<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

    /X/        Quarterly Report Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934

                         For the quarterly period ended

                                DECEMBER 31, 1998

                                       or

     / /      Transition Report Pursuant to Section 13 or 15(d)
                   of the Securities Exchange Act of 1934

                         Commission File Number 0-13111

                            ANALYTICAL SURVEYS, INC.
        (Exact name of small business issuer as specified in its charter)


     COLORADO                                                      84-0846389
     (State of incorporation)                (IRS Employer Identification No.)

     941 NORTH MERIDIAN STREET
     INDIANAPOLIS, INDIANA                                             46204
     (Address of principal executive offices)                      (Zip Code)

     (317) 634-1000
     (Issuer's telephone number)

Check whether the issuer (1) 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
ninety (90) days.
                                                     Yes  X   No
                                                        -----   -----

The number of shares of common stock outstanding as of February 11, 1999 was 
6,802,993.

<PAGE>

PART I   ITEM 1.

                            ANALYTICAL SURVEYS, INC.
                           CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                           September 30,   December 31,
                                                               1998           1998 
                                                           -------------   -------------
<S>                                                        <C>             <C>
ASSETS

Current assets:
  Cash                                                        $ 2,243        $ 2,158
  Accounts receivable net of allowance for doubtful
    accounts of $161 and $155 at September 30 and
    December 31 respectively                                   17,501         21,595
  Revenue in excess of billings                                39,316         40,531
  Deferred income taxes                                           557            722
  Income tax receivable                                           675
  Prepaid expenses and other                                      659            856
                                                              -------        -------
      Total current assets                                     60,951         65,862
                                                              -------        -------

Equipment and leasehold improvements, at cost:
  Equipment                                                    13,015         14,579
  Furniture and fixtures                                        1,594          1,701
  Leasehold improvements                                          817            828
                                                              -------        -------
                                                               15,426         17,108
  Less accumulated depreciation and amortization               (7,470)        (8,256)
                                                              -------        -------
                                                                7,956          8,852 
                                                              -------        -------

Deferred income taxes                                             134            129
Goodwill net of accumulated amortization
  of $1,654 and $2,044 at September 30 and
  December 31, respectively                                    25,272         24,826
Other assets, net of accumulated amortization
  of $549 and $745 at September 30 and
  December 31, respectively                                       227            131
                                                              -------        -------
      Total Assets                                            $94,540        $99,800
                                                              -------        -------
                                                              -------        -------

</TABLE>

See accompanying notes to financial statements.

                                       2

<PAGE>

                            ANALYTICAL SURVEYS, INC.
                         CONSOLIDATED BALANCE SHEETS
                                (In Thousands)
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                           September 30,   December 31,
                                                               1998           1998 
                                                           -------------   -------------
<S>                                                        <C>             <C>

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Current portion of long-term debt                           $ 4,594        $ 6,170
  Billings in excess of revenue                                 1,232          2,392
  Accounts payable and other accrued liabilities                8,229          6,531
  Income taxes payable                                                           611
  Accrued payroll and related benefits                          5,910          3,508
                                                              -------        -------
      Total current liabilities                                19,965         19,212
                                                              -------        -------

Long-term debt, less current portion                           29,920         32,781
Deferred compensation payable                                     192            176
                                                              -------        -------
      Total liabilities                                        50,077         52,169

Stockholders' equity 
  Preferred stock; no par value. Authorized 2,500 
    shares; none issued or outstanding                           --             --
  Common stock; no par value.  Authorized 100,000 
    shares; 6,732 and 6,774 shares issued and outstanding 
    at September 30, and December 31, respectively             28,670         29,565
  Retained earnings                                            15,793         18,066
                                                              -------        -------
      Total stockholders' equity                               44,463         47,631
                                                              -------        -------
      Total liabilities and stockholders' equity              $94,540        $99,800
                                                              -------        -------
                                                              -------        -------
</TABLE>

See accompanying notes to financial statements.

