<Page>


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

                                    FORM 10-Q

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

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2002


                         COMMISSION FILE NUMBER: 1-16349


                        INVESTORS CAPITAL HOLDINGS, LTD.
             (Exact name of registrant as specified in its charter)


           MASSACHUSETTS                                 04-3284631
  (State or other jurisdiction of                      (I.R.S. Employer
   incorporation or organization)                     Identification No.)


                                  230 BROADWAY
                         LYNNFIELD, MASSACHUSETTS 01940
                    (Address of principal executive offices)

                                 (781) 593-8565
              (Registrant's telephone number, including area code)

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 [ ]

Number of shares outstanding of our only class of common stock as of February
14, 2003:

                                    5,717,380


<Page>


PART I  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS


<Table>
<Caption>


                                                                   DECEMBER 31,     MARCH 31,
                                                                      2002           2002
                                                                   ------------     ----------
                                                                   (UNAUDITED)

ASSETS

<S>                                                                <C>            <C>
     Cash and cash equivalents ................................    $ 7,877,053    $ 6,337,445
     Investments in available-for-sale securities .............         42,810         56,291
     Marketable securities, at market value ...................          8,542          2,364
     Securities not readily marketable, at estimated fair value         47,500         10,000
     Investment in unconsolidated affiliate ...................         66,061         89,697
     Deposit with clearing organization, restricted ...........        175,000        175,000
     Accounts receivable ......................................      2,231,737      2,101,200
     Loans receivable from registered representatives .........        110,839        199,996
     Receivables from officers ................................        112,592        136,078
     Prepaid expenses .........................................         98,534        193,682
     Deferred income tax asset, net ...........................         57,101         31,930
     Premises and equipment, net ..............................        512,509        531,296
     Other assets .............................................        319,897        249,553
                                                                   -----------     ----------

          TOTAL ASSETS ........................................    $11,660,175    $10,114,532
                                                                   ===========    ===========
</Table>





           See Notes to Condensed Consolidated Financial Statements.


                                       1


<Page>



                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED BALANCE SHEETS -- (CONTINUED)


<Table>
<Caption>

                                                                          DECEMBER 31,      MARCH 31,
                                                                             2002             2002
                                                                         -------------     ---------
                                                                           (UNAUDITED)

<S>                                                                      <C>               <C>
LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:

     Notes payable .................................................     $    756,000      $     79,016
     Commissions payable ...........................................        1,380,558         1,136,676
     Accounts payable ..............................................          514,173           379,320
     Accrued expenses ..............................................          366,545           303,816
     Securities sold, not yet purchased, at market value ...........           36,067             9,530
     Income taxes payable ..........................................          167,629           149,108
                                                                         ------------      ------------

          TOTAL LIABILITIES ........................................        3,220,972         2,057,466
                                                                         ------------      ------------
STOCKHOLDERS' EQUITY:

     Common stock, $.01 par value, authorized 10,000,000 shares;
        issued 5,721,265 shares at December 31, 2002 and March 31,
        2002;  outstanding 5,717,380 shares at December 31, 2002 and
        March 31, 2002 .............................................           57,213            57,213
     Additional paid-in capital ....................................        8,160,858         8,135,347
     Retained earnings (deficit) ...................................          252,639           (61,634)
     Treasury stock, at cost (3,885 shares) ........................          (30,135)          (30,135)
     Accumulated other comprehensive loss ..........................           (1,372)          (43,725)
                                                                         ------------      ------------

            TOTAL STOCKHOLDERS' EQUITY .............................        8,439,203         8,057,066
                                                                         ------------      ------------

           TOTAL LIABILITIES AND STOCKHOLDERS'
                EQUITY .............................................     $ 11,660,175      $ 10,114,532
                                                                         ============      ============
</Table>


            See Notes to Condensed Consolidated Financial Statements.


                                       2


<Page>

                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (UNAUDITED)

<Table>
<Caption>

                                                                            THREE MONTHS ENDED
                                                                                DECEMBER 31,
                                                                       ----------------------------
                                                                           2002             2001
                                                                       -----------      -----------

  <S>                                                                  <C>              <C>
  COMMISSION AND ADVISORY FEE INCOME .............................     $ 8,124,745      $ 7,361,650
  COST OF COMMISSION AND ADVISORY FEES ...........................       6,631,808        5,822,097
                                                                       -----------      -----------

  GROSS PROFIT ...................................................       1,492,937        1,539,553
                                                                       -----------      -----------

  SELLING AND ADMINISTRATIVE EXPENSES (INCOME):

     Administrative ..............................................       1,437,930        1,144,931
     Selling .....................................................         (70,880)        (129,558)
                                                                       -----------      -----------

         TOTAL SELLING AND ADMINISTRATIVE EXPENSES ...............       1,367,050        1,015,373
                                                                       -----------      -----------

  OPERATING INCOME ...............................................         125,887          524,180
                                                                       -----------      -----------

  OTHER INCOME (EXPENSE):

     Interest income .............................................          88,456           62,610
     Interest expense ............................................          (6,519)          (1,719)
     Other income ................................................           8,592           13,496
                                                                       -----------      -----------

          NET OTHER INCOME .......................................          90,529           74,387
                                                                       -----------      -----------

  INCOME BEFORE TAXES ............................................         216,416          598,567
  PROVISION FOR INCOME TAXES .....................................          95,909          253,892
                                                                       -----------      -----------

  NET INCOME .....................................................     $   120,507      $   344,675
                                                                       ===========      ===========

BASIC AND DILUTED EARNINGS PER COMMON SHARE:

     Net income ..................................................     $       .02      $       .06

SHARE DATA:

WEIGHTED AVERAGE SHARES USED IN BASIC EARNINGS

     PER COMMON SHARE CALCULATIONS ...............................       5,717,380        5,704,426

PLUS:  INCREMENTAL SHARES FROM ASSUMED CONVERSION OF STOCK OPTIONS          82,036           96,996
                                                                       -----------      -----------

WEIGHTED AVERAGE SHARES USED IN DILUTED EARNINGS

     PER COMMON SHARE CALCULATIONS ...............................       5,799,416        5,801,422
                                                                       ===========      ===========
</Table>

            See Notes to Condensed Consolidated Financial Statements.

