TABLE OF CONTENTS




|                              |                                                                                               |  |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|PART II. OTHER INFORMATION   
|                              | Item 6. Exhibits and Reports on Form 8-K                                                     



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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.

FORM 10-Q

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

|                       |  |  |         |  |              
|---------------------- |  |  | ------- |  | -------------
|For Quarter Ended      |  |  |         |  | June 30, 2001
|                       |  | 
|                      
|Commission File Number |  |  | 0-14063
|                       |  |  |         | 

BARRISTER GLOBAL SERVICES NETWORK, INC.
(Exact name of Registrant as specified in its charter)

|                                                                                |  |                                                
|------------------------------------------------------------------------------- |  | -----------------------------------------------
|Delaware
(State or other jurisdiction of
incorporation of organization)         |  | 16-1176561
(I.R.S. Employer
Identification No.)
|                                                                               
|290 Ellicott Street, Buffalo, New York
(Address of principal executive offices) |  | 14203
(Zip Code)                               

Registrants telephone number, including area code (716) 845-5010






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

|                      |  |                             
|--------------------- |  | ----------------------------
|                      |  | Yes X No                    
|                     
|Class                 |  | Outstanding at July 27, 2001
|                      |  |                             
|Common $.24 Par Value |  | 11,944,963 Shares           





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BARRISTER GLOBAL SERVICES NETWORK, INC.

INDEX

|         |                                     |                                      |  |   |    | 
|-------- | ----------------------------------- | ------------------------------------ |  | - | -- | 
|         | Page                               
|         | Number                             
|         |                                    
|PART I.  |                                     | Financial Information               
|        
|         | Item 1.                             | Financial Statements                
|        
|         | Balance Sheets at June 30, 2001    
|         | and March 31, 2001                  |                                      |  | 3 |   
|        
|         | Statements of Operations -         
|         | Three Months Ended June 30, 2001   
|         | and June 30, 2000                   |                                      |  | 4 |   
|        
|         | Statement of Shareholders Equity -
|         | Three Months Ended June 30, 2001    |                                      |  | 5 |   
|        
|         | Statements of Cash Flows -         
|         | Three Months Ended June 30, 2001   
|         | and June 30, 2000                   |                                      |  | 6 |   
|        
|         | Notes to Financial Statements       |                                      |  | 7 |   
|        
|         | Item 2.                             | Managements Discussion and Analysis
|         |                                     | of Financial Condition and Results  
|         |                                     | of Operations                        |  |   | 9  | 
|        
|PART II. |                                     | Other Information                   
|        
|         | Item 6.                             | Exhibits and Reports on Form 8-K     |  |   | 11 | 

2



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PART I. FINANCIAL INFORMATION
BARRISTER GLOBAL SERVICES NETWORK, INC.
BALANCE SHEETS(In thousands)