                                       3

<PAGE>

                           ANALYTICAL SURVEYS, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands except per share amounts)
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                            Three Months Ended
                                                               December 31,
                                                             1997         1998
                                                           ---------   ---------
<S>                                                        <C>         <C>

Sales                                                       $17,402      28,229
                                                            -------     -------

Costs and Expenses
  Salaries, wages and related benefits                        8,822      14,288
  Subcontractor costs                                         1,611       3,708
  Other general and administrative                            3,174       4,365
  Depreciation and amortization                                 778       1,349
                                                            -------     -------
                                                             14,385      23,710
                                                            -------     -------

      Earnings from operations                                3,017       4,519
                                                            -------     -------

Other income (expense):
  Interest expense, net                                        (436)       (691)
  Other                                                          14          58
                                                            -------     -------
                                                               (422)       (633)
                                                            -------     -------

      Earnings before income taxes                            2,595       3,886

Income tax expense                                            1,039       1,613
                                                            -------     -------

      Net earnings                                          $ 1,556       2,273
                                                            -------     -------
                                                            -------     -------
Earnings per common share:
  Basic                                                     $  0.25        0.34
  Diluted                                                   $  0.23        0.32

Weighted average outstanding common shares:
  Basic                                                       6,119       6,739
  Diluted                                                     6,629       7,128

</TABLE>

See accompanying notes to financial statements and common stock equivalent.

                                       4

<PAGE>

ANALYTICAL SURVEYS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)

<TABLE>
<CAPTION>
                                                                          Three Months Ended December 31,

                                                                              1997               1998 
                                                                             ------             ------
<S>                                                                       <C>                 <C>
Cash flows from operating activities:
  Net earnings                                                              $ 1,556            $ 2,273
  Adjustments to reconcile net earnings to net cash 
    provided by operating activities:
      Depreciation and amortization                                             778              1,349
      Deferred income tax benefit                                              (240)              (158)
      Tax benefit relating to exercise of stock options                         142                132
      Changes in operating assets and liabilities, 
        net of effect of business combinations:
          Accounts receivable, net                                           (1,326)            (4,094)
          Revenue in excess of billings                                      (4,599)            (1,215)
          Income taxes                                                           --              1,285
          Prepaid expenses and other                                            (30)               (56)
          Billings in excess of revenue                                         913              1,160
          Accounts payable and other accrued liabilities                      2,087             (1,698)
          Accrued payroll and related benefits                                 (368)            (2,418)
                                                                            -------            -------
            Net cash provided (used) by operating activities                 (1,087)            (3,440)
                                                                            -------            -------

Cash flows from investing activities:
  Purchase of equipment and leasehold improvements                             (774)            (1,169)

Cash flows from financing activities:
  Net borrowings (payments) under lines of credit with banks                  1,178              3,400
  Proceeds from issuance of long-term debt                                      756              1,339
  Loan fees on long-term debt                                                                     (162)
  Principal payments of long-term debt                                         (747)              (302)
  Proceeds from exercise of stock options                                       188                249
                                                                            -------            -------
            Net cash provided by financing activities                         1,375              4,524
                                                                            -------            -------
            Net increase in cash                                               (486)               (85)

Cash at beginning of year                                                     1,559              2,243
                                                                            -------            -------

Cash at end of period                                                       $ 1,073            $ 2,158
                                                                            -------            -------
                                                                            -------            -------
Supplemental disclosures of cash flow information:
  Cash paid for interest                                                    $   440            $   677
                                                                            -------            -------
                                                                            -------            -------
  Cash paid for income taxes                                                $    50            $   195
                                                                            -------            -------
                                                                            -------            -------
  Common stock issued for net assets acquired in 
    business combinations                                                   $     0            $   514
                                                                            -------            -------
                                                                            -------            -------

</TABLE>

See accompanying notes to financial statements.