                                       3


<Page>

                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (UNAUDITED)

<Table>
<Caption>

                                                                              NINE MONTHS ENDED
                                                                                 DECEMBER 31,
                                                                        -----------------------------
                                                                           2002              2001
                                                                        -----------       -----------

  <S>                                                                   <C>               <C>
  COMMISSION AND ADVISORY FEE INCOME .............................      $25,622,137       $20,870,056
  COST OF COMMISSION AND ADVISORY FEES ...........................       21,006,125        16,814,353
                                                                        -----------       -----------

  GROSS PROFIT ...................................................        4,616,012         4,055,703
                                                                        -----------       -----------

  SELLING AND ADMINISTRATIVE EXPENSES:

     Administrative ..............................................        3,882,996         3,876,360
     Selling .....................................................          290,801           393,568
                                                                        -----------       -----------

         TOTAL SELLING AND ADMINISTRATIVE EXPENSES ...............        4,173,797         4,269,928
                                                                        -----------       -----------

  OPERATING INCOME (LOSS) ........................................          442,215          (214,225)
                                                                        -----------       -----------

  OTHER INCOME (EXPENSE):

     Interest income .............................................          235,055           199,330
     Interest expense ............................................          (10,913)          (25,648)
     Other (expense) income ......................................          (60,784)           33,758
                                                                        -----------       -----------

          NET OTHER INCOME .......................................          163,358           207,440
                                                                        -----------       -----------

  INCOME (LOSS) BEFORE TAXES .....................................          605,573            (6,785)
  PROVISION FOR INCOME TAXES .....................................          291,300            46,392
                                                                        -----------       -----------

  NET INCOME (LOSS) ..............................................      $   314,273       $   (53,177)
                                                                        ===========       ===========

BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE:

     Net income (loss) ...........................................      $       .05       $      (.01)

SHARE DATA:

WEIGHTED AVERAGE SHARES USED IN BASIC EARNINGS

     PER COMMON SHARE CALCULATIONS ...............................        5,717,380         5,705,712

PLUS:  INCREMENTAL SHARES FROM ASSUMED CONVERSION OF STOCK OPTIONS           74,623              --
                                                                        -----------       -----------

WEIGHTED AVERAGE SHARES USED IN DILUTED EARNINGS

     PER COMMON SHARE CALCULATIONS ...............................        5,792,003         5,705,712
                                                                        ===========       ===========
</Table>


            See Notes to Condensed Consolidated Financial Statements.

                                       4

<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                  THREE MONTHS ENDED DECEMBER 31, 2002 AND 2001

                                   (UNAUDITED)


<Table>
<Caption>


                                                                                                        Accumulated
                                                 Common      Stock    Additional  Retained                 Other
                                              -----------  ---------   Paid-In    Earnings    Treasury  Comprehensive
                                                 Shares     Amount     Capital    (Deficit)    Stock         Loss        Total
                                              -----------  --------- ----------  ---------   --------   -------------  ---------
<S>                                        <C>           <C>        <C>          <C>         <C>        <C>            <C>
BALANCE AT OCTOBER 1, 2001.............     5,708,311     $42,258   $8,141,198   $(463,623)  $(30,135)    $(46,799)    $7,642,899

Comprehensive income:

Net income.............................                                           344,675

Net unrealized gain on securities......                                                                      5,345

  Comprehensive income.................                                                                                   350,020
                                            ---------     -------   ----------   ---------   --------     --------     ----------

BALANCE AT DECEMBER 31, 2001...........     5,708,311     $42,258   $8,141,198   $(118,948)  $(30,135)    $(41,454)    $7,992,919
                                            =========     =======   ==========   ==========  =========    ========     ==========

BALANCE AT OCTOBER 1, 2002.............     5,721,265     $57,213   $8,142,447   $ 132,132   $(30,135)    $ (3,311)    $8,298,346

Stock options granted..................                                 18,411                                            18,411

Comprehensive income:

Net income..........................                                               120,507

Net unrealized gain on securities......                                                                    1,939

  Comprehensive income.................                                                                                  122,446
                                            ---------     -------   ----------   ---------   --------     --------     ----------

BALANCE AT DECEMBER 31, 2002...........     5,721,265     $57,213   $8,160,858   $ 252,639   $(30,135)    $(1,372)     $8,439,203
                                            =========     =======   ==========   ==========  =========    ========     ==========
</Table>

            See Notes to Condensed Consolidated Financial Statements.


