U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


                                   FORM 10-QSB



              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934


                 For the quarterly period ended: March 31, 2003



             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE

                                  EXCHANGE ACT

                           Commission file No. 0-13167


                                TM CENTURY, INC.
           (Name of small business issuer as specified in its charter)


     Delaware                                            73-1220394
(State of incorporation)                      (IRS Employer Identification  No.)


2002 Academy, Dallas, Texas                                                75234
(Address of principal executive offices)                              (Zip Code)

Issuer's telephone number:                                        (972) 406-6800


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes X  No
                                                             ---   ---

The number of issuer's  shares of Common Stock  outstanding as of March 31, 2003
was 2,481,193.

Transitional Small Business Disclosure Format (check one): Yes    No X
                                                              ---   ---

<PAGE>
<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS AND NOTES

                        TM Century, Inc. and Subsidiaries
                           Consolidated Balance Sheets


                                     ASSETS

                                                                                       March 31, 2003      September 30, 2002
                                                                                         (Unaudited)
                                                                                     ------------------    ------------------
<S>                                                                                  <C>                   <C>
CURRENT ASSETS
       Cash and cash equivalents                                                     $          726,392    $          459,649
       Short-term investments                                                                   656,252               645,452
       Accounts receivable, less allowance for doubtful accounts
         of $44,827 and $49,181, respectively                                                   689,672               635,814
       Inventories, net of allowance for obsolescence of $258,545 for both periods              373,263               369,779
       Prepaid expenses                                                                         134,191                88,577
                                                                                     ------------------    ------------------
             TOTAL CURRENT ASSETS                                                             2,579,770             2,199,271

PROPERTY AND EQUIPMENT                                                                        3,014,567             2,981,103
       Less accumulated depreciation and amortization                                        (2,632,690)           (2,556,719)
                                                                                     ------------------    ------------------
             NET PROPERTY AND EQUIPMENT                                                         381,877               424,384

PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
       of $579,992 and $502,474, respectively                                                   411,562               403,455
COMEDY MATERIAL RIGHTS, net of accumulated amortization
       of $105,400 and $93,000, respectively                                                     18,600                31,000
OTHER ASSETS                                                                                      7,187                 7,560
                                                                                     ------------------    ------------------

       TOTAL ASSETS                                                                  $        3,398,996    $        3,065,670
                                                                                     ==================    ==================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
       Current portion of note payable                                               $            9,000    $           12,000
       Accounts payable                                                                          53,114                30,956
       Accrued expenses                                                                         101,125                87,065
       Deferred revenue                                                                         187,496               129,484
       Customer deposits                                                                         59,645                59,645
                                                                                     ------------------    ------------------
             TOTAL CURRENT LIABILITIES                                                          410,380               319,150

NOTE PAYABLE, less current portion                                                                 --                   3,000
CUSTOMER DEPOSITS - non-current                                                                 129,416               107,170
                                                                                     ------------------    ------------------
             TOTAL LIABILITIES                                                                  539,796               429,320

STOCKHOLDERS' EQUITY
       Common stock, $.01 par value; authorized 7,500,000 shares;
          2,970,481 shares issued;
       2,481,193 shares outstanding                                                              29,705                29,705
       Additional paid-in capital                                                             2,275,272             2,275,272
       Retained earnings                                                                      1,846,950             1,624,100
       Treasury stock - at cost, 489,288 shares                                              (1,292,727)           (1,292,727)
                                                                                     ------------------    ------------------
             TOTAL STOCKHOLDERS' EQUITY                                                       2,859,200             2,636,350
                                                                                     ------------------    ------------------

       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                    $        3,398,996    $        3,065,670
                                                                                     ==================    ==================
</TABLE>


            See notes to interim consolidated financial statements.
                                       2
<PAGE>

                        TM Century, Inc. and Subsidiaries
     Consolidated Statements of Operations and Retained Earnings (Unaudited)


                                                   Three Months Ended March 31,
                                                       2003            2002
                                                   ------------    ------------

REVENUES                                           $  1,411,888    $  1,239,733
      Less  Commissions                                 203,772         207,012
                                                   ------------    ------------
          NET REVENUES                                1,208,116       1,032,721

COSTS AND EXPENSES
      Production, Programming, and Technical Costs      390,966         395,142
      General and Administrative                        455,884         526,837
      Selling Costs                                     220,850         230,919
      Depreciation                                       37,948          37,224
                                                   ------------    ------------
          TOTAL COSTS AND EXPENSES                    1,105,648       1,190,122