|                                               |                                        |                                                  |                                                  |                                          |   |         |       |          |   |     |       | 
|---------------------------------------------- | -------------------------------------- | ------------------------------------------------ | ------------------------------------------------ | ---------------------------------------- | - | ------- | ----- | -------- | - | --- | ----- | 
|                                               |                                        |                                                  |                                                  |                                          |   | June 30 |       | March 31
|                                               |                                        |                                                  |                                                  |                                          |   | 2001    |       | 2001    
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|ASSETS                                         |                                        |                                                  | (unaudited                                       | )                                       
|                                              
|                                              
|                                              
|                                              
|Current assets:                               
|                                              
|                                              
|                                              
|                                              
|                                               | Cash and equivalents                   |                                                  | $                                                | 2,431                                    |   |         | $     | 1,104    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Short-term investments                 |                                                  |                                                  | 822                                      |   |         |       | 3,253    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Accounts receivable                    |                                                  |                                                  | 1,459                                    |   |         |       | 1,905    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Service parts inventory                |                                                  |                                                  | 1,336                                    |   |         |       | 1,410    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Prepaid expenses                       |                                                  |                                                  | 41                                       |   |         |       | 24       |  
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|                                               |                                        |                                                  |                                                  | Total current assets                     |   |         | 6,089 |          |   |     | 7,696 | 
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|Equipment and leasehold improvements, at cost  |                                        |                                                  | 2,420                                            |                                          |   |         | 2,384 |         
|                                              
|                                              
|                                              
|                                              
|                                               | Less accumulated depreciation          |                                                  |                                                  | 1,931                                    |   |         |       | 1,890    |  
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|                                               |                                        |                                                  |                                                  | Net equipment and leasehold improvements |   |         | 489   |          |   |     | 494   | 
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|Marketable securities                          |                                        |                                                  | 910                                              |                                          |   |         |      |         
|                                              
|                                              
|                                              
|                                              
|Other assets                                   |                                        |                                                  | 28                                               |                                          |   |         | 25    |         
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|                                               |                                        | $                                                | 7,516                                            |                                          |   | $       | 8,215 |         
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |          |  
|LIABILITIES AND STOCKHOLDERS EQUITY          
|                                              
|                                              
|                                              
|                                              
|Current liabilities:                          
|                                              
|                                              
|                                              
|                                              
|                                               | Current installments of long-term debt |                                                  | $                                                | 438                                      |   |         | $     | 424      |  
|                                              
|                                              
|                                              
|                                              
|                                               |                                        | ($392 and $379 to a related party, respectively) |                                                 
|                                              
|                                              
|                                              
|                                              
|                                               | Accounts payable                       |                                                  |                                                  | 462                                      |   |         |       | 609      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Accrued compensation and benefits      |                                                  |                                                  | 361                                      |   |         |       | 484      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Customer advances and unearned revenue |                                                  |                                                  | 537                                      |   |         |       | 732      |  
|                                              
|                                              
|                                              
|                                              
|                                               | Other accrued expenses                 |                                                  |                                                  | 60                                       |   |         |       | 148      |  
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|                                               |                                        |                                                  |                                                  | Total current liabilities                |   |         | 1,858 |          |   |     | 2,397 | 
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|Long-term debt, excluding current installments
|                                              
|                                              
|                                              
|                                              
|                                               |                                        |                                                  | ($169 and $274 to a related party, respectively) |                                          |   | 238     |       |          |   | 355 |      
|                                              
|                                              
|                                              
|                                              
|Stockholders equity :                        
|                                              
|                                              
|                                              
|                                              
|                                               | Preferred stock                        |                                                  |                                                  |                                         |   |         |       |         |  
|                                              
|                                              
|                                              
|                                              
|                                               | Common stock, $.24 par value           |                                                  |                                                  | 2,867                                    |   |         |       | 2,867    |  
|                                              
|                                              
|                                              
|                                              
|                                               | Additional paid-in capital             |                                                  |                                                  | 23,028                                   |   |         |       | 23,028   |  
|                                              
|                                              
|                                              
|                                              
|                                               | Accumulated deficit                    |                                                  |                                                  | (20,475                                  | ) |         |       | (20,432  | )
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|                                               |                                        |                                                  |                                                  | Total stockholders equity               |   |         | 5,420 |          |   |     | 5,463 | 
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |         
|                                               |                                        | $                                                | 7,516                                            |                                          |   | $       | 8,215 |         
|                                               |                                        |                                                  |                                                  |                                          |   |         |       |          |  

See accompanying notes to financial statements

3



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BARRISTER GLOBAL SERVICES NETWORK, INC.
STATEMENTS OF OPERATIONS
(unaudited)(In thousands, except per share amounts)