                                       5


<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                  NINE MONTHS ENDED DECEMBER 31, 2002 AND 2001

                                   (UNAUDITED)


<Table>
<Caption>


                                                                                                         Accumulated
                                                Common     Stock    Additional     Retained                 Other
                                               --------   -------    Paid-In       Earnings   Treasury   Comprehensive
                                               Shares     Amount     Capital       (Deficit)    Stock        Loss          Total
                                               --------   -------   ---------     ----------   --------   ------------  -----------

<S>                                           <C>          <C>       <C>           <C>          <C>        <C>           <C>
BALANCE AT APRIL 1, 2001 .................    5,708,311    $42,258   $8,151,760    $ (65,771)     $--      $ (5,674)    $8,122,573

Net costs related to initial public
  offering ...............................                               (10,562)                                          (10,562)

Purchases of treasury stock ..............                                                      (30,135)                   (30,135)

Comprehensive loss:

Net loss .................................                                           (53,177)

Net unrealized loss on securities ........                                                                  (35,780)

  Comprehensive loss .....................                                                                                 (88,957)
                                              ---------    -------    ----------   ----------   -------   ----------     ---------


BALANCE AT DECEMBER 31, 2001 .............     5,708,311   $42,258    $8,141,198   $(118,948)   $(30,135)  $(41,454)    $7,992,919
                                              ==========   ========   ==========   ==========   ========   ========     ==========

BALANCE AT APRIL 1, 2002 .................     5,721,265   $57,213    $8,135,347   $ (61,634)   $(30,135)  $(43,725)    $8,057,066


Stock options granted ....................                                25,511                                            25,511

Comprehensive income:

Net income ...............................                                           314,273

Net unrealized gain on securities ........                                                                   42,353

  Comprehensive income ...................                                                                                 356,626
                                              ---------    -------    ----------   ----------   -------   ----------     ---------

BALANCE AT DECEMBER 31, 2002 .............    5,721,265    $ 57,213   $8,160,858   $  252,639   $(30,135)  $(1,372)     $8,439,203
                                              ==========   ========   ==========   ==========   ========   ========     ==========
</Table>


            See Notes to Condensed Consolidated Financial Statements.


                                       6


<Page>



                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (UNAUDITED)


<Table>
<Caption>

                                                                                  NINE MONTHS ENDED
                                                                                    DECEMBER 31,
                                                                             ---------------------------
                                                                                 2002           2001
                                                                             ------------   ------------

<S>                                                                          <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income (loss) ..................................................     $ 314,273      $ (53,177)
     Adjustments to reconcile net income (loss) to net cash
        provided by (used in) operating activities:
           Depreciation and amortization ................................        85,353         81,316
           Change in deferred taxes .....................................       (25,171)       (22,148)
           Realized loss on securities ..................................        55,834           --
           Unrealized loss (gain) on investments ........................        16,136        (30,371)
           Stock option compensation ....................................        25,511           --
           Change in marketable securities ..............................        (6,178)        15,769
           Realized gain on investment in unconsolidated affiliates .....          --             (656)
           Increase in accounts receivable ..............................      (130,537)      (622,809)
           Decrease in prepaid expenses and other assets ................        18,290        104,134
           Decrease in prepaid income taxes .............................          --           88,123
           Increase in taxes payable ....................................        18,521         45,834
           Increase (decrease)  in accounts payable and other liabilities       161,390       (216,239)
           Increase in accrued expenses .................................        62,729          4,686
           Increase in commissions payable ..............................       243,882        124,097
                                                                              ---------      ---------

               NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ......       840,033       (481,441)
                                                                              ---------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES:

       Purchases of property and equipment ..............................       (66,566)      (209,460)
       Decrease (increase) in loans receivable from registered
       representatives ..................................................        89,157       (139,574)
                                                                              ---------      ---------

              NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES .......        22,591       (349,034)
                                                                              ---------      ---------
</Table>


            See Notes to Condensed Consolidated Financial Statements.


                                       7

<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS -- (CONTINUED)

                                   (UNAUDITED)

<Table>
<Caption>


                                                                               NINE MONTHS ENDED
                                                                                 DECEMBER 31,
                                                                        ----------------------------
                                                                            2002            2001
                                                                        ------------     -----------

<S>                                                                     <C>              <C>
CASH FLOWS FROM FINANCING ACTIVITIES:

       Costs related to initial public offering ...................            --            (10,562)
       Purchases of treasury stock ................................            --            (30,135)
       Note payable ...............................................         756,000          685,000
       Payments on note payable ...................................         (79,016)        (454,262)
                                                                        -----------      -----------

              NET CASH PROVIDED BY FINANCING ACTIVITIES ...........         676,984          190,041
                                                                        -----------      -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ..............       1,539,608         (640,434)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ....................       6,337,445        7,180,340
                                                                        -----------      -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD ..........................     $ 7,877,053      $ 6,539,906
                                                                        ===========      ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

     Interest paid ................................................     $    10,913      $    25,648
                                                                        ===========      ===========
     Income taxes paid ............................................     $   297,950      $      --
                                                                        ===========      ===========
     Transfer of security to securities not readily marketable from
           receivable from officers ...............................     $    30,000      $      --
                                                                        ===========      ===========
</Table>


            See Notes to Condensed Consolidated Financial Statements.


                                       8


<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)


1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements of
Investors Capital Holdings, Ltd. (the Company) have been prepared in accordance
with accounting principles generally accepted in the United States of America
(GAAP) for interim financial information and with the instructions to Form 10-Q.
Accordingly, they do not include all of the information and footnotes required
by GAAP for complete financial statements. In the opinion of management, these
unaudited condensed consolidated financial statements contain all adjustments,
consisting of only normal and recurring adjustments, necessary for a fair
presentation of the financial position and results of operations. Operating
results for the three-month and nine-month periods ended December 31, 2002 are
not necessarily indicative of the results that may be expected for the year
ended March 31, 2003. The balance sheet at March 31, 2002 has been derived from
the audited financial statements at that date, but does not include all of the
information and footnotes required by GAAP for complete financial statements.
These unaudited condensed consolidated financial statements should be read in
conjunction with the Company's annual audited financial statements as of March
31, 2002 included in the Company's Form 10-KSB for the year ended March 31, 2002
filed with the Securities and Exchange Commission.