                                                   ------------    ------------
OPERATING INCOME (LOSS)                                 102,468        (157,401)

OTHER INCOME
      Interest income                                     4,522           3,949
      Other income                                         --               100
                                                   ------------    ------------
          TOTAL OTHER INCOME                              4,522           4,049
                                                   ------------    ------------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES         106,990        (153,352)

PROVISION FOR INCOME TAXES                                 --              --

                                                   ------------    ------------
NET INCOME (LOSS)                                  $    106,990    $   (153,352)
                                                   ============    ============

RETAINED EARNINGS, BEGINNING OF PERIOD                1,739,960       1,577,621
                                                   ------------    ------------

RETAINED EARNINGS, END OF PERIOD                   $  1,846,950    $  1,424,269
                                                   ============    ============

BASIC NET INCOME (LOSS) PER COMMON SHARE           $       0.04    $      (0.06)
                                                   ============    ============

DILUTED NET INCOME (LOSS) PER COMMON SHARE         $       0.04    $      (0.06)
                                                   ============    ============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING, BASIC     2,481,193       2,481,193
                                                   ============    ============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                               2,488,182       2,481,193
                                                   ============    ============

            See notes to interim consolidated financial statements.
                                       3

<PAGE>

                        TM Century, Inc. and Subsidiaries
     Consolidated Statements of Operations and Retained Earnings (Unaudited)


                                                     Six Months Ended March 31,
                                                         2003           2002
                                                     -----------    -----------

REVENUES                                             $ 2,701,087    $ 2,487,150
      Less  Commissions                                  422,882        422,468
                                                     -----------    -----------
          NET REVENUES                                 2,278,205      2,064,682

COSTS AND EXPENSES
      Production, Programming, and Technical Costs       720,688        807,718
      General and Administrative                         896,979        995,879
      Selling Costs                                      373,816        458,781
      Depreciation                                        75,971         73,763
                                                     -----------    -----------
          TOTAL COSTS AND EXPENSES                     2,067,454      2,336,141

                                                     -----------    -----------
OPERATING INCOME (LOSS)                                  210,751       (271,459)

OTHER INCOME
      Interest income                                     12,099         14,984
      Other income                                          --              100
                                                     -----------    -----------
          TOTAL OTHER INCOME                              12,099         15,084
                                                     -----------    -----------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES          222,850       (256,375)

PROVISION FOR INCOME TAXES                                  --             --

                                                     -----------    -----------
NET INCOME (LOSS)                                    $   222,850    $  (256,375)
                                                     ===========    ===========


RETAINED EARNINGS, BEGINNING OF PERIOD                 1,624,100      1,680,644
                                                     -----------    -----------

RETAINED EARNINGS, END OF PERIOD                     $ 1,846,950    $ 1,424,269
                                                     ===========    ===========

BASIC NET INCOME (LOSS) PER COMMON SHARE             $      0.09    $     (0.10)
                                                     ===========    ===========

DILUTED NET INCOME (LOSS) PER COMMON SHARE           $      0.09    $     (0.10)
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING, BASIC      2,481,193      2,482,443
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,487,966      2,482,443
                                                     ===========    ===========


            See notes to interim consolidated financial statements.
                                       4


<PAGE>
<TABLE>
<CAPTION>

                        TM Century, Inc. and Subsidiaries
                Consolidated Statements of Cash Flows (Unaudited)

                                                                                   Six Months Ended March 31,
                                                                                       2003           2002
                                                                                   -----------    -----------
<S>                                                                                <C>            <C>
OPERATING ACTIVITIES
     Net income (loss)                                                             $   222,850    $  (256,375)
     Adjustments to reconcile net income (loss) to
     net cash provided by (used in) operating activities
            Depreciation and amortization of property and equipment                     75,971         73,763
            Amortization of product development costs and comedy material rights        89,918         88,861
            Provision for doubtful accounts                                              7,500          6,937
     Increase (decrease) from changes in operating assets and liabilities:
            Accounts receivable                                                        (61,358)       (73,169)
            Inventories                                                                 (3,484)        28,142
            Product development costs                                                  (85,625)       (83,306)
            Prepaid expenses                                                           (45,614)         6,706
            Other Assets                                                                   373
            Accounts payable and accrued expenses                                       36,218         76,277
            Deferred revenue                                                            58,012          4,260
            Customer deposits                                                           22,246         15,037
                                                                                   -----------    -----------
     NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                               317,007       (112,867)