                                       5

<PAGE>

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited interim consolidated financial statements have 
been prepared by management in accordance with the accounting policies 
described in the Company's annual report for the year ended September 30, 
1998. The consolidated financial statements include the accounts of the 
Company and its subsidiaries. All significant intercompany balances and 
transactions have been eliminated in consolidation. Certain information and 
note disclosures normally included in consolidated financial statements 
prepared in accordance with generally accepted accounting principles have 
been omitted. These condensed consolidated financial statements should be 
read in conjunction with the audited consolidated financial statements and 
related notes included in the Company's Annual Report on Form 10-K for the 
year ended September 30, 1998.

The consolidated financial statements reflect all adjustments which are, in 
the opinion of management, necessary to present fairly the financial position 
of Analytical Surveys, Inc., and subsidiaries at December 31, 1998 and its 
results of operations for the three months ended December 31, 1997 and 1998, 
and its cash flows for the three months ended December 31, 1997 and 1998. All 
such adjustments are of a normal recurring nature.

                                       6

<PAGE>

PART I   ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.

THE DISCUSSION OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF THE 
COMPANY SET FORTH BELOW SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED 
FINANCIAL STATEMENTS AND RELATED NOTES THERETO INCLUDED ELSEWHERE IN THIS 
FORM 10-Q. THIS FORM 10-Q CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE 
RISK AND UNCERTAINTIES. THE STATEMENTS CONTAINED IN THIS FORM 10-Q THAT ARE 
NOT PURELY HISTORICAL ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF 
SECTION 27A OF THE SECURITIES ACT AND SECTION 21E OF THE EXCHANGE ACT. WHEN 
USED IN THIS FORM 10-Q, OR IN THE DOCUMENTS INCORPORATED BY REFERENCE INTO 
THIS FORM 10-Q, THE WORDS "ANTICIPATE," "BELIEVE," "ESTIMATE," "INTEND" AND 
"EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY SUCH 
FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT 
LIMITATION, THE STATEMENTS REGARDING THE COMPANY'S STRATEGY, FUTURE SALES, 
YEAR 2000 COMPLIANCE, FUTURE EXPENSES AND FUTURE LIQUIDITY AND CAPITAL 
RESOURCES. ALL FORWARD-LOOKING STATEMENTS IN THIS FORM 10-Q ARE BASED UPON 
INFORMATION AVAILABLE TO THE COMPANY ON THE DATE OF THIS FORM 10-Q, AND THE 
COMPANY ASSUMES NO OBLIGATION TO UPDATE ANY SUCH FORWARD-LOOKING STATEMENTS. 
THE COMPANY'S ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED IN 
THIS FORM 10-Q. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES 
INCLUDE, BUT ARE NOT LIMITED TO, THOSE DISCUSSED BELOW, IN ITEM 1. 
BUSINESS--"RISK FACTORS" AND ELSEWHERE IN THE COMPANY'S ANNUAL REPORT ON FORM 
10-K.

OVERVIEW

ASI, a leading provider of data conversion and digital mapping services to 
users of customized geographic information systems, was founded in 1981 by 
John A. Thorpe. From 1981 to 1990, the Company experienced steady growth in 
revenues with periodic fluctuations in financial results. After the hiring of 
the Company's current Chief Executive Officer and Chief Financial Officer in 
1990, the Company implemented a controlled growth strategy, including 
improving and standardizing operating controls and procedures, investing in 
infrastructure, upgrading the Company's proprietary software and establishing 
capital sources.

In 1995, the Company embarked on a more aggressive growth strategy, including 
consolidation of the fragmented GIS services industry. The Company's recent 
acquisitions are summarized in the following table:

<TABLE>
<CAPTION>

        Date        Company                   Location              Employees
        ----        -------                   --------              ---------
<S>                 <C>                       <C>                   <C>
        12/95       Intelligraphics           Wisconsin                200

         7/96       Westinghouse Landmark     North Carolina           105

         7/97       MSE Corporation           Indiana                  325

         6/98       Cartotech                 Texas                    270
</TABLE>

The Company recognizes revenue using the percentage of completion method of 
accounting on a cost-to-cost basis. For each contract, an estimate of total 
production costs is determined. At each accounting period and for each of the 
Company's contracts, the percentage of completion is based on production 
costs incurred to date as a percentage of total estimated production costs. 
This percentage is then multiplied by the contract's total value to calculate 
the sales 

                                       7

<PAGE>

revenue to be recognized.