|                                                        |                                                                        |                                              |                   |   |                    |        |         |       |       |        |  
|------------------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------- | ----------------- | - | ------------------ | ------ | ------- | ----- | ----- | ------ | -
|                                                        |                                                                        |                                              |                   |   | Three months ended
|                                                        |                                                                        |                                              |                   |   |                   
|                                                        |                                                                        |                                              |                   |   | June 30            |        | June 30
|                                                        |                                                                        |                                              |                   |   | 2001               |        | 2000   
|                                                        |                                                                        |                                              |                   |   |                    |        |        
|Revenues                                                |                                                                        | $                                            | 3,043             |   |                    | $      | 2,400   |      
|                                                       
|                                                       
|                                                       
|                                                       
|Costs and expenses:                                    
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        |                                                                        | Cost of services                             |                   |   | 2,272              |        |         |       | 1,788 |       
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        |                                                                        | Selling, general and administrative expenses |                   |   | 889                |        |         |       | 750   |       
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|Operating loss                                          |                                                                        |                                              | (118              | ) |                    |        | (138    | )    
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|Interest expense (income):                             
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        |                                                                        | Related party                                |                   |   | 12                 |        |         |       | 21    |       
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        |                                                                        | Other                                        |                   |   | (62                | )      |         |       | (37   | )     
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|                                                        |                                                                        |                                              | Total interest    |   |                    | (50    | )       |       |       | (16    | )
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|Net loss from continuing operations
before income taxes |                                                                        |                                              | (68               | ) |                    |        | (122    | )    
|                                                       
|                                                       
|                                                       
|                                                       
|Income tax benefit                                      |                                                                        |                                              | (25               | ) |                    |        | (45     | )    
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|Net loss from continuing operations                     |                                                                        |                                              | (43               | ) |                    |        | (77     | )    
|                                                       
|                                                       
|                                                       
|                                                       
|Discontinued operations:                               
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        | Gain on sale of discontinued operations, net
of income taxes of $1,697 |                                              |                   |  |                    |        |         | 1,778 |      
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|Net (loss) earnings                                     |                                                                        | $                                            | (43               | ) |                    | $      | 1,701   |      
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|Basic and diluted earnings (loss) per common share:    
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        |                                                                        | Continuing operations                        |                   | $ | .00                |        |         | $     | (.01  | )     
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        |                                                                        | Discontinued operations                      |                   |   | .00                |        |         |       | .15   |       
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|                                                        |                                                                        |                                              | Total             |   | $                  | .00    |         |       | $     | .14    |  
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      
|Weighted average number of common shares
outstanding:  
|                                                       
|                                                       
|                                                       
|                                                       
|                                                        |                                                                        |                                              | Basic and diluted |   |                    | 11,945 |         |       |       | 11,875 |  
|                                                        |                                                                        |                                              |                   |   |                    |        |         |      

See accompanying notes to financial statements.

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BARRISTER GLOBAL SERVICES NETWORK, INC.
STATEMENT OF STOCKHOLDERS EQUITY
(unaudited)
(In thousands, except share data)

|                          |  |        |       |         |  |             |        |       |  |   |         |   |  |   |       |  
|------------------------- |  | ------ | ----- | ------- |  | ----------- | ------ | ----- |  | - | ------- | - |  | - | ----- | -
|                          |  |        |       |         |  | Additional 
|                          |  | Common |       | paid-in |  | Accumulated
|                          |  | stock  |       | capital |  | deficit     |        | Total
|                          |  |        |       |         |  |             |        |      
|Balance at March 31, 2001 |  | $      | 2,867 |         |  | $           | 23,028 |       |  | $ | (20,432 | ) |  | $ | 5,463 |  
|                         
|                         
|                         
|                         
|Net loss                  |  |        |      |         |  |             |       |       |  |   | (43     | ) |  |   | (43   | )
|                          |  |        |       |         |  |             |        |       |  |   |         |   |  |   |       |  
|Balance at June 30, 2001  |  | $      | 2,867 |         |  | $           | 23,028 |       |  | $ | (20,475 | ) |  | $ | 5,420 |  
|                          |  |        |       |         |  |             |        |       |  |   |         |   |  |   |       |  

Common stock    11,944,963 shares issued and outstanding at June 30, 2001 and
March 31, 2001.

See accompanying notes to financial statements.