USE OF ESTIMATES

     The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.

RECLASSIFICATIONS

     Certain amounts in the prior periods have been reclassified to be
consistent with the current year's statement presentation.


                                       9


<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

2.  SEGMENT INFORMATION

         The Company's reportable segments include investment services offered
    through Investors Capital Corporation (ICC) and asset management services
    offered through Eastern Point Advisors, Inc. (EPA). This investment services
    segment includes securities, insurance, financial planning and related
    services. ICC earns commissions as a broker for its customers in the
    purchase and sale of securities on major exchanges. Asset management
    services generate recurring annual revenue from fees received on the
    management of customer accounts. EPA provides asset management and portfolio
    design services to a mutual fund and a variety of investors.

         Segment data presented includes the allocation of all corporate
    overhead to each segment. Inter-segment revenue and expense, and receivables
    and payables, are eliminated between segments. Information concerning
    operations in the Company's segments of business is as follows:


<Table>
<Caption>


                                                  THREE MONTHS ENDED
                                                     DECEMBER 31,
                                           -----------------------------
                                               2002             2001
                                           ------------     ------------

<S>                                        <C>              <C>
NON-INTEREST REVENUES:

    ICC ..............................     $ 7,564,027      $ 6,702,293
    EPA ..............................         560,718          659,357
                                           -----------      -----------

         TOTAL .......................     $ 8,124,745      $ 7,361,650
                                           ===========      ===========

REVENUES FROM TRANSACTIONS WITH
OTHER OPERATING SEGMENTS:

    ICC ..............................     $   146,609      $   130,037
    EPA ..............................          62,833           55,730
    Intersegment elimination .........        (209,442)        (185,767)
                                           -----------      -----------

         TOTAL .......................     $         -      $         -
                                           ===========      ===========

INTEREST INCOME:

    ICC ..............................     $    45,086      $    32,152
    ICH ..............................          43,370           30,458
                                           -----------      -----------

         TOTAL .......................     $    88,456      $    62,610
                                           ===========      ===========

DEPRECIATION AND AMORTIZATION EXPENSE:

    ICC ..............................     $    27,748      $    27,686
    EPA ..............................           1,464            1,926
                                           -----------      -----------

         TOTAL .......................     $    29,212      $    29,612
                                           ===========      ===========
</Table>



                                       10


<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

2.  SEGMENT INFORMATION (CONTINUED)


<Table>
<Caption>


                                          THREE MONTHS ENDED
                                             DECEMBER 31,
                                   -----------------------------
                                       2002            2001
                                   ------------     ------------
<S>                               <C>               <C>
INCOME TAX EXPENSE (BENEFIT):

    ICC .....................     $    126,703      $    238,580
    EPA .....................          (43,941)          (12,188)
    ICH .....................           13,147            27,500
                                  ------------      ------------

         TOTAL ..............     $     95,909      $    253,892
                                  ============      ============


INCOME (LOSS):

    ICC .....................     $    322,665      $    476,214
    EPA .....................           (2,344)           37,663
    ICH .....................         (199,814)         (169,202)
                                  ------------      ------------

         TOTAL ..............     $    120,507      $    344,675
                                  ============      ============

PERIOD END TOTAL ASSETS:

    ICC .....................     $  5,419,935      $  4,133,350
    EPA .....................          747,591           672,967
    ICH .....................        5,492,649         5,852,446
                                  ------------      ------------

         TOTAL ..............     $ 11,660,175      $ 10,658,763
                                  ============      ============
</Table>


                                       11


<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)


2.  SEGMENT INFORMATION (CONTINUED)


<Table>
<Caption>


                                                   NINE MONTHS ENDED
                                                     DECEMBER 31,
                                           ------------------------------
                                                2002            2001
                                           ------------     -------------
<S>                                        <C>              <C>
NON-INTEREST REVENUES:

    ICC ..............................     $ 23,809,256      $ 18,826,596
    EPA ..............................        1,812,881         2,043,460
                                           ------------      ------------

         TOTAL .......................     $ 25,622,137      $ 20,870,056
                                           ============      ============

REVENUES FROM TRANSACTIONS WITH
OTHER OPERATING SEGMENTS:

    ICC ..............................     $    425,991      $    406,677
    EPA ..............................          182,568           174,290
    Intersegment elimination .........         (608,559)         (580,967)
                                           ------------      ------------

         TOTAL ....................        $     --          $     --
                                           ============      ============


INTEREST INCOME:

    ICC ..............................     $    121,983      $     69,261
    ICH ..............................          113,072           130,069
                                           ------------      ------------

         TOTAL .......................     $    235,055      $    199,330
                                           ============      ============

DEPRECIATION AND AMORTIZATION EXPENSE:

    ICC ..............................     $     80,798      $     75,190
    EPA ..............................            4,555             6,126
                                           ------------      ------------

         TOTAL .......................     $     85,353      $     81,316
                                           ============      ============
</Table>


                                       12

<Page>


                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)


2.  SEGMENT INFORMATION (CONTINUED)


<Table>
<Caption>


                                          NINE MONTHS ENDED
                                           DECEMBER 31,
                                  -------------------------------
                                      2002              2001
                                  ------------      -------------
<S>                               <C>               <C>
INCOME TAX EXPENSE (BENEFIT):

    ICC .....................     $    318,836      $     32,251
    EPA .....................          (66,966)          (50,419)
    ICH .....................           39,430            64,560
                                  ------------      ------------

         TOTAL ..............     $    291,300      $     46,392
                                  ============      ============

INCOME (LOSS):