Production costs consist of internal costs, primarily salaries and wages, and 
external costs, primarily subcontractor costs. Internal and external 
production costs may vary considerably among projects and during the course 
of completion of each project. As a result, the Company experiences yearly 
and quarterly fluctuations in production costs, in salaries, wages and 
related benefits and in subcontractor costs. These costs may vary as a 
percentage of sales from period to period. Since 1995 the Company has relied 
less on subcontractors and more on employees. The Company anticipates that, 
as a percentage of sales, salaries, wages and related benefits will continue 
to increase, with a corresponding decrease in subcontractor costs, due, in 
part, to the Company's May 1998 purchase of Interra Technologies, an 
India-based company that had been a provider of subcontractor services to the 
Company. The following table illustrates the relationship of salaries, wages 
and related benefits and subcontractor costs:

<TABLE>
<CAPTION>
                                                      Year                   Three Months
                                              Ended September 30,         Ended December 31,
                                        -------------------------------   ------------------
                                          1996       1997      1998        1997       1998
<S>                                     <C>          <C>       <C>        <C>        <C>
PERCENTAGE OF SALES:
Salaries, wages and related benefits      46.3%      48.5%     48.7%      50.7%      50.6%
Subcontractor costs                       17.2%      14.5%     13.6%       9.3%      13.1%
                                          -----      -----     -----      -----      -----
Total . . . . . . . . . . . . . .         63.5%      63.0%     62.3%      60.0%      63.7%
</TABLE>

The Company recognizes losses on contracts in the period such loss is 
determined. From the beginning of fiscal 1995 through the end of the first 
three months of fiscal 1999, the Company has recognized aggregate losses on 
contracts of approximately $910,000. Over the same period, the Company 
recognized sales of $193.4 million. Sales and marketing expenses associated 
with obtaining contracts are expensed as incurred.

Backlog increases when new contracts are signed and decreases as revenue is 
recognized. As of December 31, 1998, backlog was $99.0 million. Recently, the 
number of large projects awarded to the Company has increased. Contracts for 
larger projects generally increase the Company's risk due to inflation as 
well as changes in customer expectations and funding availability. The 
Company's contracts are generally terminable on short notice, and while in 
the Company's experience such termination is rare, there is no assurance that 
the Company will receive all of the revenue anticipated under signed 
contracts.

The Company engages in research and development activities. The majority of 
these activities occur as the Company develops software or designs a product 
for a particular contract, so that the costs of such efforts are included as 
an integral part of the Company's services. Such custom-designed software can 
often be applied to projects for other customers. These amounts expended by 
the Company are not included in research and development expenses, although 
the Company retains ownership of such proprietary software or products. The 
Company, through its Advanced Technology Division, also engages in research 
and development activities independently of the Company's work on particular 
customer projects. For the three months ended December 31, 1997 and 1998, the 
Company expended $55,478 and $67,072, respectively on such independent 
research and development activities in the Advanced Technology Division.

                                       8

<PAGE>

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, selected 
consolidated statements of operations data expressed as a percentage of sales:

<TABLE>
<CAPTION>
                                                   Three Months Ended
                                                      December  31
                                                 --------------------------
                                                  1997             1998
<S>                                              <C>               <C>
PERCENTAGE OF SALES:
Sales                                            100.0%            100.0%
Costs and expenses
  Salaries, wages and related benefits            50.7              50.6
Subcontractor costs                                9.3              13.1
  Other general and administrative                18.2              15.5
  Depreciation and amortization                    4.5               4.8
                                                 -----             -----

Earnings from operations                          17.3              16.0
Other expense, net                                (2.4)             (2.2)
                                                 -----             -----