INVESTING ACTIVITIES
     Purchase of short-term investments                                                (10,800)       (12,963)
     Purchases of property and equipment                                               (33,464)       (67,107)
                                                                                   -----------    -----------
     NET CASH USED IN INVESTING ACTIVITIES                                             (44,264)       (80,070)

FINANCING ACTIVITIES
     Principal payments on note payable                                                 (6,000)        (8,556)
     Acquisition of treasury stock                                                        --           (1,500)
                                                                                   -----------    -----------
     NET CASH USED IN FINANCING ACTIVITIES                                              (6,000)       (10,056)
                                                                                   -----------    -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                   266,743       (202,993)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                       459,649        464,631
                                                                                   -----------    -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                         $   726,392    $   261,638
                                                                                   ===========    ===========
</TABLE>










            See notes to interim consolidated financial statements.
                                       5

<PAGE>

                        TM CENTURY INC. AND SUBSIDIARIES

               NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 2003

1.   BASIS OF PRESENTATION

The  interim  consolidated   financial  statements  of  TM  Century,  Inc.  (the
"Company")  at March 31, 2003,  and for the three and six months ended March 31,
2003 and 2002,  are unaudited and include all  adjustments  (consisting  only of
normal recurring  adjustments) which the Company considers  necessary for a fair
presentation.  The September 30, 2002 balance sheet was derived from the balance
sheet included in the Company's  audited  consolidated  financial  statements as
filed on Form 10-KSB for the year ended September 30, 2002.

The accompanying  unaudited interim  consolidated  financial  statements are for
interim periods and do not include all disclosures  normally  provided in annual
consolidated  financial  statements,  and should be read in conjunction with the
Company's audited consolidated financial statements.  The accompanying unaudited
interim  consolidated  financial  statements  for the three and six months ended
March  31,  2003 are not  necessarily  indicative  of the  results  which can be
expected for the entire fiscal year.

2.   USE OF ESTIMATES

The  preparation  of financial  statements  in  conformity  with U.S.  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect  reported  amounts  of  certain  assets,  liabilities,
revenues, and expenses. Actual results may differ from such estimates.

3.   INCOME TAXES

The Company  provides for income taxes under the asset and  liability  approach.
This method  requires that deferred tax assets and liabilities be recognized for
the future tax  consequences  attributable to differences  between the financial
statement  carrying  amounts  of  existing  assets  and  liabilities  and  their
respective tax bases. Valuation allowances are established,  when necessary,  to
reduce deferred tax assets to the amount  expected to be realized.  Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled.  The effect on deferred tax assets and liabilities of a
change in tax rates is  recognized  in income in the period  that  includes  the
enactment date.

No tax expense has been  recorded for the period ended March 31, 2003 due to the
utilization of net operating loss carryforwards from prior periods.


4.   STOCK OPTIONS

On October 1, 2002 the Company  entered into a three year agreement to renew the
employment of R. David Graupner as President and Chief  Executive  Officer.  The
agreement  grants Mr. Graupner  250,000 stock options at $ .34 per share,  which
vest at a rate of 40% upon grant and 20% per year thereafter through the term of
the agreement.


                                       6
<PAGE>



5.   STOCK-BASED COMPENSATION

The Company accounts for its stock-based  employee  compensation  plan using the
intrinsic  value-based method prescribed by Accounting  Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees," and related interpretations.
As such, compensation expense is recorded on the date of grant to the extent the
current market price of the  underlying  stock exceeds the exercise  price.  The
Company recorded no compensation  expense  associated with options issued during
the  periods  ended  March  31,  2003  and  2002.  Had  the  Company  determined
compensation  based on the fair  value at the grant  date for its stock  options
under Statement of Financial  Accounting Standards ("SFAS") No. 123, "Accounting
for Stock-Based Compensation," as amended by SFAS No. 148, net income (loss) and
net income (loss) per share would have been affected as indicated below:
<TABLE>
<CAPTION>

                                                   Three Months Ended        Six Months Ended
                                                        March 31                  March 31
                                                  ---------------------    ---------------------
                                                     2003        2002         2003        2002
                                                  ---------   ---------    ---------   ---------
<S>                                               <C>         <C>          <C>         <C>
Net income (loss) attributable to common
stockholders as reported                          $ 106,990   $(153,352)   $ 222,850   $(256,375)