    ICC .....................     $    818,779      $    426,918
    EPA .....................           81,929            98,721
    ICH .....................         (586,435)         (578,816)
                                  ------------      ------------

         TOTAL ..............     $    314,273      $    (53,177)
                                  ============      ============

PERIOD END TOTAL ASSETS:

    ICC .....................     $  5,419,935      $  4,133,350
    EPA .....................          747,591           672,967
    ICH .....................        5,492,649         5,852,446
                                  ------------      ------------

         TOTAL ..............     $ 11,660,175      $ 10,658,763
                                  ============      ============
</Table>


                                       13


<Page>

                INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

3.  LEGAL PROCEEDINGS

     On January 3, 2001, an action was brought against our broker-dealer
subsidiary by 21st Century Group, Inc. in the Circuit Court of Sarasota, Florida
seeking common law indemnification in the amount of $160,208. This
indemnification action stems from an April 7, 1999 judgment against 21st Century
for that amount rendered by the same court in the case of Crabrill v. 21st
Century Group, Inc. vs. Investors Capital Corp. Our broker-dealer subsidiary was
named as a third-party defendant in this case which we successfully defended and
the case against us was dismissed. As such, we believe this January 3, 2001
action is wholly without merit on grounds of estoppel and res judicata and are
awaiting a determination on our anticipated motion for summary judgment.

     Our broker-dealer subsidiary, Investors Capital Corporation, is engaged in
a material NASD Arbitration in which one of our registered representatives is
alleged to have made misrepresentations in the sale of unsecured promissory
notes in a Florida company that has since filed for bankruptcy protection. This
arbitration, Paul and Irmgard Jung and Wilhelm Trefz vs. Investors Capital
Corporation and Kenneth J. Saunders originally was filed with the NASD on April
17, 2002 in Boca Raton, Florida. Damages are alleged in the amount of
approximately $221,455. Recent developments have enabled Investors Capital
Corporation to reasonably estimate its total possible financial exposure in the
case to be no greater than $40,000.

     The Company is involved in an action filed with the Commonwealth of
Massachusetts Commission against Discrimination on August 3, 2000. This action
alleges that the petitioner was discriminated against by the Company on the
basis of sex and seeks damages in the amount of $275,000. Legal Counsel is
unable at this time to assess the likelihood of an unfavorable outcome and an
estimate of potential damages.

     Our broker-dealer subsidiary, Investors Capital Corporation, is engaged in
a material litigation in which a former registered representative is alleged to
have made misrepresentations in the sale of unsecured promissory notes in a now
defunct Utah company that is currently under regulatory investigation. The
product at issue was not approved by nor sold through Investors Capital
Corporation. This arbitration, Ruth Arvizo, et al vs. Investors Capital
Corporation, et al, was originally filed in California Superior Court on August
26, 2002 in Los Angeles County. Damages are alleged in the amount of
approximately $200,000. At this time, legal counsel is unable to assess neither
the likelihood of an unfavorable outcome nor an estimate of potential damages.

     Our broker-dealer subsidiary, Investors Capital Corporation, is engaged in
a material arbitration in which a former registered representative is alleged to
have made misrepresentations in the sale of an unsecured promissory note. The
product at issue was not approved by nor sold through Investors Capital
Corporation. This arbitration, Erma Foster vs. Investors Capital Corporation,
was received in December 2002. Damages are alleged in the amount of
approximately $113,000. At this time, legal counsel is unable to assess neither
the likelihood of an unfavorable outcome nor an estimate of potential damages.


                                       14


<Page>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

OVERVIEW

     We are a financial services holding company that, through our subsidiaries,
provides investment advisory, insurance, financial planning and related
services. We operate in a highly regulated and competitive industry that is
influenced by numerous external factors such as economic conditions, marketplace
liquidity and volatility, monetary policy, global and national political events,
regulatory developments, competition and investor preferences.

     Our revenues and net earnings may be either enhanced or diminished from
period to period by any one of or by a multiple of these external factors.

     In addition, the passage of the Graham-Leach-Bliley Act in November of 1999
repealed depression-era laws that separated commercial, investment banking and
insurance activities. Such repeal may result in the intensification of the
environment in which we compete by increasing the number of companies doing
business in the financial services arena.

RESULTS OF OPERATIONS

THREE MONTHS ENDED DECEMBER 31, 2002 COMPARED WITH THREE MONTHS ENDED DECEMBER
31, 2001

     The Company had consolidated operating income of $125,887 for the three
months ended December 31, 2002 as compared to consolidated operating income of
$524,180 for the three months ended December 31, 2001. This decrease in
consolidated operating income of $398,293, or 76.0%, after the elimination of
all inter-company revenues and expenses, was attributable to a $278,054 decrease
in operating income provided by the Company's subsidiary, Investors Capital
Corporation (ICC), a $71,645 decrease in operating income provided by the
Company's subsidiary Eastern Point Advisors (EPA) and a $48,594 decrease in
operating income provided by Investors Capital Holdings, Ltd (ICH), on a
stand-alone basis. All of these decreases were mainly attributable to increases
in selling and administrative expenses.

     Consolidated commissions and advisory fee income of $8,124,745 for the
three months ended December 31, 2002 increased by $763,095, or 10.4%, as
compared to consolidated commissions and advisory fee income of $7,361,650 for
the three months ended December 31, 2001. This increase in gross revenues, after
the elimination of all inter-company revenues and expenses, was attributable to
an $861,734 increase in revenues provided by ICC and a $98,639 decrease in
advisory fee income provided by EPA. The $861,734 increase in revenues provided
by ICC was attributable to a $606,941 increase in revenues from variable
annuities and mutual funds, as well as a $303,278 increase in revenues generated
by our investment banking line of business. Offsetting these increases was a net
decrease of $48,485 generated from various other fees. The $98,639 decrease in
advisory fee income generated by EPA was the result of a reduction in the value
of assets under management.