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BARRISTER GLOBAL SERVICES NETWORK, INC.STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)

|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |        |        |      |  
|--------------------------------------------------------------- | -------------------------------------------------------------------------------------- | ------------------------------------------ | --------------------------------------- | ------ | ------------------ | ---- | ------- | ------ | ------ | ---- | -
|                                                                |                                                                                        |                                            |                                         |        | Three months ended
|                                                                |                                                                                        |                                            |                                         |        |                   
|                                                                |                                                                                        |                                            |                                         |        | June 30            |      | June 30
|                                                                |                                                                                        |                                            |                                         |        | 2001               |      | 2000   
|                                                                |                                                                                        |                                            |                                         |        |                    |      |        
|Cash flows from operating activities:                          
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Net (loss) earnings                                                                    |                                            | $                                       | (43    | )                  |      | $       | 1,701  |       
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Adjustments to reconcile net earnings (loss) to net
cash used by operating activities:
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        | Gain on sale of discontinued operations    |                                         |        |                   |      |         |        | (3,475 | )   
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        | Deferred income taxes                      |                                         |        |                   |      |         |        | 812    |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        | Depreciation                               |                                         |        | 41                 |      |         |        | 31     |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        | Changes in current assets and liabilities:
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        |                                            | Accounts receivable                     |        |                    | 446  |         |        |        | (309 | )
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        |                                            | Service parts inventories               |        |                    | 74   |         |        |        | 60   |  
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        |                                            | Prepaid expenses                        |        |                    | (17  | )       |        |        | (27  | )
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        |                                            | Accounts payable                        |        |                    | (147 | )       |        |        | (625 | )
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        |                                            | Accrued compensation and benefits       |        |                    | (123 | )       |        |        | (336 | )
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        |                                            | Customer advances and unearned revenues |        |                    | (195 | )       |        |        | (33  | )
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                                                                        |                                            | Other accrued expenses                  |        |                    | (88  | )       |        |        | 825  |  
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|                                                                |                                                                                        | Net cash used by operating activities      |                                         |        | (52                | )    |         |        | (1,376 | )   
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|Cash flows from investing activities:                          
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Additions to equipment and leasehold
Improvements                                      |                                            |                                         | (36    | )                  |      |         | (26    | )     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Proceeds from sale of discontinued operations                                          |                                            |                                         |       |                    |      |         | 6,623  |       
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Maturity of investments                                                                |                                            |                                         | 2,784  |                    |      |         |       |       
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Purchases of investments and marketable securities                                     |                                            |                                         | (1,263 | )                  |      |         | (3,013 | )     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Other assets                                                                           |                                            |                                         | (3     | )                  |      |         | 1      |       
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|                                                                |                                                                                        | Net cash provided by investing activities  |                                         |        | 1,482              |      |         |        | 3,585  |     
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|Cash flows from financing activities:                          
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Repayment of debt                                                                      |                                            |                                         | (103   | )                  |      |         | (633   | )     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Proceeds from sale of common stock                                                     |                                            |                                         |       |                    |      |         | 14     |       
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|                                                                |                                                                                        | Net cash used by financing activities      |                                         |        | (103               | )    |         |        | (619   | )   
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|Net increase in cash and equivalents from continuing
operations |                                                                                        |                                            | 1,327                                   |        |                    |      | 1,590   |       
|                                                               
|                                                               
|                                                               
|                                                               
|Net increase in cash from discontinued operations               |                                                                                        |                                            |                                        |        |                    |      | 40      |       
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|Net increase in cash and equivalents                            |                                                                                        |                                            | 1,327                                   |        |                    |      | 1,630   |       
|                                                               
|                                                               
|                                                               
|                                                               
|Cash and equivalents at beginning of period                     |                                                                                        |                                            | 1,104                                   |        |                    |      | 161     |       
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |       
|Cash and equivalents at end of period                           |                                                                                        | $                                          | 2,431                                   |        |                    | $    | 1,791   |       
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |        |       
|Supplemental disclosure of cash flow information:              
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Interest paid                                                                          |                                            | $                                       | 16     |                    |      | $       | 43     |       
|                                                                |                                                                                        |                                            |                                         |        |                    |      |         |        |       

See accompanying notes to financial statements.

6



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BARRISTER GLOBAL SERVICES NETWORK, INC.
NOTES TO FINANCIAL STATEMENTS

1.   In the opinion of Management, the accompanying financial statements present
fairly the financial position, results of operations and cash flows for the
periods shown. The first quarter results for each year represent operations
for the quarters ended June 30, 2001 and June 30, 2000. The financial data
included herein was compiled in accordance with the same accounting policies
applied to the Companys audited annual financial statements. Any adjustments
made were of a normal recurring nature.