Add:    Stock-based employee compensation
        expense included in reported net income
        (loss)                                            0           0            0           0
Deduct: Stock-based employee compensation
        expense determined under fair value
        based method                                  8,066       3,781       16,133       7,563
                                                  ---------   ---------    ---------   ---------
Pro forma net income (loss)                       $  98,924   $(157,133)   $ 206,717   $(263,938)

Net income (loss) per share
      As reported                                 $     .04   $    (.06)   $     .09   $     .10)
                                                  =========   =========    =========   =========
      Pro forma                                   $     .04   $    (.06)   $     .08   $    (.11)
                                                  =========   =========    =========   =========
</TABLE>


6.   EARNINGS (LOSS) PER SHARE

Basic  earnings  (loss) per share are calculated  based on the weighted  average
number of common shares  outstanding  during each period.  Diluted  earnings per
share include common stock equivalents, if dilutive.

The following table provides a reconciliation between basic and diluted earnings
(loss) per share:
<TABLE>
<CAPTION>

                                                        Three Months Ended           Six Months Ended
                                                             March 31                    March 31
                                                    -------------------------    -------------------------
                                                        2003          2002           2003          2002
                                                    -----------   -----------    -----------   -----------
<S>                                                 <C>           <C>            <C>           <C>

Net Income (Loss)                                   $   106,990   $  (153,352)   $   222,850   $  (256,375)

Weighted Average Number of Shares Outstanding
      Basic                                           2,481,193     2,481,193      2,481,193     2,482,443
      Dilutive effect of common stock equivalents         6,989             0          6,773             0
                                                    -----------   -----------    -----------   -----------
      Diluted                                         2,488,182     2,481,193      2,487,966     2,482,443


Earnings (Loss) Per Share:
      Basic Net Income (Loss)                       $       .04   $      (.06)   $       .09   $      (.10)
                                                    ===========   ===========    ===========   ===========
      Diluted Net Income (Loss)                     $       .04   $      (.06)   $       .09   $      (.10)
                                                    ===========   ===========    ===========   ===========
</TABLE>


                                       7
<PAGE>

7.   NEW ACCOUNTING PRONOUNCEMENTS

In  December  2002,  the FASB  issued  SFAS  148,  "Accounting  for  Stock-Based
Compensation-Transition  and Disclosure," which amends SFAS 123, "Accounting for
Stock-Based  Compensation." SFAS 148 provides  alternative methods of transition
for a  voluntary  change  to the fair  value  based  method  of  accounting  for
stock-based employee compensation.  In addition,  SFAS 148 amends the disclosure
requirements of SFAS 123 to require more prominent and more frequent disclosures
in financial statements about the effects of stock-based compensation.  SFAS 148
is  effective  for fiscal years ending  after  December 15, 2002,  however,  the
disclosure  requirements  of SFAS 148 are  effective  for quarters  ending after
December  15, 2002.  When the Company  adopts the  provisions  of SFAS 148 it is
expected  that there will be no  material  effect on the  financial  position or
results of operations of the Company.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Forward-Looking Statements
--------------------------

This Quarterly  Report contains  forward-looking  statements about the business,
financial  condition and prospects of the Company that reflect  assumptions made
by management and management's beliefs based on information  currently available
to it. The Company can give no assurance that the expectations indicated by such
forward-looking  statements will be realized. If any of management's assumptions
should prove incorrect, or if any of the risks and uncertainties underlying such
expectations  should  materialize,  the  Company's  actual  results  may  differ
materially from those indicated by the forward-looking statements.

The key factors  that are not within the  Company's  control and that may have a
direct bearing on operating  results include,  but are not limited to, continued
maturation  of  the  domestic  and   international   markets  for  compact  disc
technology;  acceptance by the  customers of the Company's  existing and any new
products and formats;  the development by competitors of products using improved
or alternative  technologies and the potential obsolescence of technologies used
by the Company;  the  continued  availability  of  software,  hardware and other
products obtained by the Company from third parties; dependence on distributors,
particularly  in the  international  market;  the  retention of  employees;  the
success  of the  Company's  current  and  future  efforts  to  reduce  operating
expenses;  the effectiveness of new marketing  strategies;  and general economic
conditions including, but not limited to, terrorist attacks on the United States
and the effect on the economy in general and on the  Company's  revenue  base in
particular.  Additionally,  the  Company may not have the ability to develop new
products  cost-effectively.  There  may be other  risks and  uncertainties  that
management is not able to predict.

