalent function):

a) All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and

b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's
internal controls; and

6. The registrant's other certifying officers and I have indicated
in this quarterly report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date
of our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.rective
actions with regard to significant deficiencies and material weaknesses.

Date: November 12, 2003

                                   /s/Fred Kenner
                                   --------------------------
                                   Fred Kenner, Chief Financial
                                   Officer