Earnings before income taxes                      14.9              13.8
Income tax expense                                 6.0               5.7
                                                 -----             -----

Net earnings                                       8.9%              8.1%
                                                 -----             -----
                                                 -----             -----

</TABLE>

THREE MONTHS ENDED DECEMBER 31, 1998 AND 1997

SALES. The Company's sales consist of revenue recognized for services 
performed. Sales increased $10.8 million to $28.2 million for the first three 
months of fiscal 1999 from $17.4 million for the first three months of fiscal 
1998. This increase was due to an increase in the number and size of customer 
contracts with the Company (including Cartotech) as well as the impact of the 
acquisition Cartotech in June 1998. Prior to its acquisition by the Company, 
Cartotech's sales for the first three months of fiscal 1998 were 
approximately $4.0 million.

SALARIES, WAGES AND RELATED BENEFITS. Salaries, wages and related benefits 
includes employee compensation for production, marketing, selling, 
administrative and executive employees. Salaries, wages and related benefits 
increased 62.0% to $14.3 million for the first three months of fiscal 1999 
from $8.8 million for the first three months of fiscal 1998. This increase 
was primarily due to the addition of over 270 employees as a result of the 
Cartotech acquisition in June 1998, as well as the hiring of additional 
employees to support the Company's increased business. As a percentage of 
sales, salaries, wages and related benefits decreased slightly to 50.6% for 
the first three months of fiscal 1999 from 50.7% for the first three months 
of fiscal 1998.

SUBCONTRACTOR COSTS. Subcontractor costs includes production costs incurred 
through the use of third parties for production tasks such as data conversion 
services to meet contract requirements, aerial photography and ground and 
airborne survey services. Subcontractor costs increased 130.2% to $3.7 
million for the first three months of fiscal 1999 from $1.6 million for the 
first three months of fiscal 1998, and increased as a percentage of sales to 
13.1% for the first three months of fiscal 1999 from 9.3% for the first three 
months of fiscal 1998. Subcontractor costs were lower than normal in 1998 due 
to reduced use of outside subcontractors in that period.

                                       9

<PAGE>

OTHER GENERAL AND ADMINISTRATIVE COSTS. Other general and administrative 
costs includes rent, maintenance, travel, supplies, utilities, insurance and 
professional services. Such costs increased 37.5% to $4.4 million for the 
first three months of fiscal 1999 from $3.2 million for the first three 
months of fiscal 1998, primarily due to the acquisition of Cartotech. As a 
percentage of sales, other general and administrative costs decreased to 
15.5% for the first three months of fiscal 1999 from 18.2% for the first 
three months of fiscal 1998.

DEPRECIATION AND AMORTIZATION. Depreciation and amortization consists 
primarily of amortization of goodwill incurred in connection with the 
Company's acquisitions, as well as depreciation of certain of the Company's 
operating assets. For the first three months of fiscal 1999, depreciation and 
amortization increased 73.4% to $1.3 million from $778,000 for the first 
three months of fiscal 1998. This increase was primarily attributable to the 
increased goodwill recorded as a result of the Cartotech acquisitions. As a 
percentage of sales, depreciation and amortization increased to 4.8% for the 
first three months of fiscal 1999 from 4.5% for fiscal 1998.

OTHER EXPENSE, NET. Other expense, net is comprised primarily of net interest 
expense. Net interest expense increased 58.5% to $691,000 for the first three 
months of fiscal 1999 from $436,000 for the first three months of fiscal 
1998. This increase was primarily due to increased term debt incurred in 
connection with the acquisition of Cartotech in June 1998 and increased 
utilization of the Company's lines of credit for working capital.

INCOME TAX EXPENSE. Income tax expense was $1.6 million for the first three 
months of fiscal 1999 compared to $1.0 million for the first three months of 
fiscal 1998. The Company's effective income tax rate for the first three 
months of fiscal 1999 was 41.5%, an increase from 40.0% for the first three 
months of fiscal 1998, due to increases in state income taxes and the 
nondeductible nature of the Cartotech goodwill.