When  used in this  Quarterly  Report,  words  such  as  "believes,"  "expects,"
"intends,"  "plans,"  "anticipates,"  "estimates"  and similar  expressions  are
intended to identify forward-looking  statements,  although there may be certain
forward-looking   statements   not   accompanied   by  such   expressions.   All
forward-looking statements are intended to be covered by the safe harbor created
by Section 21E of the Securities Exchange Act of 1934.

OVERVIEW

TM  Century,  Inc.  (the  "Company")  is  engaged  primarily  in  the  creation,
production, marketing, and worldwide distribution of music libraries, production
libraries, comedy services, station identification and commercials for broadcast
multimedia use.

TM Century's clients include radio and television stations;  radio,  television,
satellite  and Internet  networks;  web sites and portals;  the American  Forces
Radio Network;  advertising agencies; post production studios; cable facilities;
and a wide variety of commercial businesses.


                                       8
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

The Company  relies upon current sales of music  libraries and jingles sold with
terms of cash upon delivery for operating liquidity.  Liquidity is also provided
by cash receipts from customers  under  contracts for  production  libraries and
weekly music  service  contracts  having terms of one month to three years.  The
Company is obligated to provide music updates  throughout the contract terms for
both  production  library and weekly  music  service  contracts.  Sales of music
libraries,  jingles,  and the payments under production library and weekly music
service contracts will provide, in the opinion of management, adequate liquidity
to meet operating requirements at least through the next twelve month period.

The Company  reported  net income of  approximately  $223,000  in the  six-month
period ending March 31, 2003,  compared to a loss of approximately  $256,000 for
the same period in 2002. The Company had operating  cash flows of  approximately
$317,000 for the first six months of 2003,  primarily  due to the net income for
the period,  supplemented by increases in deferred revenue, accounts payable and
accrued  expenses and customer  deposits  as, well as  adjustments  for non-cash
expenses offset by changes in accounts  receivable,  product  development costs,
and  prepaid  expenses.  In the same  fiscal  period  of 2002 the  Company  used
approximately  $113,000  to fund  operations  due to the loss for the  period of
approximately   $256,000,   offset  by  adjustments  for  non-cash  expenses  of
approximately  $170,000 and net changes in operating  assets and  liabilities of
approximately  $26,000.  Approximately  $33,000  was spent for the  purchase  of
property  and  equipment  associated  with  upgrades  of  computer  and  digital
recording hardware in the first six months of fiscal 2003. Purchases of property
and equipment for the same period in fiscal 2002 totaled  approximately  $67,000
and included costs related to the upgrade of production equipment.  Expenditures
for product development for the six-month period were approximately  $86,000 and
$83,000 for fiscal 2003 and 2002,  respectively.  Funds for operating needs, new
product  development  and  capital  expenditures  for the  current  period  were
provided  from  operations  of  the  Company.  The  Company's  expenditures  for
property, equipment, and development of new products are discretionary.  Product
development  expenditures  are expected to be  approximately  $170,000 in fiscal
2003.  Management  anticipates that cash flows from operations and cash reserves
will be sufficient to meet these capital  requirements at least through the next
twelve  months.  The Company has no other  significant  commitments  for capital
expenditures in fiscal 2003.

RESULTS OF CONTINUING OPERATIONS

Comparison of the Three-Month Periods Ended March 31, 2003 and 2002
-------------------------------------------------------------------

The  Company  experienced  net income of  approximately  $107,000  in the second
fiscal quarter of 2003, compared to a net loss of $153,000 in the same period of
2002.  Revenues increased  approximately  $172,000,  or 13.9% in the three-month
period  ended March 31,  2003 as  compared  to the same period for the  previous
year.  Total  operating costs decreased from $1,190,000 in the second quarter of
fiscal 2002 to $1,106,000 in 2003.

The majority of the Company's  clients are  businesses  that depend on broadcast
advertising  sales for their  revenue.  The  serious  recession  in  advertising
expenditures  in fiscal 2002 caused  most,  if not all, of these  businesses  to
curtail or postpone spending, especially in non-essential products such as those
marketed by the Company. Positive growth trends for advertising were experienced
in the fourth  fiscal  quarter of 2002 and  continued  into the first two fiscal
quarters of 2003,  however,  the impact of U.S.  involvement in foreign conflict
and the related affect on advertising spending continues to be a factor.