     Consolidated commissions and advisory fee expense of $6,631,808 for the
three months ended December 31, 2002 increased by $809,711, or 13.9%, as
compared to consolidated commissions and advisory fee expense of $5,822,097 for
the three months ended December 31, 2001. This increase, after the elimination
of all inter-company revenues and expenses, was attributable to an $899,856
increase in commission expense incurred by ICC and a $90,145 decrease in
advisory fee expense incurred by EPA. This increase in commission expense and
decrease in advisory fee expense was a direct result of the associated increase
in commission revenue and decrease in advisory fee income as mentioned above.


                                       15


<Page>


     Consolidated administrative expenses of $1,437,930 for the three months
ended December 31, 2002 increased by $292,999, or 25.6%, as compared to
consolidated administrative expenses of $1,144,931 for the three months ended
December 31, 2001. This increase, after the elimination of all inter-company
revenues and expenses, was attributable to a $179,579 increase in administrative
expenses incurred by ICC, a $63,076 increase in administrative expenses incurred
by EPA and a $50,344 increase in administrative expenses incurred by ICH. The
increase of $179,579 in administrative expenses incurred by ICC was driven by an
increase of $100,988 in salaries and wages, a $22,985 increase in office expense
and a $21,569 increase in legal and lawsuit related expenses. The remaining
$34,037 increase was generated from various other expenses. The $63,076 increase
incurred by EPA was mainly attributable to a $55,614 increase in salaries and
wages. The remaining $7,462 increase was generated from various other expenses.
The $50,344 increase from ICH was driven by an increase of $28,656 in insurance
expense, as well as an $18,411 increase in stock option expense. The increase
insurance expense resulted from a transfer of policies from ICC to ICH. The
remaining $3,277 increase was attributable to various other expenses.

     Consolidated selling expenses (income) of $(70,880) for the three months
ended December 31, 2002 decreased by $58,678, or 45.3%, as compared to
consolidated selling expenses (income) of $(129,558) for the three months
ended December 31, 2001. This decrease, after the elimination of all
inter-company revenues and expenses, was attributable to a $60,353 increase
in selling expenses incurred by ICC, a $1,750 decrease in selling expenses
incurred by ICH and a $75 increase in selling expenses incurred by EPA. The
$60,353 increase in selling expenses incurred by ICC was mainly attributable
to a $46,000 decrease in income derived from seminars, conferences and
conventions, as income from our marketing efforts is offset against total
selling expenses. In addition, compliance related expenses increased by
$25,384. Offsetting these increases was an $11,031 decrease in various other
selling expenses.

     The Company had consolidated income taxes of $95,909 for the three months
ended December 31, 2002 as compared to consolidated income taxes of $253,892 for
the three months ended December 31, 2001. This decrease of $157,983, or 62.2%,
in income taxes was attributable to the Company's decreased profitability from
the same period last year.

     The Company had consolidated net income of $120,507 for the three months
ended December 31, 2002 as compared to consolidated net income of $344,675 for
the three months ended December 31, 2001. This $224,168, or 65.0%, decrease in
net earnings, after the elimination of all inter-company revenues and expenses,
was attributable to a $153,549 decrease in net income provided by ICC, a $40,007
decrease in net income provided by EPA and a $30,612 decrease in net income
provided by ICH. All of these decreases were mainly attributable to increases in
selling and administrative expenses.

NINE MONTHS ENDED DECEMBER 31, 2002 COMPARED WITH NINE MONTHS ENDED DECEMBER 31,
2001

     The Company had consolidated operating income of $442,215 for the nine
months ended December 31, 2002 as compared to a consolidated operating loss of
$214,225 for the nine months ended December 31, 2001. This increase in
consolidated operating income of $656,440, or 306.4%, after the elimination of
all inter-company revenues and expenses, was attributable to a $665,023 increase
in operating income provided by the Company's subsidiary, Investors Capital
Corporation (ICC), a $24,770 increase in operating income provided by the
Investors Capital Holdings, Ltd (ICH), on a stand-alone basis, and a $33,353
decrease in operating income provided by the Company's subsidiary Eastern Point
Advisors (EPA). The $665,023 increase in operating income provided by ICC was
attributable to an increase of $560,876 in the gross profit in this segment of
the business largely due to an increase in mutual fund and variable annuity
sales. In addition, selling and administrative expenses decreased by $104,147.
The $24,770 increase in operating income provided by ICH was the result of a
decline in selling and administrative expenses resulting from an overall effort
to reduce expenses. The $33,353 decrease in operating income generated by EPA
was mainly the result of an increase in salaries and wages.


                                       16


<Page>


     Consolidated commissions and advisory fee income of $25,622,137 for the
nine months ended December 31, 2002 increased by $4,752,081 or 22.8%, as
compared to consolidated commissions and advisory fee income of $20,870,056 for
the nine months ended December 31, 2001. This increase in gross revenues, after
the elimination of all inter-company revenues and expenses, was attributable to
a $4,982,660 increase in revenues provided by ICC and a $230,579 decrease in
advisory fee income provided by EPA. The $4,982,660 increase in revenues
provided by ICC was attributable to an increase of $3,770,163 in revenues
generated from the sales of variable annuities and mutual funds, a $377,703
increase in underwriting fees, a $359,063 increase in listed commissions, a
$267,684 increase in over the counter commissions and a $188,697 increase in
fees generated from errors and omissions insurance. The remaining increase of
$19,350 resulted from miscellaneous transactions.