NET EARNINGS. Due to the factors discussed above, net earnings increased 
46.1% to $2.3 million for the first three months of fiscal 1999 from $1.6 
million for the first three months of fiscal 1998.

LIQUIDITY AND CAPITAL RESOURCES

Historically, the Company's principal source of liquidity has consisted of 
cash flow from operations supplemented by secured lines of credit. As of 
December 31, 1998, the Company's outstanding balance on its lines of credit 
was $9.2 million. During 1998, the Company replaced its existing lines of 
credit with a three-year, $21.0 million secured working capital line of 
credit and the Company refinanced $25.4 million of term debt. Borrowings 
under the new credit facilities bear interest at a rate per annum equal to, 
at the Company's option, (i) the agent bank's prime rate or (ii) an adjusted 
London Interbank Offering Rate (LIBOR) plus a margin ranging from 1.25% to 
1.75%. The effective borrowing rate was 6.2842% on December 31, 1998.

The Company's cash flow is significantly affected by three contract-related 
accounts: accounts receivable; revenues in excess of billings; and billings 
in excess of revenues. Under the percentage of completion method of 
accounting, an "account receivable" is created when an amount becomes due 
from a customer, which typically occurs when an event specified in the 
contract triggers a billing. "Revenues in excess of billings" occur when the 
Company has performed under a contract even though a billing event has not 
been triggered. "Billings in excess of revenues" occur when the Company 
receives an advance or deposit against work yet to be performed. These 
accounts, which represent a significant investment by ASI in its business, 
affect the Company's cash flow as projects are signed, performed, billed and 
collected.

                                       10

<PAGE>

Net cash used by the Company's operating activities was ($1.1) million, and 
($3.4) million for first three months of fiscal years 1998 and 1999, 
respectively. The change in operating cash flows is primarily attributable to 
normal fluctuations in the contract-related accounts described in the 
previous paragraph. At December 31, 1998, the working capital in 
contract-related accounts was equivalent to 194 days sales outstanding, up 
from 182 days at September 30, 1998. The Company believes that this level of 
investment is consistent with its normal operating range of days sales 
outstanding.

Cash used by investing activities for the first three months of fiscal years 
1998 and 1999 was ($774,000) and ($1.2) million, respectively. Such investing 
activities principally consisted of payments for purchases of equipment and 
leasehold improvements.

Cash provided by financing activities for the first three months of fiscal 
years 1998 and 1999 was $1.4 million and $4.5 million, respectively. 
Financing activities consisted primarily of net borrowings and payments under 
lines of credit for working capital purposes and net borrowings and payments 
of long-term debt used for business combinations and the purchase of 
equipment and leasehold improvements.

The Company believes that funds available under its lending arrangements and 
cash flow from operations are adequate to finance its operations for at least 
the next 18 months.

RECENT ACCOUNTING PRONOUNCEMENTS

In June 1997, the FASB issued Statement of Financial Accounting Standards No. 
130, "Reporting Comprehensive Income." This statement requires that changes 
in comprehensive income be shown in a financial statement that is displayed 
with the same prominence as other financial statements. The statement will be 
effective for fiscal years beginning after December 15, 1997 (the Company's 
fiscal year beginning October 1, 1998). Reclassification for earlier periods 
is required for comparative purposes. The Company adopted this statement 
beginning October 1, 1998 with no effect on its financial statements.

In June 1997, the FASB issued Statement of Financial Accounting Standards No. 
131, "Disclosures About Segments of an Enterprise and Related Information." 
This statement supersedes Statement of Financial Accounting Standards No. 14, 
"Financial Reporting for Segments of a Business Enterprise." This statement 
includes requirements to report selected segment information quarterly and 
entity-wide disclosures about products and services, major customers, and the 
material countries in which the entity holds assets and reports revenues. The 
statement will be effective for fiscal years beginning after December 15, 
1997 (the Company's fiscal year beginning October 1, 1998). Reclassification 
for earlier periods is required, unless impracticable, for comparative 
purposes. The Company adopted this statement beginning October 1, 1998 with 
no effect on its financial statements.