The results of operations for the three month period ended June 30, 2001
are not necessarily indicative of the results to be expected for the full year.

2.   Cash and equivalents consist of cash and liquid debt instruments with
maturity of three months or less from the date of purchase. Cash and
equivalents are stated at cost plus accrued interest, which approximates market
value. Short-term investments and marketable securities are classified as
held-to-maturity securities based on the Companys ability and intent to hold
the securities until maturity. The securities are recorded at amortized cost
adjusted for the accretion of discounts or cost plus accrued interest.
Short-term investments consist of certificates of deposits and corporate debt
instruments. Marketable securities consist of mortgage-backed securities and
are expected to mature in less than two years.

3.   On May 5, 2000, the Company sold substantially all of the assets of the
Companys software business to Keystone Solutions US, Inc. (Keystone), a
wholly owned subsidiary of Keystone Software PLC. The Company has agreed to
indemnify Keystone with respect to any breach of its representations and
warranties (subject to a $50,000 basket and a cap of the purchase price paid)
or any breach of any covenant of the Company contained in the Asset Purchase
Agreement. The Company has also agreed to indemnify Keystone with respect to
claims or actions pending at or arising after the closing date (May 5, 2000)
that relate to the operation of the software business prior to that date.

The pre-tax net gain on the sale of the software business recorded in the
first quarter of the prior year was $3,475,000. The net gain less applicable
income taxes (see note 4) is shown in the statements of operations under the
caption discontinued operations.

4.   The income tax benefit recorded in each of the comparable quarters on the
net loss from continuing operations approximated the statutory tax rate. No
additional tax benefits were established in the statements of operations for
the comparable first quarters, since the Company has fully reserved for the tax
effect of net deductible temporary differences and loss carryforwards. These
benefits will be recorded in future periods as they are realized or as their
realization becomes predictable.

The income tax provision associated with the gain from the sale of the
software business (see note 3) is higher than the statutory tax rate since
goodwill valued at $986,000 on the books had a zero basis for tax purposes.
The provision includes current taxes of $897,000 and deferred taxes of
$800,000. The deferred taxes resulted from the use of tax loss

7



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carryforwards
from prior years, the reversal of temporary differences between book and tax on
the assets sold, and the temporary difference created by the treatment of of a
portion the proceeds which were held in escrow.

5.   The Company has adopted SFAS No. 133, Accounting for Derivative Instruments
and Hedging Activities beginning April 1, 2001. SFAS No. 133 requires all
derivatives to be recorded on the balance sheet at fair value and establishes
new accounting rules for hedging instruments. The Company does not enter into
hedging transactions or acquire derivative instruments, accordingly, SFAS No.
133 had no impact on the financial statements.

8



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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Financial Condition

Cash and equivalents, short-term investments and marketable securities
totaled $4,163,000 at June 30 2001 and $4,357,000 at March 31, 2001. The net
decrease of $194,000 was primarily a result of debt repayments of $103,000, net
cash used by operating activities of $52,000 and additions to equipment and
leasehold improvements of $36,000.

The principal cash requirements expected for fiscal 2002 are additions to
equipment and leasehold improvements which are expected to increase over
amounts spent in prior years if an anticipated move of the Companys
headquarters takes place. The Company has entered into a lease agreement to
move in the second half of fiscal 2002. The agreement is subject to a number
of contingencies which could result in a delay of the move or the Company
seeking alternative sites. Debt repayments for fiscal 2002 should approximate
$424,000. The Companys cash and short term investments will be sufficient to
cover working capital, capital expenditure requirements and debt repayments in
fiscal 2002.

Results of Operations

For the quarter ended June 30, 2001, revenues increased approximately
26.8% from the same quarter in 2000. This increase resulted from growth in
revenues from hardware maintenance contracts and from services provided on a
time and materials basis. Revenues from hardware maintenance contracts grew to
$2,283,000, an increase of 25.4% from the first quarter of the prior year,
based on the capture of new business during the prior year, primarily through
the Companys reseller channel. However, non-renewals of contracts in the first
quarter of the current year, particularly one large contract, exceeded new
contracts sold in that quarter. Management expects that new business will
exceed non-renewals in future quarters. For the comparative first quarters,
time and material services increased by 36.2% to a total of $745,000. The
principal reason for the increase was business generated from a new customer
obtained from a reseller that started in April, 2001 and the continuation of
services outsourced by a direct customer which commenced in the second half of
the previous year.