     Consolidated commissions and advisory fee expense of $21,006,125 for the
nine months ended December 31, 2002 increased by $4,191,772, or 24.9%, as
compared to consolidated commissions and advisory fee expense of $16,814,353 for
the nine months ended December 31, 2001. This increase, after the elimination of
all inter-company revenues and expenses, was attributable to a $4,421,784
increase in commission expense incurred by ICC and a $230,012 decrease in
advisory fee expense incurred by EPA. The increase of $4,421,784 in commission
expense incurred by ICC and the decrease of $230,012 in advisory fee expense
incurred by EPA was a direct result of the associated increase in commission
revenue and decrease in advisory fee income as mentioned above.

     Consolidated administrative expenses of $3,882,996 for the nine months
ended December 31, 2002 increased by $6,636, or 0.2%, as compared to
consolidated administrative expenses of $3,876,360 for the nine months ended
December 31, 2001. This increase, after the elimination of all inter-company
revenues and expenses, was attributable to a $35,015 increase in administrative
expenses incurred by EPA, a $25,403 increase in administrative expenses incurred
by ICH and a $53,782 decrease in administrative expenses incurred by ICC.

     Consolidated selling expenses of $290,801 for the nine months ended
December 30, 2002 decreased by $102,767, or 26.1%, as compared to consolidated
selling expenses of $393,568 for the nine months ended December 31, 2001. This
decrease, after the elimination of all inter-company revenues and expenses, was
attributable to a $50,365 decrease in selling expenses incurred by ICC, a
$50,173 decrease in selling expenses incurred by ICH and a $2,229 decrease in
selling expenses incurred by EPA. These decreases were driven by a general
reduction in various expenses as part of the cost cutting measures put in place
during the past fiscal year.

     The Company had consolidated income taxes of $291,300 for the nine months
ended December 31, 2002 as compared to consolidated income taxes of $46,392 for
the nine months ended December 30, 2001. This increase of $244,908, or 527.9%,
in income taxes was attributable to the Company's increased profitability from
the same period last year.

     The Company had consolidated net income of $314,273 for the nine months
ended December 31, 2002 as compared to a consolidated net loss of $53,177 for
the nine months ended December 31, 2001. This $367,450, or 691.0%, increase in
net earnings, after the elimination of all inter-company revenues and expenses,
was attributable to a $391,861 increase in net income provided by ICC, a $16,792
decrease in net income provided by EPA and a $7,619 decrease in net income
provided by ICH. The $391,861 increase in net income provided by ICC was
attributable to an increase in gross profit in this segment of the business
largely due to an increase in variable annuity and mutual fund sales and an
effort to reduce selling and administrative expenses.


                                       17


<Page>


LIQUIDITY AND CAPITAL RESOURCES

     We believe that return on equity is primarily based on the use of capital
in an efficient manner. Historically, we have financed our operations primarily
through an initial public offering, private equity and internally generated cash
flow.

     As of December 31, 2002, cash and cash equivalents totaled $7,877,053 as
compared to $6,337,445 as of March 31, 2002. Working capital as of December 31,
2002 was $7,606,797 as compared to $7,276,218 as of March 31, 2002.

     As of December 31, 2002, our net capital ratio for the broker-dealer was
2.18 to 1 as compared to 1.6 to 1 as of December 31, 2001. The SEC requires that
we maintain a net capital of $100,000 and a ratio of aggregate indebtedness to
net capital not to exceed 15 to 1. This SEC requirement is also referred to as
the "net capital ratio" or the "net capital rule." Indebtedness generally
includes all money owed by a company, and net capital includes cash and assets
that are easily converted into cash. SEC rules also prohibit "equity capital,"
which, under the net capital rule, includes the subordinated loans from being
withdrawn or cash dividends from being paid if our net capital ratio would
exceed 10 to 1 if we would have less than our minimum required net capital. As
of December 31, 2002, we had net capital of $1,380,255 as compared to net
capital of $1,226,421 as of December 31, 2001. This resulted in excess net
capital of $1,179,946 and $1,095,368, respectively, for the applicable periods.

     Net cash provided by operating activities was $840,033 for the nine months
ended December 31, 2002 as compared to net cash used for operating activities of
$481,441 for the nine months ended December 31, 2001. This increase in cash flow
provided by operating activities resulted from a timing difference in the
collection of premiums for errors and omissions insurance. As of December 31,
2002, the entire premium was collected for calendar year 2003, whereas only a
small portion of the calendar year 2002 premium was collected as of December 31,
2001. In addition, the Company was much more profitable during the nine months
ended December 31, 2002 as compared to the same period last year.

     Net cash provided by investing activities was $22,591 for the nine months
ended December 31, 2002 as compared to cash used of $349,034 for the nine months
ended December 31, 2001. This increase in cash flow provided by investing
activities mainly resulted from a reduction in spending on plant, property and
equipment and a reduction in loans made to registered representatives as
compared to the same period last year.

     Net cash provided by financing activities was $676,984 for the nine months
ended December 31, 2002 as compared to $190,041 for the nine months ended
December 31, 2001. This increase in cash flow provided by financing activities
was mainly the result of a timing difference in payments on the Company's errors
and omissions insurance policy. The Company's errors and omissions insurance
policy for calendar year ending December 31, 2001 was financed over the entire
year, whereas, the same policy for calendar year ending December 31, 2002 was
paid in full during the quarter ended March 31, 2002.