In addition, the Company believes the future adoption of FASB Statements No. 
132, "Employers' Disclosures about Pensions and Other Postretirement 
Benefits", No. 133, "Accounting for Derivative Instruments and Hedging 
Activities" and No. 134, "Accounting for Mortgage-Backed Securities Retained 
after the Securitization of Mortgage Loans Held for Sale by a Mortgage 
Banking Enterprise" will not have a material affect on its financial 
statements.

YEAR 2000 ISSUES

The "Year 2000" issue is the result of computer programs using two digits,
rather than four, to define the applicable 

                                       11

<PAGE>

year. The failure of such programs to recognize the year 2000 as such could 
result in systems failures and miscalculations. The Company and the third 
parties with which it does business rely on numerous computer programs in 
their daily operations.

The Company is currently in the process of assessing the impact of the Year 
2000 issues. The Company expects that such assessment and any required action 
will be carried out solely by its employees. Accordingly, the Company has not 
incurred material costs to date and does not believe that the costs 
associated with this process will be material.

The Company has assessed its most critical systems, its proprietary 
operations software, and believes such software to be Year 2000 compliant. 
The Company is in the process of assessing its other internal systems, 
including financial and other operational systems for Year 2000 compliance, 
including information technology ("IT") and critical non-IT areas where Year 
2000 issues may exist. The majority of the personal computers used by the 
Company are running Microsoft's Windows 95 or Windows 98 or Microsoft NT 
operating systems, each of which the Company believes will be substantially 
Year 2000 compliant before 2000. The Company expects that any personal 
computers that are not Year 2000 compliant will be upgraded or replaced prior 
to 2000. Although the Company has not completed its assessment of internal 
systems readiness for Year 2000, the Company believes that the costs required 
to remedy internal Year 2000 issues will not be material.

The Company has not formally surveyed its relationships with its vendors or 
subcontractors. Based on informal inquiries, the Company does not believe 
that any of its significant vendors or subcontractors is or is likely to 
present any significant exposure due to the Year 2000 issues. If any such 
vendors or subcontractors or their products are not Year 2000 compliant and 
they suffer significant business interruptions or use of their products 
interfere with the Company's operations, the Company believes that 
alternative vendors and subcontractors will be available to provide the 
services and products provided by the Company's current vendors and 
subcontractors at comparable costs.

The Company's customer contracts specify database designs, including date 
fields, and the Company's delivery of data conforms to such specifications. 
Accordingly, the Company has not formally evaluated the Year 2000 issue as it 
relates to the computer systems used by its customers and potential 
customers. The Company faces risk to the extent its major customers do not 
comply with Year 2000 requirements in their own operations and suffer 
business disruptions as a result. To the extent Year 2000 issues cause 
significant delays or cancellation of customer's GIS projects, the Company's 
financial position and results of operations could be materially adversely 
affected.

Based on currently available information, the Company believes that it does 
not have material exposure to significant business interruption as a result 
of Year 2000 compliance issues. However, the Company is planning to undertake 
a more formal review of its internal operational systems and its significant 
vendors and subcontractors, which it expects to complete by March 31, 1999. 
However, there can be no assurances that the Company will not experience 
serious unanticipated negative consequences and/or material costs caused by 
undetected errors or defects in the systems used by the Company in its 
internal operations.

                                       12
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                                                    Analytical Surveys, Inc.
                                                                (Registrant)

         Date: February 12, 1999                       /s/  Sidney V. Corder
                                                    ------------------------
                                                  Sidney V, Corder, Chairman
                                                 and Chief Executive Officer

         Date: February 12, 1999                        /s/  Scott C. Benger
                                                    ------------------------
                                        Scott C. Benger, Secretary/Treasurer
                                            (principal financial officer and
                                               principal accounting officer)

         Date: February 12, 1999                         /s/  Brian J. Yates
                                                    ------------------------
                                                  Brian J. Yates, Controller

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