Revenue generated from cash sales and publisher's royalties in the quarter ended
March 31, 2003  increased  approximately  $71,000,  or 8.5% when compared to the
same  period in 2002.  Barter  revenue for the quarter  increased  $102,000,  or
25.3%,  which  reflects  the gradual  recovery of  advertising  rates for barter
service.  Barter revenues are derived from obtaining airtime from radio stations
in exchange for products and marketing such airtime to advertisers.


                                       9
<PAGE>

As the compact disc music  library  market  matures,  sales of compact discs are
generated  primarily  from  changes  in music  formats  or  sales  of new  music
libraries rather than from conversions to compact disc music library technology.
The market for compact disc music libraries to broadcast customers has reached a
substantial  level of  maturity in the United  States,  which is the market from
which the Company  derives  most of its music  library  revenues.  However,  the
advent of  computer-based  music storage has opened a new market to the Company;
delivering  music in a form (.wav file  format  and MPEG  format)  which is more
conducive,  convenient  and cost  efficient  for  operators  to load onto  their
computer-based broadcast systems. A decline in revenues from music library sales
may result in a  proportionately  greater  decline in operating  income  because
music  libraries  provide  higher  margins than the  Company's  other  products.
However,  management  believes  that  revenues  from weekly music  services will
either remain relatively  unchanged or continue to grow by introducing new music
libraries to the market.  Management believes the international markets have not
reached maturity for compact disc technology.  Renewals and new sales growth are
subject to customer acceptance of the new products.

Commissions  as a  percentage  of revenues  decreased to 14.4% of revenue in the
second  quarter  of fiscal  2003 from 16.7% of  revenue  for the same  period in
fiscal 2002.  This decrease is due to changes in the revenue  structure  where a
greater percentage of international revenue was derived from direct sales rather
than through third-party representatives.

Production,  programming  and technical  costs decreased 1.0% to $391,000 in the
second fiscal quarter of 2003 from $395,000 in 2002.

General and  administrative  costs  decreased  $71,000,  or 13.5%. A decrease of
approximately  $26,000 in facilities expenses occurred due to the negotiation of
a new office  lease,  which  reduced  monthly  rent and the  responsibility  for
certain building  maintenance costs.  Professional fees in the second quarter of
2003  decreased  when compared to the same period in 2002,  which included legal
fees  related  to a patent  application  for the  SOLD-RITE(TM)  (Secure On Line
Delivery of Recordings,  Information,  Text, and Entertainment) System, a method
of delivering content to consumers via the Internet.

Selling costs reflected a decrease of approximately  $10,000, or 4.4% for fiscal
2003 over  2002.  The  Company  took  advantage  of the loss of sales  personnel
through attrition by restructuring  the compensation  plans for new employees to
reduce fixed costs and provide more efficient coverage of the market.

Depreciation and amortization  expense  increased $725, or 1.9%,  primarily as a
result of purchases to replace outdated equipment.

Comparison of the Six-Month Periods Ended March 31, 2003 and 2002
-----------------------------------------------------------------

The Company  experienced net income of  approximately  $222,850 in the six-month
period  ended  March 31,  2003,  compared  to a net loss of $256,000 in the same
period of 2002. Gross revenues increased  approximately  $214,000, or 8.6% while
total operating costs decreased $269,000, or 11.5%.

The majority of the Company's  clients are  businesses  that depend on broadcast
advertising  sales for their  revenue.  The  serious  recession  in  advertising
expenditures  in fiscal 2002 caused  most,  if not all, of these  businesses  to
curtail or postpone spending, especially in non-essential products such as those
marketed by the Company. Positive growth trends for advertising were experienced
in the fourth  fiscal  quarter of 2002 and  continued  into the first two fiscal
quarters of 2003,  however,  the impact of U.S.  involvement in foreign conflict
and the related affect on advertising spending continues to be a factor.

Revenue  generated  from cash sales and  publisher's  royalties in the six-month
period  ended  March 31,  2003  increased  approximately  $37,000,  or 2.2% when
compared to the same period in 2002.  Barter  revenue for the quarter  increased
$177,000 or 21.4%,  which reflects the gradual recovery of advertising rates for
barter service.  Barter  revenues are derived from obtaining  airtime from radio
stations in exchange for products and marketing such airtime to advertisers.