The cost of services as a percentage of revenues remained approximately
the same for the comparable first quarters, amounting to 74.7% for the first
quarter of the current year compared to 74.5% for the first quarter of the
prior year.

Selling, general and administrative expenses were 29.2% of revenues for
the first quarter of this year compared to 31.3% for the comparative quarter
last year. This decrease resulted from the growth in revenues for the
comparable first quarters without a commensurate growth in general and
administrative expenses. Certain of these expenses that were incurred in the
first quarter of the prior year, prior to the sale of the software business of
the Company to Keystone Solutions US, Inc. in May 2000, were reduced after the
sale.

Interest income was earned in the first quarter of the prior year based on
income received on the investment of the net proceeds from the sale of the
software business in May, 2000. These proceeds were also used to pay certain
outstanding interest bearing debt of the Company. The increase in interest
income for the first quarter of the current year resulted from the investment
earnings on the proceeds from the sale of the software business for the full

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quarter. The Company expects lower amounts of interest income in future
quarters since interest rates have dropped and the majority of the Companys
investments are short term.

The income tax benefit recorded in each of the comparable quarters on the
net loss from continuing operations approximated the statutory tax rate. No
additional tax benefits were established in the statements of operations for
the comparable first quarters, since the Company has fully reserved for the tax
effect of net deductible temporary differences and loss carryforwards. These
benefits will be recorded in future periods as they are realized or as their
realization becomes predictable.

The pre-tax net gain on discontinued operations recognized in the first
quarter of the prior year is based on the sale of the Companys software
business to Keystone on May 5, 2000. The income tax provision associated with
the gain from the sale of the software business is higher than the statutory
tax rate since goodwill valued at $986,000 on the books had a zero basis for
tax purposes. The provision includes current taxes of $897,000 and deferred
taxes of $800,000. The deferred taxes resulted from the use of tax loss
carryforwards from prior years, the reversal of temporary differences between
book and tax on the assets sold and the temporary difference created by the
treatment of a portion of the proceeds which were held in escrow.

Forward-Looking Statement

When used in this report, the words expects, believes and intends
and similar expressions are intended to identify forward-looking statements.
Such statements are subject to certain risks and uncertainties which could
cause actual results to differ materially from those projected. Readers are
cautioned not to place undue reliance on these forward-looking statements which
speak only as of the date hereof. The company undertakes no obligation to
republish revised forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrences of unanticipated events.
Readers are also urged to carefully review and consider the various disclosures
made by the Company which attempt to advise interested parties of the factors
which affect the Companys business in the Companys periodic reports on Form
10K and 10Q filed with the Securities and Exchange Commission.

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PART II. OTHER INFORMATION




Item 6. Exhibits and Reports on Form 8-K



| | (a) |  | Exhibits: None           
| | --- |  | -------------------------
|
| | (b) |  | Reports on Form 8-K: None

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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.

BARRISTER GLOBAL SERVICES NETWORK, INC.

|      |  |                |  |  |  |     |  |                              
|----- |  | -------------- |  |  |  | --- |  | -----------------------------
|Date: |  | August 7, 2001 |  |  |  | By: |  | /s/ Henry P. Semmelhack      
|      |  |                |  |  |  |     |  |                              
|      |  |                |  |  |  |     |  | Henry P. Semmelhack          
|      |  |                |  |  |  |     |  | President                    
|      |  |                |  |  |  |     |  | and                          
|      |  |                |  |  |  |     |  | Chief Executive Officer      
|     
|Date: |  | August 7, 2001 |  |  |  | By: |  | /s/ Richard P. Beyer         
|      |  |                |  |  |  |     |  |                              
|      |  |                |  |  |  |     |  | Richard P. Beyer             
|      |  |                |  |  |  |     |  | Vice President, Finance      
|      |  |                |  |  |  |     |  | (Principal Financial Officer)

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