EFFECT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

     FASB has issued SFAS No. 140, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities." This Statement replaces
SFAS No. 125, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities" and rescinds SFAS Statement No. 127, "Deferral
of the Effective Date of Certain Provisions of FASB Statement No. 125." SFAS No.
140 provides accounting and reporting standards for transfers and servicing of
financial assets and extinguishments of liabilities. This Statement provides
consistent standards for distinguishing transfers of financial assets that are
sales from transfers that are secured borrowings. This Statement is effective
for transfers and servicing of financial assets and extinguishments of
liabilities occurring after March 31, 2001; however, the disclosure provisions
are effective for fiscal years ending after December 15, 2000. The adoption of
this Statement did not have a material impact on the Company's financial
position or results of operations.


                                       18


<Page>


     In June 2001, the FASB issued SFAS No. 141, "Business Combinations." This
Statement addresses financial accounting and reporting for business combinations
and supercedes Accounting Principles Board ("APB") Opinion No. 16, "Business
Combinations", and SFAS No. 38, "Accounting for Preacquisition Contingencies of
Purchased Enterprises." Under Opinion 16, business combinations were accounted
for using one of two methods, the pooling-of-interests method or the purchase
method. All business combinations in the scope of SFAS No. 141 are to be
accounted for using one method--the purchase method. The provisions of SFAS No.
141 apply to all business combinations initiated after June 30, 2001 and to all
business combinations accounted for using the purchase method for which the date
of acquisition is July 1, 2001, or later.

     The adoption of SFAS No. 141 had no immediate effect on the Company's
financial statements since it had no pending business combinations as of June
30, 2001 or as of the date of the issuance of these consolidated financial
statements. If the Company consummates business combinations in the future, any
such combinations that would have been accounted for by the pooling-of-interests
method under Opinion 16 will be accounted for under the purchase method and the
difference in accounting could have a substantial impact on the Company's
consolidated financial statements.

     In June 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible
Assets." This Statement addresses financial accounting and reporting for
required goodwill and other intangible assets and supercedes APB Opinion No. 17,
"Intangible Assets." The initial recognition and measurement provisions of SFAS
No. 142 apply to intangible assets which are defined as assets (not including
financial assets) that lack physical substance. The term "intangible assets" is
used in SFAS No. 142 to refer to intangible assets other than goodwill. The
accounting for a recognized intangible asset is based on its useful life. An
intangible asset with a finite useful life is amortized; an intangible asset
with an indefinite useful life is not amortized. An intangible asset that is
subject to amortization shall be reviewed for impairment in accordance with SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets."

     SFAS No. 142 provides that goodwill shall not be amortized. Goodwill is
defined as the excess of the cost of an acquired entity over the net of the
amounts assigned to assets acquired and liabilities assumed. SFAS No. 142
further provides that goodwill shall be tested for impairment at a level of
reporting referred to as a reporting unit. Impairment is the condition that
exists when the carrying amount of goodwill exceeds its implied fair value.

     SFAS No. 142 is effective as follows:

     All of the provisions of SFAS No. 142 shall be applied in fiscal years
beginning after December 15, 2001, to all goodwill and intangible assets
recognized in an entity's statement of financial position at the beginning of
that fiscal year, regardless of when those previously recognized assets were
initially recognized.

     The effect of SFAS No. 142 on the Company's consolidated financial
statements was immaterial.

     In December 2002, the FASB issued SFAS No. 148 "Accounting for
Stock-Based Compensation, Transition and Disclosure, an amendment of FASB
Statement No. 123." This Statement provides alternative methods of transition
for a voluntary change to the fair value based method of accounting for
stock-based employee compensation. These alternative methods are effective
for consolidated financial statements for fiscal years ending after December
15, 2002. The Company has no present intention to change to the fair value
based method. As a consequence, the alternative methods amendment will only
affect the Company's consolidated financial statements until and if the
Company changes to such method. SFAS No. 148 also has new disclosure
provisions that will affect the Company's consolidated financial statements.
The Company will be required to make more prominent disclosures in both
annual and interim consolidated financial statements about its method of
accounting for stock-based employee compensation and the effect of the method
used on reported results. These new disclosure requirements will be effective
beginning with the Company's consolidated financial statements for the year
ending March 31, 2003 and beginning with its interim consolidated financial
statements as of June 30, 2003.

EFFECTS OF INFLATION

     The Company's assets are primarily liquid in nature and are not
significantly affected by inflation. Management believes that the replacement
cost of property and equipment will not materially affect operating results.
However, the rate of inflation affects our expenses, including employee
compensation and benefits, communications and occupancy, which may not be
readily recoverable through charges for services provided.

PART II  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     There have been no material or significant changes to the litigation
described in Note 3.


                                       19


<Page>


SIGNATURES

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



                                       INVESTORS CAPITAL HOLDINGS, LTD.

Date:  February 14, 2003               By:  /s/ Timothy B. Murphy
                                          ------------------------------
                                          Timothy B. Murphy
                                          Chief Financial Officer



                                       20


<Page>


                                  CERTIFICATION


I, Theodore E. Charles, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Investors Capital
     Holdings, Ltd.;

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

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

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

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

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

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

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

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

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

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


Date: February 14, 2003

BY: /S/ THEODORE  E. CHARLES
   ------------------------------
   Theodore E. Charles
   Chief Executive Officer



                                       21


<Page>


                                  CERTIFICATION


I, Timothy B. Murphy, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Investors Capital
     Holdings, Ltd.;

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

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

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

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

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

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

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

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

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

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


Date: February 14, 2003

BY: /S/ TIMOTHY B. MURPHY
   ------------------------------
   Timothy B. Murphy
   Chief Financial Officer



                                       22