                                       10
<PAGE>

As the compact disc music  library  market  matures,  sales of compact discs are
generated  primarily  from  changes  in music  formats  or  sales  of new  music
libraries rather than from conversions to compact disc music library technology.
The market for compact disc music libraries to broadcast customers has reached a
substantial  level of  maturity in the United  States,  which is the market from
which the Company  derives  most of its music  library  revenues.  However,  the
advent of  computer-based  music storage has opened a new market to the Company;
delivering  music in a form (.wav file  format  and MPEG  format)  which is more
conducive,  convenient  and cost  efficient  for  operators  to load onto  their
computer-based broadcast systems. A decline in revenues from music library sales
may result in a  proportionately  greater  decline in operating  income  because
music  libraries  provide  higher  margins than the  Company's  other  products.
However,  management  believes  that  revenues  from weekly music  services will
either remain relatively  unchanged or continue to grow by introducing new music
libraries to the market.  Management believes the international markets have not
reached maturity for compact disc technology.  Renewals and new sales growth are
subject to customer acceptance of the new products.

Commissions  as a  percentage  of revenues  decreased to 15.7% of revenue in the
first two  quarters  of fiscal 2003 from 17.0% of revenue for the same period in
fiscal 2002.  This decrease is due to changes in the revenue  structure  where a
greater percentage of international revenue was derived from direct sales rather
than through third-party representatives.

Production,  programming  and technical costs decreased 10.8% to $721,000 in the
six-month  period of 2003 from $808,000 in 2002.  The first six months of fiscal
2002  reflected  an increase in custom  jingle  production  compared to the same
period in fiscal 2003. Since production costs for custom jingles are higher than
those for syndicated  jingles,  the effect on related expenses was noticeable in
comparison.  The  Company  also saw a decrease  in  shipping  costs as more cost
efficient  packaging and carrier  selection were implemented  across all product
lines.

General and administrative  costs decreased  approximately  $99,000,  or 9.9%. A
decrease of  approximately  $63,000 in facilities  expenses  occurred due to the
negotiation  of  a  new  office  lease,  which  reduced  monthly  rent  and  the
responsibility for certain building maintenance costs.  Professional fees in the
fiscal 2003 decreased  when compared to the same period in 2002,  which included
legal fees related to a patent application for the SOLD-RITE(TM) (Secure On Line
Delivery of Recordings,  Information,  Text, and Entertainment) System, a method
of delivering content to consumers via the Internet.

Selling costs reflected a decrease of approximately $85,000, or 18.5% for fiscal
2003 over  2002.  The  Company  took  advantage  of the loss of sales  personnel
through  attrition  by  restructuring  the  compensation  plans for new hires to
reduce fixed costs and provide more efficient coverage of the market.

Depreciation and amortization  expense increased $2,200, or 3.0%, primarily as a
result of purchases to replace outdated equipment.

NEW ACCOUNTING PRONOUNCEMENTS

In  December  2002,  the FASB  issued  SFAS  148,  "Accounting  for  Stock-Based
Compensation-Transition  and Disclosure," which amends SFAS 123, "Accounting for
Stock-Based  Compensation." SFAS 148 provides  alternative methods of transition
for a  voluntary  change  to the fair  value  based  method  of  accounting  for
stock-based employee compensation.  In addition,  SFAS 148 amends the disclosure
requirements of SFAS 123 to require more prominent and more frequent disclosures
in financial statements about the effects of stock-based compensation.  SFAS 148
is effective for fiscal years ending after December 15, 2002.

ITEM 3.  CONTROLS AND PROCEDURES

Based on their  evaluation,  as of a date  within 90 days of the filing  date of
this Form 10-QSB,  the Company's  Chief  Executive  Officer and Chief  Financial
Officer have concluded that the Company's disclosure controls and procedures (as
defined in Rule 13a-14 (c) and 15d-14 (c) under the  Securities  Exchange Act of


                                       11
<PAGE>


1934,  as amended)  are  effective.  There have been no  significant  changes in
internal  controls or in other  factors  that could  significantly  affect these
controls  subsequent to the date of their  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


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                                       12
<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal proceedings - Not applicable.

Item 2. Changes in securities - Not applicable.

Item 3. Defaults upon senior securities - Not applicable.

Item 4. Submission of matters to a vote of security holders

The holders of approximately 69.6% or 1,725,750 shares of the outstanding common
stock of the  Company,  by  written  consent  executed  as of March 24,  2003 in
accordance  with Delaware law, (i) re-elected all five directors of the Company,
Marjorie L. McIntyre, A. Ann Armstrong, Carol M. Long, Michael Cope and R. David
Graupner,  and,  (ii)  approved  the  anticipated  appointment  of KBA Group LLP
(formerly  King Griffin & Adamson P.C.) as the Company's  independent  certified
public accountants for the fiscal year ended September 30, 2003. The Company did
not solicit proxies or consents in connection therewith.

Item 5. Other information

In a meeting of the Board of Directors  held  December 9, 2002 an agreement  was
approved to amend and renew the consulting agreement with Marjorie McIntyre,  in
effect since 1993.  The agreement  provides for fees of $75,000 per year through
December 31, 2005. Mrs. McIntyre has been the Chairman of the Board of Directors
for the Company since August 1990.

Item 6. Exhibits and Reports on Form 8-K

         a)       Exhibits
                  Material Contracts:
                  10.1     Consulting  Agreement  between TM Century,  Inc.  and
                           Marjorie McIntyre dated January 1, 2003.
                  Other:
                  99.1     Certification  by R. David Graupner,  Chief Executive
                           Officer,  pursuant to 18 USC Section 1350, as adopted
                           pursuant to Section 906 of the  Sarbanes-Oxley Act of
                           2002.
                  99.2     Certification  by Teri R.S.  James,  Chief  Financial
                           Officer,  pursuant to 18 USC Section 1350, as adopted
                           pursuant to Section 906 of the  Sarbanes-Oxley Act of
                           2002.  b)  Reports on Form 8-K On May 12,  2003,  the
                           Company  filed  a  Current  Report  on  Form  8-K  in
                           connection with the resignation of King,  Griffin and
                           Adamson  P.C.  as the  Company's  independent  public
                           accountants to allow its successor entity,  KBA Group
                           LLP,  to be  engaged  as  the  Company's  independent
                           public accountants.










                                       13
<PAGE>

                                   SIGNATURES

In  accordance  with  Section 13 or 15(d) of the Exchange  Act,  the  registrant
caused this report to be signed on its behalf by the undersigned  thereunto duly
authorized.

                                                  Dated: May 13, 2003

                                                  TM CENTURY, INC.


                                                  BY: /s/Teri R.S. James
                                                     -------------------
                                                  Teri R.S. James
                                                  Chief Financial Officer
                                                  (Principal Accounting Officer)


                                                  BY: /s/R. David Graupner
                                                     ---------------------
                                                  R. David Graupner
                                                  Chief Executive Officer
                                                  (Principal Executive Officer)



                                 CERTIFICATIONS

I, R. David Graupner, Chief Executive Officer, certify that:

1. I have reviewed this  quarterly  report on Form 10-QSB of TM Century,  Inc. a
Delaware Corporation;
2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;
3. Based on my  knowledge,  the  consolidated  financial  statements,  and other
financial  information included in this quarterly report,  fairly present in all
material respects the financial condition,  results of operations and cash flows
of the  registrant  as of, and for,  the  periods  presented  in this  quarterly
report;
4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing  and  maintaining  disclosure  controls and  procedures (as defined
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;
b) evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):
a) all significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and
b) any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and


                                       14
<PAGE>

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

Date:  May 13, 2003

/s/R. David Graupner, Chief Executive Officer
---------------------------------------------
Principal Executive Officer



I, Teri R.S. James, Chief Financial Officer, certify that:

1. I have reviewed this  quarterly  report on Form 10-QSB of TM Century,  Inc. a
Delaware Corporation;
2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;
3. Based on my  knowledge,  the  consolidated  financial  statements,  and other
financial  information included in this quarterly report,  fairly present in all
material respects the financial condition,  results of operations and cash flows
of the  registrant  as of, and for,  the  periods  presented  in this  quarterly
report;
4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing  and  maintaining  disclosure  controls and  procedures (as defined
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;
b) evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):
a) all significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and
b) any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and
6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  May 13, 2003

/s/Teri R.S. James, Chief Financial Officer
-------------------------------------------
Principal Financial Officer



